THE DUCHY OF LANCASTER JUBILEE TRUST Registered Charity Number 1085881 REPORT OF THE TRUSTEES AND ACCOUNTS FOR THE YEAR TO 31st MARCH 2024
THE DUCHY OF LANCASTER JUBILEE TRUST FOR THE YEAR TO 31st MARCH 2024 CONTEKrs LEGAL AND ADMINISTIIATIVE INFORMATION REPORTOFTHE TRUSTEES INDEPENDENT AUDITORS, REPORT TO THE TRUSTEES STATEMENT OF FINANCIAL ACTIVITIES BALANCE SHEET 10 CASH FLOW STATEMENT 11 NOTES TO THE ACCOUNTS 15 STATEMENT OF INVESTMENT PRINCIPLES
THE DUCHY OF LANCASTER JUBILEE TRUST LEGAL AND ADMINISTRATIVE INFORMATION Trusteas Sir James Leigh-Pemberton CVO Nalhan Thompson CVO Hugh Bullock Sir Mi¢ha81 Stevens KCVO Lord Downshire Sonia Tolaney KC Lucy Macdonald Jill May Alistair Elliott Alastair Martin CVO Secretary Hugh BrucE-Watt Registered Office 1 Lancaster Place Strand London WC2E 7ED Charlty number 1085881 Auditors Saffery LLP 71 Queen Ifictoria Stréét London EC4V 4BE BankerJ Coutts & Co. 440 Strand London WC2R OQS Inveslmènt manag6r Cazenove Capital 1 London Wall Pla London EC2Y SAU Sollc6tor8 Farrer & Co. LLP 66 Lincoln's Inn Field5 London WC2A 3LH
THE DUCHY OF LANCASTER JUBILEE TRUST REPORT OF THE TRUSTEES FOR THE YEAR TO 31st MARCH 2024 1. ObJe¢tive$ of tho Trust The objectives of the Trust are.. The mainlenance and preservation for the public benefit of any monument, castle or other propety of historical or architectural interest in the Mcinity of the Duchy lands. The advancement of the Christian faith by maintaining and supporting the King's Chapel of the Savoy and clergy whose limngs are within the gift of the Duke of Lancaster. Foll¢)wing the death of the Qu&n on the 8th September 2022 The Queen's Chapel of the Savoy is now known as the King's Chapel of the SavDy. Such other charitable purposes as the Trust895 think fit. Applications for grants should be addressed to the Secretary. Donations from His Majesty The "ng in Right of His Duchy of Lancaster may be given to the Trust with the request that they are. for the time being, invested to provide an income to support the objects of the Trust The Trustees have accordingly placed the donations received into a separate investsnent fund, the Expendable Endowment Fund. Donations of £746,904 have been pledged in the year of which £532,749 has been received and £214,155 1$ in debtors at the year ended 31 March 2024 (2023., £nil). The Truste8s have refeed to the guidan contain8d in the Charity Commission's general guidance on public benefit when reviewing the aims and objectives and in planning the ftjture aclivities. In pailcular the Trustees consider how planned donalions will contribute to the aims and objeGtives théy have set. Th• Trustees nsider that the current policy for making donations delivers public benefit. Details of thè obj8CtiV8s which form thè basis of this policy are given above. 2. Grant making policy The Trust has established its grant making policy to achieve its objècts for thè public benefit. The Trust invites 8pplicats.ons for grants that wll meet the stated objéctives of the Trust and these will be assessed on a merit basis SS to value for mon8y and impact in achieving thè aims of the Trust. 3. Achlevements and perforniance The Trustees have reviewed and are content that the Objectiv of the charity as highlighted have been achieved during the course of the year. The Trustees are content that the income generated ovér thè course of the year has been utilised in accordance with the objectiv8s. During the year thé Trust made S grants totalling £351,446 (2023.. 5 grants £351.446) as set out in Nots 5 to the financial statements. This indudes a grant for £350,000 to the King's Chapel of the Savoy- this has been spent supporting the running and upkeep of the Chapel and dergy. The Trust continues to fijlfrl its objects through its grant-making policy and it is the Trustees. intention to continue doing so. The Trustees aim is to gift sufficient funds to the King's Chapel of the Savoy to allow the Chapel to meet any shortfall in its fvnding and this has been achieved in the year. The investknent aim is for the portfolio to generate InMe of circa £500,000. whilst preserving capital value in real temis. Due to the performance of thè markets in the year the portfolio has rnet the inwme target. Financlal revlew Investments have been acquired wthin th8 powers set out in the Trust Deed and in aGcordance wth the statement of Investrnent Prinaples set out on pages 15 and 16. Over the year, the Trust's investment ass@ts increased in value by £1,588,565 {6.1 %). During the year the investrnent income genorated was £672,320 (2023 .' £576,026).
THE DUCHY OF LANCASTER JUBILEE TRUST REPORT OF THE TRUSTEES FOR THE YEAR TO 31st MARCH 2024 5. Rlsk management The principal risks faced by the Trust lie in the perfornan of investmènts and operation21 risks from ineffective grant making and the capacty of the Trust to make effective grants. The Trustees consider variability of investment returns on the peTmanent endoMnent to constituts the charity's major financial risk. This is mitigated by retaining expert investment managers and Stanhope Capital as our investment consultants who regularly review the risk profile of the portfolio. The operational risk from ineffective grant making is mitigated by the fact that the main recipient of the Charity is well understood by the Trustees who are able to assess the effectiveness that the grant making has from the impact and benefil that the grants have. Smaller grants are assessed on merit on an individual basis and wll only be granted if the Trustees undetstand how these funds will benefit the recipient 6. Reserves The Trustees, policy is to distribute invesknent income received and to maintain a reserve in the General Fund. At the year end the balancé of the General Fund was a surplus of £1.504,665. The Expendable Endowment fund had a balance of £27,770,219 at the year end. Although not fomiing part of main reserves, the Trustees do have the power to transfer funds to the Unrestricted Fund to meet shortfglls in funding when required. 7. Plans forfuture perlod5 The plan for future periods is to satisfy the charitys objectives and to maintain an inv8Stment portfolio in accordanc8 with thè total retum objective as agreéd by the Trustees as s8t out in the Slalemenl of Investmènt Principles. 8. Structuro, #overnance, management and administrallve datsll8 Goveming Instrument Th6 Duchy of Lan¢asl8r Jubilee Trust was conslituted on 15th Marth 2001 under 8 declaration of trust. Tha registered tharity number is 1085881. Trustees andprincipal officers Trusteès are appointsd by the Receiver General of th8 Duchy of Lancaster. The Trustees during the year ointed 12 September 2023 Rati Sir James Leigh-Pemberton CVO Sir Alan Reid GCVO Nathan Thompson CVO Hugh Bullock Sir Michael Stevens KCVO Lord Downshire Sonia Tolaney KC Lucy Macdonald Jill May Alistair Elliott Alastair Martin CVO 4 July 2023 Secr8tsry'. Hugh Bruce-watt The Trustees meet 1c8 a year to discuss the affairs of the Charity. The day to day administration of the Trust is delegatsd to the staff of the Duchy of Lancaster through a SeN1 lev81 agreement that is rewewed annually. Trustees are provided with 8déquate support and training wheré training needs are identifpd to allow them to effectively conduct their role.
THE DUCHY OF LANCASTER JUBILEE TRUST REPORT OF THE TRUSTEES FOR THE YEAR TO 31st MARCH 2024 8. Structurg, govornance, managoment and admlnhtrallve detalls (continued) Administr81ion Administrab'v8 support for the charity is provided by The Duchy of Lancaster from its offIS at 1 Lancaster Pla. Strand, London WC2E 7ED Adviso Bankers.. Coutts & Co. 440 StrarKJ London WC2R OQS Solicitors.. Farrer & Co. LLP 66 Lincoln's Inn Field5 London WC2A 3LH Investment manager.. Caz8nov8 Capital 1 London Wall Plac8 London EC2Y SAU Auditors.. Saffery LLP 71 Queen WIGtoria Street London EC4V 4BE The Trustees are responsible for preparing the Trustees, Report and the financial statements in accordance with applicabl8 law and United Kingdom Accounting Standards {Unit8d Kingdom Generally Accepted Accounting PraGti¢e). The18w applicable to charities in England & Wales requirès the Trustees to prepare financial ststements ft)r each financial year which give a true and fair view of the stats of affairs of the charity and of the incoming resOUS and appliGation of résources of the charity for that peri3. In preparing these financial statements, the Trustees are required to= select suitable accounting policies and then apply them consistèntly- observe the methods and principles in the Charities SORP., make judgements and estirnates that are reasonable and ptudent., state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements.. prepare the financial statements on the going concern basis unless il is inappropriate to presume that. the charity will continue in operation. The Trustees are responsible for keeping proper accounting records thal disclose with reasonable accuracy at any lime the finanGial position of the charity and enable them to ensure that the financial statements comply Vth the Charities Act 2011, the Charity (AGcounts and Reports) Regulations 2008 and Ihe provisions of the trust deed. They ar8 also responsible for safeguarding thé assets of the charity and hence for taking reasonable Steps for thè prevention and detection of fraud and other irregularities. The Tnjstees have undertaken a r8vi&w of major risks facing the charity and taken stéps to mitigate th8m. Approved by the Trustees on Ibloq l and sign8d on their behalf by.. Sir James Leigh-Pemberton CVO Trustee
THE DUCHY OF LANCASTER JUBILEE TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES Opinion We have audited the financial statemenls of The Duchy of Lancaster Jubilee Trust for the year ended 31 March 2024 which comprise Statement of Financial Activilies, Balance Sheet, Cash Flow Statement 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 Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland {United Kingdom Generally Accepted Accounting Pra¢ti¢e). In our opinion the financial ststements- give a true and fair view of the state of the charity's affairs as at 31 March 2024 and of its incoming resources and application of resources for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practi. and have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinion We ¢onducted our audit in accordanc£ with Intemational Stsndards 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 requirem8nts 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 accordan¢e with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriale to provide a basis for our opinion. Conclusions relating to going ¢oncem In auditing the financial statements, we have concluded that the trustees, use of the going concem basis of accounling in the preparation of the financial ststem8nts is appropriate. Based on the work we have perf0Md, we have not identified any material uncertainties relating to events or nditions that, individually or collectively, may cast significant doubt on the chari$ 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 responsibililies and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other Infornvatlon The trustees are responsible for the other information. The other infomiation Comprises the information included in Ihe annual report, oth8r than the finanaal slatements and our auditorfs report th8reon. Our opinion on the financial statements does not cover the other information and, except to the extent othemise explicitly stated in our reporl, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other infomiation and, in doing so, consider whether the other information 1$ materially inconsistent wilh the financial statements or our knowledge obtained in the Course of the audit or otheise appears to be materially misstated. If we identify such material inconsisten¢ies or apparent material misslatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we hav8 perfomed, 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. Matt8rs on which we aro requlred 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 require us to report to you rf, in our opinion: the inforniation given in the Trustees, Annual Report is inconsistent in any material respect with th8 financial statements; or the charity has nol kept sufficient accounting records., or the financial statements are not in agreement with the ac£ounting records and retums. or we have not received all the information and explanations we require for our audit.
THE DUCHY OF LANCASTER JUBILEE TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES contlnued Responslbllltles of trustses As 8xplain8d more fully in the Truslees, Responsibilities Statement set out on page 4. 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 detemiine is necessary lo 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 abilty to conlinue as a going concem. disclosing. as applicable, matlers related to going concern and using the going concem 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. We have been appointed as audilors under the Charities Act 2011 and report in accordance with regulations made under that Act. Our objectives are to obtain reasonable assuran at)out whether the financial statements as a whole are free from material misstatement. whether due to fraud or error. and to issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance. but is not a guarantee that an audit conducted in accKJrdance with ISAS (UK) will always detect a matetial misstatement when it exists. Misstatements can arise from fraud or error and are considered material rf, individually or in the aggregate, they.could reasonably be expeded to influence the e¢onomic decisions of users taken on the basis of these finan¢ial statements. IegUlaritIes, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respecl of- irregularities, including fraud. The specrfic procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below. Identifying and assessing risks related lo irgUIaritieS. We assessed the susceptibility of the charty's financial statements to material misstatement and how fraud might occur, including through discussions with the trustees, discussions within our audit team planning meeting, updating our record of intemal controls and 8nsuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations thal are of significance in the wnt8Xt of the charity by discussions with trustees and updating our underslanding of the sector in which the charity operates. Laws and regulalions of direct significance in the context of the charity include the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and guidan issued by the Charity Commission for England and Wales. Audit response to risks identified.. We considered the exlent of compliance with these laws and regulations as part of our audit p)CedureS on the related finanaal stslement items including a review of financial statement disclosures. We reviewed the charity's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the charity's policies and procedures for compliance with laws and regulations with members of management responsible.for compliance. During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by lesting the appropriateness of journal entries and identifying any significant transactions that were unusual or OLrtside the normal Gour5e of business. We assessed whether judgements made in making aGcounting estimates gave rise to a possible indication of management bias. At the completion stag8 of the audit, the engagement partnerfs review in¢luded ensuring thal the team had approached their work with appropriate professional scepticism and thus th8 capacity to identify non-compliance wilh laws and regulations and fraud.
THE DUCHY OF LANCASTER JUBILEE TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES continued There are inherent limitations in the audit pro¢edures de$Ibed above and the further removed non- compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. 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.or klaudito res on ibiliti8s. This description forms part of our auditors, report. Use of our report This report is made solely to the charity's trustees, as a body, in accordance with part 4 of the Charities (A¢¢ounts and Reports) Regulations 2IXI8. Our audti work has been undertaken so thal we might state to the trustees those matters we are requir8d to state to them in an auditor's report and for no other puoSe. To the fullest extent pemiitted by law. we do not accept or assume responsibilty to anyone other than the Charity and the trustees as a body, for our audit work, for this report, or for the opinions we have formed. mie Younger Saffery LLP Chartered Accountants Statutory Auditors 71 Queen Victoria stet London Date: Saffery LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
THE DUCHY OF LANCASTER JUBILEE TRUST STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR TO 31st MARCH 2024 Untestricted Fund Expendable Endowmgnt Fund Total 2024 Total 2023 NotsE Incomo and gndowrngnts from: Donations Investments Total 746,904 746,904 672,320 1,419,224 672,320 672.320 576,026 576,026 746,904 Expendire on: Raising Funds Charitable activities Total 104,111 104,111 363,052 467,163 99,665 360,601 460,266 363,052 363,052 104,111 Net gains Illosses} on investrents Net income 1,666,677 2.309.470 1,666,677 2.618.738 53,171 62.589 309.268 Transfer beeen funds 506,750 506,750 Net mov¢mont in funds 816.018 1.802.720 2,618,738 Reconciliation of funds: Total fvnds broughl fomard 25.967 499 26 656 146 26 593 557 Total funds carried forward 1,504,665 27,770,219 29,274,884 26,656, 146 STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR TO 31st MARCH 2023 Unrestricted Fund Expendable Endowment Fund Total 2023 Notes Income and endowments from: Donalions Invesknents Tt)tal 576.026 576,026 576.026 576,026 Expenditure on: Raising Funds Charitable adivities Total 99,665 99,665 360,601 460,266 360,601 360,601 99,665 Net (l¢)sses} on investments Not in¢omoll•xpondlturo 53,171 152,836 53,171 62,589 215,425 Transfer between funds Net movement in funds 215.425 152,836 62,589 Reconclliatlon of funds: Totsl funds brought forward 473.222 26,120,335 26,593,557 Total funds ¢arriod fornard 25.967 499 26656 146 The notes on page$ 1110 14 form part of these accounts.
THE DUCHY OF LANCASTER JUBILEE TRUST BALANCE SHEET AT 31st MARCH 2024 2024 2023 Notes Flxed Assets Investments 27.556,064 25,967 499 Current Assets Debtors Cash and deposits 10 228.451 1.522,249 1,750.700 1.757 692,410 694, 167 Creditors: amounts falling du• within one year Accruals Net Current Assets 12 31,880 1718,820 688.647 Not Assets 29,274,884 26 656, 146 Capital Fund Expendable Endowment 13 27.770,219 25,967,499 Income Fund Unrestricted General Fund 13 1,504,665 688,647 29,274,884 26,656,146 Approved by the Trustees on l o(oq Ico£4 and signed on their beha by. Sir James Leigh-Pemberton CVO Trustee Registered Charity Number 1085881 The noles on pag8s 11 to 14 fomi part of these accounts.
THE DUCHY OF LANcTER JUBILEE TRUST CASH FLOW STATEMENT FOR THE YEAR TO 31st PMRCH 2024 Total 2024 Total 2023 Notes Net ¢ash Inflow l (outhowl from operating a¢tiviti*s 14 157,519 361,435 Cash flows from investing activities Dividends Interest 637,162 35,158 573,479 2,547 Net ¢ash inflow from Inve8tlng activitiès 672,320 576,026 Change in cash and cash equivalents Iri the year 829.839 214.591 Cash and cash equivalents •t $tsrt of year 692,410 477.819 Cash and rAsh equivalents atend ofyear 1,522.249 692,410 Cash Comprfsos: Cash at bank 1,522.249 692.410 The notes on pages 11 to 14 fo part of th8S8 accounts. 10
THE DUCHY OF LANCASTER JUBILEE TRUST NOTES TO THE ACCOUNTS FOR THE YEAR TO 318t MARCH 2024 1. Accounting Poli¢1 (a) Basis of Accounting The finanaal ststements have been prepared in accordance with the Ststement of Recommended Pra¢ti¢e: Accounting and Reporting by Charities preparing their accounts in acCOrdanr with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland IFRS 1021 issued on 16 July 2014, the Financial Reporting Standard applicable in the United Kingdom and Republic of Iland IFRS 1021, the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015. The Trust constitules a public benefrt entity as defined by FRS 102. The trustees consider that the are no m*erial uncertainties aboLrt the Trust's ability to continue as a going concem. Th• most significant key assumptions that affect items in the accounts are the carrying value of assets held by the Trust and the level of investmenl retuin due to th8 performance of investment markets (see the investrnent policy and perfomance and risk management sections of the trustees, annual report for more infom)ation). The functional currency is Sterling. Monetary amounts in these financial ststements a rounded to the nearest £. {bl Signifant judgements, key assumptions and estimates Accounting estimates and judgements are continually evalualed and ar• based on past experience and other factors, including expe¢tstions of future events that are believed to be reasonable under the circumstsnce$. The Duchy makes estimates and assumptions Conrning the fvlure. The $Iting accounting estimates could, by definition, differ from the actual outcome. There are no estimates and a$sumption$ that have a risk of ¢ausing matsrial adjustment to the carrying amounts of assets and liabilities within the next financial year. (c) Incom8 Oonations are accounted for on an a¢¢ruals basis. Interest from banks and dividends are accounted for on an a¢¢ruals basis. (dl Grants Grants a a¢¢ounted for when the intention to make the payment is communicated to the nefiCiary. If there are condibons attached to the payment then the grant is accounted for once the conditions are no longer within the control of the Twstees. {e) Govemants costs Goveman¢e costs comprise costs incurred in Trust administration and complianc8 wilh regutatory requiremenls. {Q Taxation The Trust Carries on aclivitios which are exempt from corporation tax and income tax. The Charity suffers Value Added Tax which is included with the expenditure to whi¢h tl relates. Ig) Fixed Asset Investments FIX Asset Investments are stated in the Balaft Sheet at the quoled market valuation at the year end. (h) Expendable Endowment Fund Donations from the Duchy of Lancaster are invested to provide an income from which grants may be made in accordance with the r85eNes policy Set out in the Report of the Trustees.
THE DUCHY OF LANCASTER JUBILEE TrUST NOTES TO THE ACCOUNTS FOR THE YEAR TO 31st MARCH 2024 2. Donations 2024 2023 Hi5 Majesty the King IHer Majesty The Queen in Right of His l Her Duchy of Lancaster 746.904 3. Investment incomo 2024 2023 Div#Jends Bank interest 637,162 35,158 672,320 573,479 2,547 576,026 4. Raising Funds 2024 2023 Investment Manag8m8nt Fees 104,111 104.111 99,665 99,665 5. Charitsble activities Grants to Inslitutions Grants to Individuals 2024 2023 The King's Chapel of the Savoy Other grants Governance ¢08ts (see Note 61 350,000 1,196 11,606 362,802 350,000 1,448 11,608 363,052 350,000 1.446 9, 155 360,601 250 250 A total of 5 grants were paid12023.. 51 induding 1 to an individual for £250 {2023.' 1 for £250)- 6. Govemance costs 2024 2023 Auditors fees- for audit Other administration costs 5,880 5,726 11,606 5,520 3,635 9, 155 The administration of the Trust is managed by the Trustees and the oflice of the Duchy of Lancaster. The Duchy of Lancaster Jubilee Trust contributed £4,200 during the year (2023: £3.6001 to the Duchy of Lancaster towards these administration costs. 7. Trustee and Stsff Costs None of the Trustees recgived any mUneratiOn or expenses during tho year (2023.. £nill. The charity has no directly employed staff. 12
THE DUCHY OF LANCASTER JUBILEE TRUST NOTES TO THE ACCOUNTS FOR THE YEAR TO 318t MARCH 2024 B. Invostments 2024 2023 Authorised unit Irusts.. Cazenove Newton 27.556.064 25,967,499 25,967,499 27,556,064 The historic cost of investments at 31st March 2024 was £27,670,659 (2023: £19,538,850}. The significance of financial instruments to the ongoing financial sustainability of the Trust is considered in the Trustees, Annual Report. g. Roconciliatlon of movement of investments 2024 2023 Auihorised unit trusts.. Market value at 1st April 2023 Management fee Gains l (Losses) in value of investments Market value at 31st March 2024 25,967,499 (78,112) 1,666,677 27.556,064 26. 120.335 (99.665) (53, 171) 25,967,499 All investments are in authorised unit trusts. Newlon charges investment management fees of 0.4% per annum whith are taken from Capital, except the linal quarter. Following the move in the portfollo lo Cazenove these were settled by cash. 10. Debtors 2024 2023 Donations from His Majesty the King IHer Majesty The Queen in Right of His l Her Duchy of Lancaster Deposit Interest 214,155 14,296 228,451 1,757 1,757 11. Relatsd Parties Certain of The Duchy of Lancaster Jubilee Trust's expenses are incurred initially by the Duchy of Lancaster and then recharged lo the Trust. The arnount of such expenses relating to the year ended 31 st March 2024 was £7.01012023: £4.620). Donations from His Majesty The King in Right of His Duchy of Lancaster may b8 given to the Trust with the qUest that they are, for the time being, invested to provide an incom8 lo support the objects of the Trust. The Trustees have accordingly placed the donations received into a separate investment fund, the Expendable Endowment Fund. Donations of £746,904 have been pledged in Ihe year of which £532.749 has been r1Ved and £214,155 is in debtors at the year ended 31 March 202412023.. £nil). 12. Accruals 2024 2023 Investment Management Fees Audit 26,000 5,880 31,880 5,520 5,520 13
THE DUCHY OF LANCASTER JUBILEE TRUST NOTES TO THE ACCOUNTS FOR THE YEAR TO 318t MARCH 2024 13. Nel assets by fund 2024 2023 Unrestricted General Fund Unr8Strict8d Gene1 Fund Expendable endowment Expendable 8ndowm8nt Investments Cuent assets Current liabilities Nel Ass8ts 27,556.064 214.155 25.967.499 1.536.545 31,880 1.504.665 694.167 5,520 688,647 27.770.219 25,967,499 During the year there was a transfer of £506,750, between the Expendable Endowment Fund and the Unreslrlcted General Fund {2023 = £nil). 14. Roconclllatlon of net Income l (expendlture) to net cash oufflow from operatlng actlvltles 2024 2023 Net income as per statement of financial activilies Adjusted for: Net lossesl (gains} on investments Investment income Investment Management fees Increase in receivables Increase in payables Nel cash oufflow from operaling activities 2.618.738 62,589 {1.666.677) (672,320> 78,112 (226,694) 26,360 157.519 53,171 (576,026) 99.665 (1, 734) 900 361,435 14
THE DUCHY OF LANCASTER JUBILEE TRUST STATEMENT OF INVESTMENT PRINCIPLES Background and purpose of portFollo Duchy of Lancaster Jubilee Trust was constituted in 2001 to fund charitable USes, particularly the maintenance of historic buildings within Duchy estates. Investment obje¢tlves The primary objective of the Trust's investment portfolio is to provide an increasing distributable income while maintaining the real value ofthe Trust's assets over the long term. Liquidity requirement There is no requirement to hold a specrfic proportion of assets in cash or other short term asset classes but all investment should be in relatively liquid vehicles. EthirAI consideratlons There are no specific Gonstraints on the Trust investment portfolio in terms of ethical, social or environmental matters but the managers of the portfolio are expected to take into account best practice in temis of corporate govemance and SRI factors when assessing any individual investment. Return target The current income requirement for the portfolio is ¢irca £500,C(IO p.a. The income target and the need to preserve capital against long term inflation and ensure future income growth will require a total real retum from the investmeni Portfolio of 3.50A p.a. Risk tolerance A reasonable level of capital volatility within the investment porttolio is acceptable given the Trusfs long terni time horizon and relum objectives but to limit capital and other risks in the portfolio. the portfolio should be well diversified across asset classes and individual investments in line with a standard medium risk profile. Invostment benchmark The table below shows the benchmark against which the managefs performance will be monitored. There are no asset allocation constraints placed on the manager. Benchmark Indlcos FTSE All Shar& FTSE World lex UK FTSE Govt. All Stocks 7-da cash Ben¢hmaTk % 50 26 20 Investment managoment arrangements The Trustees will appoint investrnent managers to manage the assets of the portfolio in accordance with the principles set oui in this statement and wilhin the guidelines set down from time to time by the trustees. The Trustees will monitor the performance of the manager against the stated investment benchmark on a quarterly basis but it is anticipated that the manager will be given a period of tenure of between three and five years. Currency and hedglng The Trust's liabiliiies are all in sterling and therefore the bulk of the portfolio should be held in sterling to avoid unnecessary currency risk. Non sterling exposure should be limited to 300/0. Qualifying, sterling denominated collective vehicles, where underlying, non-qualifying assets exceed 300kn, are not subject to this restriction. 15
THE DUCHY OF LANCASTER JUBILEE TRUST STATEMENT OF INVESTMENT PRINCIPLES Restricted asset ¢las$es There should be no investment in gold bullion and commodilies nor in private equity vehicles. Other restrictions a. No holding is to exed 1 ¥0 of the issued share capitsl of a company without prior pemiission of the Trustees. b. No acquisition should result in the relevant holding representing more than 5 % of the value of the portfolio without prior consent of the Trustees, save in the case of a government security or managed fund. This doe5 not preclude the retention of a holding ihal attains a value in eX$S of of the Fund after purchase. c. The manager is not permitt8d to enter into futur8S, Options and other derivative producls. including forward foreign exchange transactions, other than when used as part of normal portfolio management by the manager of the pooled fund(s) in which the Trust is invested. d. The manager must have the prior approval of the Trustees before'.- Investing in non readily realisable investments; Effecting off-exchange transactions; Entering underwriting or sutrpundèrwriting commitments. Approval to carry out any restricted actiwty may be given by one Trustee and the Secretary of the Trust upon receipt of a written recommendation from the manager. Any such approval must be reported to the Trustees at their next meeting. Review process The Trustees will review th8 contents of this statement of investment objectives on an annual basis and modify if it IF deerned appropriate. Last reviewed: May 2024