DUKE OF LANCASTER'S FOUNDATION (Formerly THE DUCHY OF LANCASTER JUBILEE TRUST) Registered Charity Number 1085881 REPORT OF THE TRUSTEES AND ACCOUNTS FOR THE YEAR TO 31st MARCH 2025
DUKE OF LANCASTER'S FOUNDATION (Fomerfy THE DUCHY OF LANCASTER JUBILEE TRUST) FOR THE YEAR TO 318t MARCH 2025 CONTENTS LEGAL AND ADMINISTRATIVE INFORMATION REPORT OF THE 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
DUKE OF LANCASTER'S FOUNDATION (Forniorly THE DUCHY OF LANCASTER JUBILEE TRUST LEGAL AND ADMINISTRATIVE INFORMATION Trustees Sir James Leigh-Pemberton CVO Sir Michael Stevens GCVO 1rets.red 9 July 20251 Sonia Tolaney KC RiGhard Broyd CBE DrAnna Keay OBE James Chalmers {appointed 9 July 2025) Secretary Hugh Bruce-watt Registered Office 1 Lancaster Place Strand London WC2E 7ED Charfty number 1085881 Auditors Saffery LLP 71 Queen Victoria Street London EC4V4BE Banker8 Coutts & Co. 440 Strand London WC2R OQS Inv88tm6nt manager Cazenove Capitsl 1 London Wall Place London EC2Y SAU Investment advlsor Stsnhope Consulting 35 Portman Square London W1H6LR Solicilorn Stone King LLP Boundary House 91 Charterhousg Str88t London EC1M 6HR Farrers LLP 66 Lincoln's Inn Fields London WC2A 3LH
DUKE OF LANCASTEFfs FOUNDATION (Fom)erty THE DUCHY OF LANCASTER JUBILEE TRUSTI REPORT OF THE TRUSTEES FOR THE YEAR TO 31st MARCH 2025 1. Oblectlv•s of tho Foundatlon The obiectives of the Foundation are.. The maintenance and preservation for the public b•n8fit of any monument, castle or other propety of historical or archrt9Ctural interest in the vicinity of the Duchy lands. The advancement of the Christian faith by maintsining and supporting the King's Chapel of the Savoy and elergy whose livings are within the grft of the Duke of Lancaster. Such other charitable purposes as the Trustees think fit. Applications for grants should be addressed to the Se(xetary. The Trustees passed 8 resolution to change the name of The Duchy of Lancaster Jubilee Trust lo the Duke of Lancasterfs Foundation on 12 March 2025. Donations from His Majesty The King in Right of His Duchy of Lancaster may be giv8n lo the Foundation with the request that they are, for the time being. invested lo provide an incL)me lo support the objects of the Foundation. The Trustees have accordingly placed the donations reoived into a separate investment fund. the Expendabl Endowmenl Fund. The Trustees have referred to th8 guid8nc8 contained in the Charity Commission's general guidance on public benefit when reviewing the aims and objectives and in planning the futur& aclivilies. In particular the Trustees consider how planned donations will ¢ontribute to th8 aims and objectives they have sel. The Trustees ¢on$ider Ihal the Current policy for making donations delivers public benefit. Details of the obj$ctive5 whith fomi th8 basis of this policy are given above. 2. Grant maklng policy The Foundation has established its grant making policy to achieve it8 objects for the public b6n8frt. The Foundation invites applications for grants that will meet the stated obje¢tive$ of the Foundation and these will be assessed on a merit basis as to value for money and impact in achieving the aims of the Foundation. 3. AChIementS and pgrforrnance The Trustees have reviewed and are content thal tho objectives of the charity as highlighted have been achieved during the course of the year. Th¢ TNstees are content that the income generated over the course of the year ha$ been utilised in accordance with the objectives. During the year the Foundation made 5 grants lotalling £351,446 {2024'. 5 grants £351,446) as set out in Note 5 to the financlal Statements. This includes a grant for £350,0(X> to the King's Chapel of the Savoy.. this has been spent supporting Ihe running and upkeep of the Chapel and clergy. The Foundation continues to fulfil its objects through ils grant-making policy and il is the Trustees, intention to continue doing so. The Trustees aim is to gift SuffIent funds to the King's Chapel of the Savoy to allow the Chapel to meet any shortfall in its funding and this has been achieved in the year. The investrnent aim is for the portfolio lo generate income of circa £500.000, whilst preserving capital value in r8al terms. Due lo the performance of the markets in the year the portfolio ha5 mel the income target. 4. Financial review Donatsons of £12,3C(J,OOQ have been received in the year, {2024: £746.904 pledged in the year of 1¢h £532.749 had been received and £214,155 in debtors at 31 Marth 20241 and plac£d in the Endowmonl Fund. Investments have b88n acquired within the powers Set out in the Trusl Deed and in accordance with the Ststement of Inveslm8nl Principles set out on pages 15 and 16. Over the year, Foundations investment assets increased in value by £12,065,275146.4Vo). During the year the inve8tsnenl in¢om& g&noratsd was £g)4,644 (2024 .' £672.320).
REPORT OF THE TRUSTEES lconttnued) FOR THE YEAR TO 318t MARCH 2025 6. Risk management The principal risks fad by the Foundation lie in the perfomiance of investments and operational risks from ineffective grant making and the capaaty of the Foundation to make effective grants. The Trustees consider variability of inve$tmenl returns on the permanent endovmienl to constitute the charity's major finan¢ial risk. This is mitigated by retaining expert investment managers and Stanhope Con$ulling as our investrnent consultants who regularly review the risk profile of tho portfolio. The operational risk from ineffective grant making is mitigated by th• fact that the main recipient of the Charity is well understood by the Trustees who are able lo assess the effectiveness that the grant making h85 from the impact and benefit that the grants have. Smaller grant5 are assessed on merit on an individual basis and will only be granted rf the Trustees understand how these funds will benefit the recipient. 6. Reserves The Trustees, policy is lo distribute investment income received and to maintain a reserve in the General Fund_ Al the year end the balan of the General Fund was a surplus of £3.385.035 {2024.. £1,504,665). The Expendable Endowment fund had a balan of £38,399,187 at the year end12024.. £27,770,219}. Although not fomiing part of the main reserves, the Ttuste*s do have the powor lo transfer funds to the Unrestricted Fund to meel shortfalls in funding when required. 7. Plans for future pgriods The plan for futur8 Periods is to satisfy the charity'5 objectives and to maintain an investment portfolio in accordance with the total return objective as agreed by the Trustses as set out in the Statemènt of Investment Prinaples. 8. Structsrej govornance, management and administratlve detai18 Goveming Instrumenl Duke of Lancaster's Foundation Ifomierly The Duchy of Lan¢astsr Jubilee Trust) was constituted on 15 March 2001 under a dedaration of trust. The registered tharity number is 1085881. Truslees and princip81 officers Trustees are appointsd by the Re1Ver General of th• Duchy of Lancaster. The Trustees during the year were= ointed Retired Sir Jame5 Leigh-Pemberton CVO Sir Nathan Thompson KCVO Hugh Bullock CVO Sir Michael Stevens GCVO Lord Downshire Sonia Tolaney KC Lucy Macdonald Jill May Alistair Elliott Alastair Martin CVO Richard Broyd CBE Dr Anna Keay OBE James Chalmers 1 November 2024 12 March 2025 9 July 2025 12 March 2025 12 March 2025 12 March 2025 12 March 2025 12 March 2025 12 M8rch 2025 12 March 2025 9 Juty 2025 Secretary.. Hugh Bru¢8-Watt The Trustees meet lce a year to discuss the affairs of the Charity. Thè day lo day administration of the Foundation is d&legaled to the staff of the Duchy of Lancaster through a $ervice level agreement that is reviewed annually. Trustees ara provided with adequate support and training where training needs are idèntified lo allow them to effectively conduct their role.
REPORT OF THE TRUSTEES (conllnued) FOR THE YEAR TO 318tMAJlCH 2025 8. Structure, governance, management and administrative details {conlinued) Administralion Administrative support for thè charity is provided by The Duchy of Lancaster from its offices al 1 Lancaster Place, Strand. London WC2E 7ED. Advisors Bankers.. Coutts & Co. 440 Strand London WC2R OQS Soli¢ilors- Stone King LLP Boundary House 91 Chartgrhouse Street London EC1M 6HR Investment advisor.. stanhape Consulting 35 Portman Square London W1H6LR Solicitors.. Farrers LLP 66 Lincoln'5 Inn Fiehjs London WC2A 3LH Investment manager., Cazenove Capital 1 London Wall Place London EC2Y SAU Auditors.. Saffery LLP 71 Queen Victoria stet London EC4V 4BE The Iruslees aro responsible for preparin9 the trustees. report and the finanaal slatemgnls in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generalty Accepted Aw)unting practi). The law applicabk to charities in Englar & Wales requires the Trustees to prepare financial slatsments for each finanaal year which give a true and fair view of the state of affairs of th& Charity and of the incoming resources and 8ppIic8tion of resour$ of the ¢harity for that pèriod. In preparing these finanaal statements, the Tw$tees are required to: $8lfrd suitsble accounting policies and then appty them Consistently., observe the methods and principles in the Charities SORP (FRS102),' make judgements and estimates that are reasonabl8.and prudent; siale whether applicable accounting stsndards have been followed, subject lo any matèrial departures disclosed and explained in the financial statements- and prepare the finanaal statements on the going cOnrn basis unless it is inappropriate to presume that the charity WFII continue in business. The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the finanaal position of the charity and enable them to ensure that the finanaal statements compty with the Charities Act 2011, applicable accounting regulations. They are also responsible for safeguarding the assets of the charity and hence for tsking reasonable steps for the prevention and d8tection of fraud and other irregularities. The Trustees have undertaken a review of major risks facing the charity and taken steps lo mitigale Ihem. Approved by the Tru$lees on ? OtrD6ÉLthSand signed on their behaw by: Sir James Leigh-Pemberton CVQ Trustee
DUKE OF LANCASTER'S FOUNDATION IF0Mrty THE DUCHY OF LANCASTER JUBILEE TRUST) INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES Opinion We have audited the financial ststements of the Duke of Lancasterfs Foundation for the year ended 31 March 2025 which comprise the Statement of Financial Activities, Balance Sheet and Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in th8ir 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 Practi). In our opinion the financial statements: give a true and fair view of the state of the Charity's affairs as at 31 March 2025 and of its incoming resources and application of resources for the year then ended., have been properly prepared in a¢¢ordance with United Kingdom Generally Accepted Accounting Pradi¢e' and have been prepared in accordance with the requirements of the Charities A¢t 2011. Basis for opinlon 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 ststements section of our report. We are independent of the charity in a¢¢ordance 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. Concluslons rnlating to going Concern In auditing the financial ststemenls, we have concluded that the trustees, use of the going concem basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfomied, 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 concem for a period of at least e1ve months from when the financial ststements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concem a de$Ibed in the relevant sections of this report. Other infomiatlon The other information comprises the information included in Ihe annual report, other than the financial statements and our audiior's report thereon. The trustees are responsible for the other information. 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 fomi of assurance Conclusion thereon. Our responsibility is to read the other information and. in doing so, consider wheth8r the other infomiation is materially inconsistent with the financial statements, or our knowledge obtained in the course of the audit or otherwise appears to b8 materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to detemiine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, w8 conclude that there is a material misstatemenl of this other information. we are required to report that fact. We have nothing to report in this regard. MatterJ on which we are roqulred to report by exception We have nothing to report in respect of the following matters in relation to which the Charities {Ac¢ounls and Reports) Regulations 2008 require us to report lo you if, in our opinion: the informalion given in the Trustees, Annual Report is inconsistent in any material respect with the financial statements- or • the charity has not kept sufficient accounting re¢ords; or the financial statements are not in agreement with the accounting records and returns; or • we have not received all the information and explanations we require for our audit.
DUKE OF LANCASTER'S FOUNDATION IFomierly THE DUCHY OF LANCASTER JUBILEE TRUST) INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES continued Responsibilities of trustses As explained more fully in the Trustees, 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 inlemal control as the Irustees detemiine 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 concem basis of accounting unless the trustees either intend to liquidate Ihe charity or to ase operations, or have no realistic alternative but to do so. Auditors. responsibilities for the audlt of the financial statements We have been appointed as auditors under the Charities Act 2011 and report in accordance with regulations made under Ihat Ad. Our objectives are to obtain reasonable assurance about whelher Ihe financial statements as a whole are free from material misstatement. whelher 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 accordance with ISAS (UK) will always detect a material 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 expected to influence the economic decisions of users taken on the basis of these financial ststements. Irregularities, including fraud, are instances of non-complian with laws and regulations. We design procedur8s in line wilh our responsibililies, outlined above, to deCt material misstatements in respect of irregularities, including fraud. The spècific procedures for this engagement and the extent to which Ihese are capable of detecting irregularities, including fraud are detailed below. Identifying and assessing risks related to irregularities: We assessed the suSptibl1Ity of th8 charity's financial statements to malerial 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 ensuring these controls operatèd as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of signific2n¢e in the context of the charity by discussions wtth tn15tees and updating our understanding of the sector in which the charity operates. Laws and regulations of direct Significan in the context of the charity include the Charities Act 2011, the Charities (A¢¢ounts and Reports) Regulations 2008 and guidance issued by the Charity Commission for England and Wales. Audit response to risks identified: We considered the extent of complian¢e with these laws and regulations as part of our audit procedures on the r81ated financial statement items including a review of financial slatement disclosures. We reviewed the charitls 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 wsth the audit leam, the engagement partner drew attention to the key areas which might involve non-¢omplian¢e with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-complian 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 testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the nomial course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the Completion stage of the audit, the engagement partnerfs review included ensuring that the team had approached their work with appropriate professional scepticism and thus the Capacity to identify non-¢omplian¢e with laws and regulations and fraud.
DUKE OF LANCASTER'S FOUNDATION {Forn)erly THE DUCHY OF LANCASTER JUBILEE TRUST) INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES ¢ontlnued There are inherent limitations in the audit procedures described above and the further removed non- compliance with laws and regulations is from the events and tranSalOn8 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 th8 Financial Reporting Council's website at: www. kl uditorsres nsibili This description forms part of our auditorfs 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 (Accounts and Reports) Regulations 2C(18. Our audit Work has been undertaken so that we might state to the twsle8S those matters we are required to state to them in an auditors report and lor no other purpose. To the fullest extent pemiitted by law, we do not a¢p1 or assume responsibility 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 fomied. Saffery LLP Statutory Auditors 71 Queen Victoria Street London EC4V 4BE Date: Saffery LLP is eligible to act as an auditor in tem)s of section 1212 of the Companies Act 2006
DUKE OF LANCASTER'S FOUNDATION (Fomwrty THE DUCHY OF LANCASTER JUBILEE TRUSTI STATEMENT OF FINANCIAL AcnvmES FOR THE YEAR TO 31st MARCH 2025 Unreslrided Furwj Expendable Endowment Fund Total 2025 Total 2024 Notet In¢om& Ind endowments from: Donations Inve$lrnents Total 12,300,000 12,300,0 904,864 13,204,664 746,904 672 320 1,419,224 904,664 904,664 12,300,000 Exp•n4liture on: Raising Funds Charllable 8diwti.es Totsi .27,671 27,671 371 886 399,557 104,111 363,052 467, 163 371,886 371,886 Net(losses) Igains on investments Net Incomo 29S,769 11,976,560 295,769 12,509.338 1.666.677 2,678,T38 532,778 Transfer befvmen funds 1.347.592 {1,347,5921 Net movwnonl In futhd$ 1.880,370 10,628,968 12,509,338 2.618,738 Reconclllatlon of funds: Total funds brought forward 1,504,665 27,770.219 29.274.884 26.656, 746 Total funds Carrled fonward 3.385,035 38 399 187 41,784,222 29,274,884 STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR TO 31st MARCH 2024 Unreslrfcted Fund Expendable Endowment Fund Total 2024 Notos Income and endowments from: Donations Investrnents Totsl 746,904 746.904 672,320 1419,224 672,320 672,320 746.904 Exp•ndituro on: Raislng Funds Charilablè adiwiie5 Total 104,111 104.111 363.052 467,163 363 052 363.052 104111 Net gains on investrnents N•t Incomo 1,666,877 2,309,470 1666,677 2,618,738 309,268 Transfer betrn funds 506.750 {506,750 Net movement In funds 816.018 1,802,720 2.618,738 Reconclliatlon gf fund$: Total funds brouglrt folward 688.647 25.967,499 26.656.146 Total funds ¢arrf•d fomard 27,770,219 29.274,884 The notes on pages 1110 14 fonn part of th8se accounts.
DUKE OF LANCASTER'S FOUNDATION IFornwrly THE DUCHY OF LANCASTER JUBILEE TRUSTI BALANCE SHEET AT 31st hlARCH 2020 2025 2024 Notes Flxod Assèts Investmants 38,032,774 27.556,064 Currènt A88•ts Debtors Cash and deposlls 10 389,187 3,368,501 3,757.688 228.457 1.522,249 1.750, 700 Crèdltors: amoun18 falllng due wlthln ono ymr Accruals Net Current Assets 12 6,240 3,751.448 31,880 l.T18,820 N•tAuets 41,784,222 29274 884 Capltal Fund Expend8ble Ent1owment 13 38.399,187 27,770,219 Income Fund Unrestricted Ggneral Fund 13 3 385,035 1,504.665 41,784,222 29,274,884 Approved by the Trustees on ?ocrow trLS and slgned on their behalf by. SIT James Lelgh-Pemberton CVO Trustee Reglslered Charity Number 1085881 The notes orb pages 11 to 14 fom) pari of these accounts.
DUKE OF LANCASTER'S FOUNDATION IFomi•rty THE DUCHY OF LANCASTER JUBILEE TRUSTI CASH FLOW STATEMENT FOR THE YEAR TO 31st MARCH 2025 Total 2025 Total 2024 Nol8S Met cash Inllow from opgratlng actlvltles 14 941,288 157,519 Cash flt)ws from Investlng a¢tlvltlgS DlvldeThJs Interest 823,616 81,048 637.162 35. 158 N•t ¢a$h Inflow from invosting actiYWe 904,664 672,320 Change In $h and cash equIvarnts in the year 1,845.952 829,839 Cash and cash wufvalonts at stsrt of 1.522,549 692 410 Cash and cash equlvalgnts at ond ol •r 3 368,501 1,522,249 Cash Comprhes: Cash atbank 3,368,501 1.522.249 The notes on pages 1110 14 form part of thasg accounts. 10
DUKE OF LANCASTER'S FOUNDATION IFom)•rty THE DUCHY OF LANCASTER JUBILEE TRUSTI NOTES TO THE ACCOUNTS FOR THE YEAR TO 31st MARCH 2025 l. A¢¢ountlng Pollclos lal Basis of Accounung The financial statements hav$ been prepared in ac£ordanc* wlth the Statement of Recommended Practice- Accounting and Reporting by Charfllgs preparing their accounts in arKordancE with the Fln8n¢lal Raporting Standard applicable In the UK and Republic of Irèlbnd IFRS 1021 Issued on 16 July 2014, the FlnancAal Reporting Standard 8pplicable in the United Kingdom and Republic of Ireland IFRS 1021, the Chadues Act 2011 and UK Generally A¢¢gpted Practice as il applies from 1 January 2015. The Foundation constiiules 8 publlc benefft entity as defined by FRS 102. The Injslees consider th81 there arè no material uncertainlies about Ihg Foundation's abillty lo conllnue as a 99ing coneem. The most significant key assumptlons that affect hems in the a(¢QLsnts are the carrylng valua of assets held by the Foundallon and Ihe level of investment relum due lo Ihg perfomiance of inveslmenl markets Is8e ihe investhlènt pollcy and perforrnancE and risk management sedons ofthe Irustee8' annual Teportfor more infom3tionl. The fun¢tional rrencY Is Sterling. Monetary amounts In Ise flnancial statements are roundgd lo the nearest £. Ib) Significant ludgemenls, key 4¥5umplions and esllmatos Accounling eslim819s and Judgements are continually 9valuated and are based on past experience and other f8CtiYs. Indudlng expeclallons of future evenl8 that are believed to be reasonable under the drcumstances. The Duehy makes eslmatss and 05surnption8 concemlng the fubjre. The resulting aOUntIng gsllmales could, by definluon. differ from the adual outcome. There are no estimates and assumpbon$ Ihat have a risk of causing materi81 adlusiment to thè carrylng amoun15 of assets and Ilabilities within the nexl fin8ndal ygaf. {c) Income t)on8llons are accounted for on an acuu81s basls. Inlerest from banks and dlvidends are accounted for on an awuals basis. Idl Grants Granls are accounlgd for when the intenlion lo mako Ihg payment is communlcaled lo the benefiary. 11 there are ndIOnS 8ttacheil lo the payment then the grant Is accounted for once the conditk)n$ are no longer within the control of thg Truslees. le) Govemance costs Govemanc8 costs Gomprise costs incurred In Trust administration and compliance wlih rggLtlatory rèquirem8nls. lfj Toxalion The Trust rrieS on aGtlvMès which are exempt from CooratiOn tsx and income The Charity suffers Value Added Tax whlch Is Indudeil wilh ihe expenditure lo whl¢h It relates. Ig) Fixed Asset Inveslmanls Fixed Asset Investments ar9 Stated In the Balance Sheet atthe quoled market V8lu8lon at the yaar end. Ihl Cash and cash equlvalents Cash and castri equlvalants Include8 ¢a8h al hand and on deposil held at C8118t the bank. l)1 Debtors Trade and olher deblors are recognlsed at the setllemenl amount due. Q) Cre(Iltors Creditors are recognised wh6re there Is a present obligation resulting from a past event that will probably resum In Ihe transfer of funds to 8 third p8ty and the amount due lo settle th& obllgation can bè measured or esllmaled reliably. Ikl Expendable Endowmgnt Fund Donations from thg Duchy of Lancaster are invested lo provlde an income from whld) grants may be made in accordanco wlth the reserves policy sel out in the Report of the Trustees.
DUKE OF LANCASTER'S FOUNDATION (Formerly THE DUCHY OF LIJ4CASTER JUBILEE TRUST) NOTES TO THE ACCOUNTS Icontlnu•d) FOR THE YEAR TO 318t MARCH 2fJ26 2. Donatlons 2025 2024 His Majesty the King in Right of His Duchy of Lanraster 12.300,0 746.904 3. InthnI income 2025 2024 DiwdeThls Bank interest 823,616 81.048 904,664 63T, 762 35, 158 672,320 4. Raisiny Fun 2025 2024 Invastmgnt Managomenl Fees 27.671 104,111 104,111 5. Chavitable a¢tivibe$ Grants io Inslltullons Grants to Indiwduals 2025 2024 Tho Klng's Chapel of the Savoy Other granls Governance costs {see Note 61 350,000 1,196 20,440 371,636 350,000 1,446 20,440 371886 350,000 1,446 11,606 363,052 250 250 A total of 5 grants were paid12024= 51 induding 1 to an individual for £25012024.. 1 for £2501. 6. Gov•mance ¢t8 2025 2024 Audltors feès- for audit Other administration costs 6.240 14.200 20,440 5,880 5,726 The administration of the Trust is managed by the Trustees and the office ofthe Duchy of Lancaster. The Duke of Lancaster Foundalton conlribtrted £4.200 during the year {2024.. £4,200) lo Du¢hy of LanSter towards these admini51iation costs. 7. Trustee and Staff Co¥ts Nona ofthg Tru$lee$ received any remuneration or expensès durtng the ar12024.. £nill. The charity has no directty employed staff. 12
DUKE OF LANCASTER'S FOUNDATION (Fornwrty THE DUCHY OF LINCASTER JUBILEE TRU8TI NOTES TO THE ACCOUNTS Icontlnuedl FOR THE YEAR TO 31st MARCH 2026 8. Investmonts 2025 2024 Aulhorlsed unit trusts= Cazenove Newton 38,032.774 27.556,064 27,556,064 38.032,774 The his¢orfc CAJ$t ol investsnents at 31st Marth 2025 was £38,449,47912024.' £27,670,659}. The significance of Ilnonclal in$trumenls lo the ongoing Ilnandal sustainability of the Trust Is nSIdered in the Trustees, Annual Report. 9. Rt¢on¢lllatlon of movem¢nt of inv•stm•nt8 2025 2024 Authorfsed unil trusts". Market value at 1 st April 2024 Additions Managefflent fee (Losses) l Gains in value of invasbnents Mathet value at 31st March 2025 27,556.064 10.800,000 127,5211 95.769 38,032,774 25,967,499 (78, 112) 1,666.677 27,556.064 All investments are in authorised unil trusts. The invesknent porlfolio was moved from Newton to C3zenovÈ 31st March 2024. Cazenove investment management fees and associated tharges are charged at 0.77% and taken from the unil trust. Equalisalion within the portfolio is credited to Ihe pits1 cash a¢wunt and reinvested into the portfolio if cash is not reqUId. 10. D•btorJ 2025 2024 DonatIOr from His Majesty the King IH9r MaJ9sty The Queen In Rlghl of His l Her Duchy of Lancaster Divldend$ Deposit interest 214,155 366,413 22,774 389,187 14,296 228,451 11. R•lated Parts Certain of the Duke of L8nc8sle¢s Foundation's e>penses 8re In¢urred Inltially by the Dud)y of Lanster and then recharged to the Foundation. The amount of such expenses ielating to the year ended 31st March 2025 was £8.70012024.' £7,010). During the year a related Duthy of Lancaster Charity paid for a joint DirectOf5 and Offir*rs Insurance policy, the Duke of Lan(asterfs Foundation reimtWfse(I them £1,25312024£nil). Donations from His Majesty The King in Right of His Duthy of Lancaster may be given lo the Foundation with the rèquest that they are. for Ihe time being. invested to piovide an income to support thè obleds of the Foundation. The Ttustsès have accordingly place(1 the donations recAived into a separate inveslrnenl fund, the Expendable Endowfflenl FurKI. Donations of £12.300.000 have been reiVed in the year. There is also 8 cash payment of£214.155 whlth related to a debtor al 31 M8rch 2024. 11 A¢¢ruals 2025 2024 In$th)ent Managemenl Fees Audit 26,000 5,880 31,880 6,240 6,240 13
DUKE OF LANCASTER'S FOUNDATV)N {Fomi•ty THE DUCHY OF LANCASTER JUBILEE TRUSTI NOTES TO THE ACCOUNTS l¢ontInu) FOR THE YEAR TO 31$t MARCH 2025 13. Net •s¥gts by fund 2025 2024 Unrestrtctad General Fund Urtrestrided Gang1 Fund Expendable endowment Expendable endowment Investments Currenl assets Currenl liabllltk9S Nel Assets 38.032.774 366.413 27,556,064 214, 155 3,391,275 6,240 3,385,035 t.536,545 37.880 7.504.665 38,399,187 27,770,219 Dudng the year there was a transfèr of £1.347,592. behvèèn the Expendable En¢Jowment Fund and Ihe Unreslric*ed General Fund {2024 .. £506,750). 14. Reconclliation of ntrl l {oxpendlture) to net cash Inflow from oporatlng acllvltlos 2025 2024 Net incA)me as per statement of finand81 aiaiwties AdJusl8d for Nei lossesl (gains} on investmènts Purchasè of InstmentS InNEstrnent income Investment Management fèes Increase in receivables {Decroase} I Increase in payab8 Net cash inflow from operating activities 12,509.338 2,618,738 295,769 {10,800.000} 1904,664) 27.521 1161.036) 25,640 941,288 (1,666.677) (672,320) 78.112 (226,694) 26,360 157,519 14
THE DUKE OF LANCASTER'S FOUNDATION {Fornierly THE DUCHY OF LANCASTER JUBILEE TRUST) STATEMENT OF INVESTMENT PRINCIPLES Background and purpose of portfolio Duke of Lancasterfs Foundation was constituted In 2001 to fund charitable causes. particularly the maintenance of historic buildings wllhin Duchy estates. Investment objectives The primary objective of Ihe Foundation's investment portfolio is to provide an increasing distributable income while maintaining the real value of the Foundation's assets over the long term. Liquidity requirement There is no requirement to hold a specific proportion of assets in cash or other short term asset classes but all investment should be in relatively liquid vehicles. Ethical considerations The managers of Ihe portfolio are expected to lake into account besl practice in terms of sustainable investing and corporate govemanGe when assessing any individual investment. The assets are currently invested in the Cazenove Charity Sustainable Mulli Asset Fund. Return tsrgel The incorne target and the need to preserve capltal against long term inflation and ensure future income growih will require a totsl real retum from the investment portfolio of 3.5Vo p.a. The Cazenove benchmark is CPl+4% p. Rlsk tolerance A reasonable level of capital volatility wlthln the investment portfolio is acceptable glven the Trust's long tenn time horizon and return objeclives but to limit capital and other risks in the portfolio. the portfollo should be well diversified across asset classes and individual investments In Ilne with a standard medium risk profile. Investment management arrangements The Trustees will appcint investment managers to manage Ihe assets of the portfolio in accordance with the principles set out in this statement and within the guidelines set down from time to time by the trustees. The Truslees will monitor Ihe perfomiance of the manager against the slated investment benchmark on a quarterly basis but it Is anticipated that the manager will be given a period of tenure of bétween three and five years. Currency and hedging The Foundation's liabilities are all in sterling and therefore the bulk of the portfolio should be held in slerling to avoid unnecessary currency risk. Non sterllng exposure should be Ilmited to 30¥ts. Qualifying, sterling denorninated collective vehlcles, where underlying, non-qualifySng assets exceed 300k. are not subject to this restriction. 15
THE DUKE OF LANCASTER'S FOUNDATION {Fornierly THE DUCHY OF LANCASTER JUBILEE TRUST) STATEMENT OF INVESTMENT PRINCIPLES (contlnued) Restricted asset classes There should be no investment in gold bullion and commodities nor in private equity vehicles. Other restrictions No holding is to exceed 1 OA of the issued share capital of a company without prior permission of the Trustees. b. No acquisition should result in the relevant holding representing more than 5% of the value of the porttolio without prior consent of the Trustees. save in the case of a govemment security or managed fund. This does not preclude the retention of a holding that attain5 a value in excess of 5Yo of the Fund after purchase. c. The manager is not permitted to enter into futures. options and other derivatlV8 prcluCIs, including forward forelgn exchange transactions, other than when us8d as part of nomial portfolio management by the manager of the pooled fund{s) In whlch the Trust is invested. d. The manager must have the prfor approval of the Trustees before:_ Investing In non readily realisable investrnents; Effecting off*xchange transactions. Entering underwriting or sub-undetwriting commitments., Approval to carry out any reslriGted activity may be given by one Trustee and the Secretary of the Trust upon reGeipt of a written recommendation from the manager. Any such approval must be reported to the Twstees at their next meeting. Review process The Trustees will review the contents of this statement of investment objeclives on an annual basis and modify if It Is deemed appropriate. Last reviewed: October 2025 16