Charity Registration No. 233700 The London Symphony Orchestra Endowment Trust Report and Financial Statements 31 March 2025
The London Symphony Orchestra Endowment Trust Report and financial statements 2024-25 Contents Page Officers and professional advisers Trustee's report Statement of Trustee's responsibilities Independent auditods report Statement of Flnancial Activities li Balance Sheet 12 Statement of Cash Flows 13 Note5 to the financial statements 14
The London Symphony Orchestra Endowment Trust Report and financial statements 2024-25 Officers and professional advisers Trustee LSOET Corporate Trustee Ltd Directors of the TrLrstee Charles Clark Mark Beddy Hon Sir Rocco Forte Lady Aliai Forte Richard Hardie james Lennox Mackenzie OBE Dame Kathryn McDowell Lady Wendy Parmley Sarah Quinn Daniel Ross John Shakeshaft Rahul Stanchina (Chairl Company Secretary of the Trustee Rikesh Shah Registered office Barbican Centre Silk Street London EC2Y 8DS Professional Advisers Investment monogers Sarasin & Partners Juxon House loo st Paul's Churchyard London EC2M 2AN Solicitors Veale Wa5brough Viiards LLP Orchard Court Orchard Lane Bristol BSI SWS Bonkers Lloyds Bank plc 34 Moorgate London EC2R 6PL Auditor Haysmac LLP 10 Queen Street Place London EC4R IAG
The London Symphony Orchestra Endowment Trust Trustee's report 2024-25 Introduction The Trustee present5 Its annual report and the audited financial statements for the year ended 31 March 2025. Structure. governance and management Constitution The London Symphony Orchestra Endowrllent Trust I'the Tru5t"I was originally established by a deed of settlement dated 12 September 1963 which has subsequently been amended by a trust deed dated 22 October 1991, a Deed of Variation dated 5 july 2006, a Deed of Amendment dated l October 2010 and a Deed dated 27 June 2025. Trustees ond orgunisation Until 27 June 2025, the Trust was governed by a Board of 10 Trustees whose naThe5 are listed in Note 19. Following a review of governance arrangements, the Trustee$ stepped down in the place of a sole corporate trustee, LSOET Corporate Trustee Ltd which took office on 27 June 2025. All of the former Trustee5 are Directors of LSOET Corporate Trustee Ltd together with two additional Director5, Mr Mark Beddy and Mr Rahul Stanchina. The Trustee 15 governed by it5 Board of Dirertors. There must be a minimum of 3 and a maximum of 12 Directors of whom not more than 4 may be directors of London Symphony Orchestra Ltd I'the LSO") or associate companies of the LSO. Non-LSO Trustees must alway5 constitute a majority of the Trustees. Subject to these limits, new Directors of the Trustee are recruited on the basis that by virtue of their knowledge, experience and qualifications they will be able to rnake a contribution to the pursuit of the Objects or the management of the Trust. Induction and training is provided as necessary. The Trustee, through its Board of Directors, meets at least twice a year and, in addltion, an Investment Comrnittee meets regularly with the investment managers to review the perforrnance of the investment portfolio and to di5CUSS the investment approach. Connected chrjrity The LSO (Charity Number 2323911 is a connected charity of the Trust by virtue of the fact that the two charities have shared objectives and administration. However, the Trust is fully independent of the LSO and has its own Trustee which has it5 own Board of Directors. The LSO'S subsidiary companie5, LSO Production5 Ltd and LSO Live Ltd are considered to be related parties to the Trust. Objectives ond octivities The general purpose of the Trust is to support the objects of the LSO, namely to promote, maintain and advance education, particularly musical education and to encourage and advance the arts including music, drama, mime, dancing and singing. The Trust'5 main activity is to build long-term funds which will generate returns that can be used to make grants which support the LSO as this is considered essential to being able to secure the LSO'S future. The unrestricted General Fund is the Tnain endowment fund which has been established for this purpose. In addition, the Trust has received funds raised from the Lord Mayor's Appeals in 2004, 2010 and in 2017, as well as from a number of generous donor5 towards the Alway5 Playing Appeal, established to support the L50 during and in the aftermath of the Covid-19 pandemic.
The London Symphony Orchestra Endowment Trust Trustee's report 2024-25 In 2012, the Trust raised income of almost £6m and this in turn released funding from the Arts Council England's Catalyst Endowment Scheme of a further £2.9m. The funds from this carnpaign, known as Moving Music, are invested in the Digital Fund as a restrirted long-term endowment with the total returll generated used to capture audio and audio-visual recordings of the LSO'S contert performances and to disseminate them to a wider audience. Following receipt of a generous grant from the Helen Hamlyn Trust in 2024, the Composers, Fund was established to provide world-class development opportunities for composer5, in partictjlar by supporting the LSO Helen Hamlyn Panufnik Composers, Scheme run by the LSO. The funds are invested for the long-term with investrnent return5 in excess of the original grant available to be drawn down. The Trust's principal fund5 Iwhlch are all open to further contributions1 are as follows: This is the Trust's primary unrestricted fund from which investment return5 are used to make grants to the LSO for areas of partlcular need. General Fund This fund was created to receive income during the Covid-19 pandemic as part of the Always Playing Appeal, with the main purpose being to provide strategic support to support the LSO inclLJding supporting its musicians and assisting in the development of its business model. strateglc Fund This fund is held for the long-term with investment returns used to make grants to support the extensive work of LSO Discovery and related education and community projects in the UK, overseas and through digital projects. LSO Discovery Ilong-terml Fund LSO St Luke's Fund This fund ha5 been established to receive funds to be used to support capital projects and other activity at LSO St Luke's. The investment returns from this fund are used to fund audio visual recordings of concert performances by the LSO and the distribution of these worldwide, including to young people and new audiences. Digital Fund The purpose of this fund is to provide world-class development opportunitie5 for composers, in particular IJY 5UPPOrting the LSO Helen Hamlyn Panufnik Composers, Scheme run by the LSO. Composers, Fund The grants made from the funds listed above provide an important source of regular and stable income to the LSO, and allows investrnent in areas of particular importance. The Trust also occasionally receive5 donations and legacies which are intended to be used for very specific purposes over a limited timeframe. These funds are accounted for separately in order to ensure that the wishes of the donor or legator are honoured. The Trustee's principal focus is to manage the various funds in the most appropriate way given the relevant purposes and timescales, and to make grants to the LSO Group based on the needs of the LSO. The largest funds are all largely invested in order to maximise returns over the medium- and long-term.
The London Symphony Orchestra Endowment Trust Trustee's report 2024-25 The Trust also make5 loans to LSO members to assist them in purchasing musical instruments, and ha5 acquired a small number of instruments which are loaned to the LSO for use by members of the Orchestra. The Trust does not use the seNices of volunteers and the minimal operational tasks of the Trust are undertaken by LSO staff. Public benefit The Trust provides benefit to the public indirectly by providing funding to the and thereby SLJPPOrting world class orchestra and its concert programme, as well as its wider activities intluding LSO Discovery's education and community programrlle, and international dissemination of performances through LSO Live. The LSO'S core activities encourage the education of, and participation in, music by the public at large. This is achieved through public concerts which have accessible ticket prices land some of which are free of charge), some of which are broadcast on the radio, television and the internet and through audio recordings which are widely available at low cost. The Trustee confirms that it has referred to the Charity Commission's guidance on public benefit ènd believes that the support provided to the LSO provide5 benefit to a wide sectioll of the public. Achievements and performance Investmentportfolio The Trust invest5 Its assets with a view to both capital appreciation and the generation of income to support its charitable activities. There are no restrictions on the Trust's power to invest. The investment strategy is set by the Trustee in discussion with the investment manager and this strategy is reviewed regularly. Within the overall strategy, the investment manager takes the decision5 on selection, retention and realisation of investment5. The value of the investment portfolio increased to £27,571,991 reflecting purchases and sales made during the year and a net increase in market value of £1,097.516. Investment performance reflected market conditions and porttolios are positioned to meet agreed investment mandates. At 31 May 2025. the investment portfolio was valued at £25,128,387, reflecting changes in financial markets and withdrawals made after the year end. From I" April 2023, a total return approach has been applied to the Digital Fund through which both income and capital gains can be drawn within pararlleters designed to protect the value of the fund over time. The initial value of the fund is set as the amount held at the conclusion of the fundraising campaign that led to the creation of this fund. The unapplied total return at I, April 2024 wa5 the difference between the value of the investment fund at that date and the initial value of the fund. Following advice from the Trust's solicitors and investment managers (see page 11, the Trust's policy 15 to draw 3.5% of the 3-year average value of the investment fund subject to sufficient unapplied total return being available. Fundroising Following the major appeal during the pandemic, active fundraising activity during the year was limited. Voluntary income reflected dofjations and legacies received and associated Gift Aid. The Trust continued to promote legacy giving amongst the LSO'S supporters and atjdiences which is an increasingly important source of income which allows the Trust to increase its ability to 5UPPOrt the LSO over time. The Trust did not engage the use of third-party fundraisers.
The London Symphony Orchestra Endowment Trust Trustee's report 2024-25 Gr¢7nts During the year, grants of £1,406,129 12024.. £300,000) were made to the LSO Grotjp. Details of all grants made are set out in note 10. Louns to Ployers The Trust continued to offer loaris to members of the LSO to assist them in the purchase of instruments. There were 2 new loans totalling £21,486 made to player5 during the year12024: 2 loans totalling £44,0001. At the vear-end, 10 players had outstanding Ic>ans from the Trust- further details are shown iri Note 13 to the Financial Statements. Financial review Total income received in the year was £5,205,88812024.. £726,0501, almost all of which related to donations, legacies, gift aid and income from investments. Expenditure of £1,535,12912024'. £402,417) was in line with expectations and related primarily to grants and investment management fees. Net gains in the value of the investment portfolio were £1,097,516 reflecting strong performance of investment markets during the year. Following reinvestment of income and surplus cash, the value of the portfolio at the year-end was £27,571,99112024'. £21,726,201). The Trusvs net assets increased from £24,044,320 to £28,306,296 at the year-end. Reserves policy Of the Trust's total funds of £28.3m, a total of £19.5m comprise Endowment Funds or Restricted Fund5 which can only be used for specific purposes. Of the remaining Unrestricted Fund5, £2.3m are held for specific purposes leaving £6.5m in the unrestricted General Fund. Much of the General Fund comprises investments. which are held to generate income and capital gains, together with instruments for use by the LSO and loans to Members of the LSO. After excluding the investments and the other assets which are not liquid, there was a remaining balance at the year end of £IIO,000 which the Trustee5 treat as free reserves. This is less than the target level for free re5erve5 of 5% of the General Fund but remains sufficient to meet day-to-day need5. Additional funds will be transferred from the investment portfolio to increase free reserves if needed. The level of free reserves is considered suff icient given that the Trust has minimal administrative overheads and no on-going liabilities. addition, the vast majority of investments held in the General Fund are liquid and available for drawdown at short notice if needed. The Trustee reviews levels of reserves on an annual basis. Risk revlew The major risks to which the Trust is exposed, as identified by the Trustee, have been reviewed and 5VStems have been established to mitigate those risks. The primary risk5 relate to protecting the value of the Trust's nvestment portfolio and other a55ets. The Trustee delegates management of this risk to professional investment manager5 Wlth oversight by the Investment Committee consisting of five Directors of the Trustee. Many factors affecting the achievement of the Trust's objectives relate to economic factors such as movement in share prices, interest rates, exchange rates and inflation and these are largely outside the Trust's control so can only be mitigated to a certain degree. However, the Trust has long-term time horizons and is largely able to absorb fluctuations in investment markets.
The London Symphony Orchestra Endowment Trust Trustee's report 2024-25 Plans for the future Work continues to secure donations for general purposes and specific projects. The Trust also continues to seek to increase the number of individuals who plan to donate a 5egacy to the Trust and the Trustees have been notified by a number of individuals of pledged legacie5 of varying size5. A major new campaign to significantly increase the endown)ent to help underpin the LSO'S future ambitions is being developed, with substantial planning taking place ahead of the campaign being launched. Careful oversight of the investment portfolio will continue in order to increase over time the value of grants made to support its charitable objectives. The policy of making grants to the LSO, LSO Productions Ltd and LSO Live Ltd is expected to continLJe along with loans to LSO member5 to assist with instrument purchases. In particular, major grants will be made to the LSO during the 2025126 financial year to support the costs of the LSO'S redeveloprnent of LSO St Luke's. Going concern At the year-end the Trust had significant net assets and minimal liabilities and operating costs. Grants are only awarded if sufficient funds are available to fund the necessary payments. The Trustee has a reasonable expectation that the Trust has adequate resources to continue its activitie5 for the foreseeable future and consider that there were no material uncertainties over the Trust'5 financial viability. Accordingly, the Trustee continues to adDPt the going concern basis in preparing the financial staternents. Fundraising approach The Trust subscribes to principle5 of fundraising best Practice by committing to high standards, and being clear, honest, open, respectful, fair and reasonable, and accountable and responsible. The Trust 15 registered wlth the Fundraising Regulator and adheres to the standards of the Code of Fundraising Practice. No complaint5 were received about the Trust's fundraising practices during the year.
The London Symphony Orchestra Endowment Trust Trustees, responsibilities statement The Trustee is responsible for preparing the Trustee's Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards Iunited Kingdom Generallv Accepted Accounting Practice), including FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland" The law applicable to charities in England and Wales requires the Trustee to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Trust and of the incoming resources and application of resources of the Trust for that period. In preparing these financial staternents, the Trustee is required to= select suitable accounting policie5 and then apply them consistently; observe the methods and principles in the Charities SORP,. make judgments and estimates that are reas(>nable and prudent; state whether applicable accounting standards have been followed,. and prepare the financial 5taterllents on the going concern basis unles5 It 15 inappropriate to presume that the Trust will continue in business. The Trustee is responsible for keeping proper accounting records that disc105e with reasonable accuracy at any time the financial position of the Trust and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reportsl Regulations 2D08 and the provision5 of the trust deed. The Trustee is a150 responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustee 15 responsible for the maintenance and integrity of the Trust and financial information included on the Trust's website. Legislation in the United Kingdom governing the preparation and di55emination of financial statement5 may differ from legislation in other juri5diction5. Signed on behalf of the Trustee Charles Clark Chair of LSOET Corporate Trustee Ltd 3 July 2025
Independent auditor's report to the Trustee of The London Symphony Orchestra Endowment Trust Independent auditorfs report to the Trustee of The London Symphony Orchestra Endowment Trust Opinion We have audited the financial statement5 of The London Symphony Orchestra Endowment Trust for the vear ended 31 March 2025 which comprise the Statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statement5, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and Unlted Kingdorn Accounting Standards, including Financial Reporting Standard 102 The Finonci¢71 Reporting Stt7ndt7rd opplicuble in the UK and Republic of Ireland Iunited Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements.. give a true and fair view of the state of the charit5 affairs as at 31 March 2025 and of the charity's net movement in funds for the year then ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirement5 of the Charitie5 Act 2011. Ba515 for opinion We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. We conducted our audit i accordance with International Standards on Auditing IUKI IISAS IUKII 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 requiremerTrt5. We believe that the audit evidence we have obtained 15 sufficient and appropriate to provide a basis for our opinion. Conclusions relating to g0Sng concern In auditing the financial statements, we have concluded that the Trustee's use of the going concern basi5 of accounting in the preparation of the financial statement5 is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or condition5 that, individually or tollertively. may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustee with respect to going concern are described in the relevant sectlQn5 of this report. Other information The Trustee is responsible for the other information. The other information comprises the information included in the Trustee's Annual Report. Our opinion on the financial statements doe5 not cover the other information and, except to the extent otherwise explicitly stated in OLJr report, we do not expre55 any form of assurance conclusion thereon.
Independent auditorfs report to the Trustee of The London Symphony Orchestra Endowment Trust In connection with Oltr 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 othenvise appears to be material misstated. If we identify such material inconsistencies or apparent material misstatement5, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other inforrnatlDn. If, based on the work we have performed, we conclude that there 15 a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Matters on which we are required to report by exception 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.. adequate accounting records have not been kept by the charity; or sufficient accounting records have not been kept,. or the charity financial staternents Bre not in agreement with the accounting records and returns,. or we have not received all the information and explanations we require for our audit. Responsibilities of Trustee for the financial statements As explained more fully in the Trustee's responsibilities statement set out on page 7, the Trustee is responsible for the preparation of the financial statements and for being satlsfied that they give a true and fair view, and for such internal control as the Trustee determines 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 Trustee 15 Ye5ponsible for assessing the charit¢s ability to continue as a going concern, disclosing, as applicable, matter5 related to going concern and using the going concern basis of accounting unless the Trustee either intends to liquidate the charity or to cease operations, or has no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financlal statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorfs 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 IUKI will always detert 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 InStanS 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.. Based on our understanding of the charity and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulation5 related to the Charities Act, and we considered the extent to which non-compliance might have a material effert on the financial statements. We also considered those laws and regulatlQllS that have a direct impact on the preparatiori of the financial statements such as the Charities Act 2011 and consider other factors such as relevant taxation.
Independent auditor's report to the Trustee of The London Symphony Orchestra Endowment Trust We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Audit procedures performed by the engagement team included.. Inspecting correspondence with regulators,. Discu55ions with management including consideration of known or suspected instance5 of non- compliance with laws and regLJIBtion and fraud,. Reviewing the controls and procedures of the charity relevant to the preparation of the financial statements to ensure these were in place throughout the year,. Evaluating management's controls designed to prevent and detect irregularities.. Identifying and tesling journals, in particular journal entries posted with unusual account corllbinations. postings by unusual users or with unusual descriptions,. and Reviewing minutes of Trustee meetings. Because of 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 finarTrcial 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 webstte at.. www.frc.or auditorsres onsibilities. This description forms part of our auditorfs report. Use of our report This report is made solely to the charity's Trustee, as a body, in accordance with section 144 of the Charities Act 2011 and regulation5 made under Section 154 of that Act. Our audit work has been undertaken 50 that we might state to the charity'5 Trustee those matters we are required to state to them in an Auditor'5 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's Trustee as a body for our audit work, for this report, or for the opinions we have formed. Hy'- Haysmac LLP Statutory Auditors Date.. I September2025 10 Queen Street Place London EC4R IAG Haysmac LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 io
The London Symphony Orchestra Endowment Trust Statement of Financial Activities Period ended 31 March 2025 Note 2025 Unrestricted lunds 2025 2025 Restricted Endowment funds funds 2025 Total fund5 2024 Total fund5 Income and endowments frtsm.. Donations and legacies Charitable attivitles Investrllent income 48,325 4,027 203,872 2,020,000 2,500.000 4,568,325 4,027 633,536 132,125 3,485 590,440 79,400 350,264 Total Income 256.224 2,099,41Kt 2,850,Z64 5,205,888 726,050 Expendlture Expenditure on.. Investment Managernent Fees 133,2611 116,6071 116,3971 1676,1291 162,7351 1112,3931 1730,0001 11,422,736) 192,6871 1309,7301 Total expenditure 149,8681 1692,5261 1792.7351 11,535,129) 140Z,4171 Net gains11105sesl on investments 138,878 177,353 274,986 591,217 1,521.277 Net le¥penditurell incorne 345,234 1,584,227 2.332.515 4.261.976 1,844,910 Tr8nsfers between funds Net movement in lunds 345,234 1.584.227 2,332,515 4,261,976 1,844,910 RÈtoncillatlon of funds Total funds brought forward 8,509.765 4,081,797 11,452,758 24.044,320 22.199.410 Totsl ftsnds tarrled forward 8,854.999 5.666,024 13,785,273 28,306,Z96 24,044,320 There were no other recogni5ed gains or105ses other than as shown above. All income and expenditure derive from continuing See Note 3 for tomparative Statement of Flnancial Activities analysed by fund5 li
The London Symphony Orchestra Endowment Trust Balance Sheet As at 31 March 2025 2025 Unrestricted funds 2025 2025 Endowment funds 2025 2024 Totsl funds Restrlcted funds Tot31 fund5 NotÈ Fixed assets Tangible asset5 Investment assets Loans li 545.000 8,122,974 49,224 545.000 13,785,273 27,571,991 49,224 545,000 21.726,201 58,753 12 5,663,744 13 Total fixed 35sets 8,717,198 5,663,744 13,785.273 Z8,166,215 22.129,954 Current assets Debtors.. amounts falling due within one yÈar Loans Cash at bank 14 13 8,222 27,632 118,482 8,222 27,632 120,762 45,000 25.144 1.653,222 2,280 Total current asseis 154,336 2.280 156.616 1,723,366 Current Ilabilitie5 Creditors-. amounts falling due within one year 15 116,5351 116.5351 19,0001 Net current assets I3701 2,Z80 140,081 1.714.366 Total net assets 8,854,999 5,666,024 13.785.273 28,306,296 24.044.320 Tot31 funds of the charity Funds brought forward 16 8,509.765 4.081,797 11,452,758 24,044,320 22,199,410 Exce55115hortf8111 of Income over expenditure for the yÈar 206,356 1,406,874 2,057,529 3,670.759 323,633 Realised and unre6lised increase I Idecreasel i the value of investment a55et5 138,878 177,353 274.986 591.217 1,521,277 Transfers between funds Funds carrled forward 8,854,999 5.666.024 13,785,273 28,306,ZY6 24,044.320 The notÈ5 on p3ges 13 to 24 form part ol these accounts. Approved bythÈ Trustee on 3 July 2025 Sig donbÈh of the Trustee Charles C13rk Chair of LSOET Corporate Trustee Ltd 12
The London Symphony Orchestra Endowment Trust Statement of Cash Flows Year ended 31 March 2025 2025 2024 Note5 Cash used In operatlng actlvltles 2.582,278 1200,0021 Cash flows from investing artivitie5 Bank intÈrest Income from invÈstments Cash proceeds from the sale of Investments Purchase of inve5tment5 14,845 618.691 2,206,532 16,954,8061 590,440 17.332 1464,5151 Decrease in cash and tash equlvalents In the year 11.532,4601 156,7451 Cash and cash equivalent5 at the beginning of the year 1,653,222 1,709,967 Total cash and cash equivalent5 at the end of the year 120.762 1.653,222 Reconciliaiion ol net movement In funds to net cash flow frorn operatlng actlvltles 2025 2024 Net rnovement funds Unrealised Igain5lllossÉs on InvÈstments Dividend and interest income from investments Bank interest Decrea5e/lincrea5È1 in loèns Decrea5e/lincrea5el in debtors IDecrea5ellincrease in creditors 4.261,976 11,097,516) 1618,6911 114,8451 7.040 36,778 7.535 1,844,910 12,019,030> 1590,4401 20,916 550.969 17,3271 Net cash used In operating activities 2,582.278 1200,0021 Analysls ol netfunds 2025 2024 Cash at bank and in hand 120.762 1,653,Z22 13
The London Symphony Orchestra EndowmentTrust Notes to the financial statements Year ended 31 March 2025 l Accounting pollties al Basis of preparation The flnaniial statements have been prepared in accordance with the Flnan¢ial Reporting Standard applicable in the UK and Republic of Ireland IFR51021, the Statement of RÈcomtnended Practice applic3ble to ch3rlties preparing their acrounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 effe£tive l January 2015. The financial statemènts have been prepared to give a 'true and fair, view and have departed frorn the Charities (Accounts and Reports) RÈgulotions 200B only to thÈ extent required to provide 3 'true and fair vieW. This departure has involvÈd following Accounting and Reporting by Charitie5 preparing thelr accounts in accordance with the Flnanclal Reporting Standard applic3ble in the UK and Republic of Ireland IFRS 1021 issued on 16 July 2014 rather than the AccountlnE and Reporting by Charities.. Statement of Recornmended Prartice effective from l April 2005 whith has Since been withdrawn. The financial ststement5 are drawn up under the historlcal cost convention except that Investments are carried at fairvalve. The Trust meets the definition of a Public BenÈfit Entity under FRS 102. bl Preparation ol accounts on a going concern basls The financial statÈTnents have been prepared on the basis that the Trust 15 and wlll remain a going concÈrn for the foresee3ble future. At the year-end the Trust ha5 significant net asset5 and minirn31 liabilitiÈs and operating costs. Grants are only awarded if sufficient funds ère available to fund the nece55ary payments. DÈspite the on-going irnpact5 of the pandetnic, and havlne reviewed expected future ca5hflow5, the TrustÈÈ ha5 a rea50nablÈ Èxpertation that the Trust has adequate resources to continuÈ its activities for the f01È5eeable future and ¢on5ider that there were no material vncertainties over the Tru5t'5 financial viability, cl Income Income 15 recognised when the chèrity has entitlement to the fund5, any performènte conditions attached to the item of income have been met, it 15 probable that the income wlll be rÈceived and the amount can be measured Donations are recogni5ed when thÈ Trust has been notifiÈd In writing of both thè amount and settlement d3te. In the event that a donation 15 subject to condition5 that require a level of perfoimance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditlon5 15 wholly within the control of the charlty and it Is probable that those conditions will be fulfilled in the reporting perlDd. Legaol gift5 are recognised on a tasÈ by case basis following the grantlng ol probate when the admilstratorlexeCut0r for the estate has communicated in writing both the Brnount and sÈttletnent date. In the event that the gift is in the form of an asset other than cash or a financi81 asset traded on 8 recognised Stock eKchènge, recognitlon is subject to the valuÈ of the gift being rellably measurable wlth è degree of re8sonable accuracy and the title to thÈ asset having been transferred to the charitv. Investment income and interest receivable are recognised on an accruals basis. dl Funds The General Fund 15 a general unrÈstricted fund and represents fund5 which are expendable at thÈ discretion of the Trv5tee in furthÈrance ol the general tsbjective5 of the Charlty and which have not been designated for other purposes. Such funds reprèsent investments,103ns and working capital b31ance5. Restricted funds are fiJnd5 subject to Spec[C restriitions imposed by the donor5. These funds are not available for the Trustee to 3pply at its dlscretion. The purpose and use of the restricted funds1$ Set out in the note5 to the fin4ncial st8temÈnts. EndowmÈnt fund5 are funds whlch the Trustee is legally required to invest for è period of at least 25 year5 for the Charity's purposes. Further detsils of all funds are given in note 16. 14
The London Symphony Orchestra EndowmentTrust Notes to the financial statements Year ended 31 March 2025 Accounting pollcles Icontinuedl el Expenditure Expenditure Is recognised on accruals ba515. Allocation of support and governance costs General 5UPPOrt costs relating to the operation of the CharY, which are minimal, are borne by thÈ London Symphony Orchestra and are not recognised in these fin3nclal statements. Governance c05t5 comprlse all costs nvolving the public account8bility of the charlty and its cotnplian¢e wlth regulation and good practice, includlng Statutory avdit fees 8nd legal fees. Governance costs are rÈlated to charit3ble actlvltles and have therefore been includÈd underthi5 heading. gl Tangible fixed assets Tangible flxed assets are ststed at cost and represent three high quality string Instruments. These instruments have not been depreciated because the Trustee is of the opinion that the net residual value 45 èt le3St equal to the original C05t. hl Investments Investments are stated at the market value 35 indlcated by the Report of the Investment Managers to the Trustee as at the 8alance Shèet date. Any resulting unreali5ed gain or loss is alloc8ted to the fund to whlch it relates wf(hln the Statement of Flnanclal Activitie5. 11 Financial instruments and concessionary loan5 FinaclaI assets and financial liabilitles 8re reco8n15ed wh@n the charity becorne5 a party to the contrartu31 provisions of the instrument. The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Baslc flnancial instruments are initially recognisÈd at transaction valuÈ and subsequently rnealured at their settlement value. Trade and other cfebtor5 are recognised at the settl@ment amount duÉ after any trade discount offered. Prep3ymÈnts are valued at the amount prepaid net of any discounts due. Cash at bank and c35h in hand include5 cash and short term highly Ilquid investment5 Wlth a short maturity of three months or less frDm the date of acqulsltion or opening of the deposit or sirnilar account. Creditors and provisions are recognised where the chÈrity has a present obligation resulting from a past event that will probably result in the transfer of fund5 to a third party and the amount due to settle the obligatlon can be meo5ured or estimated reliably. Creditors and provlslons are norrnally retognlsed èt their 5ettlÈment amount aftei HllowlnÉ for any discounts due. Conce55ionary loans made to mernbers of the LSO to a5S15t them in the purchase of instrument5 are initlèlly reiognlsed at the 3mount paid with the carrying amount in 5ubsequ2nt perlods adjusted to reflect interest, repayments and any impalrment. jl Taxatlon ThÈ London Symphony OrchÈstra Endowment Trust Is a registered charity and is thus exempt from tax on incornÈ and g3in5 falling within Pèrt 10 ol the Income Tax Act 2007 or s256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applled to its charitable Objects. No tax charges have arlsen in the Trust. 15
The London Symphony Orchestra Endowment Trust Notes to the financial statements Year ended 31 March 2025 2 Crltl¢al accountlngludgements and key Sources of e5timatlon uncertainty In the application of the charity's attounting policle5, which are dÈ5cribed in Note I, the Trustee 15 required to tnake judÉèment5, estlmate5 and assumptions about the c8rryillg amount5 of assets and liabilities that are not readily apparent from other sources. The estimates 3nd a550ciated assurnption5 are based on hlstorical experiÈnce and othÈr factor5 that are considered to be relevant. Actual results may (Siffer from these estimates. The estimate5 and underlying assumptions are revlewed on an ongoing basis. Revisions to accounting estimatÈs are recogni5ed in the pÈriod in which the estimate Is revised if the revision affects only that period, or in the period of the revision and future periods if thÈ revision affÈcts both current and future period5. The Trustee does not consider there are any critical judgements or sources of e5tim3tlon uncertalnty requiring dlsclosure beyond the accountlnE policies Ilsted Bbove. 3 Comparative Staternent of Flnancial Actlvkles and Balance Sheet Comparative Statement of Financlal Actlvitie5 Notp 2024 Unrestricted funds 2024 2024 Restricted Endowment funds funds 2024 Total funds Income and endtswments from.. Donatlons and legacies 132,125 3,485 184,154 132,125 3,485 590.440 InvÈ5ttnent income 70,216 336,070 Total Incomè 319,764 70,216 336,070 726,050 Expenditure Expenditure on.. Raising funds Charitable activities 128,0391 19,7301 112,0031 1300,0001 152,6451 192,6871 1309,7301 Total expenditure 137,7691 1312,0031 152,6451 1402,4171 Net gains on investments 433.092 194,824 893.361 1,521,277 Transfers between funds Net movempnt in funds 715,087 146,9631 1.176,786 1.844,910 Retonciliation of funds Total funds brought forward 7,794,678 4.128,760 10,275,972 22,199,410 Total funds carried forward 8,509.765 4,081.797 11,452.758 24,044.220 16
The London Symphony Orchestra EndowmentTrust Notes to the financial statements Year ended 31 March 2025 a Comparative Statement of Financial Activitles and Balance Sheet Icontinuedl Comparative Balance Sheet 2024 Unrestrlcted funds 2024 Restricted Endowment funds funds 2024 2024 Total lunds Note Fixed a5set5 Tangible 85sets Investments assets Loan5 li 12 13 545,000 6,954,249 58,753 545,000 11.452.758 21,726.201 58,753 3,319,194 Total fixed assets 7.558.002 3,319,194 11,452,758 22A29,954 Current a5set5 Debtors.. amounts falling due wtthin one Loan5 Cash at bank 14 13 45,000 25,144 890,619 45,000 25,144 1,653,222 762,603 Total current asset5 960,763 762,603 1,7Z3,366 Credltors.. amounts falling due wlthln 15 19,0001 19,0001 NÈt current assets 951.763 762,603 1,714,366 Total net assets 8.509.765 4,081,797 11/452.758 24,044,320 TotHI lunds of the charlty Funds brought forw3rd 1Shortfalll/excess of income over expenditure for 17 7,794,678 4,128.760 10.275,972 22,199,410 281,995 1241,7871 283.425 323.633 ReallsÈd and unreali5ed incie35e I Idecreasel in 433,092 194,824 893.361 1,521,277 Funds carried forward 8,50Y,765 4,081.797 11,452,758 24m4.320 17
The London Symphony Orchestra EndowmentTrust Notes to the financial Statements Period ended 31 March 2025 2025 Z024 4 Income from donatlon5 and legacies Donations IUnre5tricted Funds) Donations IRÈ5tricted Funds) Donatlons IEndowment Funds) Legatie5 27,360 2,020.000 2,500,OOD 20,965 23,781 108,344 Total income from donations and legacies 4,568,325 132,125 The total v4lue of donation5 received from Trustee5 durlnE the year was £20,180 12024.. £12.1731. 2025 2024 5 Income from charliable activitles Loan interest receivable from player loans 4,027 3,485 Total income from charltable artivities 4,027 3,485 All income from charitable actlvitie5 relate5 to unrestricted funds. 18
The London Symphony Orchestr3 Endowment Trust Notes to the financial statements Period ended 31 March 2025 2025 2024 6 Investment Income Dlvidends and interest from Snvestrnents Bank interest received 618,691 14,845 590,440 Totsl irbvestment incorne 633,536 590,440 2025 2024 7 Expenditure on ralslng funds Investment management fees 112,393 92,687 Total expenditure on ralslng funds 112,393 92,687 2025 2024 8 Expendiiure on charitable activities Grants to the LSO Group (see Note 101 Governance costs 1.406,129 16,607 300,000 9,730 Total expendltuye on rharitable activitie5 1,422,736 309,730 2025 Z024 9 Net IncomellÈxpendlturel 15 stated after charging.. Auditors. remuneration audlt fees 8,025 7,500 The Trustee5 did not recelve any remvneratlon for their services to the Trust nor were they relmbursed for any expenses in either year. 19
The London Symphony Orchestra Endowment Trust Notes to the financial statements Year ended 31 March 2025 Grants to institutions 2025 2024 10 Analysls of grant5 payable and related partytran5artions LSO Discovery Short-TÉrm Fund grant to LSO Productions Ltd lor LSO Discovery Anglo-JapanÈsÈ Fund grant for scholarships Digital IEndowmentl Fund grant to LSO Live Ltd for Moving Muslc dlgltèl projects Digital Ilncomel Fund Er3Trt to LSO Ltd for the reburbi5hment of LSO St LLJke's 125,000 30,000 730,000 521,129 300,000 Total Erants to the LSO Group IA06,129 300.000 As explained in the Trustee5' report. London Symphony Orchestra Ltd IreglsterÈd charity number 2323911 is z connected tharity. Grants made to the LSO and Its subsidiaries. Production5 Ltd and LSO Live Ltd during the ye3r are shown above. ThÈre were no other related party trans3rtlOll5 in the year. 11 Tanglble fixed assets Musical Instruments Cost At l April 2024 545,000 At 31 March 2025 545,000 Net book value At l April 2024 545,000 At 31 March 2025 545,000 20
The London Symphony Orchestra Endowment Trust Notes to the financial statements Year ended 31 March 2025 20Z5 2024 12 Investment assets Investment portFollo Market value brought forward at l April Addition5 Dlsposals 21,726,201 6,954,806 12,206,532) 26,474,475 19,259,988 464,515 17,3321 19.707,171 Increase/ldecrea5el in m8rket value 1,097,516 2.019,030 Total Investmenl assets 27,571,991 21,726,201 An analysls of the market value of Investments atthe yÈar end Is provided below.. 2025 2024 Cash Llquld Short Te Deposits Fixed Incomelbonds UK eqtjities Overseas equitie5 Hedge funds, private equity funds and other alternatives Property funds 346,488 6,611,275 3,224,128 1.019,237 13,467,827 2,104,301 798,735 1,612,399 1.145,939 3.795,673 871,395 12.394.662 1,261,102 645,031 Tthal 27,571,991 21,726,201 There are no Indlvidual investments Sn excess of IO% of thÈ total portfolio. The value of the investment porttollo at 31 May 2025 was £25,128,387. 21
The London Symphony Orchestra Endowment Trust Notes to the financial statements Year ended 31 March 2025 2025 2024 13 Loans Amounts owed by LSO p13yÈrs Due wrthin oTTre year DUÈ after one year 27,632 49,224 76,856 25,144 58,753 83,897 ThÈ LSO players to whom conce5sionary loans have been made are sh8reholders of London Symphony Orchestra Ltd. The èmounts owed by the LSO players are repayable over v8rylng periods usually not exceeding 7 years. All loans bear intÈrÈ5t Bt a variable rate linked to the Bank of England base ratÈ. There were no loans to players that hèd been committed to but nottaken up 8$ ot the 31 March 2025. 2025 2024 14 Debtors.. amoLtnt5 falling due wlthln one year Accrued Sncome 8,222 45,000 8,222 45,000 Accrued incorne primarily rÈlates to legacie5 to whlch the Trust is entitlÈd, and gift ald paytnents not yet received. 2025 2024 15 Credltors.. amounts falllng due within one yeai Accruals 16,535 9,000 16,535 9,000 22
Thè London Symphony Orchestra Endowment Trust Notes to the financial statements Period ended 31 March 2025 Bèlance l April 2024 Balance 31 March 2025 16 Statement of lunds Gains and losses Income ExpeThditure Transfers Unrestricted funds.. General Fund 5tr8tegic Fund Wallis Fun 6,197,405 2,200,775 111,585 202,908 50,571 2,745 140,0941 19,2991 14751 74,917 62,554 1,407 6,435,136 2,304,601 115,262 Total unrestri¢ted funds 8.509.765 256,224 149.8681 138,878 8.854.999 Restricted funds.. LSO Discovery Ilong-tÈrml Fund LSO Oi5cDvery1short-terml Fund Di8ltal lincomel Fund LSO St Luke's Fund Japanese Student Scholarship Fund 2,248,350 537,094 521.159 600,000 175,194 63.046 11.058 2,814 2,022,482 110,6431 1127,2791 1521,9211 12,6831 130,0001 38,135 15,552 18,988 104,678 2,338,888 436,425 21,040 2.724,477 145,194 Total restricted fund5 4,081.797 2,099,4LM) 1692,5261 177,353 5.666.024 Endowment fvnd5'. Digital Fund Composers, Fund 11.452,758 322.617 2,527,647 1784,3151 18,4201 202,211 72,775 11,193,271 2,592.002 Total endowment funds 11,4S2,758 2.850,264 1792.7351 274,986 13,785.273 Total funds 24.044.820 5,205,888 11.535.129) 591,217 28.306.296 Det3115 of the varfous funds are Set out below.. GeneTuI Fund Thls Is the Trust's primary unrestricted fund in which all funds, except those with specific restrictions, are held. Part of the fund compTi5e5 instruments which are loaned to the LSO for use by Its players, the majority of funds are invested with the Investment return used to make grant5tothe LSO. Stroteolc Fnd This fund wa5 created to receive income durln8 the Covid-19 pandemlc as part of the Always Playing Appeal. Thls Is an unrestricted fund, with the main purpose being to provide 5trateESc support to SUPPDrt the LSO during and after the pandemic, In particular to 5UPPOrt Its musicians and assist inthe transition to a new buslne5s model over comlng year5. Wollis Fund This is an unrestricted fund which Ss accounted for separately In line with the requlrements of H legacythat wès received in 2021. Income and capital Érowth frorn the fund5 invested will be used to support Lgo Discovery's work. The fund will be transftrred to the General Fund after ten years, In March 2032. 23
The London Symphony Orthestra Endowment Trust Notes to the financlal statements Period ended 31 March 2025 16 Staternent of tunds Icont£nuedl LSO Discovery Ilong-termj Fund Thls fund is held for the long-terrn with funds invested and the investmènt rpturn used to make grants to support the work of O DSscovery land related education and comrnunity projects). LSO Discovery {short-termJ Fund Thls fund is to be used to support the work of LSO DSscovery land related education and tommunity prolettsl over a defined time framÈ, typically less thèn 10 years. Digital Fund ond Digital lincome) Fund These two funds are used to fund audio vlsual recordings of concert perform8nce5 by the LS0 and the distributlon of these worldwide, including to young people and new audi&ceS. The funds are invested for the long-term with investment return5 avallable to be drawn down. Until March 2023, only income generated could be drawn dowTr- this income Ss held separately in the Dlgital lincomel Fund. From April 2025, a total return approach has been applied to the Digital Fund through which both income and capital g4ins can be drawn within p8rameters de51gned to protect thè value of the fund overtime. LSO StLuke's Fund This fund hè5 been established to receive funds to be used to support capital project5 and other artivity at LSO St Luke's. Joptsne5eStudentScholLTfship Fund This fund was established to build Anglo-japanese cu[al relatlons by supportln8 the LSO'S work in Japan and to provide scholarships to lèpane5e music student5 to a55iSt them in studying at the Guildhall School of Music & Drama. The rem8ininÉ funds held tan only be used for 5cholarshlps. Composers'Fund This fund was establlshed following a Éenerous grant from the Helen Hatlllyn Trust. The purpose of the fund is to provide world-class dEveloprnenf Opportunities for totnposers. in particular by supporting the LSO Helen Hamlyn Panufnik Composers. Schetne run by the LSO. The funds are invested for the long-term with investment retum5 in exce55 of the original grant availableto be drawn down. Comparatlve tnovements In funds for the prloryear are shown in Note 17 to these accounts. 24
The London Symphony Orchestra Endowment Trust Notes to the fananclal statements Perlod ended 31 March 2025 Balan l April 2023 Balance 31 March Z024 17 Comparative statement of Gains and losses Income Expenditure Transfers Unrestrfcted fund5'. General Fund Strategic Fund Wallis Fund 5,586,612 2.L07,913 100,153 267,415 49,421 2.928 128,9721 18,3341 14631 372,350 51,775 8,967 6,197,405 2,200,775 111,585 rotal unrestricted funds 7.794.678 319,764 137,7691 433.092 ,509.765 Restricted funds.. LSO Discovery Ilong-terml Fund LSO Discovery Ishort-terml Fund LSQ Discovery lon&offl Fund Digit31 lincornel Fund LSO St LLJke's Fund Japanese Student Schol3rship Fund 2,019,359 513,048 60,773 9,443 19,8331 12,1701 178,051 16,773 2,248,350 537,094 821,159 600,000 175,194 1300.OCNJI 521,159 600,000 175,194 Total testrlcted funds 4,128,760 70.216 131Z,0031 194.824 4.081.797 Endowment funds.. 10,275.972 336,070 152.6451 893,361 11,452,758 Total end¢)wrnent funds 10,275.972 336,070 152.6451 893,361 11,452,758 Total funds 22.199.410 726,050 1402A171 1,521,277 24,044,320 25
The London Symphony Orchestra Endowment Trust Notes to the financial statement5 Perlod ended 31 March 2025 18 Di8ltal Fund-Total Return Approath With effect from 1st April 2023, the Trust adopted 8 total return approach to the 018ltal Fund in line wlth the provi510ll5 of The Charities ITotal Return) Regulations 2013. Under thls approach, the Oi£it81 Fund is invested with the aim of m8ximi5ing the total return lincome and capit81 gainsl, with an 3pproprlate proportion of unapplied total return available to be drawn down each year to Support charitable activity. Until any vnapplied total return is drawn down, it remalns invested on the same ba515 as the rest of this fund. Digital Fund Opening value of fund at l April 2024 Less.. Inltlèl value of the fund15ee note below) 11,452,758 18,831,606) Unapplied Total Return Brought Forward 2,621,152 Add.. Investtnent return Inet of fees) 470.513 Less.. Drawdowns 1730,0001 UnappllÈd Total Return carried forward at 31 March 2025 2,361,665 Add.. Initi41 value of the fund 8,831,606 Closingvalue of the fund at 31 March 2025 Including unapplled total return 11,193.271 The inltial vèlue of the fund Is the tot613mount held at the conclusSon of the fundralsing CHrnpaign that led to the creation of this fund. 19 Post Balance Sheet Events A5 explained in the Trustee's Report, a corporate rrustÈe- 0ETCOrpGrate Trvstee Ltd- wa5 appointed in June 2025 to replace the former Trustees. For completeness, the names of all the Trustees who Served between 1st April 2024 and the date of signing this report ère as follows.. Resl8ned 27 June 2025 Resigned 27June 2025 RÈsigned 27 June 2025 Re51gned 27 June 2025 Resigned 27 June 2025 Resigned 27June 2025 Resigned 27 June 2025 Resigned 27 June 2025 Resigne(127 June 2025 Resigned 27 June 2025 Appointed 27June 2025 Hon Sir Rocco Forte LadyAliai Forte Rithard Hardie James Lennox Mackenzie OBE Dame Kathryn McDowell Lady Wendy Parmley Sarah Quinn Daniel R05S John Sh3ke5haft LSOET Corporate Trustee Ltd 26