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2022-12-31-accounts

The Invesco Cares Foundation

Report and financial statements for the year ended 31 December 2022

Charity no: 326583

The Invesco Cares Foundation Contents

The Invesco Cares Foundation
Contents		 The Invesco Cares Foundation
Contents
___________
Charity number 326583
Trustees C. Bouch
J. Huysinga
G. Proudfoot
Independent auditors PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
1 Embankment Place
London
WC2R 6RH
Accountants Haysmacintyre LLP
10 Queen Street Place
London
EC4R 1AG
Principal address Perpetual Park
Perpetual Park Drive
Henley-on-Thames
Oxfordshire
RG9 1HH
Bankers HSBC Bank Plc
Coventry DSC
Harry Weston Road
Binley
Coventry
CV3 2TQ
Investment Managers Invesco Fund Managers Limited
Perpetual Park
Perpetual Park Drive
Henley-on-Thames
RG9 1HH

The Invesco Cares Foundation Contents

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Page
Report of the Trustees 3
Statement of Trustees 9
10
Statement of Financial Activities 13
Balance Sheet 14
Statement of Cash Flows 15
Notes to the Financial Statements 16

The Invesco Cares Foundation

Report of the Trustees for the year ended 31 December 2022

_________________

The Trustees present their audited the year ended 31 December 2022.

The charity is a charitable trust, governed by Trustees and led by the Invesco Cares Committee Ltd.

Structure, governance and management

The charity is registered in the UK with registered charity number 326583 and is constituted under a trust deed dated 1[st] February 1984, as amended by resolutions dated 19/7/2010 and 05/02/2014.

The charity is a charitable trust, with new Trustees appointed by the existing Trustees and the Chair of the committee. All Trustees give of their time freely and no Trustee remuneration was paid in the year.

The day to day administration of the charity is delegated to the committee, led by an Invesco Cares Manager and a team of 10 volunteers that includes a Treasurer and Chair of the committee. The committee meets approximately every 6 weeks for an hour and once a year for an entire day but communicates regularly online.

The members of the committee rotate regularly to ensure the opportunity to be involved, to maintain fresh thinking, and to ensure the standard of the work of the Invesco Cares Foundation is continually raised, specifically:

Policies and procedures for induction and training of new Trustees

Trustee recruitment procedure

Responsibility for the recruitment of new Trustees rests with the existing Trustees and Chair of the committee. They must oversee the management of an open and efficient process and always act in the best interests of the charity.

Process for induction and training

The Chair of the committee writes to the prospective Trustee expectations of them. The prospective Trustee is asked to sign and return a copy of the letter. charity is sent to the prospective Trustee Trustee

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The Invesco Cares Foundation

Report of the Trustees for the year ended 31 December 2022

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Process for induction and training (continued)

A full induction is arranged with the Invesco Cares Manager and any new Trustees will have meetings arranged with existing Trustees. Once recruited the Charity Commission is informed and all governing documents updated accordingly. If appropriate the bank is also notified if the new Trustee is to be a signatory.

Objectives and activities

communities of the Henley and London offices by making financial donations to charities, both local and those with which staff have a personal connection. The committee exists to filter the high demand for Invesco UK support, to ensure that guideline criteria for donations are applied and to manage the administration of the donations.

There are no restrictions in the governing document which limit the discretion of the Trustees to donate the funds of the Invesco Cares Foundation to the benefit of other charities and/or charitable purposes.

Main activities undertaken for the public benefit

The Trustees confirm they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission.

One of the main activities of the charity is to make grants to small, local charities where those donations will make a difference, using a set of criteria outlined below. The main beneficiaries are small, independent charities working with disadvantaged children, carers, the terminally ill, elderly and disabled. The other area of focus is raising funds for a larger, national charity partner, as nominated by staff.

A further part of the donations made supports matched fundraising for employees who are undertaking personal challenges e.g. mass participation events, to assist them in reaching their fundraising targets.

This fulfils the responsibility of Invesco UK to contribute to the communities in which it works, namely Henley and London, as well as supporting those charities that have a personal connection for its staff. By supporting these organisations, the charity is directly contributing towards the public benefit.

In addition to distributing funds, the committee organises participatory events within Invesco UK, with the intention of extending the public benefit to national charitable organisations, as well as those local to the Invesco Henley and London offices. These are limited to two days a year for one National sponsored event and one day connected to the current Charity of the Year. All employees who wish to participate are encouraged to donate and the chosen charity receives all funds raised, plus a matching amount.

Since 2014, the employees have selected a Charity of the Year or Charity partner. During the last three months of 2021 the committee implemented a selection process for Invesco UK to work with a staff voted charity for 2022/23. The process was entirely staff led and, at the beginning of December 2021, Dementia UK was chosen as the Charity partner for 2022/23. Based on the selection criteria, donations were made to all the charities that were nominated by employees. To date, Invesco, its staff and the Foundation have raised £44,298 in matched funding during the financial year for Dementia UK (in total £122,497 was raised transferred direct to Dementia UK) to fund a specialist dementia nurse in the South East of England.

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The Invesco Cares Foundation

Report of the Trustees for the year ended 31 December 2022

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Objectives and activities (continued)

Criteria for consideration for grant funding to small local charities

The committee meets to review all of the requests received for grant funding, either externally or from Invesco UK staff. The committee is governed by an established set of criteria to agree which applicants will be successful.

The committee currently stipulates that one or more of the following criteria needs to apply for any request to be considered:

Grants for employee matching

Where a member of staff is participating in a sponsored event they may make a request for support. The committee will approve a donation directly to the charity the staff member is representing. This is limited to £5,000 per member of staff per year and is a matching of the monies raised by the staff member through sponsorship. In this category, the charity does not need to be a local charity but will be a UK registered charity that is pertinent and meaningful to the individual staff member.

Guidance for committee decisions

The committee does not:

Long term aims and objectives of the charity

Over the long term, the charity intends to raise significant funds to make a lasting difference to UK charities and to share those successes with staff.

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The Invesco Cares Foundation

Report of the Trustees for the year ended 31 December 2022

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Long term aims and objectives of the charity (continued)

On an annual basis we raise funds for a charity partner through various fundraising events such as sporting challenges, salary sacrifice and online auctions. In 2022, a salary sacrifice campaign and the annual triathlon challenge took place, raising over £52,300.

The charity has aimed to engage over 50% of Invesco UK staff in Invesco Cares activities in at least one of the following ways

The charity will measure its success in achieving these long term aims by monitoring volunteering days logged through the Invesco UK Leave & Overtime system and keeping records of all staff taking part in events and requesting employee matching funds.

Achievements and performance

The charity has made donations to 113 different charitable organisations in 2022 (2021: 97). In addition, 5 were advised in 2022 but not paid until 2023 (Corinne Burton Memorial Trust, Youth Space, Inspirations, Prostrate Cancer UK and Sacred Heart in Partnership). All have met our criteria, as small charities local to our offices, and national charities nominated by Invesco UK employees. The Trustees consider the current level of grant activity to meet the aims and objectives set by the charity.

The Charity partnership operated for a successful eighth year during 2022, with the charity raising funds for Dementia UK. The fundraising will support the funding of two specialist dementia nurses.

In 2022 the charity ran a successful salary sacrifice programme with a further donation going to Dementia UK at the end of November 2022, of £29,717, and also a triathlon event in September that raised further matched funding, of £11,277, that was donated in October 2022.

In September 2022, the charity committee met and agreed a one-off donation to two charities directly supporting those people hardest hit by the fuel crisis in the UK. A due diligence process was kicked off and after careful consideration the two charities chosen were The Fuel Bank Foundation and The Trussell Trust. Each charity received a donation of £92,500 in November 2022.

Financial review

During 2022, the charity received £189,224 (2021: £228,951) in donations broken down as follows:

All funds are raised through internal activities with Invesco UK staff and so no disclosure around raising funds from the public is required.

Page 6

Report of the Trustees for the year ended 31 December 2022

The Invesco Cares Foundation

_________________

Fund performance

At 31 December 2022, the charity held investments to the value of £2,037,414 (2021: £2,055,540). The investment is held entirely in the Invesco Global Targeted Returns Fund. The charity reported a loss for the year on investments of £39,962 (2021: loss £27,180). The Trustees have discussed performance issues relating to the investment fund with its Portfolio Manager. We are of the opinion that these issues are surmountable and acknowledge that being exposed to the financial markets we would expect to see a certain amount of volatility/movement due to market performance.

The Trustees, based on the c its financial obligations for a period no less than 12 months from the date the financial statements are signed. Grant commitments are entirely at the discretion of the Trustees and charity committee. If there are no resources available then the charity is able to pause grant making in response. The financial statements are therefore prepared on a going concern basis.

Reserves policy

The charity receives an annual allocation of funding from Invesco UK and all running costs of the charity are met by Invesco UK disclosed in Note 2. At the end of the year, the charity held £2,124,451 in unrestricted funds (2021: £2,512,596). Restricted funds reserves are in relation to total donations receivable from Invesco UK. As a result, the charity has not set a minimum level of reserves to maintain.

Risk management

rating risks are addressed by procedures and controls which seek to ensure:

  1. investment policy;

  2. es;

  3. That only authorised expenditure is incurred and settled;

  4. That an appropriate distinction is maintained between restricted and unrestricted funds; and

  5. That counterparty default losses are mitigated by depositing funds with entities holding a credit rating of BB or above or open-ended investment companies.

The Trustees do not consider that there is significant liquidity risk as the charity receives an annual allocation of funding from Invesco UK and all running costs of the charity are met by Invesco UK. Furthermore, the fixed asset investment is held in a Pooled Investment Vehicle that is composed of Level 1 investments, as disclosed in Note 8, which are inherently liquid in nature, therefore reducing liquidity risks.

The committee has decided to keep a minimum cash balance of £50,000 in the charity bank account for liquidity purposes as set out in note 8.

Changes to our principal risks

Invesco UK is a principal contributor and service provider to the charity and has offered the following context: The impact of the war in Ukraine has been to create significant volatility within the global economy and financial markets, and Invesco UK has continued to focus on preserving their ability to serve their clients and appropriately manage client assets. This is no longer considered to be a principal risk in isolation from the wider macroeconomic environment, which incorporates the risks from inflationary pressures.

Page 7

Report of the Trustees for the year ended 31 December 2022

The Invesco Cares Foundation

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Risk management (continued)

Managing the risk from macro-economic instability

Invesco UK is also exposed to broad, macro external factors that may impact operations, strategic direction, financial position, regulatory landscape and/or market share. These include macroeconomic fluctuations (such as inflationary pressures), government policy changes and geopolitical events. Invesco UK has established robust systems, controls, and processes to encourage forward planning, anticipation, response to and recovery from such events in a coordinated and organized manner that prevents - and where prevention is not permissible - minimises the impact to their clients, the firm, and wider financial markets.

Investment policy

The investment policy adopted by the Trustees in March 2022 is as follows and still remains appropriate:

are maintained either in interest bearing bank accounts, sterling money market funds or other open-ended investment vehicles.

Cash is held within money market funds or interest-bearing bank accounts so that it is available to meet the cost of grants committed and planned. Cash surplus to this minimum requirement may be invested in other open-ended investment companies until required for planned distributions.

When investing surplus funds, the Trustees seek to balance a low appetite for capital loss with the desire to achieve a real rate of return. It is also important that such surplus funds are sufficiently liquid so that they are readily accessible when required.

The charity's cash balances are deposited with institutions with a minimum rating of BB or invested in a diversified money market fund.

Related party relationships

The charity considers Invesco UK Limited to be a related party, as the company provides the annual funding allocation to the charity, meets all the running costs of the charity and employs the staff who work on the charity as set out in Note 2.

Disclosure of information to auditors

The Trustees who held office at the date of approval of this Trustees Trustee has taken all the steps that he/she ought to have taken as a Trustee to make himself/herself aware

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The Invesco Cares Foundation

The Trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the Trustees and signed on their behalf by:

C. Bouch Trustee Date: 5 May 2023

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The Invesco Cares Foundation

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Cares Foundation

Report on the audit of the financial statements

Opinion

In our opinion,

We have audited the financial statements, included within the Report and financial statements (the comprise: the balance sheet as at 31 December 2022; the statement of financial activities and statement of cash flows for the year then ended; and the notes to the financial statements, which include a description of the significant accounting policies.

Basis for opinion

responsibilities under ISAs (UK) are further described in the Aud

statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remained independent of the charity in accordance with the ethical requirements that are relevant to our audit of the responsibilities in accordance with these requirements.

Conclusions relating to going concern

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, continue as a going concern for a period of at least twelve months from the date on which the financial statements are authorised for issue.

ting in the

preparation of the financial statements is appropriate.

ability to continue as a going concern.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Reporting on other information

The other information comprises all of the information in the Annual Report other than the financial statements and our does not cover the other information and, accordingly, we do not express an audit opinion or any form of assurance thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report based on these responsibilities.

Based on our work undertaken in the course of the audit, the Charities Act 2011 requires us also to report certain opinions and matters as described below.

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The Invesco Cares Foundation

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Under the Charities Act 2011 we are required to report to you if, in our opinion the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements. We have no exceptions to report arising from this responsibility.

Responsibilities for the financial statements and the audit

Responsibilities of the Trustees for the financial statements

As explained more fully in the , the trustees are responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The trustees are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

We are eligible to act and have been appointed as auditors under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of the charity, we identified that the principal risks of non-compliance with laws and regulations related to the Charities Act 2011 and relevant regulations made or having an effect thereunder, including the Charities (Accounts and Reports) Regulations 2008, and we considered the extent to which non-compliance might have a material effect on the financial statements. We evaluated the incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) by the trustees and those responsible for, or involved in, the preparation of the financial statements, and determined that the principal risks were related to posting inappropriate journals to manipulate financial results or conceal the misappropriation of assets and potential management bias in accounting estimates. Audit procedures performed included:

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the a

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The Invesco Cares Foundation

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Use of this report

section 144 of the Charities Act 2011 and regulations made under section 154 of that Act (Part 4 of The Charities (Accounts and Reports) Regulations 2008) and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Other required reporting

Charities Act 2011 exception reporting

Under the Charities Act 2011 we are required to report to you if, in our opinion:

We have no exceptions to report arising from this responsibility.

PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors London Date: 5 May 2023

Page 12

The Invesco Cares Foundation

Statement of Financial Activities for the year ended 31 December 2022

_____________

Note
Income from:
Donations
3
Total income
Expenditure on
charitable
activities:
Grant funding
5
Total expenditure
Net (expenditure)
/income before
(Loss)/Gain on
investments
Loss on
investments
8
Net (expenditure)/
income
Transfer between
funds
Net movement in
funds
Reconciliation of
funds:
Total funds brought
forward
Total funds
carried forward		 Unrestricted
funds
2022
£
174,366
174,366
522,549
522,549
(348,183)
(39,962)
(388,145)
-
(388,145)
2,512,596
2,124,451		 Restricted
funds
2022
£
14,858
14,858
34,858
34,858
(20,000)
-
(20,000)
-
(20,000)
20,000
-		 Total
funds
2022
£
189,224
189,224
557,407
557,407
(368,183)
(39,962)
(408,145)
-
(408,145)
2,532,596
2,124,451		 Unrestricted
funds
2021
£
208,951
208,951
421,929
421,929
(212,978)
(27,180)
(240,158)
-
(240,158)
2,752,754
2,512,596		 Restricted
funds
2021
£
20,000
20,000
-
-
20,000
-
20,000
-
20,000
-
20,000		 Total
funds
2021
£
228,951
228,951
421,929
421,929
(192,978)
(27,180)
(220,158)
-
(220,158)
2,752,754
2,532,596

All activities derive from continuing operations.

The accompanying notes on pages 16 to 24 form an integral part of these financial statements.

Page 13

The Invesco Cares Foundation Balance Sheet as at 31 December 2022

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Note
Fixed assets
Investments
8
Total fixed assets
Current assets
Debtors
9
Cash at bank and in hand
9
Total current assets
Creditors falling due within one year
10
Net current assets
Net assets
The funds of the charity
Restricted income funds
12
Unrestricted income funds
12
Total charity funds		 Total funds
2022
£
2,037,414
2,972,511
037 4 4
-
92,802
92,802
(5,765)
87,037
2,124,451
-
2,124,451
2,124,451		 Total funds
2021
£
2,055,540
3,002,003
2 55 540
20,000
462,056
482,056
(5,000)
477,056
2,532,596
20,000
2,512,596
2,532,596

The accompanying notes on pages 16 to 24 form an integral part of these financial statements.

The financial statements on pages 13 to 24 were approved and signed on behalf of the Trustees by:

C. Bouch Trustee Date: 5 May 2023

Page 14

The Invesco Cares Foundation

Statement of Cash Flows for the year ended 31 December 2022

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Analysis of changes in net debt
2022
£
Cash Flows
£
Cash and cash equivalents
92,802
(369,254)
Analysis of changes in net debt
2021
£
Cash Flows
£
Cash and cash equivalents
462,056
257,227
Note
Total Funds
2022
£
Reconciliation of movement in funds to net
cash flow from operating activities:
Net movement in funds
(408,145)
Losses on investments
39,962
Decrease/ (increase) in debtors
9
20,000
Increase/ (decrease) in creditors
10
765
Net cash used in operating activities
(347,418)
Cash flows from investing activities:
Purchase of investment
Sale of investment
8
8
(21,836)
-
Net cash generated (used in)/ from investing
activities
(21,836)
Change in cash and cash equivalents in the
year
(369,254)
Cash and cash equivalents brought forward
462,056
Cash and cash equivalents carried forward
9
92,802		 Total Funds
2021
£
(220,158)
27,180
(18,200)
(4,446)
(215,624)
(27,149)
500,000
472,851
257,227
204,829
462,056
2021
£
462,056
2020
£
204,829

Page 15

The Invesco Cares Foundation Notes to the financial statements for the year ended 31 December 2022

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General information

The Charity is registered with the Charity Commission in England and Wales. Its registered address is: Invesco, Perpetual Park, Perpetual Park Drive, Henley-On-Thames, Oxfordshire, RG9 1HH

1. Accounting policies

A summary of the principal accounting policies, all of which have been applied consistently throughout the current and the preceding year, are set out below.

a) Basis of preparation and assessment of going concern

These financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these financial statements. The financial statements have been prepared in accordance with the Charities SORP (FRS 102) second edition - October 2019 and the Charities Act 2011.

The charity constitutes a public benefit entity as defined by FRS 102.

The Trustees a going concern. The charity has significant financial reserves at the end of the reporting period which will enable it to continue to perform its charitable activities in future years. The charity receives an annual allocation of funding from Invesco UK and all running costs of the charity are met by Invesco UK.

b) Funds structure

The charity holds during the year both restricted and unrestricted funds. All income raised by individuals to support a specific charity other than The Invesco Cares Foundation is shown in restricted funds, this can be through individuals raising money that is matched by the charity. At the end of the financial year the balance held in restricted funds amounted to £Nil (2021: £20,000).

c) Income recognition

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received, and the amount of income receivable can be measured reliably.

Donations are recognised when they have been communicated in writing with notification of both the amount and settlement date.

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The Invesco Cares Foundation Notes to the financial statements for the year ended 31 December 2022 (continued)

________________

1. Accounting policies (continued)

Interest on funds held on deposit is included as investment income when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

d) Charitable activities

The expenditure on charitable activities includes grant funding, as shown in Note 5.

e) Expenditure recognition

Expenditure is recognised as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. All expenditure is accounted for on an basis. The charity incurs support costs in the form of accountancy services. The charity does not incur any support costs directly, but staff costs and the audit fee are borne by Invesco UK and donated to the charity.

Grants payable are payments made to third parties in the furtherance of the charitable objects of the charity. All grants are made on the basis of an unconditional grant offer which is accrued once the recipient has been notified of the grant award. The notification gives the recipient a reasonable expectation that they will receive the grant.

f) Donated goods or services

Certain costs are met by Invesco UK on behalf of the charity. These include staff costs, audit fees and costs associated with hosting charitable events. These amounts are included in income as donated services from Invesco UK and are recognised when the charity has entitlement to the income, there is sufficient certainty of receipt and it is probable that the income will be received, and the amount of income receivable can be measured reliably. An equivalent amount is also recognised as an expense within the statement of financial activities under Expenditure on charitable activities.

g) Allocation of support costs

, accountancy services and staff costs which are borne by Invesco UK and donated to the charity. Support costs are allocated pro rata to the grants awarded through unrestricted funds. No support costs are allocated to restricted funds.

h) Financial instruments

The investments within the financial statements are a form of basic financial instrument.

Investments are comprised of an investment in a Pooled Investment fund operated by Invesco UK. Investments are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing market price.

The Charity does not acquire put options, derivatives or other complex financial instruments.

The Statement of Financial Activities includes the net gains and losses arising on revaluation throughout the year.

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The Invesco Cares Foundation

Notes to the financial statements for the year ended 31 December 2022 (continued)

________________

1. Accounting policies (continued)

i) Income tax exemption

The Invesco Cares Foundation, as a registered charity, is exempt from income tax under part 10 of the Income Tax Act 2007 or Section 256 of the Taxation of the Chargeable Gains Act 1992, to the extent that surpluses are applied to its charitable purposes.

j) Investments

The Foundation has elected to apply the provisions of Section 11 and Section 12 of FRS 102 in full Investments in pooled funds are included on the Balance Sheet at fair value which is their closing bid price on the current or previous trading day as provided by the investment manager.

Realised gains and losses on disposals in the year and unrealised gains and losses on investments at the Balance Sheet date are included in the Statement of Financial Activities for the relevant underlying funds. All investment income is reinvested in the fund.

k) Critical estimates and judgements

In preparing these financial statements, the Trustees have made judgements, estimates and assumptions that affect the application of the charities accounting policies and the reported assets, liabilities, income and expenditure and the disclosures made in the financial statements. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Trustees consider that there are no critical estimates or judgements. However, the most significant items of judgement identified by the Trustees are as follows.

The only significant estimate involved in the preparation of these financial statements is the allocation of a proportion of employee time from Invesco UK to the charity, which is shown as donated services from Invesco UK and as support costs. The values allocated are based on an estimate by individual of the proportion of total time spent on Invesco Cares; details of this allocation are included in Note 5.

The only estimate that has a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year is related to the valuation of the Foundatio investments. Explanation of the method for determining the valuation of investments is included within the investments accounting policy above and within note 8. The valuation of the investments held used the unit price provided by Invesco Fund Managers Limited, the Authorised Corporate Invesco Global Targeted Returns Fund as at 31 December 2022. The ACD is considered to have sufficient and appropriate valuation controls in place to determine the unit price of the fund based on the underlying holdings.

2. Related party transactions and Trustees

The Trustees all give freely of their time and expertise without any form of remuneration or other benefit in cash or kind (2021: £nil). No expenses were paid to the Trustees during the year (2021: £nil).

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The Invesco Cares Foundation

Notes to the financial statements for the year ended 31 December 2022 (continued)

________________ 2. continues

During the year, the charity received £89,858 (2021: £112,450) from Invesco UK. £14,858 (2021: £20,000) of this balance which has been classed as restricted income as shown in Note 3 relates to money donated to the Foundation by Invesco UK to be paid out to the new Charity partner.

The charity also received donated services valued at £74,760 from Invesco UK during the year of which £28,000 relates to the auditors fee shown in Note 7 (2021: £84,047 of which £25,500 relates to the auditors fee shown in Note 7) and £21,837 from Invesco Fund Managers Limited (2021: £27,149) in relation to a management fee rebate for the investment fund as shown in Note 3.

The charity receives donations from other Invesco Group companies for certain legacy client money. During the year, the charity received £2,769 of legacy client money donations (2021: £5,305) which was paid to the charity by Invesco Fund Managers Limited. There are no outstanding balances for these transactions.

3. Income from donations

Donations received from
Invesco UK
Services donated by
Invesco UK
Invesco Fund Managers
Limited fee rebate
Legacy client money
donations
Total income from
donations		 Unrestricted
funds
2022
£

75,000
74,760
21,837
2,769
174,366		 Restricted
funds
2022
£
14,858
-
-
-
14,858		 Total
funds
2022
£
89,858
74,760
21,837
2,769
189,224		 Unrestricted
funds
2021
£
92,450
84,047
27,149
5,305
208,951		 Restricted
funds
2021
£
20,000
-
-
-
20,000		 Total
funds
2021
£
112,450
84,047
27,149
5,305
228,951

4. Allocation of support costs

A breakdown of support costs is shown in the table below.

Basis of apportionment
Staff costs (Note 6)
Based on grant value
7)
Based on grant value
Accountancy
Based on grant value
Total support costs		 2022
£
31,775
28,000
14,985
74,760		 2021
£
39,647
25,500
12,900
78,047

Page 19

The Invesco Cares Foundation

Notes to the financial statements for the year ended 31 December 2022 (continued)

________________

4. Allocation of support costs continued

The total support costs attributable to charitable activities is then apportioned pro rata to the value of grants awarded as shown in the table below. The charity allocates all support costs to unrestricted funds.

Grants to small local charities

Grants to Charity of the Year
Grants for employee matching
Total allocated		 2022
£
58,260
-
16,500
74,760		 2021
£
25,120
48,785
4,142
78,047

5. Grant funding

The charity undertakes its charitable activities through grant making and awarded grants to a number of charities and institutions in furtherance of its charitable activities.

Grants to
institutions
Support
costs
2022
2022
£
£
Funded from unrestricted funds:
Grants to small local
charities
348,961
58,260
Grants to Charity of the
Year programme grants
-
-
Grants for employee
matching
98,828
16,500
Total funded from
unrestricted funds
447,789
74,760
Funded from restricted funds:
Grants to Charity of the
Year
34,858
-
Total grant funding of
activities
482,647
74,760*		 Total
Grants to
institutions
Support
costs
Total
2022
2021
2021
2021
£
£
£
£
407,221
110,685
25,120 135,805
-
214,950
48,785 263,735
115,328
18,247
4,142
22,389
522,549
343,882
78,047 421,929
34,858
-
-
-
557,407
343,882
78,047
421,929*		 Total
Grants to
institutions
Support
costs
Total
2022
2021
2021
2021
£
£
£
£
407,221
110,685
25,120 135,805
-
214,950
48,785 263,735
115,328
18,247
4,142
22,389
522,549
343,882
78,047 421,929
34,858
-
-
-
557,407
343,882
78,047
421,929*

Grants paid to small local charities and for employee matching are paid to a number of different charitable institutions. The largest single donation made to two institution were £92,500 to Fuel Bank Foundation and £92,500 to The Trussell Trust (2021: £35,653 to CALM).

The Charity of the Year for 2022 was Dementia UK (2021: CALM).

Grants to institutions have been awarded as follows:

Page 20

Notes to the financial statements for the year ended 31 December 2022 (continued)

The Invesco Cares Foundation

________________

5. Grant funding continued

Grants paid out to the other 111 (2021: 99) charities are below the value of £10,000. Out of the 113 charities 5 (2021: 3 charities) of those charities during the financial year were paid an amount equal or above £10,000. The remaining charities were paid between £500 - £10,000 which is in

Institution
Fuel Bank Foundation
The Trussell Trust
Dementia UK
Ukraine Appeal
The Sanata Charitable Trust
Other 108 charities
Total 2022 Grants
Institution
CALM
Dementia UK
Oxford Hospitals Charity
Refuge Against Domestic Violence
Into Uni
Blood Cancer UK
Multiple Sclerosis Society
Grants to 91 other charities
Total 2021 Grants		 2022
£
92,500
92,500
64,298
18,139
10,000
205,210
482,647
2021
£
35,653
32,000
30,000
30,000
10,000
10,000
10,000
186,229
343,882

As at the 31 December 2022 the foundation has recognised five grant commitments amounting to £5,765. The five selected charities were advised of being successful selected for a grant, however, were not paid until after the financial year end 31 December 2022. Of the £5,765 amount accrued, £2,500 is payable to Inspirations, £1,190 is payable to Sacred Heart PTA, £1,075 is payable to Prostate Cancer UK, £500 is payable to Corinne Burton Memorial and £500 is payable to Youth Space.

6. Analysis of staff costs and remuneration of key management personnel

Salaries and wages
Other employee benefits
Social security costs
Other pension costs		 2022
£
24,607
897
2,900
3,371
31,775		 2021
£
29,556
2,794
3,429
3,868
39,647

Page 21

The Invesco Cares Foundation Notes to the financial statements for the year ended 31 December 2022 (continued)

________________

6. Analysis of staff costs and remuneration of key management personnel continued

The average number of employees during the year was 1 (2021: 1) with all employee time involved in providing support to charitable activities and the governance of the charity. Amounts shown above are the costs of those staff which is recognised as a donation of services from Invesco UK and corresponding expense. No employees had employee benefits in excess of £60,000 during the year (2021: none. The charity considers its key management personnel comprises the Trustees. No remuneration or expenses were paid to the Trustees during the year.

7. ion

eration is borne by Invesco UK and is treated as a donated service for the charity, recognised as income and a corresponding expense referred to in Note 2

The audit fee payable for the audit of the financial statements is £28,000 (2021: £25,500).

8.

Fixed asset investments

Fair value at 1 January
Purchased investments
Disposals at carrying value
Net investment loss
Fair value at 31 December		 2022
£
2,055,540
21,836
-
(39,962)
2,037,414		 2021
£
2,555,571
27,149
(500,000)
(27,180)
2,055,540

The opening market value of the investments at 1 January 2022 was £2,055,540 (2021: £2,555,571). Purchases are comprised of investment by the Charity of £nil (2021: £nil) and donated asset management services of £21,836 (2021: £27,149) which were received in the form of gifted additional units in the investment fund.

At 31 December 2022, the Charity held investments to the value of £2,037,414 (2021: £2,055,540). The investment is held entirely in a Pooled Investment Fund operated by Invesco UK. As this is an asset held in an investment vehicle for which an active price is available from the investment manager, this is classified as Level 1 in the fair value hierarchy. This means that it is valued using quoted prices in active markets for identical assets.

Risks arising from financial instruments

The different forms of risks in relation to financial instruments have been assessed as follows:

risk and therefore further disclosure is not required.

Liquidity risk: Liquidity risk is the risk that the Foundation may be unable to generate sufficient cash to meet its payment obligations as they fall due. The relatively liquid nature of the investments held by the Foundation are such that the risk of insufficient liquidity is low.

Page 22

The Invesco Cares Foundation

Notes to the financial statements for the year ended 31 December 2022 (continued)

________________

8. Fixed asset investments continued

Market risk: There exists a risk linked exposure to financial markets which could lead to a decline in the value of the fund into which the charity invests. To manage this risk, the charity is invested in the Invesco Global Targeted Returns Fund which is a single pooled fund which is invested across a diverse range of assets. This diversified holding spreads the risk of market movements.

As the charity is only invested in the single pooled fund, if there is a 10% fall in the price of the Invesco Global Targeted Returns Fund, this would lead to a 10% decline (2021: 10% decline) in the value of the Foundation's investments which is equivalent to £203,741 as at 31 December 2022 (2021: £205,554).

9. Analysis of current assets

Accrued income
Cash at bank

10.
Creditors falling due within one year
Grants payable		 2022
£
-
92,802
92,802
2022
£
5,765
5,765		 2021
£
20,000
462,056		 2021
£
20,000
462,056
482,056
2021
£
5,000
5,000

11. Analysis of charitable funds

2022
Unrestricted funds
Restricted
Charity of
the Year
Total funds		 Balance
brought
forward
£
2,512,596
20,000
2,532,596		 Income
Expenditure
Losses on
investments
Transfers
£
£
£
£
174,366
(522,549)
(39,962)
-
14,858
(34,858)
-
-
189,224
(421,929)
(39,962)
-		 Fund
carried
forward
£
2,124,451
-
2,124,451

Page 23

The Invesco Cares Foundation

Notes to the financial statements for the year ended 31 December 2022 (continued)

________________

11. Analysis of charitable funds continued

2021
Unrestricted funds
Restricted
Charity of
the Year
Total funds		 Balance
brought
forward
£
2,752,754
-
2,752,754		 Income
Expenditure
Losses on
investments
Transfers
£
£
£
£
208,951
(421,929)
(27,180)
-
20,000
-
-
-
228,951
(421,929)
(27,180)
-		 Fund
carried
forward
£
2,512,596
20,000
2,532,596

The amounts allocate to restricted funds are specially related to funds donated from Invesco UK, the donated amount is then forward onto the selected charity partner. The selected charity partner for financial year 2022 was Dementia UK. At the end of the financial year the balance held in restricted funds amounted to £Nil (2021: £20,000).

12. Analysis of net assets between funds

Investments
Debtors
Cash at bank
Current liabilities
Net assets		 Unrestricted
funds
2022
£
2,037,414
-
92,802
(5,765)
2,124,451		 Restricted
funds
2022
£
-
-
-
-
-		 Total funds
2022
£
2,037,414
-
92,802
(5,765)
2,124,451		 Unrestricted
funds
2021
£
2,055,540
-
462,056
(5,000)
2,512,596		 Restricted
funds
2021
£
-
20,000
-
-
20,000		 Total
funds
2021
£
2,055,540
20,000
462,056
(5,000)
2,532,596

Page 24