Limited Liability Partnership registration number OC420598 (England and Wales)
SCHONFELD STRATEGIC ADVISORS (UK) LLP
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
SCHONFELD STRATEGIC ADVISORS (UK) LLP
LIMITED LIABILITY PARTNERSHIP INFORMATION
Designated members
SSA (UK) 1, Ltd
SSA (UK) 2, Ltd
LLP registration number
OC420598
Registered office
78 St James's Street
2nd Floor
London
SW1A 1JB
Auditor
Ernst & Young LLP
25 Churchill Place
London
E14 5EY
SCHONFELD STRATEGIC ADVISORS (UK) LLP
CONTENTS
Page
Members' report
1 - 3
Members' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Reconciliation of members' interests
10 - 11
Statement of cash flows
12
Notes to the financial statements
13 - 23
SCHONFELD STRATEGIC ADVISORS (UK) LLP
MEMBERS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The members present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of Schonfeld Strategic Advisors (UK) LLP (the “LLP”) is the provision of asset management services. The LLP employs multiple portfolio managers who primarily invest in the European markets. The LLP serves as the Alternative Investment Fund Manager in respect to an alternative investment fund complex (the “Funds”) which implements strategies focusing on the European markets.

The LLP is authorised and regulated by the Financial Conduct Authority and is a CPMI firm under AIFMD with top up permissions under MiFID.

At 31 December 2023, the designated members, SSA (UK) 1, Ltd ("SSA 1") and SSA (UK) 2, Ltd ("SSA 2"), are wholly-owned subsidiaries of Schonfeld Strategic Advisors LLC (the "Parent Company", the “Investment Manager”), a limited liability company organised under the laws of the State of Delaware. The Investment Manager has engaged the LLP as a sub-advisor in respect of a portion of the capital of the funds managed by the Investment Manager.

The LLP's Pillar 3 disclosures can be located at https://www.schonfeld.com/TermsOFUse

Members' profits, drawings, contributions and repayments

Policies for the allocation of profits, members’ drawings, contributions and repayments of capital are governed by the Limited Liability Partnership Agreement (the “Partnership Agreement”). Any profits are shared among the members in accordance with the Partnership Agreement. The members' drawings policy allows each member to draw a proportion of their profit share, subject to the cash requirements of the business.

 

Upon admission to the LLP, each member contributes capital. No interest is payable on capital contributed. As prescribed within the Partnership Agreement, members may be invited to contribute additional capital. Repayment of members’ capital upon leaving the LLP is conditional on replacement capital being introduced by another member, or obtaining permission from the FCA for a reduction in capital in accordance with the Partnership Agreement, or in accordance with a member’s Deed of Allocation.

Designated members

The designated members who held office during the year and up to the date of approval of the financial statements were as follows:

SSA (UK) 1, Ltd
SSA (UK) 2, Ltd
Auditor

In accordance with the limited liability partnership's membership agreement, a resolution proposing that Ernst & Young LLP be reappointed as auditor of the limited liability partnership will be put at a general meeting.

Energy and carbon report

During the year, activities of the limited liability partnership resulted in the following energy usage and emissions:

Restated
2023
2022
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
779,465
363,099
SCHONFELD STRATEGIC ADVISORS (UK) LLP
MEMBERS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Restated
2023
2022
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
79.00
8.22
- Fuel consumed for owned transport
-
-
79.00
8.22
Scope 2 - indirect emissions
- Electricity purchased
71.98
70.22
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the LLP
-
-
Total gross emissions
150.98
78.44
Intensity ratio
Tonnes CO2e per full-time employee
0.95
0.62
Quantification and reporting methodology

This data was obtained from documentation provided by energy suppliers.

 

We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2023 UK Government’s Conversion Factors for LLP Reporting.

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per average full-time employee, the recommended ratio for the sector.

Measures taken to improve energy efficiency

The members have taken the following steps to reduce energy usage and associated emissions and improve energy efficiency:

 

List of members

This report has been approved by the members of the LLP. Persons who were members at any time during the financial year are listed in the public register held by Companies House.

Statement of disclosure to auditor

Each of the members in office at the date of approval of this annual report confirms that:

 

SCHONFELD STRATEGIC ADVISORS (UK) LLP
MEMBERS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Approved by the members on 3 April 2024 and signed on behalf by:
03 April 2024
SSA (UK) 1, Ltd
Designated Member
SCHONFELD STRATEGIC ADVISORS (UK) LLP
MEMBERS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The members are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) requires the members to prepare financial statements for each financial year. Under that law the members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice. Under company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) the members must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the limited liability partnership and of the profit or loss of the limited liability partnership for that period. In preparing these financial statements, the members are required to:

 

 

The members are responsible for keeping adequate accounting records that are sufficient to show and explain the limited liability partnership’s transactions and disclose with reasonable accuracy at any time the financial position of the limited liability partnership and enable them to ensure that the financial statements comply with the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008). They are also responsible for safeguarding the assets of the limited liability partnership and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

SCHONFELD STRATEGIC ADVISORS (UK) LLP
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SCHONFELD STRATEGIC ADVISORS (UK) LLP
- 5 -
Opinion

We have audited the financial statements Schonfeld Strategic Advisors (UK) LLP (the ‘LLP’) for the year ended 31 December 2023 which comprise Statement of Comprehensive Income, Balance Sheet, Reconciliation of Members’ Interests, Statement of Cash Flows, and the related notes 1 to 18, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 ‘The Financial Reporting Standard applicable to the UK and Republic of Ireland.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report below. We are independent of the limited liability partnership in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

 

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

Conclusions relating to going concern

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

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the limited liability partnership’s ability to continue as a going concern for a period to 31 March 2025.

 

Our responsibilities and the responsibilities of the members with respect to going concern are described in the relevant sections of this report. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the limited liability partnership’s ability to continue as a going concern.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The members are responsible for the other information contained within the annual report.

 

Our opinion on the financial statements does not cover the other information and, we do not express any form of assurance conclusion thereon.

 

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 course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of the other information, we are required to report that fact.

 

We have nothing to report in this regard.

 

SCHONFELD STRATEGIC ADVISORS (UK) LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SCHONFELD STRATEGIC ADVISORS (UK) LLP
- 6 -
Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 as applied to limited liability partnerships requires us to report to you if, in our opinion:

 

Responsibilities of members

As explained more fully in the Members’ Responsibilities Statement, the members are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the members determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

 

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

Auditor's responsibilities for the audit of the financial statements

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

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

SCHONFELD STRATEGIC ADVISORS (UK) LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SCHONFELD STRATEGIC ADVISORS (UK) LLP
- 7 -

Our approach was as follows:

 

 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 as applied to Limited Liability Partnerships. Our audit work has been undertaken so that we might state to the members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the limited liability partnership and the limited liability partnership’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Constantinos Pavlou (Senior Statutory Auditor)
For and on behalf of Ernst & Young LLP
London
10 April 2024
SCHONFELD STRATEGIC ADVISORS (UK) LLP
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
116,702,625
88,825,025
Administrative expenses
(106,243,862)
(79,866,619)
Other operating income
3
245,371
-
Operating profit
4
10,704,134
8,958,406
Interest receivable and similar income
7
293,262
-
Profit for the financial year before members' remuneration and profit shares
10,997,396
8,958,406
Profit for the financial year before members' remuneration and profit shares
10,997,396
8,958,406
Members' remuneration charged as an expense
6
(9,364,732)
(8,958,406)
Profit for the financial year available for discretionary division among members
1,632,664
-

The profit and loss account has been prepared on the basis that all operations are continuing operations.

SCHONFELD STRATEGIC ADVISORS (UK) LLP
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
8
9,748,976
5,498,172
Current assets
Debtors
9
44,173,508
33,289,529
Cash at bank and in hand
26,404,926
20,440,923
70,578,434
53,730,452
Creditors: amounts falling due within one year
10
(48,114,614)
(35,407,416)
Net current assets
22,463,820
18,323,036
Total assets less current liabilities and net assets attributable to members
32,212,796
23,821,208
Represented by:
Loans and other debts due to members within one year
Amounts due in respect of profits
4,230,816
4,393,892
Members' other interests
Members' capital classified as equity
26,349,316
19,427,316
Members' other interests classified as equity
1,632,664
-
32,212,796
23,821,208
The financial statements were approved by the members and authorised for issue on 3 April 2024 and are signed on their behalf by:
03 April 2024
SSA (UK) 1, Ltd
Designated member
Limited Liability Partnership registration number OC420598 (England and Wales)
SCHONFELD STRATEGIC ADVISORS (UK) LLP
RECONCILIATION OF MEMBERS' INTERESTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Current financial year
EQUITY
DEBT
TOTAL
Members' other interests
Loans and other debts due to members less any amounts due from members in debtors
MEMBERS'
INTERESTS
Members' capital (classified as equity)
Other reserves
Total
Other amounts
Total
Total
2023
£
£
£
£
£
£
Amounts due to members
4,393,892
Members' interests at 1 January 2023
19,427,316
-
19,427,316
4,393,892
4,393,892
23,821,208
Members' remuneration charged as an expense, including employment costs and retirement benefit costs
-
-
-
9,364,732
9,364,732
9,364,732
Profit for the financial year available for discretionary division among members
-
1,632,664
1,632,664
-
-
1,632,664
Members' interests after result and remuneration for the year
19,427,316
1,632,664
21,059,980
13,758,624
13,758,624
34,818,604
Introduced by members
6,922,000
-
6,922,000
-
-
6,922,000
Drawings
-
-
-
(9,527,808)
(9,527,808)
(9,527,808)
Members' interests at 31 December 2023
26,349,316
1,632,664
27,981,980
4,230,816
4,230,816
32,212,796
SCHONFELD STRATEGIC ADVISORS (UK) LLP
RECONCILIATION OF MEMBERS' INTERESTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Prior financial year
EQUITY
DEBT
TOTAL
Members' other interests
Loans and other debts due to members less any amounts due from members in debtors
MEMBERS'
INTERESTS
Members' capital (classified as equity)
Other amounts
Total
Total
2022
£
£
£
£
Amounts due to members
6,627,710
Members' interests at 1 January 2022
16,428,316
6,627,710
6,627,710
23,056,026
Members' remuneration charged as an expense, including employment costs and retirement benefit costs
-
8,958,406
8,958,406
8,958,406
Result for the financial year available for discretionary division among members
-
-
-
-
Members' interests after result and remuneration for the year
16,428,316
15,586,116
15,586,116
32,014,432
Introduced by members
3,000,000
-
-
3,000,000
Repayments of capital
(1,000)
-
-
(1,000)
Drawings
-
(11,192,224)
(11,192,224)
(11,192,224)
Members' interests at 31 December 2022
19,427,316
4,393,892
4,393,892
23,821,208
SCHONFELD STRATEGIC ADVISORS (UK) LLP
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
16
14,035,432
17,236,062
Investing activities
Purchase of tangible fixed assets
(5,758,883)
(5,384,233)
Interest received
293,262
-
Net cash used in investing activities
(5,465,621)
(5,384,233)
Financing activities
Capital introduced by members - equity
6,922,000
3,000,000
Repayment of capital or debt to members
-
(1,000)
Payments to members
(9,527,808)
(11,192,224)
Net cash used in financing activities
(2,605,808)
(8,193,224)
Net increase in cash and cash equivalents
5,964,003
3,658,605
Cash and cash equivalents at beginning of year
20,440,923
16,782,318
Cash and cash equivalents at end of year
26,404,926
20,440,923
SCHONFELD STRATEGIC ADVISORS (UK) LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Accounting policies
Limited liability partnership information

Schonfeld Strategic Advisors (UK) LLP is a limited liability partnership incorporated in England and Wales. The registered office is 78 St James’s Street, 2nd Floor, London, SW1A 1JB.

1.1
Basis of preparation

These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in December 2021, together with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the limited liability partnership. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

In accordance with the Statement of Recommended Practice, "Accounting by Limited Liability Partnerships", the LLP is exempt from preparing a Strategic Report as it is not a traded LLP or banking LLP.

1.2
Going concern

Management have prepared a three year cash flow forecast which predicts a surplus position in excess of capital requirements and adequate liquidity, and have therefore determined that the LLP is reasonably expected to continue as a going concern for at least 12 months from the date of the authorisation of the financial statements. Furthermore, management have also prepared stress testing scenarios to assess the potential impact of adverse market events on the LLP’s operations, liquidity and regulatory capital position, which show that the LLP is able to continue to operate under these stressed conditions.

 

At the time of approving the financial statements, the members have a reasonable expectation that the LLP has adequate resources to continue in operational existence for the foreseeable future. Thus the members continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is measured at the fair value of the consideration received or receivable provided it is probable that the economic benefit will flow to the LLP and the revenue and costs, if applicable, can be measured reliably. Turnover is recognised in profit or loss as follows:

Reimbursement for Pass-Through Expenses

The LLP employs an expense-based pass-through model and does not receive a management fee or any other asset-based fee. Rather, the Investment Manager will generally be subject to their pro-rata share of the LLP’s pass through expenses (“PTEs”).

The amount of PTEs that will be charged to the Investment Manager by the LLP, is based on a methodology that the LLP, in its sole discretion, believes to be fair and equitable after considering the nature of the expense and related accounting conventions. Any PTE may be accrued or charged to the Investment Manager over multiple accounting periods in the sole discretion of the LLP.

The LLP is the primary obligor for those expenses eligible for PTE reimbursement. Accordingly, in the statement of comprehensive income, such expenses are recorded by the LLP in their respective categories with the related reimbursements revenue presented gross.

SCHONFELD STRATEGIC ADVISORS (UK) LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.4
Members' participating interests

Members' participation rights are the rights of a member against the LLP that arise under the members' agreement (for example, in respect of amounts subscribed or otherwise contributed remuneration and profits).

 

Members' participation rights in the earnings or assets of the LLP are analysed between those that are, from the LLP's perspective, either a financial liability or equity, in accordance with section 22 of FRS 102. A member's participation rights, including amounts subscribed or otherwise contributed by members, for example members' capital, are classed as liabilities unless the LLP has an unconditional right to refuse payment to members, in which case they are classified as equity.

All amounts due to members that are classified as liabilities are presented within 'Loans and other debts due to members' and, where such an amount relates to current year profits, they are recognised within ‘Members' remuneration charged as an expense’ in arriving at the relevant year’s result. Undivided amounts that are classified as equity are shown within ‘Members' other interests’. Amounts recoverable from members are presented as debtors and shown as amounts due from members within members’ interests.

 

Where there exists an asset and liability component in respect of an individual member’s participation rights, they are presented on a gross basis unless the LLP has both a legally enforceable right to set off the recognised amounts, and it intends either to settle on a net basis or to settle and realise these amounts simultaneously, in which case they are presented net.

Once an unavoidable obligation has been created in favour of members through allocation of profits or other means, any undrawn profits remaining at the reporting date are shown as ‘Loans and other debts due to members’ to the extent they exceed debts due from a specific member.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
Straight line over life of lease
Fixtures and fittings
14.2% straight line
Computers
20% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.6
Impairment of fixed assets

At each reporting period end date, the limited liability partnership reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the limited liability partnership estimates the recoverable amount of the cash-generating unit to which the asset belongs.

SCHONFELD STRATEGIC ADVISORS (UK) LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

 

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.

1.8
Financial instruments

The limited liability partnership has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the limited liability partnership's statement of financial position when the limited liability partnership becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

SCHONFELD STRATEGIC ADVISORS (UK) LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the limited liability partnership transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the limited liability partnership after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

SCHONFELD STRATEGIC ADVISORS (UK) LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the limited liability partnership’s obligations expire or are discharged or cancelled.

1.9
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the limited liability partnership is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

 

The LLP provides long-term employee benefits under the terms of deferred bonus and compensation plans. Such awards are payable in tranches over an average service period of three years and are subject to various conditions, including continued employment by the LLP. An expense is recognised in profit and loss in relation to the awards over the service period to the extent the employee is deemed to have provided qualifying services during the year.

1.10
Retirement benefits and post retirement payments to members

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.11
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.12
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.

 

Non-monetary items measured at fair value in foreign currencies are translated using the exchanges rates at the date when the fair values were determined.

2
Judgements and key sources of estimation uncertainty

In the application of the limited liability partnership’s accounting policies, the members are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

SCHONFELD STRATEGIC ADVISORS (UK) LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
3
Turnover

An analysis of the limited liability partnership's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Sub-advisory fee
116,702,625
88,825,025
2023
2022
£
£
Other significant revenue
Sublease income
220,932
-
Other income
24,439
-
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(158,256)
327,641
Fees payable to the LLP's auditor for the audit of the LLP's financial statements
72,360
70,302
Depreciation of owned tangible fixed assets
1,508,079
717,804
Operating lease charges
3,209,255
2,538,845
5
Employees

The average number of persons (excluding members) employed by the partnership during the year was:

2023
2022
Number
Number
Business development
10
6
Legal/compliance
4
5
Portfolio management
47
39
Technology
34
27
Operations
22
20
Administration
6
4
Human Resources
9
7
Trading
5
6
Risk
7
4
Accounting
7
3
Total
151
121
SCHONFELD STRATEGIC ADVISORS (UK) LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Employees
(Continued)
- 19 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
69,673,491
48,994,027
Social security costs
9,448,678
6,773,521
Pension costs
1,536,015
1,142,223
80,658,184
56,909,771
6
Members' remuneration
2023
2022
Number
Number
Average number of members during the year
8
6
2023
2022
£
£
Profit attributable to the member with the highest entitlement
3,786,658
4,324,547

The members control the direction of the entity's activities and are considered to be key management personnel, therefore no separate disclosure has been made of key management personnel remuneration.

7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
293,262
-
SCHONFELD STRATEGIC ADVISORS (UK) LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
8
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 January 2023
3,605,828
1,181,653
2,087,736
6,875,217
Additions
3,076,594
1,164,433
1,517,856
5,758,883
At 31 December 2023
6,682,422
2,346,086
3,605,592
12,634,100
Depreciation and impairment
At 1 January 2023
339,139
76,993
960,913
1,377,045
Depreciation charged in the year
481,238
264,195
762,646
1,508,079
At 31 December 2023
820,377
341,188
1,723,559
2,885,124
Carrying amount
At 31 December 2023
5,862,045
2,004,898
1,882,033
9,748,976
At 31 December 2022
3,266,689
1,104,660
1,126,823
5,498,172
9
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
31,503,696
21,788,238
Other debtors
1,301,380
798,680
Prepayments and accrued income
11,368,432
10,702,611
44,173,508
33,289,529
10
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
30,089
119,695
Amounts owed to group undertakings
-
352,156
Accruals and deferred income
48,084,525
34,935,565
48,114,614
35,407,416
SCHONFELD STRATEGIC ADVISORS (UK) LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
11
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
1,536,015
1,142,223

The limited liability partnership operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the limited liability partnership in an independently administered fund.

12
Loans and other debts due to members
2023
2022
£
£
Analysis of loans
Amounts falling due within one year
4,230,816
4,393,892

Included within members' debt interests at the balance sheet date of £4,230,816 (2022: £4,393,892) are amounts totalling £1,448,239 (2022: £1,611,314) that were drawn down fully in January following the balance sheet date.

In the event of a winding up the amounts included in "Loans and other debts due to members" will rank equally with unsecured creditors.

13
Operating lease commitments
Lessee

At the reporting end date the limited liability partnership had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
2,501,514
1,351,567
Between two and five years
16,006,552
13,992,600
18,508,066
15,344,167
SCHONFELD STRATEGIC ADVISORS (UK) LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
14
Related party transactions
Transactions with related parties

During the year, the LLP recharged expenses to Schonfeld Strategic Advisors (DIFC) Limited, an affiliated entity amounting, to $860,114 (2022: $187,954) which were settled during the year.

As discussed in Note 1.3, the LLP employs an expense-based pass-through model and does not receive a management fee or any other asset-based fee.

During the year, the LLP recorded reimbursements for PTEs amounting to £116,702,625 (2022: £88,825,025) of which £31,503,696 (2022: £21,788,238) was receivable at the balance sheet date and is included within debtors.

The amounts mentioned above are unsecured, interest free and repayable in less than 12 months.

During the year, the LLP received capital contributions of £3,459,500 (2022: £1,500,000) from and made profit distributions of £356,700 (2022: £842,718) to each of SSA 1 and SSA 2.

15
Ultimate controlling party

The immediate parent undertakings are jointly SSA 1 and SSA 2, private limited companies incorporated in the United Kingdom. Schonfeld Strategic Advisors LLC, registered at 590 Madison Avenue, 23rd Floor, New York, NY 10022, United States, is the parent of the smallest and largest group into which the LLP's results are consolidated.

16
Cash generated from operations
2023
2022
£
£
Profit for the year
10,997,396
8,958,406
Adjustments for:
Investment income
(293,262)
-
Depreciation and impairment of tangible fixed assets
1,508,079
717,804
Movements in working capital:
Increase in debtors
(10,883,979)
(7,735,001)
Increase in creditors
12,707,198
15,294,853
Cash generated from operations
14,035,432
17,236,062
17
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
20,440,923
5,964,003
26,404,926
Loans and other debts due to members:
- Other amounts due to members
(4,393,892)
163,076
(4,230,816)
Balances including members' debt
16,047,031
6,127,079
22,174,110
SCHONFELD STRATEGIC ADVISORS (UK) LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
18
Subsequent events

There have been no events that occurred subsequent to 31 December 2023 through to the date the financial statements were approved that required additional disclosure.

2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.200falsefalseOC4205982023-01-012023-12-31OC420598bus:PartnerLLP12023-01-012023-12-31OC420598bus:PartnerLLP22023-01-012023-12-31OC4205982023-12-31OC4205982022-01-012022-12-31OC420598bus:LimitedLiabilityPartnershipLLP2023-01-012023-12-31OC420598bus:FRS1022023-01-012023-12-31OC420598bus:Audited2023-01-012023-12-31OC420598bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP