2020-12-31-accounts

THE SINO-BRITISH FELLOWSHIP TRUST

THE SINO-BRITISH FELLOWSHIP TRUST (Charitable Incorporated Organisation) Registered Charity Number 1174487

REPORT AND FINANCIAL STATEMENTS

31 DECEMBER 2020

THE SINO-BRITISH FELLOWSHIP TRUST

ANNUAL REPORT OF THE TRUSTEES FOR THE PERIOD ENDED 31 DECEMBER 2020

REFERENCE, LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

Mrs A.E. Ely, Chairman of the Trustees Emeritus Professor H.D.R Baker, BA, PhD Mr P. J. Ely, BA(Hons), IPFA, Deputy Chairman Emeritus Professor R.J. Foot, FBA Sir C. Hum, KCMG Professor W.W.C. Luk, FREng, CEng, CITP, FBCS, MIET, FIEEE Mrs L. Thompson, OBE Dr F. Wood

Honorary Advisors

Lady P. Youde, OBE Mrs H. Day

Office

23 Bede House Manor Fields Putney Heath London SW15 3LT

Bankers

Coutts & Co 440 Strand London WC2R 0QS

Solicitors

Farrer & Co 66 Lincoln’s Inn Fields London WC2A 3LH

Investment Advisers

HSBC Private Banking, HSBC UK Bank plc 8 Cork Street, London W1S 3LJ

Investment Custodian

HSBC Securities Services 8 Canada Square Canary Wharf, London E14 5HQ

Auditor

Braidwood Wheeler & Co Chartered Certified Accountants Goodman House 13a West Street, Reigate Surrey RH2 9BL

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THE SINO-BRITISH FELLOWSHIP TRUST

ANNUAL REPORT OF THE TRUSTEES FOR THE PERIOD ENDED 31 DECEMBER 2020 (continued)

The trustees present their report along with the financial statements of the Charitable Incorporated Organisation (CIO) for the period ended 31 December 2020. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the CIO’s Constitution, the Charities Act 2011 and 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 UK and Republic of Ireland.

OBJECTIVES

The CIO budgets to spend the income available for grants each year, based on the estimated investment income, in furtherance of the Objects stated below;

In advancing education and training in any subject:

• (a) by awarding scholarships or grants to students and academic staff at universities, other higher education institutions and vocational training institutions in Britain to enable them to undertake study or research, to attend or participate in academic and professional conferences, courses, placements, seminars and similar events in China;

• (b) by awarding scholarships or grants to students and academic staff at universities, other higher education institutions and vocational training institutions in China to enable them to undertake study or research, to attend or participate in academic and professional conferences, courses, placements, seminars and similar events in Britain;

• (c) by promoting the study of Chinese languages and

• (d) by enabling students and academic staff to participate in joint Chinese/British educational programmes and courses, including academic and other educational exchanges between Hong Kong and China.

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THE SINO-BRITISH FELLOWSHIP TRUST

ANNUAL REPORT OF THE TRUSTEES FOR THE PERIOD ENDED 31 DECEMBER 2020 (Continued)

SIGNIFICANT ACTIVITIES

Annual grants to Institutions amounted to £ 237,500 (2019 £373,970) and individual grants of £ 15,960 (2019 £63,061) were awarded during the year.

PUBLIC BENEFIT

The Trustees have reviewed the outcomes and achievements of the objectives and activities for the period, to ensure they remain focused on the charitable aims, and continue to deliver benefits to the public. The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission in determining the activities undertaken by the CIO.

Under the Charities Act 2011, the advancement of education and of the arts, culture, heritage or science is recognised as a distinct statutory charitable purpose.

Benefits of the CIO’s works:

The promotion of knowledge and raising standards by:

• funding for senior academics from China to visit the UK to undertake new and/or on-going research with British colleagues. Such results are disseminated through publications either on-line, in peer-reviewed journals and/or at International Conferences;

• funding for senior academics from Britain to visit China to undertake new and/or on-going research with Chinese colleagues, with results disseminated as indicated above;

• support for institutions, and subject areas, which have limited access to other funding sources;

• funding to support the development of Primary Health Care in China;

• the provision of bursaries to particular educational establishments for selected postgraduate scholars from China to study in the UK and

• funding to enable academics to enhance their knowledge of Chinese languages.

GRANT MAKING POLICY

The CIO receives applications for grants from individuals and also makes annual grants to institutions. If the applications are within the CIO’s Objects and Terms of Reference, grants are awarded provided funds are available. The institutions supply details of the awards made from their annual grants and the trustees ensure these comply with the Objects and Terms of Reference for individual applications.

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THE SINO-BRITISH FELLOWSHIP TRUST

ANNUAL REPORT OF THE TRUSTEES FOR THE PERIOD ENDED 31 DECEMBER 2020 (Continued)

ACHIEVEMENTS AND PERFORMANCE

2020 was dominated by the Covid-19 pandemic, which had a considerable impact on travel between China and the UK, and on academic research collaboration between the two countries. During the year the CIO kept in close touch with partner organisations and individual grant beneficiaries, aiming to maintain support as far as possible as plans were changed in the light of the pandemic.

During 2020 the CIO gave grants to 8 UK institutions, 3 overseas institutions and 3 individuals. Some beneficiaries had completed their research visits before the worst impact on travel; other scholars were part way through their research and the grant enabled their work to continue.

During the year we completed reviews of two longstanding partnerships, with the Royal Society, and with the British Academy. Through these partnerships our grants will in future be supporting UK early career researchers in the sciences as well as the humanities and social sciences as they develop research work with academics in China.

FINANCIAL REVIEW AND INVESTMENT POLICY

The income of the CIO derives solely from its investments and no appeals are made to the general public or any government agency for funds. Total income for the year to 31 December 2020 amounted to £440,809 (2019 £533,239). The cost of raising funds was 77,774 (2019 £78,838) and expenditure on charitable activities amounted to £ 313,547 (2019 £494,033) The grants awarded were less than in a normal year because of the impact of the pandemic. Total expenditure was £391,321 (2019 £572,871) giving net incoming resources of £ 49,488 (2019 outgoing resources of £39,632). The general reserves increased to £1,086,373 from £959,111 in the previous period.

In accordance with the powers given in the Constitution the trustees have delegated responsibility for the management of the investment portfolio to HSBC Private Bank (U.K.) Ltd., the investment advisers. The investment policy is to obtain a reasonable long-term overall return at a moderate level of risk. Performance is monitored by the Investment Committee of Mrs A.E. Ely, Mr P.J. Ely, Mrs L. Thompson and Dr F. Wood. There was considerable market volatility through the year, the final value of the endowment fund decreasing by £502,013 to £16,847,759. The performance of the investment portfolio (net of fees) was a decrease of 0.27% (2019 increased by 16.14%) compared with the benchmark increase of 3.34%. The UK CPI (UK inflation) for the same period was 0.97% and the target for the long term for the fund is to beat inflation, net of fees . This was not achieved this year due to the volatility of the stockmarket caused by the worldwide pandemic.

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THE SINO-BRITISH FELLOWSHIP TRUST

ANNUAL REPORT OF THE TRUSTEES FOR THE PERIOD ENDED 31 DECEMBER 2020 (Continued)

RISK MANAGEMENT

The trustees are responsible for the CIO’s risk management mitigation systems and reviewing procedures. The trustees have examined the major strategic, business and operational risks which the CIO faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to mitigate these risks. The systems are reviewed annually by the Finance Committee and Board.

FUTURE PLANS AND CHARITABLE STATUS

Future plans are to develop existing partnerships and, where appropriate, new collaborations, to continue grant making in accordance with the CIO’s objectives.

RESERVES POLICY

The trustees have agreed to retain sufficient funds to cover 3 months expenditure. Should the cash reserves be forecast to fall below this figure, depending on the cash flow requirements at the time, the trustees may at their discretion determine to draw on capital to ensure sufficient funds are available to meet the budgeted expenditure. In the opinion of the trustees the assets of the CIO are sufficient to meet its liabilities on a fund by fund basis. The trustee’s powers of investment to expend capital and income are not restricted in the Constitution of the CIO. In accordance with the original wishes of those providing funds to set up the former charity, the trustees have reclassified the Investment Fund as Expendable Endowment Funds, representing the residue of the original funding, and the remainder, representing net incoming resources for the year, as the Unrestricted Funds.

In considering the amount of income available for grants the trustees have in mind the following criteria:

1. Amounts should be retained to provide for future plans and commitments, and

2. Unrealised investment gains should be retained as part of the Expendable Endowment Funds to cover the risk of any future downturn in the market.

The trustees believe that grants should continue to be awarded up to the amount of net cash income available in any year, subject to the quality of the applications received. The remaining funds should be maintained at a level which is suitable to allow the trustees to ensure the level of working capital is sufficient to meet the day to day needs of the CIO.

The free reserves of the CIO at 31 December 2020 were £ 815,959 (2019 £682,954).

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THE SINO-BRITISH FELLOWSHIP TRUST

ANNUAL REPORT OF THE TRUSTEES FOR THE PERIOD ENDED 31 DECEMBER 2020 (Continued)

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Sino-British Fellowship Trust is a Charitable Incorporated Organisation (CIO) registered on 4[th] September 2017. The registered charity number is 1174487. The CIO was set up to take over the work of the charity of the same name (registered charity number 313669). The assets of the former charity were transferred to the CIO on 1[st] April 2018 and the former charity is now entered on the Register of Merged Charities.

The trustees are set out on page 1. Trustees are appointed by the existing trustees and serve for a period of five years after which period they may put themselves up for re-appointment. In June 2020 Emeritus Professor G.D.W. Smith, FRS, FIMMM, FInstP, FRSC, CPhys, CEng retired because of pressure of his other work. His contribution to the work of the CIO, especially through the transition from the old charity, is greatly appreciated. Sir Christopher Hum KCMG was appointed as a Trustee in August 2020 and Mrs Heather Day was appointed an honorary advisor. The trustees meet at least twice a year to agree on the award of grants and to discuss the aims of the CIO. The day to day management of the CIO has been delegated to Mrs A. E. Ely and Mr P. J. Ely. The CIO also has committees that are delegated the responsibility for overseeing and monitoring key areas of activity within the organisation and reporting to the Board of Trustees. In the opinion of the trustees the operations of the CIO in the past 12 months in reviewing and approving grant applications are in accordance with its objects.

TRUSTEE RECRUITMENT AND TRAINING

The board of trustees consists of at least five members who, as charity trustees, have the legal responsibility for the effective use of the CIO’s resources in accordance with the Objects and Terms of Reference of the CIO. Trustees are not remunerated but reasonable expenses are paid.

The CIO does not have an active policy to recruit new trustees, but approaches peoples known to have an interest in related activities or who have worked for Institutions the CIO has supported with grants.

Every prospective trustee is provided with information about the CIO’s constitution, policies and activities together with information on the Charity Commission guidance. Trustees are offered the opportunity to attend further training courses should they wish to do so.

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THE SINO-BRITISH FELLOWSHIP TRUST

ANNUAL REPORT OF THE TRUSTEES FOR THE PERIOD ENDED 31 DECEMBER 2020 (Continued)

STATEMENT OF TRUSTEES’ RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS

The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial period which give a true and fair view of the state of affairs of the CIO and of the incoming resources and application of resources of the CIO for that period. In preparing these financial statements the trustees are required to:

1. select suitable accounting policies and apply them consistently;

2. observe the methods and principles in the Charities SORP;

3. make judgements and estimates that are reasonable and prudent;

4. state whether applicable accounting standards have been followed, subject to any departures disclosed and explained in the financial statements, and

5. prepare financial statements on the going concern basis unless it is inappropriate to assume that the CIO will be able to continue in operation.

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the CIO and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charity (Accounts and Reports) Regulations and the provisions of the CIO’s constitution. They are also responsible for safeguarding the assets of the CIO and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the trustees on 1[st] July 2021 and signed on their behalf by:

Mrs A.E. ELY Chairman

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THE SINO-BRITISH FELLOWSHIP TRUST

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE SINO-BRITISH FELLOWSHIP TRUST FOR THE PERIOD ENDED 31[ST] DECEMBER 2020

Opinion

We have audited the financial statements of Sino-British Fellowship Trust (the CIO) for the period ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the CIO’s affairs as at 31[st] December 2020 and of its incoming resources and application of resources for the period then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice and

• have been prepared in accordance with the requirements of the Charities Act 2011.

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 CIO 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 CIO’S ability to continue as a going concern for a period of at least 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.

Other information

The other information comprises the information included in the annual report, including the trustees report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, 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 material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

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THE SINO-BRITISH FELLOWSHIP TRUST

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE SINO-BRITISH FELLOWSHIP TRUST FOR THE PERIOD ENDED 31[ST] DECEMBER 2020 (Continued)

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the CIO and its environment obtained in the course of the audit, we have not identified any material misstatements in the trustees report .

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

• the information given in the financial statements is inconsistent in any material respect with the trustees’ report;

• adequate and proper accounting records have not been kept;

• certain disclosures of trustees remuneration specified by law are not made; or

• the financial statements are not in agreement with the accounting records and returns or

• we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the Trustees’ Responsibilities Statement set out on page 7, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such 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 CIO’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 the trustees either intend to liquidate the CIO or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under the Charities Act 2011, section 144 and report in accordance with regulations made under the Act and relevant regulations made or having effect thereunder.

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.

Irregularities, including fraud, are instances of non compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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THE SINO-BRITISH FELLOWSHIP TRUST

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE SINO-BRITISH FELLOWSHIP TRUST FOR THE PERIOD ENDED 31[ST] DECEMBER 2020 (Continued)

Our approach to identifying and assessing the risks of material misstatement due to fraud or other irregularities including non compliance with laws and regulations was as follows:

• The engagement partner ensured that the audit team had the appropriate competence, capabilities and skills in order to identify or recognise non compliance with applicable laws and regulations;

• We identified the laws and regulations applicable to the company through discussions with the trustees and management, and from our knowledge of similar charitable organisations.

• We focused on specific laws and regulations which we considered may have a direct effect on the financial statements or the operations of the charity, including relevant legislations such as the Charites Act, as well as employment law, anti bribery and data protection legislation.

• We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and any correspondence with lawyers; and

• Identified laws and regulations were communicated to the audit team and they remained alert to any instances of non compliance throughout the audit.

We assessed the susceptibility of the CIO’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by;

• Making enquiries of the trustees as to where they considered there was a susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

• Considering the internal controls in place to mitigate risks of fraud and non compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we;

• Identified any unusual or unexpected relationships and sought explanations for the reason for such transactions; and

• Tested journal entries to identify unusual transactions

In response to the risk of irregularities and non compliance with laws and regulations, we designed procedures which included:

• Enquiring of management as to actual or potential litigation and claims;

• Reviewing any correspondence with the CIO’s legal advisers.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non compliance.

Auditing standards also limit the audit procedures required to identify non compliance with laws and regulations to enquiry of the trustees and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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THE SINO-BRITISH FELLOWSHIP TRUST

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE SINO-BRITISH FELLOWSHIP TRUST FOR THE PERIOD ENDED 31[ST] DECEMBER 2020 (Continued)

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Signed ………………………………David Wheeler F.C.C A. - Senior Statutory Auditor

For and on behalf of Braidwood Wheeler & Co – Statutory Auditor Chartered Certified Accountants Goodman House 13a West Street Reigate, Surrey, RH2 9BL

Date: ……July 2021

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THE SINO-BRITISH FELLOWSHIP TRUST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE PERIOD ENDED 31[ST] DECEMBER 2020

INCOME AND ENDOWMENTS Income from investments (Note 3) Interest TOTAL INCOME EXPENDITURE Costs of raising funds Investment management fee (Note 1h) Expenditure on Charitable Activities (Note 5) Grants to British academics for study visits to China – object (a) Grants to Chinese academics for study visits to Great Britain – object (b) Promotion of Chinese language studies – object (c) Joint UK /China academic programmes, and exchanges between Hong Kong and other parts of China – object (d) TOTAL EXPENDITURE NET INCOME/(EXPENDITURE) BEFORE GAINS AND LOSSES ON INVESTMENTS Net investment gains/(losses): Realised gains/(losses): Unrealised gains/(losses): NET INCOME/(EXPENDITURE) Transfers between funds NET MOVEMENT IN THE FUNDS FOR THE YEAR		Unrestricted Fund £ 440,227 582 440,809 67,544 220,025 11,752 14,226 313,547 127,262 127,262 -	Expendable Endowment Fund £ 77,774 77,774 (77,774) (466,953) 42,714 (502,013) -	December 2020 Total £ 440,227 582 440,809 77,774 67,544 220,025 11,752 14,226 391,321 49,488 (466,953) 42,714 (374,751) -	December 2019 Total £ 531,563 1,676
					533,239
					78,838 114,059 314,201 8,196 57,577
					572,871
					(39,632) 719,701 1,214,626
					1,894,695 -
		127,262	(502,013)	(374,751)	1,894,695

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THE SINO-BRITISH FELLOWSHIP TRUST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE PERIOD ENDED 31[ST] DECEMBER 2020

(continued)

RECONCILIATION OF FUNDS NET MOVEMENT IN THE FUNDS FOR THE YEAR Funds Brought Forward At 1st January 2020 FUNDS CARRIED FORWARD 31 DECEMBER 2020 Represented by: Tangible fixed assets Fixed assets investments Net current assets TOTAL NET ASSETS 31 DECEMBER 2020	Unrestricted Fund 127,262 959,111 _____ 1,086,373 270,414 815,959 1,086,373	Expendable Endowment Fund (502,013) 17,349,772 ___ 16,847,759 16,763,328 84,431 16,847,759	December 2020 Total (374,751) 18,308,883 ___ 17,934,132 270,414 16,763,328 900,390 17,934,132	December 2019 Total 1,894,695 16,414,188 _______ 18,308,883
				276,157 17,073,448 959,278
				18,308,883

The notes on pages 16 to 25 form part of these financial statements.

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THE SINO-BRITISH FELLOWSHIP TRUST

BALANCE SHEET AS AT 31[ST] DECEMBER 2020

FIXED ASSETS Tangible Assets (Note 2b) Leasehold property Furnishings Computer Equipment Total Fixed Assets Investments (Note 2a) CURRENT ASSETS Debtors, prepayments and accrued income Income due from broker Investment cash held by broker (Note 2a) Cash at bank and in hand Total Current Assets CURRENT LIABILITIES Creditors:Amounts falling due within one year Grants payable Other creditors and accruals Total Current Liabilities Net current assets NET ASSETS THE FUNDS OF THE CHARITY (Note 1b) Expendable Endowment (note 2a) General fund TOTAL CHARITY FUNDS	December 2020 £ 3,422 9,777 104,309 867,600 985,108 56,300 28,418 84,718	December 2020 £ 268,354 1,884 176 270,414 16,763,328 900,390 17,934,132 16,847,759 1,086,373 17,934,132	December 2019 £ 273,830 2,093 234
			276,157 17,073,448 4,044 7,559 297,035 861,707
			1,170,345
			184,300 26,767
			211,067
			959,278
			18,308,883
			17,349,772 959,111
			18,308,883

Approved by the Trustees on 1[st] July 2021 and signed on their behalf

A.E. ELY	)
	)
	)	Trustees
P.J.ELY	)
	)

The notes on pages 16 to 25 form part of these financial statements

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THE SINO-BRITISH FELLOWSHIP TRUST

STATEMENT OF CASHFLOWS FOR THE PERIOD ENDED 31[ST] DECEMBER 2020

Cashflows from operating activities (Note 7) Cashflows from investing activities Investment income Proceeds from sale of fixed assets Purchase of fixed assets Proceeds from sale of investments Purchase of investments Net cash provided by investing activities Change in cash and cash equivalents in the period (Note 8) Cash and cash equivalents at 1 January 2020 Cash and cash equivalents at 31st December 2020	2020 2019 £ £ (511,305) ( 569,224) 440,809 533,239 - - - - 10,538,072 9,405,660 (10,652,193) (9,329,366)
	(184,617) 609,533
	(184,615) 40,309 1,166,301 1,125,992
	981,686 1,166,301

The notes on pages 16 to 25 form part of these financial statements

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THE SINO-BRITISH FELLOWSHIP TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31[ST] DECEMBER 2020

The Sino British Fellowship Trust is a charitable incorporated organisation which is registered with the Charity Commission in England and Wales Number 1174487

1. ACCOUNTING POLICIES

a) Basis of preparation and assessment of going concern

The financial statements have been prepared under the historical cost convention as modified by the inclusion of investments at market value. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.

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

The trustees consider that there are no material uncertainties about the CIO’s ability to continue as a going concern. The most significant areas of uncertainty that affect the carrying value of assets held by the CIO are the level of investment return and the performance of investment markets (see the investment policy and performance and risk management sections of the trustees’ annual report for more information).

b) Fund Accounting

The expendable endowment fund represents the charity’s investments. The fund includes cash held by the CIO’s brokers, who have a discretionary management agreement. Investment gains, losses and management fees are included in the expendable endowment fund.

c) Income recognition

Investment income and interest are recognised under the accruals concept. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the CIO; this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by our investment advisor of the dividend yield of the investment portfolio.

d) Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the CIO to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Resources expended are recognised under the accruals concept. Support costs represent the expenditure incurred in making and controlling grant awards. Governance costs represent the other expenditure associated with the constitutional and statutory requirements of the CIO.

e) Irrecoverable VAT

Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31[ST] DECEMBER 2020 (Continued)

1. ACCOUNTING POLICIES (Continued)

f) Depreciation

Tangible fixed assets above a value of £500 are capitalised and are depreciated over their estimated useful life at the following rates:-

Leasehold property 2% on reducing balance Furnishings 10% on reducing balance Equipment 25% on reducing balance

g) Fixed asset Investments

Investments are revalued to market value as at the balance sheet date and the surplus or deficit of this revaluation is shown as unrealised gains or losses on the face of the Statement of Financial Activities. Realised gains and losses represent the difference between the sales proceeds and the opening market value or their purchase value if acquired subsequent to the first day of the financial period. Unrealised gains and losses are calculated as the difference between the fair value at the period end and their carrying value.

The main form of financial risk faced by the CIO is that of volatility in investment markets.

h) Costs of raising funds

Costs of raising funds comprise those costs directly attributable to managing the investment portfolio and raising investment income.

i) Charitable activities

Expenditure on charitable activities includes grants made, together with governance costs and support costs apportioned pro rata to the grants awarded, as shown in note 5.

j) Grants

Grants to institutions are recognised in the Statement of Financial Activities in the period in which the commitment is made, subject to the fulfilment of the conditions which apply to each grant. Grants whose conditions have been fulfilled, but which have not yet been paid are recognised as a liability in the balance sheet. Grants which have been agreed in principle but whose conditions have not yet been fulfilled are not considered material.

Grants to individuals are recognised in the Statement of Financial Activities in the period in which the commitment is made.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31[ST] DECEMBER 2020 (Continued)

2(a). FIXED ASSET INVESTMENTS

Movement in fixed asset listed investments

Market value at 31 December 2019 Additions to investments at cost Disposals Net realised gains Net gain (loss) on revaluation Market value as at 31 December 2020 Euro adjustment Cash held by broker Management fee creditor Expendable Endowment Fund Investments at market value comprised: Fixed Income Funds Equity Mutual Funds Equities Other		December 2020 £ 17,073,446 10,652,193 (10,538,072) (466,953) 42,714	December 2019 £ 15,215,413 9,329,366 (9,405,660) 719,701 1,214,626 17,073,446 - 297,036 17,370,482 (20,710) 17,349,772 December 2019 £ 4,122,983 8,577,903 2,210,104 2,162,456
		16,763,328 43 104,309
		16,867,680 (19,921)
		16,847,759
		December 2020 £ 4,635,739 8,881,642 1,758,584 1,487,363 16,763,328
			17,073,446

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NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31[ST] DECEMBER 2020 (Continued)

2(b). TANGIBLE FIXED ASSETS

2(b). TANGIBLE FIXED ASSETS
Cost: At 31 December 2019 Additions during the period Depreciation: At 31 December 2019 Charge for the period Net book value: At 31 December 2020 Net book value At 31 December 2019	Leasehold Property £ 285,280 - 285,280 11,450 5,476 16,926 268,354 273,830	Furnishings £ 2,514 - 2,514 421 209 630 1,884 2,093	Computer Equipment £ 384 - 384 150 58 208 176 234	Total £ 288,178 -
				288,178
				12,021 5,743
				17,764
				270,414
				276,157

The leasehold property was bought in at net value from the former charity whose work the CIO took over. The original cost in 2005 was £388,138.

The leasehold property is situated at 23 Bede House, Manor Fields, London, SW15 3LT and is held on a 999 year lease from 1 April 1984. It includes garage number 144 which is held on a 99 year lease from 1 April 1969.

All assets are held for the use of charitable purposes.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31[ST] DECEMBER 2020 (Continued)

3. INVESTMENTS

December 2020 December 2019

	December 2020 December 2019
3 (a) Investment income is analysed as follows: Fixed Income Funds Equity Mutual Funds Equities Other	145,748 146,165 202,916 105,338 60,345 228,662 31,218 51,398
	440,227 531,563

3 (b) Investments where the market values are			December	December
considered to be material are:			2020	2019
Fixed Income Funds	Number Shares	of
HSBC Asset Management Common Fund for Income	0	209,482	-	270,860
HSBC Corporate Bond	1,712	-	426,212	-
HSBC GI Global High Yield Bond Shares	53,602	22,159	524,773	216,071
HSBC Global Asia B shares	29,591	21,649	301,887	215,686
HSBC Global Corporate Bonds	41,165	20,268	459,936	218,815
HSBC Global Emerging Mkts Bonds	75,158	49,423	708,966	475,402
HSBC Global Investment Funds – Global Asset–Backed Bond	45,971	76,423	446,148	751,543
HSBC Global Investment Funds Emerging Mkts Local Debt Z	169,016	169,016	1,371,102	1,201,168
HSBC Global Short Duration HYB Shares	30,873	30,873	298,572	300,486
Equity Mutual Funds
HSBC Global Economic Scale Index GEM Equity Z USD	0	25,015	-	214,586
HSBC Global FTSE All World Index Instl GBP Dis Nav	0	124,675	-	212,196
HSBC Index Tracker Fund – FTSE 250 Index	0	172,528	-	351,162
HSBC FTSE All Share Index Fund	921,696	772,079	2,913,482	2,781,802
HSBC Index Tracker Fund European Index	53,766	41,887	550,563	403,953
HSBC Index Tracker Investment Funds American index	211,324	142,412	1,575,633	946,041
HSBC Index Tracker Investment Funds Japan Index	213,191	185,149	295,269	236,805
HSBC Multi Fac Shares	85,008	35,461	785,859	299,977
HSBC US MltFA Institutional shares	209,942	69,780	885,958	264,116
Ishares Core MSCI EM IMI	187,424	174,398	751,373	621,292
IShares Core MSCI World UCITS ETF Accum USD	0	35,965	-	1,716,609
Ishares Core MSCI World UCITS ETF Hedged GBP	0	113,879	-	690,106
ishares V MSCI World GBP Hedged UCITS	8,954	-	595,799	-
Other
Charities Property Fund	657,987	657,987	815,575	838,671
Goldman Sachs Cross Asset Trend Portfolio	36,055	46,318	337,486	501,421
AQR Man Fut shares	1,712	2,891	175,291	306,817
HSBC GI MA SF shares	14,172	18,935	159,010	209,846

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NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31[ST] DECEMBER 2020 (Continued)

4. GOVERNANCE AND SUPPORT COSTS

Support costs

As stated in Note 1(d) support costs represent an apportionment of costs spent in making and controlling grant awards. The Trustees consider that the following costs are a reasonable allocation under this heading.

Secretarial, financial and clerical assistance Establishment expenses Stationery, telephone and postage General expenses Motor and incidental expenses AGM and student liaison costs Depreciation	December 2020 December 2019 £ 21,002 22,822 13,848 13,106 2,619 2,910 673 1,281 - 84 1,488 2,599 5,743 6,018
	45,373 48,820

Governance costs

As stated in Note 1(d) governance costs are the costs associated with constitutional and statutory requirements of the CIO. The following costs have been incurred under this heading:

Legal fees- previous years provision reversed Accountancy fees Audit fees Trustees travel costs Bank charges and interest	December 2020 - 9,398 5,040 258 18 14,714	December 2019 £ (4310) 8,905 2,760 803 24
		8,182

Total support and governance costs are apportioned pro rata to the grants awarded as shown in note 5.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31[ST] DECEMBER 2020 (Continued)

5. CHARITABLE ACTIVITIES

Grants to British academics for study visits to China – object (a) UK Institutions: British Academy British Library Needham Research Institute School of Oriental & African Studies St. Antony’s College Universities China Committee London Overseas Institutions: Hong Kong University Lingnan University Open University of Hong Kong Vocational Training Council (THEi) Individuals (0) Grants to Chinese academics for study visits to Great Britain – object (b) UK institutions: British Academy British Museum China Kadoorie Biobank Great Britain China Educational Trust Needham Research Institute Royal Society School of Oriental & African Studies St Cross College, University of Oxford Universities China Committee London Overseas Institutions: Chinese University of Hong Kong Hong Kong University Lingnan University Open University of Hong Kong Vocational Training Council China Scholarship Council Individuals (2)	Grants £ 0 0 4,000 0 11,000 31,000 0 8,600 0 0 0 54,600 0 0 0 46,500 10,000 71,000 0 15,000 0 0 (20,000) 7,400 12,500 12,500 9,000 13,960 177,860	Support and governance costs £ 0 0 948 0 2,608 7,349 0 2,039 0 0 0 12,944 0 0 0 11,024 2,371 16,832 0 3,556 0 0 (4,741) 1,754 2,963 2,963 2,134 3,309 42,165	Dec-20 Total £ 0 0 4,948 0 13,608 38,349 0 10,639 0 0 0 67,544 0 0 0 57,524 12,371 87,832 0 18,556 0 0 (24,741) 9,154 15,463 15,463 11,134 17,269 220,025	Dec-19 £ 49,739 0 4,352 13,086 0 33,687 6,187 0 2,826 1,356 2,826
				114,059
				29,391 13,565 15,600 53,413 11,474 42,357 3,871 0 1,356 0 22,609 15,327 0 8,517 14,130 14,696 67,895
				314,201

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NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31[ST] DECEMBER 2020 (Continued)

5. CHARITABLE ACTIVITIES (continued)

Promotion of Chinese language studies – object (c) UK Institutions Great Britain China Educational Trust Universities China Committee London Individuals (1) Joint UK /China academic programmes, and exchanges between Hong Kong and other parts of China – object (d) UK Institutions: University Birmingham/Peking University Chinese Institutions: Lingnan University Hong Kong University Open University of Hong Kong TOTAL GRANTS FOR YEAR	3,500 4,000 2,000 9,500 0 4,000 0 7,500 11,500 253,460	830 948 474 2,252 0 948 0 1,778 2,726 60,087	4,330 4,948 2,474 11,752 0 4,948 0 9,278 14,226 313,547	3,109 4,522 565
				8,196
				45,217 0 1,094 11,266
				57,577
				494,033

There were 3 (2019: 6) grants to individuals during the year.

The CIO is committed to spending £ 560,620 (2019 £567,050) in respect of grants within the following year and £1,007,865 (£1,015,600) in the two years of 2022 and 2023. Most grants are approved on a 3 year basis with an annual payment each year and many long established grants are renewed after the 3 year period has expired.

6. STAFF COSTS

Salaries and wages Employer pension contributions	December 2020 December 2019 £ £ 20,390 22,216 612 606
	21,002 22,822

There is 1 part time member of staff employed by the CIO.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31[ST] DECEMBER 2020 (Continued)

CASHFLOW STATEMENT

Note 7

Net income/ (expenditure) for the period to 31st December 2020 Adjustments for: Depreciation charges (Gains)/losses on investments Investment income (Increase)/decrease in debtors Increase/(decrease) in creditors Net cash provided/(used) operating activities Note 8 Analysis of cash and cash equivalents Cash held as part of investment portfolio Cash at bank and in hand Total cash and cash equivalents	December 2020 December 2019 (374,751) 1,894,695 5,743 6,016 424,239 (1,934,327) (440,809) (533239) 622 3,572 (126,349) (5,941)
	(511,305) (569,224)
	December 2020 12 months December 2019 9 months 114,086 304,594 867,600 861,707 981,686 1,166,301

9. TRUSTEES

No trustee received any remuneration for this period but travelling expenses for relevant charitable activities were paid as necessary.

10. RELATED PARTIES

During the period grants were paid to the Great Britain China Educational Trust. This institution has a trustee in common with the charity. Grants were also paid this year to the British Academy, the Open University of Hong Kong, Needham Research Institute, the Royal Society, St Cross College Oxford and St Antony’s College Oxford. There are connections with these institutions by virtue of Trustees holding honorary positions. Such grants are reviewed annually and have been approved unanimously at Trustees meetings.

During the period an amount of £ 0 (2019: £300) was paid to Mr C. Ely for maintaining the Charity’s database. His wife, Mrs A.E. Ely is the Chairman of the Trustees and his son, Mr P.J. Ely, is Deputy Chairman.

The furnishings in Bede House were donated to the former Charity in 2005 by the Elizabeth Frankland Moore Foundation and the foundation has a trustee in common with the Charity.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31[ST] DECEMBER 2020 (Continued)

11. CORONAVIRUS COVID 19 UPDATE

As mentioned in the Trustees report 2020 was dominated by the Covid-19 pandemic, which had a considerable impact on travel between China and the UK, and on academic research collaboration between the two countries. During the year the CIO kept in close touch with partner organisations and individual grant beneficiaries, aiming to maintain support as far as possible as plans were changed in the light of the pandemic. Travel difficulties resulted in several research initiatives being put on hold so there was a decrease in grants paid out this year; some increase is expected in 2021 although some projects may well be extended through to 2022.

The Income from the CIO all comes from interest and dividends from the investments and as a result of the pandemic it is expected there will be a further decrease in investment income during 2021. The situation is being monitored regularly by the Trustees to consider whether a transfer of funds from the expendable endowment will be required. When the decrease in expenditure caused by travel problems is taken into account, it seems likely that the existing free reserves of £815,958 will be sufficient to fund all regular and expected grants through to 2023 without such a transfer being required.

12. TAXATION

As a registered charity the trust is not subject to income taxes or Value added tax.

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