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← The Pirie Rankin Charitable Trust

2021-12-31-accounts

Blackadders

The Pirie Rankin Charitable Trust

Accounts for the year to 31 July 2021.

Scottish Charity No. SC043145

40 Torphichen Street Edinburgh EH3 8JB

Tel: 0131 222 8000

www.Blackadders.co.uk PIR/25/1

The Pirie Rankin Charitable Trust

Date of Settlement 16 January 2012

Settlor The late Mrs Mary Hay Findlay Rankin Beneficiaries: For the advancement of the Arts, Heritage, Culture and Science and, without prejudice to that generality, to support the performing arts during the period of each annual Edinburgh International Festival. Capital: To be applied at the discretion of the Trustees. Revenue: To be applied at the discretion of the Trustees. Powers of Investment: Very wide at the discretion of the Trustees. — a Charity No. $C043145 Principal Bankers: Bank of Scotland New Uberior House Earl Grey Street Edinburgh Independent Examiner: P Geoghegans Chartered Accountants 6 St Colme Street Edinburgh FH3 6AD

Investment Managers: Brewin Dolphin 144 Morrison Street Edinburgh EH3 8BR

Solicitors: Blackadders LLP 40 Torphichen Street Edinburgh EH3 8JB

Page 2

The Pirie Rankin Charitable Trust

Report Of The Trustees For The Year Ended 31 July 2021.

Structure Governance and Management

Legal and Administrative Arrangements

The Trustees present their annual report and accounts for the year ended 31 July 2021. This Report is prepared in accordance with the constitution of the charity and the recommendations of the Statement of Recommended Practice and Accounting and Reporting by Charities and complies with applicable law.

The Trustees during the year were as stated on page 2. The Trustees were appointed as a consequence of the original Trust Deed and Deeds of Assumption and Conveyance executed since the Trust was constituted.

There are no restrictions on the way the body may operate, save that the Trustees must implement the objectives of the Trust.

The Trustees consider the board of trustees to comprise of the key management personnel of the charity in charge of directing and controlling the charity, and running the charity on a day to day basis.

Appointment of Trustees

Trustees are nominated by the then existing Trustees and their appointment confirmed by a formal Deed of Assumption.

Trustee induction and training

The Trustees have considered a policy on Trustee inductions and training prior to new Trustees being approached. This will include awareness of a Trustee’s responsibilities, the governing document, administrative procedures, the history and philosophical approach of the charity. A new trustee would receive copies of the previous year’s accounts, minutes of the Trustees’ meetings and a copy of the OSCR leaflet “Guidance for Charity Trustees — acting with care and diligence”, if appropriate. Training is offered to current Trustees as and when required. Organisation The Trust is administered under the supervision of the Trustees who meet regularly. The Trustees agree the broad strategy and areas of activity for the Trust, including consideration of grant making, investment, reserves and risk management policies and performance and receive reports from the solicitors in connection with the recent activities of the Trust. Day to day administration is carried out by the Trust’s solicitors.

Risk Management

The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the Trust. Apart from sustained downward stock market movements, the Trustees do not believe that there are any major financial risks to which the Trust is exposed. The stockmarket risk is mitigated by retaining expert investment managers and having a diversified investment portfolio. The Trustees have considered the risks of the effect of the Covid 19 Pandemic on the value of the charity's investments and its investment income and are content that it does not affect the charity's viability or sustainability.

Strategy

The Trustees will continue to pursue their strategy of making donations to the Edinburgh International Festival when they are able from incoming resources. They receive and consider regular reports from the Investment Managers on the position of the Trust’s portfolio of investments. The stockmarket risk is mitigated by retaining expert investment managers and having a diversified investment portfolio.

Page 3

The Pirie Rankin Charitable Trust

Report Of The Trustees For The Year Ended 31 July 2021 (contd)

Achievements and Performance

The 2020 Edinburgh International Festival was cancelled due to the Covid 19 Pandemic. The Trustees agreed that their donation could be used to support the organisation as outlined in the EIF resilience plan. The 2021 Festival is able to go ahead.

Reserves Policy

The reserves of the Trust originate from original and subsequent capital donations together with the growth in the value of investments. The Trustees have adopted a reserves policy that ensures the continuing ability of the Trust to meet its objectives.

The level of unrestricted reserves held at the close of this account was £2,987,029.93 (2020 - £2,614,864.58). Free reserves, being those not held in fixed assets, were £50,462.97 (2020 - £82,124.58).

Future Strategy

No changes are at present envisaged in the Trust’s policies as outlined above.

Objectives & Organisation Structure of the Body

The Trustees accepted funds and investments from the late Mrs Mary Rankin by way of her Will.

Financial Review

The results are shown in the attached Statement of Financial Activities and Balance Sheet. The advice of Brewin Dolphin, Edinburgh has been taken throughout the year on investments and accepted by the Trustees.

It was noted that the value of investments was £2,936,566.96 (2020 - £2,532,740.00). There was net expenditure of £62,685.47 (2020 - £33,363.95) for the year before investment movements.

Connected Bodies

There are no bodies connected to the Trust.

Page 4

The Pirie Rankin Charitable Trust

Statement of Trustees’ responsibilities

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

The law applicable to charities in Scotland requires the Trustees to prepare accounts for each financial year which give a true and fair view of the charity’s state of affairs for the year and of the incoming resources and application of resources for the charity for that period. In preparing these accounts the Trustees are required to:

e select suitable accounting policies and then apply then consistently;

¢ observe the methods and principles in the Charities SORP 2019 (FRS 102);

¢ make judgements and estimates that are reasonable and prudent;

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy the financial position of the charity and which enable them to ensure that the accounts comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the deed of Trust. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the Trustees and signed on their behalf by:

OE ) : . | |

Page 5

9 December 2021

The Pirie Rankin Charitable Trust

Statement of Financial activities for the year ended 31 July 2021

Unrestricted Unrestricted
funds funds
Note 2021 2020
Income from:
Total Income £ 67,010.64 £ 79,337.69
Expenditure on:
Charitable Activities y) £ 111,726.84 pe 95,962.50
Raising Funds 3 if 17,969.27 £ 16,739.14
Net (expenditure) before gains and losses in investments (£ 62,685.47) (£ 33,363.95)
Net gains/(losses) on Investments
Gain/(loss) on realisation of investment assets £ 43,508.77. (£ 55,694.60)
Net gain/(loss) in unrealised appreciation ofinvestment assets 5 £ 391,342.05 (£ 148,502.44)
£ 434,850.82 (£ 204,197.04)
Net income/(expenditure) and net movement in funds £ 372,165.35 (£ 237,560.99)
Funds reconciliation:
Total Funds brought forward £ 2,614,864.58 £ 2,852,425.57
Tota!Fundscarriedforward £ 2,987,029.93 £ 2,614,864.58

Page 7

The Pirie Rankin Charitable Trust Balance Sheet at 31 July 2021

Note 2021 2020
Fixed Assets
Investments 5 £ 2,936,566.96 £ 2,532,740.00
Current Assets
Bank of Scotland £ 32,275.73 £ 47,166.11
Cash in hand £ - £ 5,426.18
Brewin Dolphin - Cash in Hand £ 22,454.93 2 30,817.25
Debtors £ 3,558.65 £ 5,887.38
£ 58,289.31 £ 89,296.92
Current Liabilities
Creditors: Amounts falling due within one year
Due to Agents £ 6,008.34 £ 5,402.34
Other Creditors £ 1,818.00 £ 1,770.00
£ 7,826.34 £ 7,172.34
NetCurrentAssets £ 50,462.97 £ 82,124.58
NetAssets £ 2,987,029.93 £ 2,614,864.58
Represented by
UnrestrictedFunds £ 2,987,029.93 £ 2,614,864.58

The notes on pages 9 to 11 form part of these accounts.

==> picture [533 x 98] intentionally omitted <==

----- Start of picture text -----
Approved by the Trustees and signed on their behalf by:
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----- End of picture text -----

Page 8

The Pirie Rankin Charitable Trust Notes to the Accounts

1 Accounting policies

Basis of preparation and assessment of going concern

The accounts have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019, the provisions of FRS 102, the Charities and Trustee Investment (Scotland) Act 2005, Charities Accounts (Scotland) Regulations 2006 and UK Generally Accepted Accounting Practice.

The charity meets the definition of a public benefit entity.

The Trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

Income

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

Income comprises income from investments and deposits. Interest on funds held on deposit is included upon notification of the interest paid or payable by the Bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by our investment advisor of the dividend yield of the investment portfolio.

Expenditure and irrecoverable VAT

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is included on an accruals basis. |Irrecoverable VAT is charged against the category of resources expended

for which it is incurred.

© Charitable activities include expenditure associated with grant making. Grants comprise those paid in the accounting period and, when applicable, include grants payable in future periods where there exists a legal obligation to make such payments.

© Support costs include central functions and have been allocated on a basis consistent with the use of resources.

° The cost of raising funds is charged against investment capital, reflecting the total return approach to investment management. Any costs associated with the sale or purchase of investments are accounted for as part of the sale or purchase price of the investments.

investments

Investments are included at market value. Realised gains and losses, representing the difference between sale proceeds and opening market value are dealt with in the SOFA. Unrealised gains and losses, representing the movement in the market value of investments over the financial year, or from the date of purchase if acquired during the financial year, are shown in the relevant note. In the case of a permanent diminution in the value of investments, provision is made in the SOFA to reduce the carrying value of the recoverable amount.

Financial Instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments other than investments are initially recognised at transaction value and subsequently measured at their settlement value.

Debtors

Other debtors and accrued income are recognised at the settlement amount due.

Cash

Cash at bank includes cash and highly liquid short term investments with a maturity of three months or less from the date of acquisition or opening of a deposit account.

Creditors

Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured reliably.

Page 9

The Pirie Rankin Charitable Trust Notes to the Accounts (contd)

2021

2020

2 Charitable Activities

The charity did not undertake any activity directly but met its charitable purposes by making Grants. Grants for Trust purposes included in these accounts are as follows:

Grants Paid
Edinburgh International Festival donation towards the cost ofthe 2021
Festival £ 100,000.00 ¢£ 85,000.00
f 100,000.00 €£ 85,000.00
Add: Support Costs (per Note 4) £ 11,726.84 €£ 10,962.50
£ 111,726.84 f€£ 95,962.50
3 Raisingfunds
Investment Management Costs £ 17,969.27 £ 16,739.14
4 Support Costs
Independent Examiners Remuneration £ 1,392.00 E 1,338.00
Management Costs £ 10,032.00 £ 9,426.00
Other f 302.84 £ 198.50
£ 11,726.84 €£ 10,962.50

Page 10

6 Trustee remuneration and related party transactions.

The Pirie Rankin Charitable Trust

Notes to the Accounts (contd)

5 Investments 2021 2020
Market Value at 31.7.2020 £ 2,532,740.00 £ 2,767,893.91
Additions at cost £ 362,085.54 £ 505,273.32
£ 2,894,825.54 £& 3773,167-23
Less: Disposals at carrying value £ (349,600.63) £ (591,924.79)
f 2,545,224.91 £ 2,681,242.44
Unrealised Gain/(Loss) on Revaluation be 391,342.05 (£ 148,502.44)
Market Value at 31.7.2021 f 2,936,566.96 £ 2,532,740.00
Historicalcost £ 2,247,253.45 £ 2,247,253.45

All investments are carried at their fair value. Investment in equities and fixed interest securities are all traded in quoted public markets, primarily the London Stock Exchange. Holdings in common investment funds, unit trusts and open-ended investment companies are at the bid price. The basis of fair value for quoted investments is equivalent to the market value, using the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value).

Investments which exceed 5% of the total portfolio valuation are as follows:

Findlay Park FDS American USD DIS shares £ 215,006.94 JPMorgan UK Ltd US Equity Inc K £ 201,876.23

During the year no Trustee (2020 - one) received expenses totalling £nil (2020 - £198.50). No Trustee received any remuneration in either of the two years ended 31 July 2021. The Trust has no employees.

Page 11

The Pirie Rankin Charitable Trust Appendix 1 Income from Investments and Deposits

from Investments and Deposits
2021 2020
Dividend Income per Brewin Dolphin Statement £ 69,339.37 £ 80,120.63
Less:
Ex-dividends accrued at close of last account {(£ 5,887.38) (£ 6,758.09)
Plus:
Ex-dividends accrued at close ofthis account £ 3,558.65 £ 5,887.38
Bank of Scotland
Account No. 10020467
Interest forthe year (gross) ia - £ 87.77
£67,010.64 =£_79,337.69

Page 12

The Pirie Rankin Charitable Trust Appendix 2

Administration Expenses

2021 2020
12/10/2020 —_Brewin Dolphin their quarterly fee for portfolio
management £ 4,228.92 £ 4,348.01
07/12/2020 Geoghegans, Chartered Accountants, additional
amount for 2020 account £ 6.00 £ -
11/01/2021 Brewin Dolphin their quarterly fee for portfolio
management £ 4,492.18 £ 4,485.72
Marjorie Kerr, Trustee, expenses £ - £ 198.50
12/04/2021 —Brewin Dolphin their quarterly fee for portfolio
management £ 4,518.26 £ 3,720.42
12/07/2021 Brewin Dolphin their quarterly fee for portfolio
management £ 4,729.91 £ 4,184.99
13/04/2021 Berkeley Insurance Group for Management Protection
GE8S hisfee forfixingagents business
accounts and commissions forthe period ofthis		 f£ i £ 432.00
31/07/2021 McMillan Audit Ltd their fee for fixing agents business
accounts and commissions for the year to date. f 432.00 £ -
Blackadders LLP their fee for work in the Trust for the
period ofthis account as fixed by Roland McMillan and
restricted to £ 8,000.00
plus VAT at 20% f£ 1,600.00 £ 9,600.00 £f 8,994.00
Geoghegans, Chartered Accountants, their fee for
examining account £ 1,155.00
plus VAT at 20% £ 231.00 £ 1,386.00 £ 1,338.00
f 29,696.11 £ 27,701.64

Page 13

The Pirie Rankin Charitable Trust

Appendix 3

Realisation of Investments

Received by Brewin Dolphin, proceeds of sale of

Received by Brewin Dolphin, proceeds of sale of
Market Value Realisation
_at 31.07.2020 Price
13/08/2020 Smith (DS} Ord 10p 5650 £ 14,758.00 £ 15,546.65
03/12/2020 Aviva Dilution Levy O€ - £ 131.64
08/12/2020 Ashstead Group Pic 130 £ 3,165.50 £ 4,244.00
21/12/2020 Close Brothers Group Plc 2570 £ 28,167.00 £ 35,505.03
22/12/2020 AstraZeneca Ord USD 0.25 199 £ 16,974.83 £ 14,983.73
Johnson Matthey Pic 875 £ 19,591.00 £ 21,970.56
BP Plc 6216 £ 17,103.00 £ 16,859.17
15/03/2021 FIL InvSVCS UK Money Builder Income GBP Fund. 90499.8 £ 93,667.00 £
28/05/2021 Scottish Mortgage IT 4250 £ 36,932.65 £ 49,852.75
01/06/2021 Aberdeen Standard Life Inv European Equity Inc 60500 £ 57,045.00 £ 65,259.50
11/06/2021 Rio Tinto Ord GBP 0.10 shares 465 £ 21,459.65 £ 28,325.69
Pernod Ricard EUR 1.55 shares 310 £ 40,737.00 £ 47,869.38
£ 349,600.63 f£ 393,109.40
Gainonrealisation £ 43,508.77

Page 14

The Pirie Rankin Charitable Trust Appendix 4 Investments

Appendix 4
Investments Acq.Cost/
No. of Value as at Value as at
Shares/Units SL202d) 31.7.2020
Aberforth SMLR Cos Ord GBP 0.01 2,900 £ 44,950.00 £ 23,664.00
Admiral Group Ord .1p 1,600 £ 54,400.00 iP 38,400.00
Aegon Short dtd High Yield Bond 5,690 £ 56,283.77 £ 54,174.00
Aegon STG Corp Bond GBP Inc 77,997.9538 £ 82,334.64 £ 81,851.00
Allianz Gbl Inv UK Gilt Yield 39,250 £ 80,497.83 £ 85,118.00
Ashstead Group Plc 1,070 £ 57,630.20 £ 26,054.50
AstraZeneca Ord USD 0.25 556 £ 45,970.08 £ 47,427.17
Blackrock Continental Europe Inc D 32,503 pe 60,569.34 iE 59,728.01
BNY Mellon Asian Income U Fund 79,377.230 £ 89,648.64 £ 77,487.00
BNY Mellon Newton Global Dynamic Bond Exempt3 62,713.630 £ 61,942.25 £ 62,054.00
Coupland Cardiff F CCJapan Inc&Grwth 6,300 £ 97,057.80 £ 87,072.00
Croda International 600 £ 50,520.00 £ 34,380.00
Diageo Ord GBX 28.935185 shares 1,690 fi 60,341.45 £ 47,337.00
Experian Plc 1,350 £ 42,768.00 £ 36,140.00
Findlay Park FDS American USD DIS shares 1,595 £ 215,006.94 £ 171,567.00
Franklin Templeton F2 FTF Clrbridge Global Infra 41,706.340 £ 41,748.04 £ 41,660.77
GlaxoSmithKline Ord GBP 0.25 shares 2,820 £ 39,981.96 £ 43,140.00
Halma Plc 670 €£ 19,356.30 £ 14,960.39
HICL Infrastructor Ord GBP 0.0001 shares 26,000 £ 44,200.00 £ 43,628.00
Intertek Group Plc 530 £ 27,326.80 oy 28,503.00
Invesco Asian UK Z Fund 13,000 £ 59,936.50 £ 50,903.00
ishares Il Plc Core UK Gilts UCT ETF 1,950 £ 27,838.20 £ 29,289.00
iShares { Plc USD Tips UCITS j337 £ 63)/827.31 £
JPMorgan AM Emerging Markets Inc C 48,000 £ 33,624.00 £ 29,054.00
JPMorgan UK Ltd US Equity Inc K 147,570.3420 £ 201,876.23 £ 160,557.00
Kone OYJ 700 £ 41,844.78 £ 40,240.96
Legal & General Group Plc 11,500 £ 30,061.00 1 24,610.00
Londonmetric Property 11,500 £ 28,612.00 if 26,565.00
National Grid Ord GBP0.12431289 shares 39317 fF 36,381.82 £ 35,449.00
Nestle SA CHFO.10 (regd) shares $10 £ 46,145.72 £ 46,140.00
NinetyOne Diversified Income J2 35,500 £ 35,844.35 fe 36,088.00
North America Inv Trust Ord Sp 25,500 £ 68,850.00 £ 56,865.00
Prudential GBP 0.05 shares 3,525 £ 47,816.63 £ 38,969.00
Reckitt Benckiser Ord GBP 0.10 shares 555) £ 30)652.65 £ 42,768.00
Relx Plc T7SS ££ 37,100.70 £ 28,343.00
Rio Tinto Ord GBP 0.10shares 710 fe 43,317.10 ff 32,766.35
Roche Hldgs AG Genusscheine NPV shares 140 £ 38,789.72 £ 37,043.00
Royal Dutch Shell "B" Ord Euro 0.07 shares 1,930 £ 27,402.14 £ 20,859.00
Scot Mort Inv Tst Ord GBP 0.05 shares 9500 £ 125,067.50 £ 82,555.35
SSGA SPDR ETFSS&P US Div Aristocrats 2,910 £ 142,881.00 £ 113,577.00
Stand Life Inv Property Ord 1p 57,000 £ 40,584.00 £ 32,433.00
T Bailey Evenlode Global Inc 33,370 £ 46,561.16 £ 41,669.10
The Renewables Infrastructure 22,000 5 28,952.00 if 29,260.00
Tritax Big Box 18,000 £ 37,908.00 £ 27,252.00
Twenty Four Corp Bond 894 £ 94,165.02 £ 93,289.00
Unilever pic Ord GBP 0.031111 shares 233 8 51,181.33 £ 56,385.00
Vanguard S&P 500 UCITS 2,140 £ 128,358.70 £ 100,211.00
Vanguard US Government Bond 647 £ 68,452.86 £ 67,399.80
£ 2,936,566.96 £ 2,545,224.91
GainonRevaluation £ 391,342.05

Page 15

The Pirie Rankin Charitable Trust Appendix 5

Assets Acquired

Paid by Brewin Dolphin, purchase price of

Paid by Brewin Dolphin, purchase price of
No of Purchase
shares/units Price
14/08/2020 Halma Plc 670 £ 14,960.39
30/12/2020 Franklin Templeton F2 FTF Cirbridge Global Infra 34528 £ 41,660.77
T Bailey Evenlode Global Inc 33370 £ 41,669.10
16/03/2021 iShares USD Tips UNITS 11337 £ 60,338.51
Vanguard US Gov Bond Fund Bj bal 6 32,326.06
02/06/2021 Blackrock Continental Europe Inc D 32503 £ 59,728.01
Vanguard US Gov Bond Fund 336 ff 35,073.74
14/06/2021 Kone OYJ 700 £ 40,240.96
Ninety One Diversified Income J2 35500 fa 36,088.00
£ 362,085.54

Corporate Actions

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