THE SEQUOIA TRUST Registered Charlty No." 1163457 FINANCIAL STATEMENTS FOR THE YEAR ENDED 30th June 2022 The Sequoia Trust Trustees Report for the year ended 30th June 2022 The trustees present their report along y￿th the finanaal stslements of the Trust for the period to 30 June 2022. The Trust Is a CIO (Charitable Ino)rpordted Organisationl and is registered Ythh the Charity Commission for England and Wales with registered charity numt*r 1163457. Trustees Sir Paul Marshall Lady Sabina Marshall Deborah Afdhal Claire Musgrdve The trustees, as shoym above, were appointed by the Trust Deed, arml subsequent trustee5 can be appointed by them. AJI the truslee5 re￿ve wular urxlaies on the charity sector. Prlnclpal offi￿ George House 131 Sloane Street London. SW1X 9AT Bankers Natwest Bank Pl¢ City of London Offi I Princes Street London EC3P 3AR Auditors Moore ￿ngSton Smtth LLP 9 Appold Streel Floor 6 London EC2A 2AP Solicltors Macfartanes 20 Cursitor Street London EC4A 1 LT Oblfjcts and Activiti•s The objects of the Trust are for such exclusivety charitable purposes for the benefit of public in any part of the Worfd as the Tnjstees may in th￿r absolute dis¢yetbDn think fit. The Trustees confim that they have complied with the duty in section 17 of Ihe Charities Act 2011 to have due regard to Ihe Charity Commission's generdl guidance on PU￿1¢ benefit. Achievements. Perfomance and Financial Revlew During the period the Trust r￿e1Ved £58,092,808 donation512021.. £32,465,270) from truste8s induding grft aid of £nil12021.. £2.500,0001. The Trust was grfted inveslments of £58,092,80812021.. £19,965,270) from th8 trustees. The Twst donatsd £80,232,86512021: £5.419,2441 as detailed in note 3 to the accounts. Al awards and donations have been made in keeping V￿th the Trust guidelines and objectives of the CIO Constitution. Grants Pollcy The Trustees discuss each potenti81 grant before a deasion is taken lo support a charitable organi5abon. The grants are given at ams length. for use in On-g￿n9 charitable acti￿ltieS of an ¢xganisation. and are generally requested to remain confidential. Page.. 1 The Sequoia Trust Trustees Report for the year ended 30th June 2022 (Continued) Inv8$tm•nt Polky The Investrnenl policy of the Trust is to a¢hieve low volatility. absolute returns, whilst seeking lo maintain the capital value. The investments donated do not pay a diwdend and therefore the only source of income WOLbld be on disposal. Reserves Policy The Trustees ensure the Trust holds sufficient wjrking Capital for the ongoing grant commitrnenls. Resoryes have been built up to fund future grant actiwties. The current c2txtsl value of the investments ¢urrenlly stands 81 £415,476,092 and the current bank balan￿ stsnds al £60,854,032. Unrestricted funds cu￿endY show 8 surplus of £417.458,923. The trustees review this on an annual basis. Risk Management The major risks lo which the Trust is exposed. as identified by the ITUStees. have been reviewed and the trustees are satisfied that the processes are in place mib.gale those risks. There is a risk we wll not attract sufficient philanthrop￿ caytal lo conb'nue to meet the Trust's commitments. Mitigation: The Trust ￿ntinUallY assesses irs level of reserves before committing to grants payable lo ensure the Tnjst ahvay3 has suffioent reserves to continue operations. The￿ is a risk that the investrnents wll not yield sufficient retums to frjnd the Twsl's commitsnenls. hAitigab'on.' The Trustees rewew the invesbnents made by the Twsl from time to time and would take appropriate steps in the event there were insuffiryenl fetums on the Trusfs investsnenl ￿￿0110. Kay managemont and r•muneration polky The Trustees are not remunerated arKJ the Trust has ￿ employees. Appointment of Tru$t••s New trustees may be appointed by the exi51ing trustees. to fill a vacancy or act as an additional trustee. The Trust shall select appropriate trustees and promde them an induction to acquaint them wth the govemance and policies of the Trust a5 well as vthal is expected of them in their new role. Additional training andlor information ￿711 be provided to the twslees on an ongoin9 basis. Futura Plans The trustees plan to pursue a FNJIW of continuty over the wming ￿1Ve months. no major operational changes f0￿caSt for the coming year. Stat8ment of Tru$ts¢$' Responsibilities The trustees a￿ responsible for preparing the Annual Report and the finanaal ststements in ac¢ordan¢e with applicable law and regulations. Charity law requires the trustees lo prepare finanaal ststements for each financtal year in accordance wtth United Kingdom Generally Accepted Accounting Practice (Unsted lfjngdom Accounting Standards and applicable lawl- The financAal statements are required by law to give a true and f8ir Mew of the stale of affairs of the Tru51 and of the income and expendilure of the Tfust for that period. In preparing these finan¢ial ststements, the trustees are required trj.. select suitable accounting poliaes and then apply them consistenoy. observe the methods and prinoples in the Charities SORP.. make judgments and eslimales that are reasonable and prudent. stste whether applicable UK A￿Unting Stsndards have been folbwEd. subject to any material departures disclosed and explained in the financial statements- prepare the financial stslemen15 on the going concem basis unless it is inappropriate lo presume that the Trust wll continue In business. Page 2 The Sequoia Trust Trustees Report for the year ended 30th June 2022 (Continued) The trustees are responsible for keeping proper accounting records that disdose with ￿asonable accuracy at any time the financrdl position of the Trust and enable them to ensure that the financial statements COm￿Y with the Charibes Act 2011. They are also responsibte for safeguarding the assets of the Tmst and hence for taking reasonable steps for the p￿vention and detection of fraud and other *r￿ula￿tie$. Audlt Infomiation So far as e8ch of the trustees at the time the Irustee's rewi is aywroved is aware.. there is no relevant information of whi¢]kn the auditor5 a￿ unaware,. and they have tsken all relevant steps Ihey ought lo have taken to make themselves a%Yare of any relevant audit Infomatic￿ and to establish that Ihe auditors are avore of that infomialion. Auditors Moore lQngston Smth LLP continued to be the auditors during the period. On behalf of the Truslees'.- Trustso Date.. £5 14 IWL Page.. 3 Independent Auditors Report to the Trustees of The Sequoia Trust Opinion We have audited the financial statements of The Sequoia Trust for the year ended 30 June 2022 which comprise the Statement of Financial ActNitses. the Summary Income and Expenditure Account, the Balance Sheet, the Cash Flow Statement an¢J notes lo the financial statements. induding a summary of significant accounting policies. The financial reporting framework that has i￿n 8pplied in their preparation is applicable law and United Kingdom Accounting Standards, induding FRS 102 'The Financial Reptsrbng Standard Applicable in the UK and ITeland' {Uniled Kingdom Generalty Accepted Accounting Pract￿e). In our opinion the financial statemefits.. give a true and faFr wew of the state of the chartys affairs as al 30 June 2022, and of ils incoming resou[￿S and application of resources, for the year then ended" have been property prepared in accordance wth Unl1￿ lfjngdom Generally Accepted A￿ountIng Practi￿. and have been prepared in accordanc& the ￿quirements of the Charibes Act 2011. Basis for opinion We conducted our audtt in aCCordar￿e wth Intemaliona Slandards on Auditing IUKI {ISAslUKII an¢J applicable law. Our responsibilities uniler those stsndards are furlher described in the Auditorfs Responsibilities for the audit of financial statements section of our reF¥)rt. We a￿ independent of the charity in accordance with the ethical reqU1￿ments that are relevant lo our audit of the financial statements in the UK, induding the FRC'S Ethical Standard, and have ft1￿l11ed our other ethical responsibilities in awrdance ¥Mth these requirements. We believe that the audit evidence we have obtained is suffiuent and appropriate to provide a basis for our opinion. Conclusions relating to going con¢orn In a￿d￿ng the ffinanaal ststements, we have concluded that the trustees, use of the going con¢em basi5 of accounting in the preparation of the fin8nckg1 ststemerts is appropriate. Based on the work we have performed, we have not idenbfied any material uncertainties relating lo events or conditions that, indiwdually or collectivety, may cast signfficanl doubl on the ¢hariWs ability to continue 85 a going n¢em for a period of al le8St tsvelve morrths from %then the financial stslements are authorised for issue. Our reswnsibilities and the resphjnsibililies of the trustees vith respect lo going cOr￿M are described in the relevant sections of this reporL Othgr Infomiatlon The other information comprises Ihe information included in the annu81 report, other than the financtal st81ements and our auditorfs report Ihereon. The trustees are responsble for the other infom)alion. Our opinion on the financial statements does not cover the other infomiation and. except to the extent otherwise explial￿ stated in our report, we do not express any form of assurance condusion thereon. In connection with our audit of the finanual ststements. our responsibility is to read the other information and, in doing so, consider whether the other infomiation is materialty in¢onsislent the financial stslemen15 or our knO￿edge obtsined in the audit or otherwise appears lo be materially misslaled. tf we identify such material inconsistencies or apparent material misstslements. we are required to determine whether there is a material misslatemenl in the financial statements or a material misstatement of the other inforniation. If, based on the wod( we have perfomied, we condude that there 15 a malerial misstatement of this other information, we a required to report that fact. W8 have nothing lo report in this rega￿. Page.. 4 Independent Auditors Report to the Trustees of The Sequoia Trust Mattors on which w• arn required to report by exceptlon We have nothing lo repx)rt in respect of the followng mattefs bthere the Charities Act 2011 requires us lo report to you rf. in our opinion.. the information gNen in the Tru5tees' Annual Report 15 inconsistent in any material respect wth the financral stslem8nts'. or the charity has not kept adequate accounting re￿rds- or the financial slalements are not in agreement the 8¢counting records and ￿turnS. or we have not received all the infomiation and ex￿nationS we reqUI￿d for our audit. Responsibilities of tru$tws As explained more fully in the Iruslees, respon￿bIlItieS statement set out on pages 2 and 3. the trustees are responsible for the prep8ralion of the finanryal statements 8ThJ for being 5atisffied that they give a true and fair ew, and for such intemal control as the trustees determine is necessary to enable the preparation of financial statements that are free from rnaterial misststement, vA)ether due to fraud or error. In preparing the financial statements, the trustees are resFM)nsible for assessing the chanws abilty lo continue as a going concem. disclosing. as appl￿ble. matters related to going ¢oncem and using the going concem basis of accounting unless Ihe trustees either intend to liquidate the charity or to cease operations, or have no realistic attemative but to do so. Auditor's responsibilities for tho audit of the financial statements We have been appointed as audrtor under section 144 of the Charities Act 2011 and report in accordance wtth regulations made under section 154 of that Act Our objectwes are lo obtain reasonable assurance about vthether the ffinanoal statement5 as a %thole are free from material misstatement, whether due kn fraud or error. arKI to issue an audrtorfs ￿pOrt that includes our opinion. Reasonable assurance is a high levd of assurance. but is not 8 guarantee that an audit conducted in accordance with ISA5 {UKI wll athys detecl a material misstatement when it exists. Misstatemen15 Can arise from fraud or error and are considered material rf. indiwdually or in aggregate, they could reasonably be expected lo influerKe the economic deosions of users tsken on basis of these fin8n¢ial statements. As part of an audit in ac¢ordance wlh ISAS IUKI we exercise professional judgement arvj maintain professional scepticASFn throughout the al￿1t. We also= Identify and assess the risks of Tnalerial misstatement of the financial ststsments, whether due to fraud or error, design and perfofm audit procedures responsive to those risks, and obtsin audit evidence that Is sufficient and appropriate to prowde a basis for our opinion. The risk of not detecting a material misststemenl ￿SUIting from fraud is higher than for one results.ng from error, as fraud may involve collusion, forgery, intentional omissions. misrepresentations, or the override ol intem81 wntrol. Obtain an understanding of intemal control relevant lo the a￿lIt in order to design audit procedures that are appropriate in the ¢irctJmstances, bLrt not for the purposes of expressing an opinion on the effectivene55 of the chartys Intern￿ control. Evaluate the appropriateness of w)unting pcAll￿e$ used and the reasOna￿ene$S of accounting estimates afKI related disclosures made by the trustees. Conclude on the appropriafrness of Ihe trustees. use of the going concem basis of accounting and, based on the audit evidence obtained, vthether a m81erial Un￿rtaInty exists related to events OT condit￿n5 that may cast 5ignfficant doubl on the charty's ability to continue as a going concem. If we conclude that a material uncertainty exists. we are required to draw attention in our auditor's report to the related dis¢losures in the fin&¢1￿ statements or, rf such disdosures are inadequate, to modify our opinion. Our cO￿l￿S1on5 are based on the audit e￿￿ence obtained up to the dale of our auditorfs report. However. future events or condilions may cause the charityto cease to continue 8$ a going conc8m. Evaluate the overall presentabon, Structu￿ and conlenl of the financial ststements. including the disclosures. and whether the financial statements represent the undedying transactions and events in 8 manner that ￿hIeVeS fair presentab'on. Page.. 5 Independent Auditors Report to the Trustees of The Sequoia Trust Audltorfs responslbilitles for the audit of the financlal statements Icontinugd) We communicate those charged wth g0veMan￿ ￿garding, amorrfJ other matters, the planned scope and timing of the audit and significant audit firKliThJs. induding any significant defKiencies in inlemal control that we identify during our audit. Explanation as to what oxtent th• audit was considered capablo of detecting irrngularities. includlng fraud Irregularities. including fraud. are instsnces of nonn of the financial statements are set out below. Going Concern Basls The trustees have assessed ￿ether the use of the wng co￿eM basis is asyropriats and have considered possible events or conditions that mwJht C2St signfficant doubl on the abilty of the Tnjst lo continue as a going concem. The trustees have made this assessment for a period of al least one year from the dale of approval of the finanaal statements. In parb¢ular the trustees have considered the Trust'5 forecasts and projections and have taken account of presSU￿S on donation and investment income. After making enquiries the trustees have ¢oncluded that there is a reasonable expectation that the Trust has adequate reSoU￿S lo continue in operational existence for the foreseeable fulure. The Trust therefore continues lo adopt the going concern basis in prep8rir@ its finarrial statemenls and there are no material uncertainties at the date of signing- Income Income is ¢￿dIted to the Statement of Financial Acliwtie5 on an accruals basis %then there is entiuement to the fijnds, the re￿p1 is probable and the amount can be measured reliably. Expenditure Expenditure is charged on an accruals basis. Grants payable are included in the Statement of Financial Activities ￿en approved by trustees and offered lo Ihe grantee. Foreign currencl•s Transactions denominated in foreign w￿ncle$ are translated into Steding at the exchange rale ruling al the dale of the transacts"ons. Assets and liabilities in fowgn currencies are translated into Steding 8t the rates of exchange ruling al the end of the financial period. AJI exchange diffe￿nCeS are dealt with in the Statement of Financial Actiwties. Investments Investments are included in the accounts at market ￿￿1￿. Realised and unrealised gains and losses on investments are induded wthin the funds. Cash and Cash Equlvalants Cash and cash equivalents indude cash al banks and in hand and short lenn deposits a maturity date of tt)ree months or less. Grants payable Contractual arrangements are re¢ogni5ed as goods and seN¢es are supplied. Other grant payments are recogr115ed vthen a construcbve 0￿19ation arises. Page." 10 The Sequoia Trust Notes to the Accounts For the year ended 30th June 2022 Accounting pollclès Icontinuedl Financial Instrum•nts The trust has ele¢tgd to appty the provision5 01 Secbon 11 'Basic Fbnanaal Instruments, and Section 12 '0ther Financial Instruments Issues, of FRS 102 to all of its finanryal insirumen15. Financial instruments are recognised in the ¢ompanYs balan¢8 sheet when thé c¢xnpany becomes party to the contractual provisions of the instrument. Fin8n¢ial assets and liabilitie5 are offset, vAth the n* amounts presented in the financial $18lements. when there is a legally gnforceable right to sel off the reco9nised amounts and ther8 Is an intention to settle on a net ba&s cf lo rgalise the a55el and setlje the liabiltty Simultaneou￿Y. Wf(h the excepiions of prepayments and de(erred income all other debtor and ¢rwlitor balances are considered to be basi¢ financial instruments under FRS 102. Critl¢al accountlng estimat8s and areas of judgernent In the view of the trustees in applying thè accounting poliues adopted. rK) critical accounting estimates and judgements we requir&1 that have a significant eff￿t on the amounts r￿OgniSed in the financial statements nor do any estimates or assumptions made cary a signthc8nt risk of matefial adjtjstmenl in the next financi81 year. 2 Don*ions raceived 2022 2021 Ir￿1VIdUal donations Donated investments Gifta 10,000,000 19,965,270 2.500,000 58,092,808 58,092,808 32.465.27f) Page.. 11 The Sequoia Trust Notes to the Accounts For the year ended 30th June 2022 Grants and donatlons payabl• in furth•rnnce of <)bjects 2022 2021 Grants Church Revitalisation Trust London SchcKJl of Economics ARK Other unrestricteAJ grants 5.000.IX)O 50,CQO,000 2,750,(X)o 200,CX)O 2.950,CK)O 55,336,000 Donatlons Church Revitalisat'on Trust Holy Trinity Brompton Ralston Cdlege Other unrestricted donations 5,054.000 1.000,￿0 18,424,365 418,￿ 24,896,865 1,700.CKJO 769.244 2,469.244 Governan￿ costs (see note 71 8,601 12.266 80,241,466 5,431,510 4 Transaction$ with Trustses No trustee received any reMUr￿atrOn for semces as a tru5tee12021'. £nil), any ￿1MbursemenI of expendrture12021.. £nil). See note 9. for related party tran￿kn￿S in tha ￿n(￿l uThYer revivw. Total aggregated donations T￿lved from Trustees during the aCc￿Jnti￿j pari￿ amounted to £58,092.80812021= £36,700,000>. This amount disdoséd is gross of Grfl Aid received C￿ donations of £nil 12021.. £2.500.0001. T￿￿tee5 gffted £58.092,80812021'. £19,965.2701 of investments during thè year as shcp•m in note 8 to accounts. S Employ•os The Tnjsl has no ￿M￿OYees. Fund Accountlng The unrestricted lund consists of those whit* the Trust may use in fijthrance of tts charitable objectives at the discretion of the trustees. Page.. 12 The Sequoia Trust Notes to the Accounts For the year ended 30th June 2022 Governan￿ costs 2022 2021 Audti f Legal and professional fees Bank and custody charges Consultancy Fees 6,570 78 1,624 329 9,388 2,628 15 235 8,601 12.266 Investments 2022 2021 Hedp Funds Opening balan¢tr as at 1 July 2021 Additions in the period Gifted investsngnts at nil cm5id8ration Redempb'on proceeds in the period Realised gains on redemption of InVestn￿ Unrealised gains on investment Unrealised I￿Ign exchange gainsl{lossesl 347.592,056 70,215.663 58,092,808 (125,368.3811 5,228,193 47,853,041 11,862,713 229,882,218 24.922.888 19,965,270 116,000,r)001 3,597,574 87,203,826 1,979,720 Market Value at 30 June 2022 415,476.092 347,592,056 Hislori<*l Cost 241,388,536 238,325,807 Significant Investmenl holdir¥Js based on market valu& at 30 June 2022 were.. ortglnal cost at 30 June 2022 Market value ai 30 June 2022 Inv8stm8llt fund5 MWF Eureka Fund USD IWF Market NeLttral Fund USD MWMA Eureka Plus Fund GBP MWF Eureka Fund GBP Kingsway Frontier Consumer (l)portuniti8s USD 89,930,968 2,107,054 102,598,492 66,752,022 23,055,705 264,444,241 85,693,421 5,791,407 198,942,123 86.603,864 38,445,277 415,476,092 Debto 2022 2021 Accrued incixne 2,503,600 2,503,600 11,675,(lQO 11,675,OCKI 10 Cred5tors: Amounts falling duè wlthln one ygar 2022 2021 Other payables Grants payable Accruals 5,067,140 460,000 6,060 5,533.200 19,888,958 5,531 19,894,489 Paga= 13 The Sequoia Trust Notes to the Accounts For the year ended 30th June 2022 11 Relatad Partl8s During the period the Trust made donations of £nil12021= £2,750.0001 to ARK. a charity of which Sir Paul Marshall is a Tnjstee. The Trust received donations of £58.092.808 {2021= £29.965,2701 fmm Sir Paul Marshall. Included in this donation was a gift of shares with a market value of £58.092.808 {2021'. £19,965,270 1. Al the period erKI there We￿ unpaid grant wmmitments to ARK of £30,000 {2021: £30,000). Ckire Musgrave is the Chair of the Finance and Risk Committee of ARK. The Trust made donations of £1,000,OCQ {2021.. £nil) to Hoty Trinity Brompton. This charity was founded by the Church Rewtalisation TrusL a charity of Sir Paul Marshall is a Tnjstee. The Trust made grants and donations of £10.054.(KIO {2021: £1.700.0001 lo The Church Revitalisation Trust, a charity of Sir Paul Marshall is a Trustee. The Trust rnade donab'ons of £336,C(Q12021'. £21J),000) to the Education Policy Institute, a Charity which Sir Paul Marshall is a Trustee. Al the end of the period there were unpaid grdnl commitments lo the Education Policy Inslilule of £336.00012021." £200,000) 12 Flnan¢ial and Capital commitments As al 30 June 2022 the Trust agreed lo a $5,000.orx)1£4.116,9201 investment in the SDG outcome fund. a fund of impact tK>nds. Al the balance sheet date SDG had not yel called any capital. Page.. 14