OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

← Ubs Optimus Foundation UK

2023-12-31-accounts

Confidential

UBS Optimus Foundation UK

Annual Report and Financial Statements

Company Limited by Guarantee Registration Number 08608213 (England and Wales)

Charity Registration Number 1153537

28 June 2024

Table of contents Table of contents

Section 1 Reports ______________ 3
Legal and administrative information ________ 4
Strategic report: 31 December 2023 ________ 5
Trustees’ report: 31 December 2023 ________ 8
Statement of Trustees’ responsibilities: 31 December 2023 ______ 13
Independent auditor’s report: Year to 31 December 2023 _______ 14
Section 2 Financial statements _____________ 17
Statement of Financial Activities (including income and expenditure account): Year to 31
December 2023 _____________ 18
Balance sheet: As at 31 December 2023 __________ 19
Statement of Cash Flows: Year ended 31 December 2023 ________ 20
Principal accounting policies: Year ended 31 December 2023 _____ 21
Notes to the financial statements: 31 December 2023 __________ 24

2 / 29

Legal and administrative information

Section 1

Reports

3 / 29

Legal and administrative information

Trustees / Directors Eva Lindholm (Chair)
Vineet Bewtra
Pilar Rocafort
Edoardo Rulli
Paul Vail
Company Secretary Buzzacott Secretaries Limited
Registered Office 5 Broadgate
London
EC2M 2QS
Company Registration Number 08608213 (England and Wales)
Charity Registration Number 1153537
Auditor Ernst & Young LLP
25 Churchill Place
London
E14 5EY
Bankers UBS AG London Branch
5 Broadgate
London
EC2M 2QS
Investment Managers UBS AG London Branch
5 Broadgate
London
EC2M 2QS
Solicitors Bates Wells
10 Queen Street Place
London
EC4R 1BE

4 / 29

Strategic report: Strategic report: 31 December 2023

Review of the business

UBS Optimus Foundation UK (the "Foundation" or the “Charity”) was incorporated as a charitable company on 12 July 2013 and is registered with the Charity Commission. The Foundation aims to drive systemic and catalytic impact for the most marginalised communities, especially children and young people, globally and locally and supports initiatives to improve education, health; and climate and environment. The Foundation is part of the global UBS Optimus Foundation.

It was the Trustees' belief that the combination of regulatory complexity and running costs often prevented money being donated to charity. The Foundation was created to make it easier to donate money to charities around the world and the strategy remains to further this aim.

In pursuit of the objectives above, the principal achievements of the Foundation in 2023 are raising funds totalling £146.4m from donors and granting £148.0m to around 126 beneficiary organisations to carry out projects which further the Foundation’s aims. Further, the continued execution of the Foundation's strategy to leverage the existing infrastructure and expertise within UBS AG London Branch (the "Member") enables the Foundation to maintain a low cost base and focus on its core principal activity of making it easy for donors to donate to charities around the world.

UBS Optimus Foundation UK collaborates with and is supported by a network of related organisations consisting of the UBS Optimus Foundation in Switzerland, its branch in Hong Kong, and the representative office in China, its sister organisations UBS Optimus Foundation Deutschland, UBS Optimus Foundation India and UBS Optimus Foundation Singapore, as well as a donation platform in the United States.

Risk management

The major risks to which the Foundation is exposed, as identified by the Trustees, have been reviewed and systems and/or procedures have been established to manage those risks. Risks are documented in a Risk Framework and Register which is reviewed by the Trustees and the Member as an additional measure. This document also outlines the systems, procedures and controls in place to manage those risks. This Framework is reviewed by the Trustees at least once a year. The Foundation takes advice from its solicitors, Bates Wells, on any matters identified by the Trustees as requiring external legal counsel.

The Charity is in part reliant on UBS AG London Branch, which is the sole Member of UBS Optimus Foundation UK, Both UBS AG and UBS Business Solutions AG provides support, including staff and infrastructure. We do not have any reason to believe there is any risk in the continued support of UBS AG London Branch or UBS Business Solutions AG. For further details of the Charity’s immediate controlling party and ultimate parent undertaking, see note 15 to the accounts.

On 12 June 2023, UBS Group AG (which owns the Member) acquired Credit Suisse Group AG, succeeding by operation of Swiss law to all assets and liabilities of Credit Suisse Group AG, and became the direct or indirect shareholder of all of the former direct and indirect subsidiaries of Credit Suisse Group AG. As at the end of 2023, UBS continues to execute on their integration plans, working toward the substantial completion of the integration by the end of 2026. The Trustees have observed no adverse effects on the Foundation since the acquisition was confirmed. They anticipate that this combined entity will attract a broader range of donors, thereby expanding the Foundation’s reach and enabling it to present its philanthropic offerings to a wider audience which has already started.

UBS, the Member, remains watchful of a range of geopolitical developments and political changes in a number of countries, as well as international tensions arising from the Russia–Ukraine war, conflicts in the Middle East and US– China trade relations. Inflation has abated to some extent in major Western economies, though there are still concerns regarding future developments, and central banks’ monetary policy is in the spotlight. The potential for “higher-for-longer” interest rates raises the prospect of a global recession, particularly as the growth of China’s economy has been muted. This combination of factors translates into a more uncertain and volatile environment, which increases the risk of financial market disruption.

Nevertheless, the Trustees consider that there is no direct impact on the operation of the Charity, and they will continue to monitor and take action as appropriate.

5 / 29

Strategic report: 31 December 2023

Key identified risks include:

**Key risk ** **Risk ** **Mitigation action **
Law and regulation risks Breach of charity law, company The Trustees are advised by specialists in areas
law, and regulatory requirements of charity law, company law and financial
of particular activities undertaken regulation.
by the Charity.
Governance Inappropriate organisational The Trustees endeavour to follow the Charity
framework structure and conflicts of interest. Governance Code as best practice and in
relation to the organisational structure. A
register of interests is maintained by the
Company Secretary.
Operational risks Fraud and misappropriation of The operation of the Charity and its donors'
assets and/or cash. accounts are subject to the same anti-fraud
controls as all other accounts managed by the
Member and are subject to both external and
internal audit.
Financial risks Accuracy and timeliness of financial Donors are aware of the liquidity and risk
information, adequacy of reserves profile of their investments and receive regular
and cash flow, diversity of income statements informing them of the current
sources and investment asset value and the risks profile of those
management. investments. The Foundation’s financial
information is subject to annual external
audit.
Programme-related Intended outcomes may not be The same risk applies to grants. This risk is
investments (PRI) achieved. mitigated through a thorough due diligence
process on loan recipients (which includes a
review of the borrower's strategy and the
project the PRI loan will support, finances,
governance and social impact), which is
documented in the PRI Due Diligence Form.
Programme-related Borrowers may default on their Trustees consider all the relevant issues and
investments (PRI) loan. take advice where appropriate, and reach a
reasonable decision in regard to enforcement.

6 / 29

Strategic report: 31 December 2023

Future plans

The priorities for the Foundation for 2024 and beyond are to continue to build the portfolio of high quality, strategic programmes funded for the benefit of society globally and locally, in the areas of education, health; climate and environment as well as emergency response and humanitarian aid. The Foundation also seeks to offer innovative solutions for solving some of the world's most pressing problems, including social finance solutions such as development impact bonds.

The Foundation continues to focus and expand the Collectives initiative in partnership with UBS. Bringing together philanthropists, best-in-class non-profit organisations, social enterprises and experts, to drive collective impact by developing sustainable philanthropic solutions that catalyse social and environmental change. UBS clients who become Collective members embark on a philanthropic strategy and leadership programme, and develop expertise in strategic, high-impact philanthropic solutions working towards systems change across a range of issues. To date, 35 Collective members have pledged more than USD 20 million towards three collective impact programs run by the Foundation. There are plans to launch three more cohorts in 2024.

The objective is to ultimately increase impact; strengthen philanthropists’ understanding of strategic philanthropy and systems change, and allow philanthropists to build their knowledge, confidence, network and philanthropic leadership skills.

Approved by the Trustees and signed on their behalf by

Trustee name: Eva Lindholm

Signature:

Date: 28th June 2024

7 / 29

Trustees’ report: 31 December 2023

The Trustees (who are the Directors of the company for the purpose of the Companies Act) present their annual report incorporating the strategic report and audited financial statements of UBS Optimus Foundation UK (“the Foundation”) for the year ended 31 December 2023.

The report has been prepared in accordance with Part 8 of the Charities Act 2011.

The financial statements have been prepared in accordance with the accounting policies set out on pages 21 to 23 of the attached financial statements and comply with the charitable Foundation’s Memorandum and Articles of Association, Companies Act 2006, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).

Aims and objectives

The objects of the Foundation as set out in the Articles of Association are: to promote the health of children by (without limitation) preventing abuse and supporting the delivery of medical and other essential services to them; the prevention and relief of poverty by (without limitation) the provision of education to support the healthy development of children; to relieve the needs of children who are in need due to their youth, sickness or financial hardship; and protect the environment; and any other purposes as are regarded as exclusively charitable under the law of England and Wales as the Trustees may from time to time see fit. The Foundation aims to drive systemic and catalytic impact for the most marginalised communities, especially children and young people, globally and locally and supports initiatives to improve education, health; and climate and environment. The Foundation seeks out partners that are transparent, accountable and well managed, and programmes which are based on robust evidence, utilising innovations which may be replicable and potentially game changing. Programmes are selected following a rigorous application process involving external review, and all work funded by the Foundation is subject to an external evaluation.

In addition, the Foundation aims to connect UBS AG clients with the Foundation’s projects in order to raise additional funding for and leverage the potential social impact for these projects benefiting beneficiaries.

The trustees have had regard to the Charity Commission’s guidance on public benefit.

Grant making and criteria for funding

The principal aim for the Foundation is to make direct grants to programmes within the Foundation’s charitable objects or to make grants to UBS Optimus Foundation in Switzerland to disburse to projects within the Foundation’s charitable objects.

In the case of direct grants, the Foundation works with UBS Optimus Foundation in Switzerland to source and assess effective and appropriate programmes for direct funding which further the Foundation’s aims. In addition, UBS Optimus Foundation in Switzerland will support with the relevant due diligence checks on potential grantees including any collaborating partners and will also propose engaging programmes for the Foundation’s Trustees to approve at their discretion.

The number of projects which can be supported is, of necessity, limited to the amount of funds available for distribution in any year. The Trustees have determined that the priorities for funding over the next five years will be based on:

8 / 29

Trustees’ report: 31 December 2023

Applications for funding will be assessed by a panel of experts according to the specific criteria noted below:

Trustees approve all grants supported by the Foundation. Grantees are expected to report on a semi-annual basis against key performance indicators and milestones agreed in the approved application.

The Foundation may also make programme-related investments (PRI) (see "Charities and investment matters: a guide for Trustees"). Additional considerations apply to such investments, as outlined in the full grant making policy.

Related parties

The principal funding sources of the Foundation are clients of UBS AG who can make donations to programmes that have been assessed and selected by the Foundation and UBS AG London Branch, the Member of the Foundation, which provides in kind support by way of office space, support staff (from UBS Business Solutions AG), IT and telephone, marketing, operations, finance, in-house legal support. UBS AG is committed to funding the Foundation’s activities reflected in a cooperation agreement. Gifts in kind in the form of donated services received from UBS AG London Branch that cannot be quantified with reasonable accuracy are not recognised by the Foundation. All other donated services are recognised in these financial statements. UBS UK Donor-Advised Foundation is considered a related party, as disclosed in note 15. Furthermore, UBS Optimus Foundation UK is part of a network of Optimus Foundations operating globally. These may also be considered as related parties.

Activities and achievements

In pursuit of the aims and objectives above, the principal achievements of the Foundation in 2023 are:

Income from fundraising totalled £146,357,277 (2022: £90,268,336), an increase over the fundraising target set for the year. The increase was notably driven by donations from several large single donations. Grants were pledged totalling £148,002,047 (2022: £60,058,851). Details by theme are presented in note 3 to the financial statements.

In the year, consultancy fees amounting to £493,215 (2022: £nil) were paid to organisations supporting grant making activities by providing services such as training, reporting on partnership and impact evaluation. These fees are incurred on an ad hoc basis when relevant needs occur.

Governance, structure and management

Constitution

UBS Optimus Foundation UK (“the Foundation”) is a registered charity (Charity number 1153537) with the Charity Commission of England and Wales and a company limited by guarantee registered in England and Wales (Company number 08608213) incorporated 12 July 2013. Governance is by a Board of Trustees (the "Board") and Memorandum and Articles dated 12 July 2013.

Guarantor/Member

The Guarantor and sole Member of the Foundation is UBS AG London Branch (the "Member"). In the event of the Foundation being wound up, the liability of the Member is limited to £1.

9 / 29

Trustees’ report: 31 December 2023

Trustees

The Trustees constitute directors of the Foundation for the purposes of company law and Trustees of the Charity for the purposes of charity legislation. The Trustees who held office during the year and after the year end, and their appointment and resignation dates if these occurred during that period, were as follows:

Trustee Appointment / Resignation
Eva Lindholm (Chair)1 Appointed 18 December 2017
Vineet Bewtra Appointed 11 August 2020
Phyllis Costanza1 Appointed 16 December 2016 – Resigned 4 April 2023
Pilar Rocafort1 Appointed 1 November 2022
Edoardo Rulli1 Appointed 13 December 2018
Paul Vail Appointed 5 December 2019

Note: 1 Employed by UBS

The Board (with the exception of Vineet Bewtra and Paul Vail) are all UBS AG employees and all, including Vineet Bewtra and Paul Vail, were nominated and approved by the Member.

The Foundation has indemnified all Trustees in respect of any liabilities properly incurred in running the Foundation to the extent permitted by the Companies Act. When recruiting new Trustees, the Board look for individuals with skills and experience which are of value to the Foundation. Training is arranged for all Trustees. All Trustees must sign a Trustee declaration which states that they understand their duties as a Trustee and have read the relevant conflict of interest policies. The Board is responsible for the oversight and governance which includes approval of all grants made by the Foundation.

The Trustees have delegated the responsibility for the investment management, custody, and bookkeeping of the Foundation to the Member. The Member provides office space, support staff, IT, marketing, operations, finance and in-house legal support to the Foundation.

Key management personnel

The key management personnel of the Foundation in charge of directing, controlling, running and operating the charity comprise the Trustees and the following staff employed by UBS AG or UBS Business Solutions AG, which include but are not limited to the Head of Social Impact and Philanthropy UK; a Business Management team; a Philanthropy Advisory team; and a Business Development team.

These staff are employed by and remunerated by UBS AG or UBS Business Solutions AG, which is also responsible for setting their remuneration. No charge is made by UBS AG or UBS Business Solutions AG for their services. The Trustees receive no remuneration or reimbursement of expenses in connection with their duties as Trustees.

Financial review

Statement of financial activities

The Foundation received income of £148,296,295 (2022: £90,863,333) in the form of £146,357,277 (2022: £90,268,336) cash donations, £70,172 (2022: £62,690) gifted services from the Member, £1,789,578 (2022: £472,751) dividend/interest income and £79,269 (2022: £59,556) of income from programme-related investments. Expenditure totalled £148,580,778 (2022: £60,138,417), of which £148,002,047 (2022: £60,058,851) was paid out as charitable grants, £493,215 (2022: £nil) was expended for consultancy fees and £85,517 (2022: £79,567) was incurred as support and governance costs. Total losses of £535,511 (2022: gains £852,940) were recognised as a result of foreign exchange. All of the Foundation’s operating costs are paid by UBS AG, and are not possible to quantify.

10 / 29

Trustees’ report: 31 December 2023

Balance sheet

The Foundation’s balance sheet shows total funds of £39,822,717 at 31 December 2023 (2022: £40,642,711). £31,592,859 (2022: £31,680,348) represents restricted funds held for the purposes of making grants and PRI. Unrestricted funds and free reserves total £8,229,858 (2022: £8,962,363).

Investment policy

The Trustees have not yet established a formalised investment policy. This is considered a minor risk as at this stage the Foundation intends to spend any income it receives directly on grants furthering its charitable mission. This is reviewed periodically. Funds are currently held in cash in the Foundation's bank accounts.

Reserves policy

The Foundation currently has no formalised reserves policy. This is due to the fact that the Member covers the costs of the Foundation and that any additional funding is intended to be spent in its entirety on the projects to improve the outcomes for children. There is no intention at this stage of holding reserves, as these have not been deemed necessary to the functioning of the Foundation.

Going concern

The Foundation’s activities, together with the factors likely to affect its future development, performance and position are set out within this report. The financial position of the Foundation is reflected on the balance sheet. At 31 December 2023, unrestricted funds and free reserves totalled £8,229,858 (2022: £8,962,363).

The Trustees of the Foundation have concluded that there are no material uncertainties related to events or conditions that cast significant doubt on the ability of the Foundation to continue as a going concern. The Trustees are of the opinion that the Foundation will have sufficient resources to meet its liabilities as they fall due, as they believe that UBS AG will continue to support the Foundation’s activities. The Trustees have a reasonable expectation that the Foundation has adequate resources to continue in operational existence for the foreseeable future for a period of 12 months from the date of these financial statements. For this reason, they continue to adopt the going concern basis in preparing the financial statements. The going concern period covers at least 12 months from the date which these financial statements are signed.

Promoting the success of the company

The Trustees have demonstrated their commitment to promoting the success of the Foundation. In doing so, they have diligently considered and given regard to the following factors outlined in section 172(1)(a) to (f) of the Companies Act 2006, ensuring that all decisions made have long-term benefits:

11 / 29

Trustees’ report: 31 December 2023

In summary, the Trustees have placed great importance by acting in a manner that promotes the success of the Charity by giving due regard to the long-term consequences of their decisions, fostering business relationships, considering the impact on the community and environment, maintaining high standards of business conduct, and acting fairly. Their dedication to these principles has contributed to the Charity's growth, sustainability, and positive impact on the beneficiaries the Foundation serves.

Disclosure of information to the auditor

So far as each person who was a Trustee at the date of approving this report is aware, there is no relevant audit information, being information needed by the auditor in connection with preparing its report, of which the auditor is unaware. Having made enquiries of fellow Trustees, each Trustee has taken all the steps that he/she is obliged to take as a Trustee in order to make himself/herself aware of any relevant audit information and to establish that the auditor is aware of that information.

Streamlined energy and carbon reporting

As the Foundation is not deemed to have consumed more than 40,000kWh of energy in the reporting period (by virtue of the Charity’s place of operation and staff being provided UBS AG London Branch) it considers itself a low energy user under the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 and does not report on its emissions, energy consumption or energy efficiency activities.

Approved by the Trustees and signed on their behalf by Trustee name: Eva Lindholm

Signature:

Date: 28th June 2024

12 / 29

Statement of Statement of Trustees’ re sponsibilities: sponsibilities: 31 December 2023

The Trustees (who are also Directors of UBS Optimus Foundation UK for the purposes of company law) are responsible for preparing the Trustees’ report, Strategic report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice and FRS 102 “The Financial Reporting Standard Applicable to the UK and Republic of Ireland”).

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Each of the Trustees confirms that:

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

The auditors, Ernst & Young Ltd (EY), are deemed to be reappointed under the Companies Act 2006, s487(2) .

Approved by the Trustees and signed on their behalf by

Trustee name: Eva Lindholm

Signature:

Date: 28th June 2024

13 / 29

: : Independent auditor’s report Year to 31 December 2023

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF UBS OPTIMUS FOUNDATION UK

Opinion

We have audited the financial statements of UBS Optimus Foundation UK (the ‘charitable company’) for the year ended 31 December 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows, Principal accounting policies and the related notes 1 to 16. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 below. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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 charitable company’s ability to continue as a going concern for a period of 12 months from 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. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the trustee’s ability to continue as a going concern.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained in the annual report.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in this report, we do not express any form of assurance conclusion thereon.

14 / 29

Independent auditor’s report: Year to 31 December 2023

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of the other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have identified no material misstatements in the Strategic report or the Trustees’ report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 13, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’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 management either intends to liquidate the charitable company or to cease operations, or has no realistic alternative but to do so.

15 / 29

Independent auditor’s report: Year to 31 December 2023

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 or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material 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.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

A further description of our responsibilities for the audit of the financial statements is located on the

Financial Reporting Council’s website at https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’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 charitable company’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 company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Mike Gaylor (Senior Statutory auditor)

for and on behalf of Ernst & Young LLP, Statutory Auditor London

Date 28 June 2024

16 / 29

Independent auditor’s report: Year to 31 December 2023

Section 2

Financial statements

17 / 29

Statement of Financial Activities (including income and expenditure account): Year to 31 December 2023

Unrestricted Restricted
funds funds 2023 2022
Notes £ £ £ £
Income from:
Donations 1 2,679,311 143,748,137 146,427,448 90,331,026
Investments 2 1,868,847 — 1,868,847 532,307
Total income 4,548,158 143,748,137 148,296,295 90,863,333
Expenditure on:
Charitable activities 3 998,666 147,582,112 148,580,778 60,138,417
Total expenditure 998,666 147,582,112 148,580,778 60,138,417
Net income (expenditure) before gains
and transfers 3,549,492 (3,833,975) (284,483) 30,724,916
Transfers between funds 12 (3,215,803) 3,215,803 — —
Other(losses) gains 6 (1,066,194) 530,683 (535,511) 852,940
Net income (expenditure) and net
movement in funds (732,505) (87,489) (819,994) 31,577,856
Reconciliation of funds:
Total funds brought forward 8,962,363 31,680,348 40,642,711 9,064,855
Total funds carried forward 8,229,858 31,592,859 39,822,717 40,642,711

All of the Charity’s activities are derived from continuing operations.

All recognised gains and losses are included in the above Statement of Financial Activities.

The accompanying accounting policies and notes on pages 21 to 29 form an integral part of the financial statements. A comparative statement of financial activities is presented in note 17 to these financial statements.

18 / 29

Balance sheet: As at 31 December 2023

Notes 2023
£		 2023
£		 2022
£		 2022
£
Fixed assets:
Programme-related investments
8
Current assets:
Debtors
9
Cash at bank and in hand
Creditors:amounts falling due
within one year
10
Net current assets
Total assets less current
liabilities
Creditors:amounts falling due in
more than one year
11
Total net assets
The funds of the Charity:
Restricted income funds
12
Unrestricted funds		 1,307,528
40,646,900		 2,334,017
41,795,289		 713,400
42,278,385		 2,132,550
39,153,192
41,954,428
(159,139)		 42,991,785
(3,838,593)
44,129,306
(4,306,589)		 41,285,742
(643,031)
39,822,717 40,642,711
31,592,859
8,229,858		 31,680,348
8,962,363
39,822,717 40,642,711

The accompanying accounting policies and notes on pages 21 to 29 form an integral part of the financial statements.

Approved by the Trustees and signed on their behalf by:

Trustee name: Eva Lindholm

Signature:

Date: 28th June 2024

19 / 29

Statement of Cash Flows: Year ended 31 December 2023

Notes 2023
£
2022
£
Cash flows from operating activities:
Net cash (used in) provided by operating activities
A
Cash flows from investing activities:
Investment income		 (2,964,821)
30,268,177
1,868,847
532,307
Net cashprovided byinvestingactivities 1,868,847
532,307
(Decrease)/Increase in cash and cash equivalents
Reconciliation of changes in cash and cash equivalents
Cash and cash equivalents at 1 January 2023
B
Change in cash and cash equivalents due to exchange rate
movements		 (1,095,974)
30,800,484
42,278,385
10,624,960
(535,511)
852,940
Cash and cash equivalents at 31 December 2023
B		 40,646,900
42,278,385
A Reconciliation of net movement in funds to net cash provided by operating activities
2023
£
2022
£
Net movement in funds (as per statement of financial activities)
(819,994)
31,577,856
Foreign-exchange losses (gains)
535,511
(852,940)
Investment income
(1,868,847)
(532,307)
(Increase) in programme related investment value
(201,467)
(421,363)
(Increase) in debtors
(594,128)
(584,898)
(Decrease)increase in creditors
(15,896)
1,081,829
Net cash(used in) provided by operating activities
(2,964,821)
30,268,177
B Analysis of cash and cash equivalents
2023
£
2022
£
Cash at bank and in hand
40,646,900
42,278,385

20 / 29

Principal accounting policies: Year ended 31 December 2023

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below.

Basis of preparation

These financial statements have been prepared for the year to 31 December 2023.

The financial statements are prepared on an accruals basis, and have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these financial statements.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The Foundation constitutes a public benefit entity as defined by FRS 102.

The financial statements are presented in Pound Sterling and are rounded to the nearest pound.

Critical accounting estimates and areas of judgement

Preparation of the financial statements requires the Trustees and management to make significant judgements and estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including an expectation of future events that are believed to be reasonable under the circumstances. Although these estimates are based on the Trustees’ best knowledge of the amount, event or actions, actual results may differ from those estimates.

Areas requiring the use of estimates and critical judgements that may impact on the Charity’s financial activities and financial position include:

Assessment of going concern

The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The Trustees of the Foundation have concluded that there are no material uncertainties related to events or conditions that cast significant doubt on the ability of the Foundation to continue as a going concern. The Trustees are of the opinion that the Foundation will have sufficient resources to meet its liabilities as they fall due, as they believe that UBS AG will continue to support the Foundation’s activities. The Trustees have a reasonable expectation that the Foundation has adequate resources to continue in operational existence for the foreseeable future for a period of 12 months from the date of these financial statements. For this reason, they continue to adopt the going concern basis in preparing the financial statements.

21 / 29

Principal accounting policies: Year ended 31 December 2023

Income recognition

Income is recognised in the period in which the Foundation has entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received.

Income comprises donations, gifted services and investment income. All income is accounted for on an accruals basis in accordance with the conditions of the SORP.

Donations are received from UBS AG clients and include related Gift Aid tax reclaims. Donations are recognised when the charity has confirmation of both the amount and settlement date. Gift Aid is recognised as revenue as at the date of the donation claiming Gift Aid contingent upon the FRS 102 revenue recognition principles of entitlement, probability, and measurement being met.

Gifted services in the form of donated services received from UBS AG London Branch (the "Member") that cannot be quantified with reasonable accuracy are not recognised by the Foundation.

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; it is calculated and accrued in line with the deposit agreement.

Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. All expenses are allocated or apportioned to the applicable expenditure headings. Expenditure is presented in either restricted or unrestricted funds, depending on the classification of the income from which it is funded.

Expenditure on charitable activities includes all costs associated with furthering the charitable purposes of the charity through the provision of its charitable activities.

Charitable grants are made where the Trustees consider there is real need following a review of the details of each particular case and comprise single year payments rather than multi-year grants. Grants and donations are included in the statement of financial activities when approved for payment. A creditor or debtor is recognised for grants and donations approved but unpaid at the period end.

Support costs

Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the Foundation it is necessary to provide support in the form of financial and governance procedures, provision of office services and equipment and a suitable working environment. Gifts in kind in the form of donated services received from UBS AG London Branch that cannot be quantified with reasonable accuracy are not recognised by the Foundation.

Support costs are allocated to the Foundation’s single charitable activity.

Foreign currency exchange

The Foundation's presentational and functional currency is pound sterling. Transactions denominated in foreign currencies are initially recorded in the functional currency at the exchange rate ruling at the date of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate ruling on the balance sheet date. Non-monetary items denominated in a foreign currency, measured at fair value are translated into the functional currency using the exchange rate ruling at the date when the fair value was determined.

The Foundation has cash balances denominated in foreign currencies. All currency differences are included in the statement of financial activities.

22 / 29

Principal accounting policies: Year ended 31 December 2023

Fund accounting

The Foundation has restricted and unrestricted funds. Restricted funds are irrevocable funds subject to specific conditions imposed by the Foundation and taken directly to the statement of financial activities. Funds are typically granted within one to two years of receipt.

Company shares

The Foundation was incorporated on 12 July 2013 without share capital and is limited by guarantee. The guarantor of the Foundation is the Member. In the event of the Foundation being wound up, the liability of the Member is limited to £1.

The Foundation has indemnified all Trustees in respect of any liabilities properly incurred in running the Foundation to the extent permitted by the Companies Act 2006.

Programme-related investments

Programme related investments are social investments made directly in pursuit of the Charity’s charitable purposes by funding specific activities where a financial return is not the primary reason for making the investment.

Programme related investments consist of concessionary loans. The loans are initially recognised at the amount paid with the carrying amount adjusted in subsequent years to reflect repayments and adjusted if necessary for impairment. Any impairment is written off and treated as charitable expenditure. Interest receivable on the loan is credited to the statement of financial activities in the year in which it arises.

Debtors

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. Debtors have been discounted to the present value of the future cash receipt where such discounting is material.

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the Foundation anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

23 / 29

Notes to the financial statements: Notes to the financial statements: 31 December 2023 31 December 2023

1 Donations

Unrestricted
funds
£
Restricted
funds
£
2023
£		 2022
£
Donations
Gifts in kind
2023 Total funds
2022 Total funds		 2,609,139
143,748,137
146,357,276
70,172
—
70,172		 90,268,336
62,690
2,679,311
143,748,137
146,427,448		 90,331,026
7,293,851
83,037,175		 90,331,026

Included in gifts in kind above are donated services from UBS AG, the Foundation’s immediate controlling party, of £70,172 (2022: £62,690) in respect of audit and accountancy fees paid on the Charity’s behalf. During the year UBS AG provided the Foundation with administrative support in the form of donated staff time, and also provided its facilities and infrastructure free of charge. This support has not been recognised in the financial statements because it has not been possible to quantify the value with reasonable accuracy. There is no Service Level Agreement in place between the Charity and UBS AG London Branch to support the calculation of any such gift in kind value.

2 Investment income

Unrestricted
funds
£
Restricted
funds
£
2023
£		 2022
£
Bank interest
Income from programme related investments
(note 8)
2023 Total funds
2022 Total funds		 1,789,578
—
1,789,578
79,269
—
79,269		 472,751
59,556
1,868,847
—
1,868,847		 532,307
472,751
59,556		 532,307

24 / 29

Notes to the financial statements: 31 December 2023

3 Charitable activities

Unrestricted
funds
£
Restricted
funds
£
2023
£		 2022
£
Grants awarded by theme
Child protection
Community, society and welfare
Education
Emergency response
Environment
Health
Other charitable expenditure - consultancy
Support costs
Auditor’s remuneration
Accounting services
Other
2023 Total charitable activities expenditure
2022 Total charitable activities expenditure		 —
37,419,089
37,419,089
—
52,665,334
52,665,334
—
11,878,029
11,878,029
—
9,822,673
9,822,673
913,150
26,250,764
27,163,914
—
9,053,008
9,053,008		 5,638,849
15,077,993
16,739,048
5,342,152
12,012,215
5,248,594
913,150
147,088,897
148,002,047
—
493,215
493,215
32,025
—
32,025
30,960
—
30,960
22,531
—
22,531		 60,058,851
—
30,500
32,190
16,876
85,516
—
85,516		 79,566
998,666
147,582,112
148,580,778		 60,138,417
79,566
60,058,851		 60,138,417

There were 126 grants made to 87 charitable institutions. The Charity applies the exemption to disclose grant recipients on the grounds of serious prejudice.

4 Staff costs and remuneration of key management personnel

The Foundation employed no staff members during the year (2022: none) and incurred no staff costs (2022: £nil).

The key management personnel of the Charity in charge of running and operating the charity on a day to day basis comprise the Trustees and the following staff employed by UBS AG or UBS Business Solutions AG, which include but are not limited to the Head of Philanthropy Services UK, a Business Management team; a Philanthropy Advisory team, and a Business Development team. These staff are employed and remunerated by UBS AG London Branch or UBS Business Solutions AG. No remuneration was paid to the key management personnel by UBS Optimus Foundation UK.

5 Net income (expenditure)

This is stated after charging:

This is stated after charging:
2023 2022
£ £
Auditor’s remuneration 32,025 30,500

25 / 29

Notes to the financial statements: 31 December 2023

6 Other (losses) gains

Unrestricted
funds
£
Restricted
funds
£
2023
£		 2022
£
Foreign exchange movements
2023 Total funds
2022 Total funds		 (1,066,194)
530,683
(535,511)		 852,940
(1,066,194)
530,683
(535,511)		 852,940
527,512
325,428		 852,940

7 Taxation

UBS Optimus Foundation UK is a registered charity and is therefore not liable to income tax or corporation tax on income or gains derived from its charitable activities, as they fall within the various exemptions available to registered charities.

8 Programme-related investments

At the year end, the charity had investments which were held directly in pursuit of the organisation’s charitable activities, as follows:

2023
£
2022
£
At 1 January
Additions
Repayments
Movement due to foreign exchange
At 31 December		 2,132,550
1,711,187
416,735
615,513
(168,695)
(123,089)
(46,573)
(71,061)
2,334,017
2,132,550

The programme-related investments comprise four loans.

Hope and Homes for Children

In 2017, one loan was for an amount of £1,443,071 made to Hope and Homes for Children. The loan amount was drawn down on 1 August 2017 and has been given to allow investment in fundraising to develop a diversified sustainable income so that Hope and Homes for Children can achieve the scale of operation required to deliver the mission to be a global catalyst for the eradication of institutional care of children. Following a restructure of the impact loan in early 2020, the loan is repayable in instalments, with the final payment date being 30 June 2030 (previously 30 June 2022). The principal amount of the loan outstanding carries interest at a rate of 2%, accruing daily. Interest was only payable on each anniversary of the date of drawdown until June 2022.

Impact Water

In 2018, a second loan was for an amount of US$500,000 (£393,549) made to Impact Water. The loan amount was drawn down on 30 July 2018 and has been given in order to provide safe drinking water to schools by providing an affordable package of systems, maintenance and credit, that improves children’s health and their school performance. The loan is repayable on the final repayment date of 15 September 2025. The principal amount of the loan outstanding carries interest at a rate of 5%, accruing daily. Interest is payable on each anniversary of the date of drawdown and the final repayment date.

26 / 29

Notes to the financial statements: 31 December 2023

Fairventures Social Forestry

In 2022, the Foundation made a third loan for an amount of US$600,000 (£537k) to PT Fairventures Social Forestry. The loan amount was drawn down on 31 March 2022 and has been given in order to fund the setup of agroforestry plantations on degraded land, the sustainable management of the existing plantation area, increasing the land dedicated to conservation. The loan will further finance the resource intensive harvest of timber and increase the production of cash crops which are intercropped in the timber plantations. This loan is repayable over 10 years. The principal amount of the loan outstanding carries interest at a 0 to 8% interest rate with capital repayment between year 6 to 10, accruing daily. Interest is payable on each anniversary of the date of drawdown and the final repayment date.

Blue Alliance

In 2023, the Foundation made a loan for an amount of US$500,000 to Blue Alliance. The loan amount was drawn down on 7 February 2023 and has been given in order to protect the environment, relieve poverty, improve education and community development, through the development of ecotourism programmes, build of an interpretation centre, purchase of equipment and support community engagement. The loan is repayable over 8 years. The principal amount of the loan outstanding carries an interest rate accruing daily of 5%, for the first period and variable thereafter. Interest is payable on each anniversary of the date of drawdown and the final repayment date.

9 Debtors

2023 2022
£ £
Accrued income 1,307,528 713,400
10 Creditors: amounts falling due within one year
2023 2022
£ £
Grant creditors 159,139 3,838,593
11 Creditors: amounts falling due after more than one year
2023 2022
£ £
Grant creditors 4,306,589 643,031

27 / 29

Notes to the financial statements: 31 December 2023

12 Restricted funds

The charity’s restricted funds all comprise funds held for the purpose of making grants and programme related investments, in line with the charity’s core areas of focus, as shown in note 3.

Transfers from unrestricted funds to restricted funds (shown on the statement of financial activities) represent instances whereby the charity’s general funds were utilised to fund projects which had predominantly been funded previously by restricted funds.

13 Analysis of net assets between funds

Unrestricted
funds
£
Restricted
funds
£		 2023
£
Fund balances at 31 December 2023 are represented by:
Programme-related investments
Net current assets
Creditors: amounts falling due after more than one year
Total net assets		 —
2,334,017
8,229,858
33,565,431
—
(4,306,589)		 2,334,017
41,795,289
(4,306,589)
8,229,858
31,592,859		 39,822,717
2022
£
2,132,550
39,153,192
(643,031)
40,642,711
Unrestricted
funds
£
Restricted
funds
£
Fund balances at 31 December 2022 are represented by:
Programme-related investments
Net current assets
Creditors: amounts falling due after more than one year
Total net assets		 —
2,132,550
8,962,363
30,190,829
—
(643,031)
8,962,363
31,680,348

14 Share capital

The Foundation is a company limited by guarantee and has no share capital. The liability of the Member is limited to £1.

15 Related parties

The Trustees received no emoluments or expenses during the year.

The immediate controlling party is its Member, UBS AG London Branch (Company Registration No. FC021146), a branch of the ultimate parent undertaking and controlling party UBS AG (Swiss Registration number CHE101.329.561), a company incorporated in Switzerland with a registered address of Aeschenvorstadt 1 4051 Basel, Switzerland. UBS AG is the sole Member of UBS Optimus Foundation UK.

The Foundation received donated services and resources from its Member with no conditions attached. Details of these services is provided in note 1. The Foundation received £11,850,619 (2022: £10,889,172) of income in the form of matched funding from UBS AG. UBS AG is also the sole Member of UBS UK Donor-Advised Foundation (Company Registration No. 08619664), a registered charity (Charity Registration No. 1153551). During the year, the Foundation received donations from individuals via the UBS UK Donor-Advised Foundation of £76,562,917 (2022: £31,930,671). All related party transactions were conducted at arm’s length. Furthermore, UBS Optimus Foundation UK is part of a network of Optimus Foundations operating globally. These may also be considered as related parties.

28 / 29

Notes to the financial statements: 31 December 2023

16 Subsequent events

There are no subsequent events to be disclosed for the year ended 31 December 2023.

17 Comparative statement of financial activities

Unrestricted Restricted
funds funds 2022
Notes £ £ £
Income from:
Donations 1 7,293,851 83,037,175 90,331,026
Investments 2 472,751 59,556 532,307
Total income 7,766,602 83,096,731 90,863,333
Expenditure on:
Charitable activities 3 79,567 60,058,850 60,138,417
Total expenditure 79,567 60,058,850 60,138,417
Net income before gains and transfers 7,687,035 23,037,881 30,724,916
Transfers between funds 12 (208,094) 208,094 —
Other(losses) gains 527,512 325,428 852,940
Net(expenditure) income and net movement in funds 8,006,453 23,571,403 31,577,856
Reconciliation of funds:
Total funds brought forward 955,910 8,108,945 9,064,855
Total funds carried forward 8,962,363 31,680,348 40,642,711

29 / 29