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2021-06-30-accounts

Republic of Republic of Ireland
published
in October 2019.
Ireland
published
in October 2019.
Ireland
published
in October 2019.
Reference and Administrative
details
Name ofCharity: The Penchant
Foundation
Charity
No. 1188402
Trustees: Sir Charles Chadwyck-Healey (Appointed
6 March 2020)
Catherine
Davies
(Appointed 6 March 2020)
Lady Angela
Mary
Chadwyck-Healey (Appointed 6 March 2020)
Faith Miller (Appointed 6 March 2020)
Edward Alexander Chadwyck-Healey (Appointed 6 March 2020)
Principal Office Address: 5 Madingley
Road
Cambridge
CB3OEE
Bankers: Natwest
Bank
21 Petty Cury
Cambridge
CB23NE
Investment Managers: Brown Advisory
6-10Bruton Street
London
W1J6PX
Accountants: Mercer & Hole Trustees Ltd
72 London Road
StAlbans,
Hertfordshire
AL1 1NS
Independent Examiner: Steve Robinson
Mercer & Hole
72 London Road
St Albans,
Hertfordshire
AL1 1NS
Structure Governance and Mana
ament
Settlor: Sir Charles Chadwyck-Healey
Governing Document: The principal
governing
document is a trust deed dated 6 March 2020. The
trust
is
a
private
charitable trust controlled by its trustees.
Power
of
appointment
of additional
trustees lies with the existing trustees, who are the
original trustees.
No additional
trustees have been recruited since the inception
of the chadity and it is not considered that any additional trustees are required
at
present.
The
trustees are permitted
to
appoint income or
capital
to
beneficiaries
in the
course ofmeeting the fund's purpose.

Governing Document (continued): Document (continued):
Power ofappointment
ofadditional
trustees
lies
with the trustees.
The trustees
are permitted
to appoint
income
or capital
to
beneficiaries
in the course
of
meeting the fund's purpose.
Investment Objectives: The Foundation
seeks to produce the best financial
return
within
an acceptable
level of risk.
The investment
objective is to generate a return
of inflation
plus 4% per annum
over the long term, after expenses. This should allow the Foundation
to at least
maintain
the real value of the assets,
whilst
funding
annual
expenditure
in the
region of4%ofthe average
value ofthe assets
over the prior three years.
The Foundation
adopts a total return
approach
to investment,
generating
the
investment
return
from income and capital gains
or losses. It is expected that if
in any one year the total
return
is insufficient
to meet the budgeted
grant-
making
expenditure,
in the long term the real value of the Foundation
will still
be maintained
in accordance
with the investment
objective above.
Ob'ectives and activities
Objectives ofthecharity: The
charitable
objectives
of the
Charity
are
to advance
such
charitable
purposes
(according to the law of England
and Wales) as the Charity Trustees
from time to time see fit.
The Charity intends to carry out its purpose
by making
grants.
The Charity
is governed
by the charity trustees
of the Charity
("the Trustees" )
who have a duty, acting at all times
in the best interests ofthe Charity,
to apply
the Charity's assets to advance the objects and have ultimate
responsibility
for
all grant-making
decisions.
The number of projects and activities
which can
be supported
is limited
by the
amount offunds available
for distribution.
The pdiorities
for funding
over the next year
will be the making
of grants
to
organisations
that submit
an application
to the Charity
(such applications
may
be by invitation).
Public benefit: The Trustees
confirm that they have referred to
the guidance
contained
in the
Charity
Commission's
general
guidance
on public
benefit
when
reviewing
the
trust's aims and objectives and in setting the grant-making
policy for the year.
Risk:
Attitude to risk: The Foundation
relies on the investment
return to fund grant-making.
However,
grants
are generally
one-off awards
and the number
and value of these may
vary depending
on circumstances.
The key risk
to the long-term
sustainability
ofthe Foundation
is inflation,
and the assets should be invested to mitigate this
risk over the long term. The trustees
understand
that this is likely to mean that
investment
will be concentrated
in real assets
and that the capital
value
will
fluctuate.

The trustees are able to tolerate volatility ofthe capital value ofthe Foundation,
as
long
as the
Foundation
is able
to meet
its
short-term
grant
making
commitments
through
either income or liquid capital assets.
Assets: The Foundation's
assets can be invested
widely
and should
be diversified
by
asset class,
by manager
and
by security.
Asset classes could
include
cash,
bonds,
equities,
property,
hedge
funds,
structured
products,
private
equity,
commodities,
property
and
any other asset that
is deemed
suitable
for the
Foundation.
Currency: The base currency ofthe investment
portfolio is Sterling.
Investment
may be made
in non-Sterling
assets, but should
not exceed 50%of
the total investment
portfolio value.
Hedging
is permitted.
Credit: The Foundation's
cash balances
should
be deposited
with
institutions
with a
minimum
rating ofA-or invested
in a diversified
money market fund.
Bond exposure
should be predominantly
focused on investment
grade issuers.
Liquidity Requirements: The Foundation
aims to distribute
grants
of between
6150k and 6200k per
annum.
This can be funded
from both income and capital.
The Trustees
wish to keep at least 70% of the assets
in investments
that can
be realised
within three months.
To allow for volatility
of capital values,
the trustees
wish to maintain
at least 3
years worth ofbudgeted
grant-making
in cash or lower risk liquid investments.
A minimum
of 2% of the total assets
should
be kept
in cash or near cash
investments
at all times.
Time Horizon: The Foundation
is expected
to exist
in perpetuity
and investments
should
be
managed
to meet the investment
objective and ensure this sustainability.
The Foundation
can adopt a long term investment
time horizon.
Management, Reporting The Investment
Manager
is required
to produce a valuation
and performance
and Monitoring: report quarterly.
The Foundation
has nominated
a list ofauthorised
signatories,
two ofwhich are required
to sign instructions
to the Investment
Manager.
The Trustees
have
responsibility
for agreeing
strategy
and
monitoring
the
investment
assets. The Trustees
meet at least annually
to review the porffolio,
including
an analysis
of return,
risk and asset allocation.
Performance
will be
monitored
against
agreed
market
benchmarks,
and
against
the
investment
objective of inflation
plus 4%over the long term.
Review of activities: Grants
totalling
6269,196 were
made
in the period.
The breakdown
of the
grants
is shown
in note 8 of the accounts.
The trustees
monitor
their level of
grant-making
and are prepared
to utilise capital for this purpose where needed.

Plans for future periods: future periods: The trustees
short-term
and
long-term
objectives
are to continue
to make
grants
in accordance
with their grant making
policy.
The trustees
aim
to utilise
the unrestricted
and endowment
funds to achieve this objective.
The trustees
plans
are to release
funds
from the endowment
fund
and the
Charity intends to carry out its purposes
by making
grants.
Approval and review: This
Investment
Policy
Statement
was
prepared
by
the
Trustees
of the
Penchant
Foundation
to
provide
a framework
for the
management
of its
investment
assets.
It will be reviewed
on an annual
basis to ensure
continuing
appropriateness.
Res ective res onsibilitiesof trustees.
Accounting Guidelines: The trustees
are
responsible
for
preparing
the
Trustees'
Report
and
the
financial
statements
in accordance
with
applicable
law and
United
Kingdom
Accounting
Standards
(United
Kingdom
Generally
Accepted
Accounting
Practice).
Respective responsibilities oftrustees (continued)
The law applicable
to charities
in England
& 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 incoming
resources
and
application
of resources
of the
charity
for that
period.
In
preparing
these
financial
statements,
the trustees
are required to:
a)
select suitable
accounting
policies and then apply them consistently;
b)
observe
the
methods
and
principles
in
the
Charities
SORP
2019
(FR S102) I
c)
make judgements
and estimates
that are reasonable
and prudent;
d)
state whether
applicable
accounting
standards
have been followed,
subject
to
any
material
departures
disclosed
and
explained
in
the
financial
statements;
e)
prepare
the financial
statements
on the going
concern
basis unless
it is
inappropriate
to presume
that the charity
will continue
in operation.

2021 2021
Endowment Total
Funds
Note F
Income and endowments:
Investment
income
3 28,699 28,699
Other income 5 1,050,449 1,050,449
Donations
and legacies
4,201,796 4,201,796
Total income 5,280,944 5,280,944
Expenditure
on:
Costs of raising funds 16,538 16,538
Charitable
activities
4 281,012 281,012
Total expenditure 297,550 297,550
Net income/(expenditure) before
net gains/(losses) on investments 4,983,394 4,983,394
Net gains/(losses) on currency exchange 1,794 1,794
Net gains/(losses) on investments 882,760 882,760
Net income/(expenditure) 5,867,948 5,867,948
Transfer between funds
Net movement
in
funds 5,867,948 5,867,948
Reconciliation
of
funds
Total funds brought forward
Total funds carried forward 5,867,948 5,867,948

2021
Endowment Total
Funds
Note f
Fixed assets
Investments at market value 2 5,349,228 5,349,228
Current
assets
Investment managers' bank accounts 187,487 187,487
NatWest bank accounts 339,184 339,184
Gift Aid repayment
due
449 449
527,120 527,120
Liabilities
Creditors: amounts
falling due within one year
Accountants' charges 7,200 7,200
Independent examiners' remuneration 1,200 1,200
8,400 8,400
Net current assets/(liabilities) 518,720 518,720
Net assets 5,867,948 5,867,948
Allocation ofthe charity net assets:
The net assets are held for the various funds as follows:-
Expendable endowment 9 5,867,948 5,867,948
Total charity funds 5,867,948 5,867,948

Total
Funds
2021
Note F
Net cash used in operating activities 7 ( 287,806)
Cash flows from investing activities:
Dividends
and interest from investments
28,699
Proceeds from sale of investments 534,595
Purchase of investments ( 5,001,063)
Other income 1,050,449
Net cash provided
by investing
activities 3,387,320
Cash flows from financing activities:
Donations
and legacies
4,201,796
Net cash provided
by financing
activities 4,201,798
Change
in cash and cash
equivalents in the reporting period 626,871
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward 626,671
Representing:
Investment
managers'
accounts
187,487
Charity's
bank account
339,184
626,671

ed asset investm ents 2021
F
Additions 5,001,063
Disposals
Net investment
gains I(losses)
( 534,595)
882,760
Market value at 30June 2021 5,349,228
Historical cost at 30June 2021 4,541,194
estment
income
Investment
income ofF28,699
was received during the year.
aritable
activities
2021
F
Charitable
activities
281,012
The breakdown ofcharitable activities is as follow:
Grants - note 8 269,196
Donations
-Chadwyck-Healey
Liberation Collection 1944-1946 - note 8 1,196

Governance costs
Accountants' charges 8,820
Independent Examination charges 1,200
10,020
5. Other income
2021 Endowment Total
Funds Funds
Gift aid 1,050,449 1,050,449
1,050,449 1,050,449

2021
Net movement
in funds
5,867,948
Deduct interest income shown in investing activities ( 1,079,148)
Deduct donation
receipts shown
in financing activities ( 4,201,796)
(Deduct gains)/ add back losses on investments ( 882,760)
Decrease (increase)
in debtors
Increase (decrease)
in creditors
( 449)
8,400
Net cash used in operating activities 287,805
ants made
2021
Resurgo Trust 1,000
Smart Works 1,000
New Orford Town Trust 250,023
Clock Tower Sanctuary 3,000
VICS in the Community 1,500
New Orford Town Trust (legal advice) 2,673
Arthur Rank Hospice Charity 5,000
Cambridge
Citizens Advice (CAB)
5,000
269,196
The grants above are categorised as below: 2021f
Social & Community 264,196
Medical 5,000
269,196

Analysis ofcharitable
funds
2021 Endowment Total
Analysis
offund movements
Funds
6
Fundsf
Balance b/fwd
Income 5,280,944 5,280,944
Expenditure ( 297,550) ( 297,550)
Foreign exchange gains/(losses) 1,794 1,794
Gains/(losses) 882,760 882,760
Fund c/fwd 5,867,948 5,867,948
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