2020-12-31-accounts - The Fidelity UK Foundation

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THE FIDELITY UK FOUNDATION

(Registered Charity Number: 327899)

Annual Report and Financial Statements for the year ended 31 December 2020

THE FIDELITY UK FOUNDATION

The Trustees submit their annual report and audited financial statements for The Fidelity UK Foundation ( 2020. The financial statements have been prepared in accordance the Charities Act 2011, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) effective 1 January 2019 ( ) and UK Generally Accepted Accounting Practice.

(Accounts and Reports) Regul departure has involved following the relevant version of the Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005, which has since been withdrawn.

Objective and activities for the public benefit

The objective of the Foundation is to make grants to organisations for charitable purposes, as recognised by the laws of England and Wales. The objective is consistent year to year.

g this objective is to build an endowment out of which sustainable long-term grant-making programmes can be established. The Trustees set annual grant budgets designed to balance current grant-making programmes and the long-term future of the Foundation. The Trustees confirm that they have -making policy for the year.

Grant-making guidelines

The Foundation has established its grant-making guidelines to achieve its objective for the public benefit. Grantmaking guidelines are reviewed annually to ensure that they ive and thereby advance public benefit.

The Foundation directs the majority of its grants to UK registered charities operating in the UK, primarily in the fields of:

arts, culture and heritage including nationally significant heritage sites, internationally recognised museums and class-leading organisations in the visual and performing arts;
community development particularly early interventions and charities which help young and/or disadvantaged people achieve their potential;
education particularly initiatives which improve education outcomes for the disadvantaged, from early years through to transition to work;
health including disability, palliative care and centres of excellence involved in ground-breaking research and treatments to address chronic illness.

During 2020, the overarching programme goal to enable disadvantaged children and young people fulfil their potential , with a particular focus on: education attainment, community-based interventions, wellbeing and employability. Grants will be disclosed using this new category from 2021 onwards.

The Foundation aims to strengthen the impact, efficiency and/or sustainability of the charitable organisations that it supports. As such, the Foundation has a focus on supporting capacity-building, by which the Foundation means the capacity, knowledge and resources that charities need to be effective.

THE FIDELITY UK FOUNDATION

Grant-making guidelines (cont.)

Each grant application is considered on an individual basis against the grant-making guidelines. Foundation representatives (and from time to time, Trustees) meet with applicants to establish a fuller understanding of the organisation and their needs.

-making guidelines, other factors considered as part of the due diligence process include: ; role relative to other organisations in the field and strategic plans; leadership and governance; operations; financial health; and the degree to which the project for which funding is requested will strengthen an organisations impact, efficiency and/or sustainability. Grantees are requested to report to the Foundation on progress towards achieving the goals of the project supported as outlined in their application to the Foundation, on a periodic basis.

Information on how to apply for a grant is available on the website www.fidelityukfoundation.org.

The Foundation can make grants outside of the categories and grant-making process described above. Grants reserves policy section for more details).

Achievements and performance in 2020

During 2020, the Trustees met their objective of awarding grants to charitable organisations with a view to strengthening their impact, efficiency and/or sustainability, thereby delivering public benefit.

Trustees considered and monitored the impact of COVID-19 on the Foundation, its programmes and grantees. W -making guidelines, given the impact of the pandemic the Foundation had a particular focus on organisations supporting those most disadvantaged in society. While a majority of grants were made to sizeable charities (many of whom were past grantees of the Foundation), the Foundation also supported smaller charities through COVID-19 emergency funds run by the Community Foundations in Kent and Surrey, and the London Community Response Fund in recognition of the important role played by small, community-based organisations. The Foundation also offered flexibility to existing grantees as they adapted to the rapidly changing landscape (including amending deadlines for reporting, extending grant offer periods, or repurposing existing grants).

As part of a planned review of t Enabling disadvantaged children and young people achieve their potential . Grant-making guidelines were updated to reflect a broader definition of capacity-building.

The Foundation established a new Finance & Investment Subcommittee to provide support to the Trustees in the the investment portfolio.

See the table below for details of the number and total value of grants awarded by sector.

Grants were awarded in 2020 as follows:

Area Arts, Culture and Heritage Health Education Community Development Cross Sector Total	Number of grants awarded Total amount awarded % of total by amount 4 £359,073 4% 14 £3,570,753 36% 15 £2,869,632 29% 16 £2,855,731 29% 1 £200,693 2%
	50 £9,855,882 100%

THE FIDELITY UK FOUNDATION

Achievements and performance in 2020 (cont.)

Type of support Building Acquisition/Development/Restoration Information Technology Equipment Core Costs/Programme Costs Organisational Development/Planning Total	Number of grants awarded Total amount awarded % of total by amount 4 £266,293 3% 23 £5,355,108 54% 1 £265,000 3% 14 £2,762,639 28% 8 £1,206,842 12%
	50 £9,855,882 100%

Further details of the grants awarded are included in note 6. A full list of all grants awarded in 2020 is included in note 20 to the financial statements.

Grants were awarded in 2019 as follows:

Area Arts, Culture and Heritage Health Education Community Development Conservation Cross Sector Fund Total Type of support Building Acquisition/Development/Restoration Information Technology Equipment Core Costs/Programme Costs Organisational Development/Planning Total	Number of grants awarded Total amount awarded % of total by amount 16 £2,343,281 21% 14 £3,648,222 33% 14 £2,676,148 25% 14 £1,680,265 15% 1 £290,370 3% 1 £132,892 1% 2 £250,000 2%
	62 £11,021,178 100% Number of grants awarded Total amount awarded % of total by amount 20 £4,042,929 37% 24 £4,233,905 39% 4 £1,005,545 9% 7 £371,000 3% 7 £1,367,799 12%
	62 £11,021,178 100%

Financial review

The Foundation remains in a sound financial position. The net assets of the Foundation increased by 6% from £272,462,296 at the start of the year to £288,028,883 at 31 December 2020. Despite volatility in investment markets during the year, net assets remained healthy, demonstrating a commitment to maintain and build an invested fund for the long-term benefit of the Foundation and its beneficiaries. Donations received accounted for £3,275,588 (2019: £894,620) of income and the Foundation approved grants totalling £9,855,882 (2019: £11,021,178). An amount of £500,000 relating to a grant awarded in a previous year was written back in 2020 (2019: 3 grants totalling £83,774) and a grant totalling £350,000 paid in a previous year was returned and credited to the statement of financial activities (2019: 1 grant totalling £42,600). In each case this was due to the related project being cancelled or materially changed in scope, rather than the Trustees decision to withdraw the grant.

THE FIDELITY UK FOUNDATION

Investment policy and performance

investments and dispositions of investments by or on behalf of the Foundation shall be made exclusively for the benefit of the Foundation and to assist the Foundation in implementing its objectives.
investment decisions relating to funds have been delegated to FIL Pensions Management with overall investment strategy being retained by the Trustees. The majority of invested assets continue to be held in mutual funds.
investment decisions relating to shares in FIL are taken by unaffiliated Trustees in line with the Conflicts of Interest policy.
where practicable, the concentration of investment in any enterprise or related group of enterprises is kept Trustees to consider the need to diversify investments). In the event that the value of an investment exceeds 20% as the result of donations, growth or decline in the value of a particular position, considerations of diversification alone should not force its disposition.

The Finance & Investment Subcommittee, established in 2020, is authorised by the Board to monitor, review and manage all aspects of the Investment Policy and strategy and to provide oversight of the operation of the investments, ensuring that these arrangements are

At 31 December 2020, the total value of investments was £287,570,313 (2019: £272,222,334). The managed portfolio was valued at £195,738,455 (2019: £191,132,768), the FIL shares were valued at £37,482,704 (2019: £28,109,110) and the Eight Roads S shares were valued at £54,349,154 (2019: £52,980,456).

The investment objective of the managed portfolio for the year to 31 December 2020 was to outperform a composite of indices (composed of 65% equities, 20% UK bonds and 15% alternative investments). The performance of the portfolio is monitored by the Trustees on a regular basis by comparing the investment returns against the benchmark.

For the year to 31 December 2020 the investment portfolio (excluding FIL and ERS shares) delivered a return of 6.4% compared with the benchmark return of 5.8% (2019: return of 14.2% compared with the benchmark return of 14.9%). FIL and ERS shares delivered a return of 13.0% (excluding dividends), in sterling, over the same year (2019: 13.0%).

Trustees will continue to closely monitor performance during 2021.

Risk management

identified the following risks: governance/compliance

risk; financial risk; grant-making risk; and reputational risk.

Governance/compliance risk - relates to the Foundation meeting regulatory, accounting and legal compliance requirements.

The Foundation actively manages these risks through robust internal controls, effective application of relevant policies, engagement with specialist advisers for legal requirements and regular reporting to Trustees.

Financial Risk - relates to the Foundation meeting its financial commitments and long-term objectives, preventing misappropriation of funds and liquidity, market and credit risk.

Liquidity risk is the risk that the Foundation does not have sufficient available resources to enable it to meet its obligations as they fall due or can only secure them at excessive cost.

THE FIDELITY UK FOUNDATION

Risk management (cont.)

investments as a result of fluctuations in foreign currency exchange rates, interest rates, fund and equity prices. Foreign exchange rate risks exist related to the investments and cash denominated in foreign currencies. Interest rate risk exists related to cash and investments in liquidity funds that are subject to daily interest rate variances. Fund and equity price risk exists due to market driven fluctuations in the investment portfolio values.
Credit Risk is the risk of a counterparty failing to meet its financial obligations to the Foundation. Investments and cash are only held with financial institutions of an appropriate standing and which have been approved by the Trustees.

The Foundation actively manages these risks through robust internal controls, effective application of relevant policies, regular monitoring and reporting of the financial performance of investments, and regular cash flow and liquidity forecasting.

Grant-making risk -

-making objectives.

The Foundation actively manages this risk through annual review of grant-making guidelines, clear due diligence processes, clear decision-making processes and monitoring of grantee performance against project goals.

Reputational risk -

vely to any incident that could affect the

The Foundation actively manages this risk through clear terms and conditions in grant agreements, a fraud response plan and the monitoring of the application of grants made through reports received from grantees.

A detailed risk register, which includes details of the mitigating actions, is reviewed annually by the Trustees. The Trustees confirm that they are satisfied with the procedures which have been established to regularly monitor these risks and with the action taken to mitigate exposure to them.

Funds and reserves policy

The Trustees wish to build a substantial Foundation for long-term charitable purposes. As the level and frequency of future donations is uncertain, the Trustees have established an expendable endowment fund to provide sufficient -term sustainability and meet its overall charitable objectives. The Trustees have targeted an expected level of overall growth (capital and income) from the invested funds and expect to be able to spend around 5% of the average endowment fund over the previous three years for grant-making in the subsequent year, while preserving the real value of the endowment. For 2020, this resulted in a grant-making budget of up to £11,500,000.

The endowment fund represents donations received, invested into the managed portfolio, together with the gains and losses arising from the portfolio. The Trustees have discretion to transfer some or all of the capital of the endowment to the unrestricted fund in circumstances which they consider would justify it, having regard to the need to maintain an appropriate balance between the interests of present and future beneficiaries. The value of the endowment fund at 31 December 2020 was £289,045,458.

The unrestricted fund provides the working capital of the Foundation for grant-making, support costs and other expenditure. The level of funds and estimates of likely future expenditure are monitored and reviewed on an annual basis and transfers are made from the endowment if necessary.

the unrestricted fund allowing the Foundation to make grant payments as they fall due. The Trustees have concluded that, based on current conditions and considering their ability to transfer from the expendable endowment, the level of unrestricted funds should generally not exceed the value of one year's forecast charitable expenditure.

THE FIDELITY UK FOUNDATION

Funds and reserves policy (cont.)

A total amount of £6,300,000 was redeemed from the managed portfolio during 2020 (2019: £13,000,000) and £5,228,768 transferred to the unrestricted fund (2019: £11,621,459). The value of unrestricted funds at 31 December 2020 was a deficit of £1,665,697 (2019: deficit of £1,500,503). Any deficit in the unrestricted fund can be funded

The restricted fund represents , which was established in 2019 as a restricted fund within the Foundation to honour one of the founders of Fidelity International, Bill Byrnes, by receiving, managing and investing donations received in his memory and using these funds to provide scholarships to talented business students from around the world via specific business schools. The value of the restricted fund at 31 December 2020 was £649,122.

Each month, the Foundation prepares rolling cashflow forecasts of its financial position looking fifteen months ahead. Cashflow forecasts for the twelve months from the date of approval of the financial statements have also . This assumes: zero investment or donation income; that current grant-making budgets are sustained (based on an annual budget calculated as referenced above); and, together with anticipated operating expenses and payments of existing grant commitments, all expenditure is funded through transfers from the endowment into the unrestricted funds. Based on these forecasts, the Trustees consider that there are no ma and the financial statements are prepared on this basis.

Plans for future periods

The Trustees are committed to continuing to make grants in accordance with the stated objective of the Foundation and to attract grant proposals matching the Foundation's grant criteria. The Trustees aim to set a grant budget at a level that will allow the Foundation to meet its objective, while maintaining a sustainable asset level for future periods.

In the forthcoming period, the Trustees anticipate the overall value of grants awarded to remain at a similar level. While continuing to make grants in fields as outlined in the grant-making guidelines, the Foundation will also continue to review its activity, with a particular focus on developing the strategy for the health and the arts, culture and heritage programmes.

The Trustees are mindful of the ongoing impacts of COVID-19 on the Foundation, its programmes and its grantees. The Foundation will continue to monitor the situation closely and consider adapting its work as appropriate.

Structure, governance and management

The Foundation is a registered charity, number 327899, which is constituted as a charitable trust under a Trust Deed dated 13 July 1988. This Trust Deed authorises Trustees to make decisions regarding the allocation of funds.

Trustees meet three times a year, the Finance & Investment Subcommittee meets twice a year, and the Independent Trustees Subcommittee meets once per year. Various policies and guidelines are in place and are reviewed periodically to ensure that the governance arrangements remain effective and are monitored. All Trustees give of their time freely and no Trustee remuneration was paid in the year. Details of Trustee expenses and related party transactions are disclosed in notes 7 and 17 to the financial statements. From time to time a grant may be awarded to an organisation with which a Trustee is involved in some capacity. Trustees are required to disclose all relevant interests, which are then recorded in a conflicts of interest register, and in accordance with the .

Any new Trustees are appointed by the settlor, FIL Investment Services (UK) Limited, based on their ability to add value to the Foundation. Newly appointed Trustees are given an induction, during which they are briefed on investments, the grant-making process and the powers and responsibilities of the Trustee board. A brief history of the Trust, copy of Board and sub-committee minutes, annual reports and financial statements, and a copy of the governing Trust Deed are made available to the incoming Trustee.

Structure, governance and management (cont.)

THE FIDELITY UK FOUNDATION

The Trustees of the Foundation have absolute discretion in the application of any income and capital of the Foundation for any purpose recognised as charitable by the law of England and Wales. Decisions regarding the application of funds and investment strategy are made at meetings of the board of Trustees.

Grant proposals are presented to Trustees at Board meetings and between meetings via email. Decisions are arrived at on the basis of mutual agreement among Trustees. Some grants payable are subject to certain conditions being met by the recipients as outlined in grant offer packs.

The Trustees have established policies and procedures for delegated authority under which a guide budget is made available for small grants which are proposed by Foundation representatives and subject to approval by either one or two Trustees (dependent on grant size). Small grants, amounting in aggregate to no more than 10% of the small grant guide budget, are able to be made at the discretion of the Head of Foundations. The five external Trustees (see note below) also have a small budget for allocation to charitable organisations; these donations fall within the overall grant-making strategy of the Foundation and are not normally made to charities in which the external Trustee is involved in a formal capacity and in such cases proposals are considered by the board.

The Foundation has not carried out any fundraising activities during the year. The Foundation received a number of unsolicited donations during the year to the

Day to day management of the Foundation is carried out by FIL Investment Management Limited The Foundation also holds shares in FIL, a related party. FIML has been one of the principal donors to the Foundation. Further details are provided in note 17 to the financial statements.

THE FIDELITY UK FOUNDATION

Reference and administrative information

Trustees

The Trustees of the Foundation who were in office during the year and up to the date of signing the financial statements were:

B R J Bateman (retired 25 March 2020)

A J Bolton

S R Gandhi P D Goldsbrough A P Johnson E B Johnson E C Johnson IV J R Millar (retired 15 July 2020) J W Owen M A Rogers S E Walden

All of the Trustees are associated with the principal donors to the Foundation, with the exception of the five external Trustees: S R Gandhi, P D Goldsbrough, J W Owen, M A Rogers and S E Walden.

Registered Office:	Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey KT20 6RP
Administrators:	FIL Investment Management Limited, 4 Cannon Street, London EC4M 5AB
	(Head of Foundations: Lenka Setkova)
Investment Advisors:	FIL Pensions Management, Beech Gate, Millfield Lane, Lower Kingswood,
Bankers: Solicitors: Independent Auditors:	Tadworth, Surrey KT20 6RP Barclays Bank PLC, 73-75 Calverley Road, Tunbridge Wells, Kent TN1 2UZ Bates, Wells and Braithwaite London LLP, 10 Queen Street Place, London EC4R 1BE PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors,
	1 Embankment Place, London WC2N 6RH
Registered Charity Number:	327899

THE FIDELITY UK FOUNDATION

responsibilities in relation to the financial statements

Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Foundation and of the incoming resources and application of resources of the Foundation for that period. In preparing these financial statements the Trustees are required to:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP;
make judgements and estimates that are reasonable and prudent;
state whether applicable accounting standards comprising FRS 102, have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Foundation will continue in operation.

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Foundation 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 Foundation and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the charity and financial information included on dissemination of financial statements may differ from legislation in other jurisdictions.

Independent Auditors

The Trustees have re-appointed the auditors, PricewaterhouseCoopers LLP, for the year to 31 December 2021.

Approved by the Trustees on 13 April 2021 and signed on their behalf by:

Trustee: P D Goldsbrough Date: 13 April 2021

THE FIDELITY UK FOUNDATION

Indep UK Foundation

rustees of The Fidelity

Report on the audit of the financial statements

Opinion

In our opinion, The Fidelity UK

give a true and fair view of the state of the Foundation 31 December 2020 and of its incoming resources and application of resources, and cash flows, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United and
have been prepared in accordance with the requirements of the Charities Act 2011 and Regulation 8 of The Charities (Accounts and Reports) Regulations 2008.

We have audited the financial statements, included within the Annual Report and Financial Statements , which comprise: the balance sheet as at 31 December 2020; the statement of financial activities and the cash flow statement for the year then ended; and the notes to the financial statements which include a description of the significant accounting policies.

Basis for opinion

ments

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 Foundation in accordance with the ethical requirements that are relevant to our audit of the in accordance with these requirements.

ities

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, iod of at least twelve months from the date on which the financial statements are authorised for issue.

preparation of the financial statements is appropriate.

Howe 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 nsible 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.

THE FIDELITY UK FOUNDATION

t 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

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 g 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 Foundation 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 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 Foundation and its environment, 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 also considered the direct impact of these laws and regulations 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 underlying accounting records and financial statements and determined that the principal risks were related to posting inappropriate journal entries and management bias in accounting estimates and judgements. Audit procedures performed included:

Evaluating management's controls designed to prevent and detect irregularities.
Making enquiries with management, including consideration of known or suspected instances of non-compliance with laws and regulations.
Challenging assumptions and judgements made by management in significant accounting estimates and judgements. Testing unusual or unexpected journal entries, particularly those impacting revenue.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of noncompliance 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 Financial Reporting

Use of this report

Th 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.

THE FIDELITY UK FOUNDATION

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 Foundation; or
the financial statements are not in agreement with the accounting records and returns.
We have no exceptions to report arising from this responsibility.

PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors London 13 April 2021

THE FIDELITY UK FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

----- Start of picture text -----
Unrestricted Restricted Endowment Total Total
Funds Funds Funds Funds Funds
2020 2020 2020 2020 2019
Note £ £ £ £ £
Income and Endowments from:
Donations 2 3,255,208 20,380 - 3,275,588 894,620
Investments 3 1,083,845 1,487 - 1,085,332 1,127,064
Total 4,339,053 21,867 - 4,360,920 2,021,684
Expenditure on:
Raising funds 4 (5,010) - - (5,010) (10,303)
(investment management costs)
Charitable activities 5 (9,728,005) (5) (236) (9,728,246) (11,738,236)
(including governance costs)
Total (9,733,015) (5) (236) (9,733,256) (11,748,539)
Net (expense)/income and net
movement in funds before gains (5,393,962) 21,862 (236) (5,372,336) (9,726,855)
on investments
Net gains on investments and 15 - - 20,938,923 20,938,923 31,995,467
cash
Net (expense)/income and net
movement in funds (5,393,962) 21,862 20,938,687 15,566,587 22,268,612
Reconciliation of funds
Total Funds of the Foundation (1,500,503) 627,260 273,335,539 272,462,296 250,193,684
brought forward at 1 January
Transfer between funds 5,228,768 - (5,228,768) - -
Total Funds of the Foundation
carried forward at 31 December (1,665,697) 649,122 289,045,458 288,028,883 272,462,296
A comparative Statement of Financial Activities can be found in note 18 to the financial statements.
----- End of picture text -----

THE FIDELITY UK FOUNDATION

BALANCE SHEET AS AT 31 DECEMBER 2020

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Total Total
Funds Funds
Note 2020 2019
£ £
Fixed assets
Investments 9 287,570,313 272,222,334
Total fixed assets 287,570,313 272,222,334
Current assets
Debtors 10 523,092 588,590
Cash at bank 11 9,049,560 8,760,147
Total current assets 9,572,652 9,348,737
Liabilities
Creditors: amounts falling due 12 (7,487,431) (7,074,275)
within one year
Net current assets/(liabilities) 2,085,221 2,274,462
Total assets less current 289,655,534 274,496,796
liabilities
Creditors: amounts falling due after 12 (1,626,651) (2,034,500)
more than one year
Net assets 288,028,883 272,462,296
Endowment Funds 289,045,458 273,335,539
Restricted Income Funds 649,122 627,260
Unrestricted Income Funds (1,665,697) (1,500,503)
Total Funds of the Foundation 288,028,883 272,462,296
----- End of picture text -----

A comparative Balance Sheet can be found in note 19 to the financial statements

The financial statements on pages 14 to 33 were approved by the Board of Trustees on 13 April 2021 and were signed on its behalf by

Trustee

P D Goldsbrough

THE FIDELITY UK FOUNDATION

CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2020

Note Cash flows from operating activities: Net cash used in operating activities 14 Cash flows from investing activities: Investment income received Investment management charges paid Management fee rebates Proceeds from sale of investments Purchase of investments Net cash provided by investing activities Change in cash in the year Effect of exchange rate changes on cash Net increase in cash Cash at beginning of the year Cash at the end of the year	2020 £ (6,430,533) 1,096,545 (7,567) 1,082,968 36,261,255 (31,620,005) 6,813,196 382,663 (93,250) 289,413 8,760,147 9,049,560	2019 £ (8,061,381) 1,018,553 (11,520) 413,654 97,481,477 (85,600,110)
		13,302,054
		5,240,673 (203,455)
		5,037,218
		3,722,929
		8,760,147

*All purchases and sales of investments took place within the Endowment Fund.

The Fidelity UK Foundation does not maintain any debt and therefore a reconciliation of net debt has not been included as the cash movements above provided the same information.

THE FIDELITY UK FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(a) Basis of preparation and assessment of going concern

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value except for investments which are recorded at fair value as disclosed in note 9. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) , the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011.

The Trustees are authorised amounts from the investment portfolio to allow the Foundation to make grant payments from unrestricted funds or endowment funds as they fall due. As a result, Trustees consider that there are no material prepared on a going concern basis.

Planned redemptions totalling £6,300,000 were made from the investment portfolio during 2020 (2019: £13,100,000), comprising of transfers from the expendable endowment fund to the unrestricted fund with the balance being the portfolio income earned (recorded as unrestricted income in line with Charity Commission guidance), to enable the Foundation to make grant payments as they fall due.

and have departed from the Charities (Accounts and Reports) Regulations 2008 only to t the relevant version of the Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

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

Judgements

Judgements are made in relation to the method of allocating support costs between grant-making activities and governance costs on the basis of the amount of time spent by Foundation representatives on each activity (see note 1(f) and note 8), in relation to recognising the full amount of multi-year grants at date of approval and in writing back cancelled grants (see notes 1(d) and notes 12 and 13 for more information).

Estimates

The most significant estimates and key assumptions that affect items in the financial statements are related to the valuation of unquoted investments (see note 1(h) and note 9 for more information). With respect to the next reporting period, the year ending 31 December 2021, the most significant areas of uncertainty that affect the carrying value of the assets held by the Foundation are the level of investment return and the performance of investment markets (see the investment policy and performance and risk management Estimates are also used in the assessment of exposure to market risk (see note 9).

THE FIDELITY UK FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (cont.)

1 Accounting policies (cont.)

(b) Funds structure

The Foundation funds are made up of an endowment fund, a restricted fund and an unrestricted fund. The endowment fund is an invested expendable endowment enabling the Foundation to maintain a sustainable long-term grant-making programme. The Trustees have discretion to expend some or all of the capital of the expendable endowment in circumstances which they consider would justify it, having regard to the need to maintain an appropriate balance between the interests of present and future beneficiaries. The restricted fund was establ The unrestricted fund is available for use at the discretion of the Trustees in furtherance of the general activities of the Foundation.

investments are sold, and the sales proceeds are redeemed

(c) Income recognition

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

Donations represent amounts received by the Foundation or where the Foundation has been notified that a donation has been irrevocably committed to be made to it during the financial year and include any associated tax credits.

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

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

(d) Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Foundation 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 accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings. For more information on this attribution refer to note (f) below.

Grants are payments made to third parties in the furtherance of the charitable objectives of the Foundation. Grants are recognised in the financial statements as liabilities after they have been approved by Trustees or by delegation, the recipients have been notified of the award (formally or informally) and it is fully expected that any terms and conditions to be fulfilled by the grantee(s) will be met. In these circumstances there is a valid expectation by the recipients that they will receive the grant. Once recognised in the financial statements, grants are only written back if the related project is cancelled or if there is a material change in the scope of the project meaning that it no longer meets the terms of the grant agreement. If the scope or timing of a project significantly changes but the Trustees sill want to fund it, the related grant is written back and disclosed instead as a contingent liability to reflect the uncertainty around the timing of the payment.

Provisions for grants are made when recipients have been notified of the award but there is uncertainty as to the timing of the grant or the amount of grant payable.

(e) Irrecoverable VAT

Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

THE FIDELITY UK FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (cont.)

1 Accounting policies (cont.)

(f) Allocation of support costs

Governance costs are a type of support costs and comprise all costs involving the public accountability of the Foundation and its compliance with regulation and good practice. These costs include statutory audit and legal fees together with an apportionment of the support costs considered to be incurred in complying with note 7).

Other support costs have been allocated between governance costs and grant-making activities on a 25:75 basis, reflecting an estimation of the time spent by Foundation representatives on the respective activities (as disclosed in note 1 (a)). Those support costs attributed to grant-making activities have subsequently been allocated between programme areas based on the number of grants awarded in each category. See notes 6 and 8 for further details.

(g) Management fees and rebates

Gross investment management fees are charged against investment fund prices with investment valuations being shown net of these charges. The Foundation receives rebates of a portion of the investment management charges, which are received in cash and immediately reinvested into the managed portfolio. Management fee rebates are presented as realised gains on the managed portfolio and not as donated services.

(h) Fixed asset investments

Investments are a form of basic financial instrument.

Quoted investments are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price.

Unquoted investments are stated at current value based on expected realisable value at the balance sheet date. The current value of FIL shares and ERS shares has been estimated to be equal to the value FIL and ERS. The unquoted investments in FIL and ERS can only be redeemed at the discretion of FIL and ERS and only at the quarterly NAV. FIL and ERS also have the right to apply restrictions to defer the payment of significant redemption proceeds; however, the Trustees do not foresee a circumstance under which this would be enforced, and the Trustees do not believe that there are any restrictions that would materially affect the fair value of the investment. Based on these investment characteristics, NAV is determined to be the best approximation of fair value. The current values of the holdings in Fidelity UK Real Estate Fund have been based on the NAV of units held and are provided by FIL Investment Services (UK) Limited in its capacity as Authorised Corporate Director of the fund. The current values of the holdings in Fidelity Common Contractual Funds are derived from the sum of the quoted prices of the investments in the underlying funds and are provided by FIL Fund Management (Ireland) Limited in its capacity as Manager of the fund.

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

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

The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk and changes in sentiment concerning equities and within particular sectors or subsectors. More detailed disclosures relating

(i) Realised gains and losses

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

THE FIDELITY UK FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (cont.)

1 Accounting policies (cont.)

(j) Contingent liabilities

A contingent liability is identified and disclosed for those grants resulting from:

a possible obligation which will only be confirmed by the occurrence of one or more uncertain future

a present obligation following a grant offer where settlement is not considered probable; or

a present obligation following a grant offer where the amount has not been communicated in the grant offer letter and that amount cannot be estimated reliably.

(k) Foreign currencies

Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities are retranslated at the rate of exchange ruling at the balance sheet date. All differences are taken to the Statement of Financial Activities.

(l) Taxation

The Foundation is a registered charity, and as such is entitled to certain tax exemptions on income and profits from investments, if these profits are applied solely for charitable purposes.

2 Donations

3

4

----- Start of picture text -----
2020 2019
£ £
-
Corporate donations 3,248,755
20,380 893,787
Other donations 6,453 833
3,275,588 894,620
Investment income
2020 2019
£ £
Listed equities 142,106 171,654
Mutual funds 802,689 770,102
Real Estate funds 125,473 149,495
Bank interest 804 3,541
1,071,072 1,094,792
Fidelity Cash Funds 14,260 32,272
1,085,332 1,127,064
Raising funds
2020 2019
Investment management costs: £ £
Custodian fee 5,010 10,303
----- End of picture text -----

THE FIDELITY UK FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (cont.)

5 Charitable activities

Grant-making activities (note 6) Governance costs (note 7) Grant-making activities (note 6) Governance costs (note 7)	Unrestricted Funds Restricted Funds Endowment Funds Total Funds 2020 2020 2020 2020 £ £ £ £ 9,509,236 5 236 9,509,477 218,769 - - 218,769 9,728,005 5 236 9,728,246 Unrestricted Funds Restricted Funds Endowment Funds Total Funds 2019 2019 2019 2019 £ £ £ £ 11,252,572 250,005 1,228 11,503,805 225,911 8,520 - 234,431 11,478,483 258,525 1,228 11,738,236

6 Grant-making activities

All grants were made to institutions; no grants were made to individuals. Grant support costs have been allocated based on the number of grants awarded in each category.

----- Start of picture text -----
Grants approved in 2020 Number Grant value Support costs Total
of grants (note 8)
£ £ £
Arts, Culture and Heritage 4 359,073 40,288 399,361
Health 14 3,570,753 141,006 3,711,759
Education 15 2,869,632 151,079 3,020,711
Community Development 16 2,855,731 161,150 3,016,881
Cross Sector 1 200,693 10,072 210,765
50 9,855,882 503,595 10,359,477
Global Scholarship Fund - - - -
50 9,855,882 503,595 10,359,477
Grants cancelled or amended (500,000) - (500,000)
Grants returned (350,000) - (350,000)
Total 9,005,882 503,595 9,509,477
----- End of picture text -----

See note 20 for a full list of grants approved in year.

THE FIDELITY UK FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (cont.)

6 Grant-making activities (cont.)

----- Start of picture text -----
Grants approved in 2019 Number Grant value Support costs Total
of grants (note 8)
£ £ £
Arts, Culture and Heritage 16 2,343,281 162,399 2,505,680
Health 14 3,648,222 142,099 3,790,321
Education 14 2,676,148 142,099 2,818,247
Community Development 14 1,680,265 142,099 1,822,364
Conservation 1 290,370 10,150 300,520
Cross Sector 1 132,892 10,150 143,042
60 10,771,178 608,996 11,380,174
2 250,000 5 250,005
Global Scholarship Fund
62 11,021,178 609,001 11,630,179
Grants cancelled or amended (83,774) - (83,774)
Grants returned (42,600) - (42,600)
Total 10,894,804 609,001 11,503,805
----- End of picture text -----

7

----- Start of picture text -----
Governance costs
2020 2019
£ £
Trustee expenses 61 807
Legal fees 21,189 8,520
Audit fees 29,655 22,104
Support costs (note 8) 167,864 203,000
218,769 234,431
----- End of picture text -----

The eleven Trustees in post during 2020 received no remuneration from the Foundation during the year (2019: the eleven Trustees in post received no remuneration from the Foundation). One Trustee was reimbursed for travel and subsistence expenses totalling £61 during the year (2019: one Trustee was reimbursed a total of £807).

Audit fees represent £19,894 (net of VAT) for the audit of the 2020 financial statements and an additional £4,819 (net of VAT) relating to fees incurred during 2020(for the completion of the audit of the 2019 financial statements) (2019: £18,420). No other services were provided by the auditors.

In accordance with SORP paragraph 6.15, the audit fee is the amount paid directly by the Foundation and the fee level the Foundation is willing to pay in the open market. This is less than the total allocation of by PricewaterhouseCoopers LLP, who are also the auditor of other FIL related entities.

THE FIDELITY UK FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (cont.)

8 Support costs

----- Start of picture text -----
Allocated to Allocated to Total
grant-making activities governance costs 2020
£ £ £
Administration and
management costs 503,595 167,864 671,459
Allocated to Allocated to Total
grant-making activities governance costs 2019
£ £ £
Administration and
management costs 609,001 203,000 812,001
----- End of picture text -----

Support costs have been allocated between grant-making activities and governance costs on a 75:25 basis. This reflects a judgment on the amount of time spent by Foundation representatives on the respective activities. See note 17 for details of how administration and management services are provided.

9 Investments

Movement in Investments during 2020

Market value b/f1 January 2020 Additions at cost Disposal proceeds Realised (losses)/gains on disposals Unrealised FX loss Unrealised investment (losses)/gains Market value as at31 December 2020	Listed Equities Mutual Funds Real Estate Funds Other Equities Total £ £ £ £ £ 8,276,315 175,758,723 7,097,730 81,089,566 272,222,334 - 31,620,005 - - 31,620,005 - (36,261,255) - - (36,261,255) (3,021) 8,241,098 - - 8,238,077 - - - (2,502,830) (2,502,830) (287,579) 1,493,461 (197,022) 13,245,122 14,253,982
	7,985,715 180,852,032 6,900,708 91,831,858 287,570,313

At 31 December 2020, other equities were comprised of Common Shares in FIL Limited and Common and Preferred Shares in Eight Roads Shareholdings Limited.

Movement in Investments during 2019

Market value b/f1 January 2019 Additions at cost Disposal proceeds Realised gains on disposals Unrealised FX loss Unrealised investment gains/(losses) Market value as at31 December 2019	Listed Equities Mutual Funds Real Estate Funds Other Equities Total £ £ £ £ £ 6,898,146 166,831,092 7,101,935 71,788,822 252,619,995 - 85,600,110 - - 85,600,110 - (97,481,477) - - (97,481,477) - 13,129,219 - - 13,129,219 - - - (2,770,251) (2,770,251) 1,378,169 7,679,779 (4,205) 12,070,995 21,124,738 8,276,315 175,758,723 7,097,730 81,089,566 272,222,334

THE FIDELITY UK FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (cont.)

9 Investments (cont.)

At 31 December 2019, other equities were comprised of Common Shares in FIL Limited and Common and Preferred Shares in Eight Roads Shareholdings Limited.

Recognised fair value measurements

To provide an indication about the reliability of the inputs used in determining fair value, the Foundation has classified its financial instruments into the three levels prescribed under the accounting standards. An explanation of each level follows underneath the table.

Listed Equities Mutual Funds Real Estate Funds Other Equities Total Listed Equities Mutual Funds Real Estate Funds Other Equities Total	Level 1 Level 2 Level 3 Total2020 £ £ £ £ 7,985,715 - - 7,985,715 117,486,662 63,365,370 - 180,852,032 - - 6,900,708 6,900,708 - - 91,831,858 91,831,858 125,472,377 63,365,370 98,732,566 287,570,313
	Level 1 Level 2 Level 3 Total2019 £ £ £ £ 8,276,315 - - 8,276,315 114,368,781 61,389,942 - 175,758,723 - - 7,097,730 7,097,730 - - 81,089,566 81,089,566 122,645,096 61,389,942 88,187,296 272,222,334

There were no transfers between any of the levels for recurring fair value measurements during the year (2019: nil).

The policy is to recognise transfers into and out of fair value hierarchy levels as at the end of the reporting period.

Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in level 1.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, overthe-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.

Exposure to market risk

The values of the investments are subject to foreign currency risk related to amounts denominated in currencies other than GBP, mainly being the US Dollar. If the US Dollar weakened as compared to GBP by 5%, the investment values would reduce by c. £6m (2019: £6m). The values of the investments are also subject to market risk. If the equity markets experienced a 5% downturn, the investment values would reduce by c. £8m (2019: £7m).

THE FIDELITY UK FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (cont.)

----- Start of picture text -----
10 Debtors
2020 2019
£ £
Management fee rebates 364,568 404,593
Dividend receivable 158,524 183,997
523,092 588,590
11 Cash at bank
2020 2019
£ £
Cash at bank 9,049,560 8,760,147
12 Creditors
2020 2019
Amounts falling due within one year: £ £
Grants 7,417,130 6,892,431
Accrued administration services 43,092 143,378
Other creditors 27,209 38,466
7,487,431 7,074,275
Amounts falling due after more than one year:
Grants 1,626,651 2,034,500
9,114,082 9,108,775
Movement in grant commitments during the year:
2020 2019
£ £
Grant commitments recognised at start of year 8,926,931 6,250,054
New grant commitments charged to SoFA in year (note 6) 9,855,882 11,021,178
Grants cancelled/amended during the year (500,000) (83,774)
Grants paid during the year (9,239,032) (8,260,527)
Amount of grant commitments recognised at end of year 9,043,781 8,926,931
----- End of picture text -----

13 Contingent Liabilities

The Foundation does not have any contingent liabilities (2019: nil) that are not recognised in the financial statements.

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

Net movement in funds (excluding endowment) Less: investment income earned Add: investment management costs Increase in creditors Net cash outflow from operating activities	2020 £ (5,372,100) (1,071,072) 5,010 7,629 (6,430,533)	2019 £ (9,733,755) (1,094,792) 10,303 2,756,863 (8,061,381)

THE FIDELITY UK FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (cont.)

----- Start of picture text -----
15 Net gain/(loss) on investments and cash
2020 2019
£ £
Unrealised investment gain 14,253,982 21,124,738
Realised gain on disposals 8,238,078 13,129,219
Realised gain from rebates 1,042,942 722,301
Unrealised FX losses on cash (93,250) (203,455)
Unrealised FX losses on investments (2,502,830) (2,770,251)
Other exchange rate gains/(losses) 1 (7,085)
Net gains on investments 20,938,923 31,995,467
16 Analysis of movement in funds
Balance Income Expenditure Net gain on Transfer Balance
01 January investments between 31 December
2020 funds 2020
£ £ £ £ £ £
Unrestricted funds (1,500,503) 4,339,053 (9,733,015) - 5,228,768 (1,665,697)
Restricted funds 627,260 21,867 (5) - - 649,122
Endowment funds 273,335,539 - (236) 20,938,923 (5,228,768) 289,045,458
Total funds 272,462,296 4,360,920 (9,733,256) 20,938,923 - 288,028,883
Balance Income Expenditure Net gain on Transfer Balance
01 January investments between 31 December
2019 funds 2019
£ £ £ £ £ £
Unrestricted funds (2,760,947) 1,127,771 (11,488,786) - 11,621,459 (1,500,503)
Restricted funds - 893,913 (258,525) (8,128) - 627,260
Endowment funds 252,954,631 - (1,228) 32,003,595 (11,621,459) 273,335,539
Total funds 250,193,684 2,021,684 (11,748,539) 31,995,467 - 272,462,296
----- End of picture text -----

See Funds and funds.

THE FIDELITY UK FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (cont.)

17 Related party transactions

The Foundation received a donation of £3,248,755 2020 (2019: £464,040). FIL is a company with three directors .

The Foundation investments include £195,738,455 of funds held in an investment portfolio managed by FIL Pensions Management ( FPM ) (2019: £191,132,768). FPM is a subsidiary of FIL. Within the investment portfolio, underlying funds valued at £109,199,145 (2019: £105,544,327) are managed by subsidiaries of FIL. A portion of the annual management charge totalling £1,032,261 (2019: £658,328) was rebated to the Foundation during the year. Income in 2020 from these investments was £957,271 (2019: £938,307). At 31 December 2020, an amount of £364,568 was receivable from FPM in relation to rebated management charges (2019: £404,593) and an amount of £158,524 was receivable in relation to investment income (2019: £183,997).

Investments also include £37,482,704 of Common Shares in FIL (2019: £28,109,110 of Common shares in FIL). Dividend income in 2020 from these investments was £nil (2019: £nil).

Cash at bank and in hand includes £4,446,157 (2019: £7,805,896) of units in a fund of Fidelity Institutional Liquidity Fund plc, which is managed by FIL Fund Management (Ireland) Limited, a wholly owned subsidiary of FIL.

The Foundation does not employ any staff directly. Management, overhead and administration expenses of the Foundation are initially borne by FIL Investment Management Limited ( FIML ) and subsequently recharged through an administration services agreement set up with the Foundation. Costs attributed to the Foundation and recharged for the year were £662,488 including VAT (2019: £773,686). FIML is a wholly owned subsidiary of FIL. As at 31 December 2020, an amount of £52,637 was payable to FIML in relation to administration expenses (2019: £143,378).

FIML also provides administration services to Fidelity Bermuda Foundation, Fidelity Asia Pacific Foundation and Fidelity Europe Foundation, separate charitable trusts (formerly one Foundation known as Fidelity International Foundation) which each have five Trustees in common with the Foundation. There have been no transactions between the Foundation and any of the other foundations during the year and there are no balances outstanding between the four entities.

THE FIDELITY UK FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (cont.)

18 Statement of Financial Activities for the year ended 31 December 2019

----- Start of picture text -----
Unrestricted Restricted Endowment Total
Funds Funds Funds Funds
2019 2019 2019 2019
Note £ £ £ £
Income and Endowments from:
Donations 2 833 893,787 - 894,620
Investments 3 1,126,938 126 - 1,127,064
Total 1,127,771 893,913 - 2,021,684
Expenditure on:
Raising funds 4 (10,303) - - (10,303)
(investment management costs)
Charitable activities 5 (11,478,483) (258,525) (1,228) (11,738,236)
(including governance costs)
Total (11,488,786) (258,525) (1,228) (11,748,539)
Net (expense)/income and net
movement in funds before losses
(10,361,015) 635,388 (1,228) (9,726,855)
and gains on investments
Net (loss)/gain on investments 15 - (8,128) 32,003,595 31,995,467
and cash
Net (expense)/income and net
movement in funds (10,361,015) 627,260 32,002,367 22,268,612
Reconciliation of funds
Total Funds of the Foundation (2,760,947) - 252,954,631 250,193,684
brought forward at 1 January
Transfer between funds 11,621,459 - (11,621,459) -
Total Funds of the Foundation
carried forward at 31 December (1,500,503) 627,260 273,335,539 272,462,296
----- End of picture text -----

THE FIDELITY UK FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (cont.)

19 Balance Sheets as at 31 December 2020 and 31 December 2019 analysed by fund

----- Start of picture text -----
Unrestricted Restricted Endowment Total
Funds Funds Funds Funds
2020 2020 2020 2020
£ £ £ £
Fixed assets - - 287,570,313 287,570,313
Investments - - 287,570,313 287,570,313
Total fixed assets
Current assets 158,524 - 364,568 523,092
Debtors 7,114,861 824,122 1,110,577 9,049,560
Cash at bank and in hand 7,273,385 824,122 1,475,145 9,572,652
Total current assets
Liabilities
Creditors: amounts falling due within (7,437,431) (50,000) - (7,487,431)
one year
Net current (liabilities)/assets (164,046) 774,122 1,475,145 2,085,221
Total assets less current liabilities (164,046) 774,122 289,045,458 289,655,534
-
Creditors: amounts falling due after (1,501,651) (125,000) (1,626,651)
more than one year
Net (liabilities)/assets (1,665,697) 649,122 289,045,458 288,028,883
Unrestricted Restricted Endowment Total
Funds Funds Funds Funds
2019 2019 2019 2019
£ £ £ £
Fixed assets
Investments - - 272,222,334 272,222,334
Total fixed assets - - 272,222,334 272,222,334
Current assets
Debtors 183,997 - 404,593 588,590
Cash at bank and in hand 7,199,275 852,260 708,612 8,760,147
Total current assets 7,383,272 852,260 1,113,205 9,348,737
Liabilities
Creditors: amounts falling due (7,024,275) (50,000) - (7,074,275)
within one year
Net current assets 358,997 802,260 1,113,205 2,274,462
Total assets less current 358,997 802,260 273,335,539 274,496,796
liabilities
Creditors: amounts falling due after (1,859,500) (175,000) - (2,034,500)
more than one year
Net (liabilities)/assets (1,500,503) 627,260 273,335,539 272,462,296
----- End of picture text -----

THE FIDELITY UK FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (cont.)

20 Grants awarded during 2020

Health

During the course of the year 14 grants were given to organisations active in the field of Health with a total value of £3,570,753 (2019: 14 grants, total value £3,648,222).

----- Start of picture text -----
Grantee Amount of Grant Type of Support
Description of Grant
Mental Health Innovations
Towards staff costs associated with coaching, volunteer
£600,000 Core Costs/Programme Costs
management, clinical supervision and data analysis to
expand capacity of crisis text line
Anna Freud Centre
Development of technology to expand mental health £500,000 Information Technology
services and information
Mind (the National Association for Mental Health)
Technology development to enable Mind network £468,000 Information Technology
transition from face-to-face to online service delivery
Parkinson's UK
Digital development to expand and enhance support for £383,000 Information Technology
Stroke Association
Development of client relationship management system to £315,000 Information Technology
enhance fundraising and increase reach
CLIC Sargent
Development of digital tiered model of care to support £300,000 Information Technology
children and young people with cancer
Best Beginnings
Development of digital services - the Baby Buddy app - to
£280,000 Information Technology
support parents whose children are at risk of poor health
outcomes
Brook
Development of digital services to support for young £250,000 Information Technology
people with sexual health and wellbeing
Young Epilepsy
Development of digital services to provide tailored support £194,500 Information Technology
for young people with epilepsy
Changing Faces
Technology development to increase reach and voluntary £84,384 Information Technology
income
Young Minds
Towards consultancy costs and Data Officer post to £80,869 Organisational Development
expand mental health services for young people
University of Edinburgh
Towards trialling drugs and devices for the prevention and £75,000 Programme Costs
treatment of respiratory failure of patients with COVID-19
The Pepper Foundation
£30,000 Core Costs/Programme Costs
General contribution
St. Joseph's Hospice
£10,000 Core Costs/Programme Costs
General contribution
Total £3,570,753
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THE FIDELITY UK FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (cont.)

20 Grants awarded during 2020 (cont.)

Education

During the course of the year 15 grants were given to organisations active in the field of Education with a total value of £2,869,632 (2019: 14 grants, total value £2,676,148).

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Grantee Amount of Grant Type of Support
Description of Grant
IntoUniversity
Towards key posts to enable expansion and provide £435,990 Core Costs/Programme Costs
additional academic support following school closures
Ambition Institute
Development of professional development app. for new £334,855 Information Technology
and early career teachers
The Guide Association
£300,000 Information Technology
Digital platform to recruit, train and manage volunteers
The Ditchley Foundation
Video conferencing equipment to extend reach and £265,000 Equipment
enhance income generation
The Sutton Trust
Towards salary of new Data Analyst post to enhance £240,956 Core Costs/Programme Costs
research capability and impact
Action Tutoring Ltd
Towards technology and staff costs to expand online £238,810 Information Technology
tutoring
The Tutor Trust
Organisational and technology development to support £206,000 Information Technology
expansion of tutoring service
upReach
Online network to enhance employment outcomes and £174,599 Information Technology
towards salary of Chief of Staff post
The Sutton Trust
Student management platform to improve user £155,000 Information Technology
engagement and support growth
Future First
Alumni mentoring platform to enhance career and £153,281 Information Technology
university orientation programme
Career Ready
Digital platform to scale employability programmes for £142,064 Information Technology
young people
Impetus
£100,000 Organisational Development
Towards National Tutoring Service Pilot
NowTeach
Consultant to define and develop capabilities and capacity £83,077 Organisational Development
required to deliver expansion
The Literacy Pirates Limited
Towards integration of a new technology platform and
£20,000 Information Technology
associated staff costs to support online learning in reading
and writing
The Difference
Towards consultancy and internal costs for development of £20,000 Organisational Development
a three-year strategy
Total £2,869,632
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THE FIDELITY UK FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (cont.)

20 Grants awarded during 2020 (cont.)

Community Development

During the course of the year 16 grants were given to organisations active in the field of Community Development with a total value of £2,855,731 (2019: 14 grants, total value £1,680,265).

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Grantee Amount of Grant Type of Support
Description of Grant
YouthNet UK (operating as The Mix)
Development of an online volunteering solution to increase
£360,895 Information Technology
volunteering capacity at The Mix and other youth focused
charities
SafeLives
Towards staff costs for posts critical to coordinating sector- £300,000 Core Costs/Programme Costs
wide response to domestic abuse
Bridge House Estates
£300,000 Re-granting
Contribution to the London Community Response Fund
Onside Youth Zones
Technology for Talent Academies to attract and retain £272,618 Organisational Development
talent across the Youth Zone network
Place2Be
Towards two new posts to support expansion to help more £250,278 Organisational Development
children with mental health
Age UK
£250,000 Core Costs/Programme Costs
Towards national telephone advice line
The Frontline Organisation
Development of fellowship programme to enhance impact £250,000 Organisational Development
on social work through alumni network
The Venture Trust
Organisational and technology development to improve £175,000 Information Technology
impact management
School-Home Support Service (UK)
Towards building organisational capacity and enhancing
£150,000 Organisational Development
sustainability, and to provide additional safeguarding
support following school closures
Kent Community Foundation
£150,000 Re-granting
Grant-making to charities in Kent
Community Foundation for Surrey
Grant-making to charities in Surrey £150,000 Re-granting
Shelter, National Campaign for Homeless People Ltd
Design of a digital solution to triage requests for housing
£101,000 Information Technology
information and advice to increase reach and improve
access
Shared Lives Plus Limited
Technology to develop outcome measuring tools for social £95,940 Information Technology
care model
Vauxhall City Farm
£20,000 Buildings
Refurbishment and upgrade of riding school
WomenCentre
Towards capital costs and funding a domestic abuse £20,000 Buildings/Programme Costs
service in Calderdale
Community Links Trust Ltd
Pilot music project to support young people with mental £10,000 Core Costs/Programme Costs
health
Total £2,855,731
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Conservation

No grants were given to Conservation projects during 2020 (2019: 1 grant of £290,370).

THE FIDELITY UK FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (cont.)

20 Grants awarded during 2020 (cont.)

Arts, Culture & Heritage

During the course of the year 4 grants were given to organisations in the field of Arts, Culture and Heritage with a total value of £359,073 (2019: 16 grants, total value £2,343,281).

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Grantee Amount of Grant Type of Support
Description of Grant
City & Guilds of London Art School
Refurbishment of facilities for specialist books and paper £151,293 Buildings
conservation courses
London Academy of Music & Dramatic Art
Technology development to create efficiencies and support £122,780 Information Technology
remote student learning
World Heart Beat Music Academy
Towards the fit-out of a new music education and £75,000 Buildings
performance venue to increase access to music tuition
The Walpole Society
Towards the annual publication of documents on the £10,000 Core Costs/Programme Costs
history of British art
Total £359,073
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Cross Sector

During the course of the year 1 grant of £200,693 was given to a Cross Sector project (2019: 1 grant of £132,892).

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Grantee Amount of Grant Type of Support
Description of Grant
The Media Trust
Towards salary costs of Head of Digital and Head of
£200,693 Core Costs/Programme Costs
Marketing posts to strengthen online training and
organisational capacity
Total £200,693
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es Global Scholarship Fund

No grants during 2020 (2019: 2 grants, total value £250,000).