The L ister Institute of Preventive Medicine PO Box 1083, Bushey, Hertfordshire WD23 9AG 3 ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 3 1 December 2011 O

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The Lister Institute of Preventive Medicine is a company limited by guarantee (England 34479) and a registered charity (206271) The Institute was founded in 1891 and for the next 80 years played a vital role in the development of the laboratory aspects of preventive medicine as an independent research institute in the UK.

Financial pressures in the 1970s led to the closure of the research and production facilities and the conversion of the Lister Institute into a highly successful trust awarding prestigious Research Fellowships from 1982 which in 2003, again because of financial pressures, were revised to become Prize Fellowships.

The cover portrait of Lord Lister reproduced by courtesy of the Royal Veterinary College THE LISTER INSTITUTE OF PREVENTIVE MEDICINE

LEGAL AND ADMINISTRATIVE INFORMATION for the year ended 3 1 December 2 0 1 I

THE GOVERNING BODY

Dame Bridget M Ogilvie, DBE, AC, ScD, FMedSci, FRS, Chairman (Retired 9 September 2011) Professor Sir Alex Markham, DSc, FRCP, FRCPath, FMedSci, Chairman (From 9 September 2011) Mr Michael French, BSc(Eng), FCA, Hon Treasurer Professor Janet Darbyshire, CBE, FRCP, FFPH, FMedSci (Appointed I December 2011) Professor Dame Kay Davies, CBE, DBE, MA, DPhil, FMedSci, FRCP (Hon), FRCPath, FRS, (Appointed I December 2011) Hon Rory M B Guinness Professor Douglas Higgs, MB, BS, MRCP, MRCPath, DSc, FRCP, FRCPath (Appointed 9 September 2011) Mr Andrew Hutton, MA Professor Robin F Irvine, FIBiol, FMedSci, FRS Professor Sir Alec J Jeffreys, DPhil, FMedSci, FRS Professor Tony Minson, PhD Professor Peter Ratcliffe, FMedSci, FRS (Retired 9 September 2011) Mr John G Rhodes, MA Professor Geoffrey L Smith, PhD, FMedSci, FRS Professor Cheryll A Tickle, CBE, FRSE, FMedSci, FRS

Senior Man ag em ent Secretary and Director: Dr Trevor A Hince, PhD

Business Address Registered Office PO Box 1083 Macfarlanes Bushey 10 Norwich Street Hertfordshire WD23 9AG London EC4A IBD

Solicitors Investment Advisors Macfarlanes Schroders & Co Limited 20 Cursitor Street 100 Wood Street London EC4A ILT London EC2V 7ER

Bankers Partners Capital LLP Messrs Coutts & Co 5 Young Street St Martins Office London W8 5EH 440 Strand London W C2R OQS

Auditors PricewaterhouseCoopers LLP I Embankment Place Website : www.lister-institute.org.uk London W C2N 6RH Telephone: 01923 801886 THE LISTER INSTITUTE OF PREVENTIVE MEDICINE

L e g al an d administrative information for the year ended 3 1 December 201 I

THE SCIENTIFIC ADVISORY COMMITTEE

Professor Robin F Irvine, FIBiol, FMedSci, FRS, Chairman Professor Wendy Bickmore, BA, PhD, FMedSci, FRSE Professor Tim Bliss, FMedSci, FRS Professor Mary Collins, PhD, FMedSci Professor David Holden, FMedSci, FRS Dr David Ish-Horowicz, PhD, FRS Professor J Simon Kroll, FRCP, FMedSci, FRCPCH Professor Irene Leigh, OBE, MD, FRCP, FMedSci Professor Patrick Maxwell, FMedSci Professor David W Rice, MA, DPhil (Retired 9 September 2011) Professor Jonathan Waltho, BSc, PhD (Appointed 9 September 2011)

Secretary: Dr Trevor A Hince, PhD

T he f in a n c e a n d in v e s t m e n t c o m m it t e e

Mr Michael French, BSc (Eng), FCA, Chairman Hon Rory M B Guinness Mr Andrew Hutton, MA Professor Sir Alex Markham, DSc, FRCP, FRCPath, FMedSci Professor Tony Minson, PhD Dame Bridget M Ogilvie, DBE, AC, ScD, FMedSci, FRS (Retired 9 September 2011) Mr John G Rhodes, MA

Secretary: Dr Trevor A Hince, PhD THE LISTER INSTITUTE OF PREVENTIVE MEDICINE

CHAIRMAN’S ANNUAL REPORT for the year ended 3 I December 201 I

THIS IS MY FIRST REPORT as Chairman and it is entirely fitting that I should start it by paying tribute to my predecessor Dame Bridget Ogilvie. Thanks to her stewardship and vision over the last nine years, the Institute has launched its very successful Prize Fellowship scheme, and latterly introduced a popular Summer Studentship programme. This has been achieved from an initial difficult financial position and during periods of major stock market weakness and economic turmoil. It has necessitated some hard decisions such as the closure of long-standing funding schemes and the restructuring of the Institute’s administration. The Lister should be very grateful that it had Dame Bridget at the helm to help formulate and guide these major changes. On behalf of the Institute I should like to express our very sincere thanks and gratitude. However, as the new Chairman, this makes Dame Bridget a very hard act to follow! Much of what is reviewed here took place before I took over the Chairmanship in September 2011 so, in every sense, this is a joint report from Dame Bridget and myself. In investment terms the year was very ‘up and down’ with slight gains in quarters one and two followed by a fall in quarter three and only a slight recovery in the last quarter such that overall, the value of the Institute’s investment portfolio fell to £ 3 1.8m. Nevertheless the Institute awarded three Prize Fellowships, each of £200,000, and introduced the Summer Studentship scheme. This proved to be very successful and much appreciated by the Fellowship who were able to recruit some very able undergraduates to work in their laboratories for periods of up to ten weeks. The reports and the personal statements from the students indicate that many worthwhile projects were undertaken and that for several of the students the experience cemented their thoughts about going on to do a PhD after graduation. The scheme was run without undue administrative burden on the recipients and in a way that enabled them to make offers to good students early in the academic year. Whilst this is only the first year of a three-year trial period it can be con­ sidered to have been very successful so far. The Institute’s website has been expanded to indicate those Fellows who are willing to give talks in schools, to enable the schools to identify possible speakers in their areas and make contact with them. This aspect of ‘outreach’ is particularly important, but it is hard to know the extent to which it is being taken up and more work needs to be done in making schools aware that this opportunity exists to hear from world-leading researchers. It is also intended that during next year the website generally will undergo a ‘face-lift’ to become more interactive and provide more information on some of our Prize Fellows. THE LISTER INSTITUTE OF PREVENTIVE MEDICINE

Governing Body and Administrative Matters

Governing Body and Administration The revision of the Institute’s Articles of Association was completed and the new Articles unanimously adopted by the membership at the AGM. This was an important piece of work and now provides the Institute with an up-to-date set of Articles, which reflect modern legis­ lation, the Institute’s current structure and the way we operate. I should like to thank Macfarlanes for their professional advice together with John Rhodes and Trevor Hince for spearheading this project for the Lister Institute.

Having served on the Governing Body for a year, I now appreciate how committed all of its members are and the thought that they give to overseeing the Institute’s affairs - it is a great comfort to a new Chairman to have the support of such a wise body of people! The new Articles allow for a small expansion in the number of appointed members and this will enable the Institute to gain particular professional expertise when it needs it. One of the most pleasing aspects of the new Articles is that they allow the Lister to acknowledge formally Professor Sir Alec Jeffreys’ outstanding contributions to the Institute and UK bioscience in general by making him a ‘Life-member’ of the Governing Body. This also ensures that we retain his expertise! However, it is important that there is turnover of Trustees and this year we have had to bid a sad farewell to Professor Peter Ratcliffe and, of course, Dame Bridget Ogilvie herself. In their stead we are very pleased to welcome Professor Janet Darbyshire, Professor Dame Kay Davies and Professor Douglas Higgs, and hope that they will enjoy their association with the Institute. The Governing Body meets twice a year, once in London and again prior to the AGM and Fellows’ meeting in Cambridge. This latter meeting is followed by a dinner at which wider issues and future plans for the Institute can be explored in a more informal setting.

I am pleased to report that the administrative costs of the Institute have again come in below budget, yet the quality of service to the Institute remains as high as ever and for this I and the Governing Body are very grateful to Trevor Hince and his team of Naomi King and Jacky Wilson.

Institute Membership Two Prize Fellows, Dr Fiona Gribble and Professor Daan van Aalten, who completed their fellowships in 201 I have been welcomed into membership.

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Financial Matters

As I reported earlier, it was a roller-coaster year for the Institute’s investment portfolio, which overall returned a loss, finishing the year at £ 3 1.8m, having started 2011 at £33.34m. Notwithstanding this, the Institute was able to award three Prize Fellowships, totalling £600,000 and initiate the Summer Studentship scheme at a cost of £42,000. In a year of such market fluctuation it has been important to maintain close contact with our invest­ ment advisors, Partners Capital and Schröders Charities, and the Institute is indebted for the scrutiny to which the Finance and Investment Committee, under the Chairmanship of Michael French, have subjected them. There have been several detailed discussions with our advisors, particularly about our investment strategies and expectations, as markets and global economies have reacted to the various crises through the year. Overall the view was that both sets of advisors had performed reasonably well in difficult circumstances and broadly in line with their predictions. It was felt that having Partners Capital and Schröders, with their different styles and investment philosophies, had benefited the Institute. However, the Institute is very much aware that markets remain very volatile and that poor or negative economic growth both nationally and globally may limit future performance. Consequently, our expenditures must be kept under close review.

Scientific Activities

Scientific Advisory Committee The Institute has now reached the milestone of appointing its 25th Prize Fellow and the quality of the winners and their research remains as high as ever. The number of applications, at around 50 per year, indicates that there is still great interest in the scheme. This is particularly important since any funding scheme must be fulfilling a useful role and it is a great tribute to the initiators of the Lister Prize Fellowships that the award of unfettered money, enabling a young researcher to spend it in the most productive way for the development of his/her research, remains vital, especially as funding from other agencies becomes tighter and more restrictive. However, the task of selecting the Prize Fellows gets harder each year, particularly the detailed review that is necessary to identify the eight or so candidates who will be interviewed. Whilst members of the Scientific Advisory Committee (SAC) are aided by reports from international experts, their responsibility and workload are enormous. The interviews with the candidates are no less demanding since the areas of science that will be discussed vary greatly, as clearly illustrated by the research topics of this year’s winners. However, members of the SAC greatly enjoy the THE LISTER INSTITUTE OF PREVENTIVE MEDICINE

discussion with the candidates and under the skilled and supportive chairmanship of Robin Irvine the three worthy winners were identified. The Institute is extremely grateful for the hard work and dedication of Robin Irvine and all members of the SAC, but this year we must express particular thanks to Professor David Rice as he steps down from the committee after completing his term of office. In his place, and also from Sheffield, it is a pleasure to welcome Professor Jonathan Waltho, a former Lister Senior Fellow, to the SAC. O 201 I Lister Research Prize Fellowship Winners The recipients of the 201 I Lister Research Prize Fellowships, who each received the award of £200,000, were:

Prize Winner Title of Research

Dr Victoria Cowling Regulation and function of the 7-methylguanosine cap University of Dundee

Dr Michael Eddleston Prevention of deaths from late respiratory failure in organo-phosphorus University of Edinburgh pesticide poisoning

Dr Robert Klose Biochemical isolation and functional dissection of the CpG island University of Oxford proteome

Lister Research Prize 201 I winners: Dr Michael Eddleston, Dr Victoria Cowling and Dr Robert Klose

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Current and Former Lister Prize Fellows

The following were awarded Lister Research Prize Fellowships during the period of Dame Bridget Ogilvie’s chairmanship. This is an outstanding collection of scientists and represents a major contribution to the well-being of U K biomedical research:

Fellow Title of Research Awarded

Dr Nina Balthasar Identifying the novel CREB coactivator TORC2's role in 2007 University of Bristol the hypothalamic pathways controlling energy homeostasis

Dr Oliver Billker In search of the xanthurenic acid receptor of malaria The Wellcome Trust parasites-a potential target for transmission control 2004 Sanger Institute

Dr Nia Bryant Using yeast as a model system to understand the 2004 University of Glasgow insulin-dependent trafficking of GLUT4 in adipocytes

Dr Simon Bullock Mechanisms and neuronal functions of 2008 MRC Laboratory of motor-driven transport Molecular Biology, Cambridge

D r Juan Burrone The role of neuronal activity during synapse formation 2009 Kings College London

Dr Vincenzo Costanzo The role of ATM and ATR in preventing genomic instability 2006 Cancer Research UK Clare Hall Laboratories

Professor Daniel Davis Nanotubes and synapses in immune cell communication 2005 Imperial College London

Dr Rebecca Fitzgerald Translational research programme for prevention of 2008 MRC Cancer Cell Unit oesophageal adenocarcinoma Cambridge

Dr Holger Gerhardt Endothelial guidance in vascular patterning 2008 Cancer Research UK London Research Institute

Dr Fiona Gribble Secretion of incretin hormones from the mouse 2006 Cambridge Institute for intestine Medical Research University of Cambridge

Dr Andrew Jackson Cellular pathways determining human brain size 2009 Western General Hospital Edinburgh Continued overleaf

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F e l l o w Title of Research A w a r d e d

Dr Josef K ittler Miro family proteins as regulators of synaptic bio­ 2010 University College London energetics and a locus for mitochondrial dysfunction in neurological disease

Professor Paul Lehner The role of HSP70 in M HC Class 1 mediated antigen 2004 Cambridge Institute for presentation in human dendritic cells Medical Research

Dr Juan Martin-Serrano Functional parallels between HIV-I budding and the 2008 King's College London last step of cell division

Dr Robin May The molecular basis of latency and dissemination 2010 University of Birmingham during cryptococcosis

Professor Kenneth Smith Control of infection and autoimmunity by an 2007 Cambridge Institute for inhibitory Fc receptor FcyRI lb Medical Research University of Cambridge

Dr Grant Stewart Investigating the role of the RIDDLE syndrome 2009 University of Birmingham gene in promoting repair of DNA damage

Professor Tomoyuki Tanaka Mechanisms of kinetochore-microtubule 2005 University of Dundee interaction

Dr Sarah Teichmann Decoding genetic switches in T helper cell 2010 MRC Laboratory of differentiation Molecular Biology Cambridge

Professor Chris Thompson Identifying and characterising genes that control 2005 University of Manchester cell fate choice and social behaviour

Professor Daan van Aalten Structural mechanisms and specificity of O-GIcNAc 2006 University of Dundee signalling in the eukaryotic cell

Dr Fiona Wardle Transcriptional control of mesodermal cell 2007 Kings College London differentiation in vertebrates

Fellowship Activities

For those attending a Lister Fellows’ meeting for the first time, it is unique and uplifting experience with a very different atmosphere from the usual ‘scientific’ meetings. There is an air of friendship and openness, the mixing of old and new Fellows and a great diversity of scientific topics. This latter point was aptly illustrated by the talks from the three new Prize THE LISTER INSTITUTE OF PREVENTIVE MEDICINE

Fellows ranging from regulation of oncogene expression, to pesticide poisoning in Africa, and the role of CpG islands in gene regulation. The quality of these talks from the latest members of the ‘Lister family’ set the benchmark for the rest of the meeting, and the Members and Fellowship enjoyed presentations from:

• Professor Tomoyuki Tanaka - Chromosome acrobatics on the mitotic spindle • Dr Dawn Coverley - The organization of DNA replication in cancer cells • Professor Paul Lehner - Viral regulation of cellular proteins • Dr Tristan Rodriguez - Pathways underlying neural specification in mammals • Professor David Rice - Uncovering the mechanism of the Vietnam time bomb

Lively discussions amongst the audience between presentations at the Fellows’ Meeting

I am pleased to report that numbers attending the meeting were greater than last year, not least I suspect, because of the person giving the Special Lister Lecture. It was therefore with great pleasure that I had the honour of introducing Dame Bridget Ogilvie to give the lecture entitled: “Some thoughts on a life mainly in science”. She ranged over her early child­ hood on a sheep station and her education in Australia; her career as a research scientist in the UK at the National Institute for Medical Research, Mill Hill, working on the immune THE LISTER INSTITUTE OF PREVENTIVE MEDICINE

response to parasites; her Directorship of the Wellcome Trust and her philosophy concerning research funding. All this was delivered in her trade­ mark modest, self-effacing style, but what shone through was her particular passion for the issues around women in science and the need for scientists to communicate with the public. The applause and questioning clearly indicated the Institute’s respect and warm affection for its former Chairman. Following the Reception and presentation of ‘scrolls’ to new Prize Fellows, the Annual Fellows’ Dinner proceeded in its traditional style! Dame Bridget Ogilvie giving the Special Lister Lecture at the Fellows’ Meeting

Conclusion

Another very enjoyable and informative introduction to the Institute has been in listening to the Prize Fellows giving seminars in their own departments, hearing how the award has helped them develop their research groups and talking to other members of their depart­ ments about the research environment and funding issues. To all of those Fellows and their host institutions, Trevor Hince and I would like to express our thanks for their hospitality and ongoing support of the Fellows. These occasions have made the importance of the Lister Prize Fellowship award even clearer to me. The flexibility which it gives to young group leaders to bridge positions, bring in particular expertise or obtain essential items of equipment whilst they battle for ever more competitive and restrictive grant funding from other agencies, can often be a life-line for their laboratory. For these reasons it is essential to ensure that the awards go not only to the best young researchers but also where they can be most effective. I have no doubt that this has been the case in the past, but the Institute must ensure that it continues to be so in the future, as funding environments change and pressures on young researchers establishing their own laboratories for the first time change and become less predictable. During the forthcoming year members of the SAC and Governing Body will be discussing the Prize Fellowship scheme, particularly the eligibility criteria, just to ensure that it still targets the appropriate young researchers in circumstances where it can add most value and for whom it has always been intended.

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Dr Trevor Hince, Dr Robin May and Professor Sir Alex Markham at Dr May’s ‘presentation seminar' at the University of Birmingham.

Next year will mark five years since the Institute divided its investment portfolio and moved it to Partners Capital and Schraders Charities. During this period the global economic outlook has changed. It would therefore be both good practice and prudent to review our investment policy and expectations, as well as the performance of our two advisors, and this the Finance and Investment Committee will do. Dr Sarah Techmann prepares to deliver her Finally, it has been a great pleasure to be associ­ 'presentation seminar’ at the LMB, Cambridge. ated with the Institute during the last year and an honour to be its new Chairman. The experience of this year has shown me that the strength of the Institute lies in the people associated with it, whether they be Trustees, Members of the Governing Body and its sub-committees, the Membership, our Fellows or the staff and to all I offer my sincere thanks and warmest appreciation.

ALEX MARKHAM Chairman THE LISTER INSTITUTE OF PREVENTIVE MEDICINE

Re p o r t of th e g o v e r n in g b o d y for the year ended 3 I December 2011

The Governing Body presents its Annual Report Appointment and re-appointment of Trustees under the Charities Act 2011 together with the The Trustees are the fifteen (formerly twelve) audited Financial Statements of the Charity for the members of the Governing Body of whom six are year ended 31 December 2011. The Financial appointed by the members at the annual general Statements have been prepared in accordance with meeting. A maximum of six (formerly four) further the accounting policies set out in Note I (page 20) Trustees are appointed by the Governing Body and to the Financial Statements and comply with the there are currently four such appointees. One Companies Act 2006, the requirements of the additional member is Lord Iveagh’s representative, Statement of Recommended Practice 2005 another is Professor Sir Alec Jeffreys who was “Accounting and Reporting by Charities” , and the appointed to ‘life-time’ membership, and the final documents governing the constitution of the Charity. member is a representative of the Royal Society. Trustees, other than the two nominated representa­ REFERENCE AND ADMINISTRATIVE tives, Professor Sir Alec Jeffreys and exceptionally DETAILS those appointed by the Governing Body, serve for a Reference and administrative information is set out maximum of six years and a system of planned rota­ on pages I and 2 of this report. tion is in place. When considering appointment or nomination for election as Trustees, the Governing Members of the Governing Body, Body has regard to the specialist skills needed. Directors and Trustees The members of the Governing Body are, for the Induction and training of Trustees purposes of company law, directors of the Institute New Trustees undergo induction sessions with the and, for the purposes of charity law, trustees of the Chairman, Treasurer and Director during which they Institute and throughout this report are collectively will gain an understanding of the Institute’s structure, referred to as the Trustees. activities, financial position and future strategies. Details of the Trustees serving throughout the Prior to appointment they will attend, as an year, unless otherwise stated, are set out on page I . ’observer’, one meeting of the Governing Body. New Trustees will also be made aware of their legal STRUCTURE, GOVERNANCE AND obligations with regard to the charity and company MANAGEMENT law. In addition, new Trustees will be advised of Constitution appropriate literature and training courses. The Institute is registered with the Charity Commission for England and Wales (registration Organisation number 206271). It is incorporated and registered in The Institute is governed by its Governing Body England and Wales under the Companies Act 2006 which is responsible for setting policies, authorising as a company limited by guarantee and not having a actions on all significant operational issues and ensur­ share capital (company number 34479). It Is governed ing legality and good practice. The Governing Body by its Memorandum and Articles of Association which meets formally twice a year. were amended during the year and in compliance with Specific authorities are delegated to two sub­ the Companies Act 2006 the new Articles now include committees in particular areas. The Scientific the provisions made in the Memorandum. Revisions Advisory Committee (see page 2 for membership) to the Articles take account of the current activities has responsibility for the selection of the Lister Prize of the Institute, provide for a change to the composi­ Fellows and the monitoring of their scientific activities, tion of the Governing Body and reflect current legis­ as well as providing scientific and medical advice to lation; they were formally adopted at the AGM in the Governing Body as required. The Finance and September 2011. The Institute has charitable status. Investment Committee (see page 2 for membership)

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REPORT OF THE GOVERNING BODY for the year ended 3 I December 2011 has responsibility for interaction with the Institute's Objectives and activities investment advisors, ensuring implementation of the The statutory Object of the Institute is to further Institute’s investment policy and monitoring perfor­ understanding and progress in preventive medicine mance, It prepares and submits to the Governing by promoting excellence in biomedical research in Body the annual budget, and subsequently monitors the UK. performance against it. It also advises the Governing When founded in 1891, the Institute sought to Body, as required, on other financial and risk matters. achieve this objective by establishing a research The routine management of the Institute’s activities institute specialising in the area of ‘infections’ and is undertaken by its Director, aided by the Adminis­ their prevention by immunisation and other means. trator and the Accountant. All staff work from home. It complemented these research activities by the production and supply of materials such as vaccines Risk Management and toxins. The Trustees assess the risks facing the Institute and The Institute continued in this mode until the review the effectiveness of the controls to monitor late 1970s when increasing financial and regulatory and mitigate against them. A Risk Management pressures caused the cessation of these activities. Register is maintained and formally reviewed annually Funds from the resultant sale of land and buildings by the Governing Body. created the funds from which present-day activities The key controls used by the Institute include: are financed; at 31 December 2011 these funds stood at £31,802m. From the 1980s the Institute has pursued • Formal agendas for all Governing Body meetings its objective by the provision of grant funding to facili­ • Strategic planning, budgeting and management tate the research and careers of high quality individuals accounting working in areas of biomedicine relevant to preven­ • Formal written policies tive medicine. It has done this because it believes • Clear authorisation and approval levels that the acquisition and advancement of knowledge is • Regular review of Fellows’ scientific reports crucial to the understanding of health and disease and that research to achieve this is driven forward by The specific risk of bribery associated with any of high quality individuals and their supporting staff. the Institute’s activities was reviewed during the year following the introduction of The Bribery Act 2010 Principal activities and clear policies and procedures have been devel­ In pursuance of this objective, during 2011 the oped and communicated to all Trustees, staff and Institute awarded three new Prize Fellowships. Members. In addition, the Institute has introduced a Summer The principal risk facing the Institute lies in its Studentship scheme to enable up to twenty under­ ability to maintain and protect the value in real terms graduates per year to work with Lister Fellows or of its investments and to generate from them on a former Fellows in order to gain experience of bio­ long term basis a consistently high overall return. This risk is mitigated by the Institute’s appointment medical research with the hope that they might of experienced fund managers with a proven track consider it as a career. However, twenty-one student­ ships were awarded in 201 I. record; by internal controls that allow close and regular monitoring of their performance against benchmarks; by the Institute’s requirement of its Achievement and Performance fund managers to re-tender periodically and compet­ The Scientific Advisory Committee has monitored itively for appointment, and by regular meetings that the performance of the current eighteen Lister Prize formally review investment performance and policy Fellows, through detailed review of the annual and include one-to-one presentations by the fund reports on their research which include details of all managers. publications and presentations. The Scientific 13 THE LISTER INSTITUTE OF PREVENTIVE MEDICINE

REPORT OF THE GOVERNING BODY for the year ended 3 I December 2011

Advisory Committee has reported to Trustees that All Lister Fellows are actively encouraged, where it is of the view that all Fellows are undertaking high appropriate, to develop their research findings for quality research and producing new knowledge that potential public benefit and the Scientific Advisory will contribute significantly to our understanding of Committee has regard to this when reviewing their disease, its causes, treatment and prevention. The research reports. The Lister Institute therefore reports of the research undertaken by the Summer benefits the public or a sector of it without imposing Students have also been reviewed and found to be any restrictions. Applications from individuals are very satisfactory. only accepted when demonstrably consistent with Three Lister Prize Fellowships were awarded in the charitable objectives of the Institute. 2011 to Drs Cowling, Eddleston and Klose from a field of 44 initial applicants, following extensive scien­ Investment policy and performance tific review of their applications and final interview by The Institute’s investment objective is to develop and the Scientific Advisory Committee. (More details of maintain its financial resources through the selection of the Prize Fellows and their research are provided on investments, consistent with an acceptable level of risk. page 6). Each Prize Fellowship provides £200,000 The Institute’s investment portfolio is split between which may be spent over five years on the recipient’s Schröders and Co Limited (Schröders Charities) and research, although the funds are provided to the Partners Capital LLP who both operate under host institution at the commencement of the award. mandates agreed in advance with the Finance and Twenty-one Summer Studentships were awarded Investment Committee. These mandates set out an in 201 I, each is a £2,000 student bursary and is paid overall target asset allocation with allowable ranges to the host institution at the commencement of the for each category of asset. award for the support of the student for up to a Both investment advisors invest on a total returns ten-week period. One of the awards was converted basis through a variety of pooled funds and in accord­ to the support of a schools-related project in lieu of ance with the Institute’s ‘Investment Policy Statement’ a studentship. which states the overall investment objective and sets The Institute maintained its commitment to foster­ the investment return objectives, the risk parameters, ing scientific interchange and collaboration within the the performance measures and review procedures Fellowship by holding its 27th Annual Research for the portfolio. The investment advisors are Fellowship meeting at Christ’s College, Cambridge. informed at the beginning of the financial year of the Institute's likely cash requirements, both in terms of Public Benefit the amount and the timing of any draw-down, and are The statutory objectives, aims and activities of The asked to keep in an income or cash account sufficient Lister Institute of Preventive Medicine are to further funds to meet them. The Institute has in place an understanding in preventive medicine by promoting ethical investment policy which does not permit direct biomedical research as set out on page 13 and 14 of investment in tobacco or tobacco-related companies. this Report. To this end, the Trustees are satisfied The Institute’s overall financial return objective is that they fully comply with the duty in section 4 of to preserve and if possible enhance the purchasing the Charities Act 2006, namely to have due regard power of its portfolio assets, net of costs and to the public benefit guidance published by the approved withdrawals, over rolling three-year periods. Charity Commission. This goal is synonymous with the pursuit of a time- The public benefit of the Institute’s grant-making is weighted net return on portfolio assets that equals clearly identifiable in the ‘Achievement and and if possible exceeds cost inflation as measured by Performance’ paragraphs above and in the list of the UK Consumer Price Index plus the Institute’s Research Prize Fellows together with their areas of long-term spending rate of 4% measured over research on pages 7 and 8 of the Chairman’s report. corresponding three-year periods.

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REPORT OF THE GOVERNING BODY for the year ended 3 I December 2011

The performance of the investment portfolio is current and future commitments as they fall due and reviewed by the Finance and Investment Committee, ensure that adequate funds remain available to enable which had two meetings in the year with the invest­ them to make awards in perpetuity. ment advisors to review performance, liquidity The adequacy of the level of reserves and the con­ within the portfolio, and the due diligence undertaken tinuing appropriateness of the policy are reviewed on on potential new investment vehicles. In addition, the an annual basis by the Trustees. Despite the current Institute receives detailed quarterly valuation and downturn in the level of investments compared with transaction reports. In a fluctuating and difficult year the high of 2007 they feel satisfied with the policy over the fund has fallen from £33.344m to £3 1,802m the long-term and the ability of the Institute to main­ including withdrawals of £580,000. tain appropriate levels of activity in the short-term. More details of the Institute’s activities are set out in the Chairman’s Report on pages 3 to II. Plans for the future The Institute’s future policy is to continue to pursue its current objectives. It will therefore maintain the FINANCIAL REVIEW Prize Fellowship scheme which it sees as a funding Allocation of resources priority. The Summer Studentship scheme will also The Institute, which does not seek to raise funds be maintained together with the opportunity for from the public, depends primarily on investment schools to receive talks from the Institute’s returns to meet its pension provision payments, Fellowship on science and biomedical subjects as part administrative expenditure and expenditure in further­ of an ‘outreach’ programme . ance of the Charity's objectives. The total return on Statement of Trustee responsibilities investments for the year was realised/unrealised losses The Trustees (who are also directors of The Lister of £ 1. 186m and investment income of £331,000. Institute of Preventive Medicine for the purposes of The resources expended totalled £921,000 of company law) are responsible for preparing the which £754,000 was resources expended for the Trustees’ Annual Report and the financial statements Institute’s charitable activities. in accordance with applicable law and United Kingdom As the Prize Fellowships are fixed sum awards, Accounting Standards (United Kingdom Generally expenditure can be regulated by altering the number Accepted Accounting Practice). and/or value of prizes awarded each year. This will Company law requires the Trustees to prepare be done in light of the income and realised/unrealised financial statements for each financial year which give gains generated from our investment portfolio. This a true and fair view of the state of affairs of the will be sensitive to the performance of our invest­ charitable company and of the incoming resources ments and will be reviewed annually before fresh and application of resources, including the income commitments are made. In the year, despite the rising and expenditure, of the charitable company for that value of the investment portfolio and returns, but period. In preparing these financial statements, the conscious of the continuing economic uncertainties, Trustees are required to: the Trustees felt it prudent to continue the award of three Prizes and to maintain their value at £200,000 • select suitable accounting policies and then apply each. The Summer Studentship scheme at a total them consistently; cost of £42,000 can be reviewed each year with . observe the methods and principles in the regard to both number and value. Charities SORP; • make judgements and estimates that are Reserves policy reasonable and prudent; The policy of the Trustees is to maintain adequate • state whether applicable UK accounting standards financial resources to provide income to meet have been followed, subject to any material

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Re p o r t of th e g o v e r n in g b o d y for the year ended 3 I December 2 0 11

departures disclosed and explained in the financial statements; and • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company 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 charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the Trustees are aware: there is no relevant audit information of which the charitable company’s auditor is unaware; and the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. The Trustees are responsible for the maintenance and integrity of the corporate and financial informa­ tion included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

By Order of the Governing Body

ALEX F MARKHAM Chairman

MICHAEL FRENCH Treasurer

9 July 2012

16 THE LISTER INSTITUTE OF PREVENTIVE MEDICINE

INDEPENDENT AUDITORS' REPORT to the Members of The Lister Institute of Preventive Medicine

W e have audited the financial statements of The Report of the Governing Body to identify material Lister Institute of Preventive Medicine for the year inconsistencies with the audited financial statements. ended 31 December 201 I which comprise the If we become aware of any apparent material mis­ Statement of Financial Activities, the Balance Sheet statements or inconsistencies we consider the impli­ and the related notes. The financial reporting frame­ cations for our report. work that has been applied in their preparation is applicable law and United Kingdom Accounting Opinion on financial statements Standards (United Kingdom Generally Accepted In our opinion the financial statements: Accounting Practice). • give a true and fair view of the state of the charitable company’s affairs as at 3 1 December Respective responsibilities of trustees and 2011 and of its incoming resources and application auditors of resources, including its income and expenditure, As explained more fully in the Trustees’ for the year then ended; Responsibilities Statement set out on pages 15 and • have been properly prepared in accordance with 16, the Trustees (who are also the directors of the United Kingdom Generally Accepted Accounting charitable company for the purposes of company law) Practice; are responsible for the preparation of the financial statements and for being satisfied that they give a • have been prepared in accordance with the true and fair view. requirements of the Companies Act 2006. Our responsibility is to audit and express an opinion on the financial statements in accordance Opinion on other matters prescribed by the with applicable law and International Standards on Companies Act 2006 Auditing (UK and Ireland). Those standards require In our opinion the information given in the Trustees’ us to comply with the Auditing Practices Board’s Annual Report for the financial year for which the Ethical Standards for Auditors. financial statements are prepared is consistent with This report, including the opinions, has been pre­ the financial statements. pared for and only for the charity’s members as a body in accordance with Chapter 3 of Part 16 of the Matters on which we are required to report Companies Act 2006 and for no other purpose. by exception W e do not, in giving these opinions, accept or W e have nothing to report in respect of the following assume responsibility for any other purpose or to any matters where the Companies Act 2006 requires us other person to whom this report is shown or into to report to you if, in our opinion: whose hands it may come save where expressly • adequate accounting records have not been kept agreed by our prior consent in writing. or returns adequate for our audit have not been received from branches not visited by us; or Scope of the audit of the financial • the financial statements are not in agreement with statements the accounting records and returns; or An audit involves obtaining evidence about the amounts and disclosures in the financial statements • certain disclosures of Trustees’ remuneration sufficient to give reasonable assurance that the finan­ specified by law are not made; or cial statements are free from material misstatement, • we have not received all the information and whether caused by fraud or error. This includes an explanations we require for our audit. assessment of: whether the accounting policies are appropriate to the charitable company’s circum­ stances and have been consistently applied and ade­ Murray Legg (Senior Statutory Auditor) quately disclosed; the reasonableness of significant for and on behalf of PricewaterhouseCoopers LLP accounting estimates made by the Trustees; and the Chartered Accountants and Statutory Auditors overall presentation of the financial statements. In London addition, we read all the financial and non-financial information in the Chairman's Annual Report and the 9 July 2012 THE LISTER INSTITUTE OF PREVENTIVE MEDICINE

STATEMENT OF FINANCIAL ACTIVITIES for the year ended 3 I December 201 I

2011 2010 Notes £’000 £'000 Incoming resources Incoming resource from generated funds: Investment income 2 331 379 Other incoming rescources 3 9 9 Total incoming resources 340 388

Resources expended Costs of generating funds: Investment management costs 4 (120) (120) Charitable Activities: Prizes & Summer Studentships awarded in year 6 (642) (600) Support costs 7 (112) (113) Governance costs 8 (47) (43) Total resources expended (921) (876)

Net expenditure (581) (488)

(Losses)/gains on investment assets (U 86) 2,879 Pension actuarial gains/(losses) 1 17 (16) Net movement in funds (1,650) 2,375

Total funds brought forward 33,265 30,890 Total funds carried forward 31,615 33,265

All items in the above Statement of Financial Activities relate to continuing operations for both years. The Institute has no other recognised gains and losses other than as stated above and hence no separate income and expenditure statement has been shown.

The notes set out on pages 20 to 24 form part of these financial statements.

18 THE LISTER INSTITUTE OF PREVENTIVE MEDICINE

Ba l a n c e S h e e t as at 3 1 December 201 I Company no. 34479

2011 2010 Notes £'000 £’000 Fixed assets Investments 10 31,802 33,344 Total fixed assets 31,802 33,344

Current assets Debtors 1 1 17 36 Cash at bank and in hand 12 231 241 Total current assets 248 277

Current liabilities Creditors: amounts falling due within one year 13 (233) (25) Net current assets 15 252

Total assets less current liabilities 31,817 33,596 Creditors: amounts falling due after more than one year Pension provision 14 (202) (331) N e t a sse ts 31,615 33,265

represented by Unrestricted funds 31,615 33,265 Total charity funds 31,615 33,265

The Trustees have taken advantage of the exemptions conferred by the Companies Act 2006, on the grounds that the Institute is entitled to the benefit of those exemptions as a small company.

These financial statements were approved by the Governing Body on 9 July 2012

ALEX F MARKHAM Members of the MICHAEL FRENCH Governing Body

The notes set out on pages 20 to 24 form part of these financial statements.

19 THE LISTER INSTITUTE OF PREVENTIVE MEDICINE

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 201 I

PRINCIPAL ACCOUNTING POLICIES

Basis of preparation The Financial Statements have been prepared in accordance with the Statement of Recommended Practice, Accounting and Reporting by Charities (SORP 2005), applicable accounting standards and the Companies Act 2006. The Financial Statements are prepared in accordance with the historical cost convention modified by the revaluation of investments. The principal accounting policies adopted in the preparation of the Financial Statements are as follows:

Incoming resources All incoming resources are accounted for on a receivable basis.

Prizes and grants The cost of Research Prize Fellowships is charged in the year awarded. Resources Expended The costs of generating funds include those fees payable to the Institute’s investment fund managers for the management of the Institute’s investment portfolio. These are accounted for on an accruals basis. Charitable expenditure comprises all expenditure directly relating to the objects of the charity and is accounted for on an accruals basis. The allocation of expenditure between governance and management, administration and support costs is reviewed on an annual basis to ensure the allocation is appropriate. Indirect costs are generally treated as falling into the latter category with the exception of a proportion of salary and related costs which have been classified as governance costs. Governance costs In addition to auditor’s remuneration, governance costs comprise the proportion of staff costs associated with the time spent on the preparation of the statutory accounts and other governance issues together with honoraria remuneration provided to members of the Institute’s Scientific Advisory Committee for their duties in selecting the Prize Fellows.

Supplementary pensions and staff pensions An estimate of the full provision is made in the Financial Statements for the costs of future supplementary payments. The provision and charge to income are reviewed annually by the Trustees in the knowledge that the number of persons receiving the supplementary pensions will not increase. The pension costs are assessed in accordance with actuarial advice and these costs are accounted for in accordance with FRSI7. Existing employees participate in a defined contribution scheme, the costs of which are expensed as incurred. These disclosures are made in accordance with FRSI7. Investments Investments are shown at market value in the balance sheet. Changes in the market value are included in the Statement of Financial Activities as realised and unrealised investment gains or losses in the year in which they arise. Investments denominated in foreign currencies are valued at year-end rates of exchange. Cash flow statement The Charity has taken advantage of the exemption provided by Financial Reporting Standard No I for small charities from the obligation to prepare a cash flow statement. Taxation The organisation is a registered charity and has obtained exemptions from taxation under Chapter 3 of Part 11 of the Corporation Tax Act 2010. This exemption will remain as long as income is compatible with that statutory provision and expenditure is applied to charitable purposes only.

20 2 INVESTMENT INCOME

2011 2010 £'000 £'000 Income from fixed asset investments 330 378 Bank interest receivable 1 1 331 379

|3 OTHER INCOMING RESOURCES I

2011 2010 £'000 £'000 Royalty income 9 9

14 COSTS OF GENERATING FUNDS

)...... 2011 2010 £’000 £'000 Partners Capital LLP 55 53 Schröders & Company Ltd 65 67 Total investment management fees 120 120

Investment management fees referred to here are those accrued fees relating to the management of the Institute's investment portfolios in 2011.

5 GOVERNING BODY AND STAFF COSTS

Emoluments of members of the Governing Body No member of the Governing Body received any emoluments in respect of services to the Institute during the year (2010: nil). Travel expenses of £1,470 were paid relating to the claims of six members in connection with their attendance at meetings (2010: £977, eight members).

Members of the Governing Body who are also members of the Scientific Advisory Committee receive remuneration in relation to their services to the committee. Remuneration of £1,875 (2010: £1,875) was paid to one of the members.

Employee information The average number of persons employed by the Institute during the year was three (2010: three), two of whom are part-time. All were employed in an administrative and support capacity. No employees earn over £60k p.a. (2010: nil).

2011 2010 £’000 €000 Gross salaries and pension contributions 74 73 Employer’s national insurance and state pension contributions 7 7 81 80

The salary costs are allocated under governance where related to statutory accounts preparation, the balance being reported within support costs.

21 |6 PRIZES & SUMMER STUDENTSHIPS 1

2011 2010 £’000 £'000 Prize awards 600 600 Summer Studentship payments 42 - 642 600

In addition to the 20 studentships of £2k a further summer studentship award of £2k was substituted for the support of a schools-related project.

|7 SUPPORT COSTS 1

2011 2010 £’000 £'000 Support costs (see Note 9) 95 95 Pension costs (see Note 14) 17 18 1 12 ...... i l l '

8 GOVERNANCE COSTS

2011 2010 £'000 £'000 Auditor's remuneration 12 i 1 Staff costs 10 10 Honoraria and events 25 22 47 43

No non-audit services were provided by the auditors during the year (2010: none).

9 SUPPORT COSTS: BREAKDOWN

2011 2010 £'000 £'000 Salary-related costs 71 70 Office expenses 10 ...... !.!. Travel expenses 4 3! Professional fees 10 11 95 95

22 0 INVESTMENTS

Listed investments are valued at middle market quotations ruling at the year-end 2011 2010 £'000 £’000 Market value at beginning of year 33,344 31,019 Purchases during the year at cost 4,109 1 1,748 Proceeds of sales during the year (4,978) (13,225) Reinvested income for the year 195 218 Movement in un-invested cash 318 705 Cash withdrawn (580) (800) Net change in market value (606) 3,679 Market value at year-end 31,802 33,344

The portfolio’s asset allocation was as follows: 2011 2010 £’000 £'000 UK investments Equities 6,523 7,715 Fixed interest 1,264 1,240 O ther (including private equity, property, commodities and alternatives) 4,008 4,186 Cash 160 12 Total U K investments 11,955 13,153

Non-UK investments Equities 12,301 12,680 Fixed interest 1,484 1,181 Other (including private equity, property, commodities and alternatives) 5,715 5,71 1 Cash 347 619 Total non-UK investments 19,847 20,191

Total investments 31,802 33,344

A t 3 1 December 2011 no single shareholding exceeded 5% of the total value of investments (2 0 10: none).

DI D EB TO R S 2011 2010 O ...... £’000 £'000 Accrued income 17 36

112 CA SH 1

2011 2010 £’000 £'000 Cash at bank 231 241

23 113 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 1

2011 2010 £'000 £’000 Taxation and social security 3 3 Accruals and deferred expenditure 230 22 Total creditors falling due within one year 233 25

14 PROVISION FOR LIABILITIES AND CHARGES

This represents a provision for future supplementary pension payments, in respect of ex-employees, based on their salary and length of service. The pensions are unfunded, with payments made out of the Institute’s funds as they fall due.

Movements in the pension provision during the year were as below:

2011 2010 £'000 £'000 Liability at beginning of period 331 ...... 341 Plus interest cost 17 18 Plus actuarial gains and losses (117) 16 Benefits paid (29) (44) Liability at end of period 202 331

The tables below state the FRSI7 actuarial assumptions used to estimate the pension provision.

Principal actuarial assumptions Valuation at 31 December 2011 „„ , ____ 2011 2010 Rate of increase to pensions in payment 2.7% 3.1% Rate used to discount scheme liabilities 4.6% 5.3%

The post-retirement mortality assumption uses the PCA00 base tables (year of birth) with improvements equal to medium cohort with a 1% minimum.

15 RELATED PARTY TRANSACTIONS There were no related party transactions in the year (2010 : none). o

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The Lister Institute of Preventive Medicine PO Box 1083, Bushey, Hertfordshire WD23 9AG

ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 3 1 December 2012

o

The Lister Institute of Preventive Medicine is a company limited by guarantee (England 34479) and a registered charity (206271) The Institute was founded in 1891 and for the next 80 years played a vital role in the development of the laboratory aspects of preventive medicine as an independent research institute in the UK.

Financial pressures in the 1970s led to the closure of the research and production facilities and the conversion of the Lister Institute into a highly successful trust awarding prestigious Research Fellowships from 1982 which in 2003, again because of financial pressures, were revised to become Prize Fellowships.

The cover portrait of Lord Lister reproduced by courtesy of the Royal Veterinary College THE LISTER INSTITUTE OF PREVENTIVE MEDICINE

LEGAL AND ADMINISTRATIVE INFORMATION for the /ear ended 3 1 December 2 0 12

THE GOVERNING BODY

Professor Sir Alex Markham, DSc, FRCP, FRCPath, FMedSci, Chairman Mr Michael French, BSc(Eng), FCA, Hon Treasurer Professor Janet Darbyshire, CBE, FRCP, FFPH, FMedSci Professor Dame Kay Davies, CBE, DBE, MA, DPhil, FMedSci, FRCP (Hon), FRCPath, FRS Hon Rory M B Guinness Professor Douglas Higgs, MB, BS, MRCPath, DSc, FRCP, FRCPath, FRS Mr Andrew Hutton, MA, CFA Professor Robin F Irvine, FIBiol, FMedSci, FRS (Retired 7 September 2012) Professor Sir Alec J Jeffreys, DPhil, FMedSci, FRS Professor Patrick Maxwell, FRCP, FMedSci (Appointed 7 September 2012) Professor Tony Minson, PhD, FMedSci Mr Matthew Pintus, BA (Appointed 7 September 2012) Mr John G Rhodes, MA (Retired 7 September 2012) Professor Geoffrey L Smith, PhD, FMedSci, FRS Professor Cheryll A Tickle, CBE, FRSE, FMedSci, FRS

SENIOR MANAGEMENT Secretary and Director: Dr Trevor A Hince, PhD

Business Address Registered Office PO Box 1083 Macfarlanes Bushey 10 Norwich Street Hertfordshire WD23 9AG London EC4A IBD

Solicitors Investment Advisors Macfarlanes Schroders & Co Limited Partners Capital LLP 20 Cursitor Street 100 Wood Street 5 Young Street London EC4A ILT London EC2V 7ER London W8 5EH

Bankers Auditors for 2012 Report Messrs Coutts & Co and Financial Statements St Martins Office Kingston Smith LLP 440 Strand Devonshire House London WC2R 0QS 60 Goswell Road London EC IM 7AD Auditors PricewaterhouseCoopers LLP I Embankment Place London WC2N 6RH Website : www.lister-institute.org.uk (Resigned 8 January 2012) Telephone: 01923 801886 THE LISTER INSTITUTE OF PREVENTIVE MEDICINE

L e g al an d administrative In fo r m atio n for the year ended 3 I December 2012

THE SCIENTIFIC ADVISORY COMMITTEE

Professor Patrick Maxwell, FRCP, FMedSci (Appointed as Chairman 7 September 2012) Professor Robin F Irvine, FIBiol, FMedSci, FRS, Chairman (Retired 7 September 2012) Professor Wendy Bickmore, BA, PhD, FMedSci, FRSE Professor Tim Bliss, FMedSci, FRS (Retired 7 September 2012) Professor Jon Cohen, FRCP, FMedSci (Appointed 7 September 2012) Professor Mary Collins, PhD, FMedSci Professor William Deakin, PhD, FRCPsych, FMedSci (Appointed 1 September 2012) Professor Annette C Dolphin, PhD (Appointed 7 September 2012) Professor David Holden, FMedSci, FRS Dr David Ish-Horowicz, PhD, FRS (Retired 7 September 2 0 12) Professor John Iredale, FRCP, FMedSci, FRSE (Appointed 1 September 2012) Professor J Simon Kroll, FRCP, FMedSci, FRCPCH (Retired 7 September 2012) Professor Irene Leigh, OBE, MD, FRCP, FMedSci (Retired 7 September 2 0 12) Professor Kate Storey, PhD, FRSE (Appointed 7 September 2012) Professor Jonathan Waltho, BSc, PhD

Secretary: Dr Trevor A Hince, PhD

THE FINANCE AND INVESTMENT COMMITTEE

Mr Michael French, BSc (Eng), FCA, Chairman Hon Rory M B Guinness Mr Andrew Hutton, MA, CFA Professor Sir Alex Markham, DSc, FRCP, FRCPath, FMedSci Professor Tony Minson, PhD, FMedSci Mr Matthew Pintus, BA (Appointed 7 September 2012) Mr John G Rhodes, MA (Retired 7 September 2 0 12)

Secretary: Dr Trevor A Hince, PhD THE LISTER INSTITUTE OF PREVENTIVE MEDICINE

CHAIRMAN’S ANNUAL REPORT for the year ended 3 I December 2 0 12

IN MANY RESPECTS 2012 has been a year of quiet consolidation for the Institute. The value of our investment portfolio rose, we were able to award three Research Prize Fellowships from a field of above sixty applicants and continue the Summer Studentship scheme. The Governing Body has met twice during the year with the new members already contributing substantially to our discussions, whilst the two sub-committees have overseen their areas of responsibility with the usual efficiency. As I indicated in last year’s report we did, this year, conduct a formal review of the Institute’s investment management with a very satisfactory outcome - see Financial Matters. The Institute continues to discuss ways in which we can ensure that the most deserving individuals receive the Prize Fellowships but have yet to conclude whether any specific changes to the scheme are necessary. To those who have met or heard the new Prize Fellows speak about their research, the quality of the successful individuals and their research is not in doubt!

Governing Body and Administrative Matters

Governing Body and Administration Turnover amongst the trustees of a charity is desirable since it brings new individuals with a fresh perspective to the oversight of the organisation. Yet bidding ‘farewell’ to those who have served the charity for many years is hard. This year, two long-standing and key members of the Governing Body left as they completed their terms of office. Mr John Rhodes stood down and the Institute will miss the clear and logical inputs from his legal mind - he was particularly helpful with the re-writing of the Institute’s new Articles, and as member of the Finance and Investment Committee he kept our fund managers on their toes! In his place it is a great pleasure to welcome Matthew Pintus, also from the law firm Macfarlanes, who brings a great depth of experience from his work with other charities. The second departure was that of Professor Robin Irvine who has been a member of the Scientific Advisory Committee (SAC) since 2004 and its chair since 2006. Robin’s contribution to the Institute has been enormous and his chairing of the final interviews for the Lister Prize Fellowships masterful. With his charm, straight-forwardness and easy manner he has been able both to put the candidates at their ease yet subject them to an intensive scientific grilling. Then, often having started with different views of the interviewees, he has invariably brought the members of the Scientific Advisory Committee to a unanimous choice of the best candidates, who themselves have usually presented on very different scientific areas - a remarkable achievement! W e also learnt more about Robin’s research and other interests when he gave the ‘Special Lister Lecture’ at the 2012 Fellows’ meeting (see page 10). Taking over from THE LISTER INSTITUTE OF PREVENTIVE MEDICINE

Robin, as chairman of the SAC, will be Professor Patrick Maxwell, who has already served as a member for two years. Patrick brings a wealth of experience from his many roles in acade­ mic medicine and with the Academy of Medical Sciences, and I know he will ensure that we appoint only the best Prize Fellows. I am also delighted to congratulate Patrick on his appointment as Regius Professor of Physic at the University of Cambridge, a post in which he succeeds Professor Sir Patrick Sissons, a former member of the Institute’s Governing Body. I should like to thank all members of the Governing Body for the time which they spend on the Institute’s business and the thought which they give to its affairs. The Institute runs very effectively with only two Governing Body meetings a year; one in spring and the autumn meeting, combined with the AGM and Fellows’ meeting, in Cambridge. This gives Trustees a chance to meet old and new Fellows, to learn at first-hand about any concerns and to hear about some really excellent scientific research. The work of the Governing Body is made easier by the knowledge that two key areas, science and finance/investment, are so ably looked after by the relevant sub-Committees and I thank their members for all their efforts and dedication. Finally, a major contributor to the smooth running of the Institute is the efficiency of Trevor Hince and his small administrative team of Naomi King and Jacky Wilson and I thank them on behalf of all Trustees.

Institute Membership Three Prize Fellows, Dr Nina Balthasar, Professor Christopher Thompson and Professor Kenneth Smith, who completed their fellowships in 2012, have been welcomed into membership.

Financial Matters

It is reassuring that having seen a fall in the value of the Institute’s investments last year, 2012 has recorded gains of £2.95m to bring the portfolio’s value up to £33.96m. Against this financial background the Institute was able to award three Prize Fellowships, and main­ tain the Summer Studentship scheme, a total expenditure of £640,000, whilst the cost of ‘running’ the Institute reduced slightly to £142,000. However, whilst the performance of stock markets globally improved from mid-year, the world economic picture is still very volatile with many countries, including the UK, showing no real growth; so prudence remains the ‘watchword’. The Institute not only has a policy of meeting regularly with its investment advisors but periodically of conducting a major review of their performance and future strategies along­ side ‘bids’ from other firms and we did this in October. I and the other Trustees are particularly grateful to Michael French, the Institute’s Hon. Treasurer, and Andrew Hutton

4 THE LISTER INSTITUTE OF PREVENTIVE MEDICINE

for overseeing this process. As a first step Andrew re-wrote the Institute’s Investment Policy Statement and then he, together with Michael French and Trevor Hince, visited several investment firms, selecting two who should be invited to present to the full Institute Finance and Investment Committee alongside our existing advisors: Partners Capital and Schroders. Following a long and demanding day of questioning and discussion the decision was taken to continue with Partners Capital and Schroders. This was a very necessary and rigorous process to ensure that the Institute’s funds are managed in the most appropriate way to meet our future needs and I should like to thank Michael and all members of the Finance and Investment Committee for their work throughout the year and particularly in this review; our thanks must also go to Matthew Pintus and Macfarlanes for hosting the review. Further details on the Institute’s finances may be found on pages 15 and 16 and are summarised in the Statement of Financial Activities on page 18.

Scientific Activities

Scientific Advisory Committee The work of the Scientific Advisory Committee in selecting the Prize Fellows is at the heart of the Institute’s activities. Each year the SAC is confronted with the daunting task of select­ ing just three Prize Fellows from an initially large field of applicants, this year 64. The process proceeds by an initial screening and scoring by SAC members to arrive at a long-list. These candidates are then further evaluated by the SAC but with the help of reviews from inter­ national researchers, to arrive at a short-list of eight candidates who are interviewed. Towards the end of the selection process the standards are very high and, coupled with the very diverse fields of research represented, the task of selecting the ‘winners’ is extremely difficult - it is a tribute to SAC members and their chairman that each year they identify some truly exceptional young researchers - and this year was no different. As with all Institute committees there is planned turnover in the membership of the SAC and this year a number of members stood down. They were: Professor Tim Bliss, Dr David Ish-Horowicz, Professor Simon Kroll and Professor Irene Leigh, as well as Professor Patrick Maxwell moving to take over the chairmanship from Professor Robin Irvine. The Institute owes them, and those who remain on the committee, a debt of gratitude for their magnificent efforts in selecting the Prize Fellows and maintaining such high standards. When members step down and after each application round we review the SAC membership to ensure that we have the right mix of expertise and seek to recruit new members appro­ priately. I am delighted that the following distinguished researchers have agreed to join the THE LISTER INSTITUTE OF PREVENTIVE MEDICINE

SAC: Professor Jon Cohen, Professor William Deakin, Professor Annette Dolphin, Professor John Iredale and Professor Kate Storey. I hope that they and all members of the SAC under their new chairman will enjoy the challenge of selecting the next Prize Fellows.

2012 Lister Research Prize Fellowship Winners The recipients of the 2012 Lister Research Prize Fellowships, who each received the award of £200,000, were:

Prize Winner Title of Research

Dr David Komander Bacterial interference with the ubiquitin system MRC Laboratory of Molecular Biology, Cambridge

Dr David Lyons Elucidating mechanisms of myelinated axon formation, function University of Edinburgh and repair using zebrafish

Dr Akhilesh Reddy Peroxiredoxins and redox oscillations in the circadian (24 hour) University of Cambridge clockw ork

Two of the three 2012 Lister Research Prize winners: Dr David Lyons and Dr David Komander - Dr Akhilesh Reddy was unable to be present on the occasion of the Fellowship Weekend

6 THE LISTER INSTITUTE OF PREVENTIVE MEDICINE

Current and Former Lister Prize Fellows

The following were awarded Lister Research Prize Fellowships since the inception of the Prize Fellowship scheme. This is an outstanding collection of scientists and represents a major contribution to the well-being of UK biomedical research:

Fellow Title of Research Awarded

Dr Nina Balthasar Identifying the novel CREB coactivator TORC2's role in 2007 University of Bristol the hypothalamic pathways controlling energy homeostasis

Dr Oliver Billker In search of the xanthurenic acid receptor of malaria 2004 The Wellcome Trust parasites-a potential target for transmission control Sanger Institute

Dr Nia Bryant Using yeast as a model system to understand the 2004 University of Glasgow insulin-dependent trafficking of GLUT4 in adipocytes

Dr Simon Bullock Mechanisms and neuronal functions of 2008 MRC Laboratory of Molecular motor-driven transport Biology, Cambridge

Dr Juan Burrone The role of neuronal activity during synapse formation 2009 Kings College London

Dr Vincenzo Costanzo The role of ATM and A T R in preventing genomic instability 2006 Cancer Research UK Clare Hall Laboratories

Dr Victoria Cowling Regulation and function of the 7-methylguanosine cap 201 1 University of Dundee

Professor Daniel Davis Nanotubes and synapses in immune cell communication 2005 Imperial College London

Dr Michael Eddleston Prevention of deaths from late respiratory failure in 201 1 University of Edinburgh organo-phosphorus pesticide poisoning

Dr Rebecca Fitzgerald Translational research programme for prevention of 2008 MRC Cancer Cell Unit oesophageal adenocarcinoma Cambridge

Dr Holger Gerhardt Endothelial guidance in vascular patterning 2008 Cancer Research UK London Research Institute

Dr Fiona Gribble Secretion of incretin hormones from the mouse 2006 Cambridge Institute for intestine Medical Research University of Cambridge Continued overleaf THE LISTER INSTITUTE OF PREVENTIVE MEDICINE

F e llo w Title of Research A w a rd e d

Dr Andrew Jackson Cellular pathways determining human brain size 2009 University of Edinburgh

Dr Josef K ittler Miro family proteins as regulators of synaptic bio­ 2010 University College London energetics and a locus for mitochondrial dysfunction in neurological disease

Dr Robert Klose Biochemical isolation and functional dissection of the 2011 University of Oxford CpG island proteome

Professor Paul Lehner The role of HSP70 in M HC Class 1 mediated antigen 2004 Cambridge Institute for presentation in human dendritic cells Medical Research University of Cambridge

Dr Juan Martin-Serrano Functional parallels between HIV-I budding and the 2008 King’s College London last step of cell division

Dr Robin May The molecular basis of latency and dissemination 2010 University of Birmingham during cryptococcosis

Professor Kenneth Smith Control of infection and autoimmunity by an 2007 Cambridge Institute for inhibitory Fc receptor FcyRI lb Medical Research University of Cambridge

Dr Grant Stewart Investigating the role of the RIDDLE syndrome 2009 University of Birmingham gene in promoting repair of DNA damage

Professor Tomoyuki Tanaka Mechanisms of kinetochore-microtubule 2005 University of Dundee interaction

Dr Sarah Teichmann Decoding genetic switches in T helper cell 2010 MRC Laboratory of differentiation Molecular Biology Cambridge

Professor Chris Thompson Identifying and characterising genes that control 2005 University of Manchester cell fate choice and social behaviour

Professor Daan van Aalten Structural mechanisms and specificity of O -GIcN Ac 2006 University of Dundee signalling in the eukaryotic cell

Dr Fiona Wardle Transcriptional control of mesodermal cell 2007 Kings College London differentiation in vertebrates

8 THE LISTER INSTITUTE OF PREVENTIVE MEDICINE

Fellowship Activities

Many Fellows and former Fellows attending the 2012 Fellows’ meeting said that they felt a particular ‘buzz’ about the occasion and certainly there was a very energised feeling at the meeting. Proceedings were opened by talks from two of the 2012 Prize Fellows, Dr David Komander and Dr David Lyons, both giving very accomplished presentations on, respectively, O how bacteria interfere with the ubiquitin system, and myelinated axon formation in the zebrafish. The diversity of the research undertaken by Lister Fellows and former Fellows was illustrated by the excellent talks given in the subsequent scientific sessions. The speakers and their titles were:

• Dr Fiona Gribble - Targeting the gut for the treatment of diabetes • Dr Jessica Downs - Protective packaging for DNA: the role of chromatin in maintaining genome stability • Dr Cathy Tournier - Stress-activated signalling pathways in neurodegeneration • Dr Ian Adams - Maintaining genetic and chromosomal stability through the generations • Professor Daan van Aalten - Molecular mechanisms of O-GIcNAc signalling

Presentations at the Fellows’ Meeting engaged the audience with their insights, range and quality

9 THE LISTER INSTITUTE OF PREVENTIVE MEDICINE

The Special Lister Lecture was given by Professor Robin Irvine, the outgoing chairman of the SAC, and with the intriguing title of “Adventures with Inositides; or, when to leave a Figure out and put a Table in instead” gave a wonderful tour de force of the development of the area of inositol phosphate biochemistry, illustrating the unique chemistry of these mole­ cules. However, that was not all and parts of the talk were devoted to Robin’s ornitho­ logical interests with wonderful pictures of Storm Petrels taken on Shetland and his ability to mimic their calls! The Reception and Dinner were the usual enjoyable occasions and following the presenta­ tion of ‘scrolls’, the new Prize Fellows were Professor Robin Irvine gave the Special Lister Lecture welcomed into the Lister family in typical style! at the Fellows’ Meeting in Cambridge

Conclusion

The Institute is delighted to hear of the successes of its Fellows and former Fellows as they receive recognition and promotions. It is, therefore a great pleasure to offer congratulations to Dr Sarah Teichmann who was invited to give the Royal Society’s Francis Crick Lecture this year. It is a real tribute to her outstanding research on how computational analysis of genomic information reveals fundamental principles of gene and protein interactions. W e also wish her well as she moves from the MRC’s Laboratory of Molecular Biology, Cambridge to the EMBL-EBI & Wellcome Trust Sanger Institute. Dr Teichmann is one of the seven female researchers who have over the years been awarded one of the 25 Prize Fellowships given to date. It was therefore of some concern to the Institute that no female researchers were interviewed this year. This might just be a statistical ‘blip’ but we wish to ensure that we have no inadvertent biases and we are reviewing our application and selection procedures. At post-doctoral level there are a large number of exceptional young female researchers. Like many biomedical-funding organisations, we wish to ensure that this talent is not lost and that female researchers are able to go on to lead their own research groups. The Institute’s Prize Fellowships have always been aimed at top

10 THE LISTER INSTITUTE OF PREVENTIVE MEDICINE

quality researchers but with the intent that the award should really make a difference to their careers. Thus the ‘impact of the prize’ will continue to be a very important criterion in the selection of the ‘winners’. I am delighted that the Summer Studentship scheme has been so warmly welcomed by the Fellows and former Fellows and that some really bright students have had the opportunity of working in a high quality research laboratory. The Institute hopes that this might stimulate them to go on to PhD studies and research careers. During the last few months, work has gone on to re-vamp the Institute’s website generally, making it more up-to-date and easy to use; it is often an individual’s first exposure to the Institute and it needs to give the right impression. It is hoped to launch this in the late spring of 2013. As I complete my second year as the Institute’s Chairman, I am progressively coming to understand even more clearly why it is held in such high regard and affection by so many - it really is a truly remarkable organisation!

ALEX MARKHAM Chairman

Dr Jessica Downs and Professor Dame Jean Thomas at the Fellows’ meeting reception before dinner THE LISTER INSTITUTE OF PREVENTIVE MEDICINE

REPORT OF THE GOVERNING BODY for the year ended 3 1 December 2012

The Governing Body presents its Annual Report appointees. One additional member is Lord Iveagh's under the Charities Act 2011 together with the representative, another is Professor Sir Alec Jeffreys audited Financial Statements of the Charity for the who was appointed to ‘life-time’ membership, and year ended 31 December 2012. The Financial the final member, Professor Cheryl Tickle, is the Statements have been prepared in accordance with representative of the Royal Society. Trustees, other the accounting policies set out in Note I (page 20) than the two nominated representatives, Professor to the Financial Statements and comply with the Sir Alec Jeffreys and, exceptionally, those appointed Companies Act 2006, the requirements of the by the Governing Body, generally serve for a maximum Statement of Recommended Practice 2005 of six years and a system of planned rotation is in “Accounting and Reporting by Charities”, and the place. When considering appointment or nomination documents governing the constitution of the Charity. for election as Trustees, the Governing Body has regard to the specialist skills needed. REFERENCE AND ADMINISTRATIVE DETAILS Induction and training of Trustees Reference and administrative information is set out New Trustees undergo induction sessions with the on pages I and 2 of this report. Chairman, Treasurer and Director during which they will gain an understanding of the Institute’s structure, Members of the Governing Body, activities, financial position and future strategies. Directors and Trustees Prior to appointment they will attend, as an The members of the Governing Body are, for the ‘observer’, one meeting of the Governing Body. purposes of company law, directors of the Institute New Trustees will also be made aware of their legal and, for the purposes of charity law, trustees of the obligations with regard to the charity and company Institute and throughout this report are collectively law. In addition, new Trustees will be advised of referred to as the Trustees. appropriate literature and training courses. Details of the Trustees serving throughout the year, unless otherwise stated, are set out on page I . Organisation The Institute is governed by its Governing Body STRUCTURE, GOVERNANCE AND which is responsible for setting policies, authorising MANAGEMENT actions on all significant operational issues and ensur­ Constitution ing legality and good practice. The Governing Body The Institute is registered with the Charity meets formally twice a year. Commission for England and Wales (registration Specific authorities are delegated to two sub­ number 206271). It is incorporated and registered in committees in particular areas. The Scientific England and Wales under the Companies Act 2006 Advisory Committee (see page 2 for membership) as a company limited by guarantee and not having a has responsibility for the selection of the Lister Prize share capital (company number 34479). It is governed Fellows and the monitoring of their scientific activities, by its Memorandum and Articles of Association and as well as providing scientific and medical advice to has charitable status. the Governing Body as required. The Finance and Investment Committee (see page 2 for membership) Appointment and re-appointment of Trustees has responsibility for interaction with the Institute’s The Trustees are the fifteen members of the investment advisors, ensuring implementation of the Governing Body of whom six are appointed by the Institute’s investment policy and monitoring perfor­ members at the annual general meeting. A maximum mance. It prepares and submits to the Governing of six further Trustees are appointed by the Body the annual budget, and subsequently monitors Governing Body and there are currently four such performance against it. It also advises the Governing THE LISTER INSTITUTE OF PREVENTIVE MEDICINE

REPORT OF THE GOVERNING BODY for the year ended 3 1 December 2012

Body, as required, on other financial and risk matters. achieve this objective by establishing a research The routine management of the Institute’s activities institute specialising in the area of ‘infections’ and is undertaken by its Director, aided by the Adminis­ their prevention by immunisation and other means. trator and the Accountant. All staff work from home. It complemented the research activities by the production and supply of materials such as vaccines Risk Management and toxins. The Trustees assess the risks facing the Institute and The Institute continued in this mode until the review the effectiveness of the controls to monitor late 1970s when Increasing financial and regulatory and mitigate against them. A Risk Management pressures caused the cessation of these activities. Register is maintained and formally reviewed annually Proceeds from the resultant sale of land and buildings by the Governing Body. created the funds from which present-day activities The key controls used by the Institute include: are financed; at 31 December 2012 these funds stood • Formal agendas for all Governing Body meetings at £33.965m. From the 1980s the Institute has pursued • Strategic planning, budgeting and management its objective by the provision of grant funding to facili­ accounting tate the research and careers of high quality individuals • Formal written policies working in areas of biomedicine relevant to preventive • Clear authorisation and approval levels medicine. It has done this because it believes that the acquisition and advancement of knowledge is crucial • Regular review of Fellows’ scientific reports to the understanding of health and disease and that The specific risk of bribery associated with any of research to achieve this is driven forward by high the Institute’s activities has been reviewed and clear quality individuals and their supporting staff. policies and procedures have been developed and communicated to all Trustees, staff and Members. Principal activities The principal risk facing the Institute lies in its In pursuance of this objective, during 2012 the ability to maintain and protect the value in real terms Institute awarded three new Prize Fellowships. of its investments and to generate from them on a In addition, the Institute has continued its Summer long term basis a consistently high overall return. Studentship scheme which enables up to twenty This risk is mitigated by: undergraduates per year to work with Lister Fellows or former Fellows In order to gain experience of • the Institute’s appointment of experienced fund managers with a proven track record; biomedical research with the hope that they might consider it as a career. • internal controls that allow close and regular monitoring of their performance against bench­ Achievement and Performance marks; The Scientific Advisory Committee has monitored • the Institute’s requirement of its fund managers the performance of the current eighteen Lister Prize to re-tender periodically and competitively for Fellows, through detailed review of the annual appointment - such a review took place in reports on their research which include details of all October; and publications and presentations. The Scientific • regular meetings that formally review investment Advisory Committee has reported to Trustees that performance and policy and include one-to-one presentations by the fund managers. it is of the view that all Fellows are undertaking high quality research and producing new knowledge that Objectives and activities will contribute significantly to our understanding of The statutory Object of the Institute is to further disease, its causes, treatment and prevention. The understanding and progress in preventive medicine by reports of the research undertaken by the Summer promoting excellence in biomedical research in the UK. Students have also been reviewed and found to be When founded in 1891, the Institute sought to very satisfactory. THE LISTER INSTITUTE OF PREVENTIVE MEDICINE

REPORT OF THE GOVERNING BODY for the year ended 3 I December 2012

Three Lister Prize Fellowships were awarded in Impact 2012 to Drs Komander, Lyons and Reddy from a The impact of the activities of a medical research field of 64 Initial applicants, following extensive charity can be measured at many levels ranging from scientific review of their applications and final inter­ the growth of knowledge to direct patient/public view by the Scientific Advisory Committee. (More benefit. Often the transition from the former to the details of the Prize Fellows and their research are latter may take many years and the involvement of provided on page 6). Each Prize Fellowship provides several organisations. The Institute requires that the £200,000 which may be spent over five years on the results of the research it supports are published and recipient’s research, although the funds are provided disseminated; that, where appropriate, significant to the host institution at the commencement of the intellectual property is protected via patents; and award. that its commercial development is encouraged. Twenty Summer Studentships were awarded in Several biotechnology companies have been formed 2012, each is a £2,000 student bursary and is paid to around the findings of Institute-sponsored research the host institution at the commencement of the and there are several interactions with large pharma­ award for the support of the student for up to a ceutical companies. A prime example of the impact ten-week period. of research is DN A fingerprinting, which was discov­ The Institute maintained its commitment to foster­ ered by Sir Alec Jeffries when a Lister Fellow and has ing scientific interchange and collaboration within the become an indelible part of society, helping to prove Fellowship by holding its 28th Annual Research innocence or guilt in criminal cases, resolving immi­ Fellowship meeting at Christ’s College, Cambridge. gration arguments and clarifying paternity.

Public Benefit Investment policy and performance In so far as the statutory objectives, aims and activities The Institute's investment objective is to develop and of The Lister Institute of Preventive Medicine are to maintain its financial resources through the selection of further understanding in preventive medicine by pro­ investments, consistent with an acceptable level of risk. moting biomedical research as set out on page 13 The Institute’s investment portfolio is split between and 14 of this Report, the Trustees are satisfied that Schröders and Co Limited (Schröders Charities) and they fully comply with the duty in section 17 of the Partners Capital LLP who both operate under Charities Act 2011, namely to have due regard to mandates agreed in advance with the Finance and the public benefit guidance published by the Charity Investment Committee. These mandates set out an Commission. overall target asset allocation with allowable ranges The public benefit of the Institute’s grant-making is for each category of asset. In line with Institute policy, clearly identifiable in the ‘Achievement and Schröders and Partners Capital were asked to re­ Performance’ paragraphs above and in the list of tender in October and were reviewed competitively Research Prize Fellows together with their areas of alongside two other firms; both were re-appointed. research on pages 7 and 8 of the Chairman's report. Both investment advisors invest on a total returns All Lister Fellows are actively encouraged, where basis through a variety of pooled funds and in accord­ appropriate, to develop their research findings for ance with the Institute’s ‘Investment Policy Statement’ potential public benefit and the Scientific Advisory which states the overall investment objective and sets Committee has regard to this when reviewing their the investment return objectives, the risk parameters, research reports. The Lister Institute therefore the performance measures and review procedures benefits the public or a sector of it without imposing for the portfolio. The investment advisors are any restrictions. Applications from individuals are informed at the beginning of the financial year of the only accepted when demonstrably consistent with Institute’s likely cash requirements, both in terms of the charitable objectives of the Institute. the amount and the timing of any draw-down, and are THE LISTER INSTITUTE OF PREVENTIVE MEDICINE

REPORT OF THE GOVERNING BODY for the year ended 31 December 2012 asked to keep in an income or cash account sufficient will be sensitive to the performance of our invest­ funds to meet them. The Institute has in place an ments and will be reviewed annually before fresh ethical investment policy which does not permit direct commitments are made. In the year, despite the rising investment in tobacco or tobacco-related companies. value of the investment portfolio and returns, but The Institute’s overall financial return objective is conscious of the continuing economic uncertainties, to preserve and if possible enhance the purchasing the Trustees felt it prudent to continue the award of power of its portfolio assets, net of costs and three Prizes and to maintain their value at £200,000 approved withdrawals, over rolling three-year periods. each. The Summer Studentship scheme at a total This goal is synonymous with the pursuit of a time- cost of £40,000 can be reviewed each year with weighted net return on portfolio assets that equals regard to both number and value. and if possible exceeds cost inflation as measured by the UK Consumer Price Index plus the Institute’s Reserves policy long-term spending rate of 3-4% measured over The policy of the Trustees is to maintain adequate corresponding three-year periods. financial resources to provide income to meet The performance of the investment portfolio is current and future commitments as they fall due and reviewed by the Finance and Investment Committee, ensure that adequate funds remain available to enable which had two meetings in the year with the invest­ them to make awards in perpetuity. ment advisors to review performance, liquidity The adequacy of the level of reserves and the con­ within the portfolio, and the due diligence undertaken tinuing appropriateness of the policy are reviewed on on potential new investment vehicles. In addition, the an annual basis by the Trustees. As the current level Institute receives detailed quarterly valuation and of investments approaches the high of 2007 they feel transaction reports. In a year that saw modest stock satisfied with the policy over the long-term and the market growth, the fund has risen from £ 3 1,802m to ability of the Institute to maintain appropriate levels £33.965m including withdrawals of £ 1,000m. of activity in the short-term. More details of the Institute’s activities are set out in the Chairman’s Report on pages 3 to II. Plans for the future The Institute’s future policy is to continue to pursue its current objectives. It will therefore maintain the FINANCIAL REVIEW Prize Fellowship scheme which it sees as a funding Allocation of resources priority. The Summer Studentship scheme will also The Institute, which does not seek to raise funds be maintained together with the opportunity for from the public, depends primarily on investment schools to receive talks from the Institute’s returns to meet its pension provision payments, Fellowship on science and biomedical subjects as part administrative expenditure and expenditure in further­ of an ‘outreach’ programme. ance of the Charity's objectives. The total return on investments for the year was realised/unrealised gains Statement of Trustee responsibilities of £2.949m and investment income of £334,000. The Trustees (who are also directors of The Lister The resources expended totalled £902,000 of Institute of Preventive Medicine for the purposes of which £757,000 was resources expended for the company law) are responsible for preparing the Institute's charitable activities. Trustees’ Annual Report and the financial statements As the Prize Fellowships are fixed sum awards, in accordance with applicable law and United Kingdom expenditure can be regulated by altering the number Accounting Standards (United Kingdom Generally and/or value of prizes awarded each year. This will Accepted Accounting Practice). be done in light of the income and realised/unrealised Company law requires the Trustees to prepare gains generated from our investment portfolio. This financial statements for each financial year which give

15 THE LISTER INSTITUTE OF PREVENTIVE MEDICINE

REPORT OF THE GOVERNING BODY for the year ended 3 1 December 2011

a true and fair view of the state of affairs of the taking reasonable steps for the prevention and charitable company and of the incoming resources detection of fraud and other irregularities. and application of resources, including the income In so far as the Trustees are aware: and expenditure, of the charitable company for that • there is no relevant audit information of which the period. In preparing these financial statements, the charitable company’s auditor is unaware; Trustees are required to: • the Trustees have taken all steps that they ought • select suitable accounting policies and then apply to have taken to make themselves aware of any them consistently; relevant audit information and to establish that the • observe the methods and principles in the auditor is aware of that information. Charities SORP; The Trustees are responsible for the maintenance • make judgements and estimates that are and integrity of the corporate and financial informa­ reasonable and prudent; tion included on the charitable company's website. • state whether applicable UK accounting standards Legislation in the United Kingdom governing the have been followed, subject to any material preparation and dissemination of financial statements departures disclosed and explained in the financial may differ from legislation in other jurisdictions. statements; and • prepare the financial statements on the going concern basis unless it is inappropriate to presume By Order of the Governing Body that the charitable company will continue in business. The Trustees are responsible for keeping proper ALEX F MARKHAM accounting records that disclose with reasonable Chairman accuracy at any time the financial position of the charitable company and enable them to ensure that MICHAEL FRENCH the financial statements comply with the Companies Treasurer Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for 24 June 2013

16 THE LISTER INSTITUTE OF PREVENTIVE MEDICINE

INDEPENDENT AUDITORS' REPORT to the Members of The Lister Institute of Preventive Medicine

We have audited the financial statements of The Lister inconsistencies with the audited financial statements. Institute of Preventive Medicine for the year ended If we become aware of any apparent material misstate­ 3 1 December 2012 which comprise the Statement of ments or inconsistencies we consider the implications Financial Activities, the Balance Sheet and the related for our report. notes. The financial reporting framework that has been Opinion on financial statements applied in their preparation is applicable law and United In our opinion the financial statements: Kingdom Accounting Standards (United Kingdom • give a true and fair view of the state of the charitable Generally Accepted Accounting Practice). company’s affairs as at 3 1 December 2012 and of its This report is made solely to the charitable company's incoming resources and application of resources, members, as a body, in accordance with Chapter 3 of including its income and expenditure, for the year Part 16 of the Companies Act 2006. Our audit work has then ended; been undertaken so that we might state to the company’s • have been properly prepared in accordance with members those matters we are required to state to United Kingdom Generally Accepted Accounting them in an auditor’s report and for no other purpose. Practice; and To the fullest extent permitted by law, we do not • have been prepared in accordance with the require­ accept or assume responsibility to any party other than ments of the Companies Act 2006. the charitable company and the charitable company's members as a body: for our audit work; for this report; Opinion on other matters prescribed by the or for the opinions we have formed. Companies Act 2006 In our opinion the information given in the Trustees’ Respective responsibilities of trustees and Annual Report for the financial year for which the auditor financial statements are prepared is consistent with the As explained more fully in the Trustees’ Responsibilities financial statements. Statement, the Trustees (who are also the directors of the charitable company for the purposes of company Matters on which we are required to report law) are responsible for the preparation of the financial by exception statements and for being satisfied that they give a true We have nothing to report in respect of the following and fair view. Our responsibility is to audit and express matters where the Companies Act 2006 requires us to an opinion on the financial statements in accordance report to you if, in our opinion: with applicable law and International Standards on • adequate accounting records have not been kept or Auditing (UK and Ireland). Those standards require us to returns adequate for our audit have not been received comply with the Auditing Practices Board’s (APB's) from branches not visited by us; or Ethical Standards for Auditors. • the financial statements are not in agreement with the accounting records and returns; or Scope of the audit of the financial • certain disclosures of Trustees’ remuneration statements specified by law are not made; or An audit involves obtaining evidence about the amounts • we have not received all the Information and and disclosures in the financial statements sufficient to explanations we require for our audit; or give reasonable assurance that the financial statements • the Trustees were not entitled to prepare the financial are free from material misstatement, whether caused by statements In accordance with the small companies fraud or error. This includes an assessment of: whether regime and take advantage of the small companies the accounting policies are appropriate to the charitable exemption in preparing the Trustees' Annual Report. company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of Nicholas Brooks (Senior Statutory Auditor) significant accounting estimates made by the Trustees; for and on behalf of Kingston Smith LLP and the overall presentation of the financial statements. Statutory Auditor In addition, we read all the financial and non-financial London ECIM 7AD information in the Annual Report to Identify material 24 June 2013

17 THE LISTER INSTITUTE OF PREVENTIVE MEDICINE

STATEMENT OF FINANCIAL ACTIVITIES for the year ended 3 1 December 2012

Notes 2012 2011 £'000...... £'000 Incoming resources Incoming resource from generated funds: Investment income 2 334 331 Other incoming rescources 3 ... 9 ...... 9 Total incoming resources 343 34Ö

Resources expended Costs of generating funds: Investment management costs 4 ( 120) ( 120) Charitable Activities: Prizes & Summer Studentships 6 (757) (773) Governance costs______8 (25)______(28) T o ta l re so u rce s exp en d ed ______(902)______(921)

Net expenditure (559)...... (581)

Gains/(losses on investment assets) 2,949 ( 1, 186) Pension actuarial (losses)/ gains 13 ...... (4)...... 117" N e t m o v e m e n t in funds 2,386______(1,650)

Total funds brought forward 3 1,615 33,265 Total funds carried forward 34,001 31,615

All items in the above Statement of Financial Activities relate to continuing operations for both years. The Institute has no other recognised gains and losses other than as stated above and hence no separate income and expenditure statement has been shown.

The notes set out on pages 20 to 24 form part of these financial statements.

18 THE LISTER INSTITUTE OF PREVENTIVE MEDICINE

BALANCE SHEET as at 31 December 2012 Company no. 34479

Notes 2012 201 1 £'000 £'000 Fixed assets Investments 9 33,965 31,802 Total fixed assets 33,965 31,802

Current assets Debtors 10 14 17 Cash at bank and in hand______M______24j______231 Total current assets 255 248

Current liabilities Creditors: amounts falling due within one year______HZ______(28)______(233) Net current assets 227 15

Total assets less current liabilities 34,192 31,817 Creditors: amounts failing due after more than one year Pension provision ______i_3______(¡91)______(202) N e t a sse ts 34,001 31,615

represented by Unrestricted funds______34,001______3 1,615 T o ta l c h a rity funds______34,001______31,615

The Trustees have taken advantage of the exemptions conferred by the Companies Act 2006, on the grounds that the Institute is entitled to the benefit of those exemptions as a small company.

These financial statements were approved by the Governing Body on 24 June 2013

ALEX F MARKHAM Members of the MICHAEL FRENCH Governing Body

The notes set out on pages 20 to 24 form part of these financial statements.

19 THE LISTER INSTITUTE OF PREVENTIVE MEDICINE

NOTES TO THE FINANCIAL STATEMENTS for the year ended 3 I December 2012

I PRINCIPAL ACCOUNTING POLICIES

Basis of preparation The Financial Statements have been prepared in accordance with the Statement of Recommended Practice, Accounting and Reporting by Charities (SORP 200S), applicable accounting standards and the Companies Act 2006. The Financial Statements are prepared in accordance with the historical cost convention modified by the revaluation of investments. The principal accounting policies adopted in the preparation of the Financial Statements are as follows: Incoming resources All incoming resources are accounted for on a receivable basis. Prizes and grants The cost of Research Prize Fellowships is charged in the year awarded. Resources Expended The costs of generating funds include those fees payable to the Institute’s investment fund managers for the management of the Institute's investment portfolio. These are accounted for on an accruals basis. Charitable expenditure comprises all expenditure directly relating to the objects of the charity and is accounted for on an accruals basis. The allocation of expenditure between governance and management, administration and support costs is reviewed on an annual basis to ensure the allocation is appropriate. Indirect costs are generally treated as falling into the latter category with the exception of a proportion of salary and related costs which have been classified as governance costs.

Governance costs In addition to auditor’s remuneration, governance costs comprise the proportion of staff costs associated with the time spent on the preparation of the statutory accounts and other governance issues together with honoraria remuneration provided to members of the Institute’s Scientific Advisory Committee for their duties in selecting the Prize Fellows. Supplementary pensions and staff pensions An estimate of the full provision is made in the Financial Statements for the costs of future supplementary payments. The provision and charge to income are reviewed annually by the Trustees in the knowledge that the number of persons receiving the supplementary pensions will not increase. The pension costs are assessed in accordance with actuarial advice and these costs are accounted for in accordance with FRSI7. Existing employees participate in a defined contribution scheme, the costs of which are expensed as incurred. These disclosures are made in accordance with FRSI7. Investments Investments are shown at market value in the balance sheet. Changes in the market value are included in the Statement of Financial Activities as realised and unrealised investment gains or losses in the year in which they arise. Investments denominated in foreign currencies are valued at year-end rates of exchange. Cash flow statement The Charity has taken advantage of the exemption provided by Financial Reporting Standard No I for small charities from the obligation to prepare a cash flow statement. Taxation The organisation is a registered charity and has obtained exemptions from taxation under Part II, Chapter 3 of the Corporation Tax Act 2010. This exemption will remain as long as income is compatible with that section and expenditure is applied to charitable purposes only. 2 INVESTMENT INCOME

2012 201 1 £'000 £'000 Income from fixed asset investments 333 330 Bank interest receivable 1 1 334 331

|3 OTHER INCOMING RESOURCES I

2012 201 1 £'000 £'000 Royalty income 9 9

U COSTS OF GENERATING FUNDS 1

2012 201 1 £'000 £'000 Partners Capital LLP 53 55 Schröders & Company Ltd 67 65 Total investment management fees 120 120

Investment management fees referred to here are those accrued fees relating to the management of the Institute's investment portfolios in 2012.

5 GOVERNING BODY AND STAFF COSTS

Emoluments of members of the Governing Body No member of the Governing Body received any emoluments in respect of services to the Institute during the year (201 I: nil). Travel expenses of £ 1,5 12 were paid relating to the claims of seven members in connection with their attendance at meetings (201 I: £1,470, six members).

Members of the Governing Body who are also members of the Scientific Advisory Committee receive remuneration in relation to their services to the committee. Remuneration of £1,875 (201 I: £1,875) was paid to one of the members.

Employee information The average number of persons employed by the Institute during the year was three (201 I: three), two of whom are part-time. All were employed in an administrative and support capacity. No employees earn over £60k p.a. (2011: nil).

Staff costs 2012 201 1 £'000 £'000 Gross salaries 73 71 Pension contributions 3 3 Employer’s national insurance 7 7 83 81

The salary costs are allocated under governance where related to statutory accounts preparation, the balance being reported within support costs.

21 ¡6 PRIZES & SUMMER STUDENTSHIPS 1

2012 201 1 £'000 £'000 Prize awards 600 600 Summer Studentship payments 40 42 Support costs (see Note 7) 44 60 Salaries (see Note 5) 73 71 757 773

|7 SUPPORT COSTS 1

2012 201 1 £'000 £'000 Office expenses 7 id Travel expenses 3 4 Professional fees 6 10 Honoraria and events 19 19 Pension costs (see Note 13) 9 17 44 60

These costs are all considered to be costs to support resources expended on charitable activities.

|8 GOVERNANCE COSTS 1

2012 201 1 £'000 £'000 Auditors’ remuneration 9 12 Staff costs 10 10 Honoraria and events 6 6 25 28

No non-audit services were provided by the auditors during the year (201 I: none).

2 2 9 INVESTMENTS

2012 2011 £'000 £'000 Market value at beginning of year 31,802 33,344 Purchases during the year at cost 985 4,109 Proceeds of sales during the year (4,460) (4,978) Reinvested income for the year 161 195 Movement in un-invested cash 2,527 318 Cash withdrawn (1,000) (580) Net change in market value 3,950 (606) Market value at year-end 33,965 31,802

The portfolio’s asset allocation was as follows: 2012 201 1 £’000 £’000 UK investments Equities 7,092 6,523 Fixed interest 1,318 1,264 O ther (including private equity, property, commodities and alternatives) 2,805 4,008 Cash 1,712 160 Total U K investments 12,927 1 1,955

Non-ÜK investments Equities 13,299 12,301 Fixed interest 1,081 1,484 Other (including private equity, property, commodities and alternatives) 6,135 5,715 Cash 523 347 Total non-UK investments 21,038 19,847

Total 33,965 31,802

A t 31 December 2012 no single shareholding exceeded 5% of the total value of Investments (201 1: none). Historical cost, related to the closing position of 2012, was £26.9m (201 1: £30.6m). O 10 D EB TO R S

2012 201 1 £'000 £'000 Accrued Income 14 17

11 CA SH

2012 201 1 £'000 £'000 Cash at bank 241 231

23 [ 2 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2012 201 1 £'000 £'000 Taxation and social security 3 3 Accruals and deferred expenditure 25 230 Total creditors falling due within one year 28 233

3 PROVISION FOR LIABILITIES AND CHARGES

This represents a provision for future supplementary pension payments, in respect of ex-employees, based on their salary and length of service. The pensions are unfunded, with payments made out of the Institute’s funds as they fall due.

Movements in the pension provision during the year were as below:

2012 201 1 £'000 £'000 Liability at beginning of period 202 331 Plus interest cost 9 17 Plus actuarial gains and losses 4 (117) Benefits paid (24) (29) Liability at end of period 191 202

The tables below state the FR S17 actuarial assumptions used to estimate the pension provision. Principal actuarial assumptions Valuation at 31 December 2012 2012 201 1 Rate of increase to pensions in payment 3.0% 2.7% Rate used to discount scheme liabilities 5.0% 4.6%

The post-retirement mortality assumption uses the PCAOO base tables (year of birth) with improvements equal to medium cohort with a 1% minimum.

14 RELATED PARTY TRANSACTIONS

There were no related party transactions in the year (201 I : none). cV-.

24 Designed and produced by Alec Just Print and Design Aston Clinton Aylesbury Bucks HP22 5EE o The Lister Institute of Preventive Medicine Nurturing the future leaders in biomedical research

ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31 December

■ f f àÉÉSik ''W'

The Lister Institute of Preventive Medicine is a company limited by guarantee (England 34479) and a registered charity (206271 ) The Institute was founded in 1891 and for the next 80 years played a vital role in the development of the laboratory aspects of preventive medicine as an independent research institute in the UK.

Financial pressures in the 1970s led to the closure of the research and production facilities and the conversion of the Lister Institute into a highly successful trust awarding prestigious Research Fellowships from 1982 which in 2003, again because of financial pressures, were revised to become Prize Fellowships.

The cover portrait of Lord Lister reproduced by courtesy of the Royal Veterinary College The Lister institute of Preventive Medicine Annual Report and Financial Statements 2013

LEGAL AND ADMINISTRATIVE INFORMATION for the year ended 31 December 2013

THE GOVERNING BODY Professor Sir Alex Markham, DSc, FRCP, FRCPath, FMedSci, Chairman Mr Michael French, BSc (Eng), FCA, Hon Treasurer Professor Wendy Bickmore, BA, PhD, FMedSci, FRSE (Appointed 6 September 2013) Professor Janet Darbyshire, CBE, FRCP, FFPH, FMedSci Professor Dame Kay Davies, CBE, DBE, MA, DPhil, FMedSci, FRCP(hon), FRCPath, FRS Hon Rory M B Guinness Professor Douglas Higgs, MBBS, MRCPath, DSc, FRCP, FRCPath, FRS Mr Andrew Hutton, MA, CFA Professor Sir Alec J Jeffreys, DPhil, FMedSci, FRS Professor Patrick Maxwell, FRCP, FMedSci Professor Tony Minson, PhD, FMedSci Mr Matthew Pintus, BA Professor Geoffrey L Smith, PhD, FMedSci, FRS (Retired 6 September 2013) Professor Cheryll A Tickle, CBE, FRSE, FMedSci, FRS

SENIOR MANAGEMENT Secretary and Director: Dr Trevor A Hince, PhD

Business Address Registered Office PO Box 1083 Macfarlanes Bushey 10 Norwich Street Hertfordshire WD23 9AG London EC4A 1BD

Solicitors Investment Advisors Macfarlanes Schroder & Co Limited 20 Cursitor Street 12 Moorgate London EC4A 1LT London EC2R 6DA

Bankers Partners Capital LLP 5 Young Street Messrs Coutts & Co St Martins Office LondonW85EH 440 Strand London WC2R 0QS Auditors Kingston Smith LLP Devonshire House 60 Goswell Road Website: www.lister-institute.org.uk London EC1M 7AD Telephone: 01923 801886 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2013

L e g a l a n d A dministrative In f o r m a t io n for the year ended 31 December 2013

THE SCIENTIFIC ADVISORY COMMITTEE Professor Patrick Maxwell, FRCP, FMedSci, Chairman Dr Ian Adams, BSc, PhD (Appointed 6 September 2013) Professor Wendy Bickmore, BA, PhD, FMedSci, FRSE (Retired 6 September 2013) Professor Jon Cohen, FRCP, FMedSci Professor Mary Collins, PhD, FMedSci Professor William Deakin, PhD, FRCPsych, FMedSci Professor Annette C Dolphin, PhD Professor David Holden, FMedSci, FRS Professor John Iredale, FRCP, FMedSci, FRSE Professor Nick Lemoine, MD, PhD, FRCPath, FMedSci Professor Kate Storey, PhD, FRSE Professor Jonathan Waltho, BSc, PhD

Secretary: Dr Trevor A Hince, PhD

THE FINANCE AND INVESTMENT COMMITTEE

Mr Michael French, BSc (Eng), FCA, Chairman Hon Rory M B Guinness Mr Andrew Hutton, MA, CFA Professor Sir Alex Markham, DSc, FRCP, FRCPath, FMedSci Professor Tony Minson, PhD, FMedSci Mr Matthew Pintus, BA

Secretary: Dr Trevor A Hince, PhD The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2013

CHAIRMAN'S ANNUAL REPORT for the year ended 31 December 2013

I DESCRIBED LAST YEAR as one of 'quiet consolidation' but I am very pleased to report that the year 2013 has been one of growth and development on several fronts. The improved performance of stock markets worldwide enabled the Institute's investments to grow by over £3m and to close the year at £37.250m.This gave confidence to the Governing Body and we were able to award four Research Prize Fellowships and increase the number of Summer Studentships. The Institute's new website was launched and with it a new logo and'strap­ line'. The working relationships with our two investment advisors were further developed via a revised 'Investment Policy Statement'and our new auditors are getting to know the Insti­ tute. On the scientific front, the Institute's Fellows and former Fellows have continued to undertake excellent research and been rewarded and recognised for it both within their own institutions and nationally with many promotions and two former Fellows being elected to the Royal Society. The Institute's philosophy of supporting research through the identification of top- quality individuals and then helping them to develop their activities is as strong today, via the Prize Fellowship scheme, as it was in 1982 when the first Senior Fellowships were awarded. Of course, the Institute is no longer able to provide the five-year personal sup­ port of the original Fellowships but we hope that the current provision of additional un­ restricted funds to high quality researchers gives them the freedom to develop areas of their research in whatever way suits them best. We think that what we are trying to achieve is encapsulated in the Institute's new strap-line - 'Nurturing the future leaders in biomedical research'.

Governing Body and Administrative Matters

Governing Body and Administration The Governing Body has met twice during the year and I must pay tribute to the quality and dedication of its members. It is therefore very sad when we have to say'goodbye'to one of our colleagues and this was especially true this year when Professor Geoffrey Smith stood down. Geoffrey had been a member of the Governing Body since 2003, having been pre­ vailed upon to stay for a second term, but his association with the Institute started in 1988 when he was awarded the Institute's Jenner Fellowship; and I think his commitment to the

5 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2013

Institute has never wavered since then! He was a wonderful member of the Governing Body with thoughtful advice, ideas and enthusiasm for all that the Institute does. In his place it is a pleasure to welcome Professor Wendy Bickmore, who was a Fellow from 1991 to 1996, and has just completed six years on the Institute's Scientific Advisory Committee yet was enthusiastic about joining the Governing Body! Her knowledge of assessing applications for the Prize Fellowships will be invaluable to the Governing Body as we have discussions about the future development of the scheme. Finally, it is with some relief that the Institute persuaded Mr Andrew Hutton to serve for a further term since his knowledge and expert­ ise is vital in assessing the performance of our investments and the relationship with both Schroders and Partners Capital. The Institute continues to be run very smoothly by Trevor Hince, Naomi King and Jacky Wilson and on behalf of the Governing Body, and members of the Scientific Advisory Committee, I thank them for making our tasks that much easier.

Institute Membership Six Prize Fellows, Dr Simon Bullock, Dr Vincenzo Costanzo, Professor Rebecca Fitzgerald, Dr Holger Gerhardt, Dr Juan Martin-Serrano and Dr Fiona Wardle, who completed their fellowships in 2013, have been welcomed into membership. The Institute is also very pleased that six members of the Scientific Advisory Committee, having completed one year, have accepted membership. They are: Professors Jon Cohen, William Deakin, Annette Dolphin, John Iredale, Nick Lemoine and Kate Storey. Financial Matters

Following the increase in the value of the Institute's portfolio last year, it is particularly pleasing to report a further rise of £3.285m this year, bringing the year-end balance of the fund to £37.250m. This steady growth gave comfort to the Governing Body who felt able to agree the award of four Prize Fellowships (£800,000) and 21 Summer Studentships (£42,000) -whilst the Institute's operational costs (excluding investment management costs) remained low at £147,000. The Institute's total expenditure in 2013 was £1.169m. Despite these pleasing figures there is still a need for caution as worldwide economic growth is very un­ even and the performance of markets far from predictable such that it would be rash to plan

6 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2013

future expenditures on more than a three percent return in real terms. The Institute has again met regularly with our investment advisors Partners Capital and Schröders and also took the opportunity to review its Investment Policy Statement (IPS), which both sets out our broad investment requirements and gives the detailed parameters for each of the advisors. After discussion and major input from Andrew Hutton, for which the Institute is extremely grateful, we now have in place an over-arching IPS for the Lister and two'tailor-made'versions for Partners Capital and Schröders. As always, the Institute is indebted to Michael French and all members of the Finance and Investment Committee and I should like to thank them for all their hard work and oversight which provides tremendous reassurance to me as Chairman. At the beginning of the year the Institute formally changed its auditors, and we look forward to our association with Nicholas Brooks and his team at Kingston Smith LLP, although because of the time-scale for production of the year-end report and accounts they did audit the 2012 figures. The change in auditors brought to a close a very long and happy relationship with PricewaterhouseCoopers, who over many years have provided great support to the Institute, yet it became clear to both parties that PwC's capabilities and expertise were no longer matched by the Institute's modest requirements. Further details on the Institute's finances may be found on pages 19 and 20, and are summarised in the Statement of Financial Activities on page 24.

Scientific Activities Scientific Advisory Committee As I indicated last year, the Institute welcomed a number of new members to the Scientific Advisory Committee (SAC) in 2012 and this was the first year that they worked together, under the chairmanship of Professor Patrick Maxwell, to select the 2013 Prize Fellows and, as anticipated, did an excellent job. There were over 60 applicants and the concerns expressed last year about the number of female researchers coming forward were allayed with 40% originating from women and a similar percentage making it to the long-list. After an extensive review process, involving the acquisition of views from national and inter­ national experts, the SAC identified nine candidates for interview. Faced with young 7 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2013

researchers of exceptional quality and wide-ranging areas of research, selecting the actual prize-winners was a daunting task, but the SAC came up with four very worthy candidates. Recognising this, the Governing Body agreed the award of four Prize Fellowships: two to female and two to male researchers. The excellence of the winners was made clear to the whole Institute when the new Prize Fellows spoke about their research at the Fellows' meet­ ing. Both the Institute and I are indebted to Patrick Maxwell and his'new team'for all their hard work and excellent choices. Finally, I should offer particular thanks to Professor Wendy Bickmore as she steps down from the SAC (to join the Governing Body) and welcome Dr Ian Adams, a former fellow and also from the University of Edinburgh, as her replacement.

2013 Lister Research Prize Fellowship Winners The recipients of the 2013 Lister Research Prize Fellowships, who each received the award of £200,000, were:

Prize Winner Title of Research

* 1 Dr Simon Draper Development of next-generation broadly- The Jenner Institute, neutralising vaccines against the blood K n f l Oxford stage infection of human malarias

Dr Sherif El-Khamisy The repair of oxidative and topoisomerase University of Sheffield induced chromosomal strand breaks and human disease

H Decoding gene regulatory circuits controlling multi-potency of neural crest

Dr Tatjana Sauka-Spengler Weatherall Institute of Molecular Medicine, H Microtubule-actin crosstalk in cell migration Dr Anne Straube University of Warwick 8 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2013

Current and Former Lister Prize Fellows The following have been awarded Lister Research Prize Fellowships since the inception of the Prize Fellowship scheme. This is an outstanding group of scientists and represents a major contribution to the well-being of UK biomedical research:

F e llo w Title o f Research A w a rd e d

Dr Nina Balthasar Identifying the novel CREB coactivator T0RC2's role in the 2007 University of Bristol hypothalamic pathways controlling energy homeostasis

Dr Oliver Billker In search of the xanthurenic acid receptor of malaria 2004 The Wellcome Trust parasites-a potential target for transmission control Sanger Institute

Dr Nia Bryant Using yeast as a model system to understand the 2004 University of York insulin-dependent trafficking of GLUT4 in adipocytes

Dr Simon Bullock Mechanisms and neuronal functions of motor-driven 2008 MRC Laboratory of Molecular transport Biology, Cambridge

Dr Juan Burrone The role of neuronal activity during synapse formation 2009 Kings College London

Dr Vincenzo Costanzo The role of ATM and ATR in preventing genomic instability 2006 Cancer Research UK Clare Hall Laboratories

Dr Victoria Cowling Regulation and function of the 7-methylguanosine cap 2011 University of Dundee

Professor Daniel Davis Nanotubes and synapses in immune cell communication 2005 Imperial College London

Dr Michael Eddleston Prevention of deaths from late respiratory failure in 2011 University of Edinburgh organo-phosphorus pesticide poisoning

Prof Rebecca Fitzgerald Translational research programme for prevention of 2008 University of Cambridge oesophageal adenocarcinoma

Dr HolgerGerhardt Endothelial guidance in vascular patterning 2008 Cancer Research UK London Research Institute Continued overleaf The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2013

F e llo w Title o f Research A w a rd e d

Dr Fiona Gribble Secretion of incretin hormones from the mouse 2006 University of Cambridge intestine

Dr Andrew Jackson Cellular pathways determining human brain size 2009 University of Edinburgh

Dr Josef Kittler Miro family proteins as regulators of synaptic bio­ 2010 University College London energetics and a locus for mitochondrial dysfunction in neurological disease

Dr Robert Klose Biochemical isolation and functional dissection of the 2011 University of Oxford CpG island proteome

Dr David Komander Bacterial interference with the ubiquitin system 2012 MRC Laboratory of Molecular Biology Cambridge

Prof Paul Lehner The role of HSP70 in MHC Class 1 mediated antigen 2004 University of Cambridge presentation in human dendritic cells

Dr David Lyons Elucidating mechanisms of myelinated axon formation, 2012 University of Edinburgh function and repair using zebrafish

Dr Juan Martin-Serrano Functional parallels between HIV-1 budding and the 2008 King's College London last step of cell division

Dr Robin May The molecular basis of latency and dissemination 2010 University of Birmingham during cryptococcosis

Dr Akhilesh Reddy Peroxiredoxins and redox oscillations in the circadian 2012 University of Cambridge (24 hour) clockwork

Prof K enneth Sm ith Control of infection and autoimmunity by an 2007 University of Cambridge inhibitory Fc receptor FcyR11 b

Dr Grant Stewart Investigating the role of the RIDDLE syndrome 2009 University of Birmingham gene in promoting repair of DNA damage

Prof Tomoyuki Tanaka Mechanisms of kinetochore-microtubule 2005 University of Dundee interaction

Dr Sarah Teichmann Decoding genetic switches in T helper cell differentiation 2010 The Wellcome Trust Sanger Institute and EMBL-EBI, Cambridge Continued opposite

10 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2013

F e llo w Title o f Research A w a rd e d

Professor Chris Thompson Identifying and characterising genes that control cell fate 2005 University of Manchester choice and social behaviour

Professor Daan van Aalten Structural mechanisms and specificity of 0-GlcNAc 2006 University of Dundee signalling in the eukaryotic cell

Dr Fiona Wardle Transcriptional control of mesodermal cell differentiation 2007 Kings College London in vertebrates

Fellowship Activities

The Institute's annual Fellows'meeting was held at Christ's College Cambridge and the warm September sunshine, the ambience of the location and not least the excellence of the science, combined to provide an enjoyable and stimulating day. As usual, the new Prize Fellows had their baptism of fire by giving the first talks of the day but impressed everybody by the quality of both their presentations and the underlying research. The topics ranged from Dr Draper's work on developing vaccines in malaria, via the repair of chromosomal and DNA damage from Dr El-Khamisy and Dr Straube talking about cell migration, to Dr Sauka- Spengler explaining the control of multipotency in the neural crest.

The other speakers and their titles were: • Dr Alan Whitmarsh - Regulation of stress signalling • Dr Nina Balthasar - Food for thought; an investigation into the brain's regulation of energy homeostasis • Professor Dino Giussani - Fleart disease link to fetal hypoxia and oxidative stress

The 2013 Special Lister Lecture was given by Professor Simon «roll, a former Fellow and long-standing member of the Institute's Scientific Advisory Committee, with the intriguing title of 'I, Bi, HiB, HiBPF'. These turned out to be abbreviations for various strains of Haemophilus influenza which when Professor Kroll held his Fellowship in 1986 was the commonest cause of life-threatening infections in children including meningitis. He explained that strains with the serotype b polysaccharide capsule were responsible for the The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2013

majority of infections and how his fellowship work had been concerned with the genetics of this capsulation and the particular virulence of the type b strains. Happily, the intro­ duction of a vaccine in 1992 dramatically reduced the impact of the bacteria and Hib meningitis was rarely seen in the UK. However, in other parts of the world, particularly South America, the bacteria was prevalent and mutating to produce more virulent strains and Professor Kroll went on to discuss the worrying importance of this. Traditionally, the meeting concluded with the Reception and Dinner, where the new Prize Fellows were presented with their scrolls and welcomed into the 'Lister family'.

2013 Research Prize winner DrTatjana Sauka-Spendler (centre) meeting Professor Ian Jackson (left) and Dr Andrew Jackson (right) at the annual Fellows' meeting at Christ's College Cambridge

12 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2013

Conclusion

It is always pleasing to hear of the movements and successes of Fellows and former Fellows as they develop their careers. During the past year the University of York has had a particular attraction for Lister Fellows: Nia Bryant moved there to become Chair of Cell Biology, Peter McGlynn to take up the Anniversary Chair in Biology and Bob White to become Chair of Biochemistry. They join Dawn Coverley who was already established there in the Depart­ ment of Biology and leading forward the Cizzle Biotechnology Company as its Chief Scientific Officer. There have also been movements to and from Institutes in Europe with Professor Kostas Tokalides coming to Glasgow from Crete and Dr Costanzo Vincenzo going to Milan. I am sure that there have been other moves and I hope that all Fellows and former Fellows will keep the Institute aware of changes of location and promotions. We already know of several career advancements and offer the Institute's congratulations to all who have gained Professorships, Readerships, Senior Lectureships, other promotions and awards. The Institute was particularly delighted when two former Fellows, Professor Judy Armitage and Dr Phill Hawkins, were elected as Fellows of the Royal Society, one of the highest accolades in UK science and to them I offer our warmest congratulations. It is also pleasing when former colleagues on the Governing Body are honoured and the Institute was delighted to see the many and significant contributions to medicine made by Professor Peter Ratdiffe recognised by a knight­ hood. Trevor Hince and I have visited several universities in the past year to attend presentation ceremonies for the new Prize Fellows Professor Sir Peter Ratcliffe and it is always a great pleasure to see these young researchers in their home environment receiving the recognition that they deserve and to thank the host institutions for the hospitality that they extended to us. The Institute continues to flourish and for this I thank all those people involved with it.

ALEX MARKHAM Chairman

13 The 2013 Annual Fellows' Meeting at Christ's College, Cambridge

Animated conversation at dinner on the occasion of the annual Fellows'meeting Prof Robin Irvine and Dr Phill Hawkins

Dr Nina Balthasar and Dr Fiona Gribble

(I to r): Mr Matthew Pintus, Prof Sir Alex Markham and Mr Andrew Hutton

15 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2013

r e p o r t o f t h e G o v e r n in g b o d y for the year ended 31 December 2013

The Governing Body presents its Annual Report The Trustees are the fifteen members of the under the Charities Act 2011 together with the Governing Body of whom six are appointed by audited Financial Statements of the Charity for the members at the annual general meeting. A the year ended 31 December 2013.The Financial maximum of six furtherTrustees are appointed Statements have been prepared in accordance by the Governing Body and there are currently with the accounting policies set out in Note 1 four such appointees. One additional member Is (page 26) to the Financial Statements and comply Lord Iveagh's representative, another is Professor with the Companies Act 2006, the requirements Sir Alec Jeffreys who was appointed to life- of the Statement of Recommended Practice membership, and the final member, Professor 2005 "Accounting and Reporting by Charities", Cheryll Tickle, is the representative of the Royal and the documents governing the constitution Society. Trustees, other than the two nominated of the Charity. representatives, Professor Sir Alec Jeffreys and exceptionally those appointed by the Governing REFERENCE AND ADMINISTRATIVE Body, generally serve for a maximum of six years DETAILS and a system of planned rotation is in place. Reference and administrative information is set When considering appointment or nomination out on pages 3 and 4 of this report. for election as Trustees, the Governing Body has regard to the specialist skills needed. Members of the Governing Body, Directors and Trustees Induction and training of Trustees The members of the Governing Body are, for the New Trustees undergo induction sessions with purposes of company law, Directors of the the Chairman, Treasurer and Director during Institute and, for the purposes of charity law, which they will gain an understanding of the Trustees of the Institute and throughout this Institute's structure, activities, financial position report are collectively referred to as the Trustees. and future strategies. Prior to appointment each Details of the Trustees serving throughout the of them will attend, as an'observer', one meeting year, unless otherwise stated, are set out on of the Governing Body. NewTrustees will also be page 3. made aware of their legal obligations with regard to the charity and company law. In addition, STRUCTURE, GOVERNANCE AND newTrustees will be advised of appropriate MANAGEMENT literature and training courses.

Constitution Organisation The Institute is registered with the Charity The Institute is governed by its Governing Body Commission for England and Wales (registration which is responsible for setting policies, autho­ number 206271). It Is incorporated and registered rising actions on all significant operational issues in England and Wales under the Companies Act and ensuring legality and good practice. The 2006 as a company limited by guarantee and Governing Body meets formally twice a year. not having a share capital (company number Specific authorities are delegated to two sub­ 34479). It is governed by its Memorandum and committees in particular areas.The Scientific Articles of Association and has charitable status. Advisory Committee (see page 4 for member­ Appointment ând re-appointment of Trustees ship) has responsibility for the selection of the 16 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2013

Lister Prize Fellows and the monitoring of their for all meetings. scientific activities, as well as providing scientific The principal risk facing the Institute lies in its and medical advice to the Governing Body as ability to maintain and protect the value in real required. The Finance and Investment Committee terms of its investments and to generate from (see page 4 for membership) has responsibility them on a long-term basis a consistently high for interaction with the Institute's investment overall return. This risk is mitigated by the advisors, ensuring implementation of the Institute's appointment of experienced invest­ Institute's investment policy and monitoring ment managers with a proven track record; by performance. It prepares and submits to the internal controls that allow close and regular Governing Body the annual budget, and subse­ monitoring of their performance against bench­ quently monitors performance against it. It also marks; by the Institute's requirement of its advises the Governing Body, as required, on investment managers to re-tender periodically other financial and risk matters. and competitively for appointment - last review The routine management of the Institute's October 2012, and by regular meetings that activities is undertaken by its Director, aided by formally review investment performance and the Administrator and the Accountant. All staff policy and include one-to-one presentations by work from home. the investment managers.

Risk Management Objectives and activities TheTrustees assess the risks facing the Institute The statutory Object of the Institute is to further and review the effectiveness of the controls to understanding and progress in preventive medi­ monitor and mitigate against them. A Risk cine by promoting excellence in biomedical Management Register is maintained and formally research in the UK. reviewed annually by the Governing Body. When founded in 1891, the Institute sought to The key controls used by the Institute include: achieve this objective by establishing a research institute specialising in the area of 'infections' • Formal agendas for all Governing Body and their prevention by immunisation and other meetings means. It complemented the research activities • Strategic planning, budgeting and manage­ ment accounting by the production and supply of materials such • Formal written policies as vaccines and toxins. • Clear authorisation and approval levels The Institute continued in this mode until the • Regular review of Fellows'scientific reports late 1970s when increasing financial and regula­ tory pressures caused the cessation of these The specific risk of bribery associated with any activities. Proceeds from the resultant sale of of the Institute's activities has been reviewed land and buildings created the funds from which and clear policies and procedures have been present day activities are financed; at 31 December developed and communicated to all Trustees, 2013 these funds stood at £37.250m. From the staff and Members. 1980s the Institute has pursued its objective by The Institute maintains a 'Register of Interests' the provision of grant funding to facilitate the for all Governing Body and committee members research and careers of high quality individuals as well as principal staff and operates a clear working in areas of biomedicine relevant to declaration of interests policy and procedures preventive medicine. It has done this because it 17 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2013

believes that the acquisition and advancement the award. of knowledge is crucial to the understanding of Twenty-one Summer Studentships were health and disease and that research to achieve awarded in 2013, each is a £2,000 student bursary this is driven forward by high quality individuals and is paid to the host institution at the com­ and their supporting staff. mencement of the award for the support of the student for up to a ten-week period. Principal activities The Institute maintained its commitment to In pursuance of this objective, during 2013 the fostering scientific interchange and collabora­ Institute awarded four new Prize Fellowships. In tion within the Fellowship by holding its 29th addition, the Institute has continued its Summer Annual Research Fellowship meeting at Christ's Studentship scheme which enables up to twenty- College, Cambridge. five undergraduates per year to work with Lister Fellows or former Fellows in order to gain Public Benefit experience of biomedical research with the In so far as the statutory objectives, aims and hope that they might consider it as a career. activities of The Lister Institute of Preventive Medicine are to further understanding in pre­ Achievement and Performance ventive medicine by promoting biomedical The Scientific Advisory Committee has monitored research as set out on page 17 of this Report, the performance of the current 21 Lister Prize the Trustees are satisfied that they fully comply Fellows, through detailed review of the annual with the duty in section 17 of the Charities Act reports on their research which include details 2011, namely to have due regard to the public of all publications and presentations. The benefit guidance published by the Charity Scientific Advisory Committee has reported to Commission. Trustees that it is of the view that all Fellows are The public benefit of the Institute's grant undertaking high quality research and producing making is clearly identifiable in the 'Achievement new knowledge that will contribute significantly and Performance' paragraphs above and in the to our understanding of disease, its causes, list of Research Prize Fellows together with their treatment and prevention. The reports of the areas of research on pages 8 to 11 of the Chair­ research undertaken by the Summer Students man's report. All Lister Fellows are actively have also been reviewed and found to be very encouraged, where appropriate, to develop their satisfactory. research findings for potential public benefit Four Lister Prize Fellowships were awarded in and the Scientific Advisory Committee has 2013 to Drs Draper, El-Khamisy, Sauka-Spengler regard to this when reviewing their research and Straube from a field of 63 initial applicants, reports. The Lister Institute therefore benefits following extensive scientific review of their the public or a sector of it without imposing any applications and final interview by the Scientific restrictions. Applications from individuals are Advisory Committee. (More details of the Prize accepted only when demonstrably consistent Fellows and their research are provided on page with the charitable objectives of the Institute. 8). Each Prize Fellowship provides £200,000 which may be spent over five years on the recip­ Im p a c t ient's research, although the funds are provided The impact of the activities of a medical research to the host institution at the commencement of charity can be measured at many levels ranging 18 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2013

from the growth of knowledge to direct patient/ adjustments made and specific versions agreed public benefit. Often the transition from the for each of the investment managers to reflect former to the latter may take many years and their individual investment approaches. The the involvement of several organisations. The investment managers are informed at the begin­ Institute requires that the results of the research ning of the financial year of the Institute's likely it supports are published and disseminated; cash requirements, both in terms of the amount that, where appropriate, significant intellectual and the timing of any draw-down, and are asked property is protected via patents; and that its to keep in an income or cash account sufficient commercial development is encouraged. Several funds to meet them. The Institute has in place biotechnology companies have been formed an ethical investment policy which does not around the findings of Institute sponsored permit direct investment in tobacco or tobacco- research and there are several interactions with related companies. large pharmaceutical companies. A prime The Institute's overall financial return objec­ example of the impact of research is DNA finger­ tive is to preserve and if possible enhance the printing, which was discovered by Sir Alec purchasing power of its portfolio assets, net of Jeffries when a Lister Fellow and has become an costs and approved withdrawals, over rolling indelible part of society, helping to prove three-year periods. This goal is synonymous innocence or guilt in criminal cases, resolving with the pursuit of a time-weighted net return immigration arguments and clarifying paternity. on portfolio assets that equals and if possible exceeds cost inflation as measured by the UK Investment policy and performance Consumer Price Index plus the Institute's long­ The Institute's investment objective is to develop term spending rate of 3-4% measured over and maintain its financial resources through the corresponding three-year periods. selection of investments, consistent with an The performance of the investment portfolio acceptable level of risk. is reviewed by the Finance and Investment The Institute's investment portfolio is split Committee, which had two meetings in the year between Schroder and Co Limited (Cazenove with the investment advisors to review perform­ Capital Management) and Partners Capital LLP ance, liquidity within the portfolio, and the due who both operate under mandates agreed in diligence undertaken on potential new invest­ advance with the Finance and Investment ment vehicles. In addition the Institute receives Committee. These mandates set out an overall detailed quarterly valuation and transaction target asset allocation with allowable ranges for reports. In a year that saw strong stock market each category of asset growth the fund has risen from £33.965m to Both investment managers invest on a total £37.250m including withdrawals of £1,000m. returns basis through a variety of pooled funds More details of the Institute's activities are set and in accordance with the Institute's overarch­ out In the Chairman's Report on pages 5 to 13. ing "Investment Policy Statement"(IPS) which states the overall Investment objective and sets FINANCIAL REVIEW the investment return objectives, the risk para­ meters, the performance measures and review Allocation of resources procedures for the portfolio. The IPS was last The Institute, which does not seek to raise funds reviewed in the autumn of 2013 with minor from the public, depends primarily on investment 19 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2013

returns to meet its pension provision payments, Plans for the future administrative expenditure and expenditure in The Institute's future policy is to continue to furtherance of the Charity's objectives. The total pursue its current objectives. It will therefore return on investments for the year was realised/ maintain the Prize Fellowship scheme which it unrealised gains of £3.972m and investment sees as a funding priority. The Summer Student­ income of £490,000. ship scheme will also be maintained together The resources expended totalled £1.169m of with the opportunity for schools to receive talks which £964,000 were resources expended for from the Institute's Fellowship on science and the Institute's charitable activities. biomedical subjects as part of an 'outreach' As the Prize Fellowships are fixed sum awards, programme. expenditure can be regulated by altering the number and/or value of prizes awarded each year. This will be done in light of the income and Statem ent of Trustee responsibilities realised/unrealised gains generated from our The Trustees (who are also directors of The Lister investment portfolio. This will be sensitive to the Institute of Preventive Medicine for the purposes performance of our investments and this will be of company law) are responsible for preparing reviewed annually before fresh commitments the Trustees'Annual Report and the financial are made. In the year, due to the substantial statements in accordance with applicable law increase in the value of the investment portfolio and United Kingdom Accounting Standards and good returns, the Trustees felt able to award (United Kingdom Generally Accepted Accounting four Prizes and to maintain their value at Practice). £200,000 each. The Summer Studentship Company law requires the Trustees to prepare scheme at a total cost of £42,000 can be re­ financial statements for each financial year viewed each year with regard to both number which give a true and fair view of the state of and value. affairs of the charitable company and of the in­ coming resources and application of resources, including the income and expenditure, of the Reserves policy charitable company for that period. In preparing The policy of the Trustees is to maintain adequate these financial statements, the Trustees are financial resources to provide income to meet required to: current and future commitments as they fall due • select suitable accounting policies and and ensure that adequate funds remain avail­ then apply them consistently; able to enable them to make awards in • observe the methods and principles in the perpetuity. Charities SORP; The adequacy of the level of reserves and the • make judgments and estimates that are continuing appropriateness of the policy are reasonable and prudent; reviewed on an annual basis by the Trustees. • state whether applicable UK Accounting As the current level of investments approaches Standards have been followed, subject to any the high of 2007 they feel satisfied with the material departures disclosed and explained policy over the long-term and the ability of the in the financial statements; and Institute to maintain appropriate levels of activity • prepare the financial statements on the going in the short-term. concern basis unless it is inappropriate to 20 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2013

presume that the charitable company will continue in business. TheTrustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the Trustees are aware: • there is no relevant audit information of which the charitable company's Auditor is unaware; • the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the Auditor is aware of that information. The Trustees are responsible for the mainte­ nance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

By Order of the Governing Body

ALEX F MARKHAM Chairman

MICHAEL FRENCH Treasurer

18 June 2014

21 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2013

INDEPENDENT AUDITORS' REPORT to the Members of The Lister Instituite of Preventive Medicine

We have audited the financial statements of ments sufficient to give reasonable assurance The Lister Institute of Preventive Medicine for that the financial statements are free from the year ended 31 December 2013 which com­ material misstatement, whether caused by fraud prise the Statement of Financial Activities, the or error. This includes an assessment of: Balance Sheet and the related notes. The finan­ whether the accounting policies are appropriate cial reporting framework that has been applied to the charitable company's circumstances and in their preparation is applicable law and United have been consistently applied and adequately Kingdom Accounting Standards (United King­ disclosed; the reasonableness of significant dom Generally Accepted Accounting Practice). accounting estimates made by the Trustees; and This report is made solely to the charitable the overall presentation of the financial state­ company's members, as a body, in accordance ments. In addition we read all the financial and with Chapter 3 of Part 16 of the Companies Act non-financial information in the Annual Report 2006. Our audit work has been undertaken so to identify material inconsistencies with the that we might state to the company's members audited financial statements and to identify any those matters we are required to state to them information that is apparently materially in­ in an auditor's report and for no other purpose. correct based on, or materially inconsistent To the fullest extent permitted by law, we do not with, the knowledge acquired by us in the accept or assume responsibility to any party course of performing the audit. If we become other than the charitable company and charita­ aware of any apparent material misstatements ble company's members as a body, for our audit or inconsistencies we consider the implications work, for this report, or for the opinions we have for our report. formed. Opinion on financial statements Respective responsibilities of Trustees and In our opinion the financial statements: Auditor • give a true and fair view of the state of the As explained more fully in the Trustees' Respon­ charitable company's affairs as at sibilities Statement, the Trustees (who are also 31 December 2013 and of its incoming the directors of the charitable company for the resources and application of resources, purposes of company law) are responsible for including its income and expenditure, for the the preparation of the financial statements and year then ended; for being satisfied that they give a true and fair • have been properly prepared in accordance view. Our responsibility is to audit and express with United Kingdom Generally Accepted an opinion on the financial statements in accor­ Accounting Practice; and dance with applicable law and International • have been prepared in accordance with the Standards on Audit- ing (UK and Ireland). Those requirements of the Companies Act 2006. standards require us to comply with the Audit­ ing Practices Board's (APB's) Ethical Standards Opinion on other matter prescribed by the for Auditors. Companies Act 2006 In our opinion the information given in the Scope of the audit of the financial statements Trustees' Annual Report for the financial year for An audit involves obtaining evidence about the which the financial statements are prepared is amounts and disclosures in the financial state­ consistent with the financial statements.

22 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2013

Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: • adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or • the financial statements are not in agreement with the accounting records and returns; or • certain disclosures of Trustees' remuneration specified by law are not made; or • we have not received all the information and explanations we require for our audit; or • the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the Trustees'Annual Report.

Nicholas Brooks (Senior Statutory Auditor) for and on behalf of Kingston Smith LLP, Statutory Auditor

Devonshire House 60 Goswell Road London EC1M 7AD

18 June 2014

23 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2013

STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2013

Notes 2013 2012 £'000 £'000

Incoming resources Incoming resource from generated funds: Investment income 2 490 334 Other Incoming resources 3 9 9 Total incoming resources______499______343

Resources expended Costs of generating funds: Investment management costs 4 (180) (120) Charitable Activities: Prizes & Summer Studentships 6 (964) (757) Governance costs 8 (25) (25) Total resources expended (1,169) (902)

Net expenditure (670) (559)

Gains/flosses) on investment assets 3,972 2,949 Pension actuarial (losses)/gains 13 (10) (4) Net movement in funds 3,292 2,386

Total funds brought forward 34,001 31,615 Total funds carried forward 37,293 34,001

All items in the above Statement of Financial Activities relate to continuing operations for both years. The Institute has no other recognised gains and losses other than as stated above and hence no separate income and expenditure statement has been shown.

The notes set out on pages 26 to 30 form part of these financial statements.

24 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2013

BALANCE SHEET as at 31 Decem ber 2013 Company no. 34479

Notes 2013 2012 £'000 £'000 Fixed assets Investments 9 37,250 33,965 Total fixed assets 37,250 33,965

Current assets Debtors 10 8 14 Cash at bank and in hand 11 650 241 Total current assets 658 255

Current liabilities Creditors: amounts falling due within one year 12 (429) (28) Net current assets 229 227

Total assets less current liabilities 37,479 34,192

Creditors: amounts falling due after more than one year Pension provision 13 (186) 091) Net assets 37,293 34,001

represented by Unrestricted funds 37,293 34,001 Total charity funds 37,293 34,001

The Trustees have taken advantage of the exemptions conferred by the Companies Act 2006, on the grounds that the Institute is entitled to the benefit of those exemptions as a small company.

These financial statements were approved by the Governing Body on 18 June 2014.

ALEX F MARKHAM Members of the MICHAEL FRENCH Governing Body

The notes set out on pages 26 to 30 form part of these financial statements. The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2013

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2013

1 PRINCIPAL ACCOUNTING POLICIES

Basis of preparation The Financial Statements have been prepared in accordance with the Statement of Recommended Practice, Accounting and Reporting by Charities (SORP 2005), applicable accounting standards and the Companies Act 2006. The Financial Statements are prepared in accordance with the historical cost convention modified by the revaluation of investments. The principal accounting policies adopted in the preparation of the Financial Statements are as follows: Incoming resources All incoming resources are accounted for on a receivable basis. Prizes and grants The cost of Research Prize Fellowships is charged in the year awarded. Resources Expended The costs of generating funds include those fees payable to the Institute's investment fund managers for the management of the Institute's investment portfolio. These are accounted for on an accruals basis. Charitable expenditure comprises all expenditure directly relating to the objects of the charity and is accounted for on an accruals basis. The allocation of expenditure between governance and management, administration and support costs is reviewed on an annual basis to ensure the allocation is appropriate. Indirect costs are generally treated as falling into the latter category with the exception of a proportion of salary and related costs which have been classified as governance costs. Governance costs In addition to auditor's remuneration, governance costs comprise the proportion of staff costs associated with the time spent on the preparation of the statutory accounts and other governance issues together with honoraria remuneration provided to members of the Institute's Scientific Advisory Committee for their duties in selecting the Prize Fellows.

Supplementary pensions and staff pensions An estimate of the full provision is made in the Financial Statements for the costs of future supplementary payments. The provision and charge to income are reviewed annually by the Trustees in the knowledge that the number of persons receiving the supplementary pensions will not increase. The pension costs are assessed in accordance with actuarial advice and these costs are accounted for in accordance with FRS17. Existing employees participate in a defined contribution scheme, the costs of which are expensed as incurred. These disclosures are made in accordance with FRS17. Investments Investments are shown at market value in the balance sheet. Changes in the market value are included in the Statement of Financial Activities as realised and unrealised investment gains or losses in the year in which they arise. Investments denominated in foreign currencies are valued at year-end rates of exchange. Cash flow statement The Charity has taken advantage of the exemption provided by Financial Reporting Standard No 1 for small charities from the obligation to prepare a cash flow statement. Taxation The organisation is a registered charity and has obtained exemptions from taxation under Part II, Chapter 3 of the Corporation Tax Act 2010. This exemption will remain as long as income is compatible with that section and expenditure is applied to charitable purposes only.

26 2 INVESTMENT INCOME 2013 2012 £'000 £'000 Income from fixed asset investments 489 333 Bank interest receivable 1 1 490 334

3 OTHER INCOMING RESOURCES 2013 2012 £'000 £'000 Royalty income 9 9

4 COSTS OF GENERATING FUNDS 2013 2012 £'000 £'000 Partners Capital LLP 93 53 Schroder& Company Ltd 87 67 180 120

Investment management fees referred to here are those accrued fees relating to the management of the Institute's Investment portfolios in 2013. The increases are due to: changes in the regulation of charging, an alteration to the VAT status, and the triggering of performance fees.

5 GOVERNING BODY AND STAFF COSTS

Emoluments of members of the Governing Body No member of the Governing Body received any emoluments in respect of services to the Institute during the year (2012: nil). Travel expenses of £1,366 were paid relating to the claims of seven members in connection with their attendance at meetings (2012: £1,512, seven members). Members of the Governing Body who are also members of the Scientific Advisory Committee receive remuneration in relation to their services to the committee. An honorarium of £1,500 (2012: £1,875) was paid to one of the members, via the member's University, in 2013.

Employee information The average number of persons employed by the Institute during the year was three (2012: three), two of whom are part-time. All were employed in an administrative and support capacity. No employees earn over £60k p.a. (2012: nil).

Staff costs 2013 2012 £'000 £'000 Gross salaries 76 73 Pension contributions 3 3 Employer's national insurance 8 7 87 83

The salary costs are allocated under governance where related to statutory accounts preparation, the balance being reported within support costs.

27 6 PRIZES & SUMMER STUDENTSHIPS 2013 2012 f'000 £'000 Prize awards 800 600 Prize award - unspent element refunded (1) - Summer Studentship payments 42 40 Support costs (see Note 7) 47 44 Salaries (see Note 5) 76 ....73 964 757

7 SUPPORT COSTS 2013 2012 £'000 £'000 Office expenses 8 7 Travel expenses 4 3 Professional fees 5 6 Honoraria and events 20 19 Pension costs (see Note 13) 10 9 47 44 These costs are all considered to be costs to support resources expended on charitable activities.

8 GOVERNANCE COSTS 2013 2012 £'000 £'000 Auditors' remuneration 10 9 Staff costs (see Note 5) 11 10 Honoraria and events 4 6 25 25

No non-audit services were provided by the auditors during the year (2012: none).

28 9 INVESTMENTS

Listed investments are valued at middle market quotations ruling at the year-end 2013 2012 £'000 £'000 Market value at beginning of year 33,965 31,802 Purchases during the year at cost 9,095 985 Proceeds of sales during the year (8,579) (4,460) Reinvested income for the year 310 161 Movement in un-invested cash (513) 3,528 Cash withdrawn (1,000) (1,000) Net change in market value 3,972 2,949 Market value at year-end 37,250 33,965

The portfolio's asset allocation was as follows : 2013 2012 £'000 £'000

UK investments Equities 9,042 7,092 Fixed interest 2,397 1,318 Other (including private equity, property, commodities and alternatives) 3,328 2,805 Cash 586 1,712 Total UK investments 15,353 12,927

Non-UK investments Equities 14,281 13,299 Fixed interest - 1,081 Other (including private equity, property, commodities and alternatives) 7,182 6,135 Cash 434 523 Total non-UK investments 21,897 21,038

Total 37,250 33,965

At 31 December 2013 no single shareholding exceeded 5% of the total value of investments (2012: none). Historical cost related to the closing position of 2013 was £27.1m (2012: £26.9m).

10 D EBTO RS 2013 2012 £'000 £'000 Accrued income 8 14

29 11 CASH 2013 2012 £'000 £'000 Cash at bank 650 241

12 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2013 2012 £’000 £'000 Taxation and social security 3 3 Accruals and deferred expenditure 426 25 Total creditors falling due within one year 429 28

13 PROVISION FOR LIABILITIES AND CHARGES

This represents a provision for future supplementary pension payments, in respect of ex-employees, based on their salary and length of service. The pensions are unfunded, with payments made out of the Institute's funds as they fall due. Movements in the pension provision during the year were as below: 2013 2012 £'000 £'000 Liability at beginning of period 191 202 Plus interest cost 10 9 Plus actuarial gains and losses 10 4 Benefits paid (25) (24) Liability at end of period 186 191

The tables below state the FRS17 actuarial assumptions used to estimate the pension provision.

Principal actuarial assumptions Valuation at 31 December 2013 2013 2012 Rate of increase to pensions in payment 3.0% 3.0% Rate used to discount scheme liabilities 5.0% 5.0%

The post-retirement mortality assumption uses the PCA00 base tables (year of birth) with improvements equal to medium cohort with a 1% minimum.

30 Designed and produced by Alec Just Print and Design Aston Clinton Aylesbury Bucks HP22 5EE

The Lister Institute of Preventive Medicine Nu rturing the future leaders in biomedical research

ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31 December 2014

The Lister Institute of Preventive Medicine is a company limited by guarantee (England 34479) and a registered charity (206271) The Institute was founded in 1891 and for the next 80 years played a vital role in the development of the laboratory aspects of preventive medicine as an independent research institute in the UK.

Financial pressures in the 1970s led to the closure of the research and production facilities and the conversion of the Lister Institute into a highly successful trust awarding prestigious Research Fellowships from 1982 which in 2003, again because of financial pressures, were revised to become Prize Fellowships.

The cover portrait of Lord Lister reproduced by courtesy of the Royal Veterinary College The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2014

LEGAL AND ADMINISTRATIVE INFORMATION for the year ended 31 December 2014

THE GOVERNING BODY Professor Sir Alex Markham, DSc, FRCP, FRCPath, FMedSci, Chairman Mr Michael French, BS c(Eng), FCA, Hon Treasurer Professor Wendy Bickmore, BA, PhD, FMedSci, FRSE Professor Janet Darbyshire, CBE, FRCP, FFPH, FMedSci ( Resigned 10 February 2014) Professor Dame Kay Davies, CBE, DBE, MA, DPhil, FMedSci, FRCP(hon), FRCPath, FRS Hon Rory M B Guinness Professor Douglas Higgs, MBBS, MRCPath, DSc, FRCP, FRCPath, FRS Mr Andrew Hutton, MA, CFA Professor Sir Alec J Jeffreys, DPhil, FMedSci, FRS Professor Patrick Maxwell, FRCP, FMedSci Professor Tony Minson, PhD, FMedSci Mr Matthew Pintus, BA Professor Cheryll A Tickle, CBE, FRSE, FMedSci, FRS

SENIOR MANAGEMENT Secretary and Directo r: Dr Trevor A Hince, PhD

Business Address Registered Office PO Box 1083 Macfarlanes Bushey 10 Norwich Street Hertfordshire WD23 9AG London EC4A 1BD Solicitors Investment Advisors Macfarlanes 20 Cursitor Street Cazenove Capital Management London EC4A 1LT 12 Moorgate London EC2R 6DA Bankers Partners Capital LLP Messrs Coutts & Co 5 Young Street St Martins Office London W8 5EH 440 Strand London WC2R 0QS Auditors Kingston Smith LLP Devonshire House 60 Goswell Road London EC1M 7AD Websit e: www.lister -institute.org.uk Telephon e: 01923 801886 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2014

LEGAL AND ADMINISTRATIVE INFORMATION for the year ended 31 December 2014

THE SCIENTIFIC ADVISORY COMMITTEE Professor Patrick Maxwell, FRCP, FMedSci, Chairman Dr Ian Adams, BSc, PhD Professor Jon Cohen, FRCP, FMedSci Professor Mary Collins, PhD, FMedSci (Retired 5 September 2014) Professor William Deakin, PhD, FRCPsych, FMedSci Professor Annette C Dolphin, PhD Professor David Holden, FMedSci, FRS Professor Corinne Houart, PhD (Appointed 5 September 2014) Professor John Iredale, FRCP, FMedSci, FRSE Professor Nick Lemoine, MD, PhD, FRCPath, FMedSci Professor Kate Storey, PhD, FRSE (Retired 5 September 2014) Professor Jonathan Waltho, BSc, PhD Professor Colin Watts, FRS, FRSE, FMedSci (Appointed 5 September 2014)

Secretary: Dr Trevor A Hince, PhD

THE FINANCE AND INVESTMENT COMMITTEE Mr Michael French, BSc (Eng), FCA, Chairman Hon Rory M B Guinness Mr Andrew Hutton, MA, CFA Professor Sir Alex Markham, DSc, FRCP, FRCPath, FMedSci Professor Tony Minson, PhD, FMedSci Mr Matthew Pintus, BA

Secretary: Dr Trevor A Hince, PhD The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2014

CHAIRMAN’S ANNUAL REPORT for the year ended 31 December 2014

THE YEAR 2014 has seen some significan t ‘milestones ’ for the Institute: the year-end value of its investments at £3 7. 296m now exceeds the pre-financial crisis level of 2007 and the number of applications for the Prize Fellowships was the highest since 2005. We were able to award four Prize Fellowships and increase the number of summer studentships to twenty-five. In addition, the Institute was able to secure the funding for activities in 2015 by banking the necessary funds in advance. On the research front, Lister Fellows and former Fellows continued to undertake excellent research, publish high-impact papers and gain academic advancement. Of course, the Institute appreciates that it cannot take sole credit for these achievements since its Fellows will receive personal support and funding from many other agencies. However, on speaking to Fellows it is very clear that the flexibility which the Lister award of £200,000 gives them, whether to appoint new staff, buy equipment or pursue new lines of research, is worth far more than the simple cash value of the award.

Governing Body and Administrative Matters

Governing Body and Administration The Governing Body has met twice during the year, once in April and then before the start of the September Fellows’ meeting in Cambridge. However, the provision in the Institute’s Articles that matters can be resolved and approved by e-mail has also meant that impor - tant issues can and have been dealt with rapidly. I am particularly grateful to my fellow Trustees for the speed with which they respond to Lister matters and the obvious deep con - sideration which they give to the Institute’s business whether dealing with it electronically or at meetings. This year we were very sorry to bid farewell to Professor Janet Darbyshire from the Governing Body as she had to step down because of pressure from her other commitments. The Governing Body gave detailed thought to a potential replacement and decided that there would be great benefit in seeking somebody who had held a Lister Prize Fellowship in the recent past and would be able to bring first-hand experience of being a young researcher in today’s academic environment – we are delighted that Professor Rebecca Fitzgerald, a Prize winner in 2008, will become a Trustee in 2015. I and the other Trustees were equally delighted, and relieved, that Michael French was persuaded to stay on 5 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2014

for a further three years as the Institute’s Honorary Treasurer and re-elected at the AGM. The Institute continues to be run very smoothly by Trevor Hince and his small team of Naomi King and Jacky Wilson. They all contribute to making the lives of Trustees and Committee Members very straightforward for which we thank them sincerely. Sadly, Trevor Hince has indicated that he wishes to retire from the post of Director next year, or soon after, so we shall begin the daunting task of finding his successor. He will be an almost impossible act to follow.

Institute Membership Three Prize Fellows, Dr Juan Burrone, MRC Centre for Developmental Neurobiology, King’s College London, Professor Andrew Jackson, MRC Human Genetics Unit, Western General Hospital and Dr Grant Stewart, CRUK Institute for Cancer Studies, University of Birmingham, who completed their fellowships in 2014, have been welcomed into Membership.

Financial Matters

It is very pleasing to be able to report a second year of strong financial growth, which saw further gains for the Institute’s investments such that they finished the year at £3 7. 296m. This is above the pre-financial crisis level of 200 7. However, this achievement is the greater because the decision was taken during the year to‘top-slice’ and bank the funds needed to cover, in full, the required 2015 expenditure (hence the high level o f ‘cash at bank’ shown in the Balance Sheet on page 25). This decision was taken on the advice of the Finance and Investment Committee who felt that it would be prudent to capitalise on the strong market performance in 2014 and safeguard future expenditure, given the uncertainty of future market returns and the patchy nature of the economic recovery. Thus, in 2014 the Institute was not only able to support four Prize Fellows (£800,000), expand the Summer Studentship scheme to twenty-five (£50,000) but also to guarantee at least this level of funding in 2015. The Institute’s operational costs remained low at £150,000, but investment management fees rose to £214,000 (a consequence of the strong performance of the portfolio). The Institute’s total expenditure for 2014 was £1.214m. The one area that saw an increase in costs was investment management, driven by the strong portfolio growth and the triggering of 6 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2014

‘performance fees ’ for one of our firms of advisors. However, it is a very comfortable position for the Chairman of a charity to be able to report increased expenditure on the key objec - tives and to know that we will be able to do so the following year; for this I am indebted to the Hon Treasurer and the Finance and Investment Committee for their wise counsel. Michael French and his colleagues on the Finance and Investment Committee have certainly served the Institute well, not only in their regular twice-yearly meetings with our current investment advisors, Partners Capital LLP and Cazenove Capital Management (Schroders), but also in their scrutiny of the Institute’s own finances and a willingness to maximise expenditure on science . I and all members of the Governing Body are extremely grateful to the ‘finance team ’ for their diligence and efforts and particularly to Michael French for explaining it all so clearly to u s! Last year I reported that the Institute had appointed new auditors, Kingston Smith LLP , and I am delighted that their first audit was‘trouble free’ and that they were able to make some very helpful suggestions – the Institute looks forward to an ongoing association with them. Further details on the Institute’s finances may be found on pages 20 and 21 and are summarised in the Statement of Financial Activities on page 24.

Scientific Activities

Scientific Advisory Committee With the increase in the number of applications, the work of the Scientific Advisory Committee in selecting the eventual Prize Fellows becomes even harder and the Institute is indebted to its members for their dedication. This year we were sorry to part with two members; Professor Mary Collins, after completing her six-year term, and Professor Kate Storey who, because of the pressure of her other commitments, had to step down. In their places the Institute is pleased to welcome Professors Corrine Houart (Kings College, London) and Colin Watts (University of Dundee) and hopes that they will enjoy their time on the SAC and gain satisfaction from helping the careers of young researchers. It was pleasing to see the Summer Studentship scheme extended to twenty-five recipients. This enables Lister Fellows and former Fellows to be able to offer places to out - standing students who then have the opportunity to experience research in a first-rate 7 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2014

laboratory. After the studentship is completed the Institute is sent both a scientific report and a personal statement on their experience by the student. In most cases it reinforces the student’s wish to go on to do research via PhD training, but in some it identifies that a career in research is not for them; both are satisfactory outcome s!

2014 Lister Research Prize Fellowship Winners The recipients of the 2014 Lister Research Prize Fellowships, who each received the award of £200,000, wer e:

Prize Winner Title of Research

Dr M Madan Babu Dynamics of tRNA abundance and the MRC Laboratory of regulation of protein expression levels Molecular Biology Cambridge

Dr Emmanuel Boucrot Mechanisms of cargo selection and vesicle University College formation in a novel pathway of London endocytosis

Dr Robert Ryan Molecular basis of chronic antibiotic- University of Dundee resistant biofilm infections: a potential path towards development of strategies for therapeutic intervention

Dr Melina Schuh Mechanisms of aneuploidy in human MRC Laboratory of oocytes Molecular Biology Cambridge

Current and Former Lister Prize Fellows The following have been awarded Lister Research Prize Fellowships since the inception of the Prize Fellowship scheme. This is an outstanding group of scientists and represents a major contribution to the well-being of UK biomedical researc h: 8 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2014

Fellow Title of Research Awarded

Dr Nina Balthasar Identifying the novel CREB coactivator TORC2's role in the 2007 University of Bristol hypothalamic pathways controlling energy homeostasis Dr Oliver Billker In search of the xanthurenic acid receptor of malaria 2004 The Wellcome Trust parasite s–a potential target for transmission control Sanger Institute Cambridge

Dr Nia Bryant Using yeast as a model system to understand the 2004 University of York insulin-dependent trafficking of GLUT4 in adipocytes

Dr Simon Bullock Mechanisms and neuronal functions of motor-driven 2008 MRC Laboratory of Molecular transport Biology, Cambridge

Dr Juan Burrone The role of neuronal activity during synapse formation 2009 Kings College London

Dr Vincenzo Costanzo The role of ATM and ATR in preventing genomic instability 2006 Cancer Research UK Clare Hall Laboratories Dr Victoria Cowling Regulation and function of the 7-methylguanosine cap 2011 University of Dundee

Professor Daniel Davis Nanotubes and synapses in immune cell communication 2005 Imperial College London Professor Simon Draper Development of next-generation broadly-neutralising 2013 The Jenner Institute vaccines against the blood stage infection of human Oxford malarias Professor Michael Eddleston Prevention of deaths from late respiratory failure in 2011 University of Edinburgh organo-phosphorus pesticide poisoning Professor Sherif El-Khamisy The repair of oxidative and topoisomerase induced 2013 University of Sheffield chromosomal strand breaks and human disease Professor Rebecca Fitzgerald Translational research programme for prevention of 2008 University of Cambridge oesophageal adenocarcinoma

Dr Holger Gerhardt Endothelial guidance in vascular patterning 2008 Cancer Research UK London Research Institute Continued overleaf

9 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2014

Fellow Title of Research Awarded

Dr Fiona Gribble Secretion of incretin hormones from the mouse 2006 University of Cambridge intestine Dr Andrew Jackson Cellular pathways determining human brain size 2009 University of Edinburgh Dr Josef Kittler Miro family proteins as regulators of synaptic bio- 2010 University College London energetics and a locus for mitochondrial dysfunction in neurological disease Dr Robert Klose Biochemical isolation and functional dissection of the 2011 University of Oxford CpG island proteome Dr David Komander Bacterial interference with the ubiquitin system 2012 MRC Laboratory of Molecular Biology Cambridge Professor Paul Lehner The role of HSP70 in MHC Class 1 mediated antigen 2004 University of Cambridge presentation in human dendritic cells Dr David Lyons Elucidating mechanisms of myelinated axon formation, 2012 University of Edinburgh function and repair using zebrafish Dr Juan Martin-Serrano Functional parallels between HIV-1 budding and the 2008 King’s College London last step of cell division Dr Robin May The molecular basis of latency and dissemination 2010 University of Birmingham during cryptococcosis Dr Akhilesh Reddy Peroxiredoxins and redox oscillations in the circadian 2012 University of Cambridge (24 hour) clockwork Dr Tatjana Sauka-Spengler Decoding gene regulatory circuits controlling 2013 Weatherall Institute of multipotency of neural crest Molecular Medicine, Oxford Professor Kenneth Smith Control of infection and autoimmunity by an 2007 University of Cambridge inhibitory Fc receptor Fc γR11b Dr Grant Stewart Investigating the role of the RIDDLE syndrome 2009 University of Birmingham gene in promoting repair of DNA damage Dr Anne Straube Microtubule-actin crosstalk in cell migration 2013 University of Warwick Professor Tomoyuki Tanaka Mechanisms of kinetochore-microtubule 2005 University of Dundee interaction Continued opposite

10 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2014

Fellow Title of Research Awarded

Dr Sarah Teichmann Decoding genetic switches in T helper cell differentiation 2010 The Wellcome Trust Sanger Institute and EMBL -EBI, Cambridge Professor Chris Thompson Identifying and characterising genes that control cell fate 2005 University of Manchester choice and social behaviour Professor Daan van Aalten Structural mechanisms and specificity of O-GlcNAc 2006 University of Dundee signalling in the eukaryotic cell Dr Fiona Wardle Transcriptional control of mesodermal cell differentiation 2007 Kings College London in vertebrates

Fellowship Activities

Once again the location of Christ’s College, Cambridge, the lovely autumn weather and most importantly the quality and enthusiasm of the speakers combined to provide a memorable Fellows’ meeting. The attendance was high and the delegates were provided with an out - standing and diverse set of presentations. This year, with four new Prize Fellows and one Prize Fellow who had been unable to present in a previous year, the morning’s programme belonged to the ‘new blood’ and they did the Institute prou d! The four Prize Fellows listed on page 8 were joined by Dr Akhilesh Reddy, and between them covered topics which ranged from the dynamics of tRNA abundance; a novel pathway for endocytosis; mecha - nisms of aneuploidy in humans; via targets for combating bacterial antibiotic resistance to the operation of circadian clocks. Whilst the science might have been diverse, what united the programme was the quality, depth of knowledge and enthusiasm of the speakers – here were young researchers‘on top of their gam e’. In the afternoon former Fellows showed that they had not been idle since winning Lister Fellowships, with Ken Smith giving a ‘tour de force’ talk on ‘Genomics, Immunity and the Biology of Clinical Outcome’ and Hilary Ashe a comprehensive and clear explanation of BMP signalling and its impact on development. The 2014 Special Lister Lecture was given by Professor Phillip Hawkins who had been a Fellow from 1988-1993 and in 2013 was elected as a Fellow of the Royal Society. Professor 11 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2014

Hawkins explained with incredible clarity the very complex area of signalling via P I3- kinases (P I3Ks). These kinases catalyse the phosphorylation of inositol phospholipids in the cell membrane, which then act as messengers to regulate many aspects of cellular function. Phillip Hawkins ’ latest research is shedding new light on the way in which the composition of the lipid backbone in the molecule might be regulated. As usual the lecture stimulated a wealth of questions and discussions. Following a Reception in the Fellows’ garden the meeting concluded with the presenta - tion of scrolls to the new Fellows and the Institute Dinner.

Conclusion

One of the most enjoyable parts of the Chairman’s role is travelling to institutions to hear the Prize Fellows give seminars in their home environment. This year Trevor Hince and I visited Oxford to hear talks by Simon Draper and Tatjana Sauka Spengler, and Sheffield for a presentation by Sherif El-Khamisy plus a tour of the Department of Molecular Biology and Biotechnology and its impressive facilities. This format was repeated at Warwick with a very enjoyable day both listening to Anne Straube’s talk but also touring the new Mechano- chemical Cell Biology Building and seeing demonstrations from several of Anne’s colleagues. All these events are unique, reflecting both the character of the speaker and that of their departments, each with their differing aspirations and local capabilities. What is common to all is the exceptionally high quality of the presentations, the high regard in which the Lister Prize Fellows are held by their colleagues and the undoubted impact which the receipt of the prize has had on their research. What is also pleasing is that the Lister Prize more often than not results in additional support, either in terms of facilities or funding, from the host institution. It can also bring academic advancement and it is very pleasing to be able to congratulate the following recent Prize Fellows on their awards o f‘Professorships’ – Simon Draper (Oxford), Michael Eddleston (Edinburgh), Rebecca Fitzgerald (Cambridge), Andrew Jackson (Edinburgh), Robert Klose (Oxford), Robin May (Birmingham) and Sherif El- Khamisy (Sheffield). I should like to express my own and the Institute’s thanks to the host institutions that have welcomed us to ‘presentation event s’ this year and extend this to all the institutions that house Lister Fellows for the support which they give them. By working 12 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2014

with these institutions, I think it is very obvious that the Lister Institute is indeed ‘nurturing the future leaders in biomedical research ’! At this point it is fitting that I pay tribute to Professor Patrick Maxwell and all the mem - bers of the Scientific Advisory Committee since it is eminently clear that they are doing an excellent job in selecting the very best individuals for the award of Lister Prizes. I must also thank all my colleagues on the Governing Body for all their hard work and support, not least for ensuring that we are now able to award at least four prizes each year. It is, however, clear to me that the Lister Institute is a ‘family’ and its strength comes from all its members, whether they be Fellows, Trustees, Committee members, Members of the Institute or Staff – it is a pleasure to be associated with you all and to all I owe my sincere thanks.

ALEX MARKHAM Chairman

The Institute’s Director Dr Trevor Hince and Professor Sir Alex Markham pay close attention to a demonstration at the University of Bradford.

13 The 2014 Annual Fellows’ Meeting at Christ’s College, Cambridge

Pictured on this page: Righ t (l-r): Professor Sir Alec Jeffreys and Professor Chris higgins, both Lister Fellows in the early 1980s Middle lef t: Professor Ilan Davis, Dr David Horowicz and Professor Kate Storey Middle righ t: Professor Paul Lehner and Dr Trevor Hince Botto m: Governor Mr Andrew Hutton talks with Dr Melina Schuh (left) and Dr Anne Straube

14 SAC member Professor Nick Lemoine and former Fellow Former SAC member Professor Mary Collins Professor Andrew Jackson enjoy a pre-dinner drink in the Master's Garden

Lunch and an opportunity to discuss the morning's talks

15 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2014

REPORT OF THE GOVERNING BODY for the year ended 31 December 2014

The Governing Body presents its Annual Report Appointment and Re-appointment of Trustees under the Charities Act 2011 together with the The Trustees are the fifteen members of the audited Financial Statements of the Charity for Governing Body of whom six are appointed by the year ended 31 December 2014. The Financial the members at the annual general meeting. Statements have been prepared in accordance A maximum of six further Trustees are appointed with the accounting policies set out in Note 1 by the Governing Body and there are currently (page 26) to the Financial Statements and comply four such appointees. One additional member is with the Companies Act 2006, the requirements Lord Iveagh’s representative, another is Professor of the Statement of Recommended Practice Sir Alec Jeffreys who was appointed to life- 2005 “Accounting and Reporting by Charities”, membership, and the final member, Professor and the documents governing the constitution Cheryll Tickle, is the representative of the Royal of the Charity. Society. Trustees, other than the two nominated representatives, Professor Sir Alec Jeffreys and REFERENCE AND ADMINISTRATIVE exceptionally those appointed by the Governing DETAILS Body, generally serve for a maximum of six years Reference and administrative information is set and a system of planned rotation is in place. out on pages 3 and 4 of this report. Currently two positions are deliberately being kept vacant. When considering appointment or Members of the Governing Body, Directors nomination for election as Trustees, the Govern - and Trustees ing Body has regard to the specialist skills The members of the Governing Body are, for needed. the purposes of company law, Directors of the Institute and, for the purposes of charity law, Induction and Training of Trustees Trustees of the Institute and throughout this New Trustees undergo induction sessions with report are collectively referred to as the Trustees. the Chairman, Treasurer and Director during Details of the Trustees serving throughout the which they will gain an understanding of the year, unless otherwise stated, are set out on Institute’s structure, activities, financial position page 3. and future strategies. Prior to appointment they will attend, as ‘observers’, one meeting of the STRUCTURE, GOVERNANCE AND Governing Body. New Trustees will also be made MANAGEMENT aware of their legal obligations with regard to charity and company law. In addition, new Constitution Trustees will be advised of appropriate literature The Institute is registered with the Charity and training courses. Commission for England and Wales (registration number 206271). It is incorporated and regis - Organisation tered in England and Wales under the The Institute is governed by its Governing Body Companies Act 2006 as a company limited by which is responsible for setting policies, autho - guarantee and not having a share capital rising actions on all significant operational issues (company number 34479). It is governed by its and ensuring legality and good practice. The Articles of Association and has charitable Governing Body meets formally twice a year. status. Specific authorities are delegated to two sub- 16 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2014

Committees in particular areas. The Scientific for all Governing Body and committee members Advisory Committee (see page 4 for member - as well as principal staff and operates a clear ship) has responsibility for the selection of the declaration of interests policy and procedures Lister Prize Fellows and the monitoring of their for all meetings. scientific activities, as well as providing scientific The principal risk facing the Institute lies in its and medical advice to the Governing Body as ability to maintain and protect the value in real required. The Finance and Investment Committee terms of its investments and to generate from (see page 4 for membership) has responsibility them on a long-term basis a consistently high for interaction with the Institute’s investment overall return. This risk is mitigated by the advisors, ensuring implementation of the Institute’s appointment of experienced invest - Institute’s investment policy and monitoring ment managers with a proven track record; by performance. It prepares and submits to the internal controls that allow close and regular Governing Body the annual budget, and subse - monitoring of their performance against bench - quently monitors performance against it. It also marks; by the Institute’s requirement of its advises the Governing Body, as required, on investment managers to re-tender periodically other financial and risk matters. and competitively for appointment – last review The routine management of the Institute’s October 2012, and by regular meetings that activities is undertaken by its Director, aided by formally review investment performance and the Administrator and the Accountant. All staff policy and include one-to-one presentations by work from home. the investment managers.

Risk Management Objectives and Activities The Trustees assess the risks facing the Institute The statutory Object of the Institute is to further and review the effectiveness of the controls to understanding and progress in preventive medi - monitor and mitigate against them. A Risk cine by promoting excellence in biomedical Management Register is maintained and formally research in the UK. reviewed annually by the Governing Body. When founded in 18 91, the Institute sought to The key controls used by the Institute includ e: achieve this objective by establishing a research institute specialising in the area o f ‘infections’ . Formal agendas for all Governing Body and their prevention by immunisation and other meetings means. It complemented the research activities . Strategic planning, budgeting and manage- ment accounting by the production and supply of materials such . Formal written policies as vaccines and toxins. . Clear authorisation and approval levels The Institute continued in this mode until the . Regular review of Fellows’ scientific reports late 1970s when increasing financial and regula - tory pressures caused the cessation of these The specific risk of bribery associated with any activities. Proceeds from the resultant sale of of the Institute’s activities has been reviewed land and buildings created the investment funds and clear policies and procedures have been from which present-day activities are financed; developed and communicated to all Trustees, at 31 December 2014 these funds stood at staff and Members. £3 7.296m. From the 1980s the Institute has The Institute maintains a‘Register of Interests’ pursued its objective by the provision of grant 17 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2014

funding to facilitate the research and careers of Each Prize Fellowship provides £200,000 which high quality individuals working in areas of bio - may be spent over five years on the recipient’s medicine relevant to preventive medicine. It research, although the funds are provided to the has done this because it believes that the acqui - host institution at the commencement of the sition and advancement of knowledge is crucial award. to the understanding of health and disease and Twenty-five Summer Studentships were that research to achieve this is driven forward by awarded in 2014, each is a £2,000 student bursary high quality individuals and their supporting and is paid to the host institution at the com - staff. mencement of the award for the support of the student for up to a ten-week period. Principal Activities The Institute maintained its commitment to In pursuance of this objective, during 2014 the fostering scientific interchange and collabora - Institute awarded four new Prize Fellowships. tion within the Fellowship by holding its 30th In addition, the Institute has continued its Annual Research Fellowship meeting at Christ’s Summer Studentship scheme which enables up College, Cambridge. to twenty- five undergraduates per year to work with Lister Fellows or former Fellows in order to Public Benefit gain experience of biomedical research with In so far as the statutory objectives, aims and the hope that they might consider it as a career. activities of The Lister Institute of Preventive Medicine are to further understanding in pre - Achievement and Performance ventive medicine by promoting biomedical The Scientific Advisory Committee has monitored research as set out on page 17 of this Report, the performance of the current eighteen Lister the Trustees are satisfied that they fully comply Prize Fellows, through detailed review of the with the duty in section 17 of the Charities Act annual reports on their research which include 2011, namely to have due regard to the public details of all publications and presentations. The benefit guidance published by the Charity Scientific Advisory Committee has reported to Commission. Trustees that it is of the view that all Fellows are The public benefit of the Institute’s grant- undertaking high quality research and producing making is clearly identifiable in the‘Achievement new knowledge that will contribute significantly and Performance’ paragraphs above and in the to our understanding of disease, its causes, list of Research Prize Fellows together with their treatment and prevention. The reports of the areas of research on pages 8 to 11 of the Chair - research undertaken by the Summer Students man’s report. All Lister Fellows are actively have also been reviewed and found to be very encouraged, where appropriate, to develop their satisfactory. research findings for potential public benefit Four Lister Prize Fellowships were awarded and the Scientific Advisory Committee has in 2014 to Drs Babu, Boucrot, Ryan and Schuh regard to this when reviewing their research from a field of 84 initial applicants, following reports. The Lister Institute therefore benefits extensive scientific review of their applications the public or a sector of it without imposing any and final interview by the Scientific Advisory restrictions. Applications from individuals are Committee. (More details of the Prize Fellows accepted only when demonstrably consistent and their research are provided on page 8). with the charitable objectives of the Institute. 18 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2014

Impact and in accordance with the Institute’s overarch - The impact of the activities of a medical research ing“Investment Policy Statement” (IPS) which charity can be measured at many levels ranging states the overall investment objective and sets from the growth of knowledge to direct patient/ the investment return objectives, the risk para- public benefit. Often the transition from the meters, the performance measures and review former to the latter may take many years and procedures for the portfolio. The Institute’s IPS the involvement of several organisations. The was revised in the autumn of 2013 and specific Institute requires that the results of the research versions agreed for each of the investment it supports are published and disseminated; managers to reflect their individual investment that, where appropriate, significant intellectual approaches. The Institute’s IPS is reviewed property is protected via patents; and that its annually. The investment managers are informed commercial development is encouraged. at the beginning of the financial year of the Several biotechnology companies have been Institute’s likely cash requirements, both in formed around the findings of Institute-spon - terms of the amount and the timing of any sored research and there are several interactions draw-down, and are asked to keep in an income with large pharmaceutical companies. A prime or cash account sufficient funds to meet them. exam ple of the impact of research is DNA finger - The Institute has in place an ethical investment printing, which was discovered by Sir Alec policy which does not permit direct investment Jeffries when a Lister Fellow and has become an in tobacco or tobacco-related companies. indelible part of society, helping to prove The Institute’s overall financial return objec - innocence or guilt in criminal cases, resolving tive is to preserve and if possible enhance the immigration arguments and clarifying paternity. purchasing power of its portfolio assets, net of This year the Institute entered into two more costs and approved withdrawals, over rolling ‘research exploitation’ agreements with the host three-year periods. This goal is synonymous institutions of Prize Fellows; an essential first with the pursuit of a time-weighted net return step in moving research findings towards help on portfolio assets that equals and if possible for patients and the public. exceeds cost inflation as measured by the UK Consumer Price Index plus the Institute’s long- Investment Policy and Performance term spending rate of 3-4% measured over The Institute’s investment objective is to develop ocorresponding three-year periods. and maintain its financial resources through the The performance of the investment portfolio selection of investments, consistent with an is reviewed by the Finance and Investment acceptable level of risk. Committee, which had two meetings in the year The Institute’s investment portfolio is split with the investment advisors to review perform- between Cazenove Capital Management and ance, liquidity within the portfolio, and the due Partners Capital LLP who both operate under diligence undertaken on potential new invest - mandates agreed in advance with the Finance ment vehicles. In addition the Institute receives and Investment Committee. These mandates set detailed quarterly valuation and transaction out an overall target asset allocation with allow - reports. In a year that saw strong stock market able ranges for each category of asset. growth the fund has risen from £3 7. 250m to Both investment managers invest on a total £3 7. 296m, despite withdrawing both the funds returns basis through a variety of pooled funds required for 2014 (£1.000m) and also those for 19 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2014

2015 (£ 1. 000m). The decision to withdraw and current and future commitments as they fall bank the 2015 cash requirement was based due and ensure that adequate funds remain both on the strong growth of the portfolio but available to enable them to make awards in also concerns about future market volatility and perpetuity. performance. The adequacy of the level of reserves and the More details of the Institute’s activities are set continuing appropriateness of the policy are out in the Chairman’s Report on pages 5 to 13. reviewed on an annual basis by the Trustees. As the current level of investments now just exceeds the high of 2007, they feel satisfied FINANCIAL REVIEW with the policy over the long-term and the ability of the Institute to maintain appropriate Allocation of Resources levels of activity in the short-term. The Institute, which does not seek to raise funds from the public, depends primarily on investment Plans for the Future returns to meet its pension provision payments, The Institute’s future policy is to continue to administrative expenditure and expenditure in pursue its current objectives. It will therefore furtherance of the Charity’s objectives. The total maintain the Prize Fellowship scheme which it return on investments for the year was realise d/ sees as a funding priority. The Summer Student- unrealised gains of £1 .628m and investment ship scheme will also be maintained together income of £59 7,000. with the opportunity for schools to receive talks The resources expended totalled £1 .214m of from the Institute’s Fellowship on science and which £973 ,000 were resources expended for biomedical subjects as part of an ‘outreach’ the Institute’s charitable activities. programme. As the Prize Fellowships are fixed sum awards, expenditure can be regulated by altering the Statement of Trustee Responsibilities number and/or value of prizes awarded each The Trustees (who are also directors of The Lister year. This will be done in light of the income Institute of Preventive Medicine for the purposes and realised/unrealised gains generated from of company law) are responsible for preparing our investment portfolio. This will be sensitive the Trustees’ Annual Report and the financial to the performance of our investments and will statements in accordance with applicable law be reviewed annually before fresh commitments and United Kingdom Accounting Standards are made. In the year, due to the substantial (United Kingdom Generally Accepted Accounting increase in the value of the investment portfolio Practice). and good returns, the Trustees felt able to Company law requires the Trustees to prepare award four Prizes and to maintain their value at financial statements for each financial year £200,000 each. The Summer Studentship scheme which give a true and fair view of the state of at a total cost of £50,000 can be reviewed each affairs of the charitable company and of the in - year with regard to both number and value. coming resources and application of resources, including the income and expenditure, of the Reserves Policy charitable company for that period. In preparing The policy of the Trustees is to maintain adequate these financial statements, the Trustees are financial resources to provide income to meet required t o: 20 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2014

. select suitable accounting policies and In so far as the Trustees are awar e: then apply them consistently; . there is no relevant audit information of . observe the methods and principles in the which the charitable company’s Auditor is Charities SORP; unaware; . make judgments and estimates that are . the Trustees have taken all steps that they reasonable and prudent; ought to have taken to make themselves . state whether applicable UK Accounting aware of any relevant audit information and Standards have been followed, subject to any to establish that the Auditor is aware of that material depar tures disclosed and explained information. in the financial statements; and The Trustees are responsible for the main- . prepare the financial statements on the going tenance and integrity of the corporate and concern basis unless it is inappropriate to financial information included on the charitable presume that the charitable company will company’s website. Legislation in the United continue in business. Kingdom governing the preparation and The Trustees are responsible for keeping dissemination of financial statements may differ proper accounting records that disclose with from legislation in other jurisdictions. reasonable accuracy at any time the financial position of the charitable company and enable By Order of the Governing Body them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of ALEX F MARKHAM MICHAEL FRENCH the charitable company and hence for taking Chairman Treasurer reasonable steps for the prevention and detection of fraud and other irregularities. 17 June 2015

21 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2014

INDEPENDENT AUDITORS’ REPORT to the Members of The Lister Instituite of Preventive Medicine

We have audited the financial statements of ments sufficient to give reasonable assurance The Lister Institute of Preventive Medicine for that the financial statements are free from the year ended 31 December 2014 which com - material misstatement, whether caused by fraud prise the Statement of Financial Activities, the or error. This includes an assessment of: Balance Sheet and the related notes. The finan - whether the accounting policies are appropriate cial reporting framework that has been applied to the charitable company’ s circumstances and in their preparation is applicable law and United have been consistently applied and adequately Kingdom Accounting Standards (United King - disclosed; the reasonableness of significant dom Generally Accepted Accounting Practice). accounting estimates made by the Trustees; and This report is made solely to the charitable the overall presentation of the financial state - company's members, as a body, in accordance ments. In addition we read all the financial and with Chapter 3 of Part 16 of the Companies Act non-financial information in the Annual Report 2006. Our audit work has been undertaken so to identify material inconsistencies with the that we might state to the company’s members audited financial statements and to identify any those matters we are required to state to them information that is apparently materially in- in an auditor’s report and for no other purpose. correct based on, or materially inconsistent To the fullest extent permitted by law, we do not with, the knowledge acquired by us in the accept or assume responsibility to any party course of performing the audit. If we become other than the charitable company and charita - aware of any apparent material misstatements ble company’s members as a body, for our audit or inconsistencies we consider the implications work, for this report, or for the opinions we have for our report. formed. Opinion on financial statements Respective responsibilities of Trustees and In our opinion the financial statements: Auditor . give a true and fair view of the state of the As explained more fully in the Trustees’ Respon - charitable company’s affairs as at sibilities Statement, the Trustees (who are also 31 December 2014 and of its incoming the directors of the charitable company for the resources and applica tion of resources, purposes of company law) are responsible for including its income andexpenditure, for the the preparation of the financial statements and year then ended; for being satisfied that they give a true and fair . have been properly prepared in accordance view. Our responsibility is to audit and express with United Kingdom Generally Accepted an opinion on the financial statements in accor - Accounting Practice; and dance with applicable law and International . have been prepared in accordance with the Standards on Audit ing (UK and Ireland). Those requirements of the Companies Act 2006. standards require us to comply with the Audit - ing Practices Board’s (APB’s) Ethical Standards Opinion on other matter prescribed by the for Auditors. Companies Act 2006 In our opinion the information given in the Scope of the audit of the financial statements Trustees’ Annual Report for the financial year for An audit involves obtaining evidence about the which the financial statements are prepared is amounts and disclosures in the financial state - consistent with the financial statements.

22 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2014

Matters on which we are required to report by . the Trustees were not entitled to prepare the exception financial statements in accordance with the We have nothing to report in respect of the small companies regime and take advantage follow ing matters where the Companies Act 2006 of the small companies exemption in preparing requires us to report to you if, in our opinion: the Trustees’ Annual Report and from preparing . adequate accounting records have not been a Strategic Report. kept or returns adequate for our audit have not been received from branches not visited Nicholas Brooks (Senior Statutory Auditor) by us; or for and on behalf of Kingston Smith LLP, . the financial statements are not in agreement Statutory Auditor with the accounting records and returns; or Devonshire House . certain disclosures of Trustees’ remuneration 60 Goswell Road specified by law are not made; or London EC1M 7AD . we have not received all the information and explanations we require for our audit; or 17 June 2015

23 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2014

STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2014

Notes 2014 2013 £’000 £’000 Incoming resources Incoming resource from generated funds: Investment income 2 597 490 Other incoming resources 3 48 9 Total incoming resources 645 499

Resources expended Costs of generating funds: Investment management costs 4 (214) (180) Charitable Activities: Prizes & Summer Studentships 6 (973) (964) Governance costs 8 (27) (25) Total resources expended (1,214) (1,169)

Net expenditure (569) (670)

Gain s on investment assets 1,628 3,972 Pension actuarial losses 13 (14) (10) Net movement in funds 1,045 3,292

Total funds brought forward 37,293 34,001 Total funds carried forward 38,338 37,293

All items in the above Statement of Financial Activities relate to continuing operations for both years. The Institute has no other recognised gains and losses other than as stated above and hence no separate income and expenditure statement has been shown.

The notes set out on pages 26 to 30 form part of these financial statements.

24 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2014

BALANCE SHEET as at 31 December 2014 Company no. 34479

Notes 2014 2013 £'000 £’000 Fixed assets Investments 9 37,296 37,250 Total fixed assets 37,296 37,250

Current asset s Debtors 10 48 8 Cash at bank and in hand 11 1,441 650 Total current assets 1,489 658

Current liabilities Creditor s: amounts falling due within one year 12 (263) (429) Net current asset s 1,226 229

Total assets less current liabilities 38,522 37,479

Creditor s: amounts falling due after more than one year Pension provision 13 (184) (186) Net assets 38,338 37,293

represented by Unrestricted funds 38,338 37,293 Total charity funds 38,338 37,293

The Trustees have taken advantage of the exemptions conferred by the Companies Act 2006, on the grounds that the Institute is entitled to the benefit of those exemptions as a small company.

These financial statements were approved by the Governing Body on 17 June 2015.

ALEX F MARKHAM Members of the MICHAEL FRENCH Governing Body

The notes set out on pages 26 to 30 form part of these financial statements.

25 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2014

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2014

1 PRINCIPAL ACCOUNTING POLICIES Basis of preparation The Financial Statements have been prepared in accordance with the Statement of Recommended Practice, Accounting and Reporting by Charities (SORP 2005), applicable accounting standards and the Companies Act 2006. The Financial Statements are prepared in accordance with the historical cost convention modified by the revaluation of investments.The principal accounting policies adopted in the preparation of the Financial Statements are as follows: Incoming resources All incoming resources are accounted for on a receivable basis. Prizes and grants The cost of Research Prize Fellowships is charged in the year awarded. Resources expended The costs of generating funds include those fees payable to the Institute’s investment fund managers for the management of the Institute’s investment portfolio.These are accounted for on an accruals basis. Charitable expenditure comprises all expenditure directly relating to the objects of the charity and is accounted for on an accruals basis.The allocation of expenditure between governance and management, administration and support costs is reviewed on an annual basis to ensure the allocation is appropriate. Indirect costs are generally treated as falling into the latter category with the exception of a proportion of salary and related costs which have been classified as governance costs. Governance costs In addition to auditor’s remuneration, governance costs comprise the proportion of staff costs associated with the time spent on the preparation of the statutory accounts and other governance issues together with honoraria remuneration provided to members of the Institute’s Scientific Advisory Committee for their duties in selecting the Prize Fellows. Supplementary pensions and staff pensions An estimate of the full provision is made in the Financial Statements for the costs of future supplementary payments.The provision and charge to income are reviewed annually by theTrustees in the knowledge that the number of persons receiving the supplementary pensions will not increase. The pension costs are assessed in accordance with actuarial advice and these costs are accounted for in accordance with FRS17. Existing employees participate in a defined contribution scheme, the costs of which are expensed as incurred. These disclosures are made in accordance with FRS17. Investments Investments are shown at market value in the balance sheet. Changes in the market value are included in the Statement of Financial Activities as realised and unrealised investment gains or losses in the year in which they arise. Investments denominated in foreign currencies are valued at year-end rates of exchange. Cash flow statement The Charity has taken advantage of the exemption provided by Financial Reporting Standard No 1 for small charities from the obligation to prepare a cash flow statement. Taxation The organisation is a registered charity and has obtained exemptions from taxation under Part 11, Chapter 3 of the Corporation Tax Act 2010. This exemption will remain as long as income is compatible with that section and expenditure is applied to charitable purposes only.

26 2 INVESTMENT INCOME 20 14 20 13 £'000 £’000 Income from fixed asset investments 594 489 Bank interest receivable 3 1 597 490

3 OTHER INCOMING RESOURCES 2014 20 13 £'000 £’000 Royalty income 48 9

Royalty income is earned from Cancer Research Technology as a result of Revenue sharing related to Mammalian Cell research studies.

4 COSTS OF GENERATING FUNDS 20 14 20 13 £'000 £’000 Partners Capital LLP 122 93 Cazenove Capital Management 92 87 Total investment management fees 214 180

Investment management fees referred to here are those accrued fees relating to the management of the Institute's investment portfolios in 2014.

5 GOVERNING BODY AND STAFF COSTS Emoluments of members of the Governing Body No member of the Governing Body received any emoluments in respect of services to the Institute during the year (2013: nil) . Travel expenses of £1,287 were paid relating to the claims of six members in connection with their attendance at meetings (2013: £1,366, seven members) . Members of the Governing Body who are also members of the Scientific Advisory Committee receive remuneration in relation to their services to the committee. An honorarium of £1,500 (2013: £1,500) was paid to one of the members, via the member’s University, in 2014. Employee information The average number of persons employed by the Institute during the year was three (2013: three) , two of whom are part-time. All were employed in an administrative and support capacity. No employees earn over £60k p.a. (2013: nil) . Staff costs 20 14 20 13 £’000 £’000 Gross salaries 78 76 Pension contributions 3 3 Employer’s national insurance 8 8 89 87 The salary costs are allocated under governance where related to statutory accounts preparation, the balance being reported within charitable activities.

27 6 PRIZES & SUMMER STUDENTSHIPS 20 14 20 13 £’000 £’000 Prize awards 800 800 Prize award – unspent element refunded 0 (1) Summer Studentship payments 50 42 Support costs (see Note 7) 45 47 Salaries (see Note 5) 78 76 973 964

7 SUPPORT COSTS 20 14 20 13 £’000 £’000 Office expenses 9 8 Travel expenses 3 4 Professional fees 3 5 Honoraria and events 21 20 Pension costs (see Note 13) 9 10 45 47 These costs are all considered to be costs to support resources expended on charitable activities.

8 GOVERNANCE COSTS 20 14 20 13 £’000 £’000 Auditors’ remuneration 10 10 Staff costs (see Note 5) 11 11 Honoraria and events 6 4 27 25

No non-audit services were provided by the auditors during the year (2013: none ).

28 9 INVESTMENTS

Listed investments are valued at middle market quotations ruling at the year-end 20 14 20 13 £’000 £’000 Market value at beginning of year 37,250 33,965 Purchases during the year at cost 7,981 9,095 Proceeds of sales during the year (9,360) (8,579) Reinvested income for the year 418 310 Movement in un-invested cash 1,379 (513) Cash withdrawn (2,000) (1,000) Net change in market value 1,628 3,972 Market value at year-end 37,296 37,250

The portfolio’s asset allocation was as follow s: 20 14 20 13 £’000 £’000 UK investments Equities 7,569 9,042 Fixed interest 2,482 2,397 Other (including private equity, property, commodities, alternatives and inflation-linked bonds 3,862 3,328 Cash 512 586 Total UK investments 14,425 15,353

Non-UK investments Equities 15,461 14,281 Other (including private equity, property, commodities and alternatives) 6,538 7,182 Cash 872 434 Total non-UK investments 22,871 21,897

Total 37,296 37,250

At 31 December 20 14 no single shareholding exceeded 5% of the total value of investments (2013: none) . Historical cost related to the closing position of 2014 was £27.6m (2013: £27.1m) .

10 DEBTORS 2014 2013 £'000 £'000 Accrued income 48 8

29 11 CASH 2014 20 13 £'000 £’000 Cash at bank 1,441 650

12 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2014 20 13 £'000 £’000 Taxation and social security 3 3 Accruals and deferred expenditure 260 426 Total creditors falling due within one year 263 429

13 PROVISION FOR LIABILITIES AND CHARGES This represents a provision for future supplementary pension payments, in respect of ex-employees, based on their salary and length of service. The pensions are unfunded, with payments made out of the Institute’s funds as they fall due. Movements in the pension provision during the year were as belo w: 20 14 20 13 £'000 £’000 Liability at beginning of period 186 191 Plus interest cost 9 10 Plus actuarial gains and losses 14 10 Benefits paid (25) (25) Liability at end of period 184 186

The tables below state the FRS17 actuarial assumptions used to estimate the pension provision. Principal actuarial assumptions Valuation at 31 December 2014 20 14 2013 Rate of increase to pensions in payment 3.0% 3.0% Rate used to discount scheme liabilities 5.0% 5.0%

The post-retirement mortality assumption uses the PCA00 base tables (year of birth) with improvements equal to medium cohort with a 1% minimum.

14 RELATED PARTY TRANSACTIONS

There were no related party transactions in the year (201 3: none) .

30 Designed and produced by Alec Just Print and Design Aston Clinton Bucks HP22 5EE The Lister Institute of Preventive Medicine Nu rturing the future leaders in biomedical research

ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31 December 2015

The Lister Institute of Preventive Medicine is a company limited by guarantee (England 34479) and a registered charity (206271) The Institute was founded in 1891 and for the next 80 years played a vital role in the development of the laboratory aspects of preventive medicine as an independent research institute in the UK.

Financial pressures in the 1970s led to the closure of the research and production facilities and the conversion of the Lister Institute into a highly successful trust awarding prestigious Research Fellowships from 1982 which in 2003, again because of financial pressures, were revised to become Prize Fellowships.

The cover portrait of Lord Lister reproduced by courtesy of the Royal Veterinary College The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2015

LEGAL AND ADMINISTRATIVE INFORMATION for the year ended 31 December 2015

THE GOVERNING BODY Professor Sir Alex Markham, DSc, FRCP, FRCPath, FMedSci, Chairman Mr Michael French, BS c(Eng), FCA, Hon Treasurer Professor Judith Armitage, BSc, PhD, FRS (Appointed 4 September 2015) Professor Wendy Bickmore, BA, PhD, FMedSci, FRSE Professor Sir Adrian P Bird, CBE, FRS, FRSE (Appointed 4 September 2015) Professor Dame Kay Davies, CBE, DBE, MA, DPhil, FMedSci, FRCP(hon), FRCPath, FRS (Until 4 September 2015) Professor Rebecca Fitzgerald, MD, FRCP, FMedSci (Appointed 4 September 2015) Hon Rory M B Guinness Professor Douglas Higgs, MBBS, MRCPath, DSc, FRCP, FRCPath, FRS Mr Andrew Hutton, MA, CFA Professor Sir Alec J Jeffreys, DPhil, FMedSci, FRS Professor Patrick Maxwell, FRCP, FMedSci Professor Tony Minson, PhD, FMedSci (Until 4 September 2015) Mr Matthew Pintus, BA Professor Cheryll A Tickle, CBE, FRSE, FMedSci, FRS

SENIOR MANAGEMENT Secretary and Directo r: Dr Trevor A Hince, PhD (Until 4 September 2015) Secretary and Directo r: Ms Kate Law (Appointed 4 September 2015)

Business Address Auditors PO Box 1083 Kingston Smith LLP Bushey Devonshire House Hertfordshire WD23 9AG 60 Goswell Road London EC1M 7AD Solicitors Macfarlanes Registered Office 20 Cursitor Street Macfarlanes London EC4A 1LT 10 Norwich Street London EC4A 1BD Bankers Investment Advisors Messrs Coutts & Co Cazenove Capital Management St Martins Office 12 Moorgate 440 Strand London EC2R 6DA London WC2R 0QS Partners Capital LLP 5 Young Street Websit e: www.lister -institute.org.uk London W8 5EH Telephon e: 01923 801886 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2015

LEGAL AND ADMINISTRATIVE INFORMATION for the year ended 31 December 2015

THE SCIENTIFIC ADVISORY COMMITTEE Professor Patrick Maxwell, FRCP, FMedSci, Chairman Dr Ian Adams, BSc, PhD Professor Jon Cohen, FRCP, FMedSci Professor Cyrus Cooper, OBE, MA, DM, FRCP, FFPH, FMedSci (Appointed 4 September 2015) Professor William Deakin, PhD, FRCPsych, FMedSci Professor Annette C Dolphin, PhD Professor David Holden, FMedSci, FRS Professor Corinne Houart, PhD Professor John Iredale, FRCP, FMedSci, FRSE Professor Nick Lemoine, MD, PhD, FRCPath, FMedSci Professor Jonathan Waltho, BSc, PhD Professor Colin Watts, FRS, FRSE, FMedSci

Secretar y: Dr Trevor A Hince, PhD (Until 4 September 2015) Secretar y: Ms Kate Law (Appointed 4 September 2015)

THE FINANCE AND INVESTMENT COMMITTEE Mr Michael French, BSc (Eng), FCA, Chairman Professor Judith Armitage, BSc, PhD, FRS (Appointed 4 September 2015) Hon Rory M B Guinness Mr Andrew Hutton, MA, CFA Professor Sir Alex Markham, DSc, FRCP, FRCPath, FMedSci Professor Tony Minson, PhD, FMedSci (Until 4 September 2015) Mr Matthew Pintus, BA

Secretar y: Dr Trevor A Hince, PhD (Until 4 September 2015) Secretar y: Ms Kate Law (Appointed 4 September 2015) The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2015

CHAIRMAN’S ANNUAL REPORT for the year ended 31 December 2015

THE YEAR 2015 saw a small but continued improvement in the Institute’s finances with a rise in the value of our investment portfolio to just over £38.5m. Against a background of increasingly volatile markets, the Governing Body endorsed a proposal from the Finance and Investment Committee to set aside a secure fund of £5m, thereby ensuring that the Lister Institute can definitely award at least five prizes every year, for the next five years. The Governing Body has met twice during the year with our new members already contributing substantially to our discussions, whilst the Charity’s two sub- committees have overseen their areas of responsibility with their usual efficiency. On the research front, the number of applications (90) for the Prize Fellowship is at its highest ever level. Lister Institute Fellows and former Fellows continued to undertake excellent research, publish high-impact papers and gain academic advancement on many fronts. Of course, the Institute appreciates that it cannot take sole credit for these achievements, since its Fellows will receive personal support and funding from many other agencies. My visits to Host Institutions and discussions with Fellows and Members of the Lister Institute give me great confi - dence that the Lister Institute Prize is still seen as a highly prestigious award, with the flexibility that it offers its greatest strength.

Governing Body and Administrative Matters

The Governing Body met once in April and then before the start of the September Fellows’ meeting in Cambridge. As ever, I must pay tribute to the quality and dedication of its mem - bers and the speed and clarity with which they respond to Lister Institute matters. Turnover amongst the trustees of a charity is necessary, since it brings new individuals with a fresh perspective to the oversight of the organisation. Parting company with those members who have served the Charity for many years is, however, a sad moment. This year we were sorry to bid farewell to two Governing Body members, Professors Tony Minson and Dame Kay Davies. Prof Minson had been a member of the Governing Body since 2009 and was also an invaluable member of the Finance and Investment Committee. Dame Kay joined the Governing Body in 2011 and we were very sorry to lose her services early because of pressure from other commitments. The Governing Body devoted considerable thought and discussion to potential replacements. Two individuals received universal support and I am 5 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2015

delighted to report that Professor Judy Armitage FRS (a previous Lister Institute Fellow and now director of the Oxford University Centre for Integrative Systems Biology) and Professor Sir Adrian Bird CBE, FRS, FRSE (Buchanan Professor of Genetics at the University of Edinburgh) agreed to join the Governing Body. Judy has also kindly agreed to serve on the Finance and Investment Committee, where her financial acumen in relation to science and research will be greatly valued. I am extremely sad to report the death of Professor Richard Perham FRS , who was a member of the Lister Institute’s Scientific Advisory Committee from 1993-98 and then its Chairman (and a member of the Governing Body) from 2000-2006. Professor Perham had an extremely distinguished career and made many significant contributions to biomedical research. He was considered one of the world’s most gifted biochemists and was an early pioneer in the important field of science that is today called synthetic biology. He was a much-admired Master of St John’s College Cambridge, his own alma mater . For many years, the Institute has benefitted from a small administrative team ably led by Dr Trevor Hince, supported by Naomi King and Jacky Wilson. Together, they make the tasks of the Governing Body, Scientific Advisory Committee and Finance and Investment Committee that much easier and my thanks go to them on behalf of all these Committees. As I indicated in my last report, Trevor had decided that he wished to retire in 2015 and, with some reluctance on my part, the search began for a replacement. Trevor was appointed as Director of the Lister Institute in 2004 and, since that time, has ably supported the Institute and two chairmen, Dame Bridget Ogilvie and myself. He has been an outstanding leader who has effectively steered the Institute through many challenges. He has left us at a time when the Lister Institute is on a firm financial footing and has an exciting future ahead. I am delighted that Trevor has accepted an invitation to become a Member of the Lister Institute thus ensuring he will maintain his relationship with the Charity. His replacement, Kate Law, is an experienced scientific administrator, having spent a significant proportion of her career with Cancer Research UK. She retired from that organisation in 2015 after a number of years as Director of Clinical and Population Research for the Charity. She has extensive experience of peer review, management of committees and research funding, and is excited to become a part of the Lister Institute ‘famil y’.

Institute Membership One former Fellow, Dr Sarah Teichmann, who completed her Fellowship in 2015 has been welcomed into the Lister Institute Membership. As I have already reported, Dr Trevor Hince has also accepted an invitation to become a Member of the Lister Institute. 6 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2015

Financial Matters 2015 marked a specific change in our planning for funding of the Lister Institute Prize Fellowships. Although the Institute’s finances are in a relatively strong position, our concerns about market volatility meant that this was not certain to continue. As a result, the Treasurer made a proposal to the Governing Body to withdraw £5m from the general portfolio (£2.5m each from Cazenove and Partners Capital) and establish a separate, low-risk, liquid bond account (held by Cazenove). This ensures that 5 Fellowships can be awarded each year for the next 5 years, irrespective of short term market fluctuations. This proposal was endorsed by the Governing Body at its meeting in April 2015. Thus, in 2015, the Institute was again able to fund five Prize Fellows (£1,000,000) and twenty-five Summer Studentships (£50,000). The Institute’s operational costs remained low at £174,000, with investment fees remaining steady at £238,000. At a time when investment returns have fallen and are expected to remain low for the foreseeable future, the Finance and Investment Committee has formally questioned the fee structures levied by our investment managers. To ensure that it receives value for money from the additional costs incurred as a result of using active rather than passive managers, the Institute is now requiring our two managers to report formally on the added value that they generate. The Institute’s total expenditure for 2015 was £1.462m. Over the 12 months to December 2015 Cazenove returned 2.4% and Partners Capital 4.7%. The Lister Institute continues to meet regularly with our investment advisors (Partners Capital and Cazenove), and also took the opportunity to review its Investment Policy State - ment (IPS), which both sets out our broad investment requirements and gives the detailed parameters for each of the advisors. It is fitting that, periodically, we hold a more detailed review of the suitability of our investment partners and this is scheduled for 2017. As always, the Lister Institute is indebted to our Treasurer, Michael French and all the members of the Finance and Investment Committee. I should like to thank them very much indeed for all their hard work and oversight, which provides tremendous reassurance to me as Chairman. It is pleasing to report that the auditors, Kingston Smith, raised no significant issues with respect to the accounts. Further details on the Institute’s finances may be found on pages 21-23 and are sum - marised in the Statement of Financial Activities on page 26. Scientific Activities Scientific Advisory Committee The work of the Scientific Advisory Committee (SAC) in selecting the Prize Fellows is at the 7 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2015

heart of the Institute’s activities. This year the SAC was confronted with the daunting task of selecting just five Prize Fellows from a large field of 90 strong applicants, the highest number of applications to date. The process proceeds by an initial screening and scoring by SAC members, to arrive at a long-list. These candidates were then further evaluated by the SAC, this time with the help of reviews from international experts, to arrive at a short-list of eleven candidates who were then interviewed by the Committee. As the selection process proceeds, the standards are very high and coupled with the very diverse fields of research represented, the task of selecting the‘winners’ is extremely difficult— it is a tribute to SAC members and their Chairman, Professor Patrick Maxwell, that each year they identify some truly excep - tional young researcher—and this year was no different. The excellence of the winners (three women and two men) was made clear to the whole Institute when the new Prize Fellows spoke about their research at the Fellows’ meeting. Both the Institute and I are indebted to Patrick Maxwell and his team for all their hard work and excellent choices. As with all Institute committees there is planned turnover in the membership of the SAC and this year we are delighted to have recruited one new member. Professor Cyrus Cooper OBE is Professor of Rheumatology, Director of the MRC Lifecourse Epidemiology Unit, Vice-Dean of the Faculty of Medicine at the University of Southampton and Professor of Epidemiology at the Nuffield Department of Orthopaedics, Rheumatology and Musculo- skeletal Sciences, University of Oxford. I very much hope that Professor Cooper will enjoy his time on the SAC and gain satisfaction from helping the careers of young researchers in this way. It was pleasing to see the Summer Studentship scheme strongly endorsed by the Fellowship and continuing to support twenty-five recipients. The scheme enables Lister Institute Fellows and former Fellows to offer places to outstanding undergraduate students who then have the opportunity to experience research in a first-rate laboratory. After the student ship is completed the Institute is sent both a scientific report and a personal state - ment on their experience by the student. In most cases it reinforces the student’s wish to go on to do research via PhD training, but in some it identifies that a career in research is not for them. Although both are satisfactory outcomes, we do rather prefer the forme r!

* * * 2015 Lister Institute Research Prize Fellowship Winners The recipients of the 2015 Lister Institute Research Prize Fellowships, who each received the award of £200,000, wer e: 8 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2015

Prize Winner Title of Research

Dr Agnieszka Gambus Identification and characterisation of Mcm7 University of Birmingham ubiquitin ligase

Dr Ragnhildur Karadottir The role of neuronal activity in myelin repair Welcome Trust – MRC Cambridge Stem Cell Institute

Dr Serge Mostowy Bacterial autophagy and the cytoskeleton in MRC Centre for Molecular host defence Bacteriology & Infection Imperial College London

Dr Erica Watson Mechanisms of folate metabolism during the University of Cambridge trans-generational inheritance of disease

Dr Steven West The nature, mechanism and function of RNA University of Sheffield polymerase II modifications in health and disease

Current and Former Lister Institute Prize Fellows The following have been awarded Lister Institute Research Prize Fellowships since the inception of the Prize Fellowship scheme. This is an outstanding group of scientists and represents a major contribution to the well-being of UK biomedical researc h:

Fellow Title of Research Awarded

Dr M Madan Babu Dynamics of tRNA abundance and the regulation of 2014 MRC Laboratory of protein expression levels Molecular Biology Cambridge Continued overleaf

9 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2015

Fellow Title of Research Awarded

Dr Nina Balthasar Identifying the novel CREB coactivator TORC2's role in the 2007 University of Bristol hypothalamic pathways controlling energy homeostasis Dr Oliver Billker In search of the xanthurenic acid receptor of malaria 2004 The Wellcome Trust parasite s–a potential target for transmission control Sanger Institute, Cambridge Dr Emmanuel Boucrot Mechanis ms of cargo selection and vesicle formation in a 2014 University College novel pathway of endocytosis London Professor Nia Bryant Using yeast as a model system to understand the 2004 University of York insulin-dependent trafficking of GLUT4 in adipocytes Dr Simon Bullock Mechanisms and neuronal functions of motor-driven 2008 MRC Laboratory of Molecular transport Biology, Cambridge Dr Juan Burrone The role of neuronal activity during synapse formation 2009 Kings College London Dr Vincenzo Costanzo The role of ATM and ATR in preventing genomic instability 2006 Cancer Research UK Clare Hall Laboratories Dr Victoria Cowling Regulation and function of the 7-methylguanosine cap 2011 University of Dundee Professor Daniel Davis Nanotubes and synapses in immune cell communication 2005 Imperial College London Professor Simon Draper Development of next-generation broadly-neutralising 2013 The Jenner Institute vaccines against the blood stage infection of Oxford human malarias Professor Michael Eddleston Prevention of deaths from late respiratory failure in 2011 University of Edinburgh organo-phosphorus pesticide poisoning Professor Sherif El-Khamisy The repair of oxidative and topoisomerase induced 2013 University of Sheffield chromosomal strand breaks and human disease Professor Rebecca Fitzgerald Translational research programme for prevention of 2008 University of Cambridge oesophageal adenocarcinoma

Dr Holger Gerhardt Endothelial guidance in vascular patterning 2008 Cancer Research UK London Research Institute

10 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2015

Fellow Title of Research Awarded

Dr Fiona Gribble Secretion of incretin hormones from the mouse 2006 University of Cambridge intestine Professor Andrew Jackson Cellular pathways determining human brain size 2009 University of Edinburgh Dr Josef Kittler Miro family proteins as regulators of synaptic bio- 2010 University College London energetics and a locus for mitochondrial dysfunction in neurological disease Professor Robert Klose Biochemical isolation and functional dissection of the 2011 University of Oxford CpG island proteome Dr David Komander Bacterial interference with the ubiquitin system 2012 MRC Laboratory of Molecular Biology Cambridge Professor Paul Lehner The role of HSP70 in MHC Class 1 mediated antigen 2004 University of Cambridge presentation in human dendritic cells

Dr David Lyons Elucidating mechanisms of myelinated axon formation, 2012 University of Edinburgh function and repair using zebrafish

Dr Juan Martin-Serrano Functional parallels between HIV-1 budding and the 2008 King’s College London last step of cell division

Professor Robin May The molecular basis of latency and dissemination 2010 University of Birmingham during cryptococcosis

Dr Akhilesh Reddy Peroxiredoxins and redox oscillations in the circadian 2012 University of Cambridge (24 hour) clockwork

Dr Robert Ryan Molecular basis of chronic antibiotic-resistant biofilm University of Dundee infections: a potential path towards development of strategies for therapeutic intervention

Dr Tatjana Sauka-Spengler Decoding gene regulatory circuits controlling 2013 Weatherall Institute of multipotency of neural crest Molecular Medicine, Oxford

Dr Melina Schuh Mechanisms of aneuploidy in human oocytes 2014 MRC Laboratory of Molecular Biology Cambridge Continued overleaf

11 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2015

Fellow Title of Research Awarded

Professor Kenneth Smith Control of infection and autoimmunity by an 2007 University of Cambridge inhibitory Fc receptor Fc γR11b Dr Grant Stewart Investigating the role of the RIDDLE syndrome 2009 University of Birmingham gene in promoting repair of DNA damage

Dr Anne Straube Microtubule-actin crosstalk in cell migration 2013 University of Warwick Dr Sarah Teichmann Decoding genetic switches in T helper cell differentiation 2010 The Wellcome Trust Sanger Institute and EMBL -EBI, Cambridge Professor Chris Thompson Identifying and characterising genes that control cell fate 2005 University of Manchester choice and social behaviour Professor Tomoyuki Tanaka Mechanisms of kinetochore-microtubule interaction 2005 University of Dundee Professor Daan van Aalten Structural mechanisms and specificity of O-GlcNAc 2006 University of Dundee signalling in the eukaryotic cell Dr Fiona Wardle Transcriptional control of mesodermal cell differentiation 2007 Kings College London in vertebrates

Fellowship Activities Once again the location at Christ’s College, Cambridge, the lovely autumn weather and most importantly the quality and enthusiasm of the speakers combined to provide a memorable Fellows’ meeting. The attendance was high and the delegates were provided with an out - standing set of presentations. The morning was, as usual, taken up by excellent talks from four of the five winners of the 2015 Prize Fellowships listed on page 9, aptly illustrating the diversity of scientific topics at this meetin g: Dr Ragnhildur Káradóttir The role of neuronal activity in myelin repair Wellcome Trust-MRC Cambridge Stem Cell Institute Dr Serge Mostowy Bacterial autophagy and the cytoskeleton MRC Centre for Molecular in host defence Bacteriology & Infection 12 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2015

Dr Erica Watson Mechanisms of folate metabolism during the University of Cambridge trans-generational inheritance of disease Dr Agnieszka Gambus Poly-ubiquitylaton drives replisome disassembly University of Birmingham at the termination of eukaryotic DNA replication

They were joined by Dr Fiona Wardle who described her research studying the networks of gene regulation that control tissue and organ formation in the early vertebrate embryo. The quality of these talks from the latest members of the ‘Lister Institute famil y’ set the benchmark for the rest of the meeting, and in the afternoon former Fellows showed that they had been far from idle since winning their Lister Institute Fellowships. The Members and Fellowship enjoyed presentations from Juan Martin Serrano (Exploring the final events in cell division), Andrew Jackson (Ribonucleotides embedded in genomic DNA) and Josef Kittler (Miro Mitochondrial GTPases in neuronal development, maintenance and death). All gave clear and insightful talks demonstrating the importance of fundamental research in identifying the potential causes of disease. Whilst the topics varied widely throughout the day, the high standard, depth of know- ledge and enthusiasm of the speakers was a constant, confirming clearly to Members the outstanding quality of the individuals awarded Prize Fellowships. The 2015 Special Lister Institute Lecture was given by Professor Judy Armitage who was one of the first Lister Institute Fellows between 1982-1985 and who, in 2015, was appointed to the Lister Institute Governing Body. Professor Armitage’s talk, entitle d’Keeping the wheels spinning: control - ling the rotary motor of the bacterial flagellu m’, provided the audience with a fascinating glimpse of a stellar career in science, presented with her trademark humour and modest y! She described how, since her earliest days at university, she has found bacteria fascinating, in particular the clever-yet-curious behaviour of the flailing‘tail s’ that many bacteria use to swim in fluids or crawl on solid surfaces. Understanding these mechanisms holds the potential for significant human benefit. If flagella could be selectively controlled so might infection. Professor Armitage gave her thanks for Lister Institute support; as she was one of very few people in the UK working on the responsive control of flagella, obtaining funding was very challenging and the Lister Institute Fellowship had played a vital role in her early career. As usual the lecture stimulated a wealth of questions and discussion. The session ended with mixed emotions both for the speaker and the audience. Dr Trevor Hince, stepping down after more than 10 years as Director of the Lister Institute, gave a per - sonal talk reflecting on a lifetime in the top echelons of scientific administration at the Cancer Research Campaign, Cancer Research UK and the Lister Institute. Trevor has worked with 13 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2015

some extremely eminent researchers in his time including two Knights of the Realm—Alex Markham and Paul Nurse (also a winner of the Nobel Prize)—and a Dame (Bridget Ogilvie). With typical modesty, Trevor played down his role in the success of all these charities. However, I hope that in giving the Institute’s thanks, I left the audience in no doubt as to Trevor’s massive con - tribution to science over the course of his career. Trevor was presented with (among other pres - ents), a magnificent portrait of Lord Lister—the main challenge he faces will be to find a space on the wall of his and Sarah’s cottage in Susse x! The Lister Institute will miss Trevor’s wise counsel and leadership but we are delighted that he has become a Lister Institute Member and will, therefore, remain a close friend to the Charity. The Reception and Dinner were the usual enjoyable occasions and, following presenta - tion of ‘scroll s’ to the new Prize Fellows, they were welcomed into the Lister Institute family in traditional styl e!

Conclusion As always, the Cambridge Fellows’ meeting was a great success, not only giving an insight into the high quality research of those who gave presentations but also the opportunity for Fellows and Members to speak informally about science and careers. We know from talking to the current Fellows how highly they value the opportunity to mix with their senior colleagues and discuss their research and the challenges of academia. Another extremely enjoyable and informative part of the role of Chairman has been listening to the Prize Fellows give seminars in their own departments, hearing how the award has helped them develop their research groups and talking to other members of their departments about the research environment and local funding issues. We never miss the opportunity to remind our hosts for the day that applications to the Lister Institute in subsequent annual competitions are welcomed. To all of those Fellows and their Host Institutions, Trevor Hince, Kate Law and I would like to express our thanks for their hospitality. In the past year we have visited UCL (Emmanuel Boucrot), Dundee (Robert Ryan), Cambridge twice (Erica Watson and Thóra Káradóttir),

14 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2015

Birmingham (Aga Gambus) and Sheffield (Steve West). All of these events are unique, reflecting both the character of the speaker and that of their departments. But what they have in common is an opportunity to underline the achievement of the Fellow in gaining the award as well as publicising our Fellowships. Often success in one year is followed by more applications from the same institution the nex t! What is also pleasing is that the Lister Institute Prize more often than not results in additional support to the Fellow, either in terms of facilities or funding, from the Host Institution. It is very obvious from our travels that the Lister Institute is indee d ‘nurturing the future leaders in biomedical research ’! At this point it is fitting that I again pay tribute to Professor Patrick Maxwell and all the members of the Scientific Advisory Committee, since it is abundantly clear that they are doing an excellent job in selecting the very best individuals for the award of Lister Institute Prizes. I am also indebted to my colleagues on the Financial and Investment Committee and the Governing Body, particularly in this year for their foresight in establishing a guaranteed £5m fund, ensuring that, for at least the next five years, we can award at least five new Fellowships each year. I am delighted to remind everyone that the Lister Institute has a very special year ahead. In 2016 it will be the 125th anniversary of the foundation of the Lister Institute and we plan to celebrate this milestone in Cambridge on the 1st September with a special celebratory meeting involving invited speakers and special guests. We have also commissioned an anniversary publication that will focus on the ‘modern day’ achievements of the Institute including the stories of some of our current and recent Fellows and the impact that Lister Institute scientists have had on science and medicine today. Integral to these celebrations will be a reflection on the unique partnership that has existed and been enjoyed over 125 years, between the Lister Institute and the Guinness family. Finally, it is as ever a pleasure and a privilege to be the Chairman of the Lister Institute of Preventive Medicine. The strength of the Institute is the people associated with it, whether they be Trustees, Members of the Governing Body and its sub-committees, the Member - ship, our Fellows or the staff, and to all I offer my sincere thanks and warmest appreciation.

ALEX MARKHAM Chairman

15 Pictured on this page: Top row, l- r: Former Chairman Dame Bridget Ogilvie, current Chairman Professor Sir Alex Markham, Professor Mark Pepys and Professor Robin Irvine Centr e: Professor Frances Platt, Dr Fiona Wardle and Ms Kate Law, newly-apointed Lister Director Botto m: Professors Ian Jackson and Corinne Houart with Dr David Lyons

011 16 The 2015 Annual Fellows’ Meeting at Christ’s College, Cambridge

Pictured on this page: Left: Dr Trevor Hince and Ms Jacky Wilson, Lister Accountant Centre : Professor Sir Alec Jeffreys with Governor Mr Andrew Hutton, Dr Erica Watson and Dr Ragnhildur Karadottir Botto m left: Dr Sally Prigent and Dr Madan Babu Bottom right: Professor Annette Dolphin and Dr Agnieszka Gambus

17 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2014

REPORT OF THE GOVERNING BODY for the year ended 31 December 2015

The Governing Body presents its Annual Appointment and Re-appointment of Trustees Report under the Charities Act 2011 together TThe Trustees are the fifteen members of the with the audited Financial Statements of the Governing Body of whom six are appointed by Charity for the year ended 31 December 2 01 5. the members at the annual general meeting. A The Financial Statements have been prepared maximum of six further Trustees are appointed in accordance with the accounting policies by the Governing Body and there are currently four such appointees. One additional member is set out in Note 1 (pages 2 9-30) to the Financia l Lord Iveagh’s representative, another is Professor Statements and comply with the Companies Sir Alec Jeffreys who was appointed to life- Act 2006, the FRS102 Charities SORP and the membership, and the final member, Professor documents governing the constitution of Cheryll Tickle, is the representative of the Royal the Charity. Society. Trustees, other than the two nominated representatives, Professor Sir Alec Jeffreys and REFERENCE AND ADMINISTRATIVE exceptionally those appointed by the Governing DETAILS Body, generally serve for a maximum of six years Reference and administrative information is set and a system of planned rotation is in place. out on pages 3 and 4 of this report. Currently two positions are deliberately being kept vacant. When considering appointment or Members of the Governing Body, Directors nomination for election as Trustees, the Govern - and Trustees ing Body has regard to the specialist skills The members of the Governing Body are, for needed. the purposes of company law, Directors of the Institute and, for the purposes of charity law, Induction and Training of Trustees Trustees of the Institute and throughout this New Trustees undergo induction sessions with report are collectively referred to as the Trustees. the Chairman, Treasurer and Director during Details of the Trustees serving throughout the which they will gain an understanding of the year, unless otherwise stated, are set out on Institute’s structure, activities, financial position page 3. and future strategies. Prior to appointment they will attend, as ‘observers’, one meeting of the STRUCTURE, GOVERNANCE AND Governing Body. New Trustees will also be made MANAGEMENT aware of their legal obligations with regard to charity and company law. In addition, new Constitution Trustees will be advised of appropriate literature The Institute is registered with the Charity and training courses. Commission for England and Wales (registration number 206271). It is incorporated and regis - Organisation tered in England and Wales under the The Institute is governed by its Governing Body Companies Act 2006 as a company limited by which is responsible for setting policies, autho - guarantee and not having a share capital rising actions on all significant operational issues (company number 34479). It is governed by its and ensuring legality and good practice. The Articles of Association and has charitable Governing Body meets formally twice a year. status. Specific authorities are delegated to two sub- 18 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2014

Committees in particular areas. The Scientific developed and communicated to all Trustees, Advisory Committee (see page 4 for member - staff and Members. ship) has responsibility for the selection of the The Institute maintains a ‘Register of Interests’ Lister Prize Fellows and the monitoring of their for all Governing Body and committee members scientific activities, as well as providing scientific as well as principal staff and operates a clear and medical advice to the Governing Body as declaration of interests policy and procedures required. In 2015 the peer review processes of for all meetings. the SAC were audited by the Association of The principal risk facing the Institute lies in its Medical Research Charities and found to be ability to maintain and protect the value in real meeting the highest standards. The Finance and terms of its investments and to generate from Investment Committee (see page 4 for member - them, on a long-term basis, a consistently high ship) has responsibility for interaction with the overall return. This risk is mitigated by the Institute’s investment advisors, ensuring imple - Institute’s appointment of experienced invest - mentation of the Institute’s investment policy ment managers with a proven track record; by and monitoring performance. It prepares and internal controls that allow close and regular submits to the Governing Body the annual monitoring of their performance against bench - budget, and subsequently monitors performance marks; by the Institute’s requirement of its against it. It also advises the Governing Body, as investment managers to re-tender periodically required, on other financial and risk matters. and competitively for appointment – the last The routine management of the Institute’s review was in October 2012 and the next is activities is undertaken by its Director, aided by planned for 2017, and by regular meetings that the Administrator and the Accountant. All staff formally review investment performance and work from home. policy, and include one-to-one presentations by the investment managers. Risk Management Investment Policy Statements are in place for The Trustees assess the risks facing the Institute the Lister Institute and its investment partners. and review the effectiveness of the controls to These are reviewed on an annual basis. monitor and mitigate them. A Risk Management Register is maintained and formally reviewed Objectives and Activities annually by the Governing Body. The statutory Object of the Institute is to further understanding and progress in preventive medi - The key controls used by the Institute includ e: cine by promoting excellence in biomedical . Formal agendas for all Governing Body research in the UK. meetings When founded in 18 91, the Institute sought to . Strategic planning, budgeting and manage- achieve this objective by establishing a research ment accounting institute specialising in the area o f ‘infections’ . Formal written policies and their prevention by immunisation and other . Clear authorisation and approval levels means. It complemented these research activities . Regular review of Fellows’ scientific reports by the production and supply of materials such The specific risk of bribery associated with any as vaccines and anti-toxins. of the Institute’s activities has been reviewed, The Institute continued in this mode until the and clear policies and procedures have been late 1970s when increasing financial and regula - 19 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2015

tory pressures caused the cessation of these Five Lister Institute Prize Fellowships were activities. Proceeds from the resultant sale of awarded in 2015 to Drs Gambus, Káradóttir, land and buildings created the investment funds Mostowy, Watson and West, from a field of 90 from which present-day activities are financed; initial applicants, following extensive scientific at 31 December 2015 these funds stood at review of their applications and final interview by £38.57m. From the 1980s the Institute has the Scientific Advisory Committee. (More details pursued its objective by the provision of grant of the Prize Fellows and their research are pro - funding to facilitate the research and careers of vided on page 8). Each Prize Fellowship provides high quality individuals working in areas of bio - £200,000 that may be spent over five years on the medicine relevant to preventive medicine. It recipient’s research, although the funds are has done this because it believes that the acqui - provided to the host institution at the commence- sition and advancement of knowledge is crucial ment of the award. to the understanding of health and disease and Twenty-five Summer Studentships were that research to achieve this is driven forward by awarded in 2015. Each is a £2,000 student bursary high quality individuals and their supporting and is paid to the host institution at the com - staff. mencement of the award for the support of the student for up to a ten-week period. Principal Activities The Institute maintained its commitment to In pursuance of this objective, during 2015 the fostering scientific interchange and collaboration Institute awarded five new Prize Fellowships. within the Fellowship by holding its 31st Annual In addition, the Institute has continued its Research Fellowship meeting at Christ’s College, Summer Studentship scheme which enables up Cambridge. to twenty- five undergraduates per year to work with Lister Institute Fellows or former Fellows in Public Benefit order to gain experience of biomedical research Insofar as the statutory objectives, aims and with the hope that they might consider it as a activities of The Lister Institute of Preventive career. Medicine are to further understanding in pre- ventive medicine by promoting biomedical Achievement and Performance research as set out on pages 19 & 20 of this The Scientific Advisory Committee has monitored Report, the Trustees have considered the Charity the performance of the current twenty-one Lister Commission’s guidance on public benefit, Institute Prize Fellows, through detailed review of including the guidanc e‘Public benefi t: running the annual reports on their research that include a charity (PB2 )’ . details of all publications and presentations. The The public benefit of the Institute’s grant- Scientific Advisory Committee has reported to making is clearly identifiable in the‘Achievement Trustees that it is of the view that all Fellows are and Performance’ paragraphs above and in the undertaking high quality research and producing list of Research Prize Fellows together with their new knowledge that will contribute significantly areas of research on pages 9 to 12 of the Chair - to our understanding of disease, its causes, treat - man’s report. All Lister Institute Fellows are ment and prevention. The reports of the research actively encouraged, where appropriate, to undertaken by the Summer Students have also develop their research findings for potential been reviewed and found to be very satisfactory. public benefit and the Scientific Advisory 20 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2015

Committee has regard to this when reviewing out an overall target asset allocation with allow - their research reports. The Lister Institute there - able ranges for each category of asset. fore benefits the public or a sector of it without Both investment managers invest on a total imposing any restrictions. Applications from returns basis through a variety of pooled funds individuals are accepted only when demonstrably and in accordance with the Institute’s overarch - consistent with the charitable objectives of the ing ‘Investment Policy Stateme nt’ (IPS), which Institute. states the overall investment objective and sets the investment return objectives, the risk para- Impact meters, the performance measures and review The impact of the activities of a medical research procedures for the portfolio. The Institute’s IPS charity can be measured at many levels ranging was revised in the autumn of 2013 and again in from the growth of knowledge to direct patient/ 2015, as a result of the establishment of the public benefit. Often the transition from the liquidity reserve. Specific versions were also former to the latter may take many years and agreed for each of the investment managers to the involvement of several organisations. The reflect their individual investment approaches. Institute requires that the results of the research The IPSs are reviewed annually. The investment it supports are published and disseminated; managers are informed at the beginning of the that, where appropriate, significant intellectual financial year of the Institute’s likely cash re - property is protected via patents; and that its quirements, both in terms of the amount and commercial development is encouraged. the timing of any draw-down, and are asked to Several biotechnology companies have been keep in an income or cash account sufficient formed around the findings of Institute-spon - funds to meet them. The Institute has in place sored research and there are several interactions an ethical investment policy which does not with large pharmaceutical companies. A prime permit direct investment in tobacco or tobacco- exam ple of the impact of research is DNA finger - related companies. printing, which was discovered by Sir Alec The Institute’s overall financial return objective Jeffries when a Lister Institute Fellow and has is to preserve and if possible enhance the pur - become an indelible part of society, helping to chasing power of its portfolio assets, net of costs prove innocence or guilt in criminal cases, and approved withdrawals, over rolling three- resolving immigration arguments and clarifying year periods. This goal is synonymous with the paternity. pursuit of a time-weighted net return on port- folio assets that equals and if possible exceeds Investment Policy and Performance cost inflation as measured by the UK Consumer The Institute’s investment objective is to develop Price Index plus the Institute’s long-term spend - and maintain its financial resources through the ing rate of 3-4% measured over corresponding selection of investments, consistent with an three-year periods. This goal has been achieved acceptable level of risk. over the most recent three-year period. The Institute’s investment portfolio is split The performance of the investment portfolio between Cazenove Capital Management and is reviewed by the Finance and Investment Partners Capital LLP who both operate under Committee, which had two meetings in the year mandates agreed in advance with the Finance with the investment advisors to review perform- and Investment Committee. These mandates set ance, liquidity within the portfolio, and the due 21 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2015

diligence undertaken on potential new invest - at a total cost of £50,000 can be reviewed each ment vehicles. In addition, the Institute receives year with regard to both number and value. detailed quarterly valuation and transaction Twenty-five were funded this year. As previously reports. In a year that saw moderate stock market described, a £5m portfolio has been established growth the fund has risen from £37.296m to to ensure that the number and level of awards £38.568m. The decision to withdraw and place is sustainable over the next five years. £5m in a Liquidity Account was based both on the recent strong growth of the portfolio but Reserves Policy also concerns about future market volatility and The policy of the Trustees is to maintain adequate performance. This decision will ensure that five financial resources to provide income to meet Prize Fellowships can be awarded for five years current and future commitments as they fall from 2015. due and ensure that adequate funds remain More details of the Institute’s activities are set available to enable them to make awards in out in the Chairman’s Report on pages 5 to 15. perpetuity. The adequacy of the level of reserves (£38.6m in 2015) and the continuing appropriateness of FINANCIAL REVIEW the policy are reviewed on an annual basis by the Trustees. As the current level of investments Allocation of Resources now just exceeds that of 2015, they feel satis - The Institute, which does not seek to raise funds fied with the policy over the long-term and, from the public, depends primarily on investment given that the Institute is not formally committed returns to meet its pension provision payments, to awarding any Prizes beyond the current year, administrative expenditure and expenditure in are confident in the ability of the Institute to furtherance of the Charity’s objectives. The total maintain appropriate levels of activity in the return on investments for the year was realised/ short-term. unrealised gains of £920,000 and investment income of £730,000. Payments are currently Plans for the Future made to five pensioners who were employees The Institute’s future policy is to continue to of the Lister Institute. The Finance and Invest - pursue its current objectives. It will therefore ment Committee reviews the salaries of key maintain the Prize Fellowship scheme, which it personnel on an annual basis. sees as a funding priority. The Summer Student- The resources expended totalled £1.462m of ship scheme will also be maintained together which £1.193m was resources expended for the with the opportunity for schools to receive talks Institute’s charitable activities. from the Institute’s Fellowship on science and The Prize Fellowships are fixed sum awards biomedical subjects as part of an ‘outreach’ and therefore, expenditure can be regulated programme. by altering the number and/or value of prizes awarded each year. In 2015, due to the substantial Statement of Trustee Responsibilities increase in the value of the investment portfolio The Trustees (who are also directors of The Lister and good returns, the Trustees felt able to award Institute of Preventive Medicine for the purposes five Prizes and to maintain their value at of company law) are responsible for preparing £200,000 each. The Summer Studentship scheme the Trustees’ Annual Report and the financial 22 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2015

statements in accordance with applicable law position of the charitable company and enable and United Kingdom Accounting Standards them to ensure that the financial statements (United Kingdom Generally Accepted Accounting comply with the Companies Act 2006. They are Practice). also responsible for safeguarding the assets of Company law requires the Trustees to prepare the charitable company and hence for taking financial statements for each financial year reasonable steps for the prevention and which give a true and fair view of the state of detection of fraud and other irregularities. affairs of the charitable company and of the in - In so far as the Trustees are awar e: coming resources and application of resources, . there is no relevant audit information of including the income and expenditure, of the which the charitable company’s Auditor is charitable company for that period. In preparing unaware; these financial statements, the Trustees are . the Trustees have taken all steps that they required t o: ought to have taken to make themselves . select suitable accounting policies and aware of any relevant audit information and then apply them consistently; to establish that the Auditor is aware of that . observe the methods and principles in the information. Charities SORP; The Trustees are responsible for the main- . make judgments and estimates that are tenance and integrity of the corporate and reasonable and prudent; financial information included on the charitable . state whether applicable UK Accounting company’s website. Legislation in the United Standards have been followed, subject to any Kingdom governing the preparation and material depar tures disclosed and explained dissemination of financial statements may differ in the financial statements; and from legislation in other jurisdictions. . prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will By Order of the Governing Body continue in business. ALEX F MARKHAM MICHAEL FRENCH The Trustees are responsible for keeping Chairman Treasurer proper accounting records that disclose with reasonable accuracy at any time the financial 18 June 2016

23 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2015

INDEPENDENT AUDITOR’S REPORT to the Members of The Lister Institute of Preventive Medicine

We have audited the financial statements of The Scope of the audit of the financial statements Lister Institute of Preventive Medicine for the An audit involves obtaining evidence about the year ended 31 December 2015 which comprise amounts and disclosures in the financial state - the Statement of Financial Activities, the Balance ments sufficient to give reasonable assurance Sheet and the related notes. The financial report- that the financial statements are free from ing framework that has been applied in their material misstatement, whether caused by fraud preparation is applicable law and United Kingdom or error. This includes an assessment of: Accounting Standards (United Kingdom Gener - whether the accounting policies are appropriate ally Accepted Accounting Practice including to the charitable company’ s circumstances and FRS10 2:‘The Financial Reporting Standard have been consistently applied and adequately Applicable in the UK and Ireland’). disclosed; the reasonableness of significant This report is made solely to the charitable accounting estimates made by the Trustees; and company's members, as a body, in accordance the overall presentation of the financial state - with Chapter 3 of Part 16 of the Companies Act ments. In addition we read all the financial and 2006. Our audit work has been undertaken so non-financial information in the Annual Report that we might state to the company’s members to identify material inconsistencies with the those matters we are required to state to them audited financial statements, and to identify any in an auditor’s report and for no other purpose. information that is apparently materially in- To the fullest extent permitted by law, we do not correct based on, or materially inconsistent accept or assume responsibility to any party with, the knowledge acquired by us in the other than the charitable company and the course of performing the audit. If we become chari table company's members as a body, for aware of any apparent material misstatements our audit work, for this report, or for the or inconsistencies we consider the implications opinions we have formed. for our report.

Respective responsibilities of Trustees and Opinion on financial statements Auditor In our opinion, the financial statements: As explained more fully in the Trustees’ Respon - . give a true and fair view of the state of the sibilities Statement, the Trustees (who are also charitable company’s affairs as at the directors of the charitable company for the 31 December 2015 and of its incoming purposes of company law) are responsible for resources and applica tion of resources, the preparation of the financial statements and including its income andexpenditure, for the for being satisfied that they give a true and fair year then ended; view. Our responsibility is to audit and express . have been properly prepared in accordance an opinion on the financial statements in accor - with United Kingdom Generally Accepted dance with applicable law and International Accounting Practice; and Standards on Audit ing (UK and Ireland). Those . have been prepared in accordance with the standards require us to comply with the Audit - requirements of the Companies Act 2006. ing Practices Board’s (APB’s) Ethical Standards for Auditors.

24 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2015

Opinion on other matters prescribed by the specified by law are not made; or Companies Act 2006 . we have not received all the information and In our opinion, the information given in the explanations we require for our audit; or Trustees’ Annual Report for the financial year for . the Trustees were not entitled to prepare the which the financial statements are prepared is financial statements in accordance with the consistent with the financial statements. small companies regime and take advantage of the small companies exemption in preparing Matters on which we are required to report by the Trustees’ Annual Report and from preparing exception a Strategic Report. We have nothing to report in respect of the follow ing matters where the Companies Act 2006 Nicholas Brooks (Senior Statutory Auditor) requires us to report to you if, in our opinion: for and on behalf of Kingston Smith LLP, . adequate accounting records have not been Statutory Auditor kept or returns adequate for our audit have not been received from branches not visited Devonshire House by us; or 60 Goswell Road . the financial statements are not in agreement London EC1M 7AD with the accounting records and returns; or . certain disclosures of Trustees’ remuneration 18 June 2016

25 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2015

STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2015

Notes 2015 2014 £’000 £’000 Income and endowments fro m: Investments 2 730 597 Other incoming resources 3 9 48 Total incoming resources 739 645

Expenditure o n: Cost of raising funds: Investment management costs 4 (238) (214) Charitable Activities: Prizes & Summer Studentships 6 (1,224) (1,000) Total expenditure (1,462) (1,214) Net gains on investment 920 1,628 Net income 197 1,059

Other recognised gains/ (losses): Actuarial losses on defined benefit schemes 13 (11) (14) Net movement in funds 186 1,045

Reconciliation of fund s: Total funds brought forward 38,338 37,293 Total funds carried forward 38,524 38,338

All items in the above Statement of Financial Activities relate to continuing operations for both years. The Institute has no other recognised gains and losses other than as stated above and hence no separate income and expenditure statement has been shown.

The notes set out on pages 29 to 34 form part of these financial statements.

26 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2015

BALANCE SHEET as at 31 December 2015 Company no. 34479

Notes 2015 2014 £'000 £’000 Fixed assets Investments 9 38,568 37,296 Total fixed assets 38,568 37,296

Current asset s Debtors 10 10 48 Cash at bank and in hand 11 155 1,441 Total current assets 165 1,489

Current liabilities Creditor s: amounts falling due within one year 12 (32) (263) Net current asset s 133 1,226

Total assets less current liabilities 38,701 38,522

Creditor s:amounts falling due after more than one year Pension provision 13 (177) (184) Net assets 38,524 38,338

Represented by Unrestricted funds 38,524 38,338 Total charity funds 38,524 38,338

The Trustees have taken advantage of the exemptions conferred by the Companies Act 2006, on the grounds that the Institute is entitled to the benefit of those exemptions as a small company.

These financial statements were approved by the Governing Body on 18 June 2016.

ALEX F MARKHAM Members of the MICHAEL FRENCH Governing Body

The notes set out on pages 29 to 34 form part of these financial statements.

27 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2015

CASH FLOW STATEMENT for the year ended 31 December 2015

2015 2014 £’000 £’000 Cash flow/(outflow) from operating activities Net cash (used in)/provided by operating activities (1,664) (1,388)

Cash flows from investing activities Investment income and interest received 730 597 Proceeds from disposal of fixed asset investments excluding endowment funds 14,534 9,360 Acquisition of fixed asset investments excluding endowment funds (17,556) (7,981) Other movements on investments 2,670 203 (1,286) 791

Net increase in cash and cash equivalents (1,286) 791 Cash and cash equivalents at beginning of year 1,441 650 Cash and cash equivalents at end of year 155 1,441

Reconciliation of net income/(expenditure) to net cash flow from operating activities Net income including endowments 186 1,045

Adjustments fo r: Net (gains)/losses on investments (920) (1,628) Investment income (730) (597) Decrease/(increase in debtors 38 (40) Increase/(decrease in creditors (238) (168) Net cash (used in)/provided by operating activities (1,664) (1,388)

The notes set out on pages 29 to 34 form part of these financial statements.

28 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2015

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2015

1 PRINCIPAL ACCOUNTING POLICIES

Basis of preparation The Financial Statements have been prepared for the first time, in accordance with the Statement of Recommended Practice, Accounting and Reporting by Charities (FR S102 SORP). The transition date to FR S102 was 1 January 2014 and the last financial statements prepared under the previous financial reporting framework were prepared for the year ended 31 December 2014. The Financial Statements are prepared in accordance with the historical cost convention modified by the revaluation of investments. The charity is a Public Benefit Entity as defined by FRS102. The principal accounting policies adopted in the preparation of the Financial Statements are as follows: Income All incoming resources are accounted for on a receivable basis. Prizes and summer studentships The cost of Research Prize Fellowships is charged in the year awarded. Expenditure The costs of raising funds include those fees payable to the Institute’s investment fund managers for the management of the Institute’s investment portfolio. These are accounted for on an accruals basis. Charitable activities comprise all expenditure directly relating to the objects of the charity and are accounted for on an accruals basis. The allocation of expenditure between governance and management, administration and support costs is reviewed on an annual basis to ensure the allocation is appropriate. Indirect costs are generally treated as falling into the latter category with the exception of a proportion of salary and related costs, which have been classified as governance costs. In addition to auditor’s remuneration, governance costs comprise the proportion of staff costs associated with the time spent on the preparation of the statutory accounts and other governance issues, together with honoraria remuneration provided to members of the Institute’s Scientific Advisory Committee for their duties in selecting the Prize Fellows. Supplementary pensions and staff pensions An estimate of the full provision is made in the Financial Statements for the costs of future supplementary payments. The provision and charge to income are reviewed annually by theTrustees in the knowledge that the number of persons receiving the supplementary pensions will not increase.The pension costs are assessed in accordance with actuarial advice and these costs are accounted for in accordance with FR S102 SORP. Existing employees participate in a defined contribution scheme, the costs of which are expensed as incurred. These disclosures are made in accordance with FR S102 SORP. Investments Investments are shown at market value in the balance sheet. Changes in the market value are included in the Statement of Financial Activities as realised and unrealised investment gains or losses in the year in which they arise. Investments denominated in foreign currencies are valued at year-end rates of exchange. Cash flow statement The Charity has included a cash flow statement in accordance with FR S102 SORP.

... / continued

29 1 PRINCIPAL ACCOUNTING POLICIES (continued)

Taxation The organisation is a registered charity and has obtained exemptions from taxation under Part 11, Chapter 3 of the Corporation Tax Act 2010. This exemption will remain as long as income is compatible with that section and expenditure is applied to charitable purposes only. Critical accounting estimates and areas of judgement In preparing financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements. The trustees consider the estimates involved in the valuation of investments to have most significant effect on amounts recognised in the financial state - ments. These are taken directly from Investment Manager’s reports. In addition the company has an obligation to pay pension benefits to certain employees. The cost of these benefits and the present value of the obligation depend on a number of factors including: life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. Management estimates these factors in determining the net pension obligation in the balance sheet. The assumptions reflect historical experience and current trends. See Note 13 for the disclosures relating to the defined benefit pension scheme. Going Concern The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. After making enquiries, the trustees have concluded that there are no material uncertainties that cast significant doubt on the charity’s ability to continue as a going concern. The charity therefore continues to adopt the going concern basis in preparing its financial statements. Adjustments arising on transition to FRS102 The following adjustments have also been made in order to comply with the new SORP/ FR S102 which have had no effect on total funds or the income and exenditure account but which have affected the presentation of certain items in the statement or on the balance sheet. The main items were: Governance costs are no longer presented as a separate category of expenditure in the Statement of . Financial Activities as they are not regarded as part of support costs, which are allocated to the cost of activities undertaken by the Charity. . Gains/losses on investment assets are now shown within the total of net income. . No re-statement of any figures in prior year amounts were necessary. Financial instruments The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FR S102 to all of its financial instruments. Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with 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. With the exceptions of prepayments and deferred income all other debtor and creditor balances are considered to be basic financial instruments under FR S102. See Notes 10 and 12 for the debtor and creditor notes.

2 INVESTMENT INCOME 20 15 20 14 £'000 £’000 Income from fixed asset investments 726 594 Bank interest receivable 4 3 730 597

30 3 OTHER INCOME 2015 20 14 £'000 £’000 Royalty income 9 48

Royalty income is earned from Cancer Research Technology as a result of Revenue sharing related to Mammalian Cell research studies.

4 INVESTMENT MANAGEMENT COSTS 20 15 20 14 £'000 £’000 Partners Capital LLP 141 122 Cazenove Capital Management 97 92 Total investment management fees 238 214

Investment management fees referred to here are those accrued fees relating to the management of the Institute's investment portfolios in 2015.

5 GOVERNING BODY AND STAFF COSTS Emoluments of members of the Governing Body No member of the Governing Body received any emoluments in respect of services to the Institute during the year (2014: nil) . Travel expenses of £1,358 were paid relating to the claims of six members in connection with their attendance at meetings (2014: £1,287, six members) . Members of the Governing Body who are also members of the Scientific Advisory Committee receive remuneration in relation to their services to the committee. An honorarium of £1,500 (2014: £1,500) was paid to one of the members, the remainder all received £1, (2014: £1,000) Employee information The average number of persons employed by the Institute during the year was four (2014: three) , three of whom are part-time (2014: two) . From Jul y-Dec 2015 Ms Law was employed as Director-designate to replace Dr Hince upon his retirement (Dec 2015), both were remunerated for that period. All were employed in an administrative and support capacity. No employees earn over £60k p.a. (2014: nil) . Key management personnel include the Trustees, the Director and in 2015 Director-designate, (in 2014 the Trustees and Director only) . The total employee benefits of the charity's key management personnel were £61,880 (2014: £44,220) . Staff costs 20 15 20 14 £’000 £’000 Gross salaries 97 78 Pension contributions 3 3 Employer’s national insurance 6 8 Total 106 89 The salary costs are allocated under governance where related to statutory accounts preparation, the balance being reported within charitable activities. A small employer’s NI rebate was claimed for the tax years of 2013/14 and 2014/15, no previous claim has been available.

31 6 PRIZES & SUMMER STUDENTSHIPS 20 15 20 14 £’000 £’000 Prize awards 1,000 800 Summer Studentship payments 50 50 Support costs (see Note 7) 50 45 Salaries (see Note 5) 93 78 Governance costs (see Note 8) 31 27 1,224 1,000

7 SUPPORT COSTS 20 15 20 14 £’000 £’000 Office expenses 10 9 Travel expenses 4 3 Professional fees 4 3 Honoraria and events 23 21 Pension costs (see Note 13) 9 9 50 45 These costs are all considered to be costs to support resources expended on charitable activities.

8 GOVERNANCE COSTS 20 15 20 14 £’000 £’000 Auditors’ remuneration 10 10 Staff costs (see Note 5) 13 11 Honoraria and events 8 6 31 27

No non-audit services were provided by the auditors during the year (2014: none ).

32 9 INVESTMENTS

Listed investments are valued at middle market quotations ruling at the year-end 20 15 20 14 £’000 £’000 Market value at beginning of year 37,296 37.250 Purchases during the year at cost 17,556 7,981 Proceeds of sales during the year (14,534) (9,360) Reinvested income for the year 557 418 Movement in un-invested cash (3,127) 1,379 Cash withdrawn (100) (2,000) Net change in market value 920 1,628 Market value at year-end 38,568 37,296

The portfolio’s asset allocation was as follow s: 20 15 20 14 £’000 £’000 UK investments Equities 6,584 7,569 Fixed interest 4,977 2,482 Other (including private equity, property, commodities, alternatives and inflation-linked bonds 7,191 3,862 Cash 681 512 Total UK investments 19,433 14,425

Non-UK investments Equities 8,323 15,461 Other (including private equity, property, commodities and alternatives) 10,639 6,538 Cash 173 872 Total non-UK investments 19,135 22,871

Total 38,568 37,296

At 31 December 20 15 no single shareholding exceeded 5% of the total value of investments (2014: none) . Historical cost related to the closing position of 2015 was £30.7m (2014: £27.6m) .

10 DEBTORS 2015 2014 £'000 £'000 Prepayments 1 0 Accrued income 9 48 Total 10 48

33 11 CASH 2015 20 14 £'000 £’000 Cash at bank 155 1,441

12 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2015 20 14 £'000 £’000 Taxation and social security 4 3 Accruals and deferred expenditure 28 260 Total creditors falling due within one year 32 263

13 PROVISION FOR LIABILITIES AND CHARGES This represents a provision for future supplementary pension payments, in respect of ex-employees, based on their salary and length of service. The pensions are unfunded, with payments made out of the Institute’s funds as they fall due. Movements in the pension provision during the year were as belo w: 20 15 20 14 £'000 £’000 Liability at beginning of period 184 186 Plus interest cost 9 9 Plus actuarial gains and losses 11 14 Benefits paid (27) (25) Liability at end of period 177 184

The tables below state the FRS102 actuarial assumptions used to estimate the pension provision. Principal actuarial assumptions Valuation at 31 December 2015 20 15 2014 Rate of increase to pensions in payment 3.0% 3.0% Rate used to discount scheme liabilities 5.0% 5.0%

The post-retirement mortality assumption uses the PCA00 base tables (year of birth) with improvements equal to medium cohort with a 1% minimum.

14 RELATED PARTY TRANSACTIONS

There were no related party transactions in the year (2014: none) .

34 Designed and produced by Alec Just Print and Design Aston Clinton Bucks HP22 5EE The Lister Institute of Preventive Medicine Nu rturing the future leaders in biomedical research

ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31 December 2016

The Lister Institute of Preventive Medicine is a company limited by guarantee (England 34479) and a registered charity (206271) The Institute was founded in 1891 and for the next 80 years played a vital role in the development of the laboratory aspects of preventive medicine as an independent research institute in the UK.

Financial pressures in the 1970s led to the closure of the research and production facilities and the conversion of the Lister Institute into a highly successful trust awarding prestigious Research Fellowships from 1982 which in 2003, again because of financial pressures, were revised to become Prize Fellowships.

The cover portrait of Lord Lister reproduced by courtesy of the Royal Veterinary College LEGAL AND ADMINISTRATIVE INFORMATION for the year ended 31 December 2016

THE GOVERNING BODY Professor Sir Alex Markham, DSc, FRCP, FRCPath, FMedSci, Chairman Mr Michael French, BS c(Eng), FCA, Hon Treasurer Professor Judith Armitage, BSc, PhD, FRS Professor Wendy Bickmore, BA, PhD, FMedSci, FRSE Professor Sir Adrian P Bird, CBE, FRS, FRSE Professor Rebecca Fitzgerald, MD, FRCP, FMedSci Hon Rory M B Guinness Professor Douglas Higgs, MBBS, MRCPath, DSc, FRCP, FRCPath, FRS Mr Andrew Hutton, MA, CFA Professor Sir Alec J Jeffreys, CH, DPhil, FMedSci, FRS Professor Patrick Maxwell, FRCP, FMedSci Mr Matthew Pintus, BA Professor Cheryll A Tickle, CBE, FRSE, FMedSci, FRS

SENIOR MANAGEMENT Secretary and Directo r: Ms Kate Law

Business Address Registered Office PO Box 2502 Macfarlanes Watford 10 Norwich Street WD18 1AE London EC4A 1BD

Solicitors Investment Advisors Macfarlanes Cazenove Capital Management 20 Cursitor Street 12 Moorgate London EC4A 1LT London EC2R 6DA Bankers Partners Capital LLP 5 Young Street Messrs Coutts & Co London W8 5EH St Martins Office 440 Strand Websit e: www.lister -institute.org.uk London WC2R 0QS Telephon e: 01923 801886 Auditors Kingston Smith LLP Devonshire House 60 Goswell Road London EC1M 7AD LEGAL AND ADMINISTRATIVE INFORMATION for the year ended 31 December 2016

THE SCIENTIFIC ADVISORY COMMITTEE Professor Patrick Maxwell, FRCP, FMedSci, Chairman Dr Ian Adams, BSc, PhD Professor Jon Cohen, FRCP, FMedSci Professor Cyrus Cooper, OBE, MA, DM, FRCP, FFPH, FMedSci Professor William Deakin, PhD, FRCPsych, FMedSci Professor Annette C Dolphin, PhD, FRS Professor Margaret C Frame, PhD, FRSE, FMedSci (Appointed 2 September 2016) Professor David Holden, FMedSci, FRS (Retired 2 September 2016) Professor Corinne Houart, PhD Professor John Iredale, FRCP, FMedSci, FRSE Professor Nick Lemoine, MD, PhD, FRCPath, FMedSci Professor Christoph M Tang, MB, ChB, PhD, FMedSci (Appointed 2 September 2016) Professor Jonathan Waltho, BSc, PhD Professor Colin Watts, FRS, FRSE, FMedSci

Secretar y: Ms Kate Law

THE FINANCE AND INVESTMENT COMMITTEE Mr Michael French, BS c(Eng), FCA, Chairman Professor Judith Armitage, BSc, PhD, FRS Hon Rory M B Guinness Mr Andrew Hutton, MA, CFA Professor Sir Alex Markham, DSc, FRCP, FRCPath, FMedSci Mr Matthew Pintus, BA

Secretar y: Ms Kate Law

5 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2016 CHAIRMAN’S ANNUAL REPORT for the year ended 31 December 2016

THE YEAR 2016 was a very special year for the Lister Institute, marking the 125th anniversary of its inauguration in July 1891. We celebrated this occasion with record attendance at an extremely successful two-day meeting in Cambridge and also commissioned an anniversary publication. We were delighted to receive support for these activities in the form of generous do- nations from the Wellcome Trust and the Lauchentilly Charitable Foundation. We have, encouragingly, seen a continued improvement in the Institute’s finances with a rise in the value of our investment portfolio to just over £41.5m. Against a background of BREXIT and increasingly volatile markets, the Govern - ing Body ratified a recommendation by the Finance and Investment Committee to maintain, on a rolling basis, a secure account of £5m, thereby ensuring that the Lister Institute is able to award at least five prizes every year, for a minimum of five years. On the research front, we received a record number of applications (99) for the Prize Fellowship. Lister Institute Fellows and former Fellows continued to undertake excellent research, publish high-impact papers and gain academic advancement on many fronts. The Institute’s philosophy of supporting research through the identification of top-quality individuals and then helping them to develop their activities is as strong and relevant today, via the Prize Fellowship scheme, as it was in 1982 when the first Senior Fellowships were awarded. My visits to Host Institutions and discussions with Fellows and Members of the Lister Institute give me great confidence that the Lister Institute Prize is still seen as a highly prestigious award, with the flexibility that it offers being its greatest strength. I am delighted to report that two people closely associated with the Lister Institute were deservedly recognised in the New Year’s Honour’s lis t; Professor Sir Alec Jeffreys (former Fellow and now a member of the Governing Body) was made a Companion of Honour and Professor Stephen Inglis, former member of the Governing Body, was awarded a CBE .

Governing Body and Administrative Matters The Governing Body met twice during the year, once in April at the Royal Society and again before the start of the extended September Fellows’ meeting in Cambridge. I should like to thank all members of the Governing Body for the time which they

The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2016 5 Chairman’s Report

spend on the Institute’s business and the thought which they give to its affairs. The Institute runs very effectively with only these two formal Governing Body meetings a year; one in Spring and the Autumn meeting, combined with the AGM and Fellows’ meeting, in Cambridge. I am exceedingly grateful to my fellow Trustees for the speed with which they respond to Lister matters in the interim and the considera - tion they give to the Institute’s business. The work of the Governing Body is made easier by the knowledge that two key areas, science and finance/investment, are so ably looked after by the relevant sub-Committees and I thank their members for all their efforts and dedication. It is important that there is planned turnover of Trustees and this year it was my turn, as longest-serving elected member of the Governing Body, to stand for re- election. I am proud and humbled to be invited to serve such a prestigious body for another five years. On a less positive note, I have to report an unfortunate and, in the history of the Lister, an unprecedented occurrence. We were informed that one of the current Lister Fellows was under investigation for scientific misconduct and, following a rig - orous and independent review by the university concerned, the case was found to be proven. The Fellow left the university immediately and all unspent Lister funding (£182k) has been returned to the Institute and will appear in the 2017 accounts. The Governing Body spent a considerable time discussing this situation and also the actions taken by the Chairman and Director to mitigate any potential reputa - tional or financial risks to the Lister Institute. Members recommended some minor changes to the risk log and concluded that, given the circumstances, all appropri - ate actions had been taken. I am extremely sad to report the death of Professor Sir Patrick Sissons, who served on the Governing Body from 1999 to 2004 during a very difficult time for the Institute. His wise counsel was of tremendous value. Professor Sissons will be remembered both for his groundbreaking research in nephrology and infectious disease, and for his leadership of the University of Cambridge’s Clinical School, where he was Regius Professor of Physic. He focused on cytomegalovirus, a virus that is latent in the majority of humans but which can easily kill patients with sup - pressed immunity. His pioneering work in this field coincided with the emergence of the AIDS epidemic, caused by human immunodeficiency virus. He will be re - membered as a brilliant clinical scientist, academic strategist and administrator;

6 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2016 Chairman’s Report

wise, scrupulously fair and unstinting in support of others—especially younger academics and trainees. Finally, a major contributor to the smooth running of the Institute is the efficiency of Kate Law and a small administrative team of Naomi King and Jacky Wilson and I thank them yet again on behalf of all Trustees.

Institute Membership Five Fellows, who completed their fellowship in 2016, have been welcomed into membership of the Institute. They are: Professor Victoria Cowling, University of Dundee; Professor Michael Eddleston, University of Edinburgh; Professor Josef Kittler, University College London; Professor Rob Klose, University of Oxford; and Professor Robin May, University of Birmingham.

Financial Matters During a period of global instability, including BREXIT and the US election, the Lister portfolio has out-performed our expectations at the beginning of the year. The overall value of the portfolio has increased by £2.92m in the previous twelve months resulting in reserves of just over £41.6m once £1m had been withdrawn to pay for this year’s Fellowships. Both investment managers have performed well in challenging circumstances. The implications of BREXIT are, however, complex and long-lasting and, whilst the Lister benefitted from the diversity of its portfolio and from holding many of its investments overseas, the world economic picture is still very volatile; so prudence remains the‘watchword’. The healthy level of reserves meant that, in 2016, the Institute was again able to fund five Prize Fellows (£1m) and twenty-five Summer Studentships (£50k). The level of reserves also informed a discussion by the Finance Committee on our ability to maintain £5m in a separate low volatility portfolio (established in 2015), for a rolling period of 5 years. This account enables the Institute to provide protection against market instability and make a clear statement about the intention to fund at least five awards for each of the next five years. The Governing Body endorsed this policy, on a rolling basis to be reviewed annually, as it demonstrates a commitment to human capital and gives a strong signal to the university sector that the Lister finances are in good order. Another way of protecting the Lister portfolio against future instability is to

The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2016 7 Chairman’s Report

increase the proportion of illiquid funds from the current 20% to 30% or higher. A higher level of illiquid funds is standard practice in the charity sector and the Finance and Investment Committee agreed that Partners Capital should provide the Committee with a paper laying out the implications of such a change. These proposals will be considered at its first meeting in 2017. All usual expenditures are in line with the agreed 2016 budget. Included in the 2016 budget is a one-off allocation of £20k to cater for the 125th Anniversary activities—largely accounted for by the additional meeting on Thursday and the costs of the publication. We were pleased to receive two donations (from the Well - come Trust and the Lauchentilly Charitable Foundation) amounting to £9k to partially offset these costs. In addition to royalties of £9k from Cancer Research Technology we also received £85k from sales of shares in TauRX, a company estab - lished by an ex-Clinical Fellow Professor Claude Wischik, to develop drugs that have the potential to treat dementia. The Institute’s operational costs remained low at £193k, with investment man - agement charges slightly lower than 2015, at £231k. The Lister Institute’s total expenditure for 2016 was £1.291m. As required by recent pension legislation, the three current employees of the Lister Institute have received formal letters from the Treasurer explaining the impli - cations of the new legislation and the options available to them. All formalities have been concluded to the satisfaction of HMRC and there are no financial implications for the Institute. It is good financial practice periodically to review the performance of investment managers and, as five years have passed since the last formal review, the Treasurer with the Finance and Investment Committee has, since the year-end, carried out a further review. In addition to Partners Capital and Cazenove four other firms were considered as alternatives. After listening to detailed presentations and considering alternative approaches however, the Committee decided that it was satisfied with the performance of its current investment managers and, with the agreement of the Governing Body, Partners Capital and Cazenove have been reappointed.

Scientific Activities Scientific Advisory Committee The work of the Scientific Advisory Committee in selecting the Prize Fellows is at

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the heart of the Institute’s activities. In 2016 we received the highest number of applications to date and the SAC was faced with the daunting task of selecting just five Prize Fellows from 99 proposals. The process proceeds with an initial screening and scoring by SAC members to arrive at a long-list. These candidates are then further evaluated by the SAC with the help of reviews from international researchers, to arrive at a short-list of eleven candidates who were then interviewed. Towards the end of the selection process the standards are very high and, coupled with the very diverse fields of research represented, the task of selecting the‘winners’ is extremely difficult—it is a tribute to SAC members and their chairman that each year they identify some truly exceptional young researchers—and this year was no different. I’m also delighted to report an extremely encouraging gender balance amongst this year’s winners—three of the five Fellows are wome n! As with all Institute committees there is planned turn-over in the membership of the SAC and this year we were sorry to lose the services of Professor David Holden. The Institute owes him, and those who remain on the Committee, a debt of grati - tude for their magnificent efforts in selecting the Prize Fellows and maintaining such high standards. When members step down and after each application round we review the SAC membership to ensure that we have the right mix of expertise and seek to recruit new members appropriately. I am delighted to report that Professor Christoph Tang, Professor of Cellular Pathology at the University of Oxford and Professor Margaret Frame, Science Director, CRUK Edinburgh Centre and Director, MRC Institute of Genetics and Molecular Medicine (IGMM) have agreed to join the Committee. I very much hope that they will enjoy their time on the Committee and gain satisfaction from promoting the careers of young researchers. It was pleasing to see the Summer Studentship scheme strongly endorsed again by the Fellowship and we will continue to support twenty-five recipients. The scheme enables Lister Institute Fellows and former Fellows to offer places to out - standing undergraduate students who then have the opportunity to experience research in a first-rate laboratory. After the studentship is completed the Institute is sent both a scientific report and a personal statement on their experience by the student. In most cases it reinforces the student’s wish to go on to do research via PhD training, but in a few it identifies that a career in research is not for them. The former is clearly preferable, although both are satisfactory outcomes.

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2016 Lister Institute Research Prize Fellowship Winners The recipients of the 2016 Lister Research Prize Fellowships, who each received the amount of £200k, wer e:

Prize Winner Title of Research

Dr Cynthia Andoniadou Regulation of stem cell potential in the King’s College London mammalian pituitary gland

Dr Susana Godinho Regulation of paracrine signalling by Queen Mary University centrosome amplification of London

Dr Muzlifah Haniffa In vivo kinetics and functional response of Newcastle University human mononuclear phagocytes during acute tissue inflammation

Dr Jan Rehwinkel Z-RNA and Z-DNA: Novel inducers of University of Oxford antiviral immunity

Prof Daniel Smith Investigating the overlap between hyper- University of Glasgow tension and bipolar disorder to identify new and repurposed medications for bipolar disorder

Not e: The academic rank of each Prize winner is shown as at the date of the award.

10 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2016 Chairman’s Report

Current and Former Lister Institute Prize Fellows The following have been awarded Lister Institute Research Prize Fellowships since the inception of the Prize Fellowship scheme. This is an outstanding group of scientists and represents a major contribution to the well-being of UK biomedical researc h:

Fellow Title of Research Awarded

Dr M Madan Babu Dynamics of tRNA abundance and the regulation of 2014 MRC Laboratory of Molecular protein expression levels Biology, Cambridge

Dr Nina Balthasar Identifying the novel CREB coactivatorTORC2's role in the 2007 University of Bristol hypothalamic pathways controlling energy homeostasis

Dr Oliver Billker In search of the xanthurenic acid receptor of malaria 2004 The Wellcome Trust parasite s–a potential target for transmission control Sanger Institute, Cambridge

Dr Emmanuel Boucrot Mechanisms of cargo selection and vesicle formation in 2014 University College, London a novel pathway of endocytosis

Professor Nia Bryant Using yeast as a model system to understand the 2004 University of York insulin-dependent trafficking of GLUT4 in adipocytes

Dr Simon Bullock Mechanisms and neuronal functions of motor-driven 2008 MRC Laboratory of Molecular transport Biology, Cambridge

Professor Juan Burrone The role of neuronal activity during synapse formation 2009 Kings College London

Dr Vincenzo Costanzo The role of ATM and ATR in preventing genomic instability 2006 Cancer Research UK Clare Hall Laboratories

Professor Victoria Cowling Regulation and function of the 7-methylguanosine cap 2011 University of Dundee

Professor Daniel Davis Nanotubes and synapses in immune cell communication 2005 Imperial College, London

Professor Simon Draper Development of next-generation broadly-neutralising 2013 The Jenner Institute vaccines against the blood stage infection of human Oxford malarias

Continued overleaf

The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2016 11 Chairman’s Report

Fellow Title of Research Awarded

Professor Michael Eddleston Prevention of deaths from late respiratory failure in 2011 University of Edinburgh organo-phosphorus pesticide poisoning

Professor Sherif El-Khamisy The repair of oxidative and topoisomerase induced 2013 University of Sheffield chromosomal strand breaks and human disease Professor Rebecca Fitzgerald Translational research programme for prevention of 2008 University of Cambridge oesophageal adenocarcinoma Dr Agnieszka Gambus Identification and characterisation of Mcm7 2015 University of Birmingham ubiquitin ligase Dr Holger Gerhardt Endothelial guidance in vascular patterning 2008 VIB Vesalius Research Centre KU Germany Professor Fiona Gribble Secretion of incretin hormones from the mouse 2006 University of Cambridge intestine Professor Andrew Jackson Cellular pathways determining human brain size 2009 University of Edinburgh Dr Ragnhildur Karadottir The role of neuronal activity in myelin repair 2015 Welcome Trust-MRC Cambridge Stem Cell Institute Professor Josef Kittler Miro family proteins as regulators of synaptic bio- 2010 University College London energetics and a locus for mitochondrial dysfunction in neurological disease Professor Robert Klose Biochemical isolation and functional dissection of University of Oxford the CpG island proteome 2011 Dr David Komander Bacterial interference with the ubiquitin system 2012 MRC Laboratory of Molecular Biology, Cambridge Professor Paul Lehner The role of HSP70 in MHC Class 1 mediated antigen 2004 University of Cambridge presentation in human dendritic cells Professor David Lyons Elucidating mechanisms of myelinated axon formation, 2012 University of Edinburgh function and repair using zebrafish Professor Juan Martin-Serrano Functional parallels between HIV-1 budding and the 2008 King’s College London last step of cell division Professor Robin May The molecular basis of latency and dissemination 2010 University of Birmingham during cryptococcosis Dr Serge Mostowy Bacterial autophagy and the cytoskeleton in host defence 2015 Imperial College London

12 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2016 Chairman’s Report

Fellow Title of Research Awarded

Dr Akhilesh Reddy Peroxiredoxins and redox oscillations in the 2012 University of Cambridge circadian (24 hour) clockwork

Professor Tatjana Decoding gene regulatory circuits controlling 2013 Sauka-Spengler multipotency of neural crest Weatherall Institute of Molecular Medicine, Oxford Dr Melina Schuh Mechanisms of aneuploidy in human oocytes 2014 Max Planck Institute for Biophysical Chemistry, Germany Professor Kenneth Smith Control of infection and autoimmunity by an 2007 University of Cambridge inhibitory Fc receptor Fc γR11b Professor Grant Stewart Investigating the role of the RIDDLE syndrome 2009 University of Birmingham gene in promoting repair of DNA damage Dr Anne Straube Microtubule-actin crosstalk in cell migration 2013 University of Warwick Professor Tomoyuki Tanaka Mechanisms of kinetochore-microtubule 2005 University of Dundee interaction Dr Sarah Teichmann Decoding genetic switches in T helper cell 2010 The Wellcome Trust Sanger differentiation Institute and EMBL -EBI, Cambridge

Professor Chris Thompson Identifying and characterising genes that control 2005 University of Manchester cell fate choice and social behaviour Professor Daan van Aalten Structural mechanisms and specificity of O-GlcNAc 2006 University of Dundee signalling in the eukaryotic cell Dr Fiona Wardle Transcriptional control of mesodermal cell 2007 Kings College London differentiationin vertebrates Dr Erica Watson Mechanisms of folate metabolism during the trans- 2015 University of Cambridge generational inheritance of disease

Professor Steven West The nature, mechanism and function of RNA 2015 University of Exeter polymerase II modifications in health and disease

The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2016 13 Chairman’s Report

Fellowship Activities The annual meetings at Christ’s College in Cambridge are always exceptionally enjoyable events and 2016, being the 125th Anniversary of Lister, more than lived up to expectations with record attendance and a real sense of ‘occasion’. As part of the 125th celebrations the meeting started on Thursday afternoon with tea followed by a series of informative and interesting talks by ex-Fellows: Professor Geoffrey L Smith, Professor Rebecca Fitzgerald, Professor David Rice and Professor Michael Eddleston. We very much missed Thursday’s keynote speaker, Professor Sir Alec Jeffreys who, at the last minute, was unable to attend as a result of a surfing accident—the audience, although disappointed, could not help but be impressed by the reason for his absenc e!

Professor Sir Alex Markham visited Oxford to congratulate 2016 Research Prize winner Dr Jan Rehwinkel.

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The Guinness family has supported the Institute since its inception and it made the occasion even more memorable to have three members of that family present for the meeting and private dinner on Thursday. They were: Lord Iveagh, the Hon Rory Guinness (a current Governing Body member) and Mr Edward Guinness (a Governing Body member from 1968 to 2001). Thursday’s events concluded with a poster session, which provided current Fellows with an excellent opportunity to discuss their research and any concerns with the Institute’s senior scientists. The feedback from the Fellows, both past and current, was extremely positive and we will consider repeating this session in future years. Friday’s meeting followed the usual pattern with the new Prize Fellows having their baptism of fire by giving the first talks of the day. As ever, they impressed every body by the quality of their presentations and the underlying research. The diversity of science funded by the Lister can be clearly illustrated by the titles of the talk s:

Dr Cynthia Andoniadou Functions of pituitary stem cells in turnover and disease Dr Susana Godinho Paracrine mediated cell invasion by centrosome amplification Prof Muzlifah Haniffa Existential revolution within human mononuclear phagocytes: a case of lost identities Prof Jan Rehwinkel Nucleic acid sensing by innate immune receptors Prof Daniel Smith Investigating the overlap between mood disorders and cardiovascular disease in UK Biobank Dr Steven West Making and breaking RNA in human cells

The standard of these talks from the latest members of the ‘Lister Institute family’ set the benchmark for the rest of the meeting and delegates enjoyed excellent presentations from Dr Oliver Bilker (Functional analysis of a Plasmodium genome) and Professor Christopher Thompson, (Microbial game theory: multicoloured green - beards and investment games). Both gave clear and insightful talks demonstrating the importance of fundamental research in identifying the potential causes and treatment of disease. The 2016 Special Lister institute Lecture (Throwing some light on our genome)

The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2016 15 Chairman’s Report

Professor Muzlifah Haniffa (front row, third from left) with her research colleagues on the occasion of the visit to Newcastle University by Professor Sir Alex Markham and the Director, Kate Law (both top right) was given by Professor Wendy Bickmore, Director of the MRC Human Genetics Unit in Edinburgh. Professor Bickmore was a Lister Fellow between 1991 and 1996 when she became fascinated by the structure and organization of chromosomes in the nucleus and went on to show that different human chromosomes have preferred positions in the nucleus, related to their gene content. She described how, despite its immense length, the linear sequence map of the human genome is an incom - plete description of our genetic information. This is because information on genome function and gene regulation is also encoded in the way that the DNA sequence is folded up with proteins within chromosomes and within the nucleus. Her team’s work, using a multi-disciplinary approach, tries to understand the three- dimensional folding of the genome, how this controls how our genome functions in normal development and how this may be perturbed in disease. In accordance with tradition, delegates convened for pre-dinner drinks on the Christ’s lawn with, to mark the 125th anniversary, Guinness generously provided by the Hon Rory Guinness—even the drizzle couldn’t dampen the moo d! The usual excellent dinner followed, with the new Prize Fellows presented with their scrolls and welcomed into th e‘Lister family’.

16 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2016 Chairman’s Report

Conclusion It was a pleasure and a privilege to be ‘at the helm’ for the 125th anniversary of the Lister Institute. The two-day meeting in Cambridge was a huge success with the additional meeting on Thursday allowing plenty of time for old and new friends and colleagues the chance to catch up on news in an informal setting. The anniversary publication, while in no way competing with the Lesley Collier book on the Lister, offers a colourful and interesting update on the history and achievements of the Institute. As ever, one of the highlights of the year for me has been listening to the Prize Fellows giving seminars in their own departments, hearing how the award has helped them develop their research groups and talking to other members of their departments about the research environment and funding issues. To all of those Fellows and their host institutions, Kate Law and I would like to express our thanks for their hospitality and ongoing support of the Fellows. It is clear that the flexibility which the Fellowship gives to young group leaders to bridge positions, bring in particular expertise or obtain essential items of equipment can often be a lifeline for their laboratory whilst they battle for ever more competitive and restrictive grant funding from other agencies. We will, in future, be monitoring the impact of BREXIT on the Fellowships and on the university sector in general. The strength of the Institute lies in the people associated with it, whether they be Trustees, Members of the Governing Body and its sub-committees, the Membership, our Fellows or the staff. To all I offer my sincere thanks. ALEX MARKHAM Chairman

Prof Sir Alex Markham (right) with Prof Doug Higgs (centre) and Prof Jan Rehwinkel by the Isis at Oxford

17 .The 2016 Annual Fellows’ Meeting at Christ’s College, Cambridge

Above : The Hon. Rory Guinness serves a welcome glass to Professor Daniel Smith.

Dr Madan Babu Professor Darren Monckton Dr Anne Straube Dr Ragnhildur Karradottir

18 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2016 Left: Lunch provided an opportunity to discuss Friday morning’s talks.

Above: The Hon. Rory Guinness enjoys a refreshing drink with Professors Daniel Smith and David Lyons.

Left (l-r ) : 2016 Research Prize winners Dr Cynthia Andoniadou and Dr Susana Godinho receive their scrolls from Professor Sir Alex Markham at the Cambridge meeting, flanked by Professors Robin May and Jeremy Derrick.

Prof Tatjana Sauka-Spengler Professor Muzlifah Haniffa Mr Michael French, Treasurer Dr Stephen Inglis

The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2016 19 REPORT OF THE GOVERNING BODY for the year ended 31 December 2016

The Governing Body presents its Annual Report by the Governing Body and there are currently under the Charities Act 2011 together with the four such appointees. One additional member audited Financial Statements of the Charity for is Lord Iveagh’s representative, another is the year ended 31 December 2016. The Financial Professor Sir Alec Jeffreys who was appointed to Statements have been prepared in accordance life-membership, and the final member, Professor with the accounting policies set out in Note 1 Cheryll Tickle, is the representative of the Royal (page 31) to the Financial Statements and com - Society. Trustees, other than the two nominated ply with the Companies Act 2006, the FRS102 representatives, Professor Sir Alec Jeffreys and Charities SORP and the documents governing exceptionally those appointed by the Governing the constitution of the Charity. Body, generally serve for a maximum of six years and a system of planned rotation is in place. LEGAL AND ADMINISTRATIVE DETAILS Currently two positions are deliberately being Legal and administrative information is set out kept vacant. When considering appointment or on pages 3 and 4 of this report. nomination for election as Trustees, the Govern - ing Body has regard to the specialist skills Members of the Governing Body, Directors and needed. Trustees The members of the Governing Body are, for Induction and training of Trustees the purposes of company law, Directors of the New Trustees undergo induction sessions with Institute and, for the purposes of charity law, the Chairman, Treasurer and Director during Trustees of the Institute and throughout this which they will gain an understanding of the report are collectively referred to as the Institute’s structure, activities, financial position Trustees. Details of the Trustees serving and future strategies. Prior to appointment they throughout the year, unless otherwise stated, will attend, as‘observers’, one meeting of the are set out on page 3. Governing Body. New Trustees will also be made aware of their legal obligations with STRUCTURE, GOVERNANCE AND regard to charity and company law. In addition, MANAGEMENT new Trustees will be advised of appropriate literature and training courses. Constitution The Institute is registered with the Charity Organisation Commission for England and Wales (registration The Institute is governed by its Governing Body number 206271). It is incorporated and regis - which is responsible for setting policies, autho - tered in England and Wales under the rising actions on all significant operational Companies Act 2006 as a company limited by issues and ensuring legality and good practice. guarantee and not having a share capital The Governing Body meets formally twice a (company number 34479). It is governed by its year. Articles of Association and has charitable status. Specific authorities are delegated to two sub- Committees in particular areas. The Scientific Appointment and re-appointment of Trustees Advisory Committee (see page 4 for member - The Trustees are the fifteen members of the ship) has responsibility for the selection of the Governing Body of whom six are appointed by Lister Institute Prize Fellows and the monitoring the members at the annual general meeting. of their scientific activities, as well as providing A maximum of six further Trustees are appointed scientific and medical advice to the Governing

20 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2016 Report of the Governing Body

Body as required. In 2015 the peer review . Formal written policies processes of the SAC were audited by the Asso - . Clear authorisation and approval levels ciation of Medical Research Charities and found . Regular review of Fellows’ scientific reports to be meeting the highest standards. The The specific risk of bribery associated with any Finance and Investment Committee (see page 4 of the Institute’s activities has been reviewed, for membership) has responsibility for inter- and clear policies and procedures have been action with the Institute’s investment advisors, developed and communicated to all Trustees, ensuring implementation of the Institute’s staff and Members. investment policy and monitoring performance. The specific risk of scientific misconduct by It prepares and submits to the Governing Body Lister Fellows has been reviewed by the Trustees the annual budget, and subsequently monitors and, as a result, minor amendments have been performance against it. It also advises the made to the risk log. Governing Body, as required, on other financial The Institute maintains a‘Register of Interests’ and risk matters. for all Governing Body and committee members The routine management of the Institute’s as well as principal staff and operates a clear activities is undertaken by its Director, aided by ‘declaration of interests’ policy and procedures the Administrator and the Accountant. All staff for all meetings. work from home. The principal risk facing the Institute lies in its In the year ending 2016 none of the Charity’s ability to maintain and protect the value in real Trustees have received any remuneration or any terms of its investments and to generate from other benefits in relation to their dealings with them, on a long-term basis, a consistently high the Charity. overall return. This risk is mitigated by the Insti - The Chairman and the Treasurer of the Charity tute’s appointment of experienced investment agree the Director’s remuneration that, along managers with a proven track record; by internal with other Lister Institute staff, is normally controls that allow close and regular monitoring increased in line with RPI. Salaries are also com - of their performance against benchmarks; by pared to similar organisations and adjusted the Institute’s requirement of its investment where appropriate. In 2016, the Director, instead managers to re-tender periodically and compet - of an increase based on RPI, received a bonus itively for appointment— the last review was in payment in recognition of the additional work - October 2012 and the next is planned for 2017, load associated with the 125th anniversary and by regular meetings that formally review activities. investment performance and policy, and include one-to-one presentations by the invest - Risk Management ment managers. The Trustees assess the risks facing the Institute Investment Policy Statements are in place for and review the effectiveness of the controls to the Lister Institute and its investment partners. monitor and mitigate them. A Risk Manage - These are reviewed on an annual basis. ment Register is maintained and formally reviewed annually by the Governing Body. Objectives and activities The key controls used by the Institute includ e: The statutory Object of the Institute is to further . Formal agendas for all Governing Body understanding and progress in preventive meetings medicine by promoting excellence in bio- . Strategic planning, budgeting and medical research in the UK. management accounting When founded in 1891, the Institute sought

The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2016 21 Report of the Governing Body

to achieve this objective by establishing a Fellows are undertaking high quality research research institute specialising in the area of and producing new knowledge that will con - ‘infections’ and their prevention by immunisa - tribute significantly to our understanding of tion and other means. It complemented these disease, its causes, treatment and prevention. research activities by the production and supply The reports of the research undertaken by the of materials such as vaccines and anti-toxins. Summer Students have also been reviewed and The Institute continued in this mode until the found to be very satisfactory. late 1970s when increasing financial and regula - Five Lister Institute Prize Fellowships were tory pressures caused the cessation of these awarded in 2016 to Drs Cynthia Andoniadou, activities. Proceeds from the resultant sale of Susana Godinho, Muzlifah Haniffa, Jan land and buildings created the investment Rehwinkel and Daniel Smith, from an initial field funds from which present-day activities are of 99 applicants, following extensive scientific financed; at 31 December 2016 these funds review of their applications and final interview stood at £41.49m. by the Scientific Advisory Committee. (More From the 1980s the Institute has pursued its details of the Prize Fellows and their research objective by the provision of grant funding to are provided on page 10). Each Prize Fellowship facilitate the research and careers of high quality provides £200k that may be spent over five individuals working in areas of biomedicine years on the recipient’s research, although the relevant to preventive medicine. It has done funds are provided to the host institution at the this because it believes that the acquisition and commencement of the award. advancement of knowledge is crucial to the Twenty-five Summer Studentships were understanding of health and disease and that awarded in 2015. Each is a £2k student bursary research to achieve this is driven forward by and is paid to the host institution at the com - high quality individuals and their supporting mencement of the award for the support of the staff. student for up to a ten-week period. The Institute maintained its commitment to Principal activities fostering scientific interchange and collabora - In pursuance of this objective, during 2016 the tion within the Fellowship by holding its 32nd Institute awarded five new Prize Fellowships. In Annual Research Fellowship meeting at Christ’s addition, the Institute has continued its Summer College, Cambridge. This meeting was also used Studentship scheme that enables up to twenty- to celebrate the 125th anniversary of the Lister five undergraduates per year to work with Lister Institute. Institute Fellows or former Fellows in order to gain experience of biomedical research with the Public Benefit hope that they might consider it as a career. In so far as the statutory objectives, aims and activities of the Lister Institute of Preventive Achievement and Performance Medicine are to further understanding in preven - The Scientific Advisory Committee has moni - tive medicine by promoting biomedical research tored the performance of the current 20 Lister as set out on page 21 of this Report, the Trustees Institute Prize Fellows, through detailed review have considered the Charity Commission’s of the annual reports on their research that guidance on public benefit, including the guid - include details of all publications and presenta - ance‘Public benefi t: running a charity (PB2)’. tions. The Scientific Advisory Committee has The public benefit of the Institute’s grant- reported to Trustees that it is of the view that all making is clearly identifiable in the‘Achieve -

22 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2016 Report of the Governing Body

ment and Performance’ paragraphs above and Investment policy and performance in the list of Research Prize Fellows, together The Institute’s investment objective is to develop with their areas of research, on pages 10 to13 of and maintain its financial resources through the the Chairman’s report. All Lister Institute Fellows selection of investments, consistent with an are actively encouraged, where appropriate, to acceptable level of risk. develop their research findings for potential The Institute’s investment portfolio is split public benefit and the Scientific Advisory Com - between Cazenove Capital Management and mittee has regard to this when reviewing their Partners Capital LLP who both operate under research reports. The Lister Institute therefore mandates agreed in advance with the Finance benefits the public or a sector of it without im - and Investment Committee. These mandates posing any restrictions. Applications from indi - set out an overall target asset allocation with viduals are accepted only when demonstrably allowable ranges for each category of asset. consistent with the charitable objectives of the Both investment managers invest on a total Institute. returns basis through a variety of pooled funds and in accordance with the Institute’s overarch - Impact ing‘Investment Policy Statement’ (IPS), which The impact of the activities of a medical research states the overall investment objective and sets charity can be measured at many levels ranging the investment return objectives, the risk para- from the growth of knowledge to direct patient/ meters, the performance measures and review public benefit. procedures for the portfolio. The Institute’s IPS Often the transition from the former to the was revised in the autumn of 2013 and again in latter may take many years and the involvement 2015, as a result of the establishment of the of several organisations. The Institute requires liquidity reserve. Specific versions were also that the results of the research it supports are agreed for each of the investment managers to published and disseminated; that, where appro - reflect their individual investment approaches. priate, significant intellectual property is pro - The IPSs are reviewed annually. The investment tected via patents; and that its commercial managers are informed at the beginning of the development is encouraged. Several biotech - financial year of the Institute’s likely cash nology companies have been formed around requirements, both in terms of the amount and the findings of Institute-sponsored research and the timing of any draw-down, and are asked to there are several interactions with large pharma - keep in an income or cash account sufficient ceutical companies. funds to meet them. The Institute has in place A prime example of the impact of research is an ethical investment policy which does not DNA fingerprinting, which was discovered by permit direct investment in tobacco or tobacco- Sir Alec Jeffreys when a Lister Institute Fellow related companies. and has become an integral part of society, The Institute’s overall financial return objec - helping to prove innocence or guilt in criminal tive is to preserve and if possible enhance the cases, resolving immigration arguments and purchasing power of its portfolio assets, net of clarifying paternity. costs and approved withdrawals, over rolling In 2016 the Lister Institute benefitted from a three-year periods. This goal is synonymous share in the commercialisation of research it with the pursuit of a time-weighted net return funded many years ago, via sales of shares in a on portfolio assets that equals and if possible spin-out company, TauRX, established by Professor exceeds cost inflation as measured by the UK Claude Wischik, a former Fellow (see page 8). Consumer Price Index plus the Institute’s long-

The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2016 23 Report of the Governing Body

term spending rate of 3-4% measured over awarded each year. In 2016, due to the substan - corresponding three-year periods. This goal has tial increase in the value of the investment port - been achieved over the most recent three-year folio and good returns, the Trustees felt able to, period. once again, award five Prizes and to maintain The performance of the investment portfolio their value at £200k each. The Summer Student- is reviewed by the Finance and Investment ship scheme at a total cost of £50k can be re - Committee, which had two meetings in the year viewed each year with regard to both number with the investment advisors to review perform - and value. Twenty-five were funded this year. As ance, liquidity within the portfolio, and the due previously described, a £5m portfolio has been diligence undertaken on potential new invest - established to ensure that the number and level ment vehicles. In addition the Institute receives of awards is sustainable over a minimum of five detailed quarterly valuation and transaction years. reports. In a year that saw moderate stock mar - Payments are currently made to five pensioners ket growth the fund has risen from £38.57m to who are previous employees of the Lister Institute. £41.49m. A decision, taken in 2015, to withdraw and place £5m in a Liquidity Account was based Reserves policy both on the recent strong growth of the port- The policy of the Trustees is to maintain ade - folio but also concerns about future market quate financial resources to provide income to volatility and performance. A further decision meet current and future commitments as they was taken this year to maintain £5m in this fall due and ensure that adequate funds remain Account, on a rolling basis, to be reviewed available to enable them to make awards in annually. This decision will ensure that five Prize perpetuity. fellowships can be awarded for at least five The adequacy of the level of reserves years from 2016. (£41.49m in 2016) and the continuing appropri - More details of the Institute’s activities are set ateness of the policy are reviewed on an annual out in the Chairman’s Report on pages 5 to 17. basis by the Trustees. As the current level of investments now exceeds that of 2015, they feel FINANCIAL REVIEW satisfied with the policy over the long-term and, given that the Institute is not formally commit - Allocation of resources ted to awarding any Prizes beyond the current The Institute, which does not seek to raise funds year, are confident in the ability of the Institute from the public, depends primarily on investment to maintain appropriate levels of activity in the returns to meet its pension provision payments, short-term. administrative expenditure and expenditure in furtherance of the Charity’s objectives. The total Plans for the future return on investments for the year was realised/ The Institute’s future policy is to continue to unrealised gains of £3.633m and investment pursue its current objectives. It will therefore income of £686k. maintain the Prize Fellowship scheme, which it The resources expended totalled £1.291m of sees as a funding priority. The Summer Student- which £1.060m were resources expended for ship scheme will also be maintained together the Institute’s charitable activities. with the opportunity for schools to receive talks The Prize Fellowships are fixed sum awards from the Institute’s Fellowship on science and and therefore, expenditure can be regulated by biomedical subjects as part of an‘outreach’ altering the number and/or value of prizes programme.

24 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2016 Report of the Governing Body

Trustee Responsibilities Statement The Trustees are responsible for keeping proper The Trustees (who are also directors of The Lister accounting records that disclose with reason - Institute of Preventive Medicine for the purposes able accuracy at any time the financial position of company law) are responsible for preparing of the charitable company and enable them to the Trustees’ Annual Report and the financial ensure that the financial statements comply statements in accordance with applicable law with the Companies Act 2006. They are also and United Kingdom Accounting Standards responsible for safeguarding the assets of the (United Kingdom Generally Accepted Accounting charitable company and hence for taking Practice). reasonable steps for the prevention and detec - Company law requires the Trustees to prepare tion of fraud and other irregularities. financial statements for each financial year, In so far as the Trustees are aware: which give a true and fair view of the state of . there is no relevant audit information of which affairs of the charitable company, and of the in - the charitable company’s auditor is unaware; coming resources and application of resources, and including the income and expenditure, of the . the Trustees have taken all steps that they charitable company for that period. In prepar - ought to have taken to make themselves aware ing these financial statements, the Trustees are of any relevant audit information and to estab - required to: lish that the auditor is aware of that information. . select suitable accounting policies and then The Trustees are responsible for the main- apply them consistently; tenance and integrity of the corporate and . observe the methods and principles in the financial information included on the charitable Charities SOR P; company’s website. Legislation in the United . make judgments and estimates that are Kingdom governing the preparation and reasonable and prudent; dissemination of financial statements may differ . state whether applicable UK Accounting from legislation in other jurisdictions. Standards have been followed, subject to any material departures disclosed and explained By Order of the Governing Body in the financial statements; and . prepare the financial statements on the going SIR ALEX F MARKHAM MR MICHAEL FRENCH concern basis, unless it is inappropriate to Chairman Treasurer presume that the charitable company will continue in business. 28 April 2017

The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2016 25 INDEPENDENT AUDITOR’S REPORT to the members of the Lister Institute of Preventive Medicine

We have audited the financial statements of the amounts and disclosures in the financial The Lister Institute of Preventive Medicine for statements sufficient to give reasonable assur - the year ended 31 December 2016 which com - ance that the financial statements are free from prise the Statement of Financial Activities, the material mis-statement, whether caused by Balance Sheet, the Cash Flow Statement and fraud or error. This includes an assessment o f: the related notes. The financial reporting whether the accounting policies are appropri - framework that has been applied in their pre- ate to the charitable company’s circumstances paration is applicable law and United Kingdom and have been consistently applied and Accounting Standards (United Kingdom adequately disclosed; the reasonableness of Generally Accepted Accounting Practice) significant accounting estimates made by the including FRS10 2: ‘The Financial Reporting Trustees; and the overall presentation of the Standard Applicable in the UK and Ireland’. financial statements. In addition we read all This report is made solely to the charitable the financial and non-financial information in company's members, as a body, in accordance the Annual Report to identify material inconsis - with Chapter 3 of Part 16 of the Companies Act tencies with the audited financial statements, 2006. Our audit work has been undertaken so and to identify any information that is appar - that we might state to the company’s members ently materially incorrect based on, or those matters we are required to state to them materially inconsistent with, the knowledge in an auditor’s report and for no other purpose. acquired by us in the course of performing the To the fullest extent permitted by law, we do audit. If we become aware of any apparent not accept or assume responsibility to any material mis-statements or inconsistencies we party other than the charitable company and, consider the implications for our report. charitable company's members as a body, for our audit work, for this report, or for the opin - Opinion on financial statements ions we have formed. In our opinion, the financial statement s: . give a true and fair view of the state of the Respective responsibilities of Trustees charitable company’s affairs as at 31 December and Auditor 2016 and of its incoming resources and As explained more fully in the Trustees’ Respon - application of resources, including its sibilities Statement, the Trustees (who are also income and expenditure, for the year then the directors of the charitable company for the ende d; purposes of company law) are responsible for . have been properly prepared in accordance the preparation of the financial statements and with United Kingdom Generally Accepted for being satisfied that they give a true and fair Accounting Practice; and view. Our responsibility is to audit and express . have been prepared in accordance with the an opinion on the financial statements in requirements of the Companies Act 2006. accordance with applicable law and Inter- national Standards on Auditing (UK and Ireland). Opinion on other matters prescribed by the Those standards require us to comply with the Companies Act 2006 Auditing Practices Board’s (APB’s) Ethical In our opinion, based on the work undertaken Standards for Auditors. in the course of the audit: . the information given in the Trustees’ Annual Scope of the audit of the financial statements Report for the financial year for which the An audit involves obtaining evidence about financial statements are prepared is consistent

26 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2016 Independent Auditor’s Report

with the financial statements; and . we have not received all the information and . the Trustees’ Annual Report has been pre- explanations we require for our audit; or pared in accordance with applicable legal . the Trustees were not entitled to prepare the requirements. financial statements in accordance with the small companies regime and take advantage Matters on which we are required to report by of the small companies exemption in pre- exception paring the Trustees’ Annual Report and from In the light of the knowledge and understanding preparing a Strategic Report. of the charitable company and its environment obtained in the course of the audit, we have not identified material mis-statements in the Trustees’ Annual Report. We have nothing to report in respect of the following matters where Nicholas Brooks (Senior Statutory Auditor) the Companies Act 2006 requires us to report to for and on behalf of Kingston Smith LLP, you if, in our opinio n: Statutory Auditor . adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited Devonshire House by us; or 60 Goswell Road . the financial statements are not in agreement London with the accounting records and returns; or EC1M 7AD . certain disclosures of Trustees’ remuneration specified by law are not made; or 28 April 2017

The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2016 27 STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2016

Notes 2016 2015 £’000 £’000 Income from

Investments 2 686 730 Other 3 103 9 Total income 789 739

Expenditure on Costs of raising funds: Investment management costs 4 (231) (238) Charitable Activities: Prizes & Summer Studentships 6 (1,060) (1,224) Total expenditure (1,291) (1,462)

Net gains on investment 9 3,633 920 Net income 3,131 197

Other recognised gains/(losses) : Actuarial losses on defined benefit schemes 13 (9) (11) Net movement in funds 3,122 186

Reconciliation of funds: Total funds brought forward 38,524 38,338 Total funds carried forward 41,646 38,524

All items in the above Statement of Financial Activities relate to continuing operations for both years. The Institute has no other recognised gains and losses other than as stated above and hence no separate income and expenditure statement has been shown.

The Notes set out on pages 31 to 38 form part of these financial statements.

28 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2016 BALANCE SHEET as at 31 December 2016 Company no. 34479

Notes 2016 2015 £'000 £’000 Fixed assets Investments 9 41,492 38,568 Total fixed assets 41,492 38,568

Current asset s Debtors 10 193 10 Cash at bank and in hand 11 193 155 Total current assets 386 165

Current liabilities Creditor s: amounts falling due within one year 12 (64) (32) Net current asset s 322 133

Total assets less current liabilities 41,814 38,701

Creditor s: amounts falling due after more than one year Pension provision 13 (168) (177) Net assets 41,646 38,524

Represented by Restricted funds - - Unrestricted funds 14 41,646 38,524 Total charity funds 41,646 38,524

The Trustees have taken advantage of the exemptions conferred by the Companies Act 2006, on the grounds that the Institute is entitled to the benefit of those exemptions as a small company.

These financial statements were approved by the Governing Body on 28 April 2017.

ALEX F MARKHAM Members of the MICHAEL FRENCH Governing Body

The Notes set out on pages 31 to 38 form part of these financial statements.

The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2016 29 CASH FLOW STATEMENT as at 31 December 2016

2016 2015 £’000 £’000 Cash flow/(outflow) from operating activities Net cash (used in)/provided by operating activities (1,348) (1,653)

Cash flows from investing activities Investment income 686 730 Interest paid (9) (11) Proceeds from disposal of fixed asset investments excluding endowment funds 7,165 14,534 Acquisition of fixed asset investments excluding endowment funds (6,154) (17,556) Other movements on investments (302) 2,670 38 (1,286)

Net increase/(decrease) in cash and cash equivalents 38 (1,286) Cash and cash equivalents at beginning of year 155 1,441 Cash and cash equivalents at end of year 193 155

2016 2015 £’000 £’000 Reconciliation of net income/(expenditure) to net cash flow from operating activities

Net income 3,131 197

Adjustments fo r: Net (gains)/losses on investments (3,633) (920) Investment income (686) (730) (Increas e)/decrease in debtors (183) 38 Increas e/ (decrease) in creditors 32 (231) (Decrease )/ increase in pensions (9) (7) Net cash (used in)/provided by operating activities (1,348) (1,653)

The Notes set out on pages 31 to 38 form part of these financial statements.

30 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2016 NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2016

1 PRINCIPAL ACCOUNTING POLICIES

Basis of preparation The Financial Statements have been prepared in accordance with the Statement of Recommended Practice, Accounting and Reporting by Charities (FRS102 SORP). The Financial Statements are prepared in accordance with the historical cost convention modified by the revaluation of investments.The charity is a Public Benefit Entity as defined by FRS102. The principal accounting policies adopted in the preparation of the Financial Statements are as follow s:

Income All incoming resources are accounted for on a receivable basis.

Prizes and summer studentships The cost of Research Prize Fellowships is charged in the year awarded.

Expenditure The costs of raising funds include those fees payable to the Institute’s investment fund managers for the man - agement of the Institute’s investment portfolio. These are accounted for on an accruals basis. Charitable activities comprise all expenditure directly relating to the objects of the charity and are accounted for on an accruals basis. The allocation of expenditure between governance and management, administration and support costs is reviewed on an annual basis to ensure the allocation is appropriate. Indirect costs are generally treated as falling into the latter category with the exception of a proportion of salary and related costs, which have been classified as governance costs. In addition to auditor’s remuneration, governance costs comprise the proportion of staff costs associated with the time spent on the preparation of the statutory accounts and other governance issues, together with honoraria remuneration provided to members of the Institute’s Scientific Advisory Committee for their duties in selecting the Prize Fellows.

Supplementary pensions and staff pensions An estimate of the full provision is made in the Financial Statements for the costs of future supplementary payments. The provision and charge to income are reviewed annually by theTrustees in the knowledge that the number of persons receiving the supplementary pensions will not increase.The pension costs are assessed in accordance with actuarial advice and these costs are accounted for in accordance with FRS102 SORP. Existing employees participate in a defined contribution scheme, the costs of which are expensed as incurred. These disclosures are made in accordance with FRS102 SORP.

Investments Investments are shown at market value in the balance sheet. Changes in the market value are included in the Statement of Financial Activities as realised and unrealised investment gains or losses in the year in which they arise. Investments denominated in foreign currencies are valued at year-end rates of exchange.

Cash flo w statem ent The Charity has included a cash flow statement in accordance with FR S102 SORP.

Note 1 continues overleaf

The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2016 31 Notes to the Financial Statements

1 PRINCIPAL ACCOUNTING POLICIES continued

Taxation The organisation is a registered charity and has obtained exemptions from taxation under Part 11, Chapter 3 of the Corporation Tax Act 2010. This exemption will remain as long as income is compatible with that section and expenditure is applied to charitable purposes only.

Critical accounting estimates and areas of judgement In preparing financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements. The Trustees consider the estimates involved in the valuation of investments to have most significant effect on amounts recognised in the financial state - ments. These are taken directly from Investment Managers’ reports. In addition the company has an obligation to pay pension benefits to certain employees. The cost of these benefits and the present value of the obligation depend on a number of factors includin g: life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. Management estimates these factors in determining the net pension obligation in the balance sheet. The assumptions reflect historical experience and current trends. See Note 13 for the disclosures relating to the defined benefit pension scheme.

Going Concern The Trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The Trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. After making enquiries, the Trustees have concluded that there are no material uncertainties that cast significant doubt on the charity’s ability to continue as a going concern. The charity therefore continues to adopt the going concern basis in preparing its financial statements.

Financial instruments The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS102 to all of its financial instruments. Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with 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 in - tention to settle on a net basis or to realise the asset and settle the liability simultaneously. With the exceptions of prepayments and deferred income all other debtor and creditor balances are considered to be basic financial instruments under FRS 102. See Notes 10 and 12 for the debtor and creditor notes.

Fund accounting Restricted funds are funds available subject to specific restrictions imposed by donors. Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the Foundation.

32 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2016 Notes to the Financial Statements

2 INVESTMENT INCOME 20 16 20 15 £'000 £’000 Income from fixed asset investments 686 726 Bank interest receivable - 4 686 730

3 OTHER INCOME 2016 20 15 £'000 £’000 Royalty income 94 9 Donations 9 - 103 9

Royalty income is earned from Cancer Research Technology as a result of Revenue sharing related to Mammalian Cell research studies £9k (2015: £9k) and MRC from sale of shares in TauRX £85k (2015: nil) . Donations were received in the year from The Wellcome Foundation £8k (2015:nil) and The Launchentilly Charitable Foundation £1k (2015: nil) the use of which was restricted to supporting the costs of the 125th anniversary event in Cambridge, (Note 14). Immaterial restricted income, as noted above, is not shown separately on the Statement of Financial Activities on page 28.

4 INVESTMENT MANAGEMENT COSTS 20 16 20 15 £'000 £’000 Partners Capital LLP 121 141 Cazenove Capital Management 110 97 Total investment management fees 231 238

Investment management fees referred to here are those accrued fees relating to the management of the Institute's investment portfolios in 2016.

The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2016 33 Notes to the Financial Statements

5 GOVERNING BODY AND STAFF COSTS Emoluments of members of the Governing Body No member of the Governing Body received any emoluments in respect of services to the Institute during the year (2015: nil) . Travel expenses of £1,897 were paid relating to the claims of nine members in connection with their attendance at meetings (2015: £1,358, six members) . Members of the Governing Body who are also members of the Scientific Advisory Committee receive remuneration in relation to their services to the committee. An honorarium of £1,500 (2015: £1,500) was paid to one of the members, the remainder all received £1,000 (2015: £1,000)

Employee information The average number of persons employed by the Institute during the year was three (2015: four) , two of whom are part-time (2015: three) . All staff were employed in an administrative and support capacity. No employees earn over £60k p.a. (2015: nil) . Key management personnel include the Trustees and the Director. In 2015 the Director-designate was also included. The total employee benefits of the charity’s key management personnel were £46,500 (2015: £61,880) .

Staff costs 20 16 20 15 £’000 £’000 Gross salaries 85 97 Pension contributions 3 3 Employer’s national insurance 6 6 94 106 The salary costs are allocated under governance where related to statutory accounts preparation, the balance being reported within charitable activities.

6 PRIZES & SUMMER STUDENTSHIPS 20 16 20 15 £’000 £’000 Prize awards 817 1,000 Summer Studentship payments 50 50 Support costs (see Note 7) 79 50 Salaries (see Note 5) 82 93 Governance costs (see Note 8) 32 31 1,060 1,224

34 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2016 Notes to the Financial Statements

7 SUPPORT COSTS 20 16 20 15 £’000 £’000 Office expenses 12 10 Travel expenses 4 4 Professional fees 4 4 Honoraria and events 50 23 Pension costs (see Note 13) 9 9 79 50

These costs are all considered to be costs to support resources expended on charitable activities. For 2016 Honoraria and events includes gross expenditure for the 125th anniversary in Cambridge which is partly expenditure relating to restricted funds as disclosed in Note 14. Immaterial restricted expenditure as stated above is not shown separately on the Statement of Financial Activities on page 28.

8 GOVERNANCE COSTS 20 16 20 15 £’000 £’000 Auditors’ remuneration 11 10 Staff costs (see Note 5) 13 13 Honoraria and events 8 8 32 31

No non-audit services were provided by the auditors during the year (2015: none ). Auditor’s remuneration includes irrecoverable VAT.

9 INVESTMENTS Listed investments are valued at middle market quotations ruling at the year-end 20 16 20 15 £’000 £’000 Market value at beginning of year 38,568 37,296 Purchases during the year at cost 6,151 17,556 Proceeds of sales during the year (7,162) (14,534) Reinvested income for the year 550 557 Movement in un-invested cash 952 (3,127) Cash withdrawn (1,200) (100) Net change in market value 3,633 920 Market value at year-end 41,492 38,568

Note 9 continues overleaf

The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2016 35 Notes to the Financial Statements

9 INVESTMENTS continued

The portfolio’s asset allocation was as follow s: 20 16 20 15 £’000 £’000 UK investments Equities 8,200 6,584 Fixed interest 5,043 4,977 Other (including private equity, property, commodities, alternatives and inflation-linked bonds) 7,723 7,191 Cash 813 681 Total UK investments 21,779 19,433

Non-UK investments Equities 8,322 8,323 Other (including private equity, property, commodities and alternatives) 11,017 10,639 Cash 374 173 Total non-UK investments 19,713 19,135

Total 41,492 38,568

At 31 December 20 16 no single shareholding exceeded 5% of the total value of investments (2015: none ). Historical cost related to the closing position of 2016 was £31.1m (2015: £30.7m ).

10 DEBTORS 2016 2015 £'000 £'000 Prepayments 1 1 Accrued income 9 9 Other debtors 183 - Total 193 10

11 CASH 2016 20 15 £'000 £’000 Cash at bank 193 155

36 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2016 Notes to the Financial Statements

12 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2016 20 15 £'000 £’000 Taxation and social security 4 4 Accruals 60 28 Total creditors falling due within one year 64 32

13 PROVISION FOR LIABILITIES AND CHARGES This represents a provision for future supplementary pension payments, in respect of ex-employees, based on their salary and length of service. The pensions are unfunded, with payments made out of the Institute’s funds as they fall due. Movements in the pension provision during the year were as belo w: 20 16 20 15 £'000 £’000 Liability at beginning of period 177 184 Plus interest cost 9 9 Plus actuarial gains and losses 9 11 Benefits paid (27) (27) Liability at end of period 168 177

The tables below state the FRS102 actuarial assumptions used to estimate the pension provision. Principal actuarial assumptions Valuation at 31 December 2016 20 16 2015 Rate of increase to pensions in payment 3.0% 3.0% Rate used to discount scheme liabilities 5.0% 5.0%

The post-retirement mortality assumption uses the PCA00 base tables (year of birth) with improvements equal to medium cohort with a 1% minimum.

37 Notes to the Financial Statements

14 RESTRICTED FUNDS At 01.01.16 Income Expenditure At 31.12.16 £'000 £'000 £'000 £'000 Restricted Funds - The Wellcome Foundation -8 8 - The Lauchentilly Charitable Foundation - 1 1- -9 9 -

These restrictive funds were in respect of 2 donations detailed in Note 3 that were specifically given as con - tributions towards the Lister Institute’s 125th anniversary event in Cambridge in September 2016 (2015: nil) .

15 RELATED PARTY TRANSACTIONS

There were no related party transactions in the year (2015: none) other than disclosed.

38 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2016 Designed and produced by Alec Just Print and Design Aston Clinton Bucks HP22 5EE The Lister Institute of Preventive Medicine Nu rturing the future leaders in biomedical research

ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31 December 2017

The Lister Institute of Preventive Medicine is a company limited by guarantee (England 34479) and a registered charity (206271) The Institute was founded in 1891 and for the next 80 years played a vital role in the development of the laboratory aspects of preventive medicine as an independent research institute in the UK.

Financial pressures in the 1970s led to the closure of the research and production facilities and the conversion of the Lister Institute into a highly successful trust awarding prestigious Research Fellowships from 1982 which in 2003, again because of financial pressures, were revised to become Prize Fellowships.

The cover portrait of Lord Lister reproduced by courtesy of the Royal Veterinary College LEGAL AND ADMINISTRATIVE INFORMATION for the year ended 31 December 2017

THE GOVERNING BODY Professor Sir Alex Markham, DSc, FRCP, FRCPath, FMedSci, Chairman Mr Michael French, BS c(Eng), FCA, Hon Treasurer Professor Judith Armitage, BSc, PhD, FRS Professor Wendy Bickmore, BA, PhD, FMedSci, FRS, FRSE Professor Sir Adrian P Bird, CBE, FRS, FRSE Professor Rebecca Fitzgerald, MD, FRCP, FMedSci Hon Rory M B Guinness, BA, FCIM Professor Douglas Higgs, MBBS, MRCPath, DSc, FRCP, FRCPath, FRS Mr Andrew Hutton, MA, CFA Professor John Iredale, FRCP, FMedSci, FRSE (appointed 8 September 2017) Professor Sir Alec J Jeffreys, CH, DPhil, FMedSci, FRS Professor Patrick Maxwell, FRCP, FMedSci (retired 8 September 2017) Mr Matthew Pintus, BA Professor Cheryll A Tickle, CBE, FRSE, FMedSci, FRS (retired 8 September 2017)

SENIOR MANAGEMENT Secretary and Directo r: Ms Kate Law

Business Address Registered Office PO Box 2502 Macfarlanes Watford 10 Norwich Street WD18 1AE London EC4A 1BD

Solicitors Investment Advisors Macfarlanes Cazenove Capital Management 20 Cursitor Street 12 Moorgate London EC4A 1LT London EC2R 6DA Bankers Partners Capital LLP 5 Young Street Messrs Coutts & Co London W8 5EH St Martins Office 440 Strand Websit e: www.lister -institute.org.uk London WC2R 0QS Telephon e: 01923 801886 Auditor Kingston Smith LLP Devonshire House 60 Goswell Road London EC1M 7AD LEGAL AND ADMINISTRATIVE INFORMATION for the year ended 31 December 2017

THE SCIENTIFIC ADVISORY COMMITTEE Professor John Iredale, FRCP, FMedSci, FRSE (appointed Chairman 8 September 2017) Professor Patrick Maxwell, FRCP, FMedSci, chairman (retired 8 September 2017) Dr Ian Adams, BSc, PhD Professor Judi Allen, MPH, PhD, FRSE, FRSB, FMedSci (appointed 8 September 2017) Professor Jon Cohen, FRCP, FMedSci Professor Cyrus Cooper, OBE, MA, DM, FRCP, FFPH, FMedSci Professor William Deakin, PhD, FRCPsych, FMedSci Professor Annette C Dolphin, PhD, FMedSci, FRS Professor Margaret C Frame, PhD, FRSE, FMedSci Professor Corinne Houart, PhD Professor Nick Lemoine, MD, PhD, FRCPath, FMedSci Professor Catherine Nobes, BSc, PhD (appointed 8 September 2017) Professor Sir Mike Owen, PhD, FRCPsych, FMedSci, FLSW (appointed 8 September 2017) Professor Barry V L Potter, MA, DPhil, DSc, CSci, FRSC, FMedSci (appointed 8 September 2017) Professor Fiona Powrie (appointed 8 September 2017) Professor Christoph M Tang, MB, ChB, PhD, FMedSci Professor Josef Vormoor (appointed 8 September 2017) Professor Jonathan Waltho, BSc, PhD (retired 8 September 2017) Professor Colin Watts, FRS, FRSE, FMedSci (retired 8 September 2017)

Secretar y: Ms Kate Law

THE FINANCE AND INVESTMENT COMMITTEE Mr Michael French, BS c(Eng), FCA, Chairman Professor Judith Armitage, BSc, PhD, FRS Hon Rory M B Guinness , BA, FCIM Mr Andrew Hutton, MA, CFA Professor Sir Alex Markham, DSc, FRCP, FRCPath, FMedSci Mr Matthew Pintus, BA

Secretar y: Ms Kate Law

5 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2017 CHAIRMAN’S ANNUAL REPORT for the year ended 31 December 2017

THE YEAR 2017 saw a small but continued improvement in the Institute’s finances with a rise in the value of our investment portfolio to £43.58m. Continuing market uncertainty relating to BREXIT and general global instability led to a decision to main - tain the secure account of £5m, set aside to ensure that the Lister Institute is able to award a minimum of five prizes each year at £200k each over a five-year period. The Governing Body met, as usual, twice during the year, whilst the Charity’s two sub-committees have overseen their areas of responsibility with their usual efficiency. On the research front, Lister Fellows and former Fellows continue to undertake excellent research, publish high impact papers and gain academic advancement and recognition on many fronts. The Institute does, of course, appreciate that it cannot take sole credit for these achievements, since its Fellows will receive personal support and funding from many other agencies. However, on speaking to Fellows it is very clear that the flexibility which the Lister award provides, allowing them to appoint new staff, buy equipment or pursue new lines of research, is worth far more than the cash value of the award.

Governing Body and Administrative Matters The Governing Body met once in April and then before the start of the September Fellows’ meeting in Cambridge. As ever, I remain indebted to Members for the speed with which they respond to Lister matters and the obvious thought that they give to the Institute’s business, whether dealing with it electronically or at meetings. The Institute has a long history of having a representative from the Royal Society serving as a Trustee and, in 2017, we were sorry to bid farewell to the current representative, Professor Cheryll Tickle, who has been a member of the Governing Body since 2005. Considerable thought was given to a suitable replacement for Professor Tickle with unanimous agreement that Professor Douglas Higgs, a valued member of the Governing Body and a Fellow of the Royal Society, should be invited to take over this role. I am delighted to report that Professor Higgs has graciously accepted this position, with the enthusiastic support of the Royal Society president. Professor Patrick Maxwell, having served firstly as a member and then as chairman of the Scientific Advisory Committee, completed his term in the role and therefore also stepped down from the Governing Body. In 2018 his place will be taken over by Professor John Iredale, the new Scientific Advisory Committee chairman. The Articles of the Lister Institute require that one elected member of the Governing Body steps down each year. I am pleased to report that Mr Michael French, our treasurer, agreed to continue in his role and, having stepped down, was duly re-elected at the AGM in September.

The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2017 5 Chairman’s Report

The Institute continues to operate smoothly thanks to a small administrative team consisting of the Director, Kate Law, the administrator, Naomi King and accountant, Jacky Wilson. My thanks go to all of them on behalf of the Trustees.

Institute Membership Three Fellows, having completed five years of their fellowship, were welcomed into membership of the Institute. They are: Dr David Komander, MRC Laboratory of Molecular Biology; Dr David Lyons, University of Edinburgh and Dr Akhilesh Reddy, the Francis Crick Institute. Professor Judi Allen, University of Manchester; Professor Sir Mike Owen, Cardiff Univer - sity; Professor Fiona Powrie, University of Oxford and Professor Josef Vormoor, Newcastle Universit y–all newly appointed members of the Scientific Advisory Committe e–have accepted an invitation to membership of the Institute.

Financial Matters During a continuing period of global instability including the lack of clarity regarding the impact of BREXIT , the Lister portfolio has once again out-performed expectations at the beginning of the year. The overall value of the portfolio has increased by just over £2m since 31st December 2016 resulting in reserves of £43.5m once the £1m had been withdrawn to pay for this year’s Fellowships. Both investment managers have performed well and, as described in the 2016 Annual Report, both Cazenove and Partners Capital were re-appointed as the Institute’s investment managers following a rigorous review process and considera - tion of alternative providers. The continuing uncertainty in financial markets resulted in the Finance Committee approving a proposal from Partners Capital to increase the proportion of illiquid funds from 20% to 30% and this process is now in train. The Trustees’ confidence in the investment managers continuing performance led to a decision at the Governing Body meeting in September to increase the number of Fellow - ships in 2018 from five to six and the level of funding from £200k to £250k. This will clearly have an impact on the longevity of the low volatility portfolio (currently standing at £5m thereby ensuring that five Fellowships at £200k were secured for five years). There will be further discussions by the Trustees in 2018. A decision was also taken to increase the number of studentships each year from 25 to 35. All expenditures are in line with the agreed 2017 budget. The Institute’s operational costs remain low at £183k, with investment fees remaining steady at £289k. The Lister Institute’s total expenditure for 2017 was £1.520m. It is worth mentioning that, as a result of much needed updates of the Lister Institute’s information systems, there will be ongoing annual

6 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2017 Chairman’s Report

costs to ensure compliance with data security requirements under pending EU legislation. As always, the Lister Institute is indebted to our Treasurer, Michael French and all the members of the Finance and Investment Committee. I should like to thank them all for their diligence and oversight, which provides enormous reassurance to me, as chairman. It is pleasing to report that the auditors, Kingston Smith, raised no significant issues with respect to the accounts. Further details on the Institute’s finances can be found on page 22 and are summarised in the Statement of Financial Activities on page 27.

Scientific Activities With a growing number of applications, the work of the Scientific Advisory Committee in selecting Prize Fellows becomes more challenging and the Institute is indebted to its mem - bers for their dedication and enthusiasm for the task. This year we were sorry to part with the chairman of the SAC , Professor Patrick Maxwell who has, over many years, both as a member and latterly as chairman of the SAC provided exemplary leadership to the Committee. We will miss his calm authority but, equally, are delighted to welcome Professor John Iredale as the new chairman of the Committee. As with all Institute committees, there is planned turnover in the membership. In 2017 we were sorry to lose Professor Jon Waltho, University of Sheffield and Professor Colin Watts, University of Dundee. Given the high turnover of members in 2017 and 2018, Professor Iredale, in discussions with the Director, agreed to have a single major recruitment round in 2017. Consequently, I am delighted to welcome six new SAC member s: Professors Judi Allen, Kate Nobes, Mike Owen, Barry Potter, Fiona Powrie and Josef Vormoor.

Prof Judi Allen Prof Kate Nobes Prof Sir Mike Owen Prof Barry Potter Prof Fiona Powrie Prof Josef Vormoor

In 2017 we received 96 applications, only three fewer than in 2016, and the SAC was faced with the challenging task of selecting just five Fellows from these. The process follows a standard pattern with initial screening and scoring by SAC members to arrive at a long-list. The candidates are then further evaluated with the help of comments from independent international reviewers, arriving at a short-list of eleven candidates who were then inter - viewed. As the selection process proceeds, the standards are very high and, coupled with the diverse fields of research represented, the task of selecting the ‘winners’ is extremely

The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2017 7 Chairman’s Report

difficult. It is a tribute to SAC members and their chairman that each year they identify some truly exceptional young researchers. This year was no different. It is a pleasure to report the Fellows’ continuing endorsement of the Summer Studentship scheme. The scheme enables Lister Fellows and Former Fellows to offer places to outstand - ing students who then have the opportunity to experience research in a first-rate laboratory and make better informed decisions about their career pathways. Given the success of the scheme, the Trustees have agreed ( as I have already mentioned) to increase the number of Studentships from 25 to 35 each year.

2017 Lister Research Prize Fellowship Winners

Prize Winner Title of Research

Dr Sebastian Guettler Structural basis and mechanism of telomere The Institute of Cancer maintenance by poly(ADP-ribosyl)ation Research

Dr Sophie Helaine Salmonella Persister formation at the single cell level Imperial College London

Dr Yogesh Kulathu Regulation and function of protein FUBlylation University of Dundee

Dr James Nathan The interplay between metabolism and oxygen Cambridge Institute for sensing Medical Research

Dr Rahul Roychoudhuri Resolving mechanisms of gene regulation within the The Babraham Institute immune system using forward genetics

Not e: The academic rank of each Prize winner is shown as at the date of the award.

8 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2017 Chairman’s Report

Current and Former Lister Institute Prize Fellows

Fellow Title of Research Awarded

Dr Cynthia Andoniadou Regulation of stem cell potential in the mammalian 2016 King’s College London pituitary gland

Dr M Madan Babu Dynamics of tRNA abundance and the regulation of 2014 MRC Laboratory of Molecular protein expression levels Biology, Cambridge

Dr Nina Balthasar Identifying the novel CREB coactivator TORC2's role in the 2007 University of Bristol hypothalamic pathways controlling energy homeostasis

Dr Oliver Billker In search of the xanthurenic acid receptor of malaria 2004 The Wellcome Trust parasite s–a potential target for transmission control Sanger Institute, Cambridge

Dr Emmanuel Boucrot Mechanisms of cargo selection and vesicle formation in 2014 University College, London a novel pathway of endocytosis

Professor Nia Bryant Using yeast as a model system to understand the 2004 University of York insulin-dependent trafficking of GLUT4 in adipocytes

Dr Simon Bullock Mechanisms and neuronal functions of motor-driven 2008 MRC Laboratory of Molecular transport Biology, Cambridge

Professor Juan Burrone The role of neuronal activity during synapse formation 2009 Kings College London

Dr Vincenzo Costanzo The role of ATM and ATR in preventing genomic 2006 Cancer Research UK instability Clare Hall Laboratories

Professor Victoria Cowling Regulation and function of the 7-methylguanosine cap 2011 University of Dundee

Professor Daniel Davis Nanotubes and synapses in immune cell communication 2005 Imperial College, London

Professor Simon Draper Development of next-generation broadly-neutralising 2013 The Jenner Institute vaccines against the blood stage infection of human Oxford malarias

The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2017 93 Chairman’s Report

Fellow Title of Research Awarded

Professor Michael Eddleston Prevention of deaths from late respiratory failure in 2011 University of Edinburgh organo-phosphorus pesticide poisoning

Professor Sherif El-Khamisy The repair of oxidative and topoisomerase induced 2013 University of Sheffield chromosomal strand breaks and human disease

Professor Rebecca Fitzgerald Translational research programme for prevention of 2008 University of Cambridge oesophageal adenocarcinoma

Dr Agnieszka Gambus Identification and characterisation of Mcm7 2015 University of Birmingham ubiquitin ligase

Dr Holger Gerhardt Endothelial guidance in vascular patterning 2008 VIB Vesalius Research Centre KU Germany Dr Susana Godinho Regulation of paracrine signalling by centrosome 2016 Queen Mary University of amplification London Professor Fiona Gribble Secretion of incretin hormones from the mouse 2006 University of Cambridge intestine

Professor Muzlifah Haniffa In vivo kinetics and functional response of human 2016 Newcastle University mononuclear phagocytes during acute tissue inflammation Professor Andrew Jackson Cellular pathways determining human brain size 2009 University of Edinburgh

Dr Ragnhildur Karadottir The role of neuronal activity in myelin repair 2015 Wellcome Trust-MRC Cambridge Stem Cell Institute

Professor Josef Kittler Miro family proteins as regulators of synaptic 2010 University College London bioenergetics and a locus for mitochondrial dysfunction in neurological disease

Professor Robert Klose Biochemical isolation and functional dissection of University of Oxford the CpG island proteome 2011

Dr David Komander Bacterial interference with the ubiquitin system 2012 MRC Laboratory of Molecular Biology, Cambridge

10 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2017 Chairman’s Report

Fellow Title of Research Awarded

Professor Paul Lehner The role of HSP70 in MHC Class 1 mediated antigen 2004 University of Cambridge presentation in human dendritic cells

Professor David Lyons Elucidating mechanisms of myelinated axon formation, 2012 University of Edinburgh function and repair using zebrafish Professor Juan Martin-Serrano Functional parallels between HIV-1 budding and the 2008 King’s College London last step of cell division Professor Robin May The molecular basis of latency and dissemination 2010 University of Birmingham during cryptococcosis Dr Serge Mostowy Bacterial autophagy and the cytoskeleton in 2015 Imperial College London host defence Dr Akhilesh Reddy Peroxiredoxins and redox oscillations in the 2012 University of Cambridge circadian (24 hour) clockwork Professor Jan Rehwinkel Z-RNA and Z-DNA: Novel inducers of antiviral 2016 University of Oxford immunity Professor Tatjana Decoding gene regulatory circuits controlling 2013 Sauka-Spengler multipotency of neural crest Weatherall Institute of Molecular Medicine, Oxford Dr Melina Schuh Mechanisms of aneuploidy in human oocytes 2014 Max Planck Institute for Biophysical Chemistry, Germany

Professor Daniel Smith Investigating the overlap between hypertension 2016 University of Glasgow and bipolar disorder to identify new and repurposed medications for bipolar disorder Professor Kenneth Smith Control of infection and autoimmunity by an 2007 University of Cambridge inhibitory Fc receptor Fc γR11b Professor Grant Stewart Investigating the role of the RIDDLE syndrome 2009 University of Birmingham gene in promoting repair of DNA damage

Dr Anne Straube Microtubule-actin crosstalk in cell migration 2013 University of Warwick Professor Tomoyuki Tanaka Mechanisms of kinetochore-microtubule 2005 University of Dundee interaction Continued overleaf

The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2017 11 Chairman’s Report

Fellow Title of Research Awarded

Dr Sarah Teichmann Decoding genetic switches in T helper cell 2010 The Wellcome Trust Sanger differentiation Institute and EMBL -EBI, Cambridge Professor Chris Thompson Identifying and characterising genes that control 2005 University of Manchester cell fate choice and social behaviour Professor Daan van Aalten Structural mechanisms and specificity of O-GlcNAc 2006 University of Dundee signalling in the eukaryotic cell Dr Fiona Wardle Transcriptional control of mesodermal cell 2007 Kings College London differentiation in vertebrates

Dr Erica Watson Mechanisms of folate metabolism during the trans- 2015 University of Cambridge generational inheritance of disease Professor Steven West The nature, mechanism and function of RNA 2015 University of Exeter polymerase II modifications in health and disease

Fellowship Activities The annual meeting in the beautiful setting of Christ’s College, Cambridge was the usual success, although made slightly poignant by being the last meeting in Cambridge for the foreseeable future. Positive feedback on the extended meeting held over two days in 2016 (celebrating the 125th anniversary of the Institute) encouraged the Trustees to endorse a similar meeting this year. We began on Thursday afternoon with excellent and informative talks by Professor Sir Alec Jeffreys (having fully recovered from the surfing accident that prevented him from speaking in 201 6! ), Professors Cheryll Tickle and Stephen Inglis (both previous members of the Institute’s Governing Body) and Professor Muzlifa Haniffa, a current Lister Fellow. The delegates then moved on to a more informal setting for the poster session which, once again, provided current Fellows with an excellent opportunity to discuss their research and any concerns they may have with senior members of the Institute. Friday’s meeting provided, as ever, a series of outstanding presentations across a diverse range of topics. The morning was, as usual, taken up by excellent talks from four of the five winners of the 2017 Prize Fellowships listed on page 8, aptly illustrating the diversity of scientific research funded by the Institute.

12 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2017 Chairman’s Report

Dr Sebastian Guettler Structural basis and mechanism of telomere maintenance by The Institute of Cancer poly(ADP-ribosyl)ation Research Dr Sophie Helaine Salmonella Persister formation at the single cell level Imperial College London

Dr James Nathan The interplay between metabolism and oxygen sensing Cambridge Institute for Medical Research

Dr Rahul Roychoudhuri Resolving mechanisms of gene regulation within the immune The Babraham Institute system using forward genetics

The quality of these talks from the most recent members of th e‘Lister Institute family’ set the standard for the rest of the meeting and in the afternoon former Fellows showed that they had been far from idle since winning their Fellowship s! Delegates enjoyed excellent presentations from Dawn Coverley, ( CIZ1 and the inactive X chromosome ), Paul Lehner, (Silencing incoming lentiviruses – identification of HUSH, a novel epigenetic repressor complex ) and Jon Waltho, ( Kinases, phosphatases, phosphomutases and G-proteins ).

Delegates at the Cambridge Fellowship Meeting awaiting the lecture given by Professor Sir Alec Jeffreys

The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2017 13 Chairman’s Report

The 2017 Special Lister Institute Lecture was given by Professor Sir Leszek Borysiewicz who was one of the first Lister institute Fellows between 1983 and 1987. Professor Borysiewicz’s talk entitle d: From micro to macro; challenge and opportunity provided a compelling insight into a varied and stellar career in science and national research leader - ship. Professor Borysiewicz explained how his initial focus, supported by the Lister fellowship, had been on the immunity to persistent virus infections in relation to HIV and Human Cytomegalovirus, leading to the identification and development of immunotherapeutic vaccine-based approaches to human cervical cancer targeting human papillomavirus E6 and E7 proteins. That effort led him to consider the wider, strategic question, of how best to develop opportunities to deliver effective treatment through basic and clinically applied translational research and better delivery of healthcare. This strategic focus resulted in leadership of several major institutions including CEO of the Medical Research Council, vice-chancellor of the University of Cambridge and, most recently, as chairman of Cancer Research UK. Whilst the topics varied widely throughout the day, the depth of knowledge and enthusiasm of the speakers was a constant, confirming the outstanding quality of the individuals awarded Lister Prize Fellowships. The reception and dinner were the usual lively and enjoyable occasions and, following presentation of scrolls, four of the five new Prize Fellows were welcomed into the ‘Lister Institute family’ in traditional style. A fitting end to our time in Cambridg e!

Righ t: (l-r) Professor Corinne Houart, Dr Cynthia Adoniadou and Professor Wendy Bickmore

Lef t: An appreciative embrace from Professor Sir Alec Jeffreys at the Fellowship Meeting for Naomi King, the long-serving Lister administrator.

14 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2017 Chairman’s Report

Conclusion As always, the meeting in Cambridge was a huge success, not only providing the oppor- tunity to gain insight into the high-quality research of those who gave presentations but also the opportunity for Fellows and Members to speak informally about science and careers. We know from speaking to the current Fellows how much they value the opportunity to mix with their senior colleagues and discuss their research and the general challenges of academia. One of the most enjoyable roles of the chairman is travelling to institutions to hear the Prize Fellows give seminars in their home environment. All these events are unique, reflect - ing both the character and research of the speaker and that of their departments, each with their differing aspirations and local capabilities. Common to all, however, is the high regard in which Lister Fellows are held by their colleagues and the undoubted impact which the receipt of the Prize has had on their research. It is also pleasing to hear that the Lister prize almost always results in additional support, either in terms of facilities or funding from the host institution. I should like to express my own and the Institute’s thanks to the host institutions that have welcomed us throughout the year. By working with these organisations, it is very clear to m e tha t th e Liste r Institut eisfulfilling its stated aim of ‘nur - turing the future leaders in biomedical research’. Professor Sir Alex Markham congratulates At this point I must thank Patrick Maxwell for his Dr James Nathan following a seminar given at chairmanship of the Scientific Advisory Committee Cambridge on his research topic. over the past six years. Ably supported by the SAC members, Patrick’s leadership has ensured that the very best individuals have been selected for the Lister Prizes. My thanks also go to Professor John Iredale who has kindly agreed to take on the role of SAC chair - man. I must also thank all of my colleagues on the Governing Body for their hard work and support, not least for ensuring that we were able to fund five Fellowships this year and even discuss the potential for increasing this number in 2018. Finally, it is a pleasure and privilege to be the chairman of the Lister Institute of Preven - tive Medicine. The strength of the Institute is the people associated with it, whether they be Trustees, members of the Governing Body and its sub-committees, the Membership, our Fellows or the staff, and to all I offer my sincere thanks and warmest appreciation. We very much look forward to seeing you all at Corpus Christi, Oxford in September 201 8 ! ALEX MARKHAM, Chairman

The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2017 15 More pictures from the 2017 Annual Fellows’ Meeting at Christ’s College Cambridge

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Inset photos, clockwise from top left: 1. Professor Simon Kroll in conversation with Professor Judy Armitage 2. Professor Andrew Fry and Dr Anne Straube in earnest discussion. 3. Professor Ken Smith, Dr Madan Babu and Professor Paul Lehner in lively conversation 4. The Hon Rory Guinness engaging with Professor John Iredale 5. Professor Nick Lemoine has an amiable chat with Dr Muzlifah Haniffa. 6. Professors David Rice and Barry Potter share the latest news. 7. 2017 Prize Award winners Dr Sophie Helaine and Dr Rahul Roychoudhuri talk with Professor Stephen Perkins.

6 17 REPORT OF THE GOVERNING BODY for the year ended 31 December 2017

The Governing Body presents its Annual Report by the Governing Body and there are currently under the Charities Act 2011 together with the four such appointees. One additional member is audited Financial Statements of the Charity for Lord Iveagh’s representative, another is Professor the year ended 31 December 2017. The Financial Sir Alec Jeffreys who was appointed to life- Statements have been prepared in accordance membership, and the final member, Professor with the accounting policies set out in Note 1 Cheryll Tickle, is the representative of the Royal (page 31) comply with the Companies Act 2006, Society. Professor Tickle’s term of office ended in the FRS102 Charities SORP and the documents 2017 and she has been replaced by a current governing the constitution of the Charity. Governing Body member who is also a Fellow of the Royal Society, Professor Douglas Higgs. LEGAL AND ADMINISTRATIVE DETAILS Trustees, other than the two nominated repre - Legal and administrative information is set out sentatives, Professor Sir Alec Jeffreys and on pages 3 and 4 of this report. exceptionally those appointed by the Governing Body, generally serve for a maximum of six years Members of the Governing Body, Directors and and a system of planned rotation is in place. Trustees Currently two positions are deliberately being The members of the Governing Body are, for the kept vacant. When considering appointment or purposes of company law, directors of the nomination for election as Trustees, the Institute and, for the purposes of charity law, Governing Body has regard to the specialist Trustees of the Institute and throughout this skills needed. report are collectively referred to as the Trustees. Details of the Trustees serving Induction and training of Trustees throughout the year, unless otherwise stated, New Trustees undergo induction sessions with are set out on page 3. the Chairman, Treasurer and Director during which they will gain an understanding of the STRUCTURE, GOVERNANCE AND Institute’s structure, activities, financial position MANAGEMENT and future strategies. Prior to appointment they will attend, as‘observers’, one meeting of the Constitution Governing Body. New Trustees will also be made The Institute is registered with the Charity aware of their legal obligations with regard to Commission for England and Wales (registration charity and company law. In addition, new number 206271). It is incorporated and regis - Trustees will be advised of appropriate literature tered in England and Wales under the and training courses. Companies Act 2006 as a company limited by guarantee and not having a share capital Organisation (company number 34479). It is governed by its The Institute is governed by its Governing Body Articles of Association and has charitable which is responsible for setting policies, status. authorising actions on all significant operational issues and ensuring legality and good practice. Appointment and re-appointment of Trustees The Governing Body meets formally twice a The Trustees are the fifteen members of the year. The Treasurer and Chairman review the Governing Body of whom six are appointed by remuneration of all staff once a year, this includes the members at the annual general meeting. the remuneration of those individuals considered A maximum of six further Trustees are appointed to be key management personnel.

18 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2017 Report of the Governing Body

Specific authorities are delegated to two sub- The key controls used by the Institute includ e: Committees in particular areas. The Scientific . Formal agendas for all Governing Body Advisory Committee (see page 4 for member - meetings ship) has responsibility for the selection of the . Strategic planning, budgeting and Lister Institute Prize Fellows and the monitoring management accounting of their scientific activities, as well as providing . Formal written policies scientific and medical advice to the Governing . Clear authorisation and approval levels Body as required. In 2015 the peer review . Regular review of Fellows’ scientific reports processes of the SAC were audited by the Asso - The specific risk of bribery associated with any ciation of Medical Research Charities and found of the Institute’s activities has been reviewed, to be meeting the highest standards. The and clear policies and procedures have been Finance and Investment Committee (see page 4 developed and communicated to all Trustees, for membership) has responsibility for inter- staff and Members. action with the Institute’s investment advisors, The specific risk of scientific misconduct by ensuring implementation of the Institute’s Lister Fellows has been reviewed by the Trustees investment policy and monitoring performance. and, as a result, minor amendments have been It prepares and submits to the Governing Body made to the risk log. the annual budget, and subsequently monitors The Institute maintains a‘Register of Interests’ performance against it. It also advises the for all Governing Body and committee members Governing Body, as required, on other financial as well as principal staff and operates a clear and risk matters. ‘declaration of interests’ policy and procedures The routine management of the Institute’s for all meetings. activities is undertaken by its Director, aided by The principal risk facing the Institute lies in its the administrator and the accountant. All staff ability to maintain and protect the value in real work from home. terms of its investments and to generate from In the year ending 2017 none of the charity’s them, on a long-term basis, a consistently high Trustees received any remuneration or any other overall return. This risk is mitigated by the Insti - benefits in relation to their dealings with the tute’s appointment of experienced investment charity. managers with a proven track record; by internal The Chairman and the Treasurer of the charity controls that allow close and regular monitoring agree the Director’s remuneration that, along of their performance against benchmarks; by with other Lister Institute staff, is normally the Institute’s requirement of its investment increased in line with RPI. Salaries are also managers to re-tender periodically and compet - compared to similar organisations and adjusted itively for appointment – as happened in 2017, periodically where appropriate. and by regular meetings that formally review investment performance and policy, and Risk Management include one-to-one presentations by the invest - The Trustees assess the risks facing the Institute ment managers. and review the effectiveness of the controls to Investment Policy Statements are in place for monitor and mitigate them. A Risk Manage - the Lister Institute and its investment partners. ment Register is maintained and formally These are reviewed on an annual basis. reviewed annually by the Governing Body.

The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2017 19 Report of the Governing Body

Objectives and activities Achievement and Performance The statutory object of the Institute is to further The Scientific Advisory Committee has moni - understanding and progress in preventive tored the performance of the current 26 Lister medicine by promoting excellence in bio- Institute Prize Fellows, through detailed review medical research in the UK and Ireland. of the annual reports on their research that When founded in 1891, the Institute sought include details of all publications and presenta - to achieve this objective by establishing a tions. The Scientific Advisory Committee has research institute specialising in the area of reported to Trustees that it is of the view that all ‘infections’ and their prevention by immunisa - Fellows are undertaking high quality research tion and other means. It complemented these and producing new knowledge that will research activities by the production and contribute significantly to our understanding of supply of materials such as vaccines and anti- disease, its causes, treatment and prevention. toxins. The reports of the research undertaken by the The Institute continued in this mode until the Summer Students have also been reviewed and late 1970s when increasing financial and regula - found to be very satisfactory. tory pressures caused the cessation of these Five Lister Institute Prize Fellowships were activities. Proceeds from the resultant sale of awarded in 2017 to Dr Sebastian Guettler, land and buildings created the investment Dr Sophie Helaine, Dr Yogesh Kulathu, Dr James funds from which present-day activities are Nathan and Dr Rahul Roychoudhuri from an financed; at 31 December 2017 these funds initial field of 96 applicants, following extensive stood at £43.58m. scientific review of their applications and final From the 1980s the Institute has pursued its interview by the Scientific Advisory Committee. objective of nurturing future leaders by the (More details of the Prize Fellows and their provision of grant funding to facilitate the research are provided on page 8). Each Prize research and careers of high quality individuals Fellowship provides £200k that may be spent working in areas of biomedicine relevant to over five years on the recipient’s research, preventive medicine. It has done this because it although the funds are provided to the host believes that the acquisition and advancement institution at the commencement of the award. of knowledge is crucial to the understanding of Twenty-four Summer Studentships were health and disease and that research to achieve awarded in 2017. Each is a £2k student bursary this is driven forward by high quality individuals and is paid to the host institution at the and their supporting staff. commencement of the award for the support of the student for up to a ten-week period. Principal activities The Institute maintained its commitment to In pursuance of this objective, during 2017 the fostering scientific interchange and collabora - Institute awarded five new Prize Fellowships. In tion within the Fellowship by holding its 33rd addition, the Institute has continued its Summer Annual Research Fellowship meeting at Christ’s Studentship scheme that enables up to twenty- College, Cambridge. five undergraduates per year to work with Lister Institute Fellows or former Fellows in order to Public Benefit gain experience of biomedical research with the In so far as the statutory objectives, aims and hope that they might consider it as a career. activities of the Lister Institute of Preventive Medicine are to further understanding in preven - tive medicine by promoting biomedical research

20 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2017 Report of the Governing Body

as set out on page 20 of this Report, the Trustees Investment policy and performance have considered the Charity Commission’s The Institute’s investment objective is to develop guidance on public benefit, including the and maintain its financial resources through the guidance‘Public benefi t: running a charity (PB2)’. selection of investments, consistent with an The public benefit provided through the acceptable level of risk. Institute’s grant-making is clearly identifiable in The Institute’s investment portfolio is split th e ‘Achievement and Performance’ paragraphs between Cazenove Capital Management and above and in the list of Research Prize Fellows, Partners Capital LLP who both operate under together with their areas of research, set out on mandates agreed in advance with the Finance pages 9 to 12 of the Chairman’s report. All and Investment Committee. These mandates Lister Institute Fellows are actively encouraged, set out an overall target asset allocation with where appropriate, to develop their research allowable ranges for each category of asset. findings for potential public benefit and the Both investment managers invest on a total Scientific Advisory Committee has regard to this returns basis through a variety of pooled funds when reviewing their research reports. The and in accordance with the Institute’s overarch - Lister Institute therefore benefits the public or a ing‘Investment Policy Statement’ (IPS), which sector of it without imposing any restrictions. states the overall investment objective and sets Applications from individuals are accepted only the investment return objectives, the risk para- when demonstrably consistent with the meters, the performance measures and review charitable objectives of the Institute. procedures for the portfolio. The Institute’s IPS was revised in the autumn of 2013 and again in Impact 2015, as a result of the establishment of the The impact of the activities of a medical research liquidity reserve. Specific versions were also charity can be measured at many levels ranging agreed for each of the investment managers to from the growth of knowledge to direct patient/ reflect their individual investment approaches. public benefit. Often the transition from the The IPSs are reviewed annually. The investment former to the latter may take many years and managers are informed at the beginning of the the involvement of several organisations. The financial year of the Institute’s likely cash Institute requires that the results of the research requirements, both in terms of the amount and it supports are published and disseminated; the timing of any draw-down, and are asked to that, where appropriate, significant intellectual keep in an income or cash account sufficient property is protected via patents; and that its funds to meet them. The Institute has in place commercial development is encouraged. Several an ethical investment policy which does not biotechnology companies have been formed permit direct investment in tobacco or around the findings of Institute-sponsored tobacco-related companies. research and there are several interactions with The Institute’s overall financial return objec - large pharma ceutical companies. tive is to preserve and if possible enhance the A prime example of the impact of research is purchasing power of its portfolio assets, net of DNA fingerprinting, which was discovered by costs and approved withdrawals, over rolling Sir Alec Jeffreys when a Lister Institute Fellow five-year periods. This goal is synonymous with and has become an integral part of society, the pursuit of a time-weighted net return on helping to prove innocence or guilt in criminal portfolio assets that equals and if possible cases, resolving immigration arguments and exceeds cost inflation as measured by the UK clarifying paternity. Consumer Price Index plus the Institute’s long-

The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2017 21 Report of the Governing Body

term spending rate of 3-4% measured over tial increase in the value of the investment port - corresponding five-year periods. This goal has folio and good returns, the Trustees felt able to, been achieved over the most recent five-year once again, award five Prizes in 2017 and to period. maintain their value at £200k each. From 2018 The performance of the investment portfolio the number of Fellowships will increase to six at is reviewed by the Finance and Investment £250k each. As previously described, a £5m Committee, which had two meetings in the year portfolio has been established to ensure that with the investment advisors to review perform - the number and level of awards is sustainable ance, liquidity within the portfolio, and the due over a minimum of five years. The Summer diligence undertaken on potential new invest - Studentship scheme at a total cost of £50k can ment vehicles. In addition, the Institute receives be reviewed each year with regard to both detailed quarterly valuation and transaction number and value. Twenty-four were funded reports. In a year that saw moderate stock mar - this year as one student was unable to take up ket growth the fund has risen from £41.49m to the award. A decision was taken this year to £43.58m. A decision, taken in 2015, to withdraw increase the number of studentships to 35, and place £5m in a Liquidity Account was based effective from 2018. both on the recent strong growth of the portfolio Payments are currently made to five pensioners but also concerns about future market volatility who are previous employees of the Lister Institute. and performance. A further decision was taken in 2016 to maintain £5m in this account, on a Reserves policy rolling basis, to be reviewed annually. This The policy of the Trustees is to maintain adequate decision will ensure that five Prize fellowships financial resources to provide income to meet can be awarded for at least five years from 2017. current and future commitments as they fall due More details of the Institute’s activities are set and ensure that adequate funds remain available out in the Chairman’s Report on pages 5 to 15. to enable them to make awards in perpetuity. The adequacy of the level of reserves FINANCIAL REVIEW (£43.58m in 2017) and the continuing appropri - ateness of the policy are reviewed on an annual Allocation of resources basis by the Trustees. As the current level of The Institute, which does not seek to raise funds investments now exceeds that of 2016, they feel from the public, depends primarily on investment satisfied with the policy over the long-term and, returns to meet its pension provision payments, given that the Institute is not formally commit - administrative expenditure and expenditure in ted to awarding any Prizes beyond the current furtherance of the Charity’s objectives. The total year, are confident in the ability of the Institute return on investments for the year was realised/ to maintain appropriate levels of activity in the unrealised gains of £2.632m and investment short-term. income of £714k. The resources expended totalled £1,520m of Plans for the future which £1,231m were resources expended for The Institute’s future policy is to continue to the Institute’s charitable activities. pursue its current objectives. It will therefore The Prize Fellowships are fixed sum awards maintain and look to increase the Prize Fellow - and therefore, expenditure can be regulated by ship scheme, which it sees as a funding priority. altering the number and/or value of prizes The Summer Studentship scheme will also be awarded each year. In 2016, due to the substan - increased.

22 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2017 Report of the Governing Body

Trustee Responsibilities Statement accuracy at any time the financial position of the The Trustees (who are also directors of The Lister charitable company and enable them to ensure Institute of Preventive Medicine for the purposes that the financial statements comply with the of company law) are responsible for preparing Companies Act 2006. They are also responsible the Trustees’ annual report and the financial for safeguarding the assets of the charitable statements in accordance with applicable law company and hence for taking reasonable steps and United Kingdom Accounting Standards for the prevention and detection of fraud and (United Kingdom Generally Accepted Accounting other irregularities. Practice). In so far as the Trustees are aware: Company law requires the Trustees to prepare . there is no relevant audit information of which financial statements for each financial year, the charitable company’s auditor is unaware; which give a true and fair view of the state of and affairs of the charitable company, and of the in - . the Trustees have taken all steps that they coming resources and application of resources, ought to have taken to make themselves including the income and expenditure, of the aware of any relevant audit information and charitable company for that period. In preparing to establish that the auditor is aware of that these financial statements, the Trustees are information. required t o: The Trustees are responsible for the main- . select suitable accounting policies and then tenance and integrity of the corporate and apply them consistently; financial information included on the charitable . observe the methods and principles in the company’s website. Legislation in the United Charities SOR P; Kingdom governing the preparation and . make judgments and estimates that are dissemination of financial statements may differ reasonable and prudent; from legislation in other jurisdictions. . state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained By Order of the Governing Body in the financial statements; and . prepare the financial statements on the going SIR ALEX F MARKHAM concern basis, unless it is inappropriate to Chairman presume that the charitable company will MR MICHAEL FRENCH continue in business. Treasurer The Trustees are responsible for keeping proper accounting records that disclose with reasonable 8 May 2018

The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2017 23 INDEPENDENT AUDITOR’S REPORT to the members of the Lister Institute of Preventive Medicine

Opinion appropriate to provide a basis for our opinion. We have audited the financial statements of This report is made solely to the charitable The Lister Institute of Preventive Medicine (‘the company's members, as a body, in accordance company’) for the year ended 31 December with Chapter 3 of Part 16 of the Companies Act 2017 which comprise the Statement of Financial 2006. Our audit work has been undertaken so Activities, the Balance Sheet, the Cash Flow that we might state to the company’s members Statement and notes to the financial statements, those matters we are required to state to them including a summary of significant accounting in an auditor’s report and for no other purpose. policies. The financial reporting framework that To the fullest extent permitted by law, we do has been applied in their preparation is appli - not accept or assume responsibility to any cable law and United Kingdom Accounting party other than the charitable company and Standards, including FRS102‘The Financial charitable company's members as a body, for Reporting Standard Applicable in the UK and our audit work, for this report, or for the Ireland’ (United Kingdom Generally Accepted opinions we have formed. Accounting Practice). Conclusions relating to going concern In our opinion the financial statement s: We have nothing to report in respect of the . give a true and fair view of the state of the following matters in relation to which the ISAs charitable company’s affairs as at (UK) require us to report to you where: 31 December 2017 and of its incoming . the Trustees’ use of the going concern basis resources and application of resources, of accounting in the preparation of the including its income and expenditure, for financial statements is not appropriate; or the year then ended; . the Trustees have not disclosed in the financial . have been properly prepared in accordance statements any identified material uncertain - with United Kingdom Generally Accepted ties that may cast significant doubt about Accounting Practice; and the company’s ability to continue to adopt . have been prepared in accordance with the the going concern basis of accounting for a requirements of the Companies Act 2006. period of at least twelve months from the date when the financial statements are Basis for opinion authorised for issue. We conducted our audit in accordance with International Standards on Auditing (UK) Other information (ISA (UK)) and applicable law . Our responsibilities The other information comprises the informa - under those standards are further described in tion included in the Trustees’ annual report, the Auditor’s Responsibilities for the audit of other than the financial statements and our financial statements section of our report. We auditor’s report thereon. The Trustees are are independent of the charitable company in responsible for the other information. Our accordance with the ethical requirements that opinion on the financial statements does not are relevant to our audit of the financial state - cover the other information and, except to the ments in the UK, including the FRC’s Ethical extent otherwise explicitly stated in our report, Standard, and we have fulfilled our other ethical we do not express any form of assurance, con - responsibilities in accordance with these clusion thereon. requirements. We believe that the audit In connection with our audit of the financial evidence we have obtained is sufficient and statements, our responsibility is to read the

24 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2017 Independent Auditor’s Report

other information and, in doing so, consider . we have not received all the information and whether the other information is materially explanations we require for our audit; or inconsistent with the financial statements or our . the Trustees were not entitled to prepare the knowledge obtained in the audit or otherwise financial statements in accordance with the appears to be materially misstated. If we identify small companies regime and take advantage such material inconsistencies or apparent of the small companies exemption in pre- material misstatements, we are required to paring the Trustees’ annual report and from determine whether there is a material misstate - preparing a Strategic Report. ment in the financial statements or a material misstatement of the other information. If, based Responsibilities of Trustees on the work we have performed, we conclude As explained more fully in the Trustees’ respon- that there is a material misstatement of this sibilities statement set out on page 23, the other information, we are required to report Trustees (who are also the directors of the that fact. charitable company for the purposes of We have nothing to report in this regard. company law) are responsible for the prepara - tion of the financial statements and for being Opinions on other matters prescribed by the satisfied that they give a true and fair view, and Companies Act 2006 for such internal control as the Trustees deter - In our opinion, based on the work undertaken in mine is necessary to enable the preparation of the course of the audit: financial statements that are free from material . the information given in the Trustees’ annual misstatement, whether due to fraud or error. report for the financial year for which the In preparing the financial statements, the financial statements are prepared is consistent Trustees are responsible for assessing the with the financial statements; and charitable company’s ability to continue as a . th eTrustees’ annual report has been pre pared going concern, disclosing, as applicable, matters in accordance with applicable legal require - related to going concern and using the going ments. concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic Matters on which we are required to report by alternative but to do so. exception We have nothing to report in respect of the following matters where the Companies Act Auditor’s responsibilities for the audit of the 2006 requires us to report to you if, in our financial statements opinio n: Our objectives are to obtain reasonable assur - . adequate accounting records have not been ance about whether the financial statements as kept or returns adequate for our audit have a whole are free from material misstatement, not been received from branches not visited whether due to fraud or error, and to issue an by us; or auditor’s report that includes our opinion. Reasonable assurance is a high level of assur - . the financial statements are not in agreement ance, but is not a guarantee that an audit with the accounting records and returns; or conducted in accordance with ISAs (UK) will . certain disclosures of Trustees’ remuneration always detect a material misstatement when it specified by law are not made; or exists. Misstatements can arise from fraud or

The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2017 25 Independent Auditor’s Report

error and are considered material if, individually cast significant doubt on the charitable or in aggregate, they could reasonably be company’s ability to continue as a going expected to influence the economic decisions of concern. If we conclude that a material un- users taken on the basis of these financial certainty exists, we are required to draw statements. attention in our auditor’s report to the related As part of an audit in accordance with ISAs disclosures in the financial statements or, if (UK) we exercise professional judgement and such disclosures are inadequate, to modify maintain professional scepticism throughout our opinion. Our conclusions are based on the the audit. We als o: audit evidence obtained up to the date of our . Identify and assess the risks of material mis - auditor’s report. However, future events or statement of the financial statements, conditions may cause the charitable company whether due to fraud or error, design and to cease to continue as a going concern. perform audit procedures responsive to those . Evaluate the overall presentation, structure risks, and obtain audit evidence that is suffi - and content of the financial statements, cient and appropriate to provide a basis for including the disclosures, and whether the our opinion. The risk of not detecting a financial statements represent the underlying material misstatement resulting from fraud is transactions and events in a manner that higher than for one resulting from error, as achieves fair presentation. fraud may involve collusion, forgery, inten - We communicate with those charged with tional omissions, misrepresentations, or the governance regarding, among other matters, override of internal control. the planned scope and timing of the audit and . Obtain an understanding of internal control significant audit findings, including any signifi - relevant to the audit in order to design audit cant deficiencies in internal control that we procedures that are appropriate in the identify during our audit. circumstances, but not for the purposes of expressing an opinion on the effectiveness of Luke Holt (Senior Statutory Auditor) the charitable company’s internal control. for and on behalf of Kingston Smith LLP, . Evaluate the appropriateness of accounting Statutory Auditor policies used and the reasonableness of accounting estimates and related disclosures Devonshire House made by the Trustees. 60 Goswell Road . Conclude on the appropriateness of the London Trustees’ use of the going concern basis of EC1M 7AD accounting and, based on the audit evidence 6 June 2018 obtained, whether a material uncertainty exists related to events or conditions that may

26 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2017 STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2017

Notes 2017 2016 £’000 £’000 Income from

Investments 2 714 686 Other 3 20 103 Total income 734 789

Expenditure on Costs of raising fund s: Investment management costs 4 (289) (231) Charitable activitie s: Prizes & Summer Studentships 6 (1,231) (1,060) Total expenditure (1,520) (1,291)

Net gains on investment 9 2,632 3,633 Net income 1,846 3,131

Other recognised gains/(losses) : Actuarial losses on defined benefit schemes 13 (11) (9) Net movement in funds 1,835 3,122

Reconciliation of fund s: Total funds brought forward 41,646 38,524 Total funds carried forward 43,481 41,646

All items in the above Statement of Financial Activities relate to continuing operations for both years. The Institute has no other recognised gains and losses other than as stated above and hence no separate income and expenditure statement has been shown.

The Notes set out on pages 30 to 37 form part of these financial statements.

The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2017 27 BALANCE SHEET

as at 31 December 2017 Company no. 34479

Notes 2017 2016 £'000 £’000 Fixed assets Investments 9 43,583 41,492 Total fixed assets 43,583 41,492

Current asset s Debtors 10 23 193 Cash at bank and in hand 11 133 193 Total current assets 156 386

Current liabilities Creditor s: amounts falling due within one year 12 (98) (64) Net current asset s 58 322

Total assets less current liabilities 43,641 41,814

Creditor s: amounts falling due after more than one year Pension provision 13 (160) (16 8) Net assets 43,481 41,646

Represented by Unrestricted funds 43,481 41,646 Total charity funds 43,481 41,646

The Trustees have taken advantage of the exemptions conferred by the Companies Act 2006, on the grounds that the Institute is entitled to the benefit of those exemptions as a small company.

These financial statements were approved by the Governing Body on 8 May 2018.

ALEX F MARKHAM Members of the MICHAEL FRENCH Governing Body

The Notes set out on pages 30 to 37 form part of these financial statements.

28 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2017 CASH FLOW STATEMENT as at 31 December 2017

2017 2016 £’000 £’000 Cash flow/(outflow) from operating activities Net cash (used in)/provided by operating activities (1,304) (1,348)

Cash flows from investing activities Investment income 714 686 Interest paid (8) (9) Proceeds from disposal of fixed asset investments excluding endowment funds 13,744 7,165 Acquisition of fixed asset investments excluding endowment funds (13,719) (6,154) Other movements on investments 513 (302) (60) 38

Net (decrease) /increase in cash and cash equivalents (60) 38 Cash and cash equivalents at beginning of year 193 155 Cash and cash equivalents at end of year 133 193

Reconciliation of net income/(expenditure) to net cash flow from operating activities 2017 2016 £’000 £’000 Net income 1,846 3,131

Adjustments fo r: Net (gains)/losses on investments (2,632) (3,633) Investment income (714) (686) Decreas e/ (increase) in debtors 170 (183) Increas e/ (decrease) in creditors 34 32 (Decrease )/ increase in pensions (8) (9) Net cash (used in )/provided by operating activities (1,304) (1,348)

The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2017 29 NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2017

1 PRINCIPAL ACCOUNTING POLICIES

Basis of preparation The Financial Statements have been prepared in accordance with the Statement of Recommended Practice, Accounting and Reporting by Charities (FRS102 SORP). The Financial Statements are prepared in accordance with the historical cost convention modified by the revaluation of investments. The charity is a Public Benefit Entity as defined by FRS102. The principal accounting policies adopted in the preparation of the Financial Statements are as follow s:

Income All incoming resources are accounted for on a receivable basis.

Prizes and summer studentships The cost of Research Prize Fellowships is charged in the year awarded.

Expenditure The costs of raising funds include those fees payable to the Institute’s investment fund managers for the man - agement of the Institute’s investment portfolio. These are accounted for on an accruals basis. Charitable activities comprise all expenditure directly relating to the objects of the charity and are accounted for on an accruals basis. The allocation of expenditure between governance and management, administration and support costs is reviewed on an annual basis to ensure the allocation is appropriate. Indirect costs are generally treated as falling into the latter category with the exception of a proportion of salary and related costs, which has been classified as governance costs. In addition to auditor’s remuneration, governance costs comprise the proportion of staff costs associated with the time spent on the preparation of the statutory accounts and other governance issues, together with honoraria remuneration provided to members of the Institute’s Scientific Advisory Committee for their duties in selecting the Prize Fellows.

Supplementary pensions and staff pensions An estimate of the full provision is made in the Financial Statements for the costs of future supplementary payments. The provision and charge to income are reviewed annually by theTrustees in the knowledge that the number of persons receiving the supplementary pensions will not increase. The pension costs are assessed in accordance with actuarial advice and these costs are accounted for in accordance with FRS102 SORP. Existing employees participate in a defined contribution scheme, the costs of which are expensed as incurred. These disclosures are made in accordance with FRS102 SORP.

Fixed Assets Any capital items purchased under £1k in value are expensed in the accounts in full as incurred. The Charity has no fixed assets.

Investments Investments are shown at market value in the balance sheet. Changes in the market value are included in the Statement of Financial Activities as realised and unrealised investment gains or losses in the year in which they arise. Investments denominated in foreign currencies are valued at year-end rates of exchange.

Cash flow statement The Charity has included a cash flow statement in accordance with FRS102 SORP. Note 1 continues opposite

30 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2017 Notes to the Financial Statements

1 PRINCIPAL ACCOUNTING POLICIES continued

Taxation The organisation is a registered charity and has obtained exemptions from taxation under Part 11, Chapter 3 of the Corporation Tax Act 2010. This exemption will remain as long as income is compatible with that section and expenditure is applied to charitable purposes only.

Critical accounting estimates and areas of judgement In preparing financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements.TheTrustees consider the estimates involved in the valuation of investments to have most significant effect on amounts recognised in the financial state - ments. These are taken directly from Investment Managers’ reports. In addition the company has an obligation to pay pension benefits to certain employees.The cost of these benefits and the present value of the obligation depend on a number of factors includin g: life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. Management estimates these factors in determining the net pension obligation in the balance sheet. The assumptions reflect historical experience and current trends. See Note 13 for the disclosures relating to the defined benefit pension scheme.

Going Concern The Trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The Trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. After making enquiries, theTrustees have concluded that there are no material uncertainties that cast significant doubt on the charity’s ability to continue as a going concern.The charity therefore continues to adopt the going concern basis in preparing its financial statements.

Financial instruments The company has elected to apply the provisions of Section 11‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS102 to all of its financial instruments. Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with 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. With the exceptions of prepayments and deferred income all other debtor and creditor balances are considered to be basic financial instruments under FRS 102. See Notes 10 and 12 for the debtor and creditor notes.

Fund accounting Restricted funds are funds available subject to specific restrictions imposed by donors. Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the Institute.

The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2017 31 Notes to the Financial Statements

2 INVESTMENT INCOME 20 17 20 16 £'000 £’000 Income from fixed asset investments 714 686 Bank interest receivable - - 714 686

3 OTHER INCOME 2017 20 16 £'000 £’000 Royalty income CRT Ltd 20 9 TauRX - 85 Donations - 9 20 103

Royalty income is earned from Cancer Research Technology as a result of revenue sharing related to Glover research studies £20k (2016: £9k) . There is no income in 2017 against the MRC TauRX share sale (2016: £85k). No donations were received in the year (2016: £9k) .

4 INVESTMENT MANAGEMENT COSTS 20 17 20 16 £'000 £’000 Partners Capital LLP 165 121 Cazenove Capital Management 124 110 Total investment management fees 289 231

Investment management fees referred to here are those accrued fees relating to the management of the Institute's investment portfolios in 2017.

32 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2017 Notes to the Financial Statements

5 GOVERNING BODY AND STAFF COSTS Emoluments of members of the Governing Body No member of the Governing Body received any emoluments in respect of services to the Institute during the year (2016: nil) .Travel expenses of £2,297 were paid relating to the claims of nine members in connection with their attendance at meetings (2016: £1,897, nine members) . Members of the Governing Body who are also members of the Scientific Advisory Committee receive remuneration in relation to their services to the committee. An honorarium of £1,500 (2016: £1,500) was paid to one of the members, the remainder all received £1,000 (2016: £1,000) .

Employee information The average number of persons employed by the Institute during the year was three (2016: three) , two of whom are part-time (2016: two) . All staff were employed in an administrative and support capacity. No employees earn over £60k p.a. (2016: none ). Key management personnel include the Trustees and the Director. The total employee benefits of the charity’s key management personnel were £51,540 (2016: £50,070) .

Staff costs 20 17 20 16 £’000 £’000 Gross salaries 87 85 Pension contributions 3 3 Employer’s national insurance 6 6 96 94 The salary costs are allocated under governance where related to statutory accounts preparation, the balance being reported within charitable activities.

6 PRIZES & SUMMER STUDENTSHIPS 20 17 20 16 £’000 £’000 Prize awards 1,000 817 Summer Studentship payments 48 50 Support costs (see Note 7) 67 79 Salaries (see Note 5) 84 82 Governance costs (see Note 8) 32 32 1,231 1,060

The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2017 33 Notes to the Financial Statements

7 SUPPORT COSTS 2017 20 16 £’000 £’000 Office expenses 22 12 Travel expenses 4 4 Professional fees 5 4 Honoraria and events 28 50 Pension costs (see Note 13) 8 9 67 79

These costs are all considered to be costs to support resources expended on charitable activities.

8 GOVERNANCE COSTS 20 17 20 16 £’000 £’000 Auditors’ remuneration 11 11 Staff costs (see Note 5) 12 13 Honoraria and events 9 8 32 32

No non-audit services were provided by the auditors during the year (2016: none ). Auditors’ remuneration includes irrecoverable VAT.

9 INVESTMENTS Listed investments are valued at middle market quotations ruling at the year-end 20 17 20 16 £’000 £’000 Market value at beginning of year 41,492 38,568 Purchases during the year at cost 13,719 6,151 Proceeds of sales during the year (13,747) (7,162) Reinvested income for the year 570 550 Movement in un-invested cash (83) 952 Cash withdrawn (1,000) (1,200) Net change in market value 2,632 3,633 Market value at year-end 43,583 41,492

Note 9 continues opposite

34 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2017 Notes to the Financial Statements

9 INVESTMENTS continued

The portfolio’s asset allocation was as follow s: 20 17 20 16 £’000 £’000 UK investments Equities 7,917 8,200 Fixed interest 5,655 5,043 Other (including private equity, property, commodities, alternatives and inflation-linked bonds) 5,868 7,723 Cash 1,616 813 Total UK investments 21,056 21,779

Non-UK investments Equities 15,895 8,322 Other (including private equity, property, commodities and alternatives) 5,716 11,017 Cash 916 374 Total non-UK investments 22,527 19,713

Total 43,583 41,492

At 31 December 20 17 no single shareholding exceeded 5% of the total value of investments (2016: none ). Historical cost related to the closing position of 2017 was £33.7m (2016: £31.1m ).

10 DEBTORS 2017 2016 £'000 £'000 Prepayments 3 1 Accrued income 20 9 Other debtors - 183 Total 23 193

11 CASH 2017 20 16 £'000 £’000 Cash at bank 133 193

The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2017 35 Notes to the Financial Statements

12 CREDITOR S: AMOUNTS FALLING DUE WITHIN ONE YEAR 2017 20 16 £'000 £’000 Taxation and social security 3 4 Accruals 95 60 Total creditors falling due within one year 98 64

13 PROVISION FOR LIABILITIES AND CHARGES This represents a provision for future supplementary pension payments, in respect of ex-employees, based on their salary and length of service.The pensions are unfunded, with payments made out of the Institute’s funds as they fall due. Movements in the pension provision during the year were as belo w: 20 17 20 16 £'000 £’000 Liability at beginning of period 168 177 Plus interest cost 8 9 Plus actuarial gains and losses 11 9 Benefits paid (27) (27) Liability at end of period 160 168

The tables below state the FRS102 actuarial assumptions used to estimate the pension provision. Principal actuarial assumptions Valuation at 31 December 2017 20 17 2016 Rate of increase to pensions in payment 3.0% 3.0% Rate used to discount scheme liabilities 5.0% 5.0%

The post-retirement mortality assumption uses the PCA00 base tables (year of birth) with improvements equal to medium cohort with a 1% minimum.

36 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2017 Notes to the Financial Statements

14 RELATED PARTY TRANSCACTIONS

There were no related party transactions in the year (2016: none) .

15 FINANCIAL INSTRUMENTS 20 17 20 16 £'000 £’000 Carrying amount of financial asset debt instrument at amortised cost 20 192

Carrying amount of financial liabilities measured at amortised cost 95 60

16 MEMBERS’ LIABILITY

The liability of the Members of the Institute is limited to 50p. At the date of the financial statements, there were 197 members (2016: 190 members) , each with a guarantee potential of 50p.

The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2017 37 The Lister Institute of Preventive Medicine Nurturingthe futureleaders in biomedical research

ANNUAL REPORTAND FINANCIAL STATEMENTS for the year ended31 December 2018

The ListerInstituteofPreventiveMedicine isacompanylimited by guarantee(England 34479) andaregistered charity(206271) LEGAL AND ADMINISTRATIVE INFORMATION for the year ended 31 December 2018

THE GOVERNING BODY Professor Sir Alex Markham, DSc, FRCP, FRCPath, FMedSci, Chairman Mr Michael French, BSc(Eng), FCA, Hon Treasurer Professor Judith Armitage, BSc, PhD, FRS Professor Wendy Bickmore, BA, PhD, FMedSci, FRS, FRSE Professor Sir Adrian P Bird, CBE, FRS, FRSE Professor Rebecca Fitzgerald, MD, FRCP, FMedSci Hon Rory M B Guinness, BA, FCIM Professor Douglas Higgs, MBBS, MRCPath, DSc, FRCP, FRCPath, FRS Mr Andrew Hutton, MA, CFA Professor John Iredale, FRCP, FMedSci, FRSE Professor Sir Alec J Jeffreys, CH, DPhil, FMedSci, FRS Mr Matthew Pintus, BA Professor Dame Pamela Shaw, DBE, FRCP, FMedSci (appointed 7 September 2018)

SENIOR MANAGEMENT Secretary and Director: Ms Kate Law

Business Address Registered Office PO Box 2502 Macfarlanes Watford 10 Norwich Street The Institute was founded in 1891 and for WD18 1AE London EC4A 1BD the next 85 years played a vital role in the Solicitors Investment Advisors development of the laboratory aspects of Macfarlanes Cazenove Capital Management preventive medicine as an independent 20 Cursitor Street 1 London Wall Place research institute in the UK. London EC4A 1LT London EC2Y 5AU

Financial pressures in the 1970s led to the Bankers Partners Capital LLP closure of the research and production facilities Messrs Coutts & Co 5 Young Street and the conversion of the Lister Institute into St Martins Office London W8 5EH a highly successful Trust awarding prestigious 440 Strand Research Fellowships from 1982, which in 2003, London WC2R 0QS Website: www.lister-institute.org.uk Telephone: 01923 801886 were revised to become Prize Fellowships. The Auditor Fellowships continue to deliver on the Lister Institute’s strategic aim of nurturing the future Kingston Smith LLP Devonshire House leaders in biomedical research. 60 Goswell Road London EC1M 7AD

The cover portrait of Lord Lister reproduced by courtesy of the Royal Veterinary College The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2018 3 LEGAL AND ADMINISTRATIVE INFORMATION CHAIRMAN’S ANNUAL REPORT for the year ended 31 December 2018 for the year ended 31 December 2018

THE SCIENTIFIC ADVISORY COMMITTEE THE YEAR 2018 saw considerable volatility in global markets resulting, for the first time in a number of years, a small fall in the Institute’s reserves, with a final valuation of £40.8m (from Professor John Iredale, FRCP, FMedSci, FRSE, Chairman £43.6m at the end of 2018). Continuing market uncertainty relating to BREXIT and general Dr Ian Adams, BSc, PhD global instability led to a decision to maintain the liquidity account of £5m, set aside to ensure Professor Judi Allen, MPH, PhD, FRSE, FRSB, FMedSci that the Lister Institute is able to award a minimum of six prizes each year at £250k each over a Professor Jon Cohen, FRCP, FMedSci (retired 7 September 2018) three-year period. Professor Cyrus Cooper, OBE, MA, DM, FRCP, FFPH, FMedSci The Governing Body has met, as usual, twice during the year, whilst the Charity’s two sub- Professor William Deakin, PhD, FRCPsych, FMedSci (retired 7 September 2018) committees, the Finance and Investment Committee and the Scientific Advisory Committee Professor Annette C Dolphin, PhD, FMedSci,FRS (retired 7 September 2018) have overseen their areas of responsibility with their usual efficiency. Professor Margaret C Frame, PhD FRSE FMedSci On the research front the number of applications (103) is at its highest ever level and, given Professor Corinne Houart, PhD the quality of the applications and with the approval of the Trustees, I’m delighted to report that Professor Nick Lemoine, MD, PhD, FRCPath, FMedSci (retired 7 September 2018) we were able to fund seven Fellowships at £250k each. The Lister Fellows and former Fellows Professor Catherine Nobes, BSc, PhD continue to undertake excellent research, publish high impact papers and gain academic Professor Sir Mike Owen, PhD, FRCPsych, FMedSci, FLSW advancement and recognition on many fronts with congratulations going to former Lister Professor Barry V L Potter, MA, DPhil, DSc, CSci, FRSC, FMedSci Fellow, Professor Andrew King who, in 2018, was elected as a Fellow of the Royal Society. The Institute does, of course, appreciate that it cannot take sole credit for its Fellows and Members Professor Fiona Powrie, FRS FMedSci achievements, since they will receive personal support and funding from many other agencies. Professor Christoph M Tang, MBChB, PhD, FMedSci However, visits to Host Institutions and discussions with Fellows and Members of the Lister Professor Josef Vormoor institute give me great confidence that the Lister Institute Prize is still seen as a highly prestigious and valued award, with the flexibility that it ofers its greatest strength. Secretary: Ms Kate Law, BSc Governing Body and Administrative Matters The Governing Body met once in April and then before the start of the September Fellows’ THE FINANCE AND INVESTMENT COMMITTEE meeting in Oxford (of which more later). As ever, I must pay tribute to the quality and dedication of its members and the speed and clarity with which they respond to Lister matters. Turnover Mr Michael French, BSc (Eng), FCA, Chairman amongst Trustees of a charity is a necessity, since it brings new individuals with a fresh Professor Judith Armitage, BSc, PhD, FRS perspective to the oversight of the organisation. This year I am delighted to report that Professor Hon Rory M B Guinness, BA, FCIM Dame Pamela Shaw, DBE, FRCP, FMedSci (Vice President and Head of the Faculty of Medicine Mr Andrew Hutton, MA, CFA and Dentistry and Professor of Neurology at the University of Sheffield) has agreed to join the Professor Sir Alex Markham, DSc, FRCP, FRCPath, FMedSci Governing Body and was formally appointed to this position at the AGM in September. Mr Matthew Pintus, BA The Articles of Association of the Lister Institute require that, each year, the longest serving elected member on the Governing Body step down. Professor Wendy Bickmore is currently the Secretary: Ms Kate Law, BSc longest serving elected member and I’m pleased to report that she has agreed to serve another term which was approved unanimously by members at the AGM. The Institute continues to be run very smoothly thanks to a small administrative team consisting of the director, Kate Law, the administrator, Naomi King and accountant, Jacky Wilson. My thanks, as ever, go to them on behalf of all the Trustees. Sadly, I do have to report that, in 2019/20, there is likely to be significant change in the administrative team with all three planning their retirement over the next 18 months. I am entirely confident that they will ensure a seamless transfer with their respective successors.

4 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2018 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2018 5 Chairman’s Report Chairman’s Report

Institute membership Scientific Activities Four Fellows, who completed their fellowship in 2018, have been welcomed into membership The work of the Scientific Advisory Committee in selecting the Prize Fellows is at the heart of of the Institute. They are: Professor Simon Draper, University of Oxford, Professor Sherif El- the Institute’s activities. In 2018 we received the highest ever number of applications and the Khamisy, University of Sheffield, Dr Anne Straube, University of Warwick, and Professor Tatjana SAC was faced with the daunting task of selecting just 6 (later increased to 7) Prize Fellows from Sauka-Spengler, University of Oxford. 103 proposals. The Institute is indebted to its members for their dedication and enthusiasm for the task and I would like to particularly thank the new Chairman, Professor John Iredale, for taking on this challenging role. The process follows a standard pattern with initial screening Financial Matters and scoring by SAC members to arrive at a long-list. The candidates are then further evaluated with the help of comments from independent international reviewers, arriving at a short-list of During a continuing period of global instability including the lack of clarity regarding the eleven candidates who were then interviewed. As the selection process proceeds, the standards impact of BREXIT the Lister portfolio has, perhaps unsurprisingly, reduced by almost £3m since are very high and, coupled with the diverse fields of research represented, the task of selecting 31st December 2017 resulting in reserves of £40.7m once the £1.75m had been withdrawn to the ‘winners’ is extremely difficult – it is a tribute to SAC members and their chairman that each pay for this year’s Fellowships. Both investment managers have performed as well as could be year they identify some truly exceptional young researchers – and this year was no diferent. expected in a challenging environment although there will, as a routine, be close monitoring of It is important that awards reflect the diversity of applicants and researchers in general and the portfolio as well as ongoing discussions with respect to the number and level of Fellowships reassuring to see the geographical spread and gender balance of the Fellows. and Studentships. The low volatility portfolio does, reassuringly, provide us with significant protection against a weak and volatile market and ensures the ability to fund six Fellowships Given the history of the Institute and its close ties and 40 Studentships over a 3-year period as agreed by the Governing Body Members in 2017 with the Guinness family it is, however, somewhat and ratified in 2018. disappointing that we have never awarded a Prize All expenditures are in line with the agreed 2018 budget. The Institute’s operational costs to an Ireland based researcher. This year Rory remain low at £194k, with investment fees less than for 2017 at £215k compare to £289k. The Guinness, Kate Law and I attempted to address Lister Institute’s total expenditure for 2018 was £2.23m. There will be ongoing IT costs to ensure this situation by visiting Dublin and hosting a compliance with data security requirements under EU legislation (which will continue even if we meeting of a number of locally based senior and should leave the EU). junior academics and generally promoting the As always, the Lister institute is indebted to our Treasurer, Michael French and all the Prize Fellowship scheme. Kate also sent flyers with members of the Finance and Investment Committee and I should like to thank them all for information about the scheme across Ireland. This their scrutiny of the Institute’s finances (and the rigorous questioning of our current investment resulted in a significant increase in the number of advisors, Partners Capital LLP and Cazenove Capital Management). As chairman, it is particularly 2018 applications from Ireland. However, at the pleasing to see, as notably demonstrated in 2018, their willingness to maximise expenditure time of writing it is too early to say whether or not on science. There were no significant issues with respect to the accounts raised by the auditors, Professor Sir Alex Markham any will be successful in 2019. Kingston Smith. As with all Institute committees there is planned turnover in the membership and, in 2018, As previously mentioned, I’m sorry to inform you that Jacky Wilson, who has provided us we were sorry to lose Professors Jon Cohen, Bill Deakin, Annette Dolphin and Nick Lemoine. with exemplary service as the Lister accountant for over 15 years, will be leaving us in 2019. With Replacing them (and members who had left in 2017) the Institute was pleased to welcome the assistance of one our trustees, the Hon Rory Guinness, plans are well underway to ensure a Professors Judi Allen, Kate Nobes, Mike Owen, Barry Potter, Fiona Powrie and Josef Vormoor to smooth transition to a new accountant in 2019. their first meeting of the SAC. Further details on the Institute’s finances can be found on page 22 and are summarised in I was delighted to see the Summer Studentship scheme extended to 36 recipients (one the Statement of Financial Activities on page 27. more than budgeted). The scheme enables Lister Fellows and Former Fellows to ofer places to outstanding students who then have the opportunity to experience research in a first-rate laboratory and make better informed decisions about their career pathways. Given the scheme’s popularity (it is always over-subscribed) and its success, the Trustees have agreed to increase the number of Studentships to 45 next year.

6 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2018 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2018 7 Chairman’s Report Chairman’s Report

2018 Lister Research Prize Fellowship Winners Current and Former Lister Prize Fellows

Prize Winner Title of Research Fellow Title of Research Awarded

Dr Tom Baden Anisotropic retinal circuits for processing Dr Cynthia Andoniadou Regulation of stem cell potential in the mammalian 2016 University of Sussex of colour and space in nature King’s College London pituitary gland

Dr M Madan Babu Dynamics of tRNA abundance and the regulation 2014 MRC Laboratory of of protein expression levels Molecular Biology, Dr Rebecca Corrigan Analysis of the role of (p)ppGpp in staphylococcal Cambridge University of Sheffield infection using zebrafish as a model organism Dr Nina Balthasar Identifying the novel CREB coactivator TORC2’s role 2007 University of Bristol in the hypothalamic pathways controlling energy homeostasis

Dr Mark Dodding A new chemical biology approach to target Dr Oliver Billker In search of the xanthurenic acid receptor of malaria 2004 University of Bristol molecular motors for the manipulation of The Wellcome Trust Sanger parasites - a potential target for transmission control cytoskeleton and organelle dynamics Institute, Cambridge

Dr Emmanuel Boucrot Mechanisms of cargo selection and vesicle formation 2014 University College London in a novel pathway of endocytosis Dr Matthew Hepworth Targeting cell metabolism to regulate innate University of lymphoid cells in health and disease Dr Simon Bullock Mechanisms and neuronal functions of motor- 2008 Manchester MRC Laboratory of driven transport Molecular Biology, Cambridge

Dr Yanlan Mao Mechanochemical regulation of tissue growth Professor Nia Bryant Using yeast as a model system to understand the 2004 MRC-Laboratory for and morphogenesis University of York insulin-dependent trafficking of GLUT4 in adipocytes Molecular Cell Biology University College Professor Juan Burrone The role of neuronal activity during synapse formation 2009 London King’s College London

Dr Joseph Marsh The dominant-negative effect in protein Dr Vincenzo Costanzo The role of ATM and ATR in preventing genomic 2006 MRC Human Genetics complexes: implications for human genetic Cancer Research UK instability Unit University of disease Clare Hall Laboratories Edinburgh Professor Victoria Cowling Regulation and function of the 7-methylguanosine cap 2011 University of Dundee Dr Amanda Biomarkers of materno-fetal health: role of Sferruzzi-Perri placental endocrine mediators in normal and Professor Daniel Davis Nanotubes and synapses in immune cell communication 2005 University of Cambridge obese pregnancies Imperial College London

Professor Simon Draper Development of next-generation broadly-neutralising 2013 The Jenner Institute, Oxford vaccines against the blood stage infection of human malarias Note: The academic rank of each Prize winner is shown as at the date of the award.

8 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2018 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2018 9 Chairman’s Report Chairman’s Report

Current and Former Lister Prize Fellows Continued

Fellow Title of Research Awarded Fellow Title of Research Awarded

Professor Michael Prevention of deaths from late respiratory failure 2011 Professor Josef Kittler Miro family proteins as regulators of synaptic 2010 Eddleston in organo-phosphorus pesticide poisoning University College London bioenergetics and a locus for mitochondrial dysfunction University of Edinburgh in neurological disease 2013 Professor Sherif The repair of oxidative and topoisomerase induced Professor Robert Klose Biochemical isolation and functional dissection of the 2011 El-Khamisy chromosomal strand breaks and human disease University of Oxford CpG island proteome University of Sheffield Dr David Komander Bacterial interference with the ubiquitin system 2012 Professor Rebecca Translational research programme for prevention 2008 MRC Laboratory of Fitzgerald of oesophageal adenocarcinoma Molecular Biology, University of Cambridge Cambridge

Dr Agnieszka Gambus Identification and characterisation of Mcm7 2015 Dr Yogesh Kulathu Regulation and function of protein FUBlylation 2017 University of Birmingham ubiquitin ligase University of Dundee

Dr Holger Gerhardt Endothelial guidance in vascular patterning 2008 Professor Paul Lehner The role of HSP70 in MHC Class I mediated antigen 2004 VIB Vesalius Research Centre University of Cambridge presentation in human dendritic cells KU, Germany Professor David Lyons Elucidating mechanisms of myelinated axon formation, 2012 Dr Susana Godinho Regulation of paracrine signalling by centrosome 2016 University of Edinburgh function and repair using zebrafish Queen Mary University amplification of London Professor Juan Functional parallels between HIV-1 budding and the last 2008 Martin-Serrano step of cell division Professor Fiona Gribble Secretion of incretin hormones from the mouse intestine 2006 King’s College London University of Cambridge Professor Robin May The molecular basis of latency and dissemination during 2010 Dr Sebastian Guettler Structural basis and mechanism of telomere 2017 University of Birmingham cryptococcosis The Institute of Cancer maintenance by poly(ADP-ribosyl)ation Research Dr Serge Mostowy Bacterial autophagy and the cytoskeleton in host 2015 Imperial College London defence Professor Muzlifah Haniffa In vivo kinetics and functional response of human 2016 Newcastle University mononuclear phagocytes during acute tissue Dr James Nathan The interplay between metabolism and oxygen sensing 2017 inflammation Cambridge Institute for Medical Research Dr Sophie Helaine Salmonella Persister formation at the single cell level 2017 Imperial College London Dr Akhilesh Reddy Peroxiredoxins and redox oscillations in the circadian 2012 University of Cambridge (24 hour) clockwork Professor Andrew Jackson Cellular pathways determining human brain size 2009 University of Edinburgh Professor Jan Rehwinkel Z-RNA and Z-DNA: Novel inducers of antiviral immunity 2016 University of Oxford Dr Ragnhildur Karadottir The role of neuronal activity in myelin repair 2015 Welcome Trust – MRC Cambridge Stem Cell Institute

10 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2018 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2018 11 Chairman’s Report Chairman’s Report

Current and Former Lister Prize Fellows Continued

Fellow Title of Research Awarded Fellow Title of Research Awarded

Dr Rahul Roychoudhuri Resolving mechanisms of gene regulation within the 2017 Dr Erica Watson Mechanisms of folate metabolism during the trans- 2015 The Babraham Institute immune system using forward genetics University of Cambridge generational inheritance of disease

Professor Tatjana Decoding gene regulatory circuits controlling 2013 Professor Steven West The nature, mechanism and function of RNA polymerase 2015 Sauka-Spengler multipotency of neural crest University of Exeter II modifications in health and disease Weatherall Institute of Molecular Medicine, Oxford

Dr Melina Schuh Mechanisms of aneuploidy in human oocytes 2014 Max Planck Institute for Fellowship Activities Biophysical Chemistry, With Christ’s College, Cambridge no longer able to host the Institute’s annual meeting we Germany moved to the equally beautiful surroundings of Corpus Christi College, Oxford who provided Professor Daniel Smith Investigating the overlap between hypertension 2016 excellent support in making the meeting its usual success. Turnout was slightly higher than University of Glasgow and bipolar disorder to identify new and repurposed in 2017 and, given the positive feedback from the two-day meeting in 2016 (celebrating the medications for bipolar disorder 125th anniversary of the Institute) we continued with a similar schedule. The meeting began on Thursday afternoon with an informal poster session which provides current Fellows with an Professor Kenneth Smith Control of infection and autoimmunity by an inhibitory 2007 excellent opportunity to present and discuss their research and any concerns they may have University of Cambridge Fc receptor FcγR11b with senior members of the Institute. It is encouraging to note that a number of collaborations Professor Grant Stewart Investigating the role of the RIDDLE syndrome gene 2009 have been established in this way. University of Birmingham in promoting repair of DNA damage Friday’s meeting provided, as ever, a series of outstanding presentations across a diverse range of topics. The day was taken up by excellent talks from all seven of the winners of the 2018 Dr Anne Straube Microtubule-actin crosstalk in cell migration 2013 Prize Fellowships listed on page 8, in addition to one Fellow (Dr Yogesh Kulathu, University of University of Warwick Dundee) who had been unable to attend in 2017. These talks aptly illustrated the diversity of Dr Sarah Teichmann Decoding genetic switches in T helper cell differentiation 2010 scientific research funded by the Institute. The Wellcome Trust Sanger Inst and EMBL-EBI, Dr Yogesh Kulathu Regulation and function of protein FUBlylation Cambridge University of Dundee

Professor Tomoyuki Tanaka Mechanisms of kinetochore-microtubule interaction 2005 Dr Tom Baden Evolution of function in the brain: University of Dundee University of Sussex What can we learn from the vertebrate retina?

Professor Chris Thompson Identifying and characterising genes that control cell 2005 Dr Rebecca Corrigan ppGpp – an essential signaling system for the University of Manchester fate choice and social behaviour University of Sheffield virulence of bacteria

Professor Daan van Aalten Structural mechanisms and specificity of O-GlcNAc 2006 Dr Mark Dodding Mechanism and manipulation of kinesin-1 University of Dundee signalling in the eukaryotic cell University of Bristol inhibition and activation

Dr Fiona Wardle Transcriptional control of mesodermal cell differentiation 2007 Dr Matthew Hepworth Innate lymphoid cells in health and disease King’s College London in vertebrates University of Manchester

12 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2018 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2018 13 Chairman’s Report Chairman’s Report

Dr Joseph Marsh Protein complexes and human genetic disease Conclusion University of Edinburgh There is always a risk in moving away from a successful venue. However, I was delighted with Dr Amanda Sferruzzi-Perri Understanding how the placenta remote controls the the first annual meeting in Oxford and look forward to our future meetings in that location. University of Cambridge metabolism of the mother to support fetal growth As always, the meeting provides the opportunity to gain insight into the high-quality research of those who gave presentations but also the opportunity for Fellows and Members to speak Dr Yanlan Mao Biomechanical regulation of tissue growth and repair informally about science and careers. We know from speaking to the current fellows how much University College London they value the opportunity to mix with their senior colleagues and discuss their research and the general challenges of academia.

Photos: Professor Sir Alex Markham and Dr Yogesh Kulathu; Professor Sir Alex Markham and Dr Amanda Sferruzzi-Perri; Professor Sir Adrian Bird The quality of these talks from the most recent members of the ‘Lister Institute family’ established the continuing excellence of Lister Prize winners. Whilst the topics varied widely throughout the day the depth of knowledge and enthusiasm of the speakers was a constant, confirming the outstanding quality of the individuals awarded Lister Prize Fellowships. Photos: Professor Sir Alex Markham with Dr Tom Baden; Professor Sir Alex Markham with Dr Joseph Marsh The 2018 Special Lister Institute Lecture was given by Professor Sir Adrian Bird, CBE, FRS, FRSE, Buchanan Chair of Genetics at the University of Edinburgh. Professor Bird’s talk entitled ‘Towards As ever, one of the highlights of the year for me has been listening to the Prize Fellows understanding and treatment of Rett Syndrome’ described his work studying animal models of giving seminars in their own departments, hearing how the award has helped them develop the debilitating autism spectrum disorder, Rett Syndrome to better understand the origin and their research groups and talking to other members of their departments about the research potential reversal of this condition. This profound brain disorder almost exclusively results from environment and any funding issues. Travelling around the country also serves to reassure me mutations in the MECP2gene. Remarkably, Rett syndrome in mice is reversed by restoring the about the wide geographical spread of the Fellowships with a number of ‘new’ locations visited normal gene, strongly suggesting that the disorder will be curable. Professor Bird explained that in 2018. To all of those Fellows and their host institutions, Kate Law and I would like to express his Group has supported a two-pronged efort to bring treatments for Rett syndrome closer to our thanks for their hospitality and the ongoing support of the Fellows. It is very clear to me the clinic. One promising approach involves administration of a correct MECP2gene to the brain that the Lister Institute is fulfilling its stated aim of ‘nurturing the future leaders in biomedical via gene therapy. A second bottom-up route involves learning how the protein works so that research’. downstream consequences of its absence can be rectified. They have learned that MeCP2 binds At this point it is again fitting that I pay tribute to Professor John Iredale and all the members to sites on the genome that are chemically altered by DNA methylation; it therefore acts as a of the Scientific Advisory Committee since it is eminently clear that they are doing an excellent “reader” of this “epigenetic” mark. The spectrum of mutations causing Rett syndrome, backed job in selecting the very best individuals for the award of the Lister Prizes. As the number of up by biochemistry and genetics, reveal that the primary function of MeCP2 is to inhibit gene applications continue to increase every year it is very apparent that this is becoming an expression in a DNA methylation-dependent manner. These results elucidate the global role increasingly demanding role! I must also thank all my colleagues on the Governing Body for all played by MeCP2 in neurons and they suggest future options for therapy. their hard work and support. The strength of the Institute is the people associated with it, whether Professor Bird set a very high bar for those giving Special Lectures in the future years given they be Trustees, Members of the Governing Body and its sub-committees, the Membership, our his ability to speak on a complex subject with such clarity and enthusiasm. Fellows or the staf, and to all I ofer my sincere thanks and warmest appreciation. The Reception and dinner were the usual lively and enjoyable occasions and, following presentation of scrolls to the eight Prize Fellows from 2017 and 2018, they were welcomed into ALEX MARKHAM the Lister Institute Family in traditional style. A fitting finale to our first meeting in Oxford! CHAIRMAN

14 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2018 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2018 15 FELLOWS’ MEETING 2018 Corpus Christi College, Oxford

Clockwise photos 1. Corpus Christi College, Oxford Image © 2019 Corpus Christi College, Oxford 2. 2018 winners plus 2017 (Dr Kulathu) with Professor Sir Alex Markham 3. The Hon Rory Guinness and Naomi King 4. Professor Sir Alex Markham and Dr Rebecca Corrigan 5. Dr James Nathan (left) and Dr Yogesh Kulathu

16 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2018 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2018 17 REPORT OF THE GOVERNING BODY Report of the Governing Body for the year ended 31 December 2018

The Governing Body presents its Annual Report four such appointees. One additional member as providing scientific and medical advice to the • Clear authorisation and approval levels under the Charities Act 2011 together with the is Lord Iveagh’s representative, another is Governing Body as required. In 2015, the peer • Regular review of Fellows’ scientific reports audited Financial Statements of the Charity Professor Sir Alec Jefreys who was appointed review processes of the SAC were audited by for the year ended 31 December 2018. The to life-membership, and the final member, the Association of Medical Research Charities The specific risk of bribery associated with any Financial Statements have been prepared in Professor Douglas Higgs, is the representative and found to be meeting the highest standards. of the Institute’s activities has been reviewed, accordance with the accounting policies set out of the Royal Society. Trustees, other than the The Finance and Investment Committee (see and clear policies and procedures have been in Note 1 (page 31) to the Financial Statements two nominated representatives, Professor Sir page 4 for membership) has responsibility developed and communicated to all Trustees, and comply with the Companies Act 2006, the Alec Jefreys and exceptionally those appointed for interaction with the Institute’s investment staf and Members. FRS102 Charities SORP and the documents by the Governing Body, generally serve for a advisors, ensuring implementation of the The specific risk of scientific misconduct by governing the constitution of the Charity. maximum of six years and a system of planned Institute’s investment policy and monitoring Lister Fellows has been reviewed by the Trustees rotation is in place. Currently two positions performance. It prepares and submits to the and, as a result, minor amendments have been LEGAL AND ADMINISTRATIVE DETAILS are deliberately being kept vacant. When Governing Body the annual budget, and made to the risk log. Legal and administrative information is set out considering appointment or nomination for subsequently monitors performance against it. The Lister website and terms and conditions on pages 3 and 4 of this report. election as Trustees, the Governing Body has It also advises the Governing Body, as required, have been updated in response to the 2018 EU regard to the specialist skills needed. on other financial and risk matters. Members of the Governing Body, General Data Protection Regulation (GDPR). The routine management of the Institute’s Directors and Trustees Induction and training of Trustees The Charity has also voluntarily subscribed to activities is undertaken by its Director, aided by The members of the Governing Body are, for New Trustees undergo induction sessions with membership of the Information Commissioners the Administrator and the Accountant. All staf the purposes of company law, Directors of the the Chairman, Treasurer and Director during Office (ICO) the UK’s independent authority set work from home. Institute and, for the purposes of charity law, which they will gain an understanding of the up to uphold information rights in the public In the year ending 2018 none of the Charity’s Trustees of the Institute and throughout this Institute’s structure, activities, financial position interest, promoting openness by public bodies Trustees have received any remuneration or any report are collectively referred to as the Trustees. and future strategies. Prior to appointment they and data privacy for individuals. Membership other benefits in relation to their dealings with Details of the Trustees serving throughout will attend, as ‘observers’, one meeting of the provides access to information and advice the Charity. the year, unless otherwise stated, are set out on Governing Body. New Trustees will also be made on matters relating to data protection and The Chairman and the Treasurer of the Charity page 3. aware of their legal obligations with regard reassurance for the charity in respect of agree the Director’s remuneration that, along to charity and company law. In addition, new compliance with the Regulation. with other Lister Institute staf, is normally STRUCTURE, GOVERNANCE AND Trustees will be advised of appropriate literature The Institute maintains a ‘Register of Interests’ increased in line with RPI. Salaries are also MANAGEMENT and training courses. for all Governing Body and committee members compared to similar organisations and adjusted as well as principal staf and operates a clear Constitution Organisation periodically where appropriate. ‘declaration of interests’ policy and procedures The Institute is registered with the Charity The Institute is governed by its Governing Risk Management for all meetings. Commission for England and Wales (registration Body which is responsible for setting policies, The Trustees assess the risks facing the Institute The principal risk facing the Institute lies in number 206271). It is incorporated and authorising actions on all significant operational and review the efectiveness of the controls to its ability to maintain and protect the value in registered in England and Wales under the issues and ensuring legality and good practice. monitor and mitigate them. A Risk Management real terms of its investments and to generate Companies Act 2006 as a company limited The Governing Body meets formally twice Register is maintained from them, on a long-term basis, a consistently by guarantee and not having a share capital a year. The Treasurer and Chairman review and formally reviewed annually by the high overall return. This risk is mitigated by (company number 34479). It is governed by its the remuneration of all staf once a year. This Governing Body. the Institute’s appointment of experienced Articles of Association and has charitable status. includes the remuneration of those individuals investment managers with a proven track considered to be key management personnel. The key controls used by the Institute include: Appointment and re-appointment of Trustees record; by internal controls that allow close and Specific authorities are delegated to two The Trustees are the fifteen members of the • Formal agendas for all Governing regular monitoring of their performance against sub-Committees in particular areas. The Governing Body of whom six are appointed by Body meetings benchmarks; by the Institute’s requirement of its Scientific Advisory Committee (see page 4 for the members at the annual general meeting. A • Strategic planning, budgeting investment managers to re-tender periodically membership) has responsibility for the selection maximum of six further Trustees are appointed and management accounting and competitively for appointment – as of the Lister Institute Prize Fellows and the by the Governing Body and there are currently happened in 2017; and by regular meetings that monitoring of their scientific activities, as well • Formal written policies formally review investment performance and

18 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2018 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2018 19 Report of the Governing Body Report of the Governing Body

policy, and include one-to-one presentations year to work with Lister Institute Fellows or The Institute maintained its commitment encouraged. Several biotechnology companies by the investment managers. former Fellows in order to gain experience of to fostering scientific interchange and have been formed around the findings of Investment Policy Statements are in place for biomedical research with the hope that they collaboration within the Fellowship by holding Institute-sponsored research and there are the Lister Institute and its investment partners. might consider it as a career. its 34th Annual Research Fellowship meeting several interactions with large pharmaceutical These are reviewed on an annual basis. at Corpus Christi College, Oxford. companies. A prime example of the impact of Achievement and Performance Lister Institute research is DNA fingerprinting, Objectives and activities The Scientific Advisory Committee has Public Benefit which was discovered by Sir Alec Jefreys The statutory Object of the Institute is to monitored the performance of the current In so far as the statutory objectives, aims and when a Lister Institute Fellow and has become further understanding and progress in 29 Lister Institute Prize Fellows, through activities of The Lister Institute of Preventive an integral part of society, helping to prove preventive medicine by promoting excellence in detailed review of the annual reports on their Medicine are to further understanding in innocence or guilt in criminal cases, resolving biomedical research in the UK and Ireland. research that include details of all publications preventive medicine by promoting biomedical immigration arguments and clarifying paternity. When founded in 1891, the Institute sought to and presentations. The Scientific Advisory research as set out on page 20 of this Report, achieve this objective by establishing a research Committee has reported to Trustees that it is the Trustees have considered the Charity Investment policy and performance institute specialising in the area of ‘infections’ of the view that all Fellows are undertaking Commission’s guidance on public benefit, The Institute’s investment objective is to and their prevention by immunisation and high quality research and producing new including the guidance ‘public benefit: running develop and maintain its financial resources other means. It complemented these research knowledge that will contribute significantly a charity (PB2)’. through the selection of investments, consistent activities by the production and supply of to our understanding of disease, its causes, The public benefit of the Institute’s with an acceptable level of risk. materials such as vaccines and anti-toxins. treatment and prevention. The reports of the grant-making is clearly identifiable in the The Institute’s investment portfolio is split The Institute continued in this mode until research undertaken by the Summer Students ‘Achievement and Performance’ paragraphs between Cazenove Capital Management and the late 1970s when increasing financial and have also been reviewed and found to be very above and in the list of Research Prize Fellows Partners Capital LLP who both operate under regulatory pressures caused the cessation of satisfactory. together with their areas of research on pages mandates agreed in advance with the Finance these activities. Proceeds from the resultant sale Seven Lister Institute Prize Fellowships were 9 to 13 of the Chairman’s report. All Lister and Investment Committee. These mandates of land and buildings created the investment awarded in 2018 to Dr Tom Baden, University Institute Fellows are actively encouraged, set out an overall target asset allocation with funds from which present-day activities are of Sussex; Dr Rebecca Corrigan, University where appropriate, to develop their research allowable ranges for each category of asset. financed; at 31 December 2018 these funds of Sheffield; Dr Mark Dodding, University of findings for potential public benefit and the Both investment managers invest on a total stood at £40.82m. From the 1980s the Institute Bristol; Dr Matthew Hepworth, University of Scientific Advisory Committee has regard to returns basis through a variety of pooled has pursued its objective of nurturing future Manchester; Dr Joseph Marsh, University of this when reviewing their research reports. The funds and in accordance with the Institute’s leaders by the provision of grant funding Edinburgh, Dr Amanda Sferruzzi-Perri, University Lister Institute therefore benefits the public or overarching ‘Investment Policy Statement’ (IPS), to facilitate the research and careers of of Cambridge and Dr Yanlan Mao, University a sector of it without imposing any restrictions. which states the overall investment objective high-quality individuals working in areas of College London from an initial field of 103 Applications from individuals are accepted and sets the investment return objectives, the biomedicine relevant to preventive medicine. applicants, following extensive scientific review only when demonstrably consistent with the risk parameters, the performance measures It has done this because it believes that the of their applications and final interview by the charitable objectives of the Institute. and review procedures for the portfolio. The acquisition and advancement of knowledge Scientific Advisory Committee. (More details of Institute’s IPS was revised in the autumn of Impact is crucial to the understanding of health and the Prize Fellows and their research are provided 2013 and again in 2015, as a result of the The impact of the activities of a medical disease and that research to achieve this is on page 8). Each Prize Fellowship provides establishment of the liquidity reserve. Specific research charity can be measured at many driven forward by high quality individuals and £250k that may be spent over five years on the versions were also agreed for each of the levels ranging from the growth of knowledge their supporting staf. recipient’s research, with all the funds provided investment managers to reflect their individual to direct patient/public benefit. Often the to the host institution at the commencement of investment approaches. The IPSs are reviewed Principal activities transition from the former to the latter may the award. annually. The investment managers are In pursuance of this objective, during 2018 the take many years and the involvement of several Thirty six Summer Studentships were awarded informed at the beginning of the financial year Institute awarded seven new Prize Fellowships. organisations. The Institute requires that the in 2018. Each is a £2k student bursary and is paid of the Institute’s likely cash requirements, both In addition, the Institute has continued its results of the research it supports are published to the host institution at the commencement of in terms of the amount and the timing of any Summer Studentship scheme that has enabled and disseminated; that, where appropriate, the award for the support of the student for up draw-down and are asked to keep in an income an increasing number of undergraduates per significant intellectual property is protected via to a ten-week period. or cash account sufficient funds to meet them. patents; and that its commercial development is

20 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2018 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2018 21 Report of the Governing Body Report of the Governing Body

The Institute has in place an ethical investment FINANCIAL REVIEW the long-term and, given that the Institute is inappropriate to presume that the charitable policy which does not permit direct investment Allocation of resources not formally committed to awarding any Prizes company will continue in business. in tobacco or tobacco-related companies. The Institute, which does not seek to raise beyond the current year, are confident in the The Trustees are responsible for keeping The Institute’s overall financial return objective funds from the public, depends primarily ability of the Institute to maintain appropriate proper accounting records that disclose with is to preserve and, if possible, enhance the on investment returns to meet its pension levels of activity in the short-term. reasonable accuracy at any time the financial purchasing power of its portfolio assets, net of provision payments, administrative expenditure Plans for the future position of the charitable company and enable costs and approved withdrawals, over rolling and expenditure in furtherance of the Charity’s The Institute’s future policy is to continue to them to ensure that the financial statements five-year periods. This goal is synonymous with objectives. The total return on investments pursue its current objectives. It will therefore comply with the Companies Act 2006. They are the pursuit of a time-weighted net return on for the year was a realised/unrealised loss of maintain and look to increase the Prize also responsible for safeguarding the assets portfolio assets that equals and, if possible, £1.536m and investment income of £978k. Fellowship scheme, which it sees as a funding of the charitable company and hence for exceeds cost inflation as measured by the UK The resources expended totalled £2.253m priority. The Summer Studentship scheme will taking reasonable steps for the prevention and Consumer Price Index plus the Institute’s long- of which £2.015m were resources expended also be increased when possible. detection of fraud and other irregularities. term spending rate of 3-4% measured over for the Institute’s charitable activities. Trustee Responsibilities Statement corresponding five-year periods. Until 2018 this The Prize Fellowships are fixed sum awards In so far as the Trustees are aware: goal has been achieved over the previous five- The Trustees (who are also directors of The and, therefore, expenditure can be regulated • there is no relevant audit information of year period. Lister Institute of Preventive Medicine for the by altering the number and/or value of which the charitable company’s auditor is The performance of the investment portfolio purposes of company law) are responsible for prizes awarded each year. In 2018, due to unaware; and preparing the Trustees’ Annual Report and is reviewed by the Finance and Investment the substantial increase in the value of the the financial statements in accordance with • the Trustees have taken all steps that they Committee, which had two meetings in the investment portfolio, the Trustees felt able, applicable law and United Kingdom Accounting ought to have taken to make themselves year with the investment advisors to review as an exceptional case, to award seven Prizes Standards (United Kingdom Generally Accepted aware of any relevant audit information and performance, liquidity within the portfolio, and and to increase their value to £250k each. As Accounting Practice). to establish that the auditor is aware of that the due diligence undertaken on potential new previously described, a £5m portfolio has been Company law requires the Trustees to prepare information. investment vehicles. In addition, the Institute established so that the number and level of financial statements for each financial year, receives detailed quarterly valuation and awards is sustainable over a minimum of three The Trustees are responsible for the which give a true and fair view of the state transaction reports. In a year that saw increasing years. A decision was taken in 2017 to increase maintenance and integrity of the corporate of afairs of the charitable company, and volatility in the market the fund has fallen the number of studentships to thirty-five (an and financial information included on the of the incoming resources and application slightly from £43.58m to £40.82m. A decision, additional student was funded via Chairman’s charitable company’s website. Legislation in the of resources, including the income and taken in 2015 (and ratified in subsequent years), action) amounting to £72k. Forty-five United Kingdom governing the preparation and expenditure, of the charitable company for that to withdraw and place studentships will be awarded in 2019. dissemination of financial statements may difer period. In preparing these financial statements, £5m in a Liquidity Account was based both on Payments are currently made to five pensioners from legislation in other jurisdictions. the Trustees are required to: the recent strong growth of the portfolio but who are previous employees of the Lister Institute. This Trustees’ report has been prepared in also concerns about future market volatility • select suitable accounting policies and then accordance with the special provisions of Part and performance. Given the increase in the Reserves policy apply them consistently; 15 of the Companies Act 2006 relating to small number and level of the Fellowships a further The policy of the Trustees is to maintain • observe the methods and principles in the companies. discussion was held in 2018 and the decision adequate financial resources to provide income Charities SORP; was made to maintain £5m in this Account, on to meet current and future commitments as By Order of the Governing Body a rolling basis, to be reviewed annually. This they fall due and ensure that adequate funds • make judgments and estimates that are decision will ensure that six Prize Fellowships remain available to enable them to make awards reasonable and prudent; SIR ALEXANDER F MARKHAM of £250k each can be awarded for at least three in perpetuity. • state whether applicable UK Accounting Chairman years from 2019. The adequacy of the level of reserves (£40.69m Standards have been followed, subject MR MICHAEL FRENCH More details of the Institute’s activities are set in 2018) and the continuing appropriateness of to any material departures disclosed and Treasurer out in the Chairman’s Report on pages 5 to 15. the policy are reviewed on an annual basis by explained in the financial statements; and the Trustees. Despite a slight fall in the level of 25 April 2019 • prepare the financial statements on reserves, they feel satisfied with the policy over the going concern basis, unless it is

22 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2018 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2018 23 INDEPENDENT AUDITOR’S REPORT Independent Auditor’s Report to the members of the Lister Institute of Preventive Medicine

Opinion these requirements. We believe that the audit conclude that there is a material misstatement of the small companies exemption in We have audited the financial statements of evidence we have obtained is sufficient and of this other information, we are required to preparing the Trustees’ Annual Report The Lister Institute of Preventive Medicine (‘the appropriate to provide a basis for our opinion. report that fact. and from preparing a Strategic Report. company’) for the year ended 31 December We have nothing to report in this regard. Conclusions relating to going concern 2018 which comprise the Statement of Financial Responsibilities of trustees We have nothing to report in respect of the Opinions on other matters prescribed Activities, the Balance Sheet, the Cash Flow As explained more fully in the trustees’ following matters in relation to which the ISAs by the Companies Act 2006 Statement and notes to the financial statements, responsibilities statement set out on page (UK) require us to report to you where: In our opinion, based on the work undertaken in including a summary of significant accounting 23, the trustees (who are also the directors the course of the audit: policies. The financial reporting framework • the trustees’ use of the going concern basis of the charitable company for the purposes that has been applied in their preparation is of accounting in the preparation of the • the information given in the trustees’ annual of company law) are responsible for the applicable law and United Kingdom Accounting financial statements is not appropriate; or report for the financial year for which preparation of the financial statements and Standards, including FRS 102 ‘The Financial • the trustees have not disclosed in the the financial statements are prepared is for being satisfied that they give a true and Reporting Standard Applicable in the UK and financial statements any identified material consistent with the financial statements; and fair view, and for such internal control as the Republic of Ireland’ (United Kingdom Generally uncertainties that may cast significant doubt • the trustees’ annual report have been trustees determine is necessary to enable the Accepted Accounting Practice). about the company’s ability to continue to prepared in accordance with applicable preparation of financial statements that are free adopt the going concern basis of accounting legal requirements. from material misstatement, whether due to In our opinion the financial statements: for a period of at least twelve months from fraud or error. • give a true and fair view of the state of the date when the financial statements are Matters on which we are required In preparing the financial statements, the the charitable company’s afairs as at authorised for issue. to report by exception trustees are responsible for assessing the 31 December 2018 and of its incoming In the light of the knowledge and understanding charitable company’s ability to continue as resources and application of resources, Other information of the company and its environment obtained a going concern, disclosing, as applicable, including its income and expenditure, for The other information comprises the in the course of the audit, we have not identified matters related to going concern and using the the year then ended; information included in the annual report, other material misstatements in the trustees’ going concern basis of accounting unless the • have been properly prepared in accordance than the financial statements and our auditor’s annual report. trustees either intend to liquidate the charitable with United Kingdom Generally Accepted report thereon. The trustees are responsible We have nothing to report in respect of company or to cease operations, or have no Accounting Practice; and for the other information. Our opinion on the the following matters where the Companies realistic alternative but to do so. financial statements does not cover the other Act 2006 requires us to report to you if, in Auditor’s responsibilities for the audit of the • have been prepared in accordance with the information and, except to the extent otherwise our opinion: financial statements requirements of the Companies Act 2006. explicitly stated in our report, we do not express • adequate accounting records have not been Our objectives are to obtain reasonable assurance about whether the financial Basis for opinion any form of assurance conclusion thereon. kept, or returns adequate for our audit have statements as a whole are free from material We conducted our audit in accordance In connection with our audit of the financial not been received from branches not visited misstatement, whether due to fraud or error, with International Standards on Auditing statements, our responsibility is to read the by us; or and to issue an auditor’s report that includes our (UK) (ISAs(UK)) and applicable law. Our other information and, in doing so, consider • the financial statements are not in agreement opinion. Reasonable assurance is a high level of responsibilities under those standards whether the other information is materially with the accounting records and returns; or assurance, but is not a guarantee that an audit are further described in the Auditor’s inconsistent with the financial statements or our • certain disclosures of trustees’ remuneration conducted in accordance with ISAs (UK) will Responsibilities for the audit of the financial knowledge obtained in the audit or otherwise specified by law are not made; or always detect a material misstatement when statements section of our report. We are appears to be materially misstated. If we identify it exists. Misstatements can arise from fraud or independent of the charitable company in such material inconsistencies or apparent • we have not received all the information and error and are considered material if, individually accordance with the ethical requirements material misstatements, we are required explanations we require for our audit; or to determine whether there is a material or in aggregate, they could reasonably be that are relevant to our audit of the financial • the trustees were not entitled to prepare the misstatement in the financial statements or a expected to influence the economic decisions statements in the UK, including the FRC’s financial statements in accordance with the material misstatement of the other information. of users taken on the basis of these financial Ethical Standard, and we have fulfilled our small companies regime and take advantage statements. other ethical responsibilities in accordance with If, based on the work we have performed, we

24 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2018 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2018 25 Independent Auditor’s Report STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2018

As part of an audit in accordance with ISAs may cause the charitable company to cease Notes 2018 2017 (UK) we exercise professional judgement and to continue as a going concern. £’000 £’000 maintain professional scepticism throughout • Evaluate the overall presentation, structure Income from the audit. We also: and content of the financial statements, • Identify and assess the risks of material including the disclosures, and whether misstatement of the financial statements, the financial statements represent the Investments 2 978 714 whether due to fraud or error, design and underlying transactions and events in Other 3 9 20 perform audit procedures responsive to a manner that achieves fair presentation. Total income 987 734 those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis We communicate with those charged with for our opinion. The risk of not detecting a governance regarding, among other matters, Expenditure on material misstatement resulting from fraud the planned scope and timing of the audit Cost of raising funds is higher than for one resulting from error, and significant audit findings, including any Investment management costs 4 (215) (289) significant deficiencies in internal control that as fraud may involve collusion, forgery, Charitable Activities intentional omissions, misrepresentations, we identify during our audit. Prizes and Summer Studentships 6 (2,015) (1,231) or the override of internal control. Use of our report Total expenditure (2,230) (1,520) • Obtain an understanding of internal control This report is made solely to the charitable relevant to the audit in order to design company’s members, as a body, in accordance audit procedures that are appropriate in the with Chapter 3 of Part 16 of the Companies Act Net (losses)/gains on investment 9 (1,536) 2,632 circumstances, but not for the purposes of 2006. Our audit work has been undertaken so Net (expenditure)/income (2,779) 1,846 expressing an opinion on the efectiveness that we might state to the company’s members of the charitable company’s internal control. those matters we are required to state to them Other recognised gains/(losses): in an auditor’s report and for no other purpose. • Evaluate the appropriateness of accounting Actuarial losses on defined benefit schemes 13 (15) (11) policies used and the reasonableness To the fullest extent permitted by law, we do Net movement in funds (2,794) 1,835 of accounting estimates and related not accept or assume responsibility to any disclosures made by the trustees. party other than the charitable company and charitable company’s members as a body, Reconciliation of funds: • Conclude on the appropriateness of the for our audit work, for this report, or for the Total funds brought forward 43,481 41,646 trustees’ use of the going concern basis opinions we have formed. of accounting and, based on the audit Total funds carried forward 40,687 43,481 evidence obtained, whether a material uncertainty exists related to events or Luke Holt (Senior Statutory Auditor) All items in the above Statement of Financial Activities relate to continuing operations for both conditions that may cast significant doubt for and on behalf of Kingston Smith LLP, years. The Institute has no other recognised gains and losses other than as stated above and on the charitable company’s ability to Statutory Auditor hence no separate income and expenditure statement has been shown. continue as a going concern. If we conclude that a material uncertainty exists, we are Devonshire House required to draw attention in our auditor’s 60 Goswell Road report to the related disclosures in the London EC1M 7AD financial statements or, if such disclosures Date: 3 June 2019 are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s The notes set out on pages 30 to 37 form part of these financial statements. report. However, future events or conditions

26 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2018 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2018 27 BALANCE SHEET CASH FLOW STATEMENT for the year ended 31 December 2018 Company no: 34479 for the year ended 31 December 2018

Notes 2018 2017 2018 2017 £’000 £’000 £’000 £’000 Fixed assets Cash flow/(outflow) from operating activities Investments 9 40,824 43,583 Net cash (used in)/provided by operating activities (2,265) (1,315) Total fixed assets 40,824 43,583 Cash flows from investing activities Current assets Investment income 978 714 Debtors 10 11 23 Proceeds from disposal of fixed asset investments Cash at bank and in hand 11 69 133 excluding endowment funds 7,550 13,747 Total current assets 80 156 Acquisition of fixed asset investments excluding endowment funds (5,376) (13,719) Current liabilities Other movements on investments (951) 513 Creditors: amounts falling due within one year 12 (62) (98) (64) (60) Net current assets 18 58 Net (decrease)/increase in cash and cash equivalents (64) (60) Total assets less current liabilities 40,842 43,641 Cash and cash equivalents at beginning of year 133 193 Cash and cash equivalents at end of year 69 133 Creditors: amounts falling due after more than one year Pension provision 13 (155) (160) Reconciliation of net income/(expenditure) to net cash flow from operating activities Net assets 40,687 43,481

2018 2017 £’000 £’000 Represented by Net (expenditure)/income (2,794) 1,835 Unrestricted funds 40,687 43,481 Total charity funds 40,687 43,481 Adjustments for Net losses/(gains) on investments 1,536 (2,632) The Trustees have taken advantage of the exemptions conferred by the Companies Act 2006, on Investment Income (978) (714) the grounds that the Institute is entitled to the benefit of those exemptions as a small company. Decrease/(Increase) in debtors 12 170 These financial statements were approved by the Governing Body on 25 April 2019 Increase/(decrease) in creditors (36) 34 (Decrease)/increase in pensions (5) (8) ALEXANDER F MARKHAM Net cash (used in)/provided by operating activities (2,265) (1,315) MICHAEL FRENCH Members of the Governing Body

The notes set out on pages 30 to 37 form part of these financial statements.

28 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2018 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2018 29 NOTES TO THE FINANCIAL STATEMENTS Notes to the Financial Statements for the year ended 31 December 2018

1 PRINCIPAL ACCOUNTING POLICIES 1 PRINCIPAL ACCOUNTING POLICIES continued

Basis of preparation Cash flow statement The Financial Statements have been prepared in accordance with the Statement of Recommended The Charity has included a cash flow statement in accordance with FRS102 SORP. Practice, Accounting and Reporting by Charities (FRS102 SORP). The Financial Statements are prepared in Taxation accordance with the historical cost convention modified by the revaluation of investments. The charity is a The organisation is a registered charity and has obtained exemptions from taxation under Part 11, Chapter Public Benefit Entity as defined by FRS102. 3 of the Corporation Tax Act 2010. This exemption will remain as long as income is compatible with that The Financial Statements are prepared in sterling which is the functional currency of the Charity. Monetary section and expenditure is applied to charitable purposes only. amounts in these Financial Statements are rounded to the nearest thousand pounds. Critical accounting estimates and areas of judgement The principal accounting policies adopted in the preparation of the Financial Statements are as follows: In preparing financial statements it is necessary to make certain judgements, estimates and assumptions Income that affect the amounts recognised in the financial statements. The Trustees consider the estimates involved All incoming resources are accounted for on a receivable basis. in the valuation of investments to have most significant effect on amounts recognised in the financial Prizes and summer studentships statements. These are taken directly from Investment Manager’s reports. The cost of Research Prize Fellowships is charged in the year awarded. In addition, the company has an obligation to pay pension benefits to certain employees. The cost of these Expenditure benefits and the present value of the obligation depend on a number of factors including: life expectancy, The costs of raising funds include those fees payable to the Institute’s investment fund managers for the salary increases, asset valuations and the discount rate on corporate bonds. Management estimates these management of the Institute’s investment portfolio. These are accounted for on an accruals basis. factors in determining the net pension obligation in the balance sheet. The assumptions reflect historical Charitable activities comprise all expenditure directly relating to the objects of the charity and are experience and current trends. See Note 13 for the disclosures relating to the defined benefit pension accounted for on an accruals basis. The allocation of expenditure between governance and management, scheme. administration and support costs is reviewed on an annual basis to ensure the allocation is appropriate. Going Concern Indirect costs are generally treated as falling into the latter category with the exception of a proportion of The Trustees have assessed whether the use of the going concern basis is appropriate and have considered salary and related costs, which have been classified as governance costs. possible events or conditions that might cast significant doubt on the ability of the charity to continue as In addition to auditor’s remuneration, governance costs comprise the proportion of staff costs associated a going concern. The Trustees have made this assessment for a period of at least one year from the date of with the time spent on the preparation of the statutory accounts and other governance issues, together approval of the financial statements. After making enquiries, the Trustees have concluded that there are no with honoraria remuneration provided to members of the Institute’s Scientific Advisory Committee for their material uncertainties that cast significant doubt on the charity’s ability to continue as a going concern. The duties in selecting the Prize Fellows. charity therefore continues to adopt the going concern basis in preparing its financial statements. Supplementary pensions and staff pensions Financial instruments An estimate of the full provision is made in the Financial Statements for the costs of future supplementary The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 payments. The provision and charge to income are reviewed annually by the Trustees in the knowledge ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are that the number of persons receiving the supplementary pensions will not increase. The pension costs are recognised in the company’s balance sheet when the company becomes party to the contractual provisions assessed in accordance with actuarial advice and these costs are accounted for in accordance with FRS102 of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial SORP. statements, when there is a legally enforceable right to set off the recognised amounts and there is an Existing employees participate in a defined contribution scheme, the costs of which are expensed as intention to settle on a net basis or to realise the asset and settle the liability simultaneously. incurred. These disclosures are made in accordance with FRS102 SORP. With the exceptions of prepayments and deferred income all other debtor and creditor balances are Tangible Fixed Assets considered to be basic financial instruments under FRS 102. See notes 10 and 12 for the debtor and creditor Any capital items purchased under £1k in value are expensed in the accounts in full as incurred. The Charity notes. has no tangible fixed assets. Fund accounting Investments Restricted funds are funds available subject to specific restrictions imposed by donors. Unrestricted funds Investments are shown at market value in the balance sheet. Changes in the market value are included in are available for use at the discretion of the Trustees in furtherance of the general objectives of the Institute. the Statement of Financial Activities as realised and unrealised investment gains or losses in the year in which they arise. Investments denominated in foreign currencies are valued at year-end rates of exchange.

30 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2018 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2018 31 Notes to the Financial Statements Notes to the Financial Statements

2 INVESTMENT INCOME 5 GOVERNING BODY AND STAFF COSTS

2018 2017 Emoluments of members of the Governing Body No member of the Governing Body received any emoluments in respect of services to the Institute during £’000 £’000 the year (2017: nil). Travel expenses of £3,060. were paid relating to the claims of seven members in Income from fixed asset investments 977 714 connection with their attendance at meetings (2017: £2,297, nine members). Bank interest receivable 1 - Members of the Governing Body who are also members of the Scientific Advisory Committee receive 978 714 remuneration in relation to their services to the committee. An honorarium of £2,000 (2017: £1,500) was paid to one of the members, the remainder all received £1,000 (2017: £1,000). Employee Information The average number of persons employed by the Institute during the year was three, (2017: three) two of whom are part-time (2017: two). All staff were employed in an administrative and support capacity. 3 OTHER INCOME No employees earn over £60,000 p.a. (2017: none). Key management personnel include the Trustees and the Director. The total employee benefits of the 2018 2017 charity’s key management personnel were £56,116 (2017: £51,540). £’000 £’000 Royalty income CRT Ltd 9 20 Staff Costs Total other income 9 20 2018 2017 £’000 £’000 Royalty income is earned from Cancer Research Technology as a result of Revenue sharing related to Glover research studies £9k (2017: £20k). Gross salaries 89 87 Pension contributions 3 3 Employer’s national insurance 6 6 98 96 4 INVESTMENT MANAGEMENT COSTS The salary costs are allocated under governance where related to statutory accounts preparation, the 2018 2017 balance being reported within charitable activities. £’000 £’000 Partners Capital LLP 124 165 Cazenove Capital Management 91 124 6 PRIZES & SUMMER STUDENTSHIPS Total investment management fees 215 289 2018 2017 Investment management fees referred to here are those accrued fees relating to the management of the Institute’s investment portfolios in 2018. £’000 £’000 Prize awards 1,749 1,000 Summer studentship payments 72 48 Support costs (see note 7) 74 67 Salaries (see note 5) 86 84 Governance costs (see note 8) 34 32 2,015 1,231

32 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2018 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2018 33 Notes to the Financial Statements Notes to the Financial Statements

7 SUPPORT COSTS 9 INVESTMENTS continued

2018 2017 2018 2017 £’000 £’000 £’000 £’000 Office expenses 23 22 Movement in un-invested cash 1,993 (83) Travel expenses 5 4 Cash withdrawn (1,950) (1,000) Professional fees 5 5 Net Change in market value (1,536) 2,632 Honoraria and events 33 28 Market value at year-end 40,824 43,583

Pension costs (see note 13) 8 8 The portfolio’s asset allocation was as follows 74 67 UK investments These costs are all considered to be costs to support resources expended on charitable activities Equities 6,725 7,917 Fixed interest 4,544 5,655 Other (including private equity, property, commodities, alternatives and 5,147 5,868 inflation linked bonds) 8 GOVERNANCE COSTS Cash 2,922 1,616 2018 2017 Total UK investments 19,338 21,056 £’000 £’000 Auditor’s remuneration - current year 11 11 Non-UK investments - prior year over accrual (2) - Equities 15,236 15,895 Staff costs (see Note 5) 12 12 Other (including private equity, property, commodities and alternatives) 5,755 5,716 Honoraria and events 13 9 Cash 495 916 34 32 Total Non-UK investments 21,486 22,527 No non-audit services were provided by the auditors during the year (2017: none). Auditors remuneration includes irrecoverable VAT. Total 40,824 43,583 At 31 December 2018 no single shareholding exceeded 5% of the total value of investments (2017: none). Historical cost related to the closing position of 2017 was £31.76m (2017: £33.7m).

9 INVESTMENTS

Listed investments are valued at middle market quotations ruling at the year-end 10 DEBTORS 2018 2017 £’000 £’000 2018 2017 Market value at beginning of year 43,583 41,492 £’000 £’000 Purchases during the year at cost 5,376 13,719 Prepayments 2 3 Proceeds of sales during the year (7,550) (13,747) Accrued income 9 20 Reinvested income for the year 908 570 Total 11 23

34 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2018 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2018 35 Notes to the Financial Statements Notes to the Financial Statements

11 CASH 14 RELATED PARTY TRANSACTIONS

2018 2017 There were no related party transactions in the year, other than those outlined in note 5 (2017: none). £’000 £’000 Cash at bank 69 133 15 FINANCIAL INSTRUMENTS

12 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2018 2017 £’000 £’000 2018 2017 Carrying amount of financial asset debt instrument at ammortised cost 9 20 £’000 £’000 Taxation and social security 3 3 Accruals 59 95 Carrying amount of financial liabilities measured at ammortised cost 110 95 Total creditors falling due within one year 62 98

13 PROVISION FOR LIABILITIES AND CHARGES 16 MEMBERS’ LIABILITY

This represents a provision for future supplementary pension payments, in respect of ex-employees, based The liability of the Members of the institute is limited to 50p. At the date of the financial statements, there on their salary and length of service. The pensions are unfunded, with payments made out of the Institute’s were 200 (2017: 197) members, each with a guarantee potential of 50p. funds as they fall due. Movements in the pension provision during the year were as below 2018 2017 £’000 £’000 Liability at beginning of period 160 168 Plus interest cost 8 8 Plus actuarial gains and losses 15 11 Benefits paid (28) (27) Liability at end of period 155 160

The tables below state the FRS102 actuarial assumptions used to estimate the pension provision. Principal actuarial assumptions Valuation at 31 December 2018 2018 2017 Rate of increase to pensions in payment 3.0% 3.0% Rate used to discount scheme liabilities 5.0% 5.0%

The post-retirement mortality assumption uses the PCA00 base tables (year of birth) with improvements equal to medium cohort with a 1% minimum.

36 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2018 The Lister Institute of Preventive Medicine Annual Report and Financial Statements 2018 37 Designed by [email protected]