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2023-12-31-accounts

LLOYD'S OF LONDON FOUNDATION

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

LLOYD'S OF LONDON FOUNDATION

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

Page
Report of the Trustees 1-9
Statement of the Trustees' responsibilities 10
Report of the investment manager 11
Report of the independent auditors 12-14
Statement of financial activities 15
Balance sheet 16
Cash flow statement 17
Notes to the financial statements 18-24

LLOYD'S OF LONDON FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023

TRUSTEES AND OFFICIALS

Registered number 207232
Address Lloyd’s of London
One Lime Street
London
EC3M 7HA
020 7327 1000
Trustees Ms Vicky Carter (Chair) (retired December 2023)
Mr Bruce Carnegie-Brown (Chair) (Appointed January 2024)
Mr Andrew Brooks (resigned March 2023)
Ms Amy Bumstead (resigned March 2023)
Ms Elizabeth Cabrera
Mr Oliver Ferrari
Mr Mark Fidler
Mr Nathan Hambrook-Skinner (Appointed January 2024)
Mr Raza Hassan
Ms Holly Hedgeland (Appointed January 2024)
Mr David Ibeson (retired December 2023)
Ms Caroline Klein
Ms Claire O’Meara
Mr Ola Jacob Raji
Mr Patrick Tiernan (Appointed March 2023)
Ms Hannah-Polly Williams
Secretary Mrs Sarah Iddison-Chamberlain
Investment Advisors Cazenove Capital Management
12 Moorgate
London
EC2R 6DA
Auditors Simpson Wreford & Partners
Suffolk House
George Street
Croydon
CR0 0YN
Bankers National Westminster Bank PLC
PO Box 12258
1 Princes Street
London
EC2R 8PA

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LLOYD'S OF LONDON FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 (continued)

The trustees of Lloyd's Charities Trust ("the Trust") have pleasure in presenting their report together with the audited financial statements of the Trust for the year ended 31 December 2023.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Structure

Lloyd’s of London Foundation (LoLF) is a registered charity established for the public benefit under a deed of trust dated 17 June 1953 and is a registered charity subject to the provisions of the Charities Act 2011. It confines its grants to those purposes accepted in law as charitable. The financial statements have been prepared in accordance with the accounting policies set out on pages 18-19 and comply with the Foundation’s deed and applicable law.

The Lloyd’s of London Foundation seeks to provide a vehicle for charitable activity in Lloyd’s market and Corporation, that delivers long-term, meaningful social impact that aligns to our core mission, engages stakeholders and leverages Lloyd’s unique convening powers.

The Foundation is also guided by terms of reference which cover issues such as number of trustees, frequency of meetings and quorate meetings.

Responsibility for carrying out the objectives of the Foundation rests with the trustees. The Foundation is supported by a Secretariat working under the direction of the trustees, employed by the Corporation of Lloyd’s and supported by the wider Global Community Engagement team. Delegated authority is given to the Global Community Engagement team at Lloyd’s, an outsourced finance team (Simpson Wreford & Partners) and Lloyd’s Treasury and Investment Management to advise and assist, as per the LoLF Delegated Authority documentation. With the exception of audit fees, bank charges, and investment management fees which are borne directly by the Foundation, all administration costs are borne in full by the Corporation of Lloyd’s.

The disbursement of the Foundation’s fund is at the sole discretion of the trustees unless funds have been given for a specific purpose.

Trustees

There were ten trustees as at 31 December 2023.

The normal maximum term of office is nine years and trustees are asked to serve a minimum of three years.

All trustees give their time freely and no trustee remuneration was paid in the year from funds of LoLF. Any reasonable travel expenses were covered for trustees, as a cost borne by the Corporation of Lloyd’s.

Governance

New trustees are appointed by the Board of Trustees, following approval from the Council of Lloyd’s.

As a charity established to provide charitable grants on behalf of the Lloyd’s market, trustees are drawn from across the Lloyd’s market with the aim of representing different market constituencies – underwriters, brokers and members of Lloyd’s governing body. Trustees external to the Lloyd’s market are also on the Board of Trustees and bring specific skills and expertise, and diversity of experience.

The Foundation also aims to be a diverse Board of Trustees, representing different voices as outlined in its Recruitment Policy, which is reviewed every three years. The formal recruitment process allows potential trustees to apply to become a trustee, and then the Foundation’s trustee recruitment subcommittee will formally interview potential candidates and decide who to put forward to the board. The board will collectively agree what skills and knowledge gaps exist on the board and recruit candidates based on their experience and expertise, knowledge and interest in the charitable sector.

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LLOYD'S OF LONDON FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 (continued)

Potential trustees are invited to meet with the trustee recruitment subcommittee (including the Chair and the Global Community Engagement team) before agreeing to become a trustee. They will be informed of the Foundation’s structure, objectives and activities, and their responsibilities as a trustee.

A full induction will be undertaken for all new trustees that follows good practice and guidance from the Charity Commission. All new trustees are required to sign the LoLF’s Code of Conduct as part of their onboarding process.

Once appointed, trustees will be supported by the Secretary and the Board of Trustees in any area of induction or training needed. Regular updates are provided at the meetings with regards to governance issues and changes to charity regulations.

All trustees complete a Register of Interests and a skills audit on an annual basis, as well as alerting the Chair and Global Community Engagement team when there is a new potential conflict of interest.

Trustees meet at least three times a year as this is sufficient for the size and nature of the organisation. As stated in the original Trust Deed, any questions submitted at a meeting shall be decided by a majority vote of the trustees present at a meeting, but in the event of a tie the Chair shall have a second or casting vote.

At the trustee meetings, the trustees agree the broad strategy and areas of activity for the Foundation, including consideration of governance, grant giving, charity partnerships, investment, reserve and risk management policies and performance. The day to day administration of grants and processing and handling of applications prior to consideration by the relevant subcommittee is delegated to the Global Community Engagement team at Lloyd’s. The charity partner selection committee of trustees meet as required to review all applications for partnerships and shortlist applications and recommendations to take forward to the board.

Annual grant giving is awarded through the Lloyd’s Market Charity Awards through a subcommittee who meet annually to review all applications and shortlist applications from the Lloyd’s market and recommendations to take forward to trustee meetings.

LoLF has a number of subcommittees of which trustees and the Global Community Engagement team are a part of, and they are chaired by a trustee. These include:

Lead trustees are also allocated to lead on: the risk register and the Foundation’s investments which involves sitting on the Charities Investment Advisory Committee.

Minutes are taken at each meeting, circulated to trustees along with action points and responsibilities, and kept as a record.

The accounting and finance function is outsourced to Simpson Wreford & Partners (SWP). SWP provide the following services:

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LLOYD'S OF LONDON FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 (continued)

Charity Governance Code

The Board of Trustees oversees the charity’s governance policies and procedures. All work undertaken is in line with the Charity Governance Code which although not a legal or regulatory requirement, it sets the principles and recommended practice for good governance. The charity recognises that good governance is fundamental to its success and strives to develop high standards of governance.

Risk Management

The trustees have considered the major risks to which the charity is exposed and reviewed those risks and established systems and procedures to manage those risks. LoLF’s risk management approach is outlined in their risk management policy, which is reviewed every three years.

The risk register outlines the major risks to which the charity is exposed. The risk register is reviewed annually.

The trustees’ approach to risk management concerning their investments is outlined in the Financial Review on page 7.

As Lloyd's employees, all individuals administering LoLF are able to raise issues relating to fraud and financial crime in accordance with Lloyd's Speaking Up procedures.

LoLF has a conflicts of interests policy and procedure which all trustees and new trustees are familiar with and follow. This is reviewed every three years.

LoLF also has a complaints policy which outlines how complaints should be made and escalated within the Foundation and its delegation of authority to the Corporation of Lloyd’s. This is reviewed every three years.

Objectives and Activities

The objective of the Foundation is to make grants to charitable organisations on behalf of the Society of Lloyd’s in line with the strategy of the Foundation. The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Foundation’s aims and objectives and in planning future activities.

It focuses on three key areas established for the public benefit to achieve the Foundation’s strategic priorities:

1. General Fund

The Lloyd’s of London Foundation partners with charities to build more resilient, more sustainable and more inclusive communities, empowering these communities through tangible action and long-term partnerships.

The Foundation partners with people and charities to build resilient communities. Society needs resilience more than ever: The ability to bounce back from unexpected events and prepare for a more sustainable, inclusive future. The LoLF works to empower and embolden communities through action and long-term partnerships. It supports charitable causes focusing on the following themes:

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LLOYD'S OF LONDON FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 (continued)

2. Lloyd's Community Programme

Established in 1989, Lloyd’s Community Programme (LCP) is a sub-fund of the Foundation which helps individuals achieve their full potential through support from the Lloyd’s market. This is achieved through projects that tackle disadvantage and foster opportunity, including in the Lloyd’s market. Through longstanding relationships with local delivery partners, LCP has established a wide range of volunteering opportunities for employees across the Lloyd’s market.

3. Lloyd’s Education Fund

The Lloyd’s Education Fund provides university bursaries to young people from schools in London who have achieved their A-level results and have a firm offer from a university outside of London. This fund was previously known as the Cuthbert Heath Centenary Fund.

ACHIEVEMENTS AND PERFORMANCE

1. General Fund

During 2023, Lloyd’s of London Foundation made donations amounting to £513k from its General Fund to support the programmes described below. This has resulted in support to 26 organisations, helping many more beneficiaries globally.

A summary of the expenditure is shown in this table, with further narrative below.

Source Description Amount
Lloyd’s Patriotic Fund Funding from Lloyd’s Corporation £100,000
Lloyd’s Market Charity Awards Nine donations between £5k up to £20k £120,000
Lloyd’s of London Foundation Flagship Eight charities were given £5,000 each £40,000
Charity Partners Doorstep Library £61,766
Mental Health Foundation £86,766
Thames Reach £86,766
Lloyd’s of London Foundation Other donations £17,376
£512,674

Lloyd’s Patriotic Fund

As part of the creation of the LoLF, funding for the Lloyd’s Patriotic Fund (LPF) has been rerouted from the Corporation to now pass through the LoLF. A donation of £100,000 is therefore made from the LoLF to the LPF.

The Lloyd’s Patriotic Fund continues to work closely with charities which support veterans and their families transitioning to civilian life through employability and mental health programmes. In 2023 the LPF entered into three-year partnerships with Forces Employment Charity and Scotty’s Little Soldiers who will receive £100,000 and £85,000 per annum respectively (payments are made in 2024). The LPF also made small grants to five charities, The Contact Group (hosted by Help for Heroes), Care After Combat, Give Us Time, Fighting with Pride and The Ripple Pond with grants totalling £76,905 per annum.

Lloyd’s Market Charity Awards

To meet our aim to support the individual and collective charitable efforts of colleagues in the Lloyd’s market, Lloyd’s of London Foundation runs the annual Market Charity Awards, that makes donations to their chosen causes. This is a long-standing scheme that recognises and celebrates charities that Lloyd’s market employees are actively involved with; through volunteering or fundraising activities, as well as supporting employees through difficult times.

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LLOYD'S OF LONDON FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 (continued)

In 2023, nine donations between £5k up to £20k were awarded. Over 90 applications were received from individuals working in 33 businesses across the Lloyd’s market. Donations totalled £120k to the nine charities.

Lloyd’s of London Foundation Flagship Charity Partners

In 2022 applications opened for the Lloyd’s of London Foundation Flagship Charity Partners for the partnerships which began in February 2023. Three charities were selected; Doorstep Library, Mental Health Foundation and Thames Reach. A further eight charities who submitted applications were given £5,000 each in recognition of their application.

Doorstep Library

Doorstep Library works among London’s most disadvantaged communities using the power of reading as a tool to break the cycle of poverty. The Foundation’s support helped empower disadvantaged children to access literary resources over the course of the partnership. Doorstep Library received a grant of £25,000 and a further £36,766 in fundraising income.

Mental Health Foundation

The Mental Health Foundation (MHF) is the only UK charity focused on improving lives by taking action to prevent mental health problems, reaching those most in need. Funding from the Foundation supported U OK?, a programme of mental health workshops held in schools, colleges and universities, in collaboration with students. Mental Health Foundation received a grant of £50,000 and a further £36,766 in fundraising income.

Thames Reach

Thames Reach works to end street homelessness by helping homeless people and others in need to find decent homes, build supportive relationships and lead fulfilling lives. Support from the Lloyd’s of London Foundation made it possible for around 1,700 people to access an employment and skills programme. Thames Reach received a grant of £50,000 and a further £36,766 in fundraising income.

Additional fundraising for the charities was via market wide bike ride events, as well as fundraising activities over the Christmas period.

Plans for the future

2. Lloyd's Community Programme

Delivery partners’ applications for funding were reviewed at the LoLF trustee meeting. All applications were successful, and LCP continues to work with The Switch, ELBA and SEO to deliver volunteering opportunities for the Corporation and Market.

In 2023, funding from the Lloyd’s of London Foundation supported 1,490 beneficiaries through our partnership with the Switch. 904 employees from across the Corporation and market volunteered 3,481 hours towards our school outreach programmes such as student mentoring, employability skills workshops and educational schemes which aim to increase confidence, aspirations and develop life skills.

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LLOYD'S OF LONDON FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 (continued)

Through our partnership with ELBA, funding supported 525 direct beneficiaries; 31 team challenges and engaged 713 volunteers. ELBA’s Board Builders programme allowed employees the opportunity to join the board of an East London Charity. In 2023, we had two trustees volunteer.

The ‘Insuring Futures’ collaboration between SEO London and the Lloyd’s Community Programme is continuing to help transform the lives of students from diverse backgrounds. As well as educating students about the structure and function of London’s insurance markets, ‘Insuring Futures’ creates opportunities for candidates to work with market firms. Importantly, this helps candidates in the long term by building workplace skills and instilling confidence in their ability to thrive in an industry they might not have otherwise considered. In the 2022/2023 academic year our work with SEO engaged 184 students from SEO Careers and 113 students from SEO Schools, placed 30 students into work placements across the market and saw 168 volunteers support as workshop leaders and mentors.

In 2023 LCP disbursed grants to its delivery partners of £219,349 and the programme involved 1,785 volunteers from 60 companies across the Lloyd’s market. The number of volunteer hours has been estimated at 7,647

Plans for the future

3. Lloyd’s Education Fund

In 2023, income from LEF investments was used to support the Lloyd’s University Bursary Fund. Eight students from low-income backgrounds were selected for a £5,000 grant for the 2023 cohort to help towards living expenses while studying for undergraduate degrees at universities outside of London. Applications were open to young people from schools across London.

In total, Lloyd’s Education Fund disbursed grants of £170k to 35 students with AEGIS London providing funding for three of these bursaries (one student per year), totalling £15k and General Reinsurance Corporation providing funding for two of these bursaries (one student in first year and one in second year), totalling £10k. As payments are split into two payments, one in September and one in January, the amounts in this report represent the second tranche and final payment (£2k per student) of funding for the 2020 cohort, as well as the first tranche (£3k per student) of funding for the, 2021, 2022 and 2023

cohort. AEGIS and General Reinsurance Corporation will continue to fund one bursary student per year and the LEF will continue funding five places. The Corporation of Lloyd’s donated £225,000 in 2020 to support an additional five students per year. No new Corporation of Lloyd’s students were enrolled in 2023 and all Corporation of Lloyd’s students are expected to have completed their degrees by 2025.

Two students from the 2020 cohort took breaks in their study and will finish their degree in 2024. One student from the 2021 cohort took a break in their study and will finish their degree in 2024. All students are required to sign up to new Lloyd’s Community Programme’s partner SEO London, to receive employability support, work placement opportunities in the Lloyd’s market, a mentor, and support applying for career opportunities once they complete their degree.

Plans for the future

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LLOYD'S OF LONDON FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 (continued)

FINANCIAL REVIEW

Funding Sources and Reserves Policy

General Fund and Lloyd’s Community Programme

The General Fund of Lloyd’s of London Foundation and the Lloyd’s Community Programme received an annual donation of £475k (2022: 350k) from the Council of Lloyd’s to support the work of its partner charities, community partners and the Lloyd’s Market Charity Awards.

Trustees have agreed a reserves policy of holding circa £250k in reserve. This equates to nearly one year’s income received from the Council of Lloyd’s and permits cover for any unbudgeted expenditure during the year. As at 31 December 2023, reserves totalling £530k were held.

Lloyd’s Education Fund

The Lloyd’s Education Fund relies on the investment income from funds managed by Cazenove Capital Management. The policy has been to leave the capital of the fund untouched as far as possible in order to provide a future income stream to support the fund’s activities. This policy has remained unchanged during the last year. As at 31 December 2023, reserves totalling £2,403k were held.

Risk analysis

The Foundation’s principal risk is the reduction in funding and inability to fundraise. This could manifest through the Council of Lloyd’s ceasing funding to the Foundation, the Foundation losing their ability to fundraise or if the Foundation’s investment portfolio weakens, meaning that investment income significantly reduces.

LoLF have significant mitigation processes in place which means that these scenarios are very unlikely. The Lloyd’s charities risk register and regular risk reviews mean that controls are in place for each risk. This is supported in kind by the Lloyd’s Corporation Risk & Regulatory team. LoLF also have a cash reserve meaning in any circumstance which this may occur, they are able to honour their grant giving requirements within their current partnership contracts. Grant agreements also feature termination clauses which protect LoLF from these risks and protect any reputational issues.

Investment policy and management

The invested funds of Lloyd’s Education Fund are held in funds managed by Cazenove Capital Management, whereby the costs of investment management are borne directly by the Foundation and amount to £7k (2022: £6k).

Investments are reviewed during the year to ensure that they are meeting the trustees' long-term objectives of maximising income whilst protecting the capital value of the Fund.

The cash element is placed with Morgan Stanley Funds PLC (Gartmore) as are any surplus funds from the General Fund and Lloyd’s Community Programme funds. The Gartmore account was closed in June 2023 and the monies transferred to the current accounts.

Bi-annual review meetings are held with the Foundation’s advisory investment manager, Cazenove Capital Management as part of the Charities Investment Advisory Committee, as well as additional meetings with the lead trustees for LoLF’s investments.

A report on the investments by Cazenove Capital Management is included on pages 11.

Summary of investment changes and capital movement

The gain for the year amounted to £59k (2022 loss: £246k).

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Lloyd’s of London Foundation

LLOYD'S OF LONDON FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 (continued)

Ethical Policies

The trustees review their level of exposure to ethically sensitive investments regularly and although

they have not adopted a negative screening policy, they continue to monitor their exposure level throughout 2023. The exposure level to ethically sensitive investments continued to be low and investment managers continue to engage with companies to encourage them to manage their ESG impact.

Commitments and Liabilities

The trustees have total committed expenditure of £152k (2022: £203k) in relation to bursaries.

Lloyd’s Education Fund

As at the end of 2023, Lloyd’s Education Fund has made a commitment to fund up to five Lloyd's University Bursary Fund students for three years of university.

As part of the same bursary programme AEGIS London and Gen Re have committed to fund one student for three years of university. The total number of students currently enrolled are 20 due to one student dropping out. The commitment in relation to these students is for £105k.

The Corporation of Lloyd's has committed to fund five students for three years of university from 2020 until 2025. The total number of students currently enrolled as part of the Lloyd's bursary is 15. The final students will complete their degrees in 2025. The commitment in relation to these students is for £47k.

Public Benefit

The Trustees take full account of the published Charity Commission general guidance on public benefit and are satisfied that the aims of the charity are carried out wholly in pursuit of its charitable aims for the public benefit. Lloyd's Charities Trust’s grant-making is of measurable benefit to individuals. Applications can be made by all charities focussing on disaster risk reduction on a global scale.

Acknowledgements

The trustees wish to record their sincere thanks to members of the Corporation of Lloyd's staff who assist with the administration of the financial statements of the Foundation, and to the Corporation of Lloyd's which bears the majority of the administration costs.

Approved by the Board of Trustees on 23 May 2024 and signed on its behalf by:-

Bruce Carnegie-Brown Chair

Hannah-Polly Williams Deputy Chair

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LLOYD'S OF LONDON FOUNDATION

STATEMENT OF THE TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2023

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 & 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:

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

10

LLOYD'S OF LONDON FOUNDATION

REPORT OF THE INVESTMENT MANAGER TO THE TRUSTEES OF LLOYD'S OF LONDON FOUNDATION FOR THE YEAR ENDED 31 DECEMBER 2023

Overview

Investment Objective

The portfolio is designed to maximise income whilst protecting the real value of capital over the medium to long term. The portfolio is managed on an advisory basis with Cazenove Capital Ltd providing investment advice on an ad hoc basis, custody, reporting and administration services. The portfolio uses a broad range of investments and may allocate a high proportion of its assets to equity, or equitylike, investments in pursuing its aims. Whilst the majority of the portfolio is invested in readily tradable assets, illiquid assets are considered part of the investable universe and the portfolio may have some exposure. Cash, fixed income and other defensive assets will normally account for only a small part of the portfolio.

Portfolio Summary
Description Market Value £ Portfolio Weight %
Multi-Asset 2,218,475 90.5%
Charity Multi-Asset Fund 536,412 21.9%
Charity Sustainable Mutli-Asset Fund 1,682,063 68.6%
Cash 228,322 9.5%
JP Morgan Liquidity Fund 185,649 7.6%
Sterling cash 46,456 1.9%
Total 2,450,580 100.0%

Source: Cazenove Capital as of 31.12.2023

Economic and Market outlook

Global equities (MSCI Index) have risen by 16% since late October 2023. This was driven by a significant change in market expectations around interest rates, as recent data found that inflation is falling faster than expected. The Federal Reserve (Fed) boosted markets further by signalling large rate cuts in its mid-December policy projections for 2024, with other central banks expected to follow suit. If the cuts come about because growth is falling faster than inflation, then that is problematic. That would create headwinds for equities and risky assets. However, for the time being there are good reasons to celebrate as the cost of capital has fallen, not least because of the impact on the cost-of-living crisis.

In the first week of January, carbon prices reached the lowest point in 14 months. This decline was driven by market disappointment with the outcome of the COP28 summit, where governments made climate commitments. The downward trend began weeks earlier when a draft agreement was released, omitting references to the phasing out of fossil fuels. However, there were positives. Nearly every country worldwide agreed to move away from fossil fuels during this decisive decade. The agreement also acknowledged that limiting global warming to 1.5°C would require a nearly 50% reduction in emissions by 2030.

One big theme 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 political stability, with only one Prime Minister over the last 12 months, despite wide-ranging economic and political challenges. The UK election probably won’t alter the trajectory of global financial markets, but it could have an impact on sterling. Meanwhile, investors will be very focused on what the outcome of the US election will mean for America’s debt trajectory. The result will also have a significant impact on geopolitics, from America’s relations with China to war in Ukraine and Israel.

Cazenove Capital, 31 December 2023

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LLOYD'S OF LONDON FOUNDATION

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF LLOYD'S OF LONDON FOUNDATION FOR THE YEAR ENDED 31 DECEMBER 2023

Opinion

We have audited the financial statements of Lloyd’s of London Foundation (the ‘charity’) for the year ended 31 December 2023 which comprise the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, including a summary of significant accounting policies. 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:

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 charity 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 trustee’s 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 charity’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 contained within the annual report. 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.

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 course of 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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LLOYD'S OF LONDON FOUNDATION

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF LLOYD'S OF LONDON FOUNDATION FOR THE YEAR ENDED 31 DECEMBER 2023 (Continued)

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ report.

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 10, the trustees are responsible for the preparation of financial statements which 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 charity’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 charity 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 section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

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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LLOYD'S OF LONDON FOUNDATION

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF LLOYD'S OF LONDON FOUNDATION FOR THE YEAR ENDED 31 DECEMBER 2023 (Continued)

Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Patrick du Cassé (Senior Statutory Auditor) For and on behalf of Simpson Wreford & Partners Chartered Accountants & Statutory Auditors Suffolk House George Street Croydon CR0 0YN

24 May 2024 Date : ………………….

Simpson Wreford & Partners is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

14

LLOYD'S OF LONDON FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023

Unrestricted Designated
Funds Funds Restricted Funds
Lloyd’s Lloyd’s Lloyd’s 31 Dec 31 Dec
General Patriotic Education Community 2023 2022
Fund Fund Fund Programme Total Total
Note £’000 £’000 £’000 £’000 £’000 £’000
INCOME:
Donations and legacies 2 382 100 25 150 657 385
Investment income 3 14 - 98 - 112 97
Total income 496 100 123 150 769 482
EXPENDITURE:
Investment management fees - - (7) - (7) (6)
Audit and other professional fees (5) - - - (5) -
Charitable activities:
Donations and grants payable 6 (413) (100) (11) (351) (875) (521)
Bursaries 6 - - (170) - (170) (158)
Total expenditure (518) (100) (188) (351) (1,057) (685)
Net income / (expenditure) and net
movement in funds		 (22) - (65) (201) (288) (203)
Net realised gain / (loss) on investments 7 - - - - - -
Net unrealised gain / (loss) on investments 7 - - 59 - 59 (246)
Net gain/(loss) on investments - - 59 - 59 (246)
NET MOVEMENT IN FUNDS (22) - (6) (201) (229) (449)
Balance brought forward at 1 January 2023 266 - 2,409 487 3,162 3,162
Transfer between funds 16 67 - (67) - -
Balance carried forward at 31 December
2023		 311 - 2,403 219 2,933 3,162

The notes on pages 18 - 24 form part of these financial statements.

15

23 May 2024

LLOYD'S OF LONDON FOUNDATION

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2023

Note 2023
£’000		 2022
£’000
Net cash used in operating activities 10 (252) (523)
Cash flows from investing activities:
Interest and dividends 112 97
Purchase of investments - -
Proceeds from sale of investments - -
Net cash provided by investing activities 112 97
Change in cash and cash equivalents in year (140) (426)
Cash and cash equivalents brought forward 676 1,102
Cash and cash equivalents carried forward 536 676
Cash and cash equivalents consist of:
Cash within investments 46 46
Short term deposits - 351
Cash at bank 490 279
Total 536 676

17

LLOYD'S OF LONDON FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

1. ACCOUNTING POLICIES

Basis of accounting

The charity constitutes a public benefit entity as defined by FRS 102. In preparing the financial statements the fund follows best practice as laid down in the Statement of Recommended Practice “Accounting and Reporting by Charities” (Charities SORP FRS 102) in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.They are drawn up on the historical accounting basis except that investments held as fixed assets are carried at market value.

Going concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

Donations, legacies and fundraising

Donations and legacies are included in the statement of financial activities when receivable. Fundraising income is included in the statement of financial activities when received.

Investment income

Dividends from equity investments are taken into account on the due date of payment; all other income is included by reference to the amount due in respect of the accounting period.

Gains and losses on investments

Gains or losses on disposals in the year are calculated by reference to the carrying value of the holding as at the date of sale.

Grants

Grants are accounted for by reference to the amount due in respect of the accounting period.

Administration expenses

The cost of the administration of the Charity is borne in full by the Corporation of Lloyd’s with the exception of investment management fees, audit fees and bank charges. No remuneration was paid to the Trustees and any reasonable Trustees expenses are reimbursed by the Corporation.

Taxation

The Foundation is established as an exempt approved charity for taxation purposes.

Investments

Investments are stated at their market value at the date of the balance sheet. Gains and losses on investments are taken directly to the statement of financial activities.

Debtors

Debtors are recognised at the settlement amount due.

Short term deposits

Short term deposits include short term highly liquid investments with a short maturity of three months or less from the date of acquisition.

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LLOYD'S OF LONDON FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

1. ACCOUNTING POLICIES (CONTINUED)

Creditors

Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount.

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are recognised at amortised cost or as specified in the preceding accounting policies. As there are currently no long term financial instruments, the transaction value and settlement value will be the same.

Allocation between funds

Investment income and capital gains and losses on investments are allocated to individual funds in proportion to their share of the Fund account balance at the beginning of the year.

Funds

The General Fund comprises all unrestricted monies which may be used towards meeting the charitable objectives of the Foundation at the discretion of the trustees.

The Lloyd’s Patriotic Fund is a designated fund, as it relates to the monies donated by the Corporation of Lloyds for distribution to other Lloyd’s charities.

The Lloyd’s Education Fund and Lloyd’s Community Programme are restricted funds to be used for specific purposes or for donations subject to donor-imposed conditions, as confirmed by the trustees.

Further details of each fund are disclosed at note 13.

2. DONATIONS AND LEGACIES

2. DONATIONS AND LEGACIES
2023 2022
£’000 £’000
General donations 182 35
Donation from the Corporation of Lloyd’s 475 350
657 385
3. INVESTMENT INCOME
2023 2022
£’000 £’000
Dividends – UK equities 98 92
Dividends – property fund - -
Interest – UK fixed interest investments 14 5
112 97

4. AUDITOR’S REMUNERATION

The auditor’s remuneration constituted an audit fee of £2k (2022: £2k) and non-audit fees of £nil (2022:£nil).

As noted in the report of the Trustees, the auditor was paid for the provision of bookkeeping services. This was for an amount of £5k (2022: £5k) and was paid by the Corporation of Lloyd’s.

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LLOYD'S OF LONDON FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 (continued)

5. STAFF COSTS AND NUMBERS

The average number of employees was nil (2022: nil). No remuneration was paid in either the current or prior period.

6. ANALYSIS OF CHARITABLE EXPENDITURE

ANALYSIS OF CHARITABLE EXPENDITURE
2023 2022
£’000 £’000
Funded from unrestricted funds:
Habitat for Humanity Great Britain - 150
Lloyd’s Market Charity Awards 120 179
Payments to Flagship Partners 275 -
Other donations 18 -
Funded from restricted funds:
Lloyd’s Patriotic Fund 100 -
Lloyd’s Community Programmes 351 165
Lloyd’s Education Fund 181 185
1,045 679

More detail of the individuals and institutions paid can be found within the trustee’s report.

7. QUOTED INVESTMENTS

QUOTED INVESTMENTS
2023
Equity Property Cash Total
£’000 £’000 £’000 £’000
Market value brought forward 2,345 - 46 2,391
Net (sales) and purchases - - - -
Net unrealised gain/(loss) for the 59 - - 59
year
Net realised gain/(loss) for the - -
 - -
year
Movements on cash account - - - -
Market value carried forward 2,404 - 46 2,450
2022
Equity Property Cash Total
£’000 £’000 £’000 £’000
Market value brought forward 2,591 - 42 2,633
Net (sales) and purchases - - - -
Net unrealised gain/(loss) for the (246) - - (246)
year
Net realised gain/(loss) for the - - - -
year
Movements on cash account - - 4 4
Market value carried forward 2,345 - 46 2,391

20

LLOYD'S OF LONDON FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 (continued)

8. DEBTORS

8. DEBTORS
2023 2022
£’000 £’000
Prepayments and deferred income - 143
- 143
9. CREDITORS
2023 2022
£’000 £’000
Accruals 7 2
Accruals for grants payable - -
7 2

10. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES

OPERATING ACTIVITIES
2023 2022
£’000 £’000
Net movement in funds (229) (449)
Less interest and dividend income shown within investing (112) (97)
activities
(Gain) / loss on investments (59) 246
Decrease / (increase) in debtors 143 (143)
(Decrease) / increase in creditors 5 (80)
Net cash (outflow) / inflow from operating activities (252) (523)

11. DISCLOSURE OF RELATED PARTY TRANSACTIONS & TRUSTEE REMUNERATION

The trustees receive no remuneration and no expenses were reimbursed within the financial year 2023.

There were no related party transactions in the year 2023.

12. FUNDING COMMITMENTS

The trustees have total committed expenditure of £152k (2022: £203k) in relation to bursaries.

21

LLOYD'S OF LONDON FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 (continued)

13. FUNDS

General Fund

The general fund is available to be spent for any purposes of the charity.

Lloyd’s Patriotic Fund

Amounts donated by the Corporation of Lloyd’s for distribution to Lloyd’s Patriotic Fund are treated as designated funds.

Lloyd’s Education Fund

Previously the Cuthbert Heath Centenary Fund, The Lloyd’s Education Fund was established to benefit young people in London communities. Funds are generated by income from the charity’s investments and are used to provide bursaries and educational support to low income students. Funds are restricted to this purpose.

Lloyd’s Community Programme Fund

Expenditure from The Lloyd’s Community Programme is restricted to funding local organisations with the aim to help individuals achieve their potential with the support from the Lloyd’s market. Income is generated mainly through an annual donation from the Council of Lloyd’s. In addition, donations are made by brokers in the Lloyd’s market.

22

LLOYD'S OF LONDON FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 (continued)

14. ANALYSIS OF COMPARATIVE INFORMATION WITHIN THE STATEMENT OF FINANCIAL ACTIVITES

Lloyd’s Lloyd’s 31 Dec
General Education Community 2022
Fund Fund Programme Total
£’000 £’000 £’000 £’000
INCOME:
Donations and legacies 15 20 350 385
Investment income 4 93 - 97
Total income 19 113 350 482
EXPENDITURE:
Investment management fees - (6) - (6)
Audit and other professional fees - - - -
Charitable activities:
Donations and grants payable (329) (27) (165) (521)
Bursaries - (158) - (158)
Total expenditure (329) (191) (165) (685)
Net income/(expenditure) and net (310) (78) 185 (203)
movement in funds
Net realised gain / (loss) on - (246) - (246)
investments
Net unrealised gain / (loss) on - - - -
investments
Net gain/(loss) on investments - (246) - (246)
NET MOVEMENT IN FUNDS (310) (324) 185 (449)
Balance brought forward at 1 January 576 2,733 302 3,611
2022
Balance carried forward at 31 266 2,409 487 3,162
December 2022

23

LLOYD'S OF LONDON FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 (continued)

15. ANALYSIS OF COMPARATIVE INFORMATION WITHIN THE BALANCE SHEET

Lloyd’s Lloyd’s 31 Dec
General Education Community 2022
Fund
Fund		 Programme Total
£’000 £’000 £’000 £’000
INVESTMENTS
At market value - 2,216 175 2,391
CURRENT ASSETS
Debtors 17 11 115 143
Short term deposits 156 - 195 351
Cash and cash equivalents 95 182 2 279
268 193 312 773
CURRENT LIABILITIES
Creditors (2) - - (2)
Total expenditure (2) - - (2)
NET CURRENT ASSETS 266 193 312 771
NET ASSETS 266 2,409 487 3,162
FUNDS 266 2,409 487 3,162

16. TRANSFER BETWEEN FUNDS

Transfers between funds relate to the reclassification of expenditure in prior periods.

24