DTL1509/a/20 DTL/NB/LE00229.1
The Leng Charitable Trust
Charity Ref: SC009285
Accounts for the year to 31 December 2019
Contents Reference & Admin Information Report by Trustees Report by Auditors Accounts Notes to the Accounts Appendices of Investments
Thorntons Law LLP, Solicitors, Whitehall House, 33 Yearnan Shore, Dundee DD1 48_7 Telephone: 01382 229111 Fax: 01382 202288 2 The Leng Charitable Trust
Reference and Administrative Information
Date/Manner Names of Trustees of Appointment Trust Deed Thorntons Trustees Limited Assumed 23/05/1996 Assumed 21/03/2007 Assumed 08/08/2019
, who also served as a trustee during the year, resigned on 8th August 2019
Agents and Administrators for the Trust (and principal address of the Charity) Thorntons Law LLP, Whitehall House, 33 Yeaman Shore, Dundee DD1 4BJ.
Investment Managers Thorntons Investment Management Ltd, Whitehall House, 33 Yeaman Shore, Dundee
The portfolio is managed on a discretionary basis.
Nominee Company Lawshare Nominees Limited, or such other nominee company as A J Bell Securities may appoint.
Principal Bankers Royal Bank of Scotland plc, 3 High Street, Dundee DD1 9LY.
Auditors MHA Henderson Loggie, The Vision Building, 20 Greenmarket, Dundee DD1 4QB.
Charity Reference No SC009285 3 The Leng Charitable Trust
Report of the Trustees for the year to 31 December 2019
The trustees present their report and accounts for the year ended 31 December 2019. The report and accounts have been prepared in accordance with the charity's trust deed and with the accounting policies set out on pages 16 & 17.
Structure, Governance and Management:
Constitution Deed of Trust by Janet Eleanor Leng, 35 Leonard Court, Kensington, London dated 30 October, 1986.
Appointment of trustees Trustees are nominated by the then existing trustees and their appointment confirmed by formal Deed of Assumption.
Trustee induction and training The trustees deal appropriately as regards induction and training on any new trustees appointed. This includes awareness of a trustee's responsibilities, the governing document, administrative procedures, and the history and philosophical approach of the charity. New trustees receive copies of the previous year's accounts, minutes of recent trustee meetings and a copy of the OSCR booklet "Guidance for Charity Trustees", if appropriate. Appropriate training is offered to current trustees as and when required.
Trustee interests Thorntons Trustees Ltd is a nominee company administered by Thorntons Law LLP.
Organisation and grant-making policy The day-to-day administration is carried out by Thorntons Law LLP, as agents for the Trust.
The trustees meet three times a year, in February May and September, to review the grants position and any other relevant aspects of the Trust's affairs. The main meeting is in February and generally this meeting will review and consider larger grants; with smaller grants being considered at the other two meetings. The Trustees' current policy is that the split of the total funds available annually for distribution should be approximately two-thirds towards larger/regular grants and one-third towards smaller grants.
As stated in the Deed of Trust, beneficiaries are to be drawn from the following:
(i) Any one or more charitable institutions that the trustees may select. (ii) The maintenance of the Leng Memorial Chapel. (iii) St. Mary Abbots Church, Vicarage Gate, London, in preference to any other church. (iv) The Episcopal Church in Scotland. (v) Royal National Lifeboat Institution. (vi) The Salvation Army. (vii) Any local charitable organisation or charitable purpose, or any local charitable appeal in Dundee or Tayside which the trustees in their discretion may consider deserving of support.
In respect of smaller grants the Trustees normally only give consideration to applications for assistance from local Dundee and Tayside community organisations. In general, the Trustees favour those organisations which work in the social and welfare areas, assisting persons struggling to cope with day-to-day living or suffering from disability, for projects or purposes where the Trusts donation will be an appreciable help. The trustees may also support (i) National Scottish Charities who wish financial assistance for their work in the local Dundee and Tayside community, and (ii) organisations in Dundee and Tayside whose activities can be enjoyed by a significant proportion of the local population. The average level of grant to local community organisations is around E1,500. Individuals going to work overseas on behalf of a charity will not normally be considered, nor will applications by organisations to raise funds just for one individual.
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, and are satisfied that systems are in place to mitigate exposure to those risks. The trustees consider variability of investment returns to constitute the charity's major financial risk. This is mitigated by retaining expert investment managers and having a diversified investment portfolio. 4
The Leng Charitable Trust
Report of the Trustees for the year to 31 December 2019 (cont)
Achievements and Performance:
The trustees have continued to pursue their policy of making grants to charities drawn from the categories noted above to an extent which absorbs, as nearly as practicable, the net revenue for the year.
Financial Position The results for the year are set out in the Statement of Financial Activities on page 8.
There has been a net increase in funds during the year of £1,044,653 (2018 — net decrease of £682,162) due mainly to a decrease in the unrealised gains on investments. The trustees are satisfied that the Trust remains in a sound financial position.
Reserves Policy The reserves of the trust originate from the initial bequest and subsequent capital donations, together with 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. In general, the trustees look to distribute grants at a level commensurate with the annual net revenue of the trust, with only occasional grants being made out of capital funds.
Investment Policy and Performance There are no restrictions in the Deed on the trustees' power to invest other than that they be "...reasonably prudent having regard to the charitable trusts on which the Trust fund is held...." The trustees' investment aim is long term stable, secure and increasing income from the investments, with a lesser emphasis on capital growth. A large part of the value of Trust's portfolio (currently 25%) is held in shares in D C Thomson & Co Limited, a private company which lacks marketability, and this holding is to be regarded as an equity holding when looking at overall portfolio proportions. Up to 25°k of the portfolio should be invested in gifts or corporate bonds. 5% of the portfolio can be invested in smaller capital companies with good yields.
The benchmark against which the portfolio is measured is the WMA Private Client Balanced Portfolio Index.
The investment portfolio is considered to have performed satisfactorily having regard to the above criteria.
Future Strategy: No changes are presently envisaged in the trust's policies as outlined above.
Auditors: So far as each trustee is aware, there is no relevant audit information of which the auditors are unaware. Each trustee has taken all the the steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the auditors are aware of it.
Approved by the above-named Trustees:
Thorntons Trustees Ltd Date 5 The Leng Charitable Trust
Statement of Trustees' Responsibilities
The trustees are responsible for preparing the Trustees' Report 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 state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these accounts, the trustees are required to:
• select suitable accounting policies and then apply them consistently;
• observe the methods and principles in the Charities SORP;
• make judgments and estimates that are reasonable and prudent;
• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the accounts; and
• prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and 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 charity's constitution. 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. 6 The Leng Charitable Trust
Independent Auditor's report to the trustees of the Leng Charitable Trust
Opinion We have audited the financial statements of the Leng Charitable Trust for the period ended 31 December 2019 which comprise the Statement of Financial Activities, the Balance Sheet, and the related notes, 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, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ire/and (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements: • give a true and fair view of the state of the charity's affairs as at 31 December 2019 and of its income and expenditure for the year then ended; • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and • have been prepared in accordance with the requirements of the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended)
Basis of 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. We are independent of the charity 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 We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: • the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or • the Trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
Other information The other information comprises the information included in the Report of the Trustees, other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion 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 such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in 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 in this regard.
Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Charities and Trustee Investment (Scotland) Act 2005 and the Charity Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion: • The information given in the financial statements is inconsistent in any material respect with the trustees' report; or • proper accounting records have not been kept, or • the financial statements are not in agreement with the accounting records and returns; or • we have not received all the information and explanations we require for our audit.
Responsibilities of Trustees As explained more fully in the Statement of Trustees' responsibilities the trustees 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 trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to cease operations or have no realistic alternative but to do so. 7 The Leng Charitable Trust
Independent Auditor's report to the trustees of the Leng Charitable Trust (cont)
Auditor's responsibilities for the audit of the financial statements We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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.
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.orq.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the trustees, as a body, in accordance with Section 44 (1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 10 of the Charities Accounts (Scotland) Regulations 2006 (as amended). Our audit work has been undertaken so that we might state to the trustees 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 charity and its trustees as a body for our audit work, for this report, or for the opinions we have formed.
MHA Henderson Loggie Chartered Accountants & Statutory Auditors Eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
The Vision Building 20 Greenmarket Dundee DD1 4QB
2-CC 3-cif, 2020
MHA Henderson Loggie is the trading name of Henderson Loggie LLP 8 The Leng Charitable Trust
Statement of Financial Activities for the year ended 31 December 2019
Unrestricted Unrestricted Total Total Schedule Revenue Capital fund 2019 2018 fund £ £ £ £
Income from:
Investments 1 320,466 320,466 300,590
Income tax repayment 191 191 201
Donations 500 500 450
Total Income 321,157 321,157 301,241
Expenditure on:
Charitable activities and governance 2 273,342 19,210 292,552 336,651
Managing funds 4 817 37,616 38,433 39,192
Total Expenditure 274,159 56,826 330,985 375,843
Net income / expenditure for year before gains/(losses) on investments 46,998 (56,826) (9,828) (74,602)
Gains on disposals of investments 6 107,988 107,988 25,747
Increase/(decrease) in unrealised appreciation on investments 6 946,493 946,493 (633,307)
Net income / (expenditure) for year and Net movement in funds 46,998 997,655 1,044,653 (682,162)
Total funds at 31 December 2018 177,875 6,894,421 7,072,296 7,754,458
Total funds at 31 December 2019 224,873 7,892,076 8,116,949 7,072,296 9 The Leng Charitable Trust
Balance Sheet as at 31 December 2019
Schedule 2019 2018 £ £ Fixed Assets Investments 6 7,926,599 6,894,460 Heritable Property 5 115,000 115,000
8,041,599 7,009,460
Current Assets Loans (due outwith one year) 7 68,000 60,000 Loans (due within one year) 12,000 Debtors 8 392 201 Cash on Deposit and on hand 115,707 111,649 196,099 171,850
Current Liabilities Creditors due within one year 9 (69,249) (109,014)
Net Current Assets 126,850 62,836
Creditors due after more than one year 9 (51,500)
Total Net Assets 8,116,949 7,072,296
Represented by:
Unrestricted funds at 31 December 2019 8,116,949 7,072,296
Thorntons Trustees Ltd. Date 10 The Leng Charitable Trust
Statement of Cash Flows for the year ended 31 December 2019
2019 2018 £'000 f'000
Net cash used in operating activities (as below) (338) (466)
Cash flows from investment activities: Dividends and interest 321 301 Proceeds from sales of investments 417 201 Cost of purchases of investments (395) (191)
Net cash from investment activities 343 311
Movement in year 5 (155)
Cash brought forward 111 266
Cash carried forward 116 111
Reconciliation of net movement of fund to net cash flow from operating activities
2019 2018 £'000 E'OOO
Net movement in funds 1,045 (682) Deduct: Investment & other income (321) (301) Deduct: Gains on investments (108) (26) Deduct: (Increase)/decrease in unrealised appreciation (946) 633 Loans made in year (20) (60) Decrease in Debtors - Increase/(decrease) in Creditors 12 (30)
(338) (466) 11 The Leng Charitable Trust
Schedule 1 Income from generated funds 2019 2018 £ £ £
Dividends and Interest, per Appendix 1 316,946 296,750
Rental income (gross) received in respect of Vicarsford Lodge 3,520 3,840
320,466 300,590
Schedule 2 Charitable Activities
Payments for maintenance of Chapel & Lodge - Revenue payments 16,433 12,217
Institutional Grants paid in year -
The Archie Foundation 20,000 University of Dundee - Archive Services 20,000 University of Dundee - CAHID project 25,000 Kettins Parish Hall 10,000 HOPE Organic 5,700 Monifieth Parish Church 25,000 Work Place Chaplaincy Scotland 2,000 British Liver Trust 2,000 109,700
Various grants of £5,000 or less 99,140 208,840 312,590
Grants committed and accrued during year but not yet paid - Salvation Army - Furniture Recycling 35,000 University of Dundee - MRI-guided ultrasound centre 30,000 Dundee Science Centre 20,000 Kettins Parish Hall 10,000 RNLI 15,000 Work Place Chaplaincy Scotland 4,000 British Liver Trust 4,000 118,000 45,000
Accruals at 31.12.18 paid in year (95,700) (78,700)
247,573 291,107
Support Costs (per Schedule 3) Revenue costs 25,769 25,880 Capital costs (Governance) 19,210 19,664 44,979
292,552 336,651
Revenue 273,342 316,987 Capital 19,210 19,664
292,552 336,651 12 The Leng Charitable Trust
2019 2018 £ £ £ £ Schedule 3 Charitable Support Costs Activities Governance Total Total
Thorntons Law LLP, administration fees 25,769 17,180 42,949 43,134 Henderson Loggie, audit fees 1,920 1,920 1,860 Thorntons Law LLP, taxation fees 312 , Independent Examiner fee re Trust for St Mary Abbots Church 100 100 100 Miscellaneous 10 10 138
25,769 19,210 44,979 45,544
In 2019, £25,769 (2018 - £25,880) of support costs were attributable to Revenue and £19,210 (2018 - £19,664) to Capital.
No trustees received any remuneration or expenses from the trust during this or the previous year.
The trust has no employees.
Schedule 4 Costs of managing funds
Thorntons Investment Management Ltd, portfolio management fees (including Dr J E Leng's Trust for St Mary Abbots Church) 37,616 38,126
Agents' costs re rent of Vicarsford Lodge 817 1,066
38,433 39,192
In 2019, £37,616 (2018 - £38,126) of costs were attributable to Capital and £817 (2018 - £1,066)to Revenue.
A majority of the shareholders in Thorntons Investment Management Ltd are partners in Thorntons Law LLP.
Schedule 5 Heritable Property
Vicarsford Lodge —
Market value as at 31.12.18 and 31.12.19, per valuation by Trustees 115,000 13 The Leng Charitable Trust
Schedule 6 Investments Listed Unlisted Total £ £ £
Book Value as at 31.12.18 3,913,118 322,452 4,235,570 Unrealised appreciation as at 31.12.18 1,263,332 1,395,558 2,658,890
Market Value as at 31.12.18 5,176,450 1,718,010 6,894,460
Movements in year: Purchases at cost, per appendix 2 395,107 395,107 Sales - proceeds, per appendix 2 (417,449) (417,449) realised gains, per appendix 2 107,988 107,988 Increase in unrealised appreciation 556,103 390,390 946,493
Market Value at 31.12.19, per appendix 3 5,818,199 2,108,400 7,926,1599
Book Value as at 31.12.19 3,998,764 322,452 4,321,216 Unrealised appreciation as at 31.12.19 1,819,435 1,785,948 3,605,383
5,818,199 2,108,400 7,926,599
Material investments (over 5% of portfolio value) as at 31 December 2019 were:
55,600 Alliance Trust Ord £467,318
The Trust's unlisted investment is a holding of 21,000 ordinary £1 shares in D C Thomson & Co Ltd. This holding represents 26.6% in value of the Trust's investment portfolio.
Investment Risks
FRS 102 requires the disclosure of information in relation to certain investment risks. These risks are set out by FRS 102 as follows: Credit risk this is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. Market risk this comprises currency risk, interest rate risk and other price risk.
Currency risk this is the risk that the fair value or future cash flows of a financial asset will fluctuate because of changes in foreign exchange rates.
Interest rate risk this is the risk that the fair value or future cash flows of a financial asset will fluctuate because of changes in market interest rates. Other price risk this is the risk that the fair value or future cash flows of a financial asset will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market. The Charity has exposure to these risks because of the investments it makes to implement its investment strategy. The Trustees manages investment risks, including credit risk and market risk, within agreed risk limits which are set taking into account the Charity's strategic investment objectives. These investment objectives and risk limits are implemented through the investment manager agreements in place with the Charity's investment managers and monitored by the Trustees by regular reviews of the investment portfolios.
Further information on the Trustees' approach to risk management and the Charity's exposure to credit and market risks are set out below.
14 The Leng Charitable Trust
Schedule 6 Investments (cont)
Credit Risk The Charity invests in pooled investment vehicles and is therefore directly exposed to credit risk in relation to the instruments it holds in the pooled investment vehicles and is indirectly exposed to credit risks arising on the financial instruments held by the pooled investment vehicles.
Analysis of direct credit risk Direct credit risk arising from pooled investment vehicles is mitigated by the underlying assets of the pooled arrangements being ring-fenced from the pooled manager, the regulatory environments in which the pooled managers operate and diversification of investments amongst a number of pooled arrangements. The Trustees carry out due diligence checks on the appointment of new pooled investment managers and on an ongoing basis monitor any changes to the regulatory and operating environment of the pooled manager.
Pooled investment arrangements used by the Charity comprise authorised unit trusts.
Indirect credit risk arises in relation to underlying investments held in the bond pooled investment vehicles. This risk is mitigated by only investing in pooled funds which invest in at least investment grade credit rated securities.
Currency risk The Charity is subject to currency risk because some of the Charity's investments are held in overseas markets, via the pooled investment vehicles. At the year end, the Charity's exposure to funds investing in overseas securities was £392,113 (2018: £364, 656).
Interest rate risk The Charity is subject to interest rate risk through investments comprising bonds. At the year end the Charity's exposure to funds investing in bonds was £983,939 (2018: £931,362).
Other price risk Other price risk arises principally in relation to equities held in pooled vehicles. The Charity manages this exposure to other price risk by constructing a diverse portfolio of investments across various markets. At the year end the funds exposure to these funds was £2,762,277 (2018: £2,410,595).
Schedule 7 2019 2018 Loans
(a) Interest free, unsecured Loan made to Dundee Rep and Scottish Dance Theatre Ltd 60,000 60,000
(b) Interest free, unsecured Loan made to Dundee East Community Sports Club 20,000
80,000 60,000
(a) The loan is to be repaid in 60 monthly instalments of £1,000, commencing April 2020. (b) The loan is to be repaid in 4 annual instalments of £5,000, commencing June 2020.
Loans repayable within one year 12,000 Loans repayable outwith one year 68,000 60,000
80,000 60,000 15 The Leng Charitable Trust
2019 2018 Schedule 8 £ £ Debtors
Income tax recoverable 392 201
Schedule 9 Creditors
Institutional grants - due within one year 66,500 due after more than one year 51,500 118,000 95,700
Thorntons, balance of administration fees to 31.12.19 949 11,634 Henderson Loggie, audit fees for year to 31.12.19 (est) 1,800 1,680
120,749 109,014 16 The Leng Charitable Trust
Notes to the Accounts
1. Accounting Policies
Basis of Preparation and assessment of going concern The accounts are prepared under the historical cost convention as modified by the revaluation of investment assets and include the results of the charity's operations as indicated in the financial report, all of which are continuing.
The accounts have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Statement of Recommended Practice: "Accounting and Reporting by Charities preparing their accounts in accordance with FRS 102" (SORP FRS 102) and comply with the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended).
The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
The accounts are prepared in sterling which is the functional currency of the trust. Monetary amounts in these accounts are rounded to the nearest £ or nearest £'000 as appropriate
The trust constitutes a public benefit entity as defined by FRS 102.
The trustees consider that there are no material uncertainties about the trust's ability to continue as a going concern. With respect to the next reporting period (2020), the most significant areas of uncertainty that affect the carrying value of assets held by the trust are the level of investment return and the performance of investment markets (see the 'Investment Policy and Performance' and 'Risk Management' sections of the trustees' annual report for more information).
Funds Structure Unrestricted capital and income funds comprise those funds which the trustees are free to use for any purpose in furtherance of the charitable objects.
Income and Expenditure Investment income is accounted for in the period in which the Trust is entitled to receipt. Expenditure is included on an accruals basis. All other income has been recognised on the basis of entitlement, certainty and measurement.
Thorntons' fees include an amount relating to work carried out for Dr J E Leng's Trust for St Mary Abbots Church. The trustees have agreed that fees relating to such work be charged through The Leng Charitable Trust.
Grants Grants comprise those paid in the accounting period and, when applicable, include grants payable in future accounting periods where there exists a legal obligation to make such payments.
Debtors Debtors include amounts owed to the trust. Debtors are measured at their recoverable amounts - the amount the trust anticipates it will receive from a debt.
Creditors Creditors are recognised where the trust has a present obligation resulting from a past event that will result in the transfer of funds to a third party and the amount due to settle the obligations can be measured reliably. Creditors are normally recognised at their settlement amount.
Financial Instruments The charity has financial assets that qualify as basic instruments and assets qualifying as instruments measured at fair value. Financial liabilities of the charity only qualify as basic instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Financial instruments measured at fair value are initially recognised at transaction value and are subsequently measured at their fair value with remeasurements being taken to the statement of financial activities.
2019 2018 £ Carrying amount of financial assets
Financial assets that are debt instruments measured at amortised cost 80,392 60,201 Financial assets measured at fair value through statement of financial activities 7,926,599 6,894,460
Carrying amounts of financial liabilities Financial liabilities measured at amortised cost 120,749 109,014
Financial assets that are debt instruments measured at amortised cost comprise of other debtors. Financial assets measured at fair value through statement of financial activities comprise of listed investments. Financial liabilities measured at amortised cost comprise of accruals. 17 The Leng Charitable Trust
Notes to the Accounts (cont)
Investments Investments are shown at market value, where available, or otherwise at (i) the latest available valuation known to the trustees or (ii) cost, at their discretion. Realised gains or losses are treated as capital and are dealt with in the Statement of Financial Activities. Unrealised appreciation or depreciation in the value of investments is also dealt with in the Statement of Financial Activities.
Heritable Property The valuation of the heritable property owned by the trust is reviewed annually by the trustees. The value as at 31 December 2019 was confirmed as £115,000.
Liabilities Liabilities are amounts due to creditors. Liabilities are measured at their settlement amount. A liability is recognised for the amount that the trust anticipates it will pay to settle the debt.
VAT Irrecoverable VAT is charged against the cost of resource expenditure for which it has been incurred.
2. Related party transactions There are no related party transactions during the year which require disclosure.
3. Investment Managers The trustees approve the continued appointment of the Investment Managers as detailed in the Report of the trustees in these Accounts, and on the same basis as contained in the Investment and Financial Services Terms of Business Agreement currently in force.
4. Auditors The trustees approve the continued appointment of the Auditors as detailed in the Report of the trustees in these Accounts.
5. Nomineeship The trustees approve the appointment of the nominee company as detailed in the General Information section in these Accounts to continue to hold certain or all of the investments owned by the trustees, and that on the same basis as contained in the Investment and Financial Services Terms of Business Agreement currently in force. Appendix 1
Leng Charitable Trust Year ended 31st December 2019
Summary of Dividends and Interest
Net Income Appendix Income Tax UK Company Dividends per TIM Ltd App 1(a) 112,733 per Thorntons 110,460 223,193
UK Unit Trusts & OEIC Dividends per TIM Ltd App 1 (a) 45,532
UK Unit Trusts & OEIC Interest per TIM Ltd App 1 (a) 8,421
UK Gilt & Other Interest (Gross) per TIM Ltd App 1 (a) 5,777
UK Deposit Interest (Gross) per Thorntons 49
UK Unit Trusts & OEIC PID Int per TIM Ltd App 1 (a) 8,633
Property Income Distributions per TIM Ltd App 1 (a) 3,753 191
Foreign Dividend Income per TIM Ltd App 1 (a) 13,711
Foreign Unit Trust & OEIC Income per TIM Ltd App 1 (a) 7,877
316,946 191 Appendix 2 1 of 1
Leng Charitable Trust Year ended 31 December 2019
Investment Transactions
Purchases-
Date Name Qty Transaction Cost 23.01.19 Royal London Stg Extra Yd Bond Z Inc 57,674 Purchase 60,000.00 30.01.19 HICL Infrastructure Ord 45,440 Purchase 74,999.27 Threadneedle UK Property AIF 92,745 Purchase 75,000.00 14.02.19 City of London Ord 13,641 Purchase 54,997.73 28.02.19 Royal London Corp Bd Inst Inc Z 24 Purchase 24.63 MI Chelverton Uk Equity Inc 33 Purchase 38.33 Janus Henderson Equity Inc & Gth I Inc 8 Purchase 49.17 16.04.19 HICL Infrastructure Ord 46,065 Purchase 74,999.55 BT Group Ord 15,176 Purchase 34,999.09 SSE Ord 1,756 Purchase 19,998.95 25.04.19 Rolls-Royce C shares 443,750 Cap'n Issue 167.74 * 24.10.19 Rolls-Royce C shares 287,500 Cap'n issue 142.52 *
395,416.98 Less: cost transferred from existing holding -310.26 *
395,106.72
Disposals - Gain/ Date Name Qty Transaction Cost Proceeds Loss 07.01.19 Rolls Royce C shares 287,500 Redemption 116.00 287.50 172 23.01.19 Henderson Euro Focus Trust Ord 4,466 Sale 24,832.00 48,653.40 23,821 HSBC Ord 6,740 Sale 35,752.00 43,101.14 7,349 Aviva Ord 4,852 Sale 29,856.00 20,158.32 -9,698 30.01.19 Whitbread Ord 2,592 Sale 21,902.00 127,736.27 105,834 14.02.19 Law Debenture Corp Ord 5,000 Sale 14,052.00 29,074.00 15,022 Treasury 4.75% 2020 40,000 Sale 39,503.00 42,508.07 3,005 15.02.19 LF Equity Inc C 49,859 Sale 59,775.00 47,869.24 -11,906 27.02.19 Fund unit rebate 0 Sale 0.00 112.07 112 28.02.19 Royal London Stg Extra Yd Bond Z Inc 0 Equalisation 17.26 17.26 0 15.04.19 Threadneedle UK Property AIF 0 Equalisation 67.70 67.70 0 Threadneedle UK Property AIF 0 Equalisation 4.91 4.91 0 Threadneedle UK Property AIF 0 Equalisation 256.80 256.80 0 16.04.19 Marks & Spencer Group Ord 12,900 Sale 40,015.00 36,261.24 -3,754 Centrica Ord 19,387 Sale 43,143.00 20,897.03 -22,246 25.04.19 Rolls Royce Ord shares 443,750 Cap'n issue of C shs 167.74 0.00 0 * 31.05.19 Janus Henderson Equity Inc & Gth I Inc 0 Equalisation 0.18 0.18 0 MI Chelverton Uk Equity Inc 0 Equalisation 0.11 0.11 0 28.06.19 Royal London Corp Bd Inst Inc Z 0 Equalisation 0.14 0.14 0 04.07.19 Rolls-Royce C shares 443,750 Redemption 167.74 443.75 276 24.10.19 Rolls Royce Ord shares Cap'n issue of C shs 142.52 0.00 0 *
309,771.10 417,449.13 107,988 Less: cost transferred to new holding -310.26 0.00 0*
309,460.84 417,449.13 107,988 Appendix 3 (a)
Leng Charitable Trust Year to 31st December 2019
Summary of Investment Portfolio as at 31st December 2019
Market Value
Investments managed by Thorntons Investment Management Ltd:
Per Appendix 3 (b) £5,829,775
Less: cash balance -£11,576
£5,818,199
Investments held per Thorntons Law LLP:
21,000 D C Thomson Ltd Ord shares @ £100.40 £2,108,400
Totals £7,926,599 THORNTONS Leng Charitable Trust INVESTMENTS Valuation as at 31st December 2019
CASH & FIXED INTEREST Cash Accounts
Leng Charitable Trust Charity GBP 0.20 11,576 11,576 0.00
CASH & FIXED INTEREST SUB-TOTAL 0.20 11,576 11,576
NON-EQUITY RISK UK Fixed Coupon Gilts
UNITED KINGDOM ( GOVERNMENT OF ) 1.22 58,000 122.4 70,992 63,053 7,939 2,900 4.08 5% STK 07/03/2025 GBP100 plus 115 days accrued interest 916
UK Index-Linked Gilts
UNITED KINGDOM ( GOVERNMENT OF ) 5.23 155,000 196.7395 304,946 166,497 138,449 1,938 0.64 1.25% IDX-LKD STK 22/11/2027 GBP0.01 plus 39 days accrued Interest 208
GBP Corporate Bond Collectives
ISHARES 1.78 686 151.145 103,685 99,957 3,728 2,526 2.44 GBP CORPORATE BOND UCITS ETF
!SHARES 1.71 936 106.54 99,721 99,961 (240) 2,023 2.03 GBP CORP BND 0-5YR UCITS E T F
KAMES CAPITAL 1.75 80,262.5241 1.2685 101,813 99,664 2,149 2,342 2.30 INVESTMENT GRADE BOND B DIS
M&G INVESTMENT MANAGEMENT LIMITED 1.07 150,000 0.4161 62,415 55,229 7,186 2,187 3.50 CORPORATE BD STERLING X INC NAV
ROYAL LONDON UNIT TRUST MANAGERS 1.75 95,432.2426 1.07 102,112 99,341 2,771 3,749 3.67 CORPORATE BOND FD INSTIT INC Z GBP NAV
GBP Strategic Bond Collectives
ROYAL LONDON ASSET MANAGEMENT BD FD 2.37 128,478.07 1.0761 138,255 136,037 2,218 8,335 6.03 STERLING EXTRA YIELD BOND Z INC
Portfolio No. JP000178A Page 4 of 30 Valuation provided by AJ Bell Securities THORNTONS Leng Charitable Trust INVESTMENTS Valuation as at 31st December 2019
I Commercial Property - UK
THREADNEEDLE INVESTMENT SVCS LTD 4.06 296,539.2403 0.798 236,638 248,763 (12,125) 12,623 5.33 UK PROPERTY AIF INST GROSS INC NAV
Target Absolute Return Funds
SMITH & WILLIAMSON INVESTMENT FUNDS 1.91 77,260.4328 1.4441 111,572 100,000 11,572 597 0.53 S&W DEFENSIVE GROWTH B GBP INC
Specialist Collectives
KAMES CAPITAL PLC 2.46 125,185.9556 1.1465 143,526 137,314 6,212 5,361 3.74 DIVERSIFIED MONTHLY INCOME B INC
Infrastructure Collectives
HICL INFRASTRUCTURE PLC 2.68 91,505 1.708 156,291 149,999 6,292 7,549 4.83 ORD GBP0.0001
NON-EQUITY RISK SUB-TOTAL 27.99 1,631,966 1,455,815 176,151 52,130 3.19
EQUITY RISK UK Equities - Oil & Gas
BP 0.50 6,223 4.71725 29,355 29,841 (486) 1,924 6.56 ORD USDO 25
ROYAL DUTCH SHELL 2.34 6,096 22.3975 136,535 93,253 43,282 8,644 6.33 'B'ORD EUR0.07
UK Equities - Basic Materials
BHP GROUP PLC 0.80 2,632 17.785 46,810 46,465 345 2,771 5.92 ORD USD0.50
JOHNSON MATTHEY 1.20 2,331 29.945 69,802 29,955 39,847 2,022 2.90 ORD GBP1.109245
Portfolio No. JP000178A Page 5 of 30 Valuation provided by AJ Bell Securities THORNTONS Leng Charitable Trust INVESTMENTS Valuation as at 31st December 2019 r
RIO TINTO 1,230 45.0275 55,384 45,261 10,123 3,802 6.86 ORD GBP0.10
UK Equities - Industrials
PERSIMMON 0.62 1,338 26.96 36,072 17,082 18,990 3,144 8.72 ORD GBP0.10
ROLLS ROYCE HOLDINGS 0.00 287,500 0 0 143 (143) 0 0.00 C SHS JAN 2020 (ASSD REDEEM)
ROLLS ROYCE HOLDINGS 0.73 6,250 6.838 42,738 21,754 20,984 731 1.71 ORD GBP0.20
WEIR GROUP 1.05 4,050 15.0925 61,125 11,849 49,276 1,901 3.11 ORD GBP0.125
UK Equities - Consumer Goods
DIAGEO 2.07 3,765 32.0025 120,489 27,689 92,800 2,582 2.14 ORD GBP0.28 101/108
UNILEVER PLC 2.20 2,950 43.5075 128,347 46,093 82,254 4,179 3.26 ORD GBP0.031111
UK Equities - Health Care
ASTRAZENECA 2.49 1,906 76.065 144,980 56,412 88,568 4,168 2.88 ORD USD0.25
GLAXOSMITHKLINE 1.24 4,075 17.788 72,486 51,894 20,592 3,260 4.50 ORD GBP0.25
UK Equities - Consumer Services
WH SMITH PLC 1.29 2,901 25.97 75,339 22,495 52,844 1,688 2.24 GBP0.2209
UK Equities - Telecommunications
B T GROUP 1.04 31,536 1.9249 60,704 74,997 (14,293) 4,857 8.00 ORD GBP0.05
Portfolio No. JP000178A Page 6 of 30 Valuation provided by AJ Bell Securities THORNTONS Leng Charitable Trust INVESTMENTS Valuation as at 31st December 2019 r
VODAFONE GROUP 0.59 23,454 1.4681 34,433 35,030 (597) 1,719 4.99 ORD USDO 2095238
UK Equities - Utilities
S S E PLC 1.32 5,348 14.3875 76,944 73,447 3,497 4,278 5.56 GBP0.50
UK Equities - Financials
HANSTEEN HLDGS 0.33 16,449 1.167 19,196 14,064 5,132 954 4.97 ORD GBP0.10
LAND SECURITIES GROUP 1.11 6,521 9.899 64,551 44,648 19,903 3,009 4.66 ORD GBP0.106666666
LEGAL & GENERAL GROUP 2.55 49,000 3.034 148,666 63,992 84,674 8,208 5.52 ORD GBP0.025
UK All Companies Collectives
HENDERSON GLOBAL INVESTORS 3.05 27,181.5 6.549 178,012 198,336 (20,324) 8,323 4.68 UK EQUITY INCOME I INC NAV
UK Equity Income Collectives
CITY OF LONDON INVESTMENT TRUST 4.56 60,038 4.4325 266,118 254,995 11,123 11,407 4.29 ORD GBP0.25
FRANKLIN TEMPLETON INVESTMENT MGMT 3.56 122,055.054 1.7021 207,750 198,443 9,307 9,218 4.44 UK EQUITY INCOME W INC NAV
PHOENIX FUND SERVICES ( U K) LTD 2.58 116,189.455 1.295483 150,521 148,104 2,417 7,076 4.70 MI CHELVERTON UK EQUITY INCOME B SHS DIS
THREADNEEDLE 3.67 143,438.8307 1.4929 214,140 208,851 5,289 8,499 3.97 UK EQUITY INCOME Z INC
UK Smaller Companies Collectives
HENDERSON SMALLER COS INV TST 1.79 9,548 10.94 104,455 58,796 45,659 2,196 2.10 ORD GBP0.25
Portfolio No. JP000178A Page 7 of 30 Valuation provided by AJ Bell Securities THORNTONS Leng Charitable Trust INVESTMENTS Valuation as at 31st December 2019
Global Equity Collectives
ALLIANCE TRUST 8.02 55,600 8.405 467,318 63,988 403,330 7,706 1.65 ORD GBP0.025
BRUNNER INVESTMENT TRUST 1.78 11,367 9.11 103,553 53,005 50,548 2,271 2.19 ORD GBP0.25
F&C INVESTMENT TRUST PLC 6.20 47,300 7.645 361,609 100,765 260,844 5,440 1.50 ORD GBP0.25
LAW DEBENTURE CORP 1.56 14,000 6.48 90,720 39,345 51,375 2,730 3.01 ORD GBP0.05
SCOTTISH MORTGAGE INV TRUST 2.98 30,000 5.7975 173,925 19.420 154,505 939 0.54 ORD GBP0.05
Global Equity Income Collectives
MURRAY INTERNATIONAL TRUST 2.07 9,580 12.59 120,612 95,639 24,973 5,077 4.21 ORD GBP0.25
Asia Pacific ex Japan Collectives
B N Y MELLON 1.32 57,775.295 1.3348 77,118 74,825 2,293 2,986 3.87 ASIAN INCOME W NET INC NAV
HENDERSON FAR EAST INCOME LTD 2.31 36,828 3.655 134,606 129,308 5,298 8,249 6.13 ORD SHS NPV
Global Emerging Markets Collectives
JPMORGAN GBL EMERG MKTS INC TST PLC 1.38 59,151 1.3625 80,593 75,000 5,593 3,017 3.74 ORD GBP0.01
Specialist Equities Collectives
BLACKROCK FUND MANAGERS LTD 0.54 8,180 3.8175 31,227 17,765 13,462 1,718 5.50 WORLD MINING TRUST
EQUITY RISK SUB-TOTAL 71.81 4,186,233 2,542,949 1,643,284 150,693 3.60
Portfolio No. JP000178A Page 8 of 30 Valuation provided by AJ Bell Securities THORNTONS Leng Charitable Trust INVESTMENTS Valuation as at 31st December 2019
Investments Total 100.00 5,829,775 4,010,340 1,819,435 202,823 Accrued Interest 1,124
Grand Total 100.00 5,830,899 4,010,340 1,819,435 202,823 3.48
Portfolio No. JP000178A Page 9 of 30 Valuation provided by AJ Bell Securities