OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2025-08-31-accounts

ROYAL ACADEMY TRUST

Registered Charity No. 1067270

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 AUGUST 2025

Royal Academy Trust Reference and Administrative Details

Honorary President

His Majesty King Charles III

Trustees in the financial year and at the date of signing:

Batia Ofer (Chair) Sally Tennant OBE (Deputy Chair) President of The Royal Academy of Arts (Ex officio) - Rebecca Salter PRA Treasurer of The Royal Academy of Arts (Ex officio) - Prof Peter St John (Adam Caruso and Peter St John RA) Secretary and Chief Executive of The Royal Academy of Arts (Ex officio)

Secretary and Chief Executive (Interim) of The Royal Academy of Arts (Ex officio)

Clara Amfo (resigned 15 March 2025) Stefan Bollinger Aryeh Bourkoff (retired 16 April 2025) Melanie Clore Andrew Cohen (appointed 1 January 2025) Martin Ephson OBE Pesh Framjee Denise Gardner (appointed 28 February 2025) Clive Humby OBE (retired 31 October 2025) Nicole Junkermann (resigned 19 March 2025) Rosemary Leith, Lady Berners-Lee (appointed 1 December 2025) Sébastien Mazella di Bosco (appointed 2 October 2024) Dame Carolyn Julia McCall DBE (retired 1 November 2024) Scott Mead Siobhan Moriarty-MacDonnell Paulo Pereira Lisa Reuben Bianca Roden Elbert O’Neal Robinson Lady Ina Sarikhani Weston Katy Wickremesinghe The Hon William Yerburgh

Emeritus and Honorary Trustees

Lord Charles Aldington Susan Burns Sir David Cannadine FBA Sir Richard Carew Pole Bt OBE DL (deceased 1 December 2024) Varun Chandra Sir Trevor Chinn CVO John Coombe Elizabeth Crain Lord Davies of Abersoch CBE Maryam Diener nee Sachs Sir Lloyd Dorfman CBE Ambassador Edward E Elson John Entwistle OBE Michael Gee HRH Princess Marie-Chantal of Greece

Page: 1

Royal Academy Trust Reference and Administrative Details

Emeritus and Honorary Trustees (continued)

C. Hugh Hildesley Anya Hindmarch CBE Susan Ho Clive Humby OBE (appointed 1 November 2025) Lady Lever Sir Sydney Lipworth KC (deceased 27 June 2025) The Rt Hon The Lord Luce, GCVO DL Philip Marsden Dame Carolyn Julia McCall DBE (appointed 14 January 2025) Sir Keith Mills GBE DL Ludovic de Montille Lady Myners John Raisman CBE Sir Simon Robertson Lord Rose of Monewden Richard Sharp David Stileman Robert Suss Peter Williams

Executive Committee

Batia Ofer (Chair) Sally Tennant OBE (Deputy Chair) Prof Peter St John (Adam Caruso and Peter St John RA) Natasha Mitchell (appointed 1 November 2024; resigned 10 August 2025) Axel Rüger (resigned 31 October 2024) Rebecca Salter PRA Simon Wallis (appointed 10 August 2025) Pesh Framjee Sébastien Mazella di Bosco (appointed 1 January 2025) The Hon William Yerburgh (retired 19 September 2024)

Investment Sub-committee membership in the financial year and at the date of signing:

Sally Tennant OBE (Chair) Heinrich Merz Stephen Nelson Hermione Robinson (appointed 14 May 2025) Alice Ryder Manoj Soni (appointed 14 May 2025) Nigel Thomas (retired 14 May 2025) Andrew Threadgold (retired 12 February 2025) The Hon William Yerburgh

Registered Office

Burlington House Piccadilly London W1J 0BD

Page: 2

Royal Academy Trust Reference and Administrative Details

Advisers:

Auditors

Crowe UK LLP 2nd Floor 55 Ludgate Hill London EC4M 7JW

Bankers

Lloyds Bank Plc 4th Floor 25 Gresham Street London EC2V 7HN

Solicitors

Macfarlanes LLP 20 Cursitor Street London EC4A 1LT

Withers LLP 16 Old Bailey London EC4M 7EG

Investment Managers

Partners Capital LLP 5th Floor 5 Young Street London W8 5EH

Sarasin & Partners LLP Juxon House 100 St Paul's Churchyard London EC4M 8BU

Evenlode Investment Management Limited The Long Barn Chalford Park Barns Oxford Road Chipping Norton Oxfordshire OX7 5QR

Page: 3

Royal Academy Trust Trustees’ Report For the year ended 31 August 2025

The trustees present their report and financial statements for the year ended 31 August 2025.

CONSTITUTION AND CHARITABLE OBJECTIVES

Constitution

Royal Academy Trust (“the Charity” or “the Trust”) was established under a Trust Deed dated 11 February 1981 to serve the public benefit by providing funds for the support of The Royal Academy of Arts (“the Royal Academy” or “the Academy”). The Trust was altered by a scheme dated 20 April 1998. The Trust Deed has been amended several times; most recently on 6 June 2019.

Governance and management

The Charity is governed by trustees, who are men and women of distinction from business and the wider community.

The maximum number of trustees is 35 at any one point in time. The trustees consist of the President, Treasurer and the Secretary and Chief Executive of the Royal Academy, ex officio , and other trustees who shall serve a three year initial term, after which they are eligible for a three year renewal term, and in exceptional circumstances further terms each of no more than three years.

The trustees and officers who served during the year ended 31 August 2025 and at the date of signing are shown on pages 1 and 2 of the annual report and financial statements.

The management of the funds and distributions to the Royal Academy up to £1.25m per annum has been delegated to the Charity’s Executive Committee, chaired by the Chair of the Trust. The Charity’s Executive Committee has further delegated authority to manage distributions to the Royal Academy from the anonymous donor fund, which comprises both a permanent endowment element and a restricted fund for a capital project, and to approve distributions to the Royal Academy of the revenue funding component of donations received as part of The Royal Academy Founders Fund (“the Founders Fund”) campaign, where donations have both an endowment and revenue funding component. Other distributions to the Royal Academy for more than this must be approved by the full Trustee Board. The timing and execution of such distributions may be delegated to the Charity’s Executive Committee.

The trustees are responsible for approving adequate arrangements for induction and training for new trustees and to this end a programme has been arranged to include formal inductions by the Chair, key Royal Academy Officers and executive staff, and by the Royal Academy General Counsel, together with an informative welcome pack and an introductory tour.

The trustees have a risk management process. Risks are recorded in a Risk Register and mitigating actions implemented and monitored. The major risk for the Charity is exposure to a volatile financial market. This is mitigated by the frequent monitoring and broad spread of the funds to managed investments. This risk, along with any other is considered by the trustees and is part of the Risk Register reviewed by the Charity’s Investment Sub-committee and Executive Committee on at least an annual basis.

The main investment portfolio is managed by the trustees, through the Investment Sub-committee, based on advice from Partners Capital LLP (“Partners Capital”). Further investment funds are held with Sarasin & Partners LLP (“Sarasin”) and Evenlode Investment Management Limited (“Evenlode”). These managers are similarly overseen by the Investment Sub-committee.

The Investment Sub-committee advises the board of trustees on investment policy and risk. The Investment Subcommittee comprises trustees with investment experience and non-trustees chosen for their experience of investment management.

Charity Governance Code

The Charity and its trustees take good governance seriously and are aware of the Charity Governance Code, including its seven main principles.

During the financial year the Charity continued to:

Page: 4

Royal Academy Trust Trustees’ Report For the year ended 31 August 2025

The Charity carried out a Board review, which produced its findings in June 2025. A summary of the findings are that:

OBJECTIVES, ACTIVITIES AND PUBLIC BENEFIT

The object of the Charity is the maintenance, development, advancement and preservation of the Royal Academy, a legally separate charity based in London, through which the arts of design are promoted by its charitable objects, which are stated as:

It should therefore be noted that the object and therefore the remit of the role of the trustees does not extend to the responsibility for the Royal Academy itself and its day to day running, for which the Council of the Royal Academy is responsible, as the governing body of The Royal Academy of Arts.

Current activities and objectives

Future plans

In setting these objectives, the trustees confirm that they comply with their duty in section 17 of the Charities Act 2011 to have regard to the guidance on public benefit published by the Charity Commission in exercising their powers and duties.

FINANCIAL REVIEW, ACHIEVEMENTS AND PERFORMANCE

Financial review

Income for the year ended 31 August 2025 totalled £5.4m (2024: £1.5m). There were donations and grants of £4.0m in support of Royal Academy cultural activities (2024: £0.2m). There was also £1.4m of investment income (2024: £1.3m). Net gains on investments were £1.3m (2024: £2.7m).

Donations to the Royal Academy of £2.8m (2024: £1.9m) were made up of £2.3m (2024: £1.7m) in support of revenue projects; and £0.5m (2024: £0.2m) in respect of Phase III of the Burlington Project. The former comprises £1.8m (2024: £1.7m) as an annual donation and £0.5m (2024: £nil) pertaining to amounts raised as part of the Founders Fund for revenue projects and donated to the Royal Academy. £1.2m (2024: £1.2m) of the annual donation relates to designated/restricted funds, whilst £0.6m (2024: £0.5m) relates to a just under 4% distribution from unrestricted and general-purpose endowment/restricted funds broadly in line with the target annual distribution rate of 4% set by the trustees for year ended 31 August 2020 and future financial years.

Page: 5

Royal Academy Trust Trustees’ Report For the year ended 31 August 2025

During the year the investment portfolio increased from £52.2m to £56.1m. The portfolio returned £2.7m (c.5.0%), £4.0m was invested from donations and legacies and £2.8m drawdown to fund donations to the Royal Academy. As at 31 August 2025, Sarasin were managing £5.1m in a Liquidity Fund set up for restricted funds for Phase III of the Burlington Project. Of the remaining funds of £51.0m, Partners Capital were managing c.62.4% of assets under management, with Sarasin managing c.28.2% and Evenlode c.9.4%. Cash at bank held with Lloyds Bank Plc. decreased from £0.3m to £0.1m during the year, with net expenditure on raising funds and drawdowns to fund donations to the Royal Academy less income from donations and legacies totalling £0.2m.

Included in the above amounts are funds donated for the Royal Academy to be held in investments by the Charity. These funds are held by the Charity until they are required for specific projects of the Royal Academy and are invested by the Charity to provide future funding for the charitable objects of the Royal Academy. These are treated as assets of the Charity and are held for the maintenance, development, advancement, and preservation of the Royal Academy.

Investments

The overall investment strategy is seeking to provide a reasonable level of return, while ensuring that the “real” value of the capital is maintained, such that the trustees will be able to continue similar distributions in the future. Distributions for restricted and unrestricted designated funds are in accordance with specific restrictions and distribution rates, at various rates up to 4%. The trustees have set an annual target distribution rate of 4% for unrestricted and general-purpose permanent endowment funds. To achieve this, a long-term investment return objective of inflation plus 4% has been identified as appropriate. Whilst it is the intention to create an investment solution that meets this long-term objective, it is recognized that there will be periods when lower returns will be expected.

During the year ended 31 August 2023, the Investment Sub-committee made changes to the overall strategic asset allocation for the portfolio and the relative asset holdings of its three investment managers. It further established a liquidity fund for restricted capital project funds held for the Royal Academy for Phase III of the Burlington Project. As at 31 August 2025, excluding liquidity funds and other cash at bank, the portfolio has c.73% of its assets in global equities (including c.20% in private equity) and c.27% in other investment classes (including c.9% in private debt) with Partners Capital managing c.66% of these assets, Sarasin c.24% and Evenlode c.10%. This is broadly in line with the 65%/25%/10% target manager allocation and overall strategic asset allocation.

There has been no change in the investment strategy or investment managers in the year. However, the Investment Sub-committee is currently undertaking a triennial review of the investment strategy. This review includes consideration of the annual target distribution rate; the annual target level of return; the strategic asset allocation of the overall portfolio, including the level of liquidity; and the past performance of the three existing investment managers. This review will be completed in 2026.

Since November 2008, management of the Charity’s investment portfolios has operated under agreements with Partners Capital. Since June 2014, this has operated under a Discretionary Management Agreement. The primary purpose of the Partners Capital investment portfolio is to support the long-term operating and capital needs of the Royal Academy. To this end, the overall portfolio is managed to maximise the long-term total return of the portfolio, subject to maintaining a reasonable level of risk of loss. The main investment portfolio supports the operating and capital needs of the Royal Academy through an annual spending rate, which is reviewed periodically to ensure the spending rate is sustainable over the long-term. The Trust’s objective from the Partners Capital investment portfolio is to preserve and, if possible, to enhance the purchasing power of its assets, after annual spending and all costs and expenses, over rolling three-year periods. This objective implies a minimum time-weighted net return target for the Trust more than the RA’s estimated cost inflation (estimated at 3.0%, based on forecast long run UK inflation of 3.0%) plus the spending rate (as defined above of 4% per annum). This equates to a minimum annual return of 7.0% p.a. Actual returns will need to be more than this minimum target to cover the costs of portfolio management and to provide a cushion over the longer-term.

The Charity’s investment portfolio with Sarasin operates under a Discretionary Client Agreement signed in November 2016. The aim of the portfolio is to enhance the capital value over the longer term, whilst generating sufficient income to meet the Charity’s requirements, for which a “real return” of 4% per annum has been targeted. The Charity’s investments are held in the Sarasin Endowments Fund and the Sarasin Climate Active Endowments Fund; the objective of both these funds is to achieve long-term capital and income growth.

Page: 6

Royal Academy Trust Trustees’ Report

For the year ended 31 August 2025

During the year ended 31 August 2023, the Charity set up a separate Liquidity Fund as a sub-account of its main mandate with Sarasin. £3.7m was divested from Sarasin’s existing endowment portfolio and reinvested in this Liquidity Fund. A further £1.3m was transferred from Partners Capital funds. The Liquidity Fund invests in Certificates of Deposit of up to 12 months and a sterling liquidity fund. This original £5.0m mandate is in respect of the restricted fund to be made available to the Royal Academy for Phase III of the Burlington Project, called the RA Collection Gallery Project. These funds will be drawn by the Royal Academy as required with the project due to be completed in 2027. A second Liquidity Fund was set up during the year ended 31 August 2025 primarily to hold funds received from fundraising ahead of longer-term investment decision approval by the Investment Subcommittee, similarly, investing in Certificates of Deposit of up to 12 months and a sterling liquidity fund.

Since January 2020, the Charity has invested in the Evenlode Global Income Fund, which aims to produce attractive long-term total returns, with an emphasis on income. The fund aims to grow dividend income by a conservative 6% per annum, or about 3% real in the long-term. The fund further targets capital growth (excluding dividend income referred to above) of over 6% per annum or 3% real.

Endowments

The Charity has five permanent endowments. These are managed by the trustees on a total return basis. This means that the funds are invested to maximise the total return on investment without regard to whether that return is in the form of income from dividends or interest or capital appreciation. The trustees decide each year how much of that return is released to restricted income funds for spending and how much is retained for investment. The allocation is made on an equitable basis to balance the need to fund annual levels of distribution and the maintenance over time of the real value of the endowment. Until transferred, the unapplied total return remains invested as part of the permanent endowment.

The trustees have noted the value of the gift for each of the five permanent endowments received, since each fund was established. This provides the baseline value of the gift component of each endowment to which any subsequent gift of endowment is added. The difference between the total of the endowment fund and the value of the gift component represents the balance of unapplied total return. Having considered their obligations as outlined above, the trustees decided to make transfers from unapplied total return to restricted income funds for the year ended 31 August 2025 of £0.0m (2024: £0.0m) for the Ivor Rey scholarship fund to support the annual award to enable students of the Royal Academy Schools to visit Paris, France for the purpose of studying art; £0.2m (2024: £0.2m) from the Paul Mellon endowment fund to support Royal Academy revenue projects; £0.1m (2024: £0.1m) from the McAulay Scholarship Fund endowment to support students in the Royal Academy Schools; £0.0m (2024: £0.0m) from the Armando Garza Sada Sr. Memorial fund, which was established in 2022; and £0.7m (2024: £0.6m) for the anonymous donor fund. In making these decisions the trustees have taken account of the investment climate, the return on investment for the year, previous levels of allocations from the unapplied total returns and the income needs of the Charity.

Responsible Investment Policy

The Charity is committed to investing its funds on a socially responsible basis. In June 2021, the trustees approved the Charity’s Ethical Investment Policy (“the Policy”). In May 2022, the Policy was reviewed by the Investment Sub-committee with minor amendments, including a change in the Policy name to the Responsible Investment Policy. This better reflects the objectives and principles contained in the Policy. This amended Policy was approved by the Trust Executive in September 2022, with an update provided to the full Trustee Board in September 2022. The Policy is now reviewed annually and is published on the Royal Academy’s website. The Policy includes reference to the values set out in the Royal Academy’s Strategic Plan 2023-2028. This states that “in everything we do and everyone we engage with we are guided by a strong ethical compass. We take our responsibility towards the environment, social justice, and proper governance very seriously. In our work we meet fundamental principles in the areas of human rights, labour, the environment, and anti-corruption.” The Policy has been developed with the intention of active promotion of investment in companies and investment funds which demonstrate policies and practices that are in line with the Charity’s values of strong ethical principles. The Policy applies to the full scope of the investments held by the Charity. The Charity believes that to accord with its values when investing its funds, regard must be made to Environmental, Social and Governance (“ESG”) issues.

Page: 7

Royal Academy Trust Trustees’ Report For the year ended 31 August 2025

The Investment Sub-committee monitors the operation and the effectiveness of the Policy and provides the trustees with an annual update. An ESG Sub-Group of the Investment Sub-committee was formed in early 2024 to undertake a deeper dive into ESG matters and its findings were reported to the Investment Sub-committee during 2025 and formed part of the fourth annual ESG report. The fourth annual ESG review and report from the Investment Sub-committee in respect of the period to 31 August 2025 was presented to the full Trustee Board in October 2025. The Investment Sub-committee was pleased to report the progress made over the past year. It will continue to monitor and seek further improvements over the following 12 months.

The Charity has identified two sets of principles which accord with its values and aspirations in this area, one relating to the operations of its fund managers and the other to setting appropriate standards for all its investments. Firstly, The United Nations Principles for Responsible Investment (“UNPRI”): these six principles have been developed, inter alia, to “better align investors with the broader objectives of society”. The Charity therefore expects that its fund managers will be signatories of the UNPRI and follow its principles in the way they operate. Secondly, The United Nations Global Compact: The Charity supports the ten principles of the United Nations Global Compact, which stem from the acceptance that, as with the Charity itself, corporate sustainability starts with an entity’s value system and a principled approach to the way it operates. This means operating in ways that, at a minimum, meet fundamental responsibilities in the areas of human rights, labour, environment, and anti-corruption.

In managing its investments, the Charity therefore expects its appointed investment managers to encourage good behaviour and discourage poor behaviour through the screening of investments (using the principles above or an equivalent framework) and through the direct engagement with the companies in which they invest. In doing so, they should promote sustainability, good business ethics, good employment practices and the transition to a low carbon economy.

The Charity is particularly concerned about the following ESG issues and will continue to adopt investment strategies that seek to minimise or, ideally, eliminate investments in companies with corporate behaviour leading to: environmental degradation and climate change; the manufacture of controversial weapons, including cluster munitions, landmines, biological and chemical weapons, nuclear and depleted uranium weapons; tobacco production, cultivation, and manufacture; and adult entertainment (pornography) production, distribution, retail, and ownership. Such investment strategies are not in line with the Charity’s values and may damage the Charity’s reputation and impact fundraising and so are not in the Charity’s best interest.

During the two financial years to 31 August 2022, the Charity invested £5.0m in the Sarasin Climate Active Endowments Fund. The Charity further approved in February 2022 a commitment of c.£0.5m ($0.7m) to the 2022 vintage of the Partners Capital 15 degrees Fund, representing 50% of the annual £1.0m Private Equity commitment. In February 2024, the Charity approved a further c. £0.8m ($1.0m) commitment in the 15 degrees Fund II, representing 50% of the annual £1.6m Private Equity commitment. This fund will similarly focus on investments in technological innovation and advancing solutions which tackle pressing environmental and social challenges.

Related party transactions

Related party transactions are disclosed in note 21 to the financial statements.

Reserves policy

The Charity holds its free reserves as investment funds from which it can generate income and capital gains for the future support of the Royal Academy. The current statement of investment principles and the distribution policy recognise the objective of delivering financial support for the Royal Academy that will be sustainable for the foreseeable future. The trustees have not established a minimum or maximum level of free reserves as they wish to be able to balance the need to respond to immediate special needs of the Royal Academy and to ensure sustained support. As at 31 August 2025, the Charity held total funds of £56.2m (2024: £52.3m), of which £18.6m (2024: £16.8m) were unrestricted funds for which £11.9m (2024: £10.3m) is both unrestricted and not designated; £22.0m (2024: £22.1m) endowment funds; and £15.6m (2024: £13.4m) restricted funds.

Page: 8

Royal Academy Trust Trustees, Report Forthe year ènded 31 August 2025 FUNDRAISING The Charity has a cost of raising funds in the financial statements in relatign to investment fund managerfees and staff costs for administefin8 legacies to generate fL5nds on behalf of the Royal Academy. The Charity doe5 not actively fundraise and any approach to fundraisin8 would take account of the Code ol Fundrnising Practice issued by the Fundraising Regulator. The Royal Atademy is registe￿ with the Fundraising Regulator. submits annual and provides statements on particular area5 01 fundraising lincluding complaints) in its annual report. These statement5 indude artivities which might technically fall under the rernit of the Charity. The Re8ulator has approved this arrar￿ement and COnfirn￿d that the Charity Os not required to maintsin a separate re8iStration with the Regulator. STATEMENT OF TRUSTEES, RESPOI4SIBILITIES The trustees are responsible for preparin8 the trustee5' report the finanoal statements in accordance with the applicable law and the United Kingdom A¢(￿nti￿ Standards (United Kingdcrfn Generally Accepted Accounting Practi￿1. The law applicable to charities in England and Wales wuires the trustees to prepare financial statements lor each linancial year which give a true and fair view of the state of the affairs of the tharity and of the incomin8 resources and application of re50urtes of the tharity for that period. In preparing these linantial statements. the trustees are re9uSred to.. Select suitable a¢countin8 polioes and then appty them Consistent￿l- Make judgrnents and estimates that are reasonable and prudent.. State whether applicable UK A£￿unting Standards have been followed, subjert to any material departures disclosed and explained in the financial statements- Prepare the financial statements the 80in8 concern basi5 Lbnles5 It is inappropriate to presume that the charity w¢ll continue in business.. Observe the methods and principles in the Charities SORP. The trustees we responsible for keeping proper act￿ntin8 re¢ords that disdose with rea5cffiable Kcuraty at anv time the financial position ofthe charity and enable them to ensure that the finanoal statements comply with the Charities Att 2011. the Lharity IAccounts and Reports) RegulatTrons 21M and the Provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable 5tep5 lor the prevention and detecti(m of fraud and other irre8ulzritie Aydlt Inforrnation So lar as each of the trustees al the lime the Iruslee5' report is approv￿ is awa￿.. the￿ is no relevant infomabon ofwhith the auditors are unaware- and they have taken all relevant steps they ought w have tsken to make theMSe￿e5 awarè of any relevant audit information and to establish thatthe auditors are aware of that infom)ation. On behalf of the Board Pa8e'. 9

Royal Academy Trust Independent Auditors' Report to the Trustees of Royal Academy Trust

Opinion

We have audited the financial statements of the Royal Academy Trust ("the Charity") for the year ended 31 August 2025 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 "The Financial Reporting Standard Applicable in the UK and Republic of Ireland" (United Kingdom Generally Accepted Accounting Practice).

Opinion on the financial statements

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) ("ISAs (UK)") and applicable law. Our responsibilities under those standards are further described in the auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditors' report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Page: 10

Royal Academy Trust Independent Auditors' Report to the Trustees of Royal Academy Trust

Other information (continued)

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out on page 9, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

We have been appointed as auditors under section 144 for smaller charities opting for an audit rather than an independent exam of the Charities Act 2011 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors' report.

Page: 11

Royal Academy Trust Independent Auditors' Report to the Trustees of Royal Academy Trust

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charity operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011 together with the Charities SORP (FRS102) 2019. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity’s ability to operate or to avoid a material penalty. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and those charged with governance about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

Page: 12

Rtrol AcademyTrust Indewtht Auditors. Report to the Tnotees of oval A¢akniyTrust Use ol our report This report 15 made soldy to the thariWs tnjstees. a5 a bD(ty, ui accordance Vlith Part 4 of thè Charities (Accounts and Reports) Regulations 2￿. Our audit work has been undertaken so that we might state to the charit¢s trustees those matters we are required to state to them in an auditors. report and for no other purpose. To the fullest exient permrtted by law. we do not accept or assume responsikn'lity to anyone other than the charity and the charitys tntstees as a body. for our audit wod(. for thLs report, or for the opinions we have formed. Crowe UK LLP ststutory Audltor 2nd Floor 55 Ludgate Hill London EC4M 71W C¥owe UK LLP is eligible for appointment as auditty of the chartty by wrtue of its elwAibTrlity for appointment a5 auditor of a ctynpany under Section 1212 of the Companies Act 2(Kfi. Page.. 13

Royal Academy Trust Statement of Financial Activities

For the year ended 31 August 2025

Unrestricted Restricted Endowment Total Total
funds funds funds funds funds
Note 2025 2025 2025 2025 2024
£ £ £ £ £
* see note 4 for
Income and endowments from: comparatives
Donations and legacies 5 1,396,084 2,412,336 25,000 3,833,420 209,691
Grant income 6 - 200,000 - 200,000 -
Investments 7 466,629 370,867 549,234 1,386,730 1,309,149
Total income 1,862,713 2,983,203 574,234 5,420,150 1,518,840
Expenditure on:
Raising funds 9 (121,471) - (13,403) (134,874) (203,785)
Charitable activities
Annual donation to the Royal Academy 8 (560,815) (1,212,716) - (1,773,531) (1,677,084)
Other donations to the Royal Academy 8 - (1,000,000) - (1,000,000) (200,000)
Total charitable activities (560,815) (2,212,716) - (2,773,531) (1,877,084)
Total expenditure (682,286) (2,212,716) (13,403) (2,908,405) (2,080,869)
Net gains on investments 12 594,346 459,046 253,312 1,306,704 2,722,014
Net income 1,774,773 1,229,533 814,143 3,818,449 2,159,985
Transfers between funds 16,17 - 946,688 (946,688) - -
Total funds brought forward 16,794,913 13,420,449 22,139,569 52,354,931 50,194,946
Total funds carried forward 18,569,686 15,596,670 22,007,024 56,173,380 52,354,931

All gains and losses arising in the year are included in the Statement of Financial Activities and arise from continuing operations.

The notes on pages 17 to 33 form part of these financial statements.

Page: 14

oval Academy Tryst alan¢e Sheet as at 31Au8u# 2025 2025 2024 Nxed assets Investments 12 %,125,765 52.165.701 Current assets Debto Cash at bank and in hand 43.070 100,910 36,566 276,755 Total £urrent a55ets 313,321 LlabSlltles Creditors- amounts falling thje within one year 14 (96.365 1124,0911 Net current assets 47,615 189,230 Nèt assets ,173,380 52,354,931 The funds of thè charlty. Endowment funds 16 2I1fj7.024 22.139.$69 Restricted funds 17 15.596.670 13.420,449 Unrestrirted funds.. Designated Other 6.676.107 11.893.579 6,463,666 10,331.247 Total unrestrirted funds 14569.686 16,794,913 Tthal tharity fufftds .173.380 52,354,931 Approved by the Trustees and authorised for issue on......._..................... Batla Oler, Chalr Pa8e.' 15

Royal Academy Trust Statement of Cash Flows For the year ended 31 August 2025

Note
Net cash used in operating activities
15
Cash flow from investing activities
Dividends and interest from investments
7
Fund manager fees
9
Payments to acquire fixed asset investments
12
Proceeds from investment disposals
12
Net movement in cash held in the investment portfolio
12
Net cash provided by investing activities
Net (decrease) / increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2025
£
1,115,183
1,386,730
(24,398)
(14,607,238)
12,235,646
(281,768)
(1,291,028)
(175,845)
276,755
100,910		 2024
£
(1,715,283)
1,309,149
(110,203)
(16,230,675)
16,464,621
351,892
1,784,784
69,501
207,254
276,755

Page: 16

Royal Academy Trust Notes to the Financial Statements For the year ended 31 August 2025

1 General information

Royal Academy Trust ("the Charity") is a registered charity established to serve public benefit by providing funds for the support of The Royal Academy of Arts ("the Royal Academy"). The registered office is Burlington House, Piccadilly, London, W1J 0BD.

2 Summary of significant accounting policies

The financial statements have been prepared under the historical cost convention as modified by the revaluation of investments to market value and in compliance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard 102, "The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland" ("FRS 102") and the Charities Act 2011.

The financial statements are prepared in sterling which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest pound.

The Charity is a Public Benefit Entity as defined by FRS 102.

a. Basis of preparation

The financial statements have been prepared on a going concern basis.

The principal accounting policies applied in the preparation of these financial statements are set out in the notes below. These policies have been consistently applied to all the years presented, unless otherwise stated.

b. Going concern

The trustees consider that there are no material uncertainties affecting the Charity's ability to continue as a going concern for at least twelve months from the date of approval of the accounts.

c. Total return investment accounting

The trustees have elected to adopt the total return approach for the investment of its permanent endowments. Under this approach, the permanently endowed funds are invested to produce an investment return without regard to whether that return is in the form of income or capital appreciation; the investment return forms a component of the endowment fund called the unapplied total return. The trustees periodically determine how much of the unapplied total return is released to income for spending and how much is retained for investment. This allocation is made equitably to balance the need for income to meet current requirements and to hold funds as part of the endowment to produce investment returns for the future.

d. Funds structure

Where there is a legal restriction on the purpose to which a fund may be put, the fund is classified either as a restricted fund or an endowment fund.

Restricted funds are those where the donor has provided for the donation to be spent in furtherance of a specified charitable purpose.

Page: 17

Royal Academy Trust Notes to the Financial Statements For the year ended 31 August 2025 (continued)

2 Summary of significant accounting policies (continued)

d. Funds structure (continued)

Endowment funds arise when the donor has expressly provided that the donation is to be invested and only the income of the fund may be spent. These funds are sub analysed between those where the trustees have the discretion to spend the capital, an expendable endowment, and those where there is no discretion to expend the capital, a permanent endowment.

Those funds which are neither endowment nor restricted income funds, are unrestricted income funds which are sub analysed between designated funds where the trustees have set aside amounts to be used for specific purposes or which reflect the non-binding wishes of donors and unrestricted funds which are used at the trustees' discretion in furtherance of the general objectives of the Charity, including the general fund which represents the Charity's reserves. The major funds held in each of these categories are disclosed in notes 16 to 18.

e. Income

All income is recognised once the Charity has entitlement to the resources, it is probable (more likely than not) that the resources will be received and the monetary value can be measured reliably.

Investment income, including the related tax credit, and interest on bank and short-term deposits are accounted for on a receivable basis.

Donations are accounted for when received.

Legacies are accounted for as income where there is clear entitlement; the amount can be measured reliably; and receipt is probable.

Receipt is probable when:

Measurement is based on the value listed in the will for pecuniary gifts, provided the estate has sufficient funds, and on the estate accounts for residuary gifts.

f. Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to each category of expense shown in the Statement of Financial Activities ("SOFA").

g. Raising funds

The costs of raising funds are those costs attributable to generating income for the Charity. These represent the legacy manager's salary costs, investment management fees and governance costs. Governance costs are primarily concerned with constitutional and statutory requirements.

Page: 18

Royal Academy Trust Notes to the Financial Statements For the year ended 31 August 2025 (continued)

2 Summary of significant accounting policies (continued)

h. Charitable activities

Costs of charitable activities comprise the donations made to the Royal Academy. Generally, donations are accounted for when paid. However, where the Royal Academy has incurred expenditure on a major capital project on the basis of a commitment from the Charity to reimburse costs, any costs not covered by donations paid in the year are provided for.

i. Investments

Investments are stated at fair value at the reporting date. Listed investments are valued at the bid price quoted on the relevant stock exchange and investments that are held in units are stated at the average of the unit bid and offer prices. Unlisted, alternative, and private equity investments are valued at the most recent available valuations provided by fund managers, adjusted for any known changes in value, and in accordance with recognised valuation guidelines. The Statement of Financial Activities includes all realised and unrealised gains and losses arising on investments during the year.

The main financial risks faced by the Charity relate to market volatility, liquidity constraints in private investments, and valuation uncertainty for unlisted holdings.

j. Realised gains and losses

All gains and losses are taken to the SOFA as these arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and opening carrying value or later purchase price. Unrealised gains and losses are calculated as the difference between the market value at the year end and opening carrying value or later purchase price.

k. Foreign currencies

Investment transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Assets and liabilities denominated in foreign currencies are retranslated at the rate ruling at the balance sheet date.

l. Financial instruments

Financial instruments are recognised in the Charity's balance sheet when it becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Charity after deducting all of its liabilities.

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost less any impairment.

Page: 19

Royal Academy Trust Notes to the Financial Statements For the year ended 31 August 2025 (continued)

2 Summary of significant accounting policies (continued)

l. Financial instruments (continued)

Other financial assets

Other financial assets, including investments in equity instruments, are initially measured at fair value which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in the SOFA.

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as "debtors". Debtors are measured at amortised cost less any impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through the SOFA, are assessed for indicators of impairment at each reporting end date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in the SOFA.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

Basic financial liabilities

Basic financial liabilities, including trade and other payables, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Other financial liabilities

Derivatives, including forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured at their fair value. Changes in the fair value of derivatives are recognised in the SOFA in finance costs or finance income as appropriate. Hedge accounting is not currently applied.

3 Critical accounting judgments and estimation uncertainty

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Page: 20

Royal Academy Trust Notes to the Financial Statements For the year ended 31 August 2025 (continued)

4 Prior year comparatives by type of fund

2024
2024
2024
£
£
£
Income and endowments from:
Donations and legacies
209,691
-
-
Investments
330,090
441,969
537,090
Total income
539,781
441,969
537,090
Expenditure on:
Raising funds
(190,757)
-
(13,028)
Charitable activities
Annual donation to the Royal Academy
(196,529)
(1,480,555)
-
Other donations to the Royal Academy
-
(200,000)
-
Total charitable activities
(196,529)
(1,680,555)
-
Total expenditure
(387,286)
(1,680,555)
(13,028)
Net gains on investments
727,902
246,931
1,747,181
Net income
880,397
(991,655)
2,271,243
Transfers between funds
-
926,436
(926,436)
Total funds brought forward
15,914,516
13,485,668
20,794,762
Total funds carried forward
16,794,913
13,420,449
22,139,569
Income from donations and legacies
Total
2025
2025
2025
2025
£
£
£
£
General
1,349,808
-
-
1,349,808
Revenue projects:
Schools
46,276
2,212,336
-
2,258,612
Exhibitions
-
200,000
-
200,000
Learning
-
-
25,000
25,000
Total revenue projects
46,276
2,412,336
25,000
2,483,612
Total
1,396,084
2,412,336
25,000
3,833,420
Unrestricted
funds
Restricted
funds
Endowment
funds
Unrestricted
funds
Restricted
funds
Endowment
funds		 Total
funds
2024
£
209,691
1,309,149
1,518,840
(203,785)
(1,677,084)
(200,000)
(1,877,084)
(2,080,869)
2,722,014
2,159,985
-
50,194,946
52,354,931
Total
2024
£
158,650
51,041
-
-
51,041
209,691

5 Income from donations and legacies

Page: 21

Royal Academy Trust Notes to the Financial Statements

For the year ended 31 August 2025 (continued)

5 Income from donations and legacies (continued)

The Charity is the beneficiary of a number of legacies, the value of which cannot be ascertained with certainty. Based on information available at the date of the financial statements, it is estimated that the Charity will receive approximately £117,103 (2024: £nil) from these legacies.

As the receipt of these legacies is dependent on future events, these are not recognised as an asset in the SOFA. However, these are disclosed in this note as a contingent asset in accordance with FRS 102 SORP paragraph 5.34.

6 Income from grants

Exhibitions
Total
Income from investments
Listed investments
Bank interest
Total		 Total
2025
2025
£
£
200,000
200,000
200,000
200,000
Total
2025
2025
2025
2025
£
£
£
£
454,264
351,230
541,670
1,347,164
12,365
19,637
7,564
39,566
466,629
370,867
549,234
1,386,730
Restricted
funds
Unrestricted
funds
Restricted
funds
Endowment
funds		 Total
2024
£
-
-
Total
2024
£
1,269,008
40,141
1,309,149

7 Income from investments

8 Analysis of expenditure on charitable activities

In the current year, the Charity made donations of £2,773,531 (2024: £1,877,084) to the Royal Academy, representing £500,000 (2024: £200,000) for Burlington Project - Phase III; £400,000 (2024: £nil) for the exhibitions programme; £180,000 (2024: £180,000) for the Heinz Architecture Programme; £462,357 (2024: £319,497) for the Royal Academy Schools; £11,400 (2024: £6,410) for the Library; £23,274 (2024: £11,148) for the learning programme; and £5,000 (2024: £5,000) for the Casson Drawing Prize in the Summer Exhibition, with the balance donated in support of the general activities of the Royal Academy.

Page: 22

Royal Academy Trust Notes to the Financial Statements For the year ended 31 August 2025 (continued)

8 Analysis of expenditure on charitable activities (continued)

Total
2025
2025
2025
2025
£
£
£
£
Annual donation to the Royal
Academy
560,815
1,212,716
-
1,773,531
Royal Academy revenue projects:
Schools
-
100,000
-
100,000
Exhibitions
-
400,000
-
400,000
Total revenue projects
-
500,000
-
500,000
Royal Academy capital projects:
Burlington Project - Phase III
-
500,000
-
500,000
Total capital projects
-
500,000
-
500,000
Total
560,815
2,212,716
-
2,773,531
9
Analysis of expenditure on raising funds
Total
2025
2025
2025
2025
£
£
£
£
Fund manager fees
10,995
-
13,403
24,398
Staff costs
68,720
-
-
68,720
Auditors' remuneration
18,060
-
-
18,060
Bank charges
11,244
-
-
11,244
Exchange rate losses
144
-
-
144
Miscellaneous
12,308
-
-
12,308
Total
121,471
-
13,403
134,874
Unrestricted
funds
Restricted
funds
Endowment
funds
Unrestricted
funds
Restricted
funds
Endowment
funds		 Total
2024
£
1,677,084
-
-
-
200,000
200,000
1,877,084
Total
2024
£
110,203
68,292
23,159
92
87
1,952
203,785

10 Trustees' remuneration, benefits and expenses

The President, the Treasurer, and the Secretary and Chief Executive of the Royal Academy, who are ex-officio legal trustees of the Charity and members of its Executive Committee, are paid remuneration by the Royal Academy, for which no recharge is made to the Charity. It is not possible to make a reasonable apportionment of their remuneration in respect of their services to the Charity. Accordingly, the disclosures regarding remuneration for key management personnel of the Charity include no amounts in respect of the President, the Treasurer, and Secretary and Chief Executive of the Royal Academy. Remuneration excluding pension contributions was paid by the Royal Academy as follows: the President - £70,000 (2024: £70,000); the Treasurer - £40,000 (2024: £40,000); and the Secretary and Chief Executive - £199,009 (2024: £237,190). In addition, the Secretary and Chief Executive received pension contributions totalling £20,086 (2024: £23,719). The President and the Treasurer did not receive any pension contributions (2024: same).

The Charity's other trustees give their time freely and receive no remuneration for the work that they undertake as trustees. However, they can claim expenses to reimburse them for costs that they incur in fulfilling their duties.

Page: 23

Royal Academy Trust Notes to the Financial Statements For the year ended 31 August 2025 (continued)

10 Trustees' remuneration, benefits and expenses (continued)

No trustee, or person related or connected by business to them, has received any remuneration from the Charity during the current or prior year. No expenses were reimbursed to trustees for travel to attend committee meetings of the Charity during the current or prior year.

11 Analysis of staff costs

The trustees have concluded that the Executive Committee comprise the key management personnel of the Charity. No remuneration was paid to key management personnel (2024: £nil). However, as disclosed in note 10, the President, the Treasurer, and the Secretary and Chief Executive of the Royal Academy, who are members of the Executive Committee, are paid remuneration by the Royal Academy.

Salaries and wages
Social security costs
Employers pension contribution
Total		 2025
£
57,721
5,227
5,772
68,720		 2024
£
57,721
4,799
5,772
68,292

Salary costs represent the cost of staff employed by the Royal Academy and recharged to the Charity. The average number of permanent staff engaged by the Charity in 2025 was 1 (2024: 1).

12 Investments

Movement in market value of investments
Market value brought forward
Additions to investments at cost
Proceeds on disposal
Net gains on investments
Market value of investments at 31 August
Market value of investments by type
Bonds
Property
Global equities
UK equities
Hedged equities
Absolute return
Alternative investments
Liquid assets
Total market value of investments
Cash holdings
Total
[Historic cost of investments £41,077,383 (2024:
£38,146,802)]		 2025
£
51,621,122
14,607,238
(12,235,646)
1,306,704
55,299,418
2025
£
3,336,730
1,288,433
21,080,932
9,427,590
1,810,416
3,998,150
1,245,997
13,111,170
55,299,418
826,347
56,125,765		 2024
£
49,133,054
16,230,675
(16,464,621)
2,722,014
51,621,122
2024
£
3,477,572
1,369,131
21,333,989
9,303,378
1,619,634
3,713,712
943,514
9,860,192
51,621,122
544,579
52,165,701

Page: 24

Royal Academy Trust Notes to the Financial Statements For the year ended 31 August 2025 (continued)

12 Investments (continued)

Investments under management were:
Partners Capital LLP
Sarasin & Partners LLP
Evenlode Investment Management Limited
Total
All investments are carried at their fair value.		 2025
£
31,843,224
19,502,802
4,779,739
56,125,765		 2024
£
29,672,100
17,644,539
4,849,062
52,165,701

Significant investment holdings as a % of total investment portfolio based on market value at 31 August were:

Sarasin Liquidity Fund
Sarasin Endowments Fund
Sarasin Climate Active Endowments Fund
Evenlode Global Income Fund
Partners Capital The Master Portfolio (C) Ltd
Partners Capital Phoenix Fund II Ltd
Partners Capital Harrier Fund (C) Ltd
Vanguard ESG Developed World
Partners Capital Greyhawk Fund, LP
Partners Capital Condor Fund XII
Total		 2025
14.53%
9.70%
9.57%
8.52%
7.36%
6.81%
4.68%
4.47%
4.30%
3.14%
73.08%		 2024
10.25%
13.08%
10.17%
9.30%
7.16%
7.41%
4.67%
5.03%
4.15%
3.28%
74.50%

The Charity has committed, where contractual terms are made, to undertake a further $7.4m / £5.5m of fixed asset investment acquisitions in private investment funds in future years (2024: $7.8m / £5.9m).

13 Debtors
Amounts due from R.A. Enterprises Limited
Accrued income
Total		 2025
£
31,400
11,670
43,070		 2024
£
35,609
957
36,566

Amounts owed by related undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

14 Creditors - amounts falling due within one year
Amounts due to the Royal Academy
Accruals
Total		 2025
£
66,979
29,386
96,365		 2024
£
54,777
69,314
124,091

Page: 25

Royal Academy Trust

Notes to the Financial Statements For the year ended 31 August 2025 (continued)

15 Notes to the statement of cash flows

Notes to the statement of cash flows
Net income
Adjustments for:
- Gains on investments
- Dividends and interest from investments
- Fund manager fees
- (Increase) / decrease in debtors
- Decrease in creditors
Cash flow used in operating activities		 2025
2024
£
£
3,818,449
2,159,985
(1,306,704)
(2,722,014)
(1,386,730)
(1,309,149)
24,398
110,203
(6,504)
58,632
(27,726)
(12,940)
1,115,183
(1,715,283)

16 Analysis of endowment funds

2025
The Ivor Rey scholarship fund:
a
- Trust for investment
- Unapplied total return
Paul Mellon endowment fund:
b
- Trust for investment
- Unapplied total return
Anonymous donor fund:
c
- Trust for investment
- Unapplied total return
McAulay Scholarship fund:
d
- Trust for investment
- Unapplied total return
Armando Garza Sada Sr. Memorial fund: e
- Trust for investment
- Unapplied total return
Total
2024
The Ivor Rey scholarship fund:
a
- Trust for investment
- Unapplied total return
Paul Mellon endowment fund:
b
- Trust for investment
- Unapplied total return
Anonymous donor fund:
c
- Trust for investment
- Unapplied total return
McAulay Scholarship fund:
d
- Trust for investment
- Unapplied total return
Armando Garza Sada Sr. Memorial fund: e
- Trust for investment
- Unapplied total return
Total		 £
£
£
£
£
404,400
-
-
-
404,400
359,746
-
48,922
(14,532)
394,136
3,039,283
-
-
-
3,039,283
-
-
194,578
(194,578)
-
12,229,042
-
-
-
12,229,042
4,237,383
-
424,085
(656,000)
4,005,468
1,265,918
-
-
-
1,265,918
228,797
-
95,950
(56,000)
268,747
375,000
25,000
-
-
400,000
-
25,608
(25,578)
30
22,139,569
25,000
789,143
(946,688) 22,007,024
£
£
£
£
£
404,400
-
-
-
404,400
328,774
-
45,504
(14,532)
359,746
3,039,283
-
-
-
3,039,283
-
-
188,630
(188,630)
-
12,229,042
-
-
-
12,229,042
2,954,401
-
1,922,982
(640,000)
4,237,383
1,265,918
-
-
-
1,265,918
197,944
-
90,853
(60,000)
228,797
375,000
-
-
-
375,000
-
-
23,274
(23,274)
-
20,794,762
-
2,271,243
(926,436) 22,139,569
Investment
returns less
fund manager
fees
Balance at
2024
Balance at
2025
Unapplied
total return
allocated to
income
Gift of
endowment
Gift of
endowment
Investment
returns less
fund manager
fees
Unapplied
total return
allocated to
income
Balance at
2023
Balance at
2024

The anonymous donor fund is primarily invested with Sarasin & Partners LLP (“Sarasin”) and Evenlode Investment Management Limited (“Evenlode”), with the balance invested with Partners Capital LLP ("Partners Capital").

Page: 26

Royal Academy Trust Notes to the Financial Statements For the year ended 31 August 2025 (continued)

16 Analysis of endowment funds (continued)

a. The Ivor Rey scholarship fund

In March 2013, £361,303 was received from the estate of Ivor Rey to establish the Ivor Rey scholarship fund which is held as a permanent endowment and is being accounted for on a total return basis. A further £43,097 was received in December 2016. The purpose of the fund is to provide an annual award from investment returns to enable students of the Royal Academy of Arts Schools ("Royal Academy Schools") to visit Paris, France for the purpose of studying art.

b. Paul Mellon endowment fund

The Paul Mellon endowment fund was established in 2000 by a $5,000,000 / £3,039,283 legacy from Paul Mellon. It is held as a permanent endowment and is being accounted for on a total return basis. The terms of the bequest restrict the investment returns arising from it to the general purpose of the Royal Academy.

c. Anonymous donor fund

A donor, whose identity is known to the Charity, but who wished to remain publicly anonymous pledged $23,000,000 in October 2015, to be paid in eight equal annual instalments from December 2015, but with the donor having the right to accelerate any one or more of such instalments. $15,333,333 (£10,000,000 based on the exchange rate at date of pledge) is to be held as a permanent endowment and is being accounted for on a total return basis, with investment returns generated being available to the Royal Academy for unrestricted revenue projects from June 2022, with the remaining $7,666,667 (£5,000,000 based on the exchange rate at date of pledge) being available to the Royal Academy for a restricted capital project, Burlington Project - Phase III.

Two instalments were received ($5,750,000 / £3,966,198) in the period to 31 August 2016. Payment of the remaining instalments was accelerated, with the balance received during the year ended 31 August 2018. £12,229,042 ($15,000,000) is included in the endowment funds above (including a £2,229,042 realised foreign exchange gain), with £5,000,000 included in restricted funds - Burlington Project III (see note 17).

d. McAulay Scholarship fund

A donation of $1,323,364 / £1,066,455 was received from the McAulay family in August 2020 to support two full scholarships for students at the Royal Academy Schools in perpetuity. The donor's expressed intention was for these funds to "top up" the existing fund established in 1998 to provide fees and maintenance for a student at the Royal Academy Schools. The fund is held as a permanent endowment and is being accounted for on a total return basis, with the investment return being used to fund the scholarships.

e. Armando Garza Sada Sr. Memorial fund

A donation of £375,000 was received from Brenda Garza in April 2022, with a further donation of £25,000 in 2025, to support an annual symposium in memory of Armando Garza Sada Sr. which will focus on an artist, or artists, that have been significantly underrepresented within art history. The fund is held as a permanent endowment and is being accounted for on a total return basis, with the investment return being used to fund the symposium.

Page: 27

Royal Academy Trust

Notes to the Financial Statements For the year ended 31 August 2025 (continued)

17 Analysis of restricted funds

2025
Heinz Architecture fund
17.a
Salaman-Seelig art fund
17.b
The Ivor Rey scholarship fund
16.a
Paul Mellon endowment fund
16.b
Anonymous donor fund
16.c
McAulay Scholarship fund
16.d
Armando Garza Sada Sr. Memorial fund
16.e
Greenham fund
17.c
The Starr Fellowship
17.d
Weiss fund
17.e
Burlington Project - Phase III
17.f
The Thorogood Smith Scholarship
17.g
James Paradise Annual Giving Fund
17.h
Royal Academy Schools Dunard fund
17.i
Exhibitions Founders Fund
17.j
Schools Founders Fund
17.k
Schools Scholarship fund
17.l
Total
2024
Heinz Architecture fund
17.a
Salaman-Seelig art fund
17.b
The Ivor Rey scholarship fund
16.a
Paul Mellon endowment fund
16.b
Anonymous donor fund
16.c
McAulay Scholarship fund
16.d
Armando Garza Sada Sr. Memorial fund
16.e
Greenham fund
17.c
The Starr Fellowship
17.d
Weiss fund
17.e
Burlington Project - Phase III
17.f
The Thorogood Smith Scholarship
17.g
James Paradise Annual Giving Fund
17.h
Total		 £
£
£
£
£
4,590,320
282,354
(180,000)
-
4,692,674
76,949
4,478
(7,000)
-
74,427
25,340
692
(14,532)
14,532
26,032
211,930
-
(211,930)
194,578
194,578
640,000
-
(640,000)
656,000
656,000
60,000
-
(56,000)
56,000
60,000
23,274
-
(23,274)
25,578
25,578
224,682
13,828
(8,700)
-
229,810
1,380,305
85,833
(39,600)
-
1,426,538
23,183
1,441
(680)
-
23,944
5,345,719
257,541
(500,000)
-
5,103,260
670,710
41,339
(25,000)
-
687,049
148,037
9,093
(6,000)
-
151,130
-
2,215,650
-
-
2,215,650
-
400,000
(400,000)
-
-
100,000
(100,000)
-
-
-
30,000
-
-
30,000
13,420,449
3,442,249
(2,212,716)
946,688
15,596,670
£
£
£
£
£
4,502,074
268,246
(180,000)
-
4,590,320
79,452
4,497
(7,000)
-
76,949
24,708
632
(14,532)
14,532
25,340
546,938
1,362
(525,000)
188,630
211,930
620,000
-
(620,000)
640,000
640,000
50,000
-
(50,000)
60,000
60,000
11,148
-
(11,148)
23,274
23,274
218,062
13,130
(6,510)
-
224,682
1,328,329
80,661
(28,685)
-
1,380,305
22,509
1,354
(680)
-
23,183
5,274,547
271,172
(200,000)
-
5,345,719
656,515
39,195
(25,000)
-
670,710
151,386
8,651
(12,000)
-
148,037
13,485,668
688,900
(1,680,555)
926,436
13,420,449
Balance at
2024
Balance at
2025
Income and
fund growth
in year
Utilised in
year
Unapplied
total return
from
endowments
Balance at
2023
Balance at
2024
Income and
fund growth
in year
Utilised in
year
Unapplied
total return
from
endowments

The Burlington Project - Phase III fund is invested with Sarasin in a Liquidity Fund. All other funds are invested with Partners Capital.

Page: 28

Royal Academy Trust Notes to the Financial Statements For the year ended 31 August 2025 (continued)

17 Analysis of restricted funds (continued)

a. Heinz Architecture fund

The Heinz Architecture fund comprises a major donation received in 1993 to support the development of the architecture programme of the Royal Academy. The trustees make a donation each year to support the costs of the programme.

b. Salaman-Seelig art fund

The Salaman-Seelig art fund was established in 2016 by a £71,550 legacy from Auriol Seelig. The purpose of the fund is to make an annual award to a 2nd year student of the Royal Academy Schools. It is anticipated that the award will be made for 12 consecutive years.

c. Greenham fund

The Greenham fund was established in 1992 through donations from trusts, private individuals and an auction of donated works. The purpose of the fund is to provide a three year bursary for a student of the Royal Academy Schools, selected by the Keeper of the Royal Academy Schools.

d. The Starr Fellowship

The Starr Fellowship was established in 1987, with subsequent donations in 1998, 1999, 2000, 2001 and 2004. The fund is used to support an annual fellowship for American nationals with a contemporary art practice with a bursary of £28,685 and to support the Royal Academy Schools general running costs that allow the fellowship to be offered.

e. Weiss fund

The Weiss fund was established in 2005 by a donation of £10,000 from Edna Weiss. The purpose of the fund is to make an annual award of £680 to a student of the Royal Academy Schools working in a figurative style.

g. The Thorogood Smith Scholarship

The Thorogood Smith Scholarship was established in 2022 by a legacy of £550,000 from Janet Smith. A further £85,748 was received in November 2022. The purpose of the fund is to provide a scholarship to one student of the Royal Academy Schools, with the investment returns being used to cover the cost of tuition and to provide an annual bursary to the student. If a suitable student can be found with the necessary talent, the scholarship will be given to a Mouth and Foot Painting Artist from the charity MFPA (registered charity number 328151).

h. James Paradise Annual Giving Fund

The James Paradise Annual Giving Fund was established in 2022 by a donation of £150,000 from James Paradise. The purpose of the fund is to provide two annual prizes of £3,000 each to two students of the Royal Academy Schools for their works in the annual Premiums show.

The Royal Academy Schools Dunard fund was established in 2025 by a donation of £2,082,336 ($2,760,000) from the Dunard Fund USA. The purpose of the fund is to support all activity areas and operational costs of the Royal Academy Schools.

k. Schools Founders Fund

The Schools Founders Fund was established in 2025 through donations totalling £100,000. The purpose of the fund is to provide revenue support to the Royal Academy Schools.

l. Schools Scholarship fund

Page: 29

Royal Academy Trust Notes to the Financial Statements For the year ended 31 August 2025 (continued)

18 Analysis of designated funds

The trustees have designated the funds detailed below out of unrestricted funds:

2025
General
a
Sir Roger de Grey Memorial Fund
b
Casson Award
c
Eranda Professor
d
Cheneviére Travel Award
e
Schools Portfolio Fund
f
Patricia Turner Award
g
The Pauline Sitwell Bursary Fund
h
Maintenance Fund
i
Total
2024
General
a
Sir Roger de Grey Memorial Fund
b
Casson Award
c
Eranda Professor
d
Cheneviére Travel Award
e
Schools Portfolio Fund
f
Patricia Turner Award
g
The Pauline Sitwell Bursary Fund
h
Maintenance Fund
i
Total		 £
£
£
£
1,903,444
(70,445)
117,351
1,950,350
164,073
(4,000)
10,248
170,321
409,930
(5,000)
25,924
430,854
177,624
(6,800)
10,936
181,760
197,449
(7,600)
12,155
202,004
178,006
(6,900)
10,954
182,060
407,414
(15,800)
25,071
416,685
483,486
(18,700)
29,757
494,543
2,542,240
(97,500)
202,790
2,647,530
6,463,666
(232,745)
445,186
6,676,107
£
£
£
£
1,844,942
(52,730)
111,232
1,903,444
158,014
(3,529)
9,588
164,073
390,975
(5,000)
23,955
409,930
172,414
(5,170)
10,380
177,624
191,651
(5,740)
11,538
197,449
172,784
(5,180)
10,402
178,006
395,456
(11,850)
23,808
407,414
469,292
(14,060)
28,254
483,486
2,438,890
(93,270)
196,620
2,542,240
6,234,418
(196,529)
425,777
6,463,666
Balance at
2023
Utilised in
year
Balance at
2024
Income and
fund growth
in year
Utilised in
year
Balance at
2024
Balance at
2025
Income and
fund growth

Page: 30

Royal Academy Trust Notes to the Financial Statements For the year ended 31 August 2025 (continued)

18 Analysis of designated funds (continued)

a. General

In 1998, the Charity received £1,359,212 from the Royal Academy in respect of several small trusts. These trusts represent funds donated in support of scholarships and prizes in the Royal Academy Schools; maintenance of the Royal Academy Collections; and the general purposes of the Royal Academy. The Charity Commission gave permission for these funds to be transferred to the Charity on the basis of the improvements to investment performance and administration likely to ensue. These funds have been treated as designated funds that have been set aside out of the unrestricted funds by the trustees for specific purposes.

b. Sir Roger de Grey Memorial Fund

The fund was established in 1996. Funds totalling £80,000 were raised between 1996 and 1998. These funds were then designated by the trustees to provide student maintenance grants for students at two independent institutions with which Sir Roger was associated: the Royal Academy Schools and the City & Guilds of London Art School. Sir Roger was President of the Royal Academy from 1984 to 1993 and Principal of the City & Guilds from 1973 until his death in 1995. These funds were invested on the understanding that annual maintenance grants would be made to each fine art school (split evenly between them).

c. Casson Award

The fund was created in 2001 in memory of Sir Hugh Casson. Funds totalling £107,000 were raised and these were designated by the trustees to establish a prize for drawing to be awarded during the Summer Exhibition in his name. The fund was increased in 2013 and 2015 through bequests of £88,482 and £20,152 respectively received from the estate of Mrs Anne Marjorie Crosthwait, which were earmarked to this fund in order to bring the value of the annual prize back to its original amount of £5,000.

d. Eranda Professor

The fund was created in 2001 to establish a professorship in the Royal Academy Schools. An initial donation of £120,000 from the Eranda Foundation was earmarked for investment by the Charity on the understanding that this would fund a professor in the Royal Academy Schools. Further funds of £20,000 were donated in 2012 by the Trustees of the Eranda Foundation.

e. Cheneviére Travel Award

The fund was created in 2001 to establish a source of funds to provide a travel bursary for a student in the Royal Academy Schools. Funds totalling £144,000, raised by the Cheneviére family, were earmarked by the trustees and invested on the understanding that a travel award would be made each year to a student in the Royal Academy Schools.

f. Schools Portfolio Fund

The fund was created in 2001. Funds raised from the sale of a print portfolio were earmarked by the trustees to establish a source of funds providing maintenance for students at the Royal Academy Schools.

g. Patricia Turner Award

In November 2001 the Charity received a bequest of £200,000, which was earmarked by the trustees to establish a fund to provide a grant to a graduating student in sculpture.

h. The Pauline Sitwell Bursary Fund

In May 2012, £250,000 from Pauline Sitwell's bequest to the Royal Academy, as a whole group, was designated by the Charity to establish the Pauline Sitwell Bursary Fund. The purpose of the fund is to provide an annual bursary award to assist students of the Royal Academy Schools with living costs. The annual award was set at £7,500 but is subject to annual review by the trustees of the Charity. The current level of the bursary is £14,060.

i. Maintenance Fund

The fund was created in 2004. Amounts raised from fundraising activities including the sale of print editions, and auctions have been designated by the trustees since 2004 to provide maintenance for students at the Royal Academy. In addition to investment returns, a total of £46,276 has been added to this fund during 2025 (2024: £51,041), arising from fundraising activities.

An annual donation is made from each designated fund to the Royal Academy in line with the wishes of each fund. This will continue until each fund has been fully drawn down.

Page: 31

Royal Academy Trust Notes to the Financial Statements

For the year ended 31 August 2025 (continued)

18 Analysis of designated funds (continued)

Analysis of net assets between designated funds
2025
General
Sir Roger de Grey Memorial Fund
Casson Award
Eranda Professor
Cheneviére Travel Award
Schools Portfolio Fund
Patricia Turner Award
The Pauline Sitwell Bursary Fund
Maintenance Fund
Total
2024
General
Sir Roger de Grey Memorial Fund
Casson Award
Eranda Professor
Cheneviére Travel Award
Schools Portfolio Fund
Patricia Turner Award
The Pauline Sitwell Bursary Fund
Maintenance Fund
Total
19 Analysis of net assets between funds
2025
Endowment funds
Restricted funds
Unrestricted funds:
Designated
Other
Total
2024
Endowment funds
Restricted funds
Unrestricted funds:
Designated
Other
Total		 Investments
£
£
1,950,350
-
170,321
-
430,854
-
181,760
-
202,004
-
182,060
-
416,685
-
494,543
-
2,601,254
46,276
6,629,831
46,276
Investments
Net current
assets
£
£
1,903,444
-
164,073
-
409,930
-
177,624
-
197,449
-
178,006
-
407,414
-
483,486
-
2,441,789
100,451
6,363,215
100,451
Investments
£
£
22,007,024
-
15,596,670
-
6,629,831
46,276
11,892,240
1,339
56,125,765
47,615
Investments
Net current
assets
£
£
22,139,569
-
13,420,449
-
6,363,215
100,451
10,242,468
88,779
52,165,701
189,230
Net current
assets
Net current
assets		 £
1,950,350
170,321
430,854
181,760
202,004
182,060
416,685
494,543
2,647,530
6,676,107
Total net
assets
£
1,903,444
164,073
409,930
177,624
197,449
178,006
407,414
483,486
2,542,240
6,463,666
£
22,007,024
15,596,670
6,676,107
11,893,579
56,173,380
Total net
assets
£
22,139,569
13,420,449
6,463,666
10,331,247
52,354,931
Total net
assets
Total net
assets

Page: 32

Royal Academy Trust Notes to the Financial Statements For the year ended 31 August 2025 (continued)

20 Financial instruments

The financial statements include the following in respect of items held at fair value at 31 August:

Financial assets measured at amortised cost
Financial liabilities measured at amortised cost
Financial assets measured at fair value through the SOFA		 2025
£
43,070
96,365
56,125,765		 2024
£
36,566
124,091
52,165,701

21 Related party transactions

The Charity donated £2,773,531 (2024: £1,877,084) to the Royal Academy to support various campaigns. At the year end £66,979 was outstanding and included within creditors (2024: £54,777).

R.A. Enterprises Limited made a donation of £31,400 (2024: £35,609) to the Charity for future funding of the Royal Academy Schools. At the year end £31,400 (2024: £35,609) was outstanding and included within debtors.

The trustees donated a total of £1,255,100 (2024: £nil) to the Charity during the year. All of these amounts were in relation to the Founders Fund campaign of which £1,020,000 were unrestricted funds and £235,100 were restricted donations for Royal Academy revenue support (£200,000 for exhibitions and £35,100 for RA Schools scholarships).

Page: 33