The William Leech Foundation Limited - The Foundation Trust Trustee's report and financial statements for the year ended 31 March 2024 Registered Charity Number. 231673
The William Leech Foundation Limited- The Foundatlon Trust Trustee's report and financial statements for the year ended 31 March 2024 Contents Dittctors alld advisors for tb¢ year ended 31 March 2024.................................................................................. Report of the trjstee for the year ellded 31 March 2024...................................................................................... Ethical investment policy and practices................................................................................................................ Risk management statement........................................................................... . . .10 Independent auditors. rert to the tsith of The William I¢ Foulldatim Litnited. The Foundation Tn...................................................................._.................... .12 Statement of financial aciivities for the yw ended 31 March 2024...................................................................15 Balall¢e sh¢et &5 at 31 March 2024............................................. . .16 Statejnent of accounting wlicies........................................................................................................................17 Not¢s to th¢ fwaTh¢ial 5tsteinents for the year ended 31 March 2024.................................................................19
The William Leech Foundation Limited - The Foundation Trust Directors and advisors for the year ended 31 Mareb 2024 Trustet The William Leech Foulldation LI11¢d Dire£tors of the Ttvsttt CopanY Andrew Bro OBE FRICS {Chair) Alice Ambrose-Thumun FCA FCIS Paul Burye FCA Maureen Dixon Dagmar Dvorn& CFA IMC {appoiThted 27 Febnwy 2024) John HarrisoTJ ACA Michael Jown (appoxtkted 27 February 2024) John Marshati Philip P(x)le FCCA AD8ela Russell FCA CPA William Seddon CFA (S¢nior Director) JohD Siausfeld CED8 FI MarEST hltMechE Secretary aDd Registered Office Marcia Lallt FCA AMCT Bank Chambers 26 Mosley Streel Newc&stle uw)n Tyne NEI IDF ludepttydetht Auditors Azets Audit Smices Chartered ac¢owitants and statutory auditOTS Bulman House Regent Centre Newc&%tle u)n Tyne NE3 3LS Bankers Lloyds Bank plc 102 Grey Street Newcastle uwn Tyne NE99 ISL Solieitors Womble Bond Dickinson LLP The Spark. Dra)]naDS Way New¢astle Helix Newcastle upon Tle NE4 5DE InvestJDellt Managers Columbia Threadn¢edJe Management Ltd Exchange House 12 Primrose Street London, EC2A 2HS Stewart Investors Finsbury Circus House 15 Finsbury Circ$ LondoJL EC2M 7EB
The William Leech Foundation Limited - The Foundation Trust Report of the trustee for the year ended 31 March 2024 As trustee Th¢ William Leech Foundation Ltmid fthe tnLqtee- orbe Trustee Compan acomtAny incorpornted ill England and Wales, presents its report and audited financial statrments of The William Leech Foundation Limited - The Foundation TnLSI ("The FodatiOn Trusff or Yhe for tbe year ended 31 March 2024. The f]trn)¢ial statements have been preed in accordance with the Declaration of Trt the staiement of accounting p)licies set out on pages 17 to 18, tbe Charities Act2011 alldAccountingand Rep)rtittgbyChaTitie5'. StatementofRecommended Practice applicable to charities preparing their r]llancial staiemenL8 in accordance with the Ffftnancial ReportiDg Standard applicable ill the UK and Republic of Ireland (FRS 102) (effeatve l January 2019). Legal and thiDiStrative xnfi)nnatioll set out (KL page I fiKms part of this ryzL Structure? governgDce and management A Deelardtion of TTUSt dated 16 August 1960 (as atllendLuJ) by The vfilliam Iktth Foundation Lijnited established The Fouudation Tnt for the benefit of The British and Foreign Bi7)le Society, Church Mission Society, The M¢th(xlist Chwch in Britsin The Salvation Army and The Society for l¥oJnotillg ChristianKnowledge (collectively known as Ihe Five ChaTities?. The Trust w&s eIed by a gift from the latr Sir William tttch of slwes in bis building company, Wjlliatn Le¢¢h (Builder5) Limited. In 1976 the building CoMpY became a pub]ic c4)mpanywith its shares quoted on the London Stock Exchallge. and its name w&8 cballged to William I£ecb PLC. Approxitnat¢ly half of the %hares held by the Trllst were sold at that time &8 part of the flotation an2nge]nellts. In 1985 the remainitkg shares of Willialn Lecch PLC w¢r¢ sold on the tskeover ofthe CopanY by C. H. Beazer IHolding5) PLC. Under the Declaration of TnLsL Ihe income of the Foundati¢)n Tn is to be applied in equal shares for the ben¢fit of the Five Charities. The Tnjst does not actively fimdrai5e but seeks to support the WO of the Five Charities Ls detennined in tbe Tnt Deed througb th¢ car¢ful Stewa of the end0llellt fim(L DuTing th¢ financial year ended 31 March 2(M)8 the tnLgtre reviewed the investtnent Obj1]ve5 alld approved the proposal to manage the endowjnent fid on a totsl rern basis. This removes the constrdint of an in¢ome tsr8eÈ to allow the Invesm)ent Manager greater flexil)i]ity in the choice of investrnents and to incr¢ase the ¢xp05ur¢ to ¢quities. An application w&$ made to the Ch&ity Commission to allow th¢ u5¢ of th¢ tota] return strdtegy. On 16 May 21)08, the Cbarity conm111On produced a sealed Order agr¢¢ing io the challge. The Norninations and Retnuneration Comtnittee of the TnLStee Company h&8 continu&l to provide a fornMI. rigorous alld transparent pr(KeduTe for the appotntment of directors to the Membersbip consists of four directors, including the Chair, Senior Director two other dxrectots. The nteEnber5 should include at least one illdepelldent dirtOr and at least one director from the fe nominatrd by the Five Charities. The a]rrent members are Andrew Brown, Maureen Dixoo William Sethlon and John Stsnsfeld and all setvedthrouthout th¢ year. Lenrecnjittllg, theNominatiolls attdRemunerntioD Commilltt seeksioapFM)int individuals with thenecessary skills to make a SitiVe contrbutioll to tbe Bo&4 who are syrnpatheti¢ lo the Trustee Company's aitns and who can make a p)sitiYe impact OD its diveT5ity Under the Trustee Company's current articles of association, directors ate appointed for a term of three )'ears after which they retire ond etigible for re-appointmenL Directtws wbo have seTved more than 12 years are eligible for re-appointment for furthertern]s of olleye. The Board hagexpressed a preference theter ofdtrectors is litnited to Dine years unless there aTe exceptional circwnsthnce5. TlJe or1glj1 AIL%si¢XwSry rw). Iv 20J3 thepventw oJJLIISt*Cd streumlLrye tts wratsons Zk¢Jknsb¢¢pJ qJReThlediorvfvci ClATrwolbenefy.
The William Leech Foundation Limited - The Foundation Trust Report of the trustee for the year ended 31 Mareh 2024 (eoDtiDued) Having seryed for mor¢ than 12 year4 Andrew Brown w&$ reappointed for a fitrther e-year term of office at the Tntte Company's Annual Genernl Me¢ting on 17 Octobff 2023 in to continue his tenll of office as Chaw. Angela Russell resigned as a director of the TnLStee Company on 27 Februay 2024 and Dagmar Dvorak and Michael Joynson were appointed as dtrectots of the Trustee company on 27 F¢bnwy 2024. both of whojn bring investment expeTi¢llC¢ to th¢ Board. The Board considers that its ttbe[S have the necessary skills to Conduct its business effeKtively. New directOTS receive & letter of aPlthIent alld an induction pxk, whicb includes the articles of &wiation of th¢ Tnjstee copanY, a short bistory of the Tnjst and its structure. annual fujancial statements, Board Tninut¢s. terms of reference of the sulTrcotnmittee& latest finallcial for¢S, investment re[5 andally other documents ¢oJJsideredto be of irnportan¢¢. The duties of the Investtllent Committee e to review the investment objective4 &8set allocatio ethical investment policy and the forte of th¢ Investrnent Managers. It also makesree(Rn]nendations io tbe Board concerning the appolntment of the Investment MaDager and the estsblisljment of suitable bencl]marts. The Investment Co])llllTttee nornially mttis with th¢ Luv¢stment Managus at Iwtonee ayear. The currentmembers tAlldreW Browl Dagmar Dyorak, Jobn Harri50n, Michael jo)S0O Marcla Lant and William Se4kloL Philip Poole was also a member to 5 December 2023 and Angela Russell to 27 Febw 2024. Jobn Harrim w&5 apIllted to the Conllnittee on 5 December 225 and Dagmar Dyorak and Michael JoyL8on were also #P7ted to the Committee on 27 Febnwy 2024. The Board of tbe Tntstee CozllpaDy meets at quarterly intervals at which the directors receive reports from the InYesttDeut Collllllittee and the tnvestmeDt Manager. In additioo the Investmeni Managers makes a forn presentation to the inveslm¢nt Committee each fmancial year. The Board and Inyestment Committee consider inveslment managemenL r¢serYes. distnThution and risk management pilicies, and the f0mlance of the Investment Manager against a range of measures. The day.ttrday admIOll of the Ttust is delegated to the Director of Finance. The TSlee CornpaDy is a metnber of the Churcb Investor5 Group. This acts a5 a fonun to enable m¢mbers to share inforrnation and views on ethical, social re5P(TrDsibility and corp)rJt¢ gov¢rnaDce matters relating to investment. Directors. indenjnxry xtisurance been in place for the whole of the year eDdcd 31 March 2024 at a cost of £324 (2023 £471). Risk m2n2gement The Board of the Tntee Company has examined the principal areas of the TnLSt's operations and considerod the major risks in vdch of these areas. The Trusiee Company maintains adetsiled risk regIrwh1Cb is kept underregular review. The directors have identified the principal risks to the orgallisation being.. Investtnent risk$: MacTO-e¢onoTniC and maTket condilio Investment manager risk 2. Governance and key personnel risks 3. Fraud 4. Repulational Tisk. Consideration and rnanagement of these risk5 is a key dimellsioll of B(wd agend4 and pages 10 and I15UIDIllarise curteni risk mitigation strategies and &8sessment of risk profile. Follong the COVtD-19 pandemic, the Board resumed tneetÈng inpersoDbuth&scontinuedto use videocoDferencillg t¢chnology to some meetings, including Committee meetings.
The William Leech Foundation Limited - The Foundation Trust Report of the trustee for the year ended 31 March 2024 (CODtinued) The value of the investment wrtfolio ct]lles to b¢ by th¢ gefrpo]itical environment whi¢h Temains ¢hallengiag with the con¢illuing in UkThine and tensions ID the Middle FA8t and there is some concern about the impart of this on oil prices inllation. There are a150 the forth(y)miDg ¢ltctions in major markets including th¢ US and UK and the outlook therefore continu&% to r¢maiD uncertain. Vlhilst returns over the period as a whole were )SitiVe, the mcKwA of the markets fluCtstCd in resp)nse to emerging ecollomic llews. Equities ade a Strong stan in 2024 witb market sentiment supp)rted by the growing confidence among the world's leading e¢oDomies that iDterest rates, which Imd increased shary>ly b¢tw¢en late 2021 and mid- 2023. had peaked 2nd the expectation that central banks. next move would be to teg reducing rates. However. towards the endof March 2024, th¢ ¢ontinuedresilience inthe US economyand jobs markethas caused sojne concern with exp¢ctatiODS that borrowing costs would remain "higher for longerf. 1th rate cuts corning later and Tnore adually than PloUSlY anticIptiL Whether centrnl bat)ks follow througb on these ewted r*e cuts is IelY a key variable in investor sentiment and the sstainab11ty of tbe rally in equities in 2024. Th¢re is still a significant risk that equity prices could fall itmonetary l1¢Y shifts from that which the ets are ¢urreDtly assu]ning. Elsewhere, Cbina's econojny c¢)ntinues to Strgle, altbough it As envisaged thathigh quality, well managed ci)llLpatiies tberewiil continue to perforni well. US lechllolo Copaules, the &HalloJ"MagDifi¢ent r akn dominated maTkets over the yetr &8 Optimism around Arttficial Intelligence (-Af) led to iD¢reases in their share prices. The ColUbI& Threadneedle Responsil)le Global Equiry ftmdinparticularls undettperforniedinthiseDvifoDD]¢Dt due to its inabi]ity to hold rnatty of these 0¢k$ iti its ESG fimd as a result of its ethical scrttning criieria. The potential for further volatility in perfonnance remains an OD-going risk. The Board of the Tnte¢ Company's intention is to hold the inY¢stsnents for the longer tern] and as such to ride out peritx15 of volatiliry. The inyestrllent managers remain of the view that the long-terni operati(ml outlooks of the pirtfolio holding$ 8re g(M)d. In the opinion of the Board of the TTu¢t Cowpany, the Tnjst I$ establisbed resources and systems which, under nornial circumstances, should allow thes¢ Ti5ks to be mitigated to an acwtsble level in its day-to-day op¢rations. Objectives and aclivities The objective of the TnLSt is the advancenLent of the Chrilall religion and this 15 achieved by providing ftt¢la1 sllpport to tbe Five Charities selected &% beneficiaries by the fowider, the ]e Sir WilliaDJ LeeclL The Board of the Tntee Cornpany coDfiTmS that it has referred to the Charity Commission's general guidance o public benefji when reviewing the Trust's aims and objettives and is S&isfied thai the requirements have been m¢t. The Tn1 provides grdllts to the Five ChltieS, whose pllpose is the Advancetnent of the Christian religiorA, and the Board of the Tnjsttt Companv receives reports frotD the Five Cbarities. N'hicb detail their WO and the pllblic benefit arising therefrom. The Trust doe5 not have the Wer10 make grants other than to the Five Charitie5. Financial growth Set out below is a ststrment showing the growth of the ¢ndoMryuent fid Sin its clon iti 1960: Value of original gift of shares in William Leh IBuilders) Limited on 16 August 1960 Value of the endolellt fund at 31 Marcb 2024 159.250 51.201.815
The William Leech Foundation Limited - The Foundation Trust Report of the trustee for the year ended 31 Mareh 2024 {CODtiDu¢d) Financial review and investment policy Following approval by the Charity commissio the TnLSt's investtnent strategy is a totsl T¢ts]rn approach to the inveslment of the pennanent endowm¢nL The trustee belt¢Yes that the investment objectives Sh{Id over the l¢)ng kn enable the [nvestellt Managers to produce greater inVestent rettllns and so in thi¢ wur5e this sbould lead to greater disknl)utions to the beneficiles. In accordance with the tern of the Order. the trustee conthins that iti identifying the value of the ptirtiort of the perllt endowment that rqrnted unapplied total rettry it has idelltified the value of the initial fouDdillggift in 1960. and when detertllining the amount of ww)plied totsl reDml IO trall5fer to income the IrusÉe¢ ha5 considered the amount of incoTner¢qlliredtomaintain the currentlevel of support fortheFive Charities and the I¢[yetdS of future beneficiaries" aDd when reaching the decision as the UDapplied iotal return to transfer to in¢ome, the trustee h&s taken professional advic¢ from the Investment Managers Wing the rnarket outlooK invest]neDt trends and yi¢ld d the prospects for tre capital growttFL BMO Global Assd Manageent {'BMO') was appointed in Sept¢mber 2017 the investment portfolio of th¢ Trust. BMO itivtsts on a djs¢r¢tiOTY basis, subject to the con5tTrints of th¢ approved etbical investsnent policy (see poge 9)- In July 2019 the TnLSt trallsfed its inyestsnents into a Private SulFFut>d ('lieserved Altrrnative IDv¢stment Fund, or'RAIF'), which w&8 Iwated by BMO under its umbrella fulld- BMO Itkvestments ILUX) Il FCP-RAIF aDd based ill Luxembourg for admiDistrthve reawDs. There were no thalltsge5 to the TnLSt arising from the location of the RAtF. PrioTto the transfer the TTUSt. for adtninistrative reasons, w&$ litnited to three fimds on the BMO plarfortn. The RAtF investsnent plror allowed the Trust io add furtber fi]Dd% to the illvesttllent p)rtfolio. including funds Dot managed by BMO, which gave great¢r diversity and tbe opportullity to iDcre&* the total return. The Trnst's sister charity- The William Leech Foundation Limit¢d- The Clwity TnLSt-W&5 a]50 illvested tti the RAIF. In April 2020 the Tnlee coMY took the deciston to invest on a global basi& constrained only by th¢ need to ijvest line tbe approved ethical investsneni litY. The holdings in the RAIF were the BMO Responsible Global Equities Fund and the BMO ResnSi7)le Strrling CorEx)ratr Bond Fund. Both fid5 are open-ended investment cotllpallies. BMO h&5 discretioD th vary the allocation to each filnd within pre-agreed limits. The Trnstee Company's reviewed the asset allotion of the Tn duriDg 2021r22 agreed tbat the predominant exposure to equities remained appropriate although som¢ additional diVersifitiOn of fi]nd5 would be ljenefieial in rel&ion to emerging maets. ConsequeDtty. in June 2022, funds were also invested via the RAIF iti the First Sentierlstewart Investors Asia Pacific Leader5 Sustaithility Fun(L OD 4 July 2022, following the merger of BMO and Colutnbia Threadneedle: BMO was rebrdnded as Columbia Threadneedle InvesttDents and the llae of the Investment Mallager of the RAIF was changed to G)lumbia Threadnt£dle Asset Managernent Ltd. The BMO holdings in the RAtF weTf also rebranded as the Columbia Threadneedle Responsibl¢ Global Equities Fund and the Columbia Threadneedle RewnsiTrJle Sterling Bond Fund. All of the fi]nds held are open-ended iDvesttnent companies. Under the RAtF Columbia Threadneedle had dIs¢tIon to vary the allocation between its global equity aDd steiling bond fijnds Hithin pre-agreed limits only. On 5 September 2023 all of the unit holdings in the Colutllbia Threathteedle RAIF were Te-regi5tered into the names of the Foundation Tn1 and Charity Tn so the unli in th¢ underlying fvnds aT¢nOW helddirectly by the two chariiies d not by the RAtF Domtnee. Units are now held dired]y by each ¢lwity in the Columbia Threadlleedle Responsible Global Equity Fun& the Columbia Threadneedle Re5poDsiTrJl¢ Si¢rliugCoTporateBondFund andthe Stewart Ittvestors Asia Pacific Leaders Sustsinability Fun
The William Leech Foundation Limited - The Foundation Trust Report of the trustee for the year ended 31 Mareh 2024 (eontinued) Since Augllst 2019 and up until 5 S¢ptemkn 2023, th¢ dIsutiOnS to the Five Clwiti¢s W¢Fe fi]nded by realisillg units in the RAIF and from 5 September2023 by realisingwitts from the Columbia Thread¢e R¢sp¢)Dsible Global Equity Fun(L No income is received and the Funds ac¢umulate their dividends and do not pay out any cash. Any dividends LSing in the Funds will be reflected ID their Det assei valuek Fees payable lo Columbia ThreadDede and Stewart Investors for managiD8 the investments are charged against the Funds. The Investtllent MaDagers re to the TTus¢ee Compally at quarterly gnd annual Antetvals. These re)rtS include economi¢ and market reviews, tra[action detsils and Fknfolio valuations. The Ttust's WO is entlrely d¢wideni on the inv&4ttneDt r¢turns from the ¢Dth)wm¢nt fi]nd and th¢ F¢rfoEmance of the investtnents An the portfolio during the financial yedr is reponed below. The global stock markets have ¢ontuJued to be itllpacted by geolItICal unceixw; the war intJkThin¢ sbows no Si of abating andthe Middl¢ East is anew concern with the potential for further escalation and threats to supply chain5 giv¢n the contiDUiDg disruption to the Red Sea shippTng routes. Markets over the course of the financial year ]Jav¢ ¢oped with the ilDpt of itfflation and higher interest rat¢5 as centraI banks have attepted to bring thetr economie5 under control. There are &xp¢thtions that interest rdtes will be CUL most IelY in the second half of 2024 and that intlation will fall although any such fall may b¢ impa¢ted if the confiict iti tbe Red Sea continues for a significant peri(wJ of time. On top of this there are the challenges to the global economy of climate change and artificial intelligence to b¢ managed This all create5 all extremety volatile backdrop for investtnent perfoTtnanc¢. The markets aretherefore expected to remain volatile in the short tenn althougb the investment Inaler5 believe the l¢)ng-term operational ot](x)kS ofthe Ex)rtfolio an g(K)d and they contlnue to focus on higber quality, suslaillable growth compatiies which they believe can prosper in spite of tllarket volatility. The total return in the year ended 31 March 2024 15.IV/.. The trL&ee transfe¥red a tota] of £1,662,722 fr1)m the unapplied return of the end0ent fi]nd to the U[sl¢ted fim(L The net result of th¢s¢ fa¢tOT5 is thatthe endowillent nd incrtrdsed in value from £45,934,1 to £51201,815. Following the challge to a total return approach to iDveslJnenL the bStee reviewed the Ttst'S distr]l)ution po]icy. Th¢ tle¢.5 objective was to establish a policy that will provide sustaillable and contitillitig f]nallcial support to the Five Ctwitie5. In YlY 2011, after taking professional adYAce and account tsf the 1ollg-ter Dature of the endow]nent nil the trustee established a new p)licy that came into effect oll l April 2012. Di5tnTr>utiOll5 are set at 40/0 of the rolling five-year average of the Tnjst's net asset value. The trustee rewises that iJJ establishing the level of distribution it has a duty of fairn towards both pselll and fiJDJre beneficiart¢s- the prujciple of inter-gen¢rdtional equity. Distributions to tbe Fiye Charities iti the financial year amounted to £1,648,020 (2023: £1,530,0(K)). The risk proffle of tbe inv¢stmenl portfolio 15 medium to high. The Tnl is a long-tern inyestor and the tsustee, on professional advice, remains of the view that a portfolio weight1 towards quities remains appropriate. The total return on the portfolio is measured against the Retsil Prices illd¢x ('RPI') and a weighted b¢n¢hmatk reflecting the neutrdl asset all(lOll. During the year ended 31 March 2021 the benchmark was adjusted to reflect the staged disSaI of the UK fijnd and & 31 March2022 the benchllEaFk cornprised900/0 MSCI World Index and I/0 iBoxx Non-Gilts Index. Follow]ng the inVestent in the Stewart Investors Asia Pacific Leaders Sllstainability Fund, the benChrn* for the RAIF was amended io the MSCI World Index aDd Columbia Threadneedl¢, a5 investtnent anager. was able to deviate fro]n the bencbmatl( in terms of asset All(1n b¢tween its ResPQn5ible Global Equiry Fund and its Responsible Sterling Bond Fund by no more than +l- I/0 according to theiT view of market conditions but excluding the Stewart Investots Asia Pacific Leaders Sustaillability Fund. Any allocation to the Stewart Investors Asia Pacific Leaders Sustsinability Fund was excluded froTn this benchtllaTk and its cornparable p¢rformanc£. The Stewart tnves10rs Asia Pacific Leaders Sustainabiliry Fund was it]tluded the valuation of the totsl portfolio but its perfomiallce was assessed againsÈ the comparable index as prOdedbY Steivart IDve5tor5. Following the transfer out of the RAIF on 5 September 2023 no asset all(ution 15 undertaken b). Colurnbia Threadneedle.
The William Leech Foundation Limited - The Foundation Trust Report of the trustee for the year ended 31 March 2024 (eoDtinued) Achievements and perf0rn12nee Inyestments In theyearended 31 Marth2ff24 the retumofthe Columbia Threathteedl¢Responsible Equity Fundw&5 15.701owhjch wa5 below the benchtDaTk (MSCI World) refr of 23.IOA. The Coh]mbia ThTe&Jneedle Respollsi171e Sterling Bond Fund's return wLg 6.50/0 which was above the benclmiaTk (iBoLX Non-Gilts all maturities) of 6.1 /0 ad the Stewart lllvestors Asia Pacific Leaders SStainabl11ty Fund's rettEu was 4.6(/o which w'as alx)ve the benchmark (MSCI AC Asia Pa¢ific ex Japall) return of 3.0/0. In the financxal year RPI and tbe Consumer Prices Index ('CPI') rtrse by 4JOA and 3.8Vo r•ivety. Over the five-year pert(Kl to 31 m¢ 2024, the cuulative return of the Cohmibia Threadneedle R¢sponsible Equity Fund was 72290/0 Compared to its benchTnat retsm) of 86.95•/0," the cutDulative rebjrn ofthe Columbia Threadneedle ResponsIThle Sterling Bond Fund over 5 years was-3.45Q/ts (the compar&ive benchDwk cwnulative totsl retsmi over this period isnot available). Over tbe same period RPI alld CPI r(trse by 34.34/• and 22.99O/• respectively. The Stewart Investors Asia Pacific Leaders Sustaiuknility fund IH8 rebjrned 5.IYthsince investent in J¢ 2022 agai the fimd'5 own benclllnark rebjm of 2.60/0. At 31 March 2024 the portfolio was valued at £51.191583 and the asset all(¢ation of the Tnjst was 9120/0 cr Responsible Global Equity FuniL 1.5(/o CT Responsible Sterling Bond Fund ond 7.3010 Stewart knvestors Asia lfie Leaders Sustaitthility Fund. Reserves policy At 31 March 2024 the balance in the uttrestricted fimd was £7,274 (2023: £7,274). This Eo]anc¢ wa5 used to fi]nd part of the distrl)utioll to the Five Clwities iti April 2023. The p)licy is not io bold significant Sums in the unrestricted fim¢L 50 maxiJnising the 80vt in the endowment fimd that cats be itivee& The Inveslment Managers are infomied of the amount to b¢ transferred frotD the un4)plied total reDJm element of the endOTrent fid at the start of each financial yeor. WithdTawa]s are spread evenly over tbe fiuallcial year to (d the montbiy distributions. This policy is reviewed aDnually. Plans for future periods As noied above. on 16 May 2008 the investment objectives were cbanged io allow the use of a total return strdtegy. The directors believe that the totsl Teturn investtnent objectives sbould enable the Investr)ent Manager5 to produce ater investment returns and so in due Course this should lead to grea distributions to the beneficiari¢$. The directors of the Trustee Company have aced that the distnbutiOIiS to theFive Clwities ill the year ending 31 March 2025 will amount to £1.734.000 (2024: £1,648,020). The Trustee Company reviewed the distribution policy in Febrnary 2024 and concluded that it reD]ained appropriate. The next fornial review ill take place in the year ¢Dding 31 NIarch 2027. The Trustee Cojnpany expects the geopolitical landscap¢ to Tell1 CIlenging in tbe short teJrn to ediuM tenn, with the on-going war iti Ukraine and concerns about firther ¢slati{ in the Middle East alollg with elections bappeDing across major ecollon)ies in 2024,r25. The Board of the Tn¢¢ Company will continue to monitor iDvesttnent t*rforniance closely taking into account thks elev¢d risk profile. The Trust's distnblltion policy should dalupen the itnpact of volatiliry on the distributions to th¢ Five Charities 2nd with a diversified portfolio, the Trust sILould be well-placed to provide increasryj SUPFth to the b¢n¢ficiaries in the future. The current Ethiea] Investment jlicy aTLd PTactices ststement can be found on page 9.
The William Leech Foundation Limited - The Foundation Trust Report of the trustee for the year ended 31 Mareh 2024 (colltinued) Statement of trustee's responsibilities The trustee is rwTrnsil)le for prepari a report of the tn and fiDancial statements in acconknce with applicable law and regulations. Under that law the tntee has prepaTed the financial ststements in aLrordall¢e with unli Kitigdom Genernlly Accepted Accounting PraCticelUnitedKillgdomAccouDttgstandards aDdapplithle law).Un(lertlkt IaWthetnee must not approve the fillanciat statements unle&s it is Satisfied that they give a true alld fair view of the state of the affairs of the Trnst and of the incomingresourcesand applirntion of res0w50Fth¢ Tru51 forthatperiod. In preparing these financial statement% the ttee 15 required to: select suitable accowiting wlicies and then appty them coDsistentty' observe the methods and principles in the applicable Clwitie5 SORF. ake judgements and eiateS thai are reasonable and prudent" stste wbether FRS 102 "The Financial Rep)rting Stsndard applicable in the UK and Republic of frelaDd" has been followe subject lo aDy material departures disclosed and explained in the fjnajicial statenients" Prepare th¢ finan¢ialstatements on thegoing ¢oJemblSjs it is iti4)propriat¢ toprtsume thatthe Trll5t will continu¢ in business. The trustee is res571 )le for keepillg proper accounting records tbat disclose with reasotthle accuracy at any time the financial position of the Trust and ¢nable th¢ tTUStee io ensure the fll)ancial statemellts comply with the Charities Aci 2011, the applicable Charity (Accounts and Rerts) Regulations and the provisions of the Trust Deed. Th¢ trnstee is also r¢sponsible for safeguarding the assets of the T11 and hence for tsking reasonable steps for the pVention and detrction of fraud and other iTreguIarities. Appointment of auditors Azets Audit Seryices have indicated their willingness to stand forreapp)iDtment at the forthcornillg Annual General Meeting. A resolution for the re-appointment of A7£ts Audit Servieas as auditors of the Trust is to be proposed at the fortbcoming Annual General Meeting. The Trustee wishes to pui on record its thanks to Marcia Iant's and Lilldsey Nicholls foT th¢iT SUPPOrt which has enabled their wot* fftn SUPWTrn of the Five ChaTities. Approved by the trust¢¢ and sign¢d on its bEba]f by: LJ.l.SecOcQ Andrew Brown Dire¢tor Dtreuor . 2024
The William Leech Foundation Limited - The Foundation Trust Ethieal investment policy and practices for The Foundation Trust (as approved by the trustee on 7 February 2023) Our poli¢y is to invest in a manner coDsi5tent with the promotion of the objects and FYllTrciples of the Five Charities. We aim to strike a ba]ance beh¥eeD investing in way5 lake account of Christian prxnciples and ethical considerations alld securing strong fillancial returns for the Five Charities over the long tern. li is our opinion that iD the long terni an ethical investment policy along tbe lines set out belom. is unlikely to be of significattt detriment to rdtes of inVestmentretn. Wehave Prepared this lIcY in c(yngJltstion with the Five Charities but recogllise that this policy is ultttnatety th¢ resp)nsibility of the dirtttrKs. Our policy tskes into account the Church of Eugland Ethical InvestWqht Adviwry Group (EJAG)'s Siatement of Ethica] Lnvestmeni Policy in the selection of our investments. We believe that this guidallce broad]y reflxts the Christian ethical perspectives of the Five Charities and that it is belpfid io drdw upon EtAG's expertise in sucb matt&5. Th¢ EJAG guidelines are also readily available to our YesttD¢ut Managers andwill th¢Tefore be abelpfvl andclearp)int of reference forthem. Reco1&1ngthat we should not bind ourselves absolutely to th¢ views of an external b, we will review EIAG guidance on a regular basis to 8sse55 how far it rematns appropTiat¢ loru4 particularty as major new areas ofexcI%llrn are brougbt in or as extsting restrictions are reconsidere4L EX1]Se in Environmental Social and Governance investment issue5 is one of the crÈteTia we use to 5¢1¢ct our Investment Managers" we will also consider the ethica] credentials of the Investment Managers themselves in making tbat appointment. Througb our membership of tbe Chllh Investors Group, we will shate our perCtiVeS other Ie.m]llded investors and together will aim to encourage compaDies to perforni in an ethical and re%nsible rnaDner. Casb investtnents When makillg cash deposits wewill notse ally bank5 in wb05e shares EIAG would re¢0mtndw¢ shouldnot invest. Collective investments The portfolios of The Foundation TnL8L The Clthrity Tn the Wdliam 1ch Rese4r¢h Fund and William Le¢¢h (Investments) Ltd axe invested iti collective investtnent fitnds. The ethical investsnent w>li¢ies adopted by these fi]nds broad]y c4)mply with EG guideline5. We will continu¢ to liaise with the nwer5 of th¢se fimds and mODltor aDy changes in their ethical investment policies. There 111 be times when Tt is prudent to hold other collective investments in order to access less liquid parts of the markets and acbieve adequate diversification within our tKTrrtfolio, for ex8Jnple to invest in smaller companies or compallies listed in less developed countries. We rec0glll, however, thatthere ate particul challenges in reetting the ethical credelltials of all the comky)neDt parts of some collective iDvestmeDts. We will tberefore review regularly the rationale foT such investments and the axteni to which they rnay anclllde holdillgs tbat would nO[allY be excluded by EIAG guidelines. We also liaise with investment manag¢TS over their boldings and will ttlonitor tbe itnplementatioll of their po]icy. Monitoring and reyiew We will monitor our adheTen¢¢ to these principles and the fllmllcial itllpact of this ethical investment policy annually. If ihe fmdings of our periodic review show a significani detritDelltal itDpact that is expected to persist in tbe long tenn, then we will discuss the Five Charities whether or lloi the polio. should be amended. Jn additio if the Board decAdes to change its iDvestTnent approach and return io a directly held investments. this lleY will be reviewed and updated accordillgty. We will formally reviem. this wlicy &8 a whole every three years. More information about EIAG #lld its policies m3) be found at: htt .11ThV.¢llrfh0fe land.
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The William Leech Foundation Limited - The Foundation Trust Risk management statement The TTU5t¢e Company's approach to the management of risk is designed to enable the Board to proactiY¢ty idajtify and manage risks to support the achievement of the TTSt.5 objective& The Board is r¢sponsible for ensuring that adequate systems of rlsk management ar¢ in place that it bas a con5i5t¢nt apFElite for risk and that the level of risk is comJnet]surats with achievement of its objectives. A k¢y part of th¢ proces5 is the maiDt¢nance of a ddailed Risk Register, wbich 15 reviewed regu]arty with any sigrnifi¢aDt thonge5 beillg reported to the Th¢ Boatd h&8 identified a ttumber of key risks and are set out below together with an explaDati(n of its Tnitigati¢)n Strategies and assessment of Tisk. KEY IUSK AREA I. IDvestment risks MITIGATION STRATEGIES al TatTotoOlr and rk¢t tottditiott$ {in¢luding eballge interest rate and flationr]sks) coutd rcduce our ability to (kliver ]ong- tern real 8[0rtb of itic0C to our bcneficiarie5. Although we will aiTrvay5 berKmI to short-t4Th volatility. we b& distrtbutiors on our rolling fjTrt-Y avw nct &5S¢t V81u4 whi¢h helps to Stn4y)th the impaa of short-iemi mtte( fluctuations Our iDvcsbllthts are beld ill w¢ll4lÉver51fid fll which comprise glob21 equitiffj attd SrI]llg ndS kn spread risk. The Board consider5 that a gJ(thJlydivcrstfitd rtfoliO agoodhalge agaillst the J]]atroeconofflicand As a long-iam TtLve5tor we (on5CiOU5ty hold a high weigbting towards equiti&% 0$ we FKlieTre thi5 offers the Fst pros[ts of protecting o endowmetst against innation aud deliveriDg rcal groTrth overthe long ierrn. Most of our investsettts call be liquidated easily in the short l¢rn4 ¢llabling usto Stain 5hort.ierm distrilxrtw)tts evell when inter¢5t ordividcnd ratesare low. W¢ do noi n[rrrY risk because we lieve the costs of doiDg so outweigh the bthefit% givell (MIT liquidity long-trnn perspective. lft LIkrW ld themiddle Ea with reduthg b5/111 high hits£50llrfon%QIg8e1l1clU¢trUUY. Becouse income io benef wt beliéve wt ore in a 8oodposition lo ride short-/em1Jl#ci0 tcowinuc lde$ ndlions. These{bro1/andSCfipe is ewaed choUe#glfv8 In ihe shorl r¢ wknh hoppeniog across Mior ec&noMof in 2024/25. The ¢lsiselebediiskprnfi b) Investment Manager risk und¢rp¢rfOTTrct by manager could dure th¢ Telurns we are able io deliver. M¢eting5 are b¢ld with ]JJanagers io Thotlilor their or[Dance. W¢compare themaDagers' ptrforrtthttttwiLrt external 1)chkStO help bold tbelll to rnL Our policy is to cary out reEul8r re-tend¢riug exercises for investttlent FtslloThiDg Porttolio ET¥alll Limi.$ deci5ioTL to clo it5 business. In2[]eS weTe 0PP)inted u) CfjniiDue w prode an indertndent measure of Invement Teturns the Fisk ing ruD and the level of aCtie managemenL This &SSiSLS iti assessing whether. our ntO1105 meti their objeLtive5' the fimds are being maDa8ed as ewte4L" ad wh&ther we tsave efficiettt ]nix of managa5. nwi4ger since bi Septsmbtr 21117 wlisfoclory hiid up unril 2022llS eeded the bthchm&rk H¢NÉvÉr iherÈ htsvé been slgnificani eljollenges w perfornwnce In IxTrrk Ittgr Jettr ihe io
The William Leech Foundation Limited - The Foundation Trust hTY RISK AREA MITIGATION STRATEGIES perfornronc¢ ho5 beén seen w the last quarter of 202AQ4fvm ctplUn10 Threothel IftvttyoF5 h4ve perforn well since the irtili In June 2021 lRveJtr•W conlinMe5 lo 2. Goverll4uce key persoJJntl Aptrf>iDtin8 six indepaLd¢nt diT#T$ allows swific skills to be reouited bere these 8rt Tt alre p]ac¢ through our five ctwity.notnmatyJ A5 a sall organilOn we have a higbtr avuage depe on two memb¢rs of staff. alld rely haviDg $ll1¢)ent spe¢iaJisl on our Boar AD anDu&l B(th sdf-asscssn¢ut process ts&es place to monitor the quality of owgovernattce. Careful of PTrfedurts and reLords has been set up lo ellable new atriwJvisers th pick up iDfornJation quickly shw]d ourststTleave orbe its 4prowiqle The rhé BOordInprÉl{SYéts hwe Ihcrth¥edits &ver5iry. lvhi1sitherew beo r08 th ihelo55 we h4ve good ¢¥ity meusures in p14 Adth"ll0n inpestintRI $killT were udded io the Board of ihe fFusrÉe Coryuny in Febniory 20tTINCr£lEits twrti%e in ih&% 3. Fraud We need to b¢ vigilant atrf>ut the risks or tttternai andLxt¢TnaJ fTHud illlpacung our opeJ3tioni and ¢1]¢ our fitnds are used fortheirprow clwitsble ptUFrf>5eS. Two si1¢5 are required for all cheques iti exce of £l,(W. On-line Auth0T]5 siwry li are held by the itivement martagas with nvo Extem8] wdilor5 aJc required to look out f0rpotettti m&eriai inryularities and have di1 8£¢f&S to the Chair well &$ repotij specifjcaily on this area thy. Weplace relianceon the 5yans and intrnlai auditopmtionsof 0Bank¢r5 atld luvesent Managtss & rguJ4ted iK)di. We review the anfiuat final 5tst¢JJrrfs of our bencfiaarie5 to en5UTC they TrtIll to Use our fijnts for8PPWPtikte ¢harttable purpo%& theprudie41 collslraints of o smau oryon1sio ve ieve we hove i&ken ull rOale SI$ 4. Replltational risk William Leech itself L5 8 relatively low- profile organisatits bth our policies and behaviours cOd imwt on the rep31[0 orth¢ Five ChaTiti¢s a5 b¢n¢fiCI]e5. We have aTLd implemented ethits] investmettt l1¢Y iti eonsultstion the Five Charities atld aim u> follow the recommendation5 of the Cburch of Eugjand's Elh]"ca] Inv¢stt]Kni Advisory Group (EIAGI. We ujaintainhighprofessionai StsJJdardsiD ourtwidlllLgof r¢lati005hipswith professiona] advise knesFwwM.. Glvén wefollow elkFcoI guidellfies estdltshed ty Ihe E14G. we consth it unllkefy the Leech benelaclions would be the of #dvetst publicity - t711hough pressmré Eroups rnr$htwqnlHs IMvÉstr&Fs i¢pqdoptSlTongerpoUd spedjlctré Thé latyfornwl roryew of the Eihlcol Investh¥vl Ihe Trnstee ithA plqce on 7 Febrnary 2023. Tke Pojtsey ts also reviewedthyntsdlj. the Comnthee ortd Bld io ejtsure iiremfjinspio dots The nLulonJwlreview ofthepoliq wlUMkepluttln IhefJnwicial)eAreRthn83J 202
The William Leech Foundation Limited - The Foundation Trust Independent auditors, report to the trustee of The William Leech Foundation Limited - The Foundation Trust OplDfion W¢ have audited the financial statemellts of The William Leech Foundation Limited- The Foundatton Tnt (the 'charityJ forthe Ye ended 31 March 2024, which romprise the Statanelli of Financial Activities, Balance Sheet and Notes to the Financial Statements. irncluding a sutnmary of significant cOun11ng policies. The fll)ancial reporting framework that has been applied in their prepaTatiQD 15 United Kitigdorn Accounting comprising Charities SORP- FRS 102 The Financial Rep)rttU8 StaDdard applicable in the UK and Republic of Ireland and applicabl¢ law (United King¢kni Gellern]ty Accepted AccouDttng Practice). Jn our opinion the financial ststements: give a true and fair view of the state of th¢ ¢hariWs affairs as * 31 March 2024 and of its incoming resources and applicalion of resowces, illcluding its iD¢ome and expenditsjre f£ the year then ended. have been prowty prepaTed in accordance with United KiDgdom G¢neraity Accepted AOUnting Practitt. have beett prq)ared in cordanCe with the requireJDellts of the Charities Act 2011. Bas Ior OPilliOD We conducted our audit in accordance with [l¢MatIonal Standards on Auditing (UK) USAS (UK)) and applicable law. Our responsibilities under those Yandards are fiwther descnl)ed in the Auditor's reswknsli )iliiies for tbe audit of the financial statements section of our rewrt. W¢ are independent of tbe clwity in accordallce the ethical requirements that are relevant to our Huditofthe financia] stsiements iti the UK iticludillgthe FRC'S Ethical St2ndard. and we have fijlfdled our other ethkcal responsibiltties in accordance these TequiretneDts. We believe that the audit evidence we have (Trbtsined is sufficient artd appropriate to provide a basis for our opinion. CotEelusioDS relating to going nttfD auditiDg tbe falICIal statements. we have concluded that the trus*e's w of the going Concern basis of accounting in the preparation of th¢ fu)C1a[ statements is awropriate. Based on tbe work we have wfonDed, we Ilave not identified any material ullcertsitities relating to events OT conditions thal individually OT ¢oll¢ctive]y, Tnay ¢&5t significant doubt on the dwiry's ability to colltinue &8 a going concern for aperiod of at least tw¢lv¢ Tllonths from when the original fjnaticial staiements were allthoTised for issue. Our responsiThilities and the rwthilities of the tswstees with re¢t to going concern are described in the relevant sections of this reF. Other information The tNsiee is responSile for tbe other itiforniation. The Ot1 information wmprise5 the infornation ijkcluded in the annual repott other than the f]nancial statemellts aud our auditor'5 r¢rort thereon. Our opinton on the fJnan¢ial slatements does not cover the other InforntiOn aD4 except to the extent otherwise explicitty ststrd in our reprt we do not express any forni of &8surance concl81 thereo In COneCtiOn witb our audit of th¢ f4ClaI statements. our responsibiliry is io read the otber illforniaiion all in doing so, consider wbether the other inforniation is materialty illconsi5tent M'ith the fiDallcial statellLellts or our l(nowledge obtained the audit or oth¢rF4'iSe appears to be materially misstaied. If we identify such rnaterial inconsistencies or apparent material misslatements. we are required 10 detrTmine whether there is a rnaterial misstatement in tbe f]nallcial 5tateTnents or a material misstatement of the othLY infonnation. If, b&sed on the work we have fornIc¢1 we conclude that th¢re is a material misstatement of this other inf0mtio we are reqired to report that fact. 12
The William Leech Foundation Limited - The Foundation Trust Independent auditors, report to the trustee of The William Leech Foundation Limited - The Foundation Trust (eontillued) We have notbing to report in this rega Matters on which we are required to rtport by exc¢ption In the ligbt of ourknowledge and ull(lerstandillg of the charity and its environtnent obtsined in the course of the 8udil we have not identified material Mi&stateeDts JD the Ttee.$ Rqx) We have nothing io report in respect of the following matt¢rs where the awities Act 2011 rwuire5 US to report to you if, in our opinion: adequate accounting records have noi been k¢pL or rettuns adLry4uate for our audit have not received frotll branches not visited by . or the fEcIal statrments are not in awent with tbe accounttDg rec( and retums" or certain dtsclosures of trustee's remuneration speclfied by law are not made; or we have not r¢¢eived all the inforniation and explallati¢)Ds we require for our AudiL Responsibilities of trustee A5 explained more fully in the Ststemellt of Tntstee's RespoDsiThiliti¢s (syl out on page 8), the trustee is responsible for the preparation of the fmanciai statemellts alld for being satisfied that they give a trlle aDd fair view, altd for such internal control &8 the tnjstee detertDilles ts llecew to enabl¢ the preparation of financial statements that are free from nterial Jnissiatemen¢ whether due to fraud OT eTfoT. ]n prepIllg the fmancial ststejnenty the trtte is reSp(l1)le for&wssiDgthe chariW5 ability to contillue as a going concern, disclosing, & applicable, matters related to going concern aT)d using the going concern basis of accounting unless the tsusttt either intends to liquidate the cljtirity or to ¢Ce operations. or have no reali51ic alternative but to do so. Auditor's respollsibilities for the #lldit of the fiDaDeial ststemeDts Our objectives are to obtain reasonable as5Utance about whether the financial statements as a whole e free from material miss¢atemenL whether (tue to fraud or error. and to issue an audiior's report tbat includes our opinion. Reasonable assurance is a higb level of assurance. but is not a guarantee ttRt all audit conducted in accordance with ISAS (UK) Thill always deteci a material misstatement when it exists. MisSements can arise from fraud or etror and are considered material if. individualty or in the aggregate. they could re&wnabty be expectrd th influence tbe economic decisions of uSS taken on the basis of these flnancial statement& Irregularitie5, includiDg frau(L are iDsÈallces of noD-complÈance with law5 and regulati¢)ns. We design procedures in 1C witb our responsibilities, outlined above, to detect tllaterial rni$5tatements in r¢spe¢t of trregulariiies, tncluding frauiL The extent to which our PToC¢the5 are rapabl¢ of deltillg I¢gurIties. including fraud is detailed below.. Enquiries with manageAnen¢ about any kno1] or swted Instances of non-compliallce with laws and regulations amd fraud. Reviewing boardminutes" Challenging assumptions and judg¢TneDts made by management in their significant accounting ¢stimate5' and Alldit1g the risk of Tnanagement oveTride of Contro including through testing journal entries and oth¢r adju5ttneDts for appropriateDess. BeCae of the field in Mbich the client operates, we identified the folloNTring ar as those rnost likely to have a Mala] impact on the financial ststements: Health and Safety" attti-bTi and COTruptioll,' alld cornplÈance M'ith the UK Charities ACL 13
The William Leech Foundation Llmited - The Foundation Trust Independent auditors, report to the trustee of The William Leech FouDdation Limited - The Foundation Trust (contiDlled) Owing to the iDherent limitst1th of an audi4 there is an unavoidable risk that some material misstatements in the financial statements may not detectr4 even though the Audit is properly plannal alldwfomied in accordaD¢e with the ISAS (UK). For instance, the further removed non-compliaDte is frorn the events and ttansactions reflect io the fjnancial statements, the less likety the audiior is to become aware of it or to recognise the DOn-P[lance. A fiutber description of our respoD5ibiiittes for the audii of the fllwicial statetnents is located on the Fitian¢iai RertIng Council's website www.frc.0wuklauditlxmp)nl)I1lties. This description forn part of our ttuditorfs Use of our report This report 1$ ade sol¢ly to the cknity tsILStee in accordattce with section 144 of the Cbarities Act 2011 and regulations ade under section 154 of that ACL Our wot* I l)een undthtsken so that we migbt state lo the tsljstee those matters we are r¢quired to stste to the tsStee An an aUdIr$. rqxKt a]hd for noother PUTP)se. To tbe fvl1estent pern)itted by law, we do not accepi or reSnS)IlLry to anyone other than the charity and its tnte¢ for our audit work, forthis reFKTr¢ or for the opinions we have forni SimoJL Brown BA ACA DChA {Sentor Statutory Alldit) For and OJL behalf of Azets Audit SeThAces Chartered Accountants Statutory Auditor BuIman House Regent Centre Gosfortb Newcastl¢ upon Tyne NE3 3LS 7/912 Azets Audit Sejvices is eli11e to act as auditor in tern15 of Section 1212 of the Companies Ad 2006. Azets Audit Service5 15 a trading Daute of Azets Audit Services Limited
The William Leech Foundation Limited - The Foundation Trust Statement of financial activities for the year ended 31 March 2024 UDrestrieted EndoiFmeDt Totsl fu* Unrestricted Elldowmeni Tota] fimds 2024 fimd fund 2023 Note IDcoJne Investment income 53,IH9 53.049 Total ineotlle 53,IM9 $3,049 Expenditure RaLslngfMnds: Annual Mallagemellt Charge rebates Ch4viloble aclivilies: Expenditure on charitable activiti&% (70,797) (70.797) 1.661722 1,(01722 1.539,086 1,539.086 Total expenditure 1,662,722 (70,797) l J91925 1,539,086 1,539,086 Net expenditure before gainslOosse5) on investments (1,662,722) 123046 {IW8N6) {1.539,086) (1,539,086) Net gainsl(losses) OD investments S(.6) I&61 (2,486,850) (2,486.850) Net ineomel {1,662,n2) 6930,X36 5367,814 (1539.086) (2,486,850) (4,025,936) (expenditure) Fund transfers 1,662,722 {1,662,722) 1,539,086 (1,539,086} Tr4et movemellt in funds 5267,814 5267014 (4,025,936) {4,025,936) Totat fiLnd5 at th¢ beginning of the fwau¢ial y¢aT 7274 45.934.(K)I 45,941.275 7,274 49,959.937 49,967,211 Total funds at tht ed of the fthaDeial year 7274 51201015 51209.089 7.274 45.934.Th)1 45,941,275 There were no gains and losses iti the fmancial yeats other thats those notrd aknve. All incoming resourees and resources expended derive from continuing xtivities. The Dotes OD pages 19 10 22 forn] part of these fllJan¢ial ststemeDts. l5
The William Leech Foundation Limited - The Foundation Trust Balance sheet as at 31 March 2024 UDre8tricted EndosvmeDt Total funds Unre5trided EDdowment T(thl funds 2024 fund Ojnd 2023 Note FiIed assets Investsnents 51,192583 51.IY2583 45,928,883 45,928.883 Totsl rued awts 51,192583 51,192583 45,928,883 45,928,883 crrellt assets Debto 1,131 9,056 10,187 230 230 Cash at baDk and ID hand 11.745 176 11921 10,884 5.118 16.002 Total current assets IL876 9J32 li 11.114 5.118 16232 Liabilities Creditors: ajnounts fal]ing due within olle ye (S,602) {S,602) (3,840) (3,840) Ntt current assets 7274 9232 16 7274 5,118 12,392 Net assets 7274 $1201,815 51209,089 7274 45,934,1M)I 45,941,275 The fvDds of tbe eharity Endowm¢Dt funds 51201015 513111*15 45,934,IKbl 45,934,(X)I Unrestricted thds 7274 7274 7274 7,274 Total IIiDds 7274 S120115 51209,089 7274 45,934,IM)I 45,941,275 The fanCIal statements OD pages 15 to 22 were approved by the trustee, The willia Leech Fouudation Limitel on 3 September 2024 and were signed on its behalf bi. the under-rnentiolled two directors of The William Leech Foundation Limited. Bro William Sedd Director Director The notes on pages 19 to 22 forn] part of tbese fmaD¢ial stsleEn¢nts. 16
The William Leech Foundation Limited - The Foundation Trust Statement of accounting policies a) Basis of preparation and assessment ofgoing CODceni These fmancial statements have been prepared on a golng concern ba514 under the histori1 cost convention as odified by the iDcIusioD of Investent¥ at llk¢t value. in accordaDce with the Accountillg al Rewrting by Charities: Statement of Rernmended Practic£ appIlble to charities preparing their fiDallcial ststements in accordanceiTr?th United KiTrgdom Accounttng Stsndards, c0mprisll FRS 102"The Fin8n¢ial Reporttng S(aDthd applicable in tbe UK alkd Republic of 1relall (effertive l January 2019), aud appli¢abl¢ ]aw (Uniied Kingdom Genernlly Accepted Accountttjg Practice}, alld the Cbarities Act 2011. The Trust constilutes a public benefit entity as defined by FRS 102. Thetrustee considers thatthere areno material ullcertaintie5aboutth¢TriLSt'5 abilitytocontinueas a going concern. The rnost significant ar¢a5 of uncetsillry that affect the canying vat of &%sets held by the Trust are the level of Aiivestw¢nt return and the Frforniance of Investment maTkets {see th¢ iVe$entPoIICY attd fOnan¢t and risk tllaDagetDent sections of the trustee's alla1 rert f( m(Ke Inforu1M) aTMlthis is irne of the followillg finallcial b) Inco¢ recognitio All iucome isre¢ogDisedoncethe Trusthas entitlementtothe iDcow< itisprobable thatthe income wiIlbe received and the amount of Rncome receivable can be measured reliabty. Interest oll fid5 held on deposit is incllldedwheD rrfeivable andthe amountcan be measured reliably by th¢ Trust. this is nonnauy upoll notification of the interest paid or payable by the bank. Dividends are reCoASed once the dividend has been deKlared and nthificatiOD has been recetved of the diyidend due. e) EipeDditure recogllitlOD Liabilities are recoglli5ed exFenditure as Hs there is a legal or constructive obligation coD]mitting the Trust to that expenditure, it is probable that sett]ement will be required and the amouni of the obligaiion can be measured r¢liabty. All exFtnditure 15 accounted for on the acclS basis. d) Charitable aettvities Th¢s¢ include paJThents lo beneficiaries and governance costs as set out in note 2. Governallce costs comprise audit fed8, legal and prof10al fees attd directors. IUdell1ty iDsufdnce pretUiLUJLS {see llt 2). The costs of preparllig aTmual financial ststemeDts alld meetings are kn)rne by Willialn Leech (Investtnents) Limited detsils are set out in no* 8. e) InvestmeDts InYesth)ents are a form of basic fiDancial instnent and are initially recognised at their transaction value and subsequently measured their fair value as at the balance sheet date using the clositig price. The statement of financial activities includes the net gains and losses arising on Tevalv&ion and disposals throughout the financial year. The Tnjstholds units in tbe Columbia Threadlleedle Responsil)le Glob Equity FwJiL th¢ Columbia Threadtteedle Responstble Sterling Co4)ordte Bond Fund and tbe Stewart Illvestors Asia Pacific Leaders s]nability Fulld. Until 5 Septelllber 2023. these uDits were held ID tbe RAIF with Coh]rnbia Threadneedle. Th¢ units wer¢ then re- registLYed directly in the name of the Foundation Trust so the units in the fiuKls are now held directty by the Foundation Tnjll as optKksed to the RAIF. 17
The William Leech Foundation Llmited - The Foundation Trust Statement of aceounting policies (eontiDlled) These funds are valued at a single price and this reflts th¢ net asset value of the ulldertyillg in?SEMents. The investDLent Mattageent fee for the funds is cbaEed #gall the iDdiviththl fuDd value. Where r¢eS of annual management clwges receive4 these are Teinvested directly back into Units of the underlying th¢18 by the iDYestmeni Jnanagas. The Trust does not acquire put i)ptions. derivatives or other complex financial instruments. The Anain fonn of fin8n¢ial risk faced by the Trust i5 that of volatility ill equity and illve5tment arkets due to wider economic ¢¢mditioll4 the attitude of investOTS to investsnent risK ad chaDges in sentiment eonceming equities and M7thin particular sectors or sub sector& All gains aud I0eS are taken to the StaiemeDt of Finoncial Activities as they lS¢. Realised gains and lo&ses OJJ tnYesttDents are l(lated as the difference between sales proceeds and their opening carying valu¢ or their pllrche value if acquired subsequent to the first day of the fuw&cial year. Unrealised gains and losses are calculatrd as the difference b&ween the fairvalue atthe year-end and their c8nyingvalue. Realised andwjrealised iIiveslm¢nt gaiDS and losses are combined iJJ th¢ Ststement of Financia] Activities. Fund &¢rouDting The Trust ha5 a single eDdowmeni ffijll which provides for th¢ tru5t¢¢ to inv¢st tb¢ capital in perpetuity and is anaged OD a totsl return basis. The tsitstee * its discretion may allocate any part of the vnapplied tt>tal r¢rEm) to the unrestiicted fund of the Tn1 th be used for ¢haritabl¢ purposes in acc4)rdance with the Trust Deed. The unrestricted fi]nd comwises the cuThent and liablltties that the tsusiee is free use in accordance with the chaTitabl¢ obj¢cts. Foreigll ellrrell¢y The Tnjst's fi]n¢tional and PTe5entation currency is the pound sterltllg. ) Cash floTY ststeJDent The Trust b&$ taken adyantage of the exempti¢)n available to small entities from prePIllg a cash flow statement under section IA of the Financial Rep)rttDg Stsndard applicable in the UK and Republic of Itrland (FRS 102). 18
The William Leech Foundation Limited - The Foundation Trust Notes to the financial statements for the year ended 31 Marcb 2024 Taxation The Foundation TTUSt is a regirtered clwity and its nOn-trIng inc(Ane is exempi from toxatio Expenditure on charitable rdctivities 2024 2023 Payments to benefitiaries The British and FoTeigD Bible Society 329,604 306,0(M) Church Mi&8ion Society 329,604 306,0(M) The Methodist Cburcb iti Britai 329,604 306.0(M) The Salvation Arn]y 329.604 306,0(M) The Society for Promoting Chrilatt Knowledge. 329,604 306,0(M) Totsl pAents to beDefKiaries 1,648,020 1,530.0(M) Gov¢rnaDce costs Audit services 4,140 3.840 324 471 Legal and profwionA] fees 10338 4,775 Totsl governance costs 1{702 9,086 Totsl expellditthre on eharitable activities 1.662.722 1.539,086 The tnjsiee has decided to e¢t all govemallce costs from tmrestric*d fitllds and so no allocation or charge is oTrade to the endowrnent fund for aDy governance related costs. Trustee s remuneration The ttustee did not receive and was noi entitled to receive any remuneration or expenses in respect of its services during the fClaI year (2023: £nil). There were no employees durtllg the fillcIal Y (2023.. none). 19
The William Leech Foundation Limited - The Foundation Trust Notes to the financial statements for the year ended 31 March 2024 (contiDlled} Fund transfers A Charity Comtnission Order granled tbe tK)wer of inve5ttng on a t1 return basis oll 16 May 2(M)8. At the time the power was granted tbe trustee identified the value of the gift of perniaDent ¢Ddowm¢nt r¢c¢ived in 1960. The difference betsveen the valu¢ of the endowment fi]nds as at 15 May 2008 aDd the value of tbe gift component represented the opening balance of unapp]ied retur The power peits the tsILStee 10 invest pern]anentty endowed fut¥Js w n¥1M]se tothl rettuD and to apply an appropriate portion of the unapplied iotal rettun to incolne each fmancial year. UnEi] the power 15 exercised to transfer a portion of ullapplied totsl r¢turn to income. the unappIied retsm remains invested as part of the pernianent endowtneni. The Wer allows the tNs*e to decide ill exh fllwicial year how mucb of the unapplied totsl return is transferredto itteom¢ fimds and so available forexpththtiwe. HaYiogcOSidered its obligati¢)ns under the duty of even-handedne$5 between present and fvbjre beneficiarie4 the tsustee made a trdnsfer of £1.662,722 of uttapplied totsl return to uur45tricted income fi&8. This decision ks in accordance with the dtsthTr)ution policy estab]ished in Juty 2011. 2024 Ek)dowmtnt 2024 Unapplied totAI return 2024 Total Opelling value of elldowtllellt Gifi ¢omFK)llellt of p¢rniaDent eDdowm¢nt 159250 159,250 Unapplied totsl return 45.774,751 45,774,751 Total 159250 45.774,751 45,934.001 Movement UDapplied total return and endowellt ID the year: Investmentreturn: recogDised and nrecognised gains tnvestment return: dividends a¢wmulated al interest accnLed 6.806,6 6,806,690 53.049 53.049 AMC rebates reinvested 70,797 70,797 Totsl 6.930,536 6,930,536 Unapplied total retwn allocated to incojne {1,662,722) (1,662,722) Net movement ill reportlng period 5267.814 5267,814 CIosiDg value of pertnanent endoTrTment Gift cornponenl of pernianeni endowinent 159250 159,250 Unapplied total retmi 51,(2,565 51,042,565 Total 1592>0 51,041565 51201,815 20
The William Leech Foundation Limited - The Foundation Trust Notes to the financial statements for the year ended 31 Mareh 2024 (colltillued) Investments 2024 2023 met value at the beginnittg of the financial ye4r 45,928W3 49.953,532 (1,657,780) (1,537,799) Additions- at cost 114.7 GaIno05ses) in the fttwicial year 6..6 (2,486,850) Mthet value the end of the financial year 51,192,583 45,928,883 Inve51m¢llts at market value comprise&. 2024 2023 C&sh held global equity funds 1.102,293 Global equity fid$ 46,&)5.723 44.137.657 SteFIiDg bond funds 758,4S2 688,933 Asia Pacific equity funds 3,738,4( Market value &8 at 31 March 51,191583 45,928,883 Historical cost as at 31 March 30,02fi537 31,004,(K)9 Investments are carried at fair value. Invesbnents equities alld fixed interest secwities are all traded in quoted public markets. Holdtngs iti ullit trnsts alld operted iuve5ttnent conpanies are valued at the bid price. The basAs of farvaiue forquoted iDvestmellts isequivalellt to themctvalue.u5Ing th¢ bidprice. As5d sales audpurchases e recoliSed at the date of trade. Ill 2022r23 the Asia Pacific eqllity fi]nds were held within the RAIF 5truettJre and fomied part of the global equity funds balanc¢. tlh 2023r24 these units W¢Te re-r¢gist¢red and ar¢ now held dire¢tly ill the llae of the Foundation Tn]SL The significance of financial inslrnents to the ongoing fu1¢al S]nabIlIty of the Tnt is considered in tb¢ finCial review and investment policy and performance sections of1he truste's Annual Repo Debtors 2024 2023 Prepaents- itisumce weTDiUtD aDd itivestsnent perforrnance rerting services 1,131 230 A¢mied bond interest 9,056 10,187 The insufdnc¢ premiurn and iDvestmeDt t¢rf¢)rn]once rew)rting services prepaellts relate to the unrestricted fllud. The ac¢ru¢d bond in¢erest Telates to the endOTent fi(L 21
The William Leech Foundation Limited - The Foundation Trust Notes to the financial statements for the year ended 31 March 2024 (continued) Creditors.. amounts falling due within one year 2024 2023 AccDJats- audit services 4,140 3,840 Creditors 1,462 5,602 3.840 All creditOTS relaÉe to the UtiTestricted fimit Related parties The tmstee coDsideT5 that it is related to Williarn (Illvestsnents) Limiied by virtue of having commo directors. Certain athninistration services are prOded free of charge ty the staff of William Leech (tnvestments) Litllited. These services have noi been quantified for inclusion in these financial ststernents, as the atnounts are ¢onsidered immaterial. The tntee consider5 that il is the parent Utthttiking and ultitnate ¢trollIng party of The Foundation TTUSt. It is a private company limited by sbarts, Inc0rrnted in Ellglall registration Durnber (X)664118, and is a charity, registration number 232062. The priDCiPdl activity of the Company i% act as the sole trtee for three charitable trusts, including The William Leech FOundln Limited - The ch]ry Trust and Th¢ William Leech Research Fulld. These are considered to be felk>w wbsidiaTies of the sae parthiundenaking and ultIatr COJLtrolling paty. Paul Burrage, MauT¢¢n DIXO John Harriw Philip Poole and John Stawfeld are representatiV¢5 of the Five Charitie& which have r¢¢¢ived paents as set out in note 2. Th¢ consolidated financial slatements of The William Ittch Foation Limited can be obtained from the Company Setretary at Bank chambe 26 Mosley Stree4 Newc&8tle Tyne, NEI IDF. 22