2024-12-31-accounts - Lloyd's Patriotic Fund

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LLOYD'S PATRIOTIC FUND

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 DECEMBER 2024

LLOYD’S PATRIOTIC FUND

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

	Page
Report of the Trustees	1-8
Statement of the Trustees' responsibilities	9
Report of the investment manager	10-11
Report of the independent auditors	12-14
Statement of financial activities	15
Balance sheet	16
Notes to the financial statements	17-23

LLOYD’S PATRIOTIC FUND

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024

TRUSTEES AND OFFICIALS

Registered number	210173
Address	Lloyd’s of London
	One Lime Street
	London
	EC3M 7HA
	020 7327 1000
Trustees	Mr Ed Butler (Chair)
	Mrs Michelle Alston(retired June 2024)
	Mr Bruce Carnegie-Brown (retired September 2024)
	Mr Warren Clegg (appointed August 2024)
	Mr James De Labilliere (appointed as Deputy Chair – November 2024)
	Dr Paul Hughes (retired October 2024)
	Mr Mark Keville (appointed August 2024)
	Mr Neil Maidment
	Mr Simon Maxwell
	Mr Sean McGovern (appointed January 2024)
	Mr William Roscoe (Deputy Chair - retired October 2024)
	Air Commodore Wendy Rothery (retired May 2025)
	Mrs Caroline Sandeman-Allen (retired March 2025)
	Mr Duncan Welham
	Mrs Nicola West (appointed October 2024)
	Ms Jane Warren (appointed February 2025)
Secretary	Mrs Lucy Dinsdale
Investment Advisors	Cazenove Capital Management
	12 Moorgate
	London
	EC2R 6DA
Auditors	TC Group
	Suffolk House
	George Street
	Croydon
	CR0 0YN
Bankers	National Westminster Bank PLC
	PO Box 12258
	1 Princes Street
	London
	EC2R 8PA

LLOYD’S PATRIOTIC FUND

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024 (continued)

The trustees of Lloyd's Patriotic Fund (The Fund) have pleasure in presenting their report together with the audited financial statements of the Fund for the year ended 31 December 2024.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Frequency of meetings and quorate meetings

Lloyd’s Patriotic Fund (LPF) was established in 1803 constituted by a Trust Deed dated 28 May 1875 and is a registered charity subject to the provisions of the Charities Act 2011. The financial statements have been prepared in accordance with the accounting policies set out on pages 17 and 18 and comply with the Fund’s Trust Deed and applicable law.

LPF is also guided by a separate terms of reference which covers matters such as number of trustees, frequency of meetings and quorate meetings.

Responsibility for carrying out the objectives of LPF rests with the trustees. The Charity Partnerships team at the Corporation of Lloyd’s acts as Secretariat to The Fund, and works under the direction of the trustees. Delegated authority is given to the Lloyd’s Charity Partnerships team, an outsourced finance team (TC SWP Ltd) and Lloyd’s Treasury and Investment Management to advise and assist as per LPF’s Delegated Authority documentation. With the exception of audit fees, bank charges, insurance and investment management fees which are borne directly by the Fund, all administration costs of the Fund are borne in full by the Corporation of Lloyd's.

The disbursement of the Fund is at the sole discretion of the trustees unless funds have been given for a specific purpose.

Trustees

There were eleven trustees as at 31 December 2024.

According to the governing document, upon the death, retirement or resignation of a trustee or when the number of trustees falls to seven, the trustees are required to appoint new trustees up to a maximum of fourteen. In accordance with the governing document the Board of Trustees did not fall below seven or exceed fourteen trustees at any one time.

The 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 the funds of LPF. Any reasonable travel expenses were covered for trustees as a cost borne to 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 and the majority of trustees have military experience directly or indirectly.

LPF also aims to be a diverse board of trustees representing different voices as outlined in its Recruitment Policy which is reviewed every three years. With a formal external recruitment process implemented in June 2019 potential trustees can apply. LPF has a Trustee Recruitment subcommittee who formally interview potential candidates and decide who to put forward to the board. The board 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.

LLOYD’S PATRIOTIC FUND

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024 (continued)

Consideration is given to relevant experience such as military service as well as knowledge of Lloyd’s and the London insurance market, their interest or experience in the military charitable sector and experience of charity governance.

Potential trustees are invited to meet with the Trustee Recruitment subcommittee (including the Chair and the Charity Partnerships team). Before agreeing to become a trustee they will take part in a trustee induction session with the Charity Partnerships team to be informed of LPF’s structure, objectives and activities and their responsibilities as a trustee. This induction ensures that all new trustees follow good practice and guidance from the Charity Commission. All new trustees are required to sign LPF’s Code of Conduct as part of their onboarding process.

Once appointed, trustees will be supported by the Charity Partnerships team 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 diversity and skills audit on an annual basis. They are also made aware of the requirement to alert the Chair and Charity Partnerships team at any time when a new potential conflict of interest arises.

Trustees meet three times a year as this is sufficient for the size and nature of the organisation. Four trustees present at a meeting shall be quorum. As stated in the original Trust Deed all matters and questions shall be determined by a majority vote of the trustees present at any 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 Fund including consideration of governance, grant giving, charity partnerships, investment, reserve and risk management policies and performance.

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

LPF has a number of subcommittees of which trustees and the Charity Partnerships team are a part. These include:

Fundraising
Grants
Investments & Finance
Risk & Audit
Communications

The day-to-day administration of grants and the processing and handling of applications prior to consideration by the relevant subcommittee is delegated to the Charity Partnerships team. The Grants subcommittee of trustees meet to review all applications for grants, shortlist applications and agree recommendations to take forward to trustee meetings.

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.

LLOYD’S PATRIOTIC FUND

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024 (continued)

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.

The Risk Register outlines the major risks to which the charity is exposed. The Risk Register is reviewed annually and trustees are also alerted to any new risks.

As Lloyd's employees, all individuals administering LPF are able to raise issues relating to fraud and financial crime in accordance with Lloyd's Whistleblowing procedures. LPF has a Conflicts of Interests policy and procedure which all trustees are familiar with and follow. This is reviewed every three years.

OBJECTIVES AND ACTIVITIES

Founded in 1803, Lloyd’s Patriotic Fund is the oldest military charity of its kind, supporting the armed forces community on behalf of the Lloyd’s market. We focus on improving the transition to civilian life for veterans and their families who need the most help.

Each year, 15,000 personnel leave the UK Armed Forces and return to civilian life and their families. For the majority the transition is successful, however a high proportion of veterans find this more difficult, putting them in a vulnerable position.

Today, Lloyd’s Patriotic Fund unites support from the market to aid the successful transition to civilian life for veterans and their families to ensure successful futures. Through a programme of grants, ranging in size and duration, Lloyd’s Patriotic Fund partners with military charities who are best placed to meet the mental health and employment needs of the military community.

The trustees confirm that they have referred to the advice contained in the Charity Commission’s general guidance on public benefit when reviewing the Trust’s aims and objectives and in planning future activities.

The Fund is divided into a number of individual funds established for public benefit to achieve the Fund’s strategic priorities.

General Fund (1803)

This Fund provides assistance to officers and men and women of the Royal Navy, the Army, Royal Marines and Royal Air Force or their families (partners, widows, orphans, dependants and relatives) who, at the trustees’ discretion, are fitting recipients.

The Hugh Stewart McCorquodale Memorial Fund (1901)

A bequest of 1,000 guineas made by Lieutenant Hugh Stewart McCorquodale, killed during the South African War, where the use of income is at the discretion of trustees.

Edwin Hampson Mackintosh Fund (1916)

Lieutenant Edwin Hampson Mackintosh killed on the first day of the Battle of Loos, bequeathed £1,000 with the stipulation that the income is used for the benefit of officers of the Royal Navy or Royal Marines or their dependants.

Janson Fund (1918) – now formally part of the general fund as of 28 January 2021

A gift of £10,000 was made by the then Chair Percy Janson. Trustees designated that the capital or income be used primarily to assist officers of the Royal Navy, the Army and Royal Marines or their dependants in the form of grants towards the education and maintenance of their children.

LLOYD’S PATRIOTIC FUND

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024 (continued)

Charles Skey Fund (2013)

In May 2013 Charles Skey, former trustee and Chair of Lloyd’s Patriotic Fund, made a bequest of £1,000,000 to Lloyd’s Patriotic Fund. Mr Skey expressed the wish that the capital is invested and untouched and that the income is used for the general charitable purposes of the Fund.

ACHIEVEMENTS

Fundraising

The trustees continue to focus on LPF’s fundraising “Slip” campaign as a primary strategic fundraising campaign. The aim of this is to increase financial support from the Lloyd’s market for LPF in collaboration with the Royal British Legion Lloyd’s and City branch. This campaign focuses on donations from companies in the Lloyd’s market. This approach has been in place since February 2019 following a review after which the LPF took a new approach to fundraising, grant giving and the way it works with its charity partners.

Partnerships and Grant Giving

LPF continues to work closely with charities which support veterans and their families transitioning to civilian life through employability and mental health programmes.

Donations are provided for strategic charity partnerships to undertake an agreed project, subject to rigorous due diligence checks and a detailed Grant Agreement. The effectiveness of the grants and partnerships are monitored through 6-monthly reporting produced by charity partners and presented to trustees, and consistent relationships with the Charity Partnerships team at the Corporation of Lloyd’s. Individual trustees are responsible for leading the engagement with charity partners including project updates and visits where possible, regular meetings and approving the mid-project and end of project update reports to all trustees.

Long-term partnerships

In 2023 the LPF entered into partnerships, through the charity’s large grants programme with Forces Employment Charity and Scotty’s Little Soldiers who will receive £100,000 and £85,000 per annum respectively over a 3 year period.

Forces Employment Charity

The Charity provides life-long, life-changing support, job opportunities and training to Service leavers, veterans, reservists and their families, regardless of circumstances, rank, length of service, or reason for leaving. Funding from the LPF has secured the employment of two full-time Family Employment Advisors over a three year period as they seek funding from multiple sources to build this project to cover the whole of the UK. In 2024, the highly skilled Families Employment Advisors’ support has resulted in 94% of beneficiaries increasing their job search skills. Significantly, 89% of beneficiaries increased their social mobility with 221 entering new employment or training.

During 2024 the FEC Families Programme has supported 1,100 beneficiaries and has received 792 new referrals to the project.

The FEC’s continuous efforts to impact an increasingly diverse range of beneficiaries were acknowledged when the Families Programme was selected as a finalist for the Diversity and Inclusion Initiative of the Year at the Ex-Forces Business Awards.

Scotty’s Little Soldiers

Scotty’s Little Soldiers (Scotty’s) is a charity dedicated to supporting children and young people (0 to 25 years) who have experienced the death of a parent who served in the British Armed Forces. The charity is the only UK organisation that provides long-term holistic support to hundreds of bereaved Forces children and young people and services offered include guidance to parents and carers, access to professional child bereavement support, personal education and learning assistance (including grants) and fun activities such

LLOYD’S PATRIOTIC FUND

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024 (continued)

as holiday respite breaks and group events. These are all designed to remind the children and young people supported by Scotty’s that they are not alone, their sacrifice hasn’t been forgotten and they are part of a supportive community.

The LPF funding supports two programmes that are central to the work of the charity – STRIDES programme and Military Bereavement in Education.

The STRIDES programme which helps promote a positive attitude to learning and provides opportunities to develop life skills.

In 2024, Scotty’s have been able to award 248 grants thanks to LPF funding:

Scotty Driving Grants – 24 (total value £2,400)
Scotty’s New School Grants – 21 (total value £1,050)
Scotty’s Super Grants – 3 (total value £2,950)
Scotty Allowance – 169 (total value £16,900)
Springboard Higher Education – 10 (total value £9,698)
Springboard Allowance – 21 (total value £2,002)

All of the above grants have benefitted recipients in a number of ways including: increasing confidence and self-esteem, promoting independence, improving physical health which in turn supports more positive mental health and has provided access to some outstanding development opportunities that may otherwise not have been possible without LPF’s support.

The STANDBY project is a 3-year strategic programme funded by the LPF and the Armed Forces Covenant Trust, which aims to ensure bereaved children and young people are sensitively supported in their education following the death of their parent who served in the British Armed Forces. Through influencing at the highest levels in the UK, the programme seeks to drive system change in UK primary and secondary education, to reduce the impacts of negative experiences at school suffered by bereaved military children.

Significant steps were taken in the project in 2024 including:

a visit by the Scotty’s Council, a group of bereaved military children to 10 Downing Street
completion of a research project to gather data on bereaved children’s experiences from c. 200 families
the development of animations to represent the experiences of bereaved children

Small Grants

Complementing the charity’s long-term partnerships programme, LPF has traditionally supported charities with smaller value projects delivered over one or more years. In 2024, two more charities were successful in gaining funding, bringing the total of small grant partners to four.

Charity	Grant start	Length	Amount	Focus
The Contact Group (via Help for Heroes)	Nov 2022	3 years	£21,000	Mental health – providing funding for 8 small organisations to access training and support services for their staff from the Royal College of Psychiatrists
The Ripple Pond	April 2023	3 years	£30,000	Mental health – supporting family members of service leavers caring for loved ones physically or psychologically harmed during service
Care After Combat	June 2024	3 years	£45,000	Mental health – one-to-one support and mentoring for veterans in custody
High Ground	June 2024	1 year	£15,000	Employability – supporting female veterans to understand opportunities available within the land-based sector

LLOYD’S PATRIOTIC FUND

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024 (continued)

FINANCIAL REVIEW

Funding Sources and Reserves Policy

The revenue of the Fund is generated from investment income and legacies and donations from individuals and companies.

The General Fund of LPF received a donation of £100,000 (2023: £100,00) from the Council of Lloyd’s to support the grant giving programme. The Lloyd’s Patriotic Fund also fundraises by an annual ‘slip’ which asks for support from companies in the market.

The charity aims to maintain the real capital value of its investments in its reserves whilst fully expending its donation and investment derived income in pursuit of its aims and objectives. Trustees have a reserves policy of holding circa £125,000 in reserve at all times (plus or minus 10%). A resolution will need to be passed to approve taking the cash reserves lower than £100,000. This allows cover for any unbudgeted expenditure during the year. Trustees wish to keep at least 70% of the assets in investments that can be realised within three months and a minimum of 2% of total assets should be kept in cash or near cash investments at all times.

Risk analysis

The Fund’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 Fund, the Fund losing their ability to fundraise or if the Fund’s investment portfolio weakens, meaning that dividends significantly reduce.

LPF 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. LPF 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 LPF from these risks and protect any reputational issues.

Investment policy and management

The invested funds of Lloyd’s Patriotic Fund are held in funds managed by Cazenove Capital Management whereby the costs of the investment management are borne directly by the Fund and amount to £17,000 for the year ended 31 December 2024 (period ended 31 December 2023: £16,000).

Fees are deducted based on the whole portfolio on a daily average market value at a rate of 0.325% subject to VAT. There is also underlying fund management charges which are deducted from investment income or capital.

Investments are reviewed on a regular basis during the year by the relevant lead trustee and monitored by the Board of Trustees to ensure that they are meeting the trustees’ long term objectives of maximising income available for charitable purposes whilst protecting the capital value of the fund.

Bi-annual review meetings are held with the Fund’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 LPF’s investments.

A report on the investments by Cazenove Capital Management is included on pages 10-11.

The overall gross annual investment income amounted to £154,000 for the year ended 31 December 2024 (period ended 31 December 2023: £145,000).

The excess of income over expenditure for the year amounted to £183,000 for the year ended 31 December 2024 (period ended 31 December 2023 as restated: £301,000) and during the year the market value of the Foundation’s investment portfolio increased to a total of £4,543,000 (2023: £4,182,000).

LLOYD’S PATRIOTIC FUND

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024 (continued)

Ethical Policies

The trustees regularly review their level of exposure to ethically sensitive investments and agreed that the total sector exposure to ethically sensitive stocks should remain under 10%. The exposure level to ethically sensitive investments continues to be low and investment managers continue to engage with companies to encourage them to manage their ESG impact. The exposure rating was reviewed in 2020 by the lead trustees for LPF’s investments who also sit on the Charities Investment Advisory Committee. The trustees do not wish to adopt an exclusionary policy but individual investments may be excluded if perceived to conflict with the Fund's purpose. It is ensured that all investments are held with acceptable evidence of ESG integration and the board’s ethical investments approach is monitored by the board of trustees regularly.

Commitments and Liabilities

LPF has made a commitment to spend the annual donation from the Council of Lloyd’s on charitable partnerships that achieve the strategy of LPF as well as using investment income and reserves to make further grants. Large grant charity partners (Forces Employment Charity and Scotty’s Little Soldiers) receive committed expenditure amounts of £100,000 and £85,000 per year each for three years, with £185,000 committed and yet to be donated. LPF has also made a commitment to spend £30,000 on a grant to Care After Combat, payable over the next two years, and a commitment to spend £10,000 on a grant to The Ripple Pond, payable in 2025.

Any potential reduction in future investment income will not materially affect any current project commitments. Trustees will continue to monitor the markets closely and have the option to drawdown funds as they see fit.

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 Patriotic Fund’s grant-making is of measurable benefit to individuals. Applications can be made by all military and ex-military charities that support serving and ex-service armed forces personnel and their dependants who are in need.

Acknowledgement

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 Fund and to the Corporation of Lloyd's which bears the majority of administration costs.

The Trustees are grateful to the Corporation of Lloyd’s for their agreement to provide LPF with an annual donation from the Council of Lloyd’s on behalf of the Lloyd’s market.

The Trustees are grateful to the individuals and companies who supported the Fund with donations which amounted to £185,000 for the year ended 31 December 2024 (period ended 31 December 2023 as restated: £270,000) during the year.

The Trustees also wish to thank our charity partners for all their tireless support and help to the military community, veterans and their families.

26 June 2025

Approved by the Board of Trustees on …………….………….. and signed on its behalf by: -

Ed Butler James de Labilliere Chair Deputy Chair

LLOYD’S PATRIOTIC FUND

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024 (continued)

Trustees' responsibilities statement

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:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP;
make judgements and estimates that are reasonable and prudent;
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charity will 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 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.

LLOYD’S PATRIOTIC FUND

REPORT OF THE INVESTMENT MANAGER TO THE TRUSTEES OF LLOYD'S PATRIOTIC FUND FOR THE YEAR ENDED 31 DECEMBER 2024

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 equity-like 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

Portfolio Summary
Description	Market Value £	Portfolio Weight %
Equities	2,903,479	63.9%
UK	791,180	17.4%
Vanguard FTSE UK All Share Index	239,632	5.2%
ASI UK All Share Tracker Fund	551,548	12.1%
Global	2,112,298	46.5%
Vanguard FTSE All-World ETF	935,851	20.6%
Fidelity Global Dividend	878,614	19.3%
HSBC FTSE All-World Index Fund	297,831	6.6%
Multi-asset	1,085,868	23.9%
Charity Multi-Asset Fund	106,409	2.3%
Charity Sustainable Multi-Asset Fund	979,459	21.6%
Property	301,869	6.6%
Charities Property Fund	301,869	6.6%
Cash	251,695	5.5%
JPMorgan Liquidity Fund	197,701	4.4%
Sterling cash	53,994	1.2%
Total	4,542,912	100%

Source: Cazenove Capital as of 31.12.2024

Economic and Market outlook

US stocks concluded their best two-year stretch in 25 years, as 2024 marked the second consecutive double-digit returns for the S&P 500. The Magnificent Seven technology companies once again led the way, accounting for 55% of the S&P 500 return, building on their contribution of 63% of the return in 2023. The final quarter of the year saw a dramatic shift in the global landscape, with Donald Trump winning the US election in November. US equities rallied following the election results, driven by optimism regarding deregulation and tax cuts. However, gains were later tempered by concerns about trade wars and rising inflation, which also dragged down other regions.

Looking ahead, we expect the global economy to continue to deliver growth in the region of 2.5-3% over the next couple of years. While this is broadly in line with the growth rates of 2023 and 2024, the relative stability masks significant shifts at the country level, with stronger growth expected in the US offset by weaker growth elsewhere. Trump's plan to cut taxes and reduce regulation should boost US growth in 2025 and 2026. However, faster growth may exacerbate inflationary pressures from potential tariffs and immigration restrictions, which could limit the scope for interest rate cuts. In the UK, the Labour government's mildly expansionary budget may indicate that inflation is unlikely to return to the Bank of England's 2% target on a sustained basis. Consequently, interest rates are likely to fall only gradually, and the UK is expected to struggle with growth.

LLOYD’S PATRIOTIC FUND

REPORT OF THE INVESTMENT MANAGER TO THE TRUSTEES OF LLOYD'S PATRIOTIC FUND FOR THE YEAR ENDED 31 DECEMBER 2024 (continued)

Economic fundamentals suggest that 2025 should be another positive year for equities. The challenge is that downside risks are greater than before; the prospect of an all-out trade war looms large, the outlook for interest rates is more uncertain, and government debt continues to rise.

Subsequent to the balance sheet date, there has been significant uncertainty and volatility in investment markets, but overall the impact is not considered material to the investment performance or annual income.

Cazenove Capital Management, 31 December 2024

LLOYD’S PATRIOTIC FUND

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF LLOYD'S PATRIOTIC FUND FOR THE YEAR ENDED 31 DECEMBER 2024

Opinion

We have audited the financial statements of Lloyd’s Patriotic Fund (the ‘charity’) for the year ended 31 December 2024 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:

give a true and fair view of the state of the charity’s affairs as at 31 December 2024, 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 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 trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. 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 a 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.

LLOYD’S PATRIOTIC FUND

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF LLOYD'S PATRIOTIC FUND FOR THE YEAR ENDED 31 DECEMBER 2024 (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:

the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or
sufficient accounting records have not been kept; or
the financial statements are not in agreement with the accounting records; 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, 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:

We obtained an understanding of the legal and regulatory framework applicable to the entity and the sector in which it operates, through discussions with management and those charged with governance. We identified the financial reporting framework including but not limited to United Kingdom Generally Accepted Accounting Practice and the Charities Act 2011, Data Protection Act 2018 and Bribery Act 2010 legislation as being of significance in the context of the charity and its ongoing activities.
We made enquiries with management and those charged with governance to confirm our understanding that the charity continued to comply with the applicable legal and regulatory frameworks, and also to confirm our understanding of the specific policies and procedures enlisted by the charity to ensure ongoing compliance.

LLOYD’S PATRIOTIC FUND

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF LLOYD'S PATRIOTIC FUND FOR THE YEAR ENDED 31 DECEMBER 2024 (continued)

We assessed the susceptibility of the charity's financial statements to material misstatement, including how fraud may occur, and gained an understanding of the charity's policies and procedures on fraud risks through discussion with the charity's management.
We considered the risk of material misstatement due to fraud as a result of possible management override of controls and improper revenue recognition. In addressing this risk of fraud we have tested the appropriateness of journal entries and other adjustments including a sample of manual journals along with testing revenue recognition and confirming that cut-off is appropriate.
We communicated those laws and regulations considered relevant to the charity, and potential fraud risks to all engagement team members, and consider that the engagement team had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations, and remained alert to any indications of fraud throughout the audit.

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 members, as a body, in accordance with the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity's members those matters we are required to state to him 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 members, 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 TC Group Statutory Auditors Suffolk House George Street Croydon CR0 0YN

26 June 2025 Date…………………………………………..

TC Group is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

LLOYD’S PATRIOTIC FUND

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2024

Note INCOME: Donations and legacies 2 Investment income 3 Total income EXPENDITURE: Investment management fees Charitable activities: Donations and grants payable 6 Other expenses Total expenditure Net income / (expenditure) and net movement in funds Realised gain / (loss) on investments 7 Unrealised gain / (loss) on investments 7 Net gain / (loss) on investments 7 NET MOVEMENT IN FUNDS Total funds brought forward Total funds carried forward	Unrestricted Funds Restricted Funds Endowment Funds General Fund £’000 Mackintosh income £’000 Mackintosh Fund £’000 McCorquodale Fund £’000 Skey Fund £’000 285 - - - - 111 6 - 2 35 396 6 - 2 35 (16) (1) - - - (225) - - - - (14) - - - - (255) (1) - - - 141 5 - 2 35 (2) - - - - 212 - 12 4 131 210 - 12 4 131 351 5 12 6 166 3,076 26 141 53 1,387 3,427 31 153 59 1,553	Year ended 31 December 2024 Total £’000 285 154 439 (17) (225) (14) (256) 183 (2) 359 357 540 4,683 5,223	Year ended 31 December 2023 Total (as restated) £’000 370 145
			515
			(16) (195) (3)
			(214)
			301 16 181
			197
			498 4,185
			4,683

The notes on pages 17 to 23 form part of these financial statements.

LLOYD’S PATRIOTIC FUND

BALANCE SHEET FOR THE YEAR ENDED 31 DECEMBER 2024

Unrestricted Funds Restricted Funds General Fund £’000 Mackintosh income £’000 Mackintosh Fund £’000 3,000 - 153 34 - - 399 31 -	Endowment funds McCorquodale Fund £’000 Skey Fund £’000 52 1,338 - - 7 215 7 215 - - - - 7 215 59 1,553 59 1,553	Year ended 31 December 2023 Total (as restated) £’000 4,182 51 456
433 31 -	7	507
(6) - -	-	(6)
(6) - -	-	(6)
427 31 -	7	501
3,427 31 153	59	4,683

3,427 31 153	59	4,683

26 June 2025

Approved and authorised for issue by the Board of Trustees on ……………………..…… and signed on its behalf by

Ed Butler James de Labilliere Chair Deputy Chair

The notes on pages 17 to 23 form part of these financial statements.

LLOYD’S PATRIOTIC FUND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

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) 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 costs of the administration of the Fund are 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 from Lloyd’s Patriotic Fund, nor were any Trustees expenses reimbursed to them from the Fund. Reasonable travel expenses for trustees were reimbursed from the Corporation of Lloyd’s.

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 maturity of three months or less from the date of acquisition.

LLOYD’S PATRIOTIC FUND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (continued)

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

The funds of the Charles Skey Fund are managed separately as their own portfolio of investments, with its income and investment movements reported separately. The remaining funds of the charity are managed as a pooled portfolio, with their income and investment movements being allocated to each individual fund in proportion to their account balances at the beginning of the period.

2. DONATIONS AND LEGACIES

DONATIONS AND LEGACIES
General donations Donation from the Corporation of Lloyd’s Royal British Legion “Slip” Campaign	Year ended 31 December 2024 £’000 127 100 58 285	Year ended 31 December 2023 £’000 100 100 170
		370

3. INVESTMENT INCOME

Equity Fund Investments Property fund UK fixed interest investments	Year ended 31 December 2024 £’000 133 21 - 154	Year ended 31 December 2023 £’000 115 30 -
		145

4. AUDITOR’S REMUNERATION

The auditor’s remuneration constituted an audit fee of £2,500 (2023: £2,400) and non-audit fees of £nil (2023: £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 £6,000 (2023: £5,000) and was paid by the Corporation of Lloyd’s.

LLOYD’S PATRIOTIC FUND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (continued)

5. STAFF COSTS AND NUMBERS

The average number of employees was nil (2023: nil). No remuneration was paid in either the current or prior period.

6. ANALYSIS OF CHARITABLE EXPENDITURE

Funded from unrestricted funds: Care after Combat Scotty’s Little Soldiers Forces Employment Charity The Ripple Pond High Ground Project	Year ended 31 December 2024 £’000 15 85 100 10 15 225	Year ended 31 December 2023 £’000 - 85 100 10 -
		195

7. QUOTED INVESTMENTS

Market value brought forward Net (sales) and purchases Net unrealised gain/(loss) for the year Net realised gain/(loss) for the year Movements on cash account Market value carried forward Market value brought forward Net (sales) and purchases Net unrealised gain/(loss) for the year Net realised gain/(loss) for the year Movements on cash account Market value carried forward	Equity £’000 3,707 122 358 - - 4,187 Equity £’000 3,488 (7) 210 16 - 3,707	2024 Property Cash £’000 £’000 425 50 (122) - 1 - (2) - - 4 302 54 2023 Property Cash £’000 £’000 454 38 - - (29) - - - - 12 425 50	Total £’000 4,182 - 359 (2) 4
			4,543
			Total £’000 3,980 (7) 181 16 12
			4,182

LLOYD’S PATRIOTIC FUND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (continued)

8. DEBTORS

Accrued income 9. CREDITORS Accruals	Year ended 31 December 2024 £’000 34 34 Year ended 31 December 2024 £’000 6 6	Year ended 31 December 2023 (as rested) £’000 51
		51
		Year ended 31 December 2023 £’000 6
		6

10. DISCLOSURE OF RELATED PARTY TRANSACTIONS & TRUSTEE REMUNERATION

The trustees receive no remuneration and no expenses were reimbursed within the financial period (2023 – none). Reasonable travel expenses for trustees were reimbursed from the Corporation of Lloyd’s.

There were no related party transactions in the year 2024.

11. FUNDING COMMITMENTS

LPF has also made a commitment to spend £30,000 on a grant to Care After Combat, payable over the next two years, and a commitment to spend £10,000 on a grant to The Ripple Pond, payable in 2025.

LLOYD’S PATRIOTIC FUND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (continued)

12. FUNDS

Founded in 1803 to assist the many casualties of the Napoleonic Wars, Lloyd’s Patriotic Fund is the oldest military charity of its kind and has been providing support to the Armed Forces Community on behalf of the Lloyd’s market for over 200 years.

General Fund (1803)

The Hugh Stewart McCorquodale Memorial Fund (1901)

A bequest of 1,000 guineas made by Lieutenant Hugh Stewart McCorquodale, killed during the South African War, where the use of income is at the discretion of trustees.

Edwin Hampson Mackintosh Fund (1916)

Charles Skey Fund (2013)

Janson Fund (1918) – now formally part of the general fund as of 28 January 2021

13. PRIOR PERIOD RESTATEMENT

A prior period adjustment has been made to rectify the recognition of fundraising income.

The overall impact of this adjustment is to increase fundraising income and debtors by £51,000 each. The net assets at the end of the year increased by £51,000. There was no impact on the opening balance sheet for the year ended 31 December 2023.

LLOYD’S PATRIOTIC FUND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (continued)

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

INCOME: Donations and legacies Investment income Total income EXPENDITURE: Investment management fees Charitable activities: Donations and grants payable Other expenses Total expenditure Net income / (expenditure) and net movement in funds Realised gain / (loss) on investments Unrealised gain / (loss) on investments Net gain / (loss) on investments NET MOVEMENT IN FUNDS Total funds brought forward Total funds carried forward	Unrestricted Funds Restricted Funds Endowment Funds General Fund (as restated) £’000 Mackintosh income £’000 Mackintosh Fund £’000 McCorquodale Fund £’000 Skey Fund £’000 370 - - - - 103 6 - 2 34 473 6 - 2 34 (14) (1) - (1) - (195) - - - - (3) - - - - (212) (1) - (1) - 261 5 - 1 34 12 - - - 4 96 - 6 2 77 108 - 6 2 81 369 5 6 3 115 2,707 21 135 50 1,272 3,076 26 141 53 1,387	Year ended 31 December 2023 Total (as restated) £’000 370 145
		515
		(16) (195) (3)
		(214)
		301 16 181
		197
		498 4,185
		4,683

LLOYD’S PATRIOTIC FUND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (continued)

15. ANALYSIS OF COMPARATIVE INFORMATION WITHIN THE BALANCE SHEET

INVESTMENTS At market value CURRENT ASSETS Debtors Cash at bank Total CURRENT LIABILITIES Creditors Total expenditure NET CURRENT ASSETS NET ASSETS FUNDS	Unrestricted Funds Restricted Funds Endowment Funds General Fund (as restated) £’000 Mackintosh income £’000 Mackintosh Fund £’000 McCorquodale Fund £’000 Skey Fund £’000 2,788 - 141 48 1,205 51 - - - - 243 26 - 5 182 294 26 - 5 182 (6) - - - - (6) - - - - 288 26 - 5 182 3,076 26 141 53 1,387 3,076 26 141 53 1,387	Year ended 31 December 2023 Total (as restated) £’000 4,182 51 456
		507
		(6)
		(6)
		501
		4,683

		4,683