The Sackler Trust (A company limited by guarantee) Trustees, R¢port and Audited Financial Statements Year ended: 31 December 2020 Company Number: 07022224 Charity Number: 1132097 The Sackler Trust Reference and administrative details Com an Number: 07022224 Chari Number: 1132097 Direetors and Trustees Dame"I'heresa E. Sacklei DIIF. Marissa T. Sackler Sophia Dalrymple Michael D. Sackler Marianne K. Mitchell Anthony Collins Seereta Tiercel Services Limited Princi al and Re istered o￿lee Address New Zealand House, 9th Floor 80 Haymarket London SWIY 4TQ Solieitor Christopher B M1￿belI New Zealand House. 9th Floor 80 Haymarket London SWIY 4TQ Accountants Management Revision5 Limited New Zealalld House. 9th Floor 80 Haymarket London SWIY 4TQ Auditors G¢oige Hay & Company 83 Cambridge Streel Pimlico London SWIV 4PS Bankers C. Hoare & Co 37 fleet Street London EC4P 4DQ Investment Advisers Capital Generation Partners LLP Berkeley Square 14ouse Berkeley Square London WIJ 6BX Cazenove C&pilal 12 Moorgate London EC2R 6DA The Sackler Trust Trustees, Report The Trustees present their report and accounts of The Sa¢kler Trust (the Tn￿t I for the year ended 31 tkcetnber 2020. Trustees and Dir¢ctor$ The Directors of ihe TnL￿t are also Ttustees of the TNst and ihroughoul this report are refekTed to as Trustees. The Trustees serving throughout the year were Theresa E. Sackler, Marissa T. Sackler. Sophia Dalrymple, Michael D. Sackler. Marianne K. Mitchell and Anthony Collins. Structure Governanee and Man ement Governin Instrument The Trust was incorporated under the Companies Aci 1985 as a private co￿panY limited by guarantee under number 07022224 on 17 September 2009. The Trust obtained charitable statu8 under the Chariiies Aci 1960 on 13 October 2009, and it is re8l8tered as a charity under number 1132097. The Twst is gov¢rn¢d by its Memorand￿￿ and Articles of Association. Ob e¢tiv¢s and Activities As set out in the objecls ctsniained in the Trust's memorandum of association, the Principal object of the Trust is. and will continue to be, the advancement of research and educaiion in England and Wales and elsewhere irt the fields of an, science and tnediLal research and any other charilable obje¢is as the Trustees shall, at their discretion, decide according to the laws of England and Wales. Grant appli¢aiions are 5crutinised io ensure conformity with tlie TI￿st,5 stated objectives. The uusiees confirm they have ¢omplied with the duty Kn section 17 of the Charittes Act 2011 to have due regard to public benefit guidance publtshed by ihe Commission. Grant-makin olic It is the policy of the Trust to Trview applications from charKtable organisations and to make grants on & selective basis. Achievements and P¢rfonnan¢¢ As Shown on page 16 the Trust committed charitable donations of £3,565,220 during the year1£280,(X)O in 2019). The reduced activity in 2019 arose from a temporary suspension of giving frtsm March 2019 and then-existing ¢ommitment% were further reduced by £2.920.315. ointment of Trustees Trustees are appointed by Resolution of the Members of the-l'rust. Tru5te¢ activities -rhe Trustees are supported in their aetiviÈies by the Advisers noted on page l and attend Trustee meetings. Mana ement and or anisalion The'lnjqt has no etnployees. Thc administration of the Trust is dealt with by the Trusttts and supported by the Adviser8 noted on page l. These services are provided free of charge by the Trustees. Risk mana ement The Ttu.8tees have examined the major strategic, busineys and operarional ri5k$ which dLe Trust faces and confimi thal system8 have been established so thai the ne¢e5¥ary 8tepb can be taken to lessen these risks. These are kept under regular review. Financial Risk Mana Financial insirumenis, including equities securities are qubject to various risks including mark¢t (comprising of euffency risk and iiiterest rate risk}, credit. liquidity. operaiional at)d off-bal4LnLe sheet risks. The Trust manauFes these risks on an aggregate ba%is along with the ri%k8 asbociated with lis inve8tEnuJ activities as pari of lis overall risk mat)agetnent policies. The Trust's investment advisers have full invesrmeiit discretion. Ac(ivity and performanc¢ reports are reviewed ai least monthly and regular meetlll¥8 are held with Ihem lo review investment allocation and perfonnance. ement The Sackler Trust Trustees, Report (continued) Market risk Murket risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due ￿ changes in market vaTiables such as equity prÉces. inierest raies and foreign exchange rates. Currenc Currency risk is the risk thai the value ofa f￿￿ncIal instnunent will flu¢tuate because of changes in foreign exchange rates. The TNst has assets whicli are denominaied in other Cu￿enCieS that in¢lude US Dollars. Accordingly. the value of $u¢h assets may be affected favourably or unfavourably by fluctuations in currency rates. The currency risk sen8ltivity analysis has not been diwlosed because the impact is not ]naterial. risk Interest rate risk Interest rate rssk arises from the possibility that ¢hat)ges in interest rates ws118(fect ￿Thre cash flows or the fair values of Finan¢ial illslrumentb.. As at 31 December 2020, the TNst is exposed to interest rate ri.sk on the payment of Grants in instalmenls over an extended period. The interest rate risk sensittvity analysis ha5 not been disclosed because th¢ impact is not material. Coronavirus risks At this present titne. the TNstee$ do not perceive there to be any Signifi￿￿1 risk to the Trust's current operation5. This will r¢main under review for the foreseeable future. Other ma or risks The TNst's outstanding Lharitable commitments are expected to be met out of current resources and future income. The TNstees have id¢ntifi¢d no other major risks. Financial Review Financial osition The accounts have been prepared sn aceordance with the revised Siatemeni of Recommended Praclire, Accounting and Reporti￿8 by Charitie8 ISORP 2019}. The Trustees have taken advantage of the small company exemptions in the preparation of this report. Th¢ net increase in fund8 for the year was £1.584,027 and was added to the funds balance at the beginning of the year to give a balance carried forward 81 the end of the year of £49,389,347 (for the year ended 31 December 2019 the net increase of £4,543,200 was added io giv¢ a funds balance of £47,805,320}. These funds are unrestricted and will be applied to meeting the Trust's commitment% and any other donaiion.% in the cotning year. The Trnstees report that.. l. The Trust has sufficient funds lo cover its immediate and ￿￿re comtnitments out of current resources. As set out i page 16 outstallding commitment5 at the year end were £14.543,399 of whtch £5.906,332 are payable in 2021. The remaitiing £8,637,067 is the total of instalments payable in accordance wilh gift a¥reements 10 be paid during the years 2022 to 2025. 2. The Trust's assets are held in order to ￿rther objectives and all funds received have been or will be applied to the achaevement ofthose objectives. 3. The Trustees have perforn)ed a review of the Ttust's ability to contanue as a going ¢on¢ern. In their opinion tILe Tn￿1 will be able to continue in operational exisiencc for the foreseeable future. Reserv¢s The Trustee5 have decided to retain and invest approximaiely £40.0(X),000 in order to generate income and gains which the Trustees intend lo distribute each year. nvestmenl olic The'frustees have tommitted £39.9 millEon to investment for the medium io long tem). 'fhese are with a view lo the long terni preservation and growth of Capital $0 that the Trust cun fulfil the intention 10 maintain ¢liartlable paytnenls out of the income ari8ing. As shown on page 13 these investment5 were valued at £50.6 million al the year end {2019 - £48.1 million). Surplus uninvesied fvnds are retained in short terni cash deposits Wlih Ma￿ritY dates of less than one year. The Saekler Trust Trustees, Report (continued) Trustees, Res on5ibilities Statement The Trustees (who are also the directors for the pUrp￿￿e of company law) are responsible for preparing the Annu21 Report and the financial statements in accordarlce with applicable law and rcgulations. Company law requiJYs the Trnsteeg to prepare finan¢ial statements for each financial year. Under that law the Trustees have elected to prepare the financial staiemenis in a¢¢ordat]ce witli United Kingdom Generally A¢¢epied Accounting Practice (United Kingdom Accountin Standards and applicable law}. Under conipany law, the Tw.%iee$ must not approve the a¢¢ounis unle88 they are satisfied that give a tNe and fair vi¢w of the state of affairs of the chariiable company and of the incoming resources and application of resources, in¢luding the income and expendiwre of the charitable Company for that period. In preparing those fjnancial siatemenls, lh¢ Trustees are required to.. Seleci suitable a¢counting policses and then apply thern ¢onsistently Observe the meihods and principles in the Charities SORP: Make judgcments and estimates ihai are reasonable and prudent: State wheiher applicable UK Accounting Standards have been followed, subject to any material departures dis¢lo$ed and explained in the financial statements, and; Prepare ihe flnancial sialements on the going concern basis unless it is inappropriate to presume ihat the Trust will ¢oniinue in operation. The Twstees ar¢ r¢sponsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accEiracy at any time Ihc finaiicial positioll of the charitable company and tnable them to ensure that the fmancial statements comply with Ihc Companies Act 2006. They are also Tesponsible lor sateguarding the assets of the company and hence for iaking reasonable steps for the prevention and detection of fraud and other itregjularities. The trustees confirtn that so far they are aware, there is no relevat)t audit Lnfom)ation {a$ dcfjned by section 418(31 of Lhe Companies Act 2006) gf which the cliaritable company's auditors are unawai'e. They have raken all th¢ steps that they ught ￿ have iaken as tNstee5 in order io tnake themselves aware of any relevant audLI infomiaiion and to ¢stabli8h that the charitable company's auditots are awatE of Iliat illformatioti. On behalf of the Board Date.. 21 June 2021 Sophia Dalrymple Date: 21 June 2021 Anihony Collins The Saekler Trust INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OFTHE SACKLER TRUST Opinio We liave audited tlie fillancial statenients of The Sackler Trnst ("tlie Charitable Company") for tl)e year ended J I Decenibei. 2020 wliich cornpi'ise Siatement of fillancial Activities, the Balai)ce Sheei. Ihe Ca511 Flow Statement and the relaied notes Lo tlie fiiTrancial slatements. includillg a summary of significant accouniing wlicies. Tlie financidl reporiing rramework that ha5 been applied in their preparatioi) is applicable law alld Uniied Kingdom Accountin¥ Siandards (Uniled Kiiigdoim Generally Acceptcd Accountiiiu Practice). including fRS 102"Tlie Financial Reportiiiu sl