Charlty reglstrallon number 1077501 THE DISCHMA CHARITABLE TRUST ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 310ECEMBER 2023 THE DISCHMA CHARITABLE TRUST CONTENTS Legal and admiThstrabve infomats.on Trustees, reph)rt Independent examiner's feFL)rt Statern8nt of financial acb'viti88 Balan¢e sheet Notes to the accounts 10-16 Investment xhedule 17-18 THE DISCHMA CHARITABLE TRUST LEGAL AND ADMINISTRATIVE INFORMATION Trustees Ms Selina RO￿rtSOn Ichairl MsAana Robertson Mr Ethvard Robertson Mrs Lorna Rotertson fimmis J.P. Sir Sirnon Robertson Laity Virginia RoiErtson Ms clementh.ne Robertson IAKp)inled 20 December 20231 Secretary Rathb)nes TiLL8t Company ￿rnited Chailty nUM￿r 107T501 Prlnclpal offlce 30 Gresharn Street Londor EC2V 7QN Independent examiner Kery Robert5 TEP FMAAT MCSI RalhtrKJnes TILL81 Company ￿rnrte￿ Port of LiverF*)d Buildng Piér Head Liverpool L3 1NW THE DISCHMA CHARITABLE TRUST TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEhlBER 2023 The Trustees wesent th*r annual le￿rt aThl financial statements for the year ended 31 December 2023. The accounts have teen prepared in accordance Y￿th the aecounb.ng p)liaes set out in note 1 of the accounts and ¢omrJy with the Charibes Act 2011 and 'A¢counting and Reporting by Charib'es. Statement ol Recomrnended Practice apklicatAe lo charibes preparing their accounts in a￿ordaTrce with the Financial Reporb'ng Standard applicaLle In the UK and Republic of Ireland IFRS 1021 leffet*"ve 1 January 20191,. The Financial Stslements also COm￿Y Yrfith the Charity's governing d¢xumenL Obj'ectives and activities The Dischma ChaiilatAe Trust was created by Deed dated 91h April 1999 The Trustees shall hold the caplal the income of the Tiusl Fund upon trust lo apply income and. as far as may be necessary, the capitsl loi or towards such charitst4e purposes aThd to make donalj'ons to such charitst4e tr￿dIeS or Institutior￿ at such t'm86 and In such manner a5 the Trustee5 may, in their at6dule discretion, think fil The Trustees have eomF4ied wth the duty in section 17 01 the Charib"es Act 2011 to have due regard to the public benefit guidance published ty the Charibes Commission. Maln xtlvities The Chanty was created ty the Se￿ernent Deed to rnake donats"on5 to such charitatle bo¢* or insts"lub"on that the Trustees deemed fitbng. During the year under review the Trustees have made thjnalion payrnents to 35 chaiitable oiganisaD"ons that cover a wde sFectrum of such bodes The differing tyFes ol charitable organisats'ons that have benefited during the yeal have t*en t¥oadly broken down under a nUM￿r of categories as detailed in note 7 of the accounts. Grant maklng pdlcles The Trustees meet h￿1 yearty to reviow apF4icab"on5 for lunding. Only successful apF4icants are nots'fied of tho Trustees, decision. 1118 the Trustees, aim lo grow the fund in real lenns over ts.me bul also to thstnbute or F4edge up to 3% of the market value of the investrnent FM)rtfolio. less administrabve costs, on an annual basis to worthy causes. Th8 annual Income arising Is used first. wlh any balance required to make up the 3% taken from cakitsl lunts. As a result ol this policy, it is likely that the amount availat4e to the Trustees for distribution each year may fluctuate depending on the annual Ferformance of the Investment pthlio. Thé Trustees have elected to concentrate (although not exdusvelyl their current donation$ pdicy on charities concerned wth Educatson, Arts and Cutture. Cortservation and Hurnan and An'ma Welfare The Trustees, when considenng ￿na￿OnS to UK based chanles tend to lavour those charroes which mainly operate In London and Hampshire. The Trustees do not norrnalty support charth.es which carry out meocal research. During the year under review. the Trustees made a Iota cl 40 donab"on$, as detailed in n￿e 16 of these accounts The analysis ol the donations showng the Vario￿ types of eharibes SUFPOrted are also sh¢)wn in note 7 of these accounts. Achievements and performan The Trustees have made grant payments lo chaiities during the year that have totalled £135,280. This showed a decrease of £25,220 as compared ￿th the previous year when they made donations lolalling £160,5W This decrease was the result of the Trustees, late deosion to rnake commitrnents to donatiorB In the financial year. The orignal am was to increase donats.ons and use some of the charity's caprtal reseNe which has not been fvlly distributed in earlier years. The Trustees ￿11 re¢bfy this in the year to 31 December 2024. THE DISCHMA CHARITABLE TRUST TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEhlBER 2023 Financial review Totsl Incoming resources were £49,0351£39,154 in 21Tf21. wth £151.4861£176,772 in 20221 ￿Ing committed lo chanlable ath'vitses of which a credit of £0 Ichaige of £189 in 20221 related lo costs of raising funds £16,2L 1£16,272 in 20221 governance costs. The total movernent of resources in the year also indude the realised gain in the year £1,3C6 Iloss £14,403 In 20221 and an unrealised gain based upon the rnarket Value of the investments al the year end ol £e63,843 (loss £1,234,339 in 2tr221, resutb.ro in net inflow of resources of £562,698 loufflow ol res¢urees £1,386.171 In 20221. Reserves The charity's reserves are in a managed investmenl kxirtfolio. The Intslees airn to make annual donations in the regon of £150,000 per annum. The donab'ons and running costs are all funded from the managed porffolio. AS the Iruslees are subject lo the effects ol vdth.lity in Income due to stock rnarkets and the overall economy, the p)rtlolio Is rnonilored and reviewed on a regular basL8 lo ensure that the Investmen15 are generating sufficient income As of 31 December 2023. the bdance held on unreslricled rese￿e5 was £7,201,3*. Plans lor the luture The Trustees do not envisage any further SI￿￿1can1 changes lo their ams and objeth"ves, they intend to continue supwrting a lewer numter of ehanbes al an increased level. Investment pollcy The Dischma Charilat4e Trusts investments are wed)minanUy invested on a discrebonary basis by James Hambio and Partners through the Sardasca Fund The Trust's hd(Ing in the Sardasca Fund represented over 80.kn of the Trust's Investrnents as at 31st D￿ern￿er 2023. There is then a holthng in the ￿ale Rock FlaLtship Fund 9fted by Sir Simon Robertson to the Charf(able TrLL81 in 2019, c.150A of the Chantsble Trusfs assets at the end of Oeeember 2023. This holding was reduced in early 2024 10 increase the holding in Sardasca and to hold as cash for future donat'ons. Finally, there is a laiger cash balance Invested pvethjrninantly In the BlackRock Sterfing ￿"￿iditY Fund lo cover future charitable donats.ons as wdl as a fange ol illiquid assets sdecled by the previo￿8 Invesknenl manager, Slonehage Fleming, whid) are redueing over b"me. THE DISCHMA CHARITABLE TRUST TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEhlBER 2023 Investment perfofmance Having fallen 9.5°A in 2022 ami(tst Inflatson fears and iising Interest rales, the Sarda5ca Fund rose 8.8% in 2023 as those fears ebbed and economic growth rxoved more robLk8t than expected As a reminder, the core of the Fund is invested in a cc41ection of high walrty, global comF4nies. Investing in these companies is a sound way lo protect and grow the value of the Fund after the effects of Inflats"on over p¥olonged penod ol b"me. There Is then a balance of tslher assets sueh as bonds, atternatves and cash to piovide t¥ote¢b'on vthen equity markets have setbacks Pleasingly, most ol the Fund's equty holdnLS F¢rformed v*ll in absc4ute terms, induding a wde range of mpanies from Aphat¢l to UK retsiler Next There were limited notatAe detractots such as Charles Schwab which wa5 caught in the US bankj.ng turmoil earfy In the year. However. the Fund's equity holding5 struggled to keep up wlh a ￿0b31 equity market whose returns were concentrated in few US companies. Sutrx81anlially all of the relabve underFtrfoimance ol the Fund's equity hc40ngs was due to the lack of ownership of five companie8'. ApF4e, Nvid'a, Amazon, Meta and Tesla. The Fund's bond pOs￿"0n8 were a modest p￿￿Ve eonlributor to performance while the Fund's gold holdirrtJ rose 7.5% in sleiling terms. The Fund entered the period bwth 64°A of its assets invested in equTb"es and this was seled.vdy increased lo 68% Most ol the increase was through addibons to exisbng positions tr*Jt a srnall number of new pO￿￿"0nS were estst4ished such as in Progressive, the US auto i￿Urer. Elsewhere, the Fund's fixed interest exp)sure was rebuik as mofe attracb've yields have become availatle. The Fund's bond allocabon rose to a little over 140A which compares lo a low In 2021 01 c.80h ol the Fund wlh holdings still exclusNely in UK and US government-iwed debt. The Fund'8 atteinative, gc4d and cash were reduced to enatle the inc¥eased exp)8ures elsevthere. Outside of the Sardasca Fund, the Charitatle Trust has a siZa￿e holding in the ￿ale Rock Flagship Fund. After dfficult 2022, the Whale Rock Flagship Fund rose 25% In sterfing terms In 2023 In the surnrnei of 2023 il was agreed to halve the holding given Ils large sze relabve lo the Chantstle Trust's overall assets. This sale was instructed in 2023 and comkleled in earfy 2024. In December 2021 the Charitable Trust received c £300.000 ol proceeds from the sae of the Stonehage Flerning Global Private Captal Funds. These proceeds were held in cash to cover fijture chanta￿e donatiorts As at 311t December 2023, c £200,OJO ol cash was held predominanly invested in the BlackRock Sterling Liquidity Fund to lake advantage ol higher Interest rates This provides liquithty io cover broadly one year of chanlable donatio at c.3'h ol the Lhanlat4e I rust's current value. 11 Is Flanned that a wgnfftcant prowrtion ot the Vvhale F