2022-12-31-accounts

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The Children's Investment Fund Foundation (UK) Annual Report for the year ended 31 December 2022

Message from the Chair	2
Message from the CEO	4
Trustees' Report	6
2022 by the numbers	6
Highlights of our impact in 2022	8
Our work in 2022	11
Strategic Report	25
Social Impact of CIFF's Operations	27
Financial Review	31
Investment Review	33
Risk Management and Key Policies	34
Structure and Governance	38
Remuneration Report and Other Governance	40
Trustees' Responsibilities and Financial Statements	41
Independent Auditor’s Report to the Members	42
Consolidated Statement of Financial Activities	46
Consolidated and Foundation Balance Sheets	48
Consolidated Cash Flow Statement	49
Notes to the Consolidated Financial Statements	50
Group Information	86

THE CHILDREN’S INVESTMENT FUND FOUNDATION (CIFF UK) ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 The Children’s Investment Fund Foundation (UK) (CIFF) Company number: 4370006 | Charity number: 1091043 Website: ciff.org | Email: info@ciff.org

Page 1

Message from the Chair

Over the past 20 years, we have broadened our understanding of how to affect change for children.

Sir Christopher Hohn

Founder and Chair 15 June 2023

2022 was an important year for CIFF and for me, as it marked 20 years of striving to improve the lives of children, solving some of the world’s most complicated problems and working with extraordinary partners. It has also been a 20year learning curve.

�� changed. We have, however, broadened our understanding �� taking an increasingly integrated approach to our work on �� and skilling.

Seeing the impact that philanthropy can have has always given me immense joy. In 2022, I was pleased to see �� crisis, which has been exacerbated by the climate crisis, CIFF has been working to ��

�� �� years. This has resulted in the establishment and expansion �� drawing in resources from governments and philanthropy. We also saw an important milestone towards ��  , with CIFF’s $33 million commitment to The Global Fund to Fight AIDS, Tuberculosis �� commitment was matched by the Global Fund and marks ��

�� longstanding partnerships have yielded results. Following our decade-long work with the Carter Centre to eradicate Dracunculus medinensis, the parasite that causes Guinea �� in our programme which has achieved this status, over the course of the ten years. Cases of Guinea worm globally have gone from 3.5 million a year in 1986 to just 10 human �� focused, long-term partnership.

�� case of the blinding disease trachoma, surgery to restore an individual’s sight costs less than $100, but can bring ��

Page 2

�� as enabling women and girls to make decisions about their �� is undeniable.

�� , both in 2022 but also over the many years before that. I know that many of you, like �� the service of others. Doing so will create a much fairer and more joyous world.

�� Founder and Chair 15 June 2023

Page 3

Message from the CEO

CIFF’s mission – across our strategic goals of gender empowerment and informed choice, safe and healthy childhoods, and climate action – is now more important than ever.

Kate Hampton

CEO 15 June 2023

�� ��  . In the last year – CIFF’s 20th �� energy prices have combined to drive a cost-of-living crisis. �� shrunk in the countries who need it most, whilst systemic ��

Against this backdrop, and whilst global decision-makers �� goal, �� , has �� around the world. As ever, it is the most vulnerable, and ��

The worsening global context means the breadth of CIFF’s mission – across our strategic goals of �� – is more important than ever. Indeed, working to deliver change on climate and children’s issues �� fraught division.

�� remarkable �� in grant disbursements in 2022 and approved �� ��

Page 4

�� countries in which we work and the clear evidence that our current global system is not able to meet the challenges it is facing, CIFF has increasingly focused on the reform of the ��

��

�� 15 June 2023

�� context becomes more challenging, the value of civil society only becomes more evident. Alongside our partners, we �� the world’s most intractable problems. And that is why we �� ��  to ensure our community is breaking down silos and working systemically to enact change.

�� as well as our �� for all that they did in

Pag e ٥

2022 by the numbers

Charitable Payments by Programme – 2022 and 2021

$400m

Charitable Investments Approved

After exceptional levels of approvals in 2021, CIFF approved $400 million of ~~charitable investments in 2022.~~

$530m

Grant Disbursements

CIFF disbursed grants of $530 million in 2022. Grant disbursements increased in 2022 by over $60 million compared to 2021.

$5.1bn

Endowment

A challenging economic environment led to negative investment returns for 2022, and after charitable expenditure the closing endowment value for 2022 reduced to $5.1 billion. The size of the original endowment and the excellent investment returns achieved over the years continues to give CIFF the financial strength and stability to make substantial long-term commitments to the work of our grantees.

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Total Charity Funds 2022 US$5.0 billion
Total Charity Funds 2021 US$5.9 billion
Total Charitable Investments Committed 2022 US$400 million
Total Charitable Investments Committed 2021 US$772 million
Total Disbursed 2022 US$530 million
Total Disbursed 2021 US$468 million
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Cross-cutting – US$88 million
SRHR - US$94 million
2022
Girl Capital – US$18 million
Child Health – US$105 million Climate – US$222 million
Child Protection – US$3 million
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Cross-cutting – US$86 million
SRHR - US$68 million
2021
Girl Capital – US$21 million
Child Health – US$100 million Climate – US$190 million
Child Protection – US$4 million
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Page 56

Page 7

Highlights of our impact in 2022

CIFF’s commitment to the Global Fund: CIFF’s commitment to the Global Fund: At the 7th triannual replenishment of the Global Fund for HIV, TB and Malaria, CIFF launched a major new partnership to scale bio-medical and behavioural interventions to break the cycle of HIV transmission .

Increasing access to contraceptive choices in Africa: Across the Sahel, CIFF’s partners have scaled equitable access to contraceptive information and choices, with over 1.5 million individuals accessing modern methods in a region with the world’s lowest contraceptive prevalence.

Expanding digital learning for girls in India: Mission Buniyaad, a programme led by the Government of Rajasthan, which enables digital learning to help improve educational outcomes for girls, is now being scaled up across the state and is set to reach up to one million girls .

Page 8

Highlights of our impact in 2022 continued

Guinea worm eradication in the DRC: CIFF has been partnering with the Carter Centre since 2012 on the eradication of Dracunculus medinensis, the parasite that causes Guinea-worm disease. In December 2022 the World Health Organization (WHO) certified The Democratic Republic of the Congo (DRC) as transmission free of this debilitating disease. This marks the sixth country declared free in the period that CIFF has been working with the Carter Centre (alongside Cote d’Ivoire, Ghana, Kenya, Niger, and Nigeria).

Across the rest of our NTD portfolio, CIFF also supported the delivery of over 58 million treatments against Neglected Tropical Diseases (NTDs) in seven African countries.

The Child Nutrition Fund: Together with our partners CIFF has raised more than $500 million in new funding for child wasting in 2022 – this means more children than ever who need treatment for severe acute malnutrition, will have access. The CIFF-supported Child Nutrition Fund saw five countries in 2022 accessing the ready-to-use therapeutic food match facility (RUTF) and multiple country programmes approved.

Page 8Page 9

Highlights of our impact in 2022 continued

Climate action plans (CAPs) recognised as a global norm: CIFF’s private finance strategy has continued to have a global impact - 4,000 companies disclosed Climate Action Plans (CAPs) to CDP in 2022, with a further 6,000 companies developing plans. Starting in the EU, regulation is coming in 2024 mandating disclosure of plans across the G7 and in other major economies. Under the Say on Climate campaign led by CIFF partners, 60 major companies have put their plans to shareholders since 2020, leading to subsequent votes against directors and executive compensation where plans have been deemed insufficient. The G20, UNFCCC, OECD, Networking for Greening the Finance System (100 central banks) and GFANZ have made CAPs the central framework for managing the climate transition of companies and banks.

Growing renewable energy in East & South East Asia, and Europe: CIFF partners supported the growth of renewable energy in our key geographies, and across the EU, technical assistance, strategic communications and policy advocacy ensured.

Responding to Europe's energy crisis: the war in Ukraine focused attention on the need to rapidly reduce Europe’s reliance on expensive, volatile fossil fuels, with CIFF partners helping to identify the solutions and secure the policies to enable ambitious delivery. Through technical assistance, strategic communications and policy support, ECF and its partners helped to create a policy and regulatory environment that is conducive to investment in renewables and energy efficiency, reducing costs and increasing security for households and businesses.

Page 10Page 9

Ourwork in 2022

Global

Climate

In a year of �� , CIFF’s climate team and network of partners worked with a clear focus on reducing global emissions with an aim to limit ��

Despite challenges, the world saw �� trends in 2022 ��there was a rise in renewable energy ��

�� across a spectrum of approaches to ��  . ��

�� breaking lawsuits against their own companies (e.g. Shell, ��

�� pathway.

�� moment for holding world leaders accountable for climate �� ��  ��

�� �� �� ��  �� �� ��

Page 12

Sexual and Reproductive Health and Rights

�� undermined �� – and there was fear that the US Supreme Court’s decision to ��

�� �� , CIFF ��

�� ‘��

�� the Sahel and northern Nigeria. In Northern Nigeria, CIFF ��

��

�� To begin �� , CIFF partnered ��

�� ��  ��

�� �� that saw the total market grow to 18 million ��

Page 13

Nutrition

�� [��] �� showed that a 5% increase in food prices increases child ��[�] �� this backdrop, CIFF worked to �� , ��

�� �� ��

our founder, Sir Christopher Hohn, as well as our philanthropic ��

��

1��

3��

2��

��

Page 14

Child Protection

�� makers.

��

�� child sexual abuse material is hosted.

Page 15

Cross-cutting

International Finance

�� to health, there is an urgent need to mobilise more and �� global momentum on the �� architecture ��

�� interlinked crises. CIFF was honoured to play a crucial role ��

Evidence, Measurement and Evaluation

��

�� becoming �� , increasing the

��

�� leading to ��  ��

�� to �� ��

Impact Investing

��

Page 16

��

Big Win Philanthropy (BWP)

��

Organisational Development

��

Page 17

Africa

��

Girl Capital

��

�� �� services in 2022 . Their focus has been on adolescent girls, ��

��

Resilient Communities

Climate

�� �� �� held a knowledge workshop with key stakeholders to share ��

�� in the �� ��

Page 18

CIFF also launched the �� �� or entrepreneurship.

NTDs

�� �� ��

�� that causes �� �� �� of this �� free in the period that CIFF has been working with the Carter ��

�� support �� . ��

�� ��  ��

WASH

��

CIFF’s �� ��

Child Health

�� ��  ��

�� Uganda – and the results showed an ��  �� mortality.

�� ��  in districts compared to ��

Page 19

India

�� working to address the challenges facing children, we take �� of deep local proof points. This helps build momentum across ��

Child Health

��

�� million.

Girl Capital

�� across the state and aiming to reach one million girls.

�� 66% from enrolment to placement.

Climate

�� in India on climate (although also applies to our work in �� India’s largest and most populous state. Under this agreement,

Page 20

��

SRHR

��

Child Protection

�� child labour and missing children in Delhi.

��

Page 21

East & SouthEast Asia

�� . This is built upon a decade of close ��

�� �� ��

�� �� and helped ��

�� ��  ��

��

�� ��  , with the ��

�� which signalled a �� . The ��

�� enshrine �� �� neutrality in their Southeast regional supply chains. These �� access to renewables.

Page 22

Europe

�� ��  �� assistance.

�� ��  .

�� �� , with CIFF partners ��

�� �� by around ��

The war in Ukraine also created new ��  �� demonstrated its speed and adaptability in commissioning rapid analysis from a range of partners, including Chatham ��

�� �� ��

Page 23

Latin America

��

�� �� in the �� �� ��

�� �� �� in which the country ��

Page 24

Strategic Report Pagè25

Strategic Report

Section 172(1) Statement

��

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��
��
��
��
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��

Covid-19

��

Page 26

Social Impact of CIFF’s Operations

��

Strengthening our HR foundations

�� Coaching Skills programme by the end of the year.

Listening to our people

��

Ensuring a great place to work

��

A continued focus on Diversity, Equity and Inclusion

��

Page 27

Reducing the environmental impact of our operations

��

�� will be made public and will be fully integrated into the CIFF business plan.

Operational emissions

Independent Measurement

��

�� prior period actuals.

Activity	2022 to December 22	July 20 to December 21
	(12 months)	(18 months)
��	��	��
��2��	��	��

Reductions

��

��

Page 28

��

Contribution

��

�� disclosing the following for our most recent purchase of credits:

Volume of credits purchased	600	800	1300	100
Certifcation standard name	Gold Standard	Gold Standard	EU ETS Allowances	Climeworks
Project Name	Domestic Biogas Project for	Bauminvest Reforestation	n/a - purchased via	Climeworks – Direct Air
	Rural Households in India	Project	Carbon Footprint'	Capture removals
Project ID	GS6275	GS2913	n/a	n/a
Issuing Registry for credits used	Gold Standard	Gold Standard	EU ETS Union Registry	n/a
Host country	India	Costa Rica	n/a	Switzerland
Credit vintage	2019	2014	n/a	2023
Methodology/project type	AMS-I.E. Switch from Non-	Afforestation/Reforestation	n/a	Climeworks/DNV
	Renewable Biomass for	GHG Emissions Reduction &		removals methodology
	Thermal Applications by the	Sequestration Methodology		(pending certifcation)
	User
Whether or not the carbon credit	No – we confrm that the	No – we confrm that the	n/a	No – we confrm that the
is associated with corresponding	mitigation underlying the	mitigation underlying the		mitigation underlying
adjustments (as evidenced by authorization and authorized use) by the host and/or buyer country	carbon credit may also count toward the host country’s Nationally Determined Contribution.	carbon credit may also count toward the host country’s Nationally Determined Contribution.		the carbon credit may also count toward the host country’s Nationally Determined Contribution.

Page 29

Investment portfolio

��

�� [1] ��

Public equities Carbon Footprint (tCO2e) as at 31 December 2022

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CIFF portfolio 63 664 tCO2e
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347 310 tCO2e

��

% of investments with Climate Targets as at 31 December 2022

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Net zero committed
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46%

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85%
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1��

Page 30

��

Financial Review

Five-year summary of income and expenditure

Summary of income and expenditure
	2018	2019	2020	20212	2022
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Total incoming resources including
recognised gains and (losses)	211	1,121	527	724	(416)
��	��	��	��	��	��
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Total resources expended	281	387	383	848	506
Net movement in funds	(70)	734	144	(124)	(922)
Summary of assets and liabilities
	2018	2019	2020	2021	2022
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Summary of financial and operational	information
	2018	2019	2020	2021	2022
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Page 31

Charitable activities

��

Activities undertaken directly (DCA)

��

Grant Disbursements

��

Charitable Grant Payments by Sector (USD$m)

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SRHR – 2021 US$68m
SRHR – 2022 US$94m
Girl Capital – 2021 US$21m
Girl Capital – 2022 US$18m
Child Health – 2021 US$100m
Child Health – 2022 US$105m
Child Protection – 2021 US4m
Child Protection – 2022 US3m
Climate – 2021 US190m
Climate – 2022 US222m
Cross Cutting – 2021 US$86m
Cross Cutting – 2022 US$88m
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Total Payments US$m
2021 US$468m
2022 US$530m
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Page 32

Investment Review

Investment strategy

��

��
��
��
��

Asset growth

��

Investment returns

��

Investment management costs

�� management of the endowment assets.

Asset allocation

�� by asset type is set out in the chart below.

Percentage total asset allocation by asset type (including cash)

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Investment Funds
US$0.0 billion
Loans
US$1 billion
Equities 2022 US$5.3billion Cash
US$3.9 billion
US$0.2 billion
Other
US$0.2 billion
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Page 33

Risk Management and Key Policies

Risk Management

��

Investment Risk Management

Investment Policy

��

Page 34

��

��

��
��
�� transfer or sale of arms.

��

�� statements.

Cash Management Policy

�� the Trustees and, if necessary, amended.

��

��
�� and

��

��

Page 35

Financial risk management

Internal controls

��

Granting Policy

��

�� year contract.

��

Reserves Policy

�� future commitments.

Page 36

Unrestricted reserves

Designated funds

��

Operational Reserves

��

�� referred to below, draw on the expendable endowment to meet those commitments as necessary.

��

Restricted Funds

��

Expendable Endowment Funds

��

Page 37

Structure and Governance

��

Subsidiary Companies

��

The Board of Trustees

��

Sir Christopher Hohn

��

The Finance, Audit and Investment Committee

��

Page 38

Programme Investment Committee, Climate

��

Programme Investment Committee, Children

��

Impact Investment Committee

��

CEO Delegated Authority

��

Risk and Impact Committee

��

Remuneration Committee

��

Page 39

Remuneration Report and Other Governance

The principles of the remuneration policy

��

Remuneration of Key Management Personnel

	31 December 2022	31 December 2021
	US$’000	US$’000
Executive Directors	3,205	3,664
Employer Pension Contributions	62	61
Employer National Insurance Contributions	345	374
Total Consideration	3,612	4,099

��

Relationship with Other Charities

��

Foundation Objectives and Public Benefit

�� determine.

��

Political Contributions

��

Charity Governance Code

��

Relevant Audit Information

��

Page 40

Trustees' Responsibility and Financial Statements

Statement of trustees’ responsibilities in respect of the trustees’ report and the financial statements

��

��
�� and
��

�� whether

��

Independent Audit

��

�� directors.

��

Sir Christopher Hohn Chairman

��

Page 41

Independent Auditors Report to the members of the Children's Investment Fund Foundation (UK)

Page 42

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE CHILDREN’S INVESTMENT FUND FOUNDATION (UK)

Report on the audit of the financial statements

Opinion

We have audited the English language version of the financial statements of The Children’s Investment Fund Foundation (UK) (‘the Foundation’) and its subsidiaries (‘the Group’) for the year ended 31 December 2022, which comprise the Consolidated Statement of Financial Activities, Consolidated and Foundation Balance Sheets, Consolidated Cash Flow Statement, and related notes, including the summary of significant accounting policies set out in note 2. The financial reporting framework that has been applied in their preparation is UK Law and FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland .

In our opinion:

• the financial statements give a true and fair view of the state of the Group’s and Foundation’s affairs as at 31 December 2022 and of the Group’s incoming resources and application of resources including its income and expenditure for the year then ended;

• the financial statements have been properly prepared in accordance with FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland ; and

• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with ethical requirements that are relevant to our audit of financial statements in the UK, including the Financial Reporting Council (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

The trustees have prepared the financial statements on the going concern basis as they do not intend to liquidate the Group or the Foundation or to cease their operations, and as they have concluded that the Group and the Foundation’s financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over their ability to continue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”).

In our evaluation of the trustees' conclusions, we considered the inherent risks to the Group’s business model and analysed how those risks might affect the Group and the Foundation’s financial resources or ability to continue operations over the going concern period.

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 Group or the Foundation’s ability to continue as a going concern for a period of at least twelve months from the date 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.

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE CHILDREN’S INVESTMENT FUND FOUNDATION (UK) (continued)

However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the absence of reference to a material uncertainty in this auditor's report is not a guarantee that the Group or the Foundation will continue in operation.

Detecting irregularities including fraud

We identified the areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements and risks of material misstatement due to fraud, using our understanding of the entity's industry, regulatory environment and other external factors and inquiry with the directors. In addition, our risk assessment procedures included: inquiring with the directors and management as to the Group’s policies and procedures regarding compliance with laws and regulations and prevention and detection of fraud; inquiring whether the directors have knowledge of any actual or suspected non-compliance with laws or regulations or alleged fraud; inspecting the Foundation’s regulatory and legal correspondence; and reading Board of Trustee and Finance Committee minutes.

We discussed identified laws and regulations, fraud risk factors and the need to remain alert among the audit team.

The Group is subject to laws and regulations that directly affect the financial statements including companies and financial reporting legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items, including assessing the financial statement disclosures and agreeing them to supporting documentation when necessary.

The Group is not subject to other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements.

Auditing standards limit the required audit procedures to identify non-compliance with these non-direct laws and regulations to inquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. These limited procedures did not identify actual or suspected non-compliance.

We assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. As required by auditing standards, we performed procedures to address the risk of management override of controls. On this audit we do not believe there is a fraud risk related to revenue recognition.

In response to risk of fraud, we also performed procedures including: identifying journal entries to test based on risk criteria and comparing the identified entries to supporting documentation; evaluating the business purpose of significant unusual transactions; assessing significant accounting estimates for bias; and assessing the disclosures in the financial statements.

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 remains 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 non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

Other information

The trustees are responsible for the other information presented in the Annual Report together with the financial statements. The other information comprises the Message from the Chair, the Message from the CEO, the information included within the Trustees’ Report, the information included within the Strategic Report, the Statement of Trustees’ Responsibilities and the Group Information. The financial statements and our auditor’s report thereon do not comprise part of the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. Based solely on that work we have not identified material misstatements in the other information.

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE CHILDREN’S INVESTMENT FUND FOUNDATION (UK) (continued)

Opinions on other matters prescribed by the Companies Act 2006

Based solely on our work on the other information undertaken during the course of the audit:

we have not identified material misstatements in the trustees' report;
in our opinion, the information given in the trustees’ annual report is consistent with the financial statements;
in our opinion, the trustees’ annual report has been prepared in accordance with the Companies Act 2006.

Matters on which we are required to report by exception

Under the Companies Act 2006 we are required to report to you if, in our opinion:

adequate accounting records have not been kept by the Foundation, or returns adequate for our audit have not been received from branches not visited by us; or
the Foundation’s financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

We have nothing to report in these respects.

Respective responsibilities and restrictions on use

Responsibilities of the trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 41, the trustees are responsible for: the preparation of the financial statements including being satisfied that they give a true and fair view; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; assessing the Group‘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 they either intend to liquidate the Group or the Foundation or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud, other irregularities or error, and to issue an opinion in an auditor’s report. 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, other irregularities 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. A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities.

The purpose of our audit work and to whom we owe our responsibilities

Our report is made solely to the Foundation’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Foundation’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Foundation and the Foundation’s members, as a body, for our audit work, for this report, or for the opinions we have formed.

Brian Clavin Senior Statutory Auditor for and on behalf of KPMG, Statutory Auditor 1 Harbourmaster Place IFSC Dublin 1 Ireland

15 June 2023

THE CHILDREN’S INVESTMENT FUND FOUNDATION (UK) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2022

Income from Donations and legacies 3 Investments Total incoming resources Expenditure on Raising funds Charitable activities Total resources expended Net loss on investments Foreign Exchange losses Exchange differences on translating foreign currency operations Net Income/(expenditure) Transfers Net movement in funds Fund balances carried forward at 1 January 2022 Fund balances carried forward at 31 December 2022	Year ended Unrestricted Restricted Expendable 31 Dec 2022 Funds Funds Endowment Total Notes US$ ‘000 US$ ‘000 US$ ‘000 US$ ‘000
	and 21 - 20,756 - 20,756 4 - - 51,101 51,101
	- 20,756 51,101 71,857
	4 15,344 - - 15,344 5 473,057 17,554 - 490,611
	488,401 17,554 - 505,955
	14 - - (477,397) (477,397) 14 (971) - - (971) - - (10,014) (10,014)
	(489,372) 3,202 (436,310) (922,480)
	21 452,840 (3,074) (449,766) -
	(36,532) 128 (886,076) (922,480)
	950,853 8,099 4,922,190 5,881,142 914,321 8,227 4,036,114 4,958,662

The consolidated Statement of Financial Activities ("SOFA") has been prepared on the basis that all activities are continuing. All gains and losses recognised in the year are included in the SOFA.

The accounting policies and the notes on pages 50 to 85 form part of the Consolidated Financial Statements.

Page 46

THE CHILDREN'S INVESTMENT FUND FOUNDATION (UK) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2021

Income from Donations and legacies 3 Investments Total incoming resources Expenditure on Raising funds Charitable activities Total resources expended Net gains on investments Foreign Exchange gains Exchange differences on translating foreign currency operations Net Income/(expenditure) Transfers Net movement in funds Fund balances carried forward at 1 January 2021 Fund balances carried forward at 31 December 2021	Year ended Unrestricted Restricted Expendable 31 Dec 2021 Funds Funds Endowment Total Notes US$ ‘000 US$ ‘000 US$ ‘000 US$ ‘000
	and 21 - 4,290 - 4,290 4 - - 24,468 24,468
	- 4,290 24,468 28,758
	4 19,335 - - 19,335 5 825,349 2,902 - 828,251
	844,684 2,902 - 847,586
	14 - - 694,914 694,914 14 (456) - - (456) - - - -
	(845,140) 1,388 719,382 (124,370)
	21 1,153,414 - (1,153,414) -
	308,274 1,388 (434,032) (124,370)
	642,579 6,711 5,356,222 6,005,512 950,853 8,099 4,922,190 5,881,142

The consolidated SOFA has been prepared on the basis that all activities are continuing. All gains and losses recognised in the year are included in the SOFA.

The accounting policies and the notes on pages 50 to 85 form part of the Consolidated Financial Statements.

Page 47

THE CHILDREN’S INVESTMENT FUND FOUNDATION (UK) CONSOLIDATED AND FOUNDATION BALANCE SHEET FOR THE YEAR ENDED 31 DECEMBER 2022

Fixed Assets Intangible assets Tangible assets Investments of which loans of which other investments Total fxed assets Current Assets Debtors Cash at bank and in hand Cash pledged as collateral Total current assets Creditors:amounts falling due within one year Net current assets/liabilities Total Assets less current liabilities Creditors:amounts falling due after one year Net Assets Total funds of the charity: Expendable endowment fund Restricted funds Unrestricted funds: Designated funds Total charity funds	Group Group Foundation Foundation 31 Dec 2022 31 Dec 2021 31 Dec 2022 31 Dec 2021 Notes US$ ‘000 US$ ‘000 US$ ‘000 US$ ‘000
	12 500 500 - - 13 9,327 9,234 1,114 1,204 14 5,118,867 5,899,121 5,210,881 6,788,913 *1,009,917* 1,554,960 *5,074,561* 5,934,320 *4,108,950* 4,344,161 *136,320* 854,593
	5,128,694 5,908,855 5,211,995 6,790,117
	17 6,824 14,571 5,497 993 18 181,738 424,160 62,752 64,284 18 332 14,770 - -
	188,894 453,501 68,249 65,277
	19 (210,953) (257,349) (176,310) (756,664)
	(22,059) 196,152 (108,061) (691,387)
	5,106,635 6,105,007 5,103,934 6,098,730
	20 (147,973) (223,865) (144,000) (217,000)
	4,958,662 5,881,142 4,959,934 5,881,730
	21 4,036,114 4,922,190 4,045,613 4,930,877 21 8,227 8,099 - - 21 914,321 950,853 914,321 950,853
	4,958,662 5,881,142 4,959,934 5,881,730

The financial statements on pages 46 to 86 were approved by the Trustees and authorised for issue on

15 June 2023, and signed on their behalf by:

Sir Christopher Hohn Chairman 15 June 2023

The accounting policies and the notes on pages 50 to 85 form part of the Consolidated Financial Statements.

Page 48

Consolidated Cash Flow Statement

Net cash used in operating activities Cash fow from investing activities: Dividends received Interest received Rental income received Proceeds from the sale of: Investments Purchase of: Tangible fxed assets Investments Net cash used in investing activities Cash fows from fnancing activities Interest paid Net cash used in fnancing activities Change in cash and cash equivalents in the reporting year Cash and cash equivalents at the beginning of the reporting year Effect of exchange rate movements on cash and cash equivalents Cash and cash equivalents at the end of the reporting year	31 Dec 2022 31 Dec 2021 US$ ‘000 US$ ‘000
	(398,465) (223,811) 41,527 20,817 6,495 1,574 3,961 1,685 1,651,849 2,318,360 (1,543) (2,183) (1,534,945) (1,796,044)
	167,344 544,209
	(316) (153)
	(316) (153)
	(231,437) 320,245
	424,160 104,371 (10,985) (456)
	181,738 424,160

Reconciliation of incoming resources to net cash flows

	31 Dec 2022	31 Dec 2021
	US$ ‘000	US$ ‘000
Net gain/(loss) for the reporting year (as per the statement of fnancial activities)	(922,480)	(124,370)
Adjustments for:
Net loss/(gain) on investments	663,350	(456,570)
Dividends income	(40,645)	(21,209)
Foreign exchange movements	10,985	456
Interest income on investments	(6,495)	(1,574)
Interest expense	1,005	317
Depreciation charges	1,450	451
Decrease in debtors	2,904	17,207
Decrease in cash pledged as collateral	14,438	80,246
(Decrease)/increase in creditors	(122,977)	281,235
Net cash used in operating activities	(398,465)	(223,811)

The accounting policies and the notes on pages 50 to 85 form part of the Consolidated Financial Statements.

Page 49

Notes to the Consolidated Financial Statements

1. BASIS OF PREPARATION

a) Basis of accounting

��

b) Functional currency and presentational currency

��

c) Basis of consolidation

��

2. ACCOUNTING POLICIES

��

a) Critical accounting estimates and judgements in applying accounting policies

��

Page 50

2. ACCOUNTING POLICIES

��

b) New and amended standards and interpretations

��

c) Incoming resources

�� with reasonable certainty.

��

�� accuracy.

d) Resources expended

�� recognised in most cases annually, when the criteria for recognising the liability are met.

��

��
	2022	2021
Climate Change	48.4%	50.5%
Sexual & Reproductive Health & Rights	19.7%	20.0%
Girl Capital	3.2%	2.5%
Child Health & Development	24.4%	22.7%
Child Protection	0.7%	0.2%
Cross Cutting	3.6%	4.1%

��

Page 51

2. ACCOUNTING POLICIES

e) Financial assets and liabilities

i.) Financial assets

Initial recognition and measurement

��

Financial assets measured at amortised cost

�� cash at bank and in hand, cash pledged as collateral and debtors.

Financial assets measured at fair value through profit or loss

��

Impairment of financial assets

��

Page 52

2. ACCOUNTING POLICIES

as collateral comprise cash at banks and in hand, on demand and interest bearing deposits with a maturity of three months or ��

��

Derecognition of financial assets

�� as a separate asset or liability.

ii.) Financial liabilities

Initial recognition and measurement

��

Financial liabilities measured at amortised cost

�� includes in this category amounts due to brokers, grants, accruals and deferred income and other payables.

Financial liabilities measured at fair value through profit or loss

��

f) Investments

Listed and unlisted securities

��

Page 53

2. ACCOUNTING POLICIES

Unfunded commitments

�� end.

��

Derivative contracts

��

Investment funds

��

Investment property

��

Leased assets

��

Page 54

2. ACCOUNTING POLICIES

Investments in subsidiaries

��

Loans

��

Private placement

��

Programme related investments

��

Mixed motive investments

��

g) Foreign currency translation

��

h) Intangible assets and amortisation

��

Page 55

2. ACCOUNTING POLICIES

��

i) Tangible fixed assets and depreciation

�� and machinery is 8 years.

��

j) Cash and cash equivalents

��

k) Cash pledged as collateral

��

l) Amounts due from/to brokers

��

m) Debtors

��

n) Creditors

��

o) Funds

��

�� restricted purposes.

Page 56

2. ACCOUNTING POLICIES

�� Funds to meet those commitments.

p) Taxation

��

q) Operating Leases

��

3. DONATIONS AND LEGACIES

��

4. INCOME FROM INVESTMENTS AND EXPENDITURE ON RAISING FUNDS

4 (a) Income from investments

��

Dividend income Interest income Rental income	Group year ended Group year ended 31 December 2022 31 December 2021 US$ ’000 US$ ’000 40,645 21,209 6,495 1,574 3,961 1,685
	51,101 24,468

4 (b) Expenditure on raising funds

��

Page 57

5. EXPENDITURE ON CHARITABLE ACTIVITIES

	Grant Funding	Activities	Support	Total Charitable
	of Activities	Undertaken Directly	Cost	Activities
	2022(1)	2022(2)	2022 (3)	2022
	US$ ‘000	US$ ‘000	US$ ‘000	US$ ‘000
Climate Change	214,939	1,227	18,168	234,334
Sexual & Reproductive Health & Rights	87,402	668	7,972	96,042
Girl Capital	14,337	60	1,372	15,769
Child Health & Development	108,698	-	6,483	115,181
Child Protection	3,305	-	346	3,651
Cross Cutting(4)	15,918	2,576	7,140	25,634
	444,599	4,531	41,481	490,611
	Grant Funding	Activities	Support	Total Charitable
	of Activities	Undertaken Directly	Cost	Activities
	2021	2021	2021	2021
	US$ ‘000	US$ ‘000	US$ ‘000	US$ ‘000
Climate Change	213,494	440	18,065	231,999
Sexual & Reproductive Health & Rights	84,706	286	7,707	92,699
Girl Capital	10,693	-	838	11,531
Child Health & Development	95,919	262	6,183	102,364
Child Protection	688	-	994	1,682
Cross Cutting(4)	377,242	1,750	8,984	387,976
	782,742	2,738	42,771	828,251

(1) See note 7

(2) See note 6

(3) See note 8

(4) The Group and Foundation's activities including External Affairs, Evidence Measurement & Evaluation, Organisation Development and Impact Investing are classified under Cross Cutting.

6. ACTIVITIES UNDERTAKEN DIRECTLY

��

Page 58

7. GRANT FUNDING OF ACTIVITIES

Grantees receiving charitable grants African Climate Foundation Amref Health Africa APCON Enterprises Limited Clean Air Fund ClientEarth DKT International END Fund Energy Foundation China European Climate Foundation Foundation for International Law for the Environment Global Fund to fght AIDS, Tuberculosis and Malaria Instituto Clima e Sociedade IPE Global Limited Living Goods MSI Reproductive Choices Pfzer PSI Rockefeller Philanthropy Advisors, Inc Sightsavers Tara Climate Foundation The Carter Center The Sunrise Project Triggerise United Nations Children's Fund Windward Fund World Resources Institute World Vision Ethiopia (1)Other Grantees Total charitable grants Group and Foundation 2022	Grantees receiving charitable grants African Climate Foundation Amref Health Africa APCON Enterprises Limited Clean Air Fund ClientEarth DKT International END Fund Energy Foundation China European Climate Foundation Foundation for International Law for the Environment Global Fund to fght AIDS, Tuberculosis and Malaria Instituto Clima e Sociedade IPE Global Limited Living Goods MSI Reproductive Choices Pfzer PSI Rockefeller Philanthropy Advisors, Inc Sightsavers Tara Climate Foundation The Carter Center The Sunrise Project Triggerise United Nations Children's Fund Windward Fund World Resources Institute World Vision Ethiopia (1)Other Grantees Total charitable grants Group and Foundation 2022	Sexual & Reproductive Health & Rights US$ '000 Girl Capital US$ '000 Climate Change US$ ‘000 Child Health and Development US$ '000 Child Protection US$ '000 Cross Cutting US$ '000 Total US$ ‘000
		6,205 - - - - - 6,205 - 5,000 - - - - 5,000 - - - 6,002 - - 6,002 4,353 - - - - - 4,353 7,502 - - - - - 7,502 - 4,792 - - - - 4,792 - - - 17,904 - - 17,904 7,300 - - - - - 7,300 39,054 - - - - - 39,054 15,783 - - - - - 15,783 - 10,000 - - - - 10,000 5,264 - - - - - 5,264 - - 814 3,218 - - 4,032 - - - 5,167 - - 5,167 - 22,364 - - - - 22,364 - 11,805 - - - - 11,805 - 7,064 4,529 - - - 11,593 22,434 - - - - 300 22,734 - - - 5,607 - - 5,607 7,500 - - - - - 7,500 - - - 5,000 - - 5,000 12,363 - - - - - 12,363 - 5,410 - - - - 5,410 - - - 9,880 - - 9,880 10,000 - - - - - 10,000 7,417 - - - - - 7,417 - - - 17,120 - - 17,120 69,764 20,967 8,994 38,800 3,305 15,618 157,448
		214,939 87,402 14,337 108,698 3,305 15,918 444,599

Page 59

7. GRANT FUNDING OF ACTIVITIES – continued

		Sexual &
		Reproductive		Child Health
Group and Foundation 2021	Climate	Health &		and	Child	Cross
	Change	Rights	Girl Capital	Development	Protection	Cutting	Total
	US$ ‘000	US$ '000	US$ '000	US$ '000	US$ '000	US$ '000	US$ ‘000
Grantees receiving charitable grants
Becton Dickinson	-	5,750	-	-	-	-	5,750
Big Win Philanthropy	-	-	-	-	-	360,000	360,000
C40 Cities climate Leadership Group Inc.	15,500	-	-	-	-	-	15,500
CDP	5,044	-	-	-	-	-	5,044
Clean Air Fund	6,700	-	-	-	-	264	6,964
Client Earth	5,455	-	-	-	-	341	5,796
Crown Agents	-	-	-	13,128	-	-	13,128
DKT International	-	4,680	-	-	-	-	4,680
Energy Foundation China	11,600	-	-	900	-	-	12,500
European Climate Foundation	42,959	-	-	-	-	314	43,273
Foundation for International
Law for the Environment	21,955	-	-	-	-	300	22,255
Global Fund to fght AIDS,
Tuberculosis and Malaria	-	5,931	-	-	-	-	5,931
Instituto Clima e Sociedade	4,686	-	-	-	-	-	4,686
IPE Global Limited	-	-	3,618	5,946	-	-	9,564
Living Goods	-	-	-	6,247	-	752	6,999
Marie Stopes International	-	19,441	-	-	-	-	19,441
Meridian Institute	4,450	-	-	-	-	-	4,450
One Acre Fund	-	-	-	5,372	-	-	5,372
PSI	-	9,422	-	-	-	-	9,422
Rockefeller Philanthropy Advisors, Inc	18,767	-	-	-	-	500	19,267
Sightsavers	-	-	-	4,915	-	-	4,915
Splash.org	-	-	-	4,770	-	-	4,770
Swiss Philanthropy Foundation	4,728	-	-	-	-	-	4,728
The Sunrise Project	7,164	-	-	-	-	-	7,164
Triggerise	-	8,394	-	-	-	-	8,394
United Nations Children's Fund	-	-	-	10,818	-	-	10,818
United Nations Population Fund	-	10,000	-	-	-	-	10,000
World Resources Institute	6,800	-	-	-	-	-	6,800
World Vision Ethiopia	-	-	-	16,703	-	-	16,703
(1)Other Grantees	57,686	21,088	7,075	27,120	688	14,771	128,428
Total charitable grants	213,494	84,706	10,693	95,919	688	377,242	782,742

(1) The grants included within ‘Other grantees’ for 2022 totalled less than US$4.0m (2021: US$4.0m) in value for each organisation.

Page 60

8. ALLOCATION OF SUPPORT COSTS

Support costs Staff costs (Note 10) Offce expenses Governance costs (Note 9) Travel and subsistence Consultancy and contractor costs Total support costs allocated to charitable activities Support costs Staff costs (Note 10) Offce expenses Governance costs (Note 9) Travel and subsistence Consultancy and contractor costs Total support costs allocated to charitable activities 2022 2021	Climate Change US$ ‘000 Child Health and Development US$ '000 Child Protection US$ '000 Cross Cutting US$ '000 Total US$ ‘000 Girl Capital US$ '000 Sexual & Reproductive Health & Rights US$ '000
	12,591 5,564 964 4,111 242 5,732 29,204 2,930 1,177 193 1,460 45 229 6,034 258 105 17 130 4 19 533 1,037 487 65 363 16 435 2,403 1,352 639 133 419 39 725 3,307
	18,168 7,972 1,372 6,483 346 7,140 41,481
	Climate Change US$ ‘000 Child Health and Development US$ '000 Child Protection US$ '000 Cross Cutting US$ '000 Total US$ ‘000 Girl Capital US$ '000 Sexual & Reproductive Health & Rights US$ '000
	11,079 4,736 501 3,370 760 7,155 27,601 3,328 1,308 166 1,479 16 322 6,619 2,242 890 112 1,009 7 180 4,440 80 28 6 42 7 24 187 1,336 745 53 283 204 1,303 3,924
	18,065 7,707 838 6,183 994 8,984 42,771

The allocation method of support costs have been discussed in Note 2(d).

9. GOVERNANCE COSTS

Auditors' remuneration Legal fees Professional fees	Group year ended Group year ended 31 December 2022 31 December 2021 US$ ‘000 US$ ‘000
	270 296 177 4,074 86 70
	533 4,440

The auditors’ remuneration, for the year ended 31 December 2022 is split between KPMG US$238k (2021: US$274k), S.P. Nagrath (India liaison office auditors) US$11k (2021: US$10k),Mazars (China office auditors) US$9k (2021: US$8k) and MSE Auditors Partnership (Ethiopia office auditors) US$12k (2021: US$4k).

Page 61

10. STAFF COSTS

Wages and salaries Social security costs Other pension costs Other staff costs Total staff costs	Group and Foundation Group and Foundation year ended year ended 31 December 2022 31 December 2021 US$ ‘000 US$ ‘000
	23,726 22,701 1,899 1,924 1,090 1,054
	26,715 25,679 2,489 1,922
	29,204 27,601

The average monthly number of employees (based on the 12-month period) who were employed during the year totalled: 195 (2021: 167). The staff numbers were split between direct activities: 156 (2021: 132) and indirect support: 39 (2021: 35). The number of employees of the Group and Foundation whose remuneration paid in the financial year fell within the following bands were:

Total Remuneration Bandings $71k - $85k $85k - $99k $99k - $113k $113k - $127k $127k - $141k $141k - $155k $155k - $169k $169k - $183k $183k - $197k $197k - $211k $211k - $225k $225k - $239k $239k - $254k $254k - $268k $268k - $282k $296k - $310k $324k - $338k $338k - $352k $352k - $366k $366k - $380k $408k - $423k $423k - $437k $437k - $451k $451k - $465k $493k - $507k $521k - $535k $591k - $605k	Group and Group and Foundation 2022 Foundation 2021
	23 18 13 9 13 17 9 7 9 11 10 6 4 5 7 1 4 11 5 2 4 2 2 2 3 1 - 5 - 2 - 2 1 - 1 1 - 1 - 1 1 - - 2 - 1 1 1 1 - 1 - - 1

Total Remuneration
Bandings
$71k - $85k
$85k - $99k
$99k - $113k
$113k - $127k
$127k - $141k
$141k - $155k
$155k - $169k
$169k - $183k
$183k - $197k
$197k - $211k
$211k - $225k
$225k - $239k
$239k - $254k
$254k - $268k
$268k - $282k
$296k - $310k
$324k - $338k
$338k - $352k
$352k - $366k
$366k - $380k
$408k - $423k
$423k - $437k
$437k - $451k
$451k - $465k
$493k - $507k
$521k - $535k
$591k - $605k

Group and
Group and
Foundation 2022
Foundation 2021

23
18
13
9
13
17
9
7
9
11
10
6
4
5
7
1
4
11
5
2
4
2
2
2
3
1
-
5
-
2
-
2
1
-
1
1
-
1
-
1
1
-
-
2
-
1
1
1
1
-
1
-
-
1

Charity SORP requires disclosure of the number of employees whose total employee benefit (excluding employer pension costs) exceeded £60k during the reporting period split in bands of £10k. The Foundation use a functional and presentational currency of USD therefore a threshold of $71k and bandings of $14k have been used, which materially translate to the GBP SORP requirements. Salaries include benefits in kind and are paid in a number of currencies including GBP, which has been translated at the average rate of US$1:£0.81 (2021: US$1:£0.73).

The contributions in the year for the provision of a defined contribution pension scheme to employees of the Foundation were US$1,090k (2021: US$981k). The number of staff who were members of the scheme was 219 (2021: 211).

The Trustees did not receive any remuneration for their services during the year (2021: US$nil). The Trustees’ expenses reimbursed for travel and subsistence during the year amounted to US$12k (2021: US$12k). In 2022, the reimbursed expenses are related to one Trustee (2021: one Trustee).

Page 62

Executive Directors Employer Pension Contributions Employer National Insurance Contributions Total Consideration Remuneration of Key Management Personnel	31 December 2022 31 December 2021 US$’000 US$’000
	3,205 3,664 62 61 345 374
	3,612 4,099

The Key Management Personnel of the Foundation have been defined as the:

The Board of Trustees (who are not remunerated in their capacity as Trustees).
The Executive Directors of the Foundation, who are responsible for the day to day running of the organisation.

The total remuneration to Key Management Personnel is summarised in the table above. Remuneration includes salaries, benefits in kind, bonuses, termination payments and employer pension contributions.

11. TAXATION

The Group Companies, CIFF Capital, CIFF Newco, CIFF Inv, CIFF II, CIFF III, CIFF IP, CIFF GP, CIFF Water, 86th LLP, 11th LLP and Chiswick did not realise any taxable profit in this financial year, therefore have no tax liability. The subsidiary company, Talos, incurred US$4k (2021: US$1k) of Irish corporation tax and US$nil of withholding tax (2021: US$nil). In 2022, the subsidiary company, CIFF II, did not incur any deferred tax (2021: US$3k deferred tax expense).

12. INTANGIBLE FIXED ASSETS

Cost brought forward Additions during the year At year end Amortisation brought forward Charge for the year At year end Net book value At year end Group	31 December 2021 US$ ‘000 31 December 2022 US$ ‘000
	500 500 - -
	500 500
	- - - -
	- -
	500 500

The intangible asset continues to be under development and testing during 2022. As per FRS 102, no amortisation is recorded as the intangible asset is not ready for its intended use.

Page 63

13. TANGIBLE FIXED ASSETS

Cost brought forward Additions during the year Disposals during the year At year end Depreciation brought forward Charge for the year At year end Net book value At year end Group	Machinery 31 December 2022 US$' 000 Fixtures and Fittings 31 December 2022 US$' 000 Total 31 December 2022 US$' 000 Total 31 December 2021 US$' 000
	8,030 2,607 10,637 8,454 1,118 425 1,543 2,183 - - - -
	9,148 3,032 12,180 10,637
	- 1,403 1,403 952 935 515 1,450 451
	935 1,918 2,853 1,403
	8,213 1,114 9,327 9,234

Cost brought forward Additions during the year Disposals during the year At year end Depreciation brought forward Charge for the year At year end Net book value At year end Foundation	Fixtures and Fittings 31 December 2021 US$' 000 Fixtures and Fittings 31 December 2021 US$' 000
	2,607 1,982 425 625 - -
	3,032 2,607
	1,403 952 515 451
	1,918 1,403
	1,114 1,204

Page 64

14. INVESTMENTS

Group Investments

The tables below present the Group investments asset and liability composition:

Equities Investment funds 14(d) Investment properties Mixed motive investments 14(c) Programme related investments 14(b) Forward foreign exchange contracts Loans and receivables Total Financial Assets Equity swaps Forward foreign exchange contracts 19 Total Financial Liabilities Realised gains/(losses) on fnancial assets and liabilities Unrealised gains/(losses) on fnancial assets and liabilities Foreign exchange gains/(losses) on fnancial assets and liabilities Total gains/(losses) recognised in relation to fnancial assets and liabilities at fair value through the SOFA Group Financial Assets Group Financial Liabilities Gains/(losses) recognised in relation to fnancial assets and liabilities at fair value through the SOFA Notes Notes	Notes	31 December 2021 US$ '000 31 December 2022 US$ '000
	14(d) 14(c) 14(b) Notes	3,932,409 4,147,104 30 61,001 64,113 71,945 46,417 34,265 12,053 12,633 53,928 17,213
		4,108,950 4,344,161
		1,009,917 1,554,960
		5,118,867 5,899,121
		31 December 2021 US$ '000 31 December 2022 US$ '000
		- 222 14,430 17,619
		14,430 17,841
		Year ended 31 December 2021 US$ '000 Year ended 31 December 2022 US$ '000
		336,348 645,569 (813,745) 49,345 (477,397) 694,914 (971) (456) (478,368) 694,458

Page 65

The table below presents the movement of the group financial assets from the 31st of December 2021 to the 31st of December 2022:

UK Overseas Total unquoted UK Overseas Total quoted Total Group	Fair value at 31/12/21 US$ ‘000 Additions US$ ‘000 Disposals US$ ‘000 Investment gains/(losses) US$ ‘000 Fair value at 31/12/22 US$ ‘000 Cost at 31/12/22 US$ ‘000
	382,446 19,556 (95,910) (18,705) 287,387 363,515 1,352,359 171,144 (629,443) (48,916) 845,144 1,090,963
	1,734,805 190,700 (725,353) (67,621) 1,132,531 1,454,478
	72,915 - (66,114) (6,801) - - 4,091,401 1,344,245 (860,382) (588,928) 3,986,336 3,919,158
	4,164,316 1,344,245 (926,496) (595,729) 3,986,336 3,919,158
	5,899,121 1,534,945 (1,651,849) (663,350) 5,118,867 5,373,636 (1)

(1) The difference between total losses above of US$663,350k and the SOFA loss of US$478,368k, (sum of net losses on investments of US$477,397k and foreign exchange losses of US$971k) is due to the realised and unrealised gain on short forward foreign exchange contracts of US$77,296k which are disclosed within creditors: amounts falling due within one year, interest on loans of US$107,686k and foreign exchange movements on the cash balances held by the Group throughout the period as well as gains and losses incurred through the foreign exchange overlay.

The table below presents the movement of the group financial assets from the 31st of December 2020 to the 31st of December 2021:

UK Overseas Total unquoted UK Overseas Total quoted Total Group	Fair value at 31/12/20 US$ ‘000 Additions US$ ‘000 Disposals US$ ‘000 Investment gains/(losses) US$ ‘000 Fair value at 31/12/21 US$ ‘000 Cost at 31/12/21 US$ ‘000
	802,137 318,417 (736,023) (2,085) 382,446 477,090 1,790,438 65,965 (484,828) (19,216) 1,352,359 1,518,910
	2,592,575 384,382 (1,220,851) (21,301) 1,734,805 1,996,000
	- 66,114 - 6,801 72,915 66,114 3,372,292 1,345,548 (1,097,509) 471,070 4,091,401 3,292,273
	3,372,292 1,411,662 (1,097,509) 477,871 4,164,316 3,358,387
	5,964,867 1,796,044 (2,318,360) 456,570 5,899,121 5,354,387 (1)

(1) The difference between total gains above of US$456,570k and the SOFA gain of US$694,458k, (sum of net gains on investments of US$694,914k and foreign exchange losses of US$456k) is due to the realised and unrealised gain on short forward foreign exchange contracts of US$94,173k which are disclosed within creditors: amounts falling due within one year, interest on loans of US$143,715k and foreign exchange movements on the cash balances held by the Group throughout the period as well as gains and losses incurred through the Foreign exchange overlay.

Page 66

Foundation Investments

The table below presents the Foundation's investment composition:

Investment in subsidiaries Programme related investments Mixed motive investments Loan to subsidiary Investment funds Total Financial Assets	14(a) 77,820 764,257 14(b) 12,053 12,633 14(c) 46,417 34,265 14(e) 5,074,561 5,931,320 14(d) 30 46,438 31 December 2022 US$ '000 31 December 2021 US$ '000 Note
	5,210,881 6,788,913

Foundation – Investments Held at Fair Value

The table below presents the movement of the Foundation’s investments held at fair value from the 31st of December 2021 to the 31st of December 2022:

UK Overseas Total unquoted	Fair value at 31/12/21 US$ '000 Additions US$ '000 Disposals US$ '000 Investment gains/(losses) US$ '000 Cost at 31/12/22 US$ '000 Fair value at 31/12/22 US$ '000
	6,687,229 - (439,854) (1,104,653) 5,142,992 5,564,914 93,336 9,103 (5,610) (38,329) 58,500 156,362
	6,780,565 9,103 (445,194) (1,142,982) 5,201,492 5,721,276

The table below presents the movement of the Foundation’s investments held at fair value from the 31st of December 2020 to the 31st of December 2021:

UK Overseas Total unquoted	Fair value at 31/12/20 US$ '000 Additions US$ '000 Disposals US$ '000 Investment gains/(losses) US$ '000 Fair value at 31/12/21 US$ '000 Cost at 31/12/21 US$ '000
	6,041,320 512,761 (549,583) 682,731 6,687,229 6,004,498 88,989 19,394 (19,644) 4,597 93,336 153,721
	6,130,309 532,155 (569,227) 687,328 6,780,565 6,158,219

Foundation - Investments Held at Cost

The table below presents the movement of the Foundation’s investments held at cost from the 31st of December 2021 to the 31st of December 2022:

UK Total quoted	8,348 1,063 (22) 9,389 Cost at 31/12/21 US$ '000 Additions US$ '000 Disposals US$ '000 Cost at 31/12/22 US$ '000
	8,348 1,063 (22) 9,389

The table below presents the movement of the Foundation’s investments held at cost from the 31st of December 2020 to the 31st of December 2021:

UK Total quoted	6,831 1,586 (69) 8,348 Cost at 31/12/20 US$ '000 Additions US$ '000 Disposals US$ '000 Cost at 31/12/21 US$ '000
	6,831 1,586 (69) 8,348

Page 67

14. INVESTMENTS

14 (a) Investments in subsidiaries

The table below details the investments held by the Foundation in its subsidiaries:

Entity Incorporated in % Holding Purpose	Proft/(loss) US$ '000
	2022 ��
CIFF (UK) Newco Limited ("CIFF Newco") England & Wales 100 (1) Talos Capital Designated Activity Company ("Talos") Ireland 100 (2) CIFF Capital UK LP (''CIFF Capital'') England & Wales 100 (3) CIFF Investments LLP (''CIFF Inv'') England & Wales 100 (4) CIFF IP Co Limited (''CIFF IP'') England & Wales 100 (5) CIFF Investments II Limited ("CIFF II") England & Wales 100 (6) CIFF Investments III LLP ("CIFF III") England & Wales 100 (7) CIFF General Partner Limited (“CIFF GP”) England & Wales 100 (8) CIFF Water Limited ("CIFF Water") England & Wales 100 (9) 86th Street Lender LLP ("86th LLP") England & Wales 100 (10) 11th Avenue Lender LLP ("11th LLP") England & Wales 100 (11) Chiswick Riverside LLP ("Chiswick") England & Wales 98 (12)	- - 7 4 (418,176) 680,924 32,521 15,945 (17) (20) 3,829 12,496 855 5,022 - - (963) (34) (94) 274 (194) (42,127) 3,289 517

Entity
Incorporated in
% Holding
Purpose

Proft/(loss) US$ '000

2022
��

CIFF (UK) Newco Limited ("CIFF Newco")
England & Wales
100
(1)
Talos Capital Designated Activity Company ("Talos")
Ireland
100
(2)
CIFF Capital UK LP (''CIFF Capital'')
England & Wales
100
(3)
CIFF Investments LLP (''CIFF Inv'')
England & Wales
100
(4)
CIFF IP Co Limited (''CIFF IP'')
England & Wales
100
(5)
CIFF Investments II Limited ("CIFF II")
England & Wales
100
(6)
CIFF Investments III LLP ("CIFF III")
England & Wales
100
(7)
CIFF General Partner Limited (“CIFF GP”)
England & Wales
100
(8)
CIFF Water Limited ("CIFF Water")
England & Wales
100
(9)
86th Street Lender LLP ("86th LLP")
England & Wales
100
(10)
11th Avenue Lender LLP ("11th LLP")
England & Wales
100
(11)
Chiswick Riverside LLP ("Chiswick")
England & Wales
98
(12)

-
-
7
4
(418,176)
680,924
32,521
15,945
(17)
(20)
3,829
12,496
855
5,022
-
-
(963)
(34)
(94)
274
(194)
(42,127)
3,289
517

In liquidation
** Indirect holdings

*** Economic entitlement only

(1) CIFF Newco was a holding company for certain CIFF UK investment. In November 2021, it was placed into voluntary liquidation and the voluntary liquidator was appointed. As of 31 December 2022, the liquidation is ongoing.
(2) Talos held an underlying investment portfolio that was managed to provide the Foundation with investment return prior to restructure in 2020. During the restructuring in 2020, investment assets held by Talos were transferred to CIFF Capital. At 31 December 2022, its total assets amounted to US$9,916k (2021: US$45,644k), total liabilities amounted to US$9,889k (2021: US$45,624k), and net assets amounted to US$27k (2021: US$20k).
(3) CIFF Capital (Company Number LP019223) was formed by limited partnership deed between the Foundation, TCI General Partner Limited and TCI Fund Management Limited. It has been established to hold investment assets for the Foundation. In 2020, CIFF GP replaced TCI General Partner Limited as general partner. CIFF Capital at all times acts through CIFF GP. Between May 2020 and October 2020, it acquired all economic interests in the Foundation’s endowment investment portfolio, previously held by Talos, to provide the Foundation with investment return. At 31 December 2022, its total assets amounted to US$5,109,396k (2021: US$6,103,580k), total liabilities amounted to US$31,295k (2021: US$61,328k) and net assets amounted to US$5,078,101k (2021: net asset of US$6,042,252k).
(4) CIFF Inv is a limited liability partnership between CIFF Capital and CIFF II that holds certain assets from the investment portfolio. In May 2020, the participating membership in CIFF Inv was transferred by Talos to CIFF Capital and, in April 2020, the non-participating membership in CIFF Inv was transferred by CIFF Trading to CIFF II.
(5) CIFF IP holds licenses to intellectual property rights in support of the charitable activities of the Foundation.
(6) CIFF II holds certain assets from the investment portfolio. In May 2020, the entire issued share capital of CIFF II was transferred by Talos to CIFF Capital. CIFF Inv is also a non-participating member in CIFF Inv, CIFF III, 86th LLP and 11th LLP.
(7) CIFF III was incorporated on 20 November 2019 by limited liability partnership deed between Talos and CIFF II to hold assets from the investment portfolio. CIFF III is a limited liability partnership between CIFF Capital and CIFF II to hold assets from the investment portfolio. In May 2020, the participating membership in CIFF III was transferred by Talos to CIFF Capital. In August 2022, it was placed into dissolution.
(8) CIFF GP was incorporated on 19 March 2020 as a wholly owned limited company of the Foundation and in April 2020, became general partner of CIFF Capital.
(9) CIFF Water Limited was incorporated on 18 June 2020 as a wholly owned subsidiary of the Foundation. The principal activity of CIFF Water is to purchase and lease assets to support charitable activities.
(10) 86th LLP was incorporated on 3 September 2020 as a limited lability partnership between Talos and CIFF II and shortly thereafter acquired an interest in an endowment asset from Talos. In October 2020, the participating membership in 86th LLP was transferred by Talos to CIFF Capital. On 10 March 2022, 86th LLP disposed of its sole privately placed loan investment. The Members will assess whether to continue with 86th LLP's investment objective going forward.
(11) 11th Ave was incorporated on 7 December 2020 as a limited lability partnership between CIFF Capital and CIFF II and shortly thereafter acquired an interest in an endowment asset from CIFF Capital. 11th Ave will continue operating for the foreseeable future. Under the loan sale agreement for the privately placed loan that was disposed of, 11th Ave gave customary representations and warranties to the purchaser, with a survival period of 12-months from the 3 December 2021 closing. As at this date the Members of 11th Ave were not aware of any breach of such representations or warranties, and as such the Members will begin a liquidation within 12 months from the end of the reporting period.
(12) Chiswick Riverside LLP was incorporated on 3 August 2021 as a limited liability partnership between the Foundation and The CH Foundation (UK) and holds UK investment property.

Page 68

14 (b) Programme Related Investments

��

14 (c) Mixed Motive Investments

�� appropriate.

��

14 (d) Investment Funds

�� constructed for sale.

��

14 (e) Loans to subsidiary

��

Page 69

15. KEY INVESTMENTS AND UNCERTAINTIES

��

31 December 2022

31 December 2022
					Range of
					estimated	Sensitivity to
					(weighted	changes in
			Fair value at		average) for	signifcant
	Valuation	31 December 2022		Signifcant	unobservable	unobservable
Asset category	method		US$ '000	unobservable input	input	input
						An increase
						in the discount rate
	Discounted				6.86% to	would result in a
Loans	cash fow		1,009,917	Discount rate	17.71%	lower fair value

31 December 2021

31 December 2021
				Range of
				estimated	Sensitivity to
				(weighted	changes
		Fair value at		average) for	in signifcant
	Valuation	31 December 2021	Signifcant	unobservable	unobservable
Asset category	method	US$ '000	unobservable input	input	input
					An increase
					in the discount rate
	Discounted			6.81% to	would result in a
Loans	cash fow	1,554,960	Discount rate	19.26%	lower fair value
					An increase
					in the discount rate
	Discounted		Weighted		would result in a
Investment Funds	cash fow	57,575	Discount rate	18%	lower fair value

When determining fair value, the Group uses valuation techniques that maximise the use of observable inputs and minimise the use of unobservable inputs. The valuation techniques used by the Group to determine the fair value are considered to be an income approach.

The income approach provides an estimation of the fair value of an investment based on expectations about the cash flows that the investment would generate over time. The Group used the yield calibration method to derive the discount rates of the loan investments. In applying the Yield calibration method, discount rate is determined by first estimating the implied yield-to-maturity, yield-to-exit, or yield-to-worst as of the latest date where the loan investment was involved in an arm’s length transaction (the “Transaction Date”). The yield as of the Transaction Date provides an observable measurement of compensation a market participant requires to hold a security. Qualifying transactions often consist of: (1) the initial primary market transaction, (2) secondary transactions and (3) amendments where the investment was re-priced. In addition, inputs used under the yield calibration method include assessment of the credit spread of comparable securities and indices and changes in credit quality of the borrower as at 31 December 2021 and 2022.

Although the Group believes that its estimates of fair value are appropriate, the use of different methodologies or assumptions could lead to different measurements of fair value.

The Group believes that use of different methodologies or assumptions in determining the fair value of the above financial instruments would result to immaterial changes in fair value.

The Group's reporting systems and the nature of the instruments and the valuation models do not allow it to accurately analyse the total annual amounts of gains/losses that are attributable to observable and unobservable inputs.

Page 70

16. FINANCIAL RISK MANAGEMENT

Principles of Risk Management

��

�� impaired.

��

�� explained below.

��

Page 71

��

Market Risk

(a) Price risk

�� price risk is managed and measured.

��

�� sector.

The table below is a summary of the sector exposures which are included in the Reference NAV for the purpose of monitoring the investment restrictions.

Sector Industrials Real estate loans Information technology Financials Consumer discretionary Other	% of Reference NAV
	2022 2021 31 December 31 December
	41.7% 34.0% 19.3% 24.6% 14.4% 12.2% 13.2% 6.6% 0.0% 6.5% 8.4% 11.2%
	97.0% 95.1%

��

Page 72

��

Predicted effect on the Group's Equity Investments of an increase in the index Predicted effect on the Group's Equity Investments of a decrease in the index	2022 2021 US$ '000 US$ '000
	522,444 258,106 (522,444) (258,106)

��

(b) Foreign currency risk

��

31 December 2022 Currency Australian Dollar Canadian Dollar Chinese Renminbi Euro Indian Rupee Japanese Yen Kenyan Shilling Pound Sterling Swiss Franc New Taiwan Dollar Poland Zloty	Monetary US$ '000 Non Monetary US$ '000 Currency forward US$ '000 Net exposure US$ '000
	- 617 324 231,396 623 - 167 98,655 326 - - - 705,903 - 1,541,017 - - - - - - - - (546,754) - (1,214,681) - - - (280,894) (14,843) - (43,995) - 159,766 324 557,732 623 - 167 (182,239) (14,517) - (43,995)

Page 73

31 December 2021 Currency Australian Dollar Canadian Dollar Chinese Renminbi Euro Indian Rupee Japanese Yen Kenyan Shilling Pound Sterling Swiss Franc New Taiwan Dollar Poland Zloty	Monetary US$ '000 Non Monetary US$ '000 Currency forward US$ '000 Net exposure US$ '000
	- 662 189 393,070 987 - 92 189,057 330 - - - 710,460 - 1,495,862 - - - - - (222) - (17,777) (548,063) - (1,443,761) - (2,229) - (504,636) (15,512) - (46,190) (17,777) 163,059 189 445,171 987 (2,229) 92 (315,579) (15,182) (222) (46,190)

��

Historical volatility rates Australian Dollar Canadian Dollar Chinese Renminbi Euro Indian Rupee Japanese Yen Kenyan Shilling Pound Sterling Swiss Franc New Taiwan Dollar Poland Zloty	2022% 2021%
	13.66 8.37 - 10.06 - 12.08 - 12.49 9.35 5.18 15.46 9.00 7.01 - 5.72 - 5.54 - 6.53 6.51 3.38 8.71

��

Change in net assets Australian Dollar Canadian Dollar Chinese Renminbi Euro Indian Rupee Japanese Yen Kenyan Shilling Pound Sterling Swiss Franc New Taiwan Dollar Poland Zloty	2022 US$ '000 2021 US$ '000
	- 13,372 - 56,108 - - - (22,762) (1,357) - (6,802)) (1,600) 11,430 - 25,464 - (123) - (20,607) (988) (8) (4,023)

Page 74

(b) Foreign currency risk(continued)

��

(c) Interest rate risk

��

				Non-	Non-
	< 3 months	3 months	> 1	interest rate	interest
31 December 2022	US$ '000	- 1 year US$ '000	year US$ '000	sensitive US$ '000	bearing US$ '000	Total US$ '000
Cash at bank and in hand	181,738	-	-	-	-	181,738
Cash pledged as collateral	332	-	-	-	-	332
Investment assets/(liabilities)	-	-	-	1,009,917	4,108,950	5,118,867
				Non-	Non-
	< 3 months	3 months	> 1	interest rate	interest
31 December 2021	US$ '000	- 1 year US$ '000	year US$ '000	sensitive US$ '000	bearing US$ '000	Total US$ '000
Cash at bank and in hand	424,160	-	-	-	-	424,160
Cash pledged as collateral	14,770	-	-	-	-	14,770
Investment assets/(liabilities)	-	-	-	1,554,960	4,344,161	5,899,121

Credit risk

��

�� could arise.

Page 75

Loans

��

�� secured assets and increase the probability of the loans going into default.

��

�� the remaining amount.

��

Counterparty credit risk

��

The analysis below summarises the Group’s exposure by counterparty credit rating at 31 December 2022:

HSBC Bank Plc JP Morgan Chase UBS AG Barclays Bank ABSA Group Limited Wells Fargo Bank N.A. Citco Bank Nederland NV Awash Bank Counterparty	(Moody's) Credit rating at 31 December 2022 (S&P)	US$ ‘000 Credit exposure 31 December 2022 % of Assets
	A1 A+ Aa2 A+ Aa3 A+ A1 A Ba3 zaAA Aa2 A+ N/A N/A N/A N/A	159,138 2.99% 25,017 0.47% 54 - - - 167 - - - 217 - 22 -
		184,615 3.46%

Page 76

The analysis below summarises the Group’s exposure by counterparty credit rating at 31 December 2021:

HSBC Bank Plc JP Morgan Chase UBS AG Barclays Bank ABSA Group Limited Wells Fargo Bank N.A. Citco Bank Nederland NV Awash Bank Counterparty	(Moody's) Credit rating at 31 December 2021 (S&P)	US$ ‘000 Credit exposure 31 December 2021 % of Assets
	A1 A+ Aa2 A+ Aa3 A+ A1 A Ba1 zaAA Aa2 A+ N/A N/A N/A N/A	415,305 6.53% 9,636 0.15% 32 - 9,670 0.15% 92 - 2 - 181 - 7 -
		434,925 6.83%

Credit risk is also managed by a policy contained in the Investment Programme to maintain exposures to any one counterparty to less than 15% of its Reference NAV.

��

�� of an end to the prime brokerage agreement.

��

Page 77

Liquidity risk

��

�� disposed.

��

The below tables analyse the Group’s financial liabilities into relevant maturity groupings based on the remaining period at the Balance Sheet date to the maturity date.

Group Group 31 December 2022 31 December 2021 Creditors: amounts falling due within one year Creditors: amounts falling due in more than one year Total liabilities Creditors: amounts falling due within one year Creditors: amounts falling due in more than one year Total liabilities	172,647 3,032 35,274 - - 210,953 Less than 1 month US$ '000 1 to 3 months US$ '000 3 months to 1 year US$ '000 1 to 5 years US$ '000 More than 5 years US$ '000 Total US$ ‘000
	- - - 147,973 - 147,973
	172,647 3,032 35,274 147,973 - 358,926
	201,925 25,759 29,665 - - 257,349 Less than 1 month US$ '000 1 to 3 months US$ '000 3 months to 1 year US$ '000 1 to 5 years US$ '000 More than 5 years US$ '000 Total US$ ‘000
	- - - 223,865 - 223,865
	201,925 25,759 29,665 223,865 - 481,214

Uncertain liabilities, which are not recognised on the Balance Sheet, are not included in the table above for the purpose of analysing the Foundation liquidity risk.

Uncertain liabilities

As disclosed in Note 14, the Group has invested in loans and securities which incorporate an uncertain commitment that it may be obliged to pay at a future date. The likelihood that these commitments are paid by the Group is unknown at the balance sheet date. The total uncertain commitments as at 31 December 2022 have been estimated as US$462,973k (2021: US$629,904k).

Page 78

17. DEBTORS

Dividends receivable Amounts due from brokers Other debtors Amounts due from related parties Prepayments Total	Group 31 Dec 2022 US$ ‘000 Group 31 Dec 2021 US$ ‘000 Foundation 31 Dec 2022 US$ ‘000 Foundation 31 Dec 2021 US$ ‘000
	734 1,616 - - 3,790 3,481 - - 1,478 8,706 496 240 - - 4,540 2 822 768 461 751
	6,824 14,571 5,497 993

The amounts due from brokers includes cash from forward foreign exchange contracts closed but awaiting settlement, cash from trades sold but which have not yet settled and interest receivable.

18. CASH AT BANK AND IN HAND

��

�� date.

��

The following table shows the breakdown of the amounts with custodians and other counterparties as at 31 December 2022:

	Cash and cash	Cash pledged as	Cash at bank and	Amounts due	Amounts due to	Net counterparty
	equivalents	collateral	in hand	from brokers	brokers	position
	31 Dec 2022	31 Dec 2022	31 Dec 2022	31 Dec 2022	31 Dec 2022	31 Dec 2022
Group	US$ ‘000	US$ ‘000	US$ ‘000	US$ ‘000	US$ ‘000	US$ ‘000
Custodian and
prime broker
HSBC Bank Plc	156,261	332	156,593	3,790	(1,245)	159,138
Other counterparties
JP Morgan Chase	25,017	-	25,017	-	-	25,017
UBS AG	54	-	54	-	-	54
Barclays Bank	-	-	-	-	-	-
ABSA Group Limited	167	-	167	-	-	167
Wells Fargo	-	-	-	-	-	-
Citco Bank Nederland NV	217	-	217	-	-	217
Awash	22	-	22	-	-	22
Total	181,738	332	182,070	3,790	(1,245)	184,615

Page 79

The following table shows the breakdown of the amounts with custodians and other counterparties as at 31 December 2021:

	Cash and cash	Cash pledged as	Cash at bank and	Amounts due	Amounts due to	Net counterparty
	equivalents	collateral	in hand	from brokers	brokers	position
	31 Dec 2021 US$	31 Dec 2021	31 Dec 2021	31 Dec 2021	31 Dec 2021	31 Dec 2021
Group	‘000	US$ ‘000	US$ ‘000	US$ ‘000	US$ ‘000	US$ ‘000
Custodian and
prime broker
HSBC Bank Plc	404,540	14,770	419,310	3,481	(7,486)	415,305
Other counterparties
JP Morgan Chase	9,636	-	9,636	-	-	9,636
UBS AG	32	-	32	-	-	32
Barclays Bank	9,670	-	9,670	-	-	9,670
ABSA Group Limited	92	-	92	-	-	92
Wells Fargo	2	-	2	-	-	2
Citco Bank Nederland NV	181	-	181	-	-	181
Awash	7	-	7	-	-	7
Total	424,160	14,770	438,930	3,481	(7,486)	434,925

The following table shows the breakdown of the cash and cash equivalents of the Foundation held with counterparties as at year end:

HSBC Bank plc JP Morgan Chase ABSA Bank Barclays Bank plc Awash Bank Foundation	Cash and cash equivalents 31 Dec 2022 US$ ‘000 Cash and cash equivalents 31 Dec 2021 US$ ‘000
	42,942 44,884 19,623 9,631 167 92 - 9,670 20 7
	62,752 64,284

19. CREDITORS: amounts falling due within one year

Amounts due to brokers Grants Creditors Loans Derivative fnancial instrument liabilities Accruals and deferred income Taxes and social security costs	Group 31 Dec 2022 US$ ‘000 Group 31 Dec 2021 US$ ‘000 Foundation 31 Dec 2022 US$ ‘000 Foundation 31 Dec 2021 US$ ‘000
	1,245 7,486 - - 158,886 172,777 158,886 172,777 6,399 46,638 6,116 1,136 - - - 569,992 14,430 17,646 - - 29,880 12,618 11,195 12,575 113 184 113 184
	210,953 257,349 176,310 756,664

The amounts due to brokers include cash from trades purchased which have not yet settled and cash for forward foreign exchange contracts closed but awaiting settlement.

Page 80

20. CREDITORS: amounts falling due after one year

Creditors payable between 1 and 2 years Creditors payable between 2 and 5 years Creditors payable after 5 years	Group 31 Dec 2022 US$ ‘000 Group 31 Dec 2021 US$ ‘000 Foundation 31 Dec 2022 US$ ‘000 Foundation 31 Dec 2021 US$ ‘000
	75,973 79,266 72,000 73,000 72,000 144,599 72,000 144,000 - - - -
	147,973 223,865 144,000 217,000

21. MOVEMENT IN FUNDS

Group	Balance as at	Incoming	Resources	Investment	FX gains/	Exchange difference	Transfer between		Balance as at
	31 Dec 2021	Resources	Expended	gains/(losses)	(losses)	reserve	funds	2	31 Dec 2022
	US$ ‘000	US$ ‘000	US$ ‘000	US$ ‘000	US$ ‘000	US$ ‘000	US$ ‘000		US$ ‘000
Unrestricted:(1)
Income funds	-	-	(488,401)	-	(971)	-	489,372		-
Designated funds	950,853	-	-	-	-	-	(36,532)		914,321
Restricted income funds	8,099	20,756	(17,554)	-	-	-	(3,074)		8,227
Expendable
endowment fund	4,922,190	51,101	-	(477,397)	-	(10,014)	(449,766)		4,036,114
Total funds	5,881,142	71,857	(505,955)	(477,397)	(971)	(10,014)	-		4,958,662

Group	Balance as at	Incoming	Resources	Investment	FX gains/	Exchange difference	Transfer between	Balance as at
	31 Dec 2020	Resources	Expended	gains/(losses)	(losses)	reserve	funds2	31 Dec 2021
	US$ ‘000	US$ ‘000	US$ ‘000	US$ ‘000	US$ ‘000	US$ ‘000	US$ ‘000	US$ ‘000
Unrestricted:(1)
Income funds	-	-	(844,684)	-	(456)	-	845,140	-
Designated funds	642,579	-	-	-	-	-	308,274	950,853
Restricted income funds	6,711	4,290	(2,902)	-	-	-	-	8,099
Expendable
endowment fund	5,356,222	24,468	-	694,914	-	-	(1,153,414)	4,922,190
Total funds	6,005,512	28,758	(847,586)	694,914	(456)	-	-	5,881,142

(1) Reserves retained by subsidiary undertakings and general unrestricted funds are disclosed in total in the tables above and total US$90,290k (2021: US$135,653k).

(2) Transfers between funds relate to transfers from the expendable endowment to meet charitable expenditure and reflect funds earmarked to fund approved multi-year programmes.

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Unrestricted Income funds Designated funds Restricted income funds Expendable endowment fund Total funds Unrestricted Income funds Designated funds Restricted income funds Expendable endowment fund Total funds Foundation Foundation	Balance as at 31 Dec 2021 US$ ‘000 Incoming Resources US$ ‘000 Resources Expended US$ ‘000 Investment gains/(losses) US$ ‘000 Transfer between funds US$ '000 FX gains/ (losses) US$ ‘000 Balance as at 31 Dec 2022 US$ ‘000
	- 30,861 (474,453) - (1,118) 444,710 - 950,853 - - - - (36,532) 914,321 - 20,756 (17,554) - - (3,202) - 4,930,877 - - (480,288) - (404,976) 4,045,613
	5,881,730 51,617 (492,007) (480,288) (1,118) - 4,959,934
	Balance as at 31 Dec 2020 US$ ‘000 Incoming Resources US$ ‘000 Resources Expended US$ ‘000 Investment gains/(losses) US$ ‘000 Transfer between funds US$ '000 FX gains/ (losses) US$ ‘000 Balance as at 31 Dec 2021 US$ ‘000
	- 11,428 (825,312) - (261) 814,145 - 642,579 - - - - 308,274 950,853 - 4,290 (4,290) - - - - 5,361,390 - - 691,906 - (1,122,419) 4,930,877
	6,003,969 15,718 (829,602) 691,906 (261) - 5,881,730

As at 31 December 2022, the Trustees have allocated US$914,321k (2021: US$950,853k) of reserves as designated funds which represents funds that may be called upon to be disbursed to multi-year programmes.

22. ANALYSIS OF NET ASSETS BETWEEN FUNDS

The table below presents the allocation of the group balance sheet across the three different categories of funds. For further details of the funds, refer to page 37.

Intangible assets Tangible assets Investments Other assets Liabilities	Expendable Endowment US$ ‘000 Restricted Funds US$ ‘000 Unrestricted Funds- Designated US$ ‘000 Total 31 Dec 2022 US$ ‘000 Total 31 Dec 2021 US$ ‘000
	- 500 - 500 500 - 1,114 8,213 9,327 9,234 4,098,099 1,020,768 - 5,118,867 5,899,121 120,631 68,249 14 188,894 453,501 (182,616) (176,310) - (358,926) (481,214)
	4,036,114 914,321 8,227 4,958,662 5,881,142

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23. COMMITMENTS

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24. OPERATING LEASES

The total rent charged as an expense in the SOFA, is disclosed below:

Rent	Group Year ended 31 Dec 2022 US$ ‘000 Group Year ended 31 Dec 2021 US$ ‘000 Foundation Year ended 31 Dec 2022 US$ ‘000 Foundation Year ended 31 Dec 2021 US$ ‘000
	1,588 1,716 1,583 1,711

The Group had commitments to future minimum lease payments under non cancellable operating leases at the year end as follows:

Land and Building Less than one year Between one and fve years More than fve years	Group 31 Dec 2022 US$ '000 Group 31 Dec 2021 US$ '000 Foundation 31 Dec 2022 US$ '000 Foundation 31 Dec 2021 US$ '000
	1,337 1,429 1,331 1,423 3,681 3,886 3,675 3,875 - 447 - 447
	5,018 5,762 5,006 5,745

Includes a commitment under an operating lease with TCI Fund Management (UK) Limited to pay rentals during the period following the period of these accounts of US$683k (2021: US$765k) and US$2,449k between one and five years following the period of these accounts (2021: US$3,062k).

The total rental income included within the SOFA, is disclosed below:

Rental income	Group 31 Dec 2022 US$ '000 Group 31 Dec 2021 US$ '000 Foundation 31 Dec 2022 US$ '000 Foundation 31 Dec 2021 US$ '000
	3,961 1,685 - -

The Group is a lessor of UK investment property. The total non-cancellable future minimum lease payments expected to be received are:

Less than one year Between one and fve years More than fve years	Group 31 Dec 2022 US$ '000 Group 31 Dec 2021 US$ '000 Foundation 31 Dec 2022 US$ '000 Foundation 31 Dec 2021 US$ '000
	3,965 4,338 - - 16,262 18,067 - - 36,282 45,344 - -
	56,509 67,749 - -

On 11 August 2021, the Group acquired 98% of the freehold of a property in Chiswick, UK. The freehold acquired is leased to a third party. The lease commenced on 1 July 2008 with a lease term of 25 years and is due to expire on 30 June 2033. It includes a provision for an annual rent review every 13th of July. The rent concession period will end on 13 May 2024 and there will be no change to rental income terms after this date.

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25. RELATED PARTIES

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26. SERVICE PROVIDERS

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Page 85

THE CHILDREN'S INVESTMENT FUND FOUNDATION (UK) GROUP INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2022

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Page 86

CHILDREN'S INVESTMENT FUND FOUNDATION

Contents

Message from the Chair

Sir Christopher Hohn

Message from the CEO

Kate Hampton

2022 by the numbers

Charitable Payments by Programme – 2022 and 2021

$400m

Charitable Investments Approved

$530m

Grant Disbursements

$5.1bn

Endowment

Highlights of our impact in 2022

Highlights of our impact in 2022 continued

Highlights of our impact in 2022 continued

Global

Climate

Sexual and Reproductive Health and Rights

Nutrition

Child Protection

Cross-cutting

International Finance

Evidence, Measurement and Evaluation

Impact Investing

Big Win Philanthropy (BWP)

Organisational Development

Africa

Girl Capital

Resilient Communities

Climate

NTDs

WASH

Child Health

India

Child Health

Girl Capital

Climate

SRHR

Child Protection

East & SouthEast Asia

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Europe

Latin America

Strategic Report

Section 172(1) Statement

Covid-19

Social Impact of CIFF’s Operations

Strengthening our HR foundations

Listening to our people

Ensuring a great place to work

A continued focus on Diversity, Equity and Inclusion

Reducing the environmental impact of our operations

Independent Measurement

Reductions

Contribution

Investment portfolio

Public equities Carbon Footprint (tCO2e) as at 31 December 2022

347 310 tCO2e

% of investments with Climate Targets as at 31 December 2022

46%

Financial Review

Five-year summary of income and expenditure

Charitable activities

Activities undertaken directly (DCA)

Grant Disbursements

Charitable Grant Payments by Sector (USD$m)

Investment Review

Investment strategy

Asset growth

Investment returns

Investment management costs

Asset allocation

Percentage total asset allocation by asset type (including cash)

Risk Management and Key Policies

Risk Management

Investment Risk Management

Investment Policy

Cash Management Policy

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