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2023-12-31-accounts

Charity number: 326583

THE INVESCO CARES FOUNDATION

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

CONTENTS

Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 1
Trustees' Report 2 - 9
Statement of Trustees’ Responsibilities 10
Independent Auditors' Report 11 - 13
Statement of Financial Activities 14
Balance Sheet 15
Statement of Cash Flows 16
Notes to the Financial Statements 17 - 30

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2023

Trustees C. Bouch
J. Huysinga
G. Proudfoot
Charity number 326583
Principal office Perpetual Park
Perpetual Park Drive
Henley-on-Thames
Oxfordshire
RG9 1HH
Accountants Haysmacintyre LLP
10 Queen Street Place
London
EC4R 1AG
Independent auditors PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
1 Embankment Place
London
WC2R 6RH
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

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TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2023

The Trustees present their annual report on the affairs of The Invesco Cares Foundation ("Charity" or “Foundation”) for the year ended 31 December 2023.

The Charity is a charitable trust, governed by Trustees and led by the Invesco Cares Committee (“the committee”). The Charity is run by staff of Invesco UK Limited (“Invesco UK”), a subsidiary of Invesco Ltd.

Objective and activities

The Foundation works on behalf of Invesco UK’s employees to provide help to the local 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 Foundation's funds for 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.

At the end of 2023, staff nominated and subsequently voted in the Rainbow Trust Children’s Charity as Invesco UK’s new partner for 2024/25. During 2023, Invesco, its staff and the Foundation raised £33,722 in matched funding for Dementia UK. Office fundraising events, including salary sacrifice, raised a further £32,086; and all direct donations through fundraising platforms set up by staff in 2023 were £7,360. Including all funds raised for the charity in 2022, (£122,497), Invesco raised a total of £190,259 over the two years to fund two specialist dementia nurses in the South East of England.

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TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Criteria for consideration for grant funding to small local charities

The committee meets to review all 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 Charity works on behalf of Invesco UK’s employees to provide help to the local 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.

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:

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TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Aims and objectives of the Charity

The Charity intends to raise funds to make a lasting difference to UK charities and to share those successes with staff.

Each year funds are raised for a charity partner through various fundraising events, sporting challenges and salary sacrifice campaigns. In 2023, a salary sacrifice campaign and the annual triathlon challenge took place, raising over £45,683.

The Charity aims to engage Invesco UK staff in Invesco Cares activities in at least one of the following ways:

The charity committee will annually review and measure its success in achieving these aims by monitoring volunteering days, evaluating staff participation in events and logging all requests for employee matched funding. This review will be reported to the Trustees. The committee are currently satisfied that the aim to engage staff, in the activities associated with the Charity, are being met.

Achievements and performance

In 2023 the Charity made donations to 137 (2022: 112) different charitable organisations in addition to the Charity of the Year.

The Charity of the Year partnership operated for a successful ninth year during 2023, with staff and the Charity raising £190,259 in total for Dementia UK over the past two years. The fundraising has allowed Dementia UK to employ two new specialist dementia nurses in the South East of England.

In September 2023, the Charity's triathlon event raised £24,324, which was donated to Dementia UK in October 2023. Also in October 2023, a successful salary sacrifice programme and match funding raised £21,253 that was donated to Dementia UK in November 2023.

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TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Financial review

During 2023, the Charity received £194,603 (2022: £189,224) 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.

Fund performance

The Charity's investment in the Invesco Global Targeted Returns Fund made a gain of £100,633 (2022: loss £29,962) during the year and at year end was valued at £1,659,315 (2022: £2,037,414). Since year end the Charity’s investments have been moved to the Invesco Money Fund (UK). See investment policy page 7.

The Trustees, based on the Charity’s financial projections and present resources, are satisfied it can meet 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 the 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 and disclosed in Note 3. At the end of the year, the Charity held £1,909,654 in unrestricted funds (2022: £2,124,451). Restricted funds reserves are in relation to donations received from Invesco UK. The Charity has not set a minimum level of reserves to maintain.

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TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Principal risks and Risk management

The Trustees do not consider that there is significant liquidity risk as the Charity receives an annual allocation of funding from Invesco UK. All running costs of the Charity are met by Invesco UK, a minimum cash balance of £50,000 is maintained, and monies invested are held in an open ended pooled investment vehicle.

Invesco UK is a principal contributor and service provider to the Charity. It is also the provider of all the systems and investment processes that the Charity uses for its day to day running.

With this context, Invesco UK has provided the following:

Managing the risk from macro-economic instability

Invesco UK is 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 market.

Managing the risk of climate change

Invesco's UK commitment to ESG investing ensures that climate change considerations are integrated into their investment decisions, and the importance they place on ESG has led them to launch structural governance oversight, comprising a Corporate Responsibility Committee (“CRC”), the Corporate Responsibility Committee Working Group and ESG Regional Working Groups. These groups are responsible for monitoring climate related issues and opportunities and acting upon them. An ESG risk appetite which directs the risk-taking, management and governance of ESG risks has been approved by the board during the year.

We have defined a framework for Environmental Management System (“EMS”) Governance to address the risk of climate change within our operations. To ensure the effective management and continuous improvement of Invesco’s EMS, we assigned operational EMS responsibilities to Corporate Properties, supported by local facilities teams and subcontracted services.

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TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Investment policy

There are no restrictions on the Trustee's discretion to invest the Charity's funds. However, in practice, all funds are maintained either in interest bearing bank accounts, sterling money market funds or other open-ended investment companies.

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 openended 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 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.

In September 2023, Invesco UK announced that, subject to receiving authorisation from the FCA, the GTR fund would close and monies returned to investors. At an early stage the Trustees met with representatives from Invesco’s Multi-Asset Strategies Group to discuss the closure process and alternative investment opportunities that would align with the Charity’s objectives. The Trustees concluded that given current and forecast economic conditions it would be appropriate to hold the Charity’s assets in a diversified money market fund pending a further strategic review in Q3 2024. In line with this decision the monies previously invested in the GTR fund were invested in the Invesco Money Fund (UK) on 22 February 2024.

The Invesco Money Fund (UK)’s objective is to achieve a return combined with maintenance of capital. It invests at least 80% of its assets in Sterling-denominated money-market instruments (including qualifying short-term debt instruments) as well as deposits. In pursuing the investment objective, the fund manager may consider it appropriate to also invest in other transferable securities and permitted investments. Where positions are held in government, quasi-government and corporate bonds, the exposure to interest rate risk and credit risk is limited as such holdings are both short dated and high credit quality. As at 31 March 2024 the fund’s investment categories were cash & cash equivalents 82.7%, investment grade bonds 6.5%, securitized holdings 5.5% and government/agency 5.3%. At the same date the total number of holdings was 26, weighted average maturity 60 days, and weighted average duration 0.16.

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 8.

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TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Structure, governance and management

The Charity is registered in the UK with registered charity number 326583 and is constituted under a trust deed dated 1st February 1984, as amended by resolutions dated 19/07/2010 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 the Head of Corporate Social Responsibility (CSR) and a team of 9 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 adopted for the induction and training of 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, setting out their duties and the charity’s expectations of them. The prospective Trustee is asked to sign and return a copy of the letter.

An information pack including the charity’s governing document and other details about the Charity is sent to the prospective Trustee, along with the guide “The essential Trustee: what you need to know (CC3)”.

A full induction is arranged with the Head of CSR 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.

Disclosure of information to auditors

The Trustees who held office at the date of approval of this Trustees’ report confirm that, so far as they are each aware, there is no relevant audit information of which the Charity’s auditors are unaware; and each Trustee has taken all the steps that he/she ought to have taken as a Trustee to make himself/herself aware of any relevant audit information and to establish that the charity’s auditors are aware of that information.

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Approved by order of the members of the board of Trustees and signed on their behalf by:

J. Huysinga Trustee Date:

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

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

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

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

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and 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 order of the members of the board of Trustees and signed on its behalf by:

J. Huysinga Trustee Date:

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INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE INVESCO CARES FOUNDATION

Independent auditors’ report to the trustees of The Invesco Cares Foundation

Report on the audit of the financial statements

Opinion

In our opinion, The Invesco Cares Foundation’s financial statements (the “financial statements”):

We have audited the financial statements, included within the Trustees’ Report and financial statements (the “Annual Report”), which comprise: the balance sheet as at 31 December 2023; 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

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial 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 financial statements in the UK, which includes the FRC’s Ethical Standard and we have fulfilled our other ethical 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, individually or collectively, may cast significant doubt on the charity’s ability to 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.

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the charity’s 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.

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INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE INVESCO CARES FOUNDATION (CONTINUED)

Reporting on other information

The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report thereon. The trustees are responsible for the other information. Our opinion on the financial statements 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.

Trustees’ Report

Under the Charities Act 2011 we are required to report to you if, in our opinion the information given in the Trustees’ Report 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 Statement of Trustees’ Responsibilities, 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.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditors’ responsibilities for the audit of the financial statements

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 misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

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 risk was related to the use of inappropriate journals to manipulate financial results or conceal the misappropriation of assets. Audit procedures performed included:

INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE INVESCO CARES FOUNDATION (CONTINUED)

identifying and testing journal entries, in particular journal entries posted with unusual account combinations to income or cash accounts;

obtaining independent confirmations for investments and cash as at 31 December 2023;

enquiring of management and the board of trustees, including consideration of known or suspected instances of non- compliance with laws and regulation and fraud; reading minutes of meetings of the board of trustees; and

assessing financial statement disclosures, and testing to supporting documentation, for compliance with applicable laws and regulations.

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 audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.

Use of this report

This report, including the opinions, has been prepared for and only for the charity’s trustees as a body in accordance with 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 not received all the information and explanations we require for our audit; or

sufficient accounting records have not been kept by the charity; or

the financial statements are not in agreement with the accounting records.

We have no exceptions to report arising from this responsibility.

PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors London 16 May 2024

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STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023

Note
Income from:
Donations and
legacies
4
Investments
6
Total income
Expenditure
on:
Charitable
activities
7
Total
expenditure
Net
expenditure
before net
gains/(losses)
on
investments
Net
gains/(losses)
on investments
Total transfers
Net movement
in funds
Reconciliation
of funds:
Total funds
brought forward
Net movement
in funds
Total funds
carried
forward		 Restricted
Funds
2023
£
11,961
-
11,961
11,961

11,961
-
-

-
-

-
-

-
 Unrestricted
Funds
2023
£
175,378
7,264		 Total
Funds
2023
£
187,339
7,264
194,603
510,033
510,033
(315,430)
100,633
-
(214,797)
2,124,451
(214,797)

1,909,654		 Restricted
Funds
2022
£
14,858
-
14,858
34,858
34,858
(20,000)
-
-
(20,000)
20,000
(20,000)
-		 Unrestricted
Funds
2022
£
174,366
-
174,366		 Total
Funds
2022
£
189,224
-
189,224

182,642
498,072 522,549
522,549		 557,407
498,072 557,407
(315,430)
100,633		 (348,183)
(39,962)
-
(388,145)
2,512,596
(388,145)
2,124,451
 (368,183)
(39,962)
- -
(408,145)
(214,797)
2,124,451
(214,797)
2,532,596
(408,145)
1,909,654
 2,124,451

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 17 to 30 form part of these financial statements.

BALANCE SHEET AS AT 31 DECEMBER 2023

2023 2022
Note £ £
Fixed assets
Investments 10 1,659,314 2,037,414
1,659,314 2,037,414
Current assets
Cash at bank and in hand 250,340 92,802
250,340 92,802
Creditors: amounts falling due within one
year 11 - (5,765)
Net current assets 250,340 87,037
Total assets less current liabilities 1,909,654 2,124,451
Net assets 1,909,654 2,124,451
Total net assets 1,909,654 2,124,451
Charity funds
Unrestricted funds 12 1,909,654 2,124,451
Total funds 1,909,654 2,124,451

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

J. Huysinga Trustee Date:

The notes on pages 17 to 30 form part of these financial statements.

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Note £ £
Cash flows from operating activities
Net cash used in operating activities 15 (342,462) (347,418)
Cash flows from investing activities
Proceeds from sale of investments 500,000 -
Purchase of investments - (21,836)
Net cash provided by/(used in) investing activities 500,000 (21,836)
Cash flows from financing activities
Net cash provided by financing activities - -
Change in cash and cash equivalents in the year 157,538 (369,254)
Cash and cash equivalents at the beginning of the year 92,802 462,056
Cash and cash equivalents at the end of the year 16 250,340 92,802
The notes on pages 17 to 30 form part of these financial statements

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

1. 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.

2. 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.

2.1 Basis of preparation of financial statements

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 to give a ‘true and fair view’ and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’.

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

The Trustees consider that there are no material uncertainties about the Charity’s ability to continue as 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.

2.2 Funds structure

The Charity may hold 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 (2022: £Nil).

2.3 Income

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.

2.4 Charitable activities

The expenditure on charitable activities includes grant funding, as shown in Note 8.

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

2. Accounting policies (continued)

2.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

2.6 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. Donated services are measured at cost. 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.

2.7 Allocation of support costs

Support costs consist of the auditors’ remuneration, 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.

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

2. Accounting policies (continued)

2.9 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.

2.10 Interest receivable

Interest on funds held on deposit is included 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 institution with whom the funds are deposited.

2.11 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.

2.12 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 the Foundation's activities; details of this allocation are included in Note 8.

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 Foundation’s investments. Explanation of the method for determining the valuation of investments is included within the investments accounting policy above and within Note 10. The valuation of the investments held used the unit price provided by Invesco Fund Managers Limited, the Authorised Corporate Director (“ACD”) of the Invesco Global Targeted Returns Fund as at 31 December 2023. 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.

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

2. Accounting policies (continued)

3. Related party transactions and Trustees’ expenses and remuneration

The Trustees all give freely of their time and expertise without any form of remuneration or other benefit in cash or kind (2022: £nil). No expenses were paid to the Trustees during the year (2022: £nil).

During the year, the Charity received £86,961 (2022: £89,858) from Invesco UK. £11,961 (2022: £14,858) of this balance which has been classed as restricted income as shown in Note 4 relates to money donated to the Foundation by Invesco UK to be paid out to the Charity of the Year partner.

The Charity also received donated services valued at £79,010 from Invesco UK during the year of which £29,680 relates to the auditors’ fee shown in Note 8 (2022: £74,760 of which £28,000 relates to the auditors’ fee shown in Note 8) and £21,267 from Invesco Fund Managers Limited (2022: £21,837) in relation to a management fee rebate for the investment fund as shown in Note 10.

The Charity receives donations from other Invesco Group companies for certain legacy client money. During the year, the Charity received £83 of legacy client money donations (2022: £2,769) which was paid to the Charity by Invesco Fund Managers Limited. There are no outstanding balances for these transactions.

4. Income from donations

Donations received from Invesco UK
Legacy client money donations
Grants
Services donated by Invesco UK
Invesco Fund Managers Limited fee rebate
Total 2023		 Restricted
funds
2023
£
11,961
-
-
-
-
11,961		 Unrestricted
funds
2023
£
75,000
83
18
79,010
21,267
175,378		 Total
funds
2023
£
86,961
83
18
79,010
21,267
187,339

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

4. Income from donations (continued)

Donations received from Invesco UK
Legacy client money donations
Services donated by Invesco UK
Invesco Fund Managers Limited fee rebate
Total 2022		 Restricted
funds
2022
£
14,858
-
-
-
14,858		 Unrestricted
funds
2022
£
75,000
2,769
74,760
21,837
174,366		 Total
funds
2022
£
89,858
2,769
74,760
21,837
189,224

5. Auditors' remuneration

The auditors’ remuneration 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 3.

The audit fee payable for the audit of the financial statements is £29,680 (2022: £28,000).

6. Investment income

Unrestricted Total Total
funds funds funds
2023 2023 2022
£ £ £
Investment income 7,264 7,264 -

7. Analysis of expenditure on charitable activities

Summary by fund type

Grants to small local charities
Grants to Charity of the Year
Grants for employee matching
Total 2023		 Restricted
funds
2023
£
-
11,961
-
11,961		 Unrestricted
funds
2023
£
391,695
58,853
47,524
498,072		 Total
2023
£
391,695
70,814
47,524
510,033

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

7. Analysis of expenditure on charitable activities (continued)

Summary by fund type (continued)

Restricted Unrestricted
funds funds Total
2022 2022 2022
£ £ £
Grants to small local charities - 407,221 407,221
Grants to Charity of the Year 34,858 - 34,858
Grants for employee matching - 115,328 115,328
Total 2022 34,858 522,549 557,407

8. Analysis of expenditure by activities

Grant
funding of Support Total
activities costs funds
2023 2023 2023
£ £ £
Grants to small local charities 331,017 60,678 391,695
Grants to Charity of the Year 59,844 10,970 70,814
Grants for employee matching 40,162 7,362 47,524
Total 2023 431,023 79,010 510,033
Grant
funding of Support Total
activities costs funds
2022 2022 2022
£ £ £
Grants to small local charities 348,961 58,260 407,221
Grants to Charity of the Year 34,858 - 34,858
Grants for employee matching 98,828 16,500 115,328
Total 2022 482,647 74,760 557,407

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

8. Analysis of expenditure by activities (continued)

Grants have been awarded as follows:

2023
Institution £
Mental Health UK 30,000
Rainbow Trust 30,000
PACT 30,000
Dementia UK (the Foundation's Charity of the year) 68,621
Helen & Douglas House 10,000
London's Air Ambulance 10,000
We3Can 10,000
Other 131 charities
£10,000)		 (donations between £500 and 242,402
Total 2023 Grants 431,023
2022
Institution £
Fuel Bank Foundation Fuel Bank Foundation 92,500
The Trussell Trust 92,500
Dementia UK (the Foundation's Charity of the Year) 64,298
Ukraine Appeal 18,139
The Sanata Charitable Trust 10,000
Other 108 charities (donations between £500 and 205,210
£10,000)
Total 2022 Grants 482,647

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

8. Analysis of expenditure by activities (continued)

Analysis of support costs

Total Total
funds funds
2023 2022
£ £
Staff costs (Note 9) 33,647 30,878
Other employee benefits 1,083 897
Auditors' remuneration 29,680 28,000
Accountancy 14,600 14,985
Total 2023 79,010 74,760

Total 2023

Allocating support costs are based on grant value.

.

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.

2023 2022
£ £
Grants to small local charities 60,678 58,260
Grants to Charity of the Year 10,970 -
Grants for employee matching 7,362 16,500
79,010 74,760

9. Staff costs

2023 2022
£ £
Wages and salaries 26,933 24,607
Social security costs 3,055 2,900
Other pension cost 3,659 3,371
Other employee benefits 1,083 897
34,730 31,775

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

9. Staff costs (continued)

The average number of employees during the year was 1 (2022: 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 (2022: none). The Charity considers its key management personnel comprises the Trustees. No remuneration or expenses were paid to the Trustees during the year.

10. Fixed asset investments

Listed
investments
£
Fair value at 1 January
At 1 January 2023 2,037,414
Reinvested rebate 21,267
Disposals at carrying value (500,000)
Net investment gain 100,633
At 31 December 2023 1,659,314
Net book value
At 31 December 2023 1,659,314
At 31 December 2022 2,037,414

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

10. Fixed asset investments (continued)

The opening market value of the investments at 1 January 2023 was £2,037,414 (2022: £2,055,540). Purchases are comprised of investment by the Charity of £nil (2022: £nil) and donated asset management services of £21,267 (2022: £21,837) which were received in the form of gifted additional units in the investment fund.

At 31 December 2023, the Charity held investments to the value of £1,659,314 (2022: £2,037,414). The investment was held entirely in a Pooled Investment Fund operated by Invesco UK. As this was an asset held in an investment vehicle for which an active price is available from the investment manager, it 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:

Credit risk: The carrying value above represents the Foundation's maximum exposure to 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.

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 was invested in the Invesco Global Targeted Returns Fund which was a single pooled fund that invested across a diverse range of assets. Such diversification of holding spread the risk of market movements.

As the Charity was only invested in the single pooled fund, if there had been 10% fall in the price of the Invesco Global Targeted Returns Fund, this would lead to a 10% decline (2022: 10% decline) in the value of the Foundation's investments, which was equivalent to £165,931 as at 31 December 2023 (2022: £203,741).

As explained in note 18 post year end the Charity’s investments were moved to the Invesco Money Fund (UK).

11. Creditors: Amounts falling due within one year

2023 2022
£ £
Grants payable - 5,765

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

12. Statement of funds

Statement of funds - current year

Balance at
Balance at 1 31
January December
2023 Income Expenditure Income Expenditure Gains 2023
£ £ £ £ £
Unrestricted funds
Unrestricted funds 2,124,451 182,642 (498,072) 100,633 1,909,654
Restricted funds
Restricted funds - 11,961 (11,961) - - -
Total of funds 2,124,451 194,603 (510,033) 100,633 1,909,654
Statement of funds - prior year Statement of funds - prior year
Balance at
Balance at 31
1 January December
2022 Income Expenditure (Losses) 2022
£ £ £ £ £
Unrestricted funds
Unrestricted funds 2,512,596 174,366 (522,549) (39,962) 2,124,451
Restricted funds
Restricted Funds 20,000 14,858 (34,858) - - -
Total of funds 2,532,596 189,224 (557,407) (39,962) 2,124,451

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

13. Summary of funds

Summary of funds - current year

Unrestricted funds
Restricted funds		 Balance at 1
January
2023
£
2,124,451
-
2,124,451		 Income
£
182,642
11,961
194,603		 Expenditure
£
(498,072)
(11,961)
(510,033)		 Gains
£
100,633
-
100,633		 Balance at
31
December
2023
£
1,909,654
-
1,909,654

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 2023 was Dementia UK (2022: Dementia UK).

Summary of funds - prior year

Unrestricted funds
Restricted funds		 Balance at
1 January
2022
£
2,512,596
20,000
2,532,596		 Income
£
174,366
14,858
189,224		 Balance at
31
December
Expenditure
£
(Losses)
£
2022
£
(522,549)
(39,962)
2,124,451
(34,858)
-
-
(557,407)
(39,962)
2,124,451

14. Analysis of net assets between funds

Analysis of net assets between funds - current year

Fixed asset investments
Current assets
Total		 Unrestricted
funds
2023
£
1,659,314
250,340
1,909,654		 Total
funds
2023
£
1,659,314
250,340
1,909,654

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

14. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Unrestricted Total
funds funds
2022 2022
£ £
Fixed asset investments 2,037,414 2,037,414
Current assets 92,802 92,802
Creditors due within one year (5,765) (5,765)
Total 2,124,451 2,124,451

Total

15. Reconciliation of net movement in funds to net cash flow from operating activities

2023 2022
£ £
Net expenditure for the year (as per Statement of Financial Activities) (214,797) (408,145)
Adjustments for:
Gains/(losses) on investments (100,633) 39,962
Decrease in debtors - 20,000
(Decrease)/increase in creditors (5,765) 765
Purchased investment (21,267) -
Net cash used in operating activities (342,462) (347,418)
16. Analysis of cash and cash equivalents
2023 2022
£ £
Cash in hand 250,340 92,802
Total cash and cash equivalents 250,340 92,802

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

17. Analysis of changes in net debt

At 1 At 31
January December
2023 Cash flows 2023
£ £ £
Cash and cash equivalents 92,802 157,538 250,340
92,802 157,538 250,340
At 1 At 31
January December
2022 Cash flows 2022
£ £ £
Cash and cash equivalents 462,056 (369,253) 92,802
462,056 (369,253 92,802

18. Post balance sheet events

As explained in the Trustees’ Report, in September 2023 Invesco UK announced that, subject to receiving authorisation from the FCA, the Invesco Global Targeted Returns Fund would close, positions liquidated, and monies returned to investors. At an early stage the Trustees met with representatives from Invesco’s Multi-Asset Strategies Group to discuss the closure process and alternative investment opportunities that would align with the Foundation’s objectives. The Trustees concluded that given current and forecast economic conditions it would be appropriate to hold the Charity’s assets in a diversified money market fund pending a further strategic review in Q3 2024.

In line with this decision the fixed asset investments held within the Invesco Global Targeted Returns Fund were sold and the amounts realized of £1,664,090 were reinvested in the Invesco Money Fund (UK) on 22 February 2024.