for the Period Ended 30 June 2024
Directors report | |
Balance sheet | |
Additional notes | |
Balance sheet notes |
Directors' report period ended
The directors present their report with the financial statements of the company for the period ended 30 June 2024
Principal activities of the company
Political and charitable donations
Additional information
Achievements and Performance During the financial period, the Foundation successfully made funding commitments to seven organisations (2023: eight organisations) in accordance with its grant making policy as outlined above. Commitments for 2023/24 totalled $415 thousand (2023: $564 thousand) which include multi-year grant commitments not due for payment until 2026. Since its inception in 2008, the Foundation has committed over $8.0 million to support social causes throughout the Emerging Markets. Financial Review The Foundation’s work is reliant on income from Ashmore and its employees and investment returns from its reserves. Voluntary donation income for 2023/24 was $876 thousand (2023: $937 thousand). This was derived from Ashmore Group plc’s profit before tax donation of up to 0.5%, Ashmore employee bonus waivers and direct donations to the Foundation via the payroll giving scheme and fundraising activities. The Foundation’s reserves are invested with the aim of incrementally growing the capital value of funds over an investment cycle. Investment income during the year amounted to $364 thousand (2023: $272 thousand) driven by interest income, corporate debt, fixed income and equity funds. Realised and unrealised investment gains for the year were $319 thousand (2023: $203 thousand gain). This was driven by gains on bonds, money market and equity funds during the year. Expenses to support charitable activities (excluding grant making) amounted to $125 thousand (2023: $119 thousand). The Foundation’s grant making activity for the year amounted to $415 thousand (2023: $564 thousand). The decrease relates to fewer commitments approved by the Trustees during the year. Further details are provided in “Achievements and Performance” and in note 4 to the Financial Statements. Reserves amounted to $11.9 million as at 30 June 2024 (30 June 2023: $10.9 million), the increase was driven by income from donations and net realised and unrealised investment gains (30 June 2023: net realised and unrealised investment losses) in the year. Public Benefit The Trustees confirm that during the year ended 30 June 2024 they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission. Going Concern Disclosure The Trustees have considered the resilience of the Foundation, taking into account its current financial position, and the principal and emerging risks facing the Foundation including the impact of current global affairs and their effect on global markets and potential implications on the Foundations financial resources. The Trustees have reviewed a going concern assessment, by applying a stressed scenario, including severe but plausible downside assumptions, and the impact on its investments and unrestricted financial resources alongside known grant commitments for a period of 12 months from the date of approval of these financial statements. While there are significant wider market uncertainties that may impact the Foundation, the stressed scenario shows that the Foundation would continue to have sufficient financial resources to meet its liabilities as they fall due for a period of at least 12 months from the date of the release of this report. The financial statements have therefore been prepared on a going concern basis. Reserves and Investment Policy There has been no change to the trustees December 2021 decision to let Ashmore contributions be the main driver of growth for the reserves, and the investment committee (“IC”) is to target a three-year annualised return of 3%. In terms of ethical considerations, there is also no change. Trustees reserve the right to exclude investments in any companies that directly undermine or contravene the organisation’s charitable objectives. Direct investments into any company or entity whose core business activity involves the production, assembly, direct sale, distribution, operation, or marketing of alcohol, tobacco, adult entertainment, weapons and gambling should be avoided. The portfolio nominal return for the 12 months period to 30 June 2024 was +7.2%. The financial year started weakly as expectations of the level at which global interest rates would peak, having initially fallen (to the benefit of the fund in 4QFY23), rose once again on the back of a strong US economy and persistent inflation. This sent the portfolio’s bond and equity valuations down, but the high cash position (c. 37%) minimised the capital deterioration. By October 2023 the inflationary impact of the pandemic and, more recently, the Ukraine war began to slowly subside, and the US economy showed some signs of softening. This was the inflection point on US / global rate expectations resulting in a rally in both bonds and equities, which the IC had added to in September (reducing cash, including the high yielding deposit fund, to c. 28%). Generally, the portfolio’s investments continued to grind higher from this point onwards and the IC further reduced cash in December 2023. By this point, profits had already been taken in the US equities holdings and replaced with more Emerging Market equity exposure, due to the valuation gap. In the 4QFY24, the IC again lowered cash to c. 23% using the funds to lock in longer-term yields in UK Gilts. There was an acceleration in returns in this final quarter of the year, taking the Foundation’s portfolio return for the year to June 2024 to +7.2%.
Directors
The directors shown below have held office during the whole of the period from
1 July 2023
to
30 June 2024
The director shown below has held office during the period of
1 July 2023
to
14 April 2024
The director shown below has held office during the period of
1 July 2023
to
13 April 2024
The director shown below has held office during the period of
1 July 2023
to
3 December 2023
The director shown below has held office during the period of
1 July 2023
to
1 December 2023
The director shown below has held office during the period of
24 May 2024
to
30 June 2024
The director shown below has held office during the period of
22 December 2023
to
24 May 2024
The directors shown below have held office during the period of
1 December 2023
to
30 June 2024
Secretary
The above report has been prepared in accordance with the special provisions in part 15 of the Companies Act 2006
This report was approved by the board of directors on
And signed on behalf of the board by:
Name:
Status: Director
As at
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Investments: | 3 |
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Cash at bank and in hand: |
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Investments: | 4 |
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Creditors: amounts falling due within one year: | 5 |
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Total assets less current liabilities: |
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Creditors: amounts falling due after more than one year: | 6 |
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Profit and loss account: |
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The notes form part of these financial statements
The directors have chosen not to file a copy of the company's profit and loss account.
This report was approved by the board of directors on
and signed on behalf of the board by:
Name:
Status: Director
The notes form part of these financial statements
for the Period Ended 30 June 2024
Basis of measurement and preparation
Intangible fixed assets amortisation policy
Other accounting policies
for the Period Ended 30 June 2024
2024 | 2023 | |
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Average number of employees during the period |
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for the Period Ended 30 June 2024
(g) Fixed asset investments Fixed asset investments are held to generate investment income over time rather than to finance grant making activities. Fixed asset investments include corporate bonds, equity and fixed income funds not held specifically for sale. Fixed asset investments also include cash held from time to time, and money market funds held as part of on-going investment activities to generate investment return and are expected to be held for more than one year from the reporting date. Corporate bonds, equity and fixed income funds are initially recognised at their transaction value and subsequently measured at fair value as at the Balance Sheet date, using the closing market price or net asset value. Cash and money market investments are measured at amortised cost. The Statement of Financial Activities includes net gains and losses on fixed asset investments, including those resulting from movements in foreign exchange rates.
for the Period Ended 30 June 2024
No current asset investments
for the Period Ended 30 June 2024
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for the Period Ended 30 June 2024
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Bank loans and overdrafts |
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Amounts due under finance leases and hire purchase contracts |
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