LLOYD'S BENEVOLENT FUND REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 LLOYD'S BENEVOLENT FUND CONTENTS OF THE FINANCIAL sTATEME￿￿s FOR THE YEAR ENDED 31 DECEMBER 2023 Page Report of the Trustees 14 Slat&nent of the Trustees. responsibiltties Report of the investment manager Report of the independent auditors Slalement of financial activ[t￿S 10 Balance sheet 11 Notes to the financial statements 12-15 LLOYD'S BENEVOLENT FUND REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 OECEMBER 2023 TRUSTEES AND OFFICIALS Rgglstered number 207231 Address Uoyd's of Lond¢ One Lime Street London EC3M 7HA 020 7327 6453 Trustges R Ohlson IChaimTrnl VAshford M Aylward J Cwper S Coryn S Deenally G Find A Grocffl A Gupta M Haryey (Appointed December 20231 McLean (Appointed De￿mber 2023) R sedgw￿-RoUgh Secretsry O Whelslone Investment Advlsor5 Cazenove Caprtal Management 1 London Wall Place London EC2Y SAU Audltors Simpson Wreford & Partners Suffolk House George Street Croydon CRO OYN Bankers Nth'onal Westminster Bank PLC PO Box 12258 1 Princes Street London EC2R 8PA LLOYD'S BENEVOLENT FUND REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 Icontlnuedl The Trustees of the Lloyd's Benevolent Fund fihe Fund") have pleasure in presenting their report together with the audited financial statements of the Fund for the year ended 31 December 2023. STRUCTURE. GOVERNANCE AND MANAGEMEKr The Fund is conslituled by the Ru￿$ of the Fund and is a registered charity suts'￿t to the provisions of the Charities Act 2011. Thefinancial stslemenls have been prepared in accordance with the accounting policies set out on page 12 and compty wrth the Fund's rules and applicable jaw. OBJECTIVES OF THE FUND FOR PU8UC BENEFIT The Trustees confirm that they have referred lo the guidan¢e contained in Ihe Chanty C¢Jmmission'$ general guidance on public benefft when rewewing the Fund's aims and objectives. The Fund has established ils grant making policy lo achieve ts objectNes for the public benefrt lo assist those in necessitous circumstances who work in or have worf(ed in the Lloyd's Community and their dependanls or others al the discretion of the Twstees but excluding any person who is an unde￿riting Member of Lloyd's. PROMOTION OF THE FUND Members of the communty requiring assistan￿ shoukl be put in touch with the Fund. Any applicant's iicumslances a￿ fully inveslpated before assistsn¢e is given. Help given to beneficiaries can be flexible being for Instan￿ annual gtanls or assista￿8 to cover specffic needs. The websrte provides full details for the promotion of the Fund Grants are paid with reterence to a fomiula whKh is reviewed at the diseretion of the Trustees. ADMINISTRATION The Fund is under the management of a commrttee of not *s than euhl Trustees who are, or have been Members of, or Subscribers to, or Substitutes al Lk*yd'$. Responsibilty for carrying out the objectives of L8F rests with the trustees. The Fund is supported by a Secretarial working under the direction of the Iruslee5, empbyed by the Corporation of Lloyd's and supported by the wider Gbbal Community Engagement team. Delegated authorty is gNen to the Global Communty Engagernenl team at Lloyd's, an outsourced finan￿ team (Simpson Wreford & Partners) and Lloyd's Treasury and Investment Management to ad￿se and assist as per LBF'S Delegated Authorty documentslion. The cost of office accommodation, computing, WmmUn￿t10n and accounting services are borne by the Corpoiation of Lloyd's. All other administratK)n costs are bome by the Fund. Cazenove have managed the investment portfolio at a fee of £55k for the year ended 31 December 2023 (period ended 31 De￿rntser 2022.. £69k). The fee is Cakulaled on the daily average matket value of the investments held by the Fund and charged to the statement of financial activities. CHARITY GOVERNANCE CODE The Board of Trustees oversees the charity's goveman¢e policies and procedure5 and regularty review procedures lo ensijre that 811 work undertaken is in line with the Charty Govemance Code. Whilst the Code is not a legal or regulatory requirement. f( sets oui the principles and recommended practice for good governan￿. The Board re￿nISe that good governance is fvndamenlal to Ihe charity's SU￿esS and strive to develop h￿h standards of govemance. LLOYD'S BENEVOLENT FUND REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 Icontlnued) ACKNOWLEDGEMENT The Trustee5 wish lo lecord their thanks lo n￿MberS of the Corporation of Lloyd's staff who assist wf(h the administrat￿n of the financial statement5 of the Fund and to the Corporation of Lloyd's which bears thes& costs. TRUSTEES The Trustees of the Fund are appointed annualty by the COU￿11 ol Lloyd's who 8150 nominate from the Trustees a Chairman and Deputy Chairnian. The Council of Lloyd'$ has the power lo remove al any time any of the Trustees. Where for any reason a Trustee ceases lo be a Trustee the Council of Lloyd's may appoint a new Trustee lo hokj office only until the next annual appointment i)f Trusteès. Potential trustees meet with the Chairman and the DepLtty Chairman of the Trust. Before agreeing lo become a Iruslee they VMII be infonned of the Trust's structure. objectives and actwities, and their responsibil(£ies as a trustee. Once appointed trustees will bè 5UPPOrted by the Board of Trustees in any area ol induetion or training needed. Regular updates are PfOVKled al the meetings with wards to govemance issues and changes lo charty regulations. PAY POLICY FOR SENIOR STAFF The trustees and the secretsry comprise the key management personnel of the charty in charge of operating the Fund on a day lo day basis. As per note 9 to the accounts, trustees were not ￿mUnerated during the period. The pay of the Secretsry is reviewed annually by the Iruslees lo ensure it Is 81 an appropriate level lo attract an indNidual of sufficient experience lo assist the charity in the pursuf( of rts objectNes. RVrfENUE The revenue oflhe Fund is generated maintyfrom investment incom$ and by way ofdonalions and legacies. ACHIEVEMENTS ANO PERFORMANCE Gr8nls paid lo benef￿laries decreased by £53k from £300k in the period ended 31 December 202210 £247k in the year ended 31 December 2023. There were 20 regular benefiuaries recemng grants as at 31 Decembef 2023 131 December 2022.. 21 benefKiaries}. Two beneficiaries ceased during the period. There was one new benef￿rary. In addition, 8 one-off grants were made in the year. ACKNOWLEDGEMENTS Donations of £30k {period ended 31 December 2022: £4kl were received in the year. Lkny(fs LLOYD'S BENEVOLEKf FUND REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 Icontinuedl RISK MANAGEMEKr The Trustees rEViUY the major risks which the Fund faces on a regular basis and believe that maintaining reseNes al current levels C￿nbIr￿d with an anllual revw of the controls over key finanry81 SyStem5, WTII provide $uffiGient re3ources in the event of athrse conditions. The Trustees have 8180 oxamined other operational and buwness risks faced by the Fund and cy)nfirm that thgy have establish8d management systems to mitigate the signffi¢ant risk8. FUTURE PLANS Th¥ Fund will conlinue to provide grant$ tothose who qualrfy atthe di￿￿*1)n of the Trustees. Th¢ Trusteè5 11 continue to review the calGulatKJn of these grants annuajty. WHlSTLEBLOV￿NG Those individuals who are ajministering Lkyd's Benevolent Fund are anpk)yees of Lloyd's and abje to rai89 issues relating to fraud and financial cyime in a¢¢Of<18n￿ wlh Lkjyds whith4lwng rKocedures. The Secretsry who ￿ not an employee of Lk)yd'8 rnmpty ￿th fis provisions. RESERVES POLICY Lloyd's Benevolent Fund relios on the income from its invesknent fuThJ to support its grdnl making, leaving the capital of the Fund Untouch￿ as far as possible to p￿v￿le a future income str98m. Untestricled fvnds a8 at 31 December 2023 tolalkd £14.97* {31 D￿emb￿r 2022." £13,825kl which are available at the discretion of the Trustw to meel the continuing requirements of the Fund. INVESTMENT OF THE FUND ￿n¥￿tment policy and managgment Cazenove, the Investment manager, rnarwd investsnents of the Fund in arxordance wilh the Trustees, long term IA)je(aives of ma¥imising income whilst prDtecbng the ￿prtaI value. Summary of investmènt Ghang•s and capltsl movompnt The net movement in the fvnd before net gain I loss on investmen18 for the y&ir was an increase of £32k Iperiod ended 31 Decernber 2022.. decrease 01£18k>- The netgain C￿ inveslments for the yearwas £1,122k (period end&J 31 December 2022.. k)55 of £298kl. Approved by the Board olTrustees.....Slh.4uLY.2Q24.... and on its kehaff by:_ R OhL80n Chaim)8n A GrO￿n Oepity Chaim8n LLOYD'S BENEVOLENT FUND STATEMENT OF THE TRUSTEES, RESPONSIBILMES FOR THE YEAR ENDED 31 DECEMBER 2023 The trustees are responsible for preparing the Trustees, Annual Report and the financial statements in accordan￿ with appI￿able law and Uni(efl Kingdom Aecounting Slandords (United Kingdom Generally Acceplgd Acwunling Practice). The law applicable to charrties in England & Wales requires the trustees to prepare financial statements for each financial year which gNe a true and fair view of the stale of affairs of the charity and of the incoming resources and application of resources of the charity forthat perh￿. In preparing these Iinancial slalemenls, the trustees are required to.. select suitable accounting policies and then appty them consislenlly., observe the methods and princip￿ in the CharIt￿5 SORP 2015 {FRS 102}- make judgements and eslimales that are reasonabk and prudent-, stale whether applicable accounting standards have been folbwed, subject to any material departures disclosed and explained in the financial slalemenls", prepare the financial statements on a going concem basis unless it 15 inappropriate lo presume that the charty will ￿ntInUe in operat￿n. The Iruslees are responsible for keeping proper accounting records that disclose wrth reasonable accuracy al any lime the finarKial position of the chartty and enable them lo ensure that the financial slalements comply wf(h the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hen for taking reasonable steps for the prevention and detection of fraud and other irregular(ties. LLOYD'S BENEVOLENT FUND REPORT OF THE INVESTMENT MANAGER TO THE TRUSTEES OF LLOYD'S 8ENEVOLEKf FUND FOR THE YEAR ENDED 31 DECEMBER 2023 Overvlew Investment Objectlvo The portfolio 15 designed to maximise income whilst prcrtecting the real value of capital over the medium lo long lemi. The portfolio is managed on an athisory basis wtth Cazenove Caprtal Ltd providing investment advice on an ad hoc basis, custody, ￿porting and administration services. The portfolio uses a broad range of investments and may albcate a hKJh proportion of rts assets lo equty or equty-like investments in pursuing it5 airns. Whilst the majority of the portfolio is invested in readily Irad8ble assets. illiquid assets are considered part of the investable unNerse and the portfol￿ may have some exposure. Cash, frAed income and other defensive assets will normalty a￿￿nI for onty a small part of the portfolio. Portfollo Summary Descrlptlon Equities UK Abrdn UK All Shale Tracker Fund Global Vanguard FTSE All-wikl ETF -GBP Cash Market Value £ Portfolio Weight% 98.9% 50.9% 14,626,887 7,520.131 7.520,131 7,106.757 7,1[￿,757 157.414 123.726 33,687 14,784.301 48.1% 48.1° 1.1% JP Morgan Liquidity Fund sterling cash Totsl Source, Cazenove Capital as 8t 31. 12.23 0.8Q 0.3% 100.0% Economic and Market outlook Global equities IMSCI Index} have risen by 160A since late October 2023. This was driven by a signTficanl change in market expectations around interest rates, as recent dats found that inflation is falling faster than expected. The Federal Reserve (Fed) bcrf)sled markets further by sNJnalling large rate cuts in ils mid- December policy projections for 2024. with other central banks expècted to follow suit. If the cuts come about because growth is falling faster Ihan inflatKJn. then that is problematic. That Yrfould create headwinds for equities and risky assets. However, for the time being there are good reasons lo celebrate as the cost of eaprtal has fallen, not least because of the impact on the c05t-of-living crisis. In thè first w*k of January, carbon prices r￿hed the lowest point in 14 nv)nths. This decline was driven by market disappointment wfih Ihe outcome of the COP28 summtt, Whe￿ governments made climate ommilments. The downward ITetxl began weeks eadier when a draft agr￿ment was released, omrtting references lo the phasing out of fossil fuels. However. there were posrtives. Nearty every ￿untry woddwide agreed lo move away from fossil fuels during thi8 d￿{SiVe decade. The agreement also acknowledged that limiting global warniing to 1.5"C would require a nearty 500/0 reduction in emissions by 2030. One big Iherne of 2024 will be elections, with the US. UK and India set to go to the polls this year. In the UK we have seen more polrtical stabilty, wf(h onty one Prime Minister overthe last 12 months, despite wKIe- ranging economic and pO1￿cal challenges. The UK election probabty won't aher the Irajeclory of global financial markets, but it could have an impact on sterling. Meanwhile. investors will be very f¢xused on what the outcome ofthe US election will mean for America's debt trajectory. The resur( will also have a significant impact on geopolit￿8. from America's relalh?n$ with China to war in Ukraine and Israel. Cazenove Capital. 31 Decernber 2023 LLOYD'S BENEVOLENT FUND REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF LLOYD'S BENEVOLENT FUND FOR THE YEAR ENDED 31 DECEMBER 2023 Oplnlon We have audited the financial statements of Lloyd's Benevolent Fund Ilhe 'charty'l for the year ended 31 December 2023 which comprise the Ststement of Financial Activities, the Balan￿ Sheet and notes lo the financial statements. including a summary of significant a￿untIng pdicies. The financial reporting framework that has been applied in their preparation is applicable law and Unf(ed Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standalll applicable in the UK and Republ￿ of Ir8l&nd (Unrted Kingdom Generally Accepted Ac￿untIng Pract￿£). In our opinion the financial stalemenls-. gNe a true and fair view of the slate of the charity's affairs as at 31 December 2023 and of ils incoming sources and application of resources. for the period then ended,. have been propedy prepared in accordance with Vni(ed Kingd¢￿ Generally Accepted Aceounling Practice.. and have been prepared in accordance wlth the I￿Ulren￿rrtS of the Charrties Act 2011. Basls for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS {UK)l and applicable law. Our responsibilits'es ijnder those standards are further described in the Audilorfs responsibilities for Ihg audit of th8 financial statements Secti(￿ of our report. We are independent of the ¢harrty in accordance with the ethical requirements that are relevant to our audri of the financial statements in the UK, including the FRC'S Ethical Stsndard, and we have futfilled our other eth￿al responsibiif(ies in accordance wrth these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate lo provide a basis for our opinwt. Conclusions relating to golng concern In aud((ing the financial statements. we have concluded that the trustee's use of the going concern basi8 of accounting in the preparat￿n of the financial statements is appropri*. Based on the work we have perfomied, we have not Klentrfied any material Uncertainl￿S relating to events or conditions that, individu81ty or collectivety, may cast significant doubl on the Charity's ability lo continue as a goin9 concem for a period of al least 12 months from when the financial ststemenls are auth0ri5ed for issue. Our responsibilf(ies and the responsibilities of the trustees with respect to going concem are described in the relevant sections of this report. Other infomiation The other infomialvjn comprises the information included in the annual ￿pOrt. including the trustees. report, other than the financial ststemenls and our aud((ols report Ihereon. The Iruslees a￿ responsible for the other infomalion contained within the annual report. Ouropinion on the financial slalemenls does not cover the other infomialion and, except lo the extent othe￿1$e explicrtty Staled in our report. we do not express any form of assurance conclusion thereon. Our responsibility is to read the other inf0mat￿n and, in doing so, consKler whether the other information is rnaterially inconsistent with the financrdl 51atements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misslaled. If we Klenlfy such material Ir￿nSiStenCles or apparent material misstalemenls, we are required lo detemiine whether this gNes rise to a material misstatement in the financial statements themselves. If. based on the work we have performed. we conclude that there is material misstslemenl of this other infomialM)n. we are required lo report that fact. We have nothing lo report in this regard. LLOYD'S BENEVOLENT FUND REPORT OF THE INDEPENDENT AUDrroRS TO THE TRUSTEES OF LLOYD'S BENEVOLENT FUND FOR THE YEAR ENDED 31 DECEMBER 2023 Icontlnuedl Matters on whSch we are requlred to report by exception In the light of the knowledge and undetstsnding ofthe chanty and rts environment obtained in the Coufse of the audit, we have not identified material misstatements in the trustees. report. We have nothing lo report in respect of the folkm.ng matters in reL4lion to which the Charities (Accounts and Reports) Regulations 2008 require us lo report to you rf, in our opinion.. the infomialion given in the financk?I statements is inconsislenl in any material respect with the Iruslees, report., or sufficient accounting records have not been kept., or the financial statements a￿ not In agreement wrth the aceounting records.. or we have not recewed all the infomiation and 8xplanations we require for our audrt. Responslbllltles of trustees As explained more fulty in the trustees, responsibilities statement, the trustees are responsible for the preparation of financial slalements which gNe a true and fair view, and for such internal control as the trustees delerynine i8 necessary to enable the preparatson offinancial statements Ihat are free from material misslatemenl, whether due lo fraud ￿ error. In preparing the financi81 statements. the trustees are responsib￿ for assessing the charity's abilty to continue as a going concern, disclosing, as appl￿ble. matters related to going concem and using the going concern basis of accounting unless the Iruslees erther intend to liqU￿ate the charty or to cease operations, or have no realistic allematwe but lo do so. Auditoes rgsponslbllitles for the audit of the financial staternents We have been appointed as a￿litOr under sectK•n 144 of the Charities Act 2011 and ieport in accordance wf(h ￿gUlationS made under section 154 of that Act. Our objectNes are to obtain reasonable assLFrance about whelher the financial ststements as a whole are free from material misslalement. whether due to fraud or error. and to issue an audttor's report that includes our opinh)n. Reasonable assurance is a high ￿Ve1 of assurance bul is not 8 guarantee that an audit condu¢te