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16233 WellcomeAW 17-02 27/2/04 10:29 am Page a1 Annual Report and Financial Statements 2003 16233 WellcomeAW 17-02 27/2/04 10:29 am Page a2 a2 Heading to go here strapline to go here if required 16233 WellcomeAW 17-02 27/2/04 10:29 am Page 1 THE WELLCOME TRUST ANNUAL REPORT AND FINANCIAL STATEMENTS 2003 Contents Administrative Details 2 Chairman’s Statement 4 Trustee’s Report 6 Auditors’ Report 15 Consolidated Statement of Financial Activities 16 Consolidated Balance Sheet 17 Statement of Financial Activities of the Trust 18 Balance Sheet of the Trust 19 Consolidated Cash Flow Statement 20 Notes to the Financial Statements 21 Committees of the Board of Governors 49 Board of Governors 50 Executive Management 51 16233 WellcomeAW 17-02 27/2/04 10:29 am Page 2 2 Administrative Details The Wellcome Trust (the ‘Trust’) is a Board of Governors The Wellcome Trust is managed day to day charitable trust created in 1936 by the Will Sir Dominic Cadbury (Chairman) by the Executive Board and other Senior of the late Sir Henry Wellcome and now Management shown as follows: Professor Sir Michael Rutter, CBE, MD, FRS, governed by its Constitution, which was FBA, FMedSci (Deputy Chairman) established in February 2001 by a scheme Executive Board of the Charity Commission.The Trust is Professor Adrian Bird, FRS, FMedSci Dr Mark Walport, PhD, FRCP,FMedSci registered under the Charities Act 1993 Professor Martin Bobrow, CBE, DSc Med, (Director) (from 1 June 2003) (registration number 210183). FMedSci Dr Michael Dexter, DSc, FRS, FMedSci The sole trustee (the ‘Trustee’) is Professor Christopher Edwards, MD, FRSE, (Director) (retired 31 March 2003) The Wellcome Trust Limited, a company FMedSci limited by guarantee (registration number Mrs Linda Arter (Director of Finance and 2711000), whose registered office is Professor Julian Jack, PhD, FRS, FMedSci Information Management) 183 Euston Road, London NW1 2BE. Mr Alastair Ross Goobey, CBE Dr Ted Bianco, PhD (Director of Technology The Trustee is governed by its memorandum Transfer) and articles of association.The directors Professor Jean Thomas, CBE, ScD, FRS, (known as Governors) and the Company FMedSci Mr John Cooper (Director of Human Resources Secretary of the Trustee are shown as follows: and Services) Mr Edward Walker-Arnott Dr Rick Fuller, MD (Director of Science Funding) Professor Mark Walport, PhD, FRCP,FMedSci (resigned 12 May 2003) (resigned 24 January 2003) Ms Clare Matterson (Director of Medicine, Society and History) Company Secretary Mr John Stewart Dr Sohaila Rastan, MA, D Phil, FMedSci (Director of Science Funding) (from 3 November 2003) Mr Gary Steinberg (Chief Investment Officer) Other Senior Management Dr Allan Bradley, PhD (Director of the Wellcome Trust Sanger Institute) Dr Lee Elliot Major, PhD (Head of Policy and Communications) (resigned 25 September 2003) Mr David Phillipps, FCA (Head of Finance) All of the above have been in office throughout the year unless otherwise stated. 16233 WellcomeAW 17-02 27/2/04 10:29 am Page 3 THE WELLCOME TRUST ANNUAL REPORT AND FINANCIAL STATEMENTS 2003 3 Principal Advisers John W Bristol & Co. Inc Liontrust Investment Services Limited Auditors Lloyd George Investment Management PricewaterhouseCoopers LLP (Bermuda) Limited Merrill Lynch Investment Managers Limited Bankers HSBC Bank plc Morgan Stanley Dean Witter Investment Management Inc Global Custodian Bank Nordea Investment Management State Street Bank and Trust Company North America Inc Sands Capital Management Inc Investment Advisers Schroder Investment Management Cambridge Associates (Japan) Limited Société Générale Asset Management Investment Managers UK Limited Adams Street Partners LLC TT International Investment Aberforth Partners Management Limited Alex Brown Investment Management LP UBS Global Asset Management (UK) Limited Atlantis Fund Management Wellington Management Co. LLP (Guernsey) Limited Baillie Gifford & Co. Investment Property Managers Barclays Global Investors Limited Bidwells Brandes Investment Partners LLP Cluttons Brown Investment Advisory & Trust Company Cushman & Wakefield Healey & Baker Capital International Limited io Group Limited Clay Finlay Inc Solicitors Deutsche Asset Management Limited CMS Cameron McKenna Deutsche Investment Management Testa Hurwitz & Thibeault Americas Inc Fidelity Pensions Management Limited First State Investment Management (UK) Limited Gartmore Investment Management plc International Asset Management Limited Investec Investment Management Limited JF Asset Management Limited JO Hambro Capital Management Limited 16233 WellcomeAW 17-02 27/2/04 10:29 am Page 4 4 Chairman’s Statement For the third year in succession I find myself Major activities New initiatives in our international portfolio reviewing a year of continuing volatility in In my fourth year as Chairman I know that include the launch of a £25 million equity markets around the world. Although the wide breadth of projects supported by programme, Animal Health in the Developing the Trust ended the year with an asset value the Trust makes it ever more difficult to single World, focusing on livestock diseases in the higher than at the start of the year, we have out particular activities for attention. A fuller developing world and the impact on human been affected by the reduction in value from picture of the last twelve months can be health and wellbeing. Under this initiative we the high points in 1999/2000 and the obtained from the Trustee’s Report and the envisage funding a spectrum of projects over continuing global political and economic separate Annual Review, so here I am focusing the next two years from biomedical research uncertainty. In February 2003, therefore, on events or activities that have generated and public engagement projects to activities the Board of Governors approved a revised either particular UK or international that strengthen the translation of research financial plan. From a previously planned level recognition, or fundamentally altered the outcomes into practical benefits. In partnership of expenditure of around £500 million per ability of the Trust to ‘make a difference’. with the governments of Australia and New annum, this revision now enables us to Zealand we launched the Asia-Pacific scheme, A new synchrotron is an essential facility for commit grant and direct activity expenditure to tackle the health problems of developing biomedical research in the UK, so I am glad of approximately £400 million per annum. countries in the Asia-Pacific region. to report that the Diamond ground breaking We are confident that this meets the twin Negotiations are in hand to award up to ceremony took place in March.This marked objectives of managing our assets to provide £6 million during the forthcoming year. the start of the construction phase of for both future long term growth and Diamond, a jointly funded project between In the UK we implemented the decision supporting a substantial current level of the Trust and the UK Government (through taken in 2002 to integrate the Trust’s support charitable giving. the Council for the Central Laboratory for for translating biomedical research into We have taken stock of our activities and the Research Councils) to build a new third therapeutic or diagnostic outcomes, previously considerable staff effort was put into a generation synchrotron light source in the channelled through Catalyst BioMedica comprehensive cross-organisational review. UK.When it commences operation in January Limited, into a new internal Technology Much work was done to examine our 2007, Diamond will provide cutting-edge Transfer Division.The Division was successfully activities against our aims, to ensure research facilities for scientists from both the life established with the objective of maximising continuing support for the Trust’s mission. and physical sciences from the UK and abroad. the impact of research innovations on human As a result of the review some of our and animal health, by facilitating their An entirely different area of partnership activities have been scaled back, others development to the point at which they can with the UK Government led to us being strengthened, and a handful have been be funded by the financial market.The first of joined by Stephen Twigg MP,Minister for stopped.We are confident that we can its University and Strategic Translation Awards Young People and Learning, for the launch, continue to support a diverse portfolio of were made in September and again more in December 2002, of the National Science grant schemes and activities across the details of the activities in this area are set out Learning Centre competition.This Centre will spectrum of our interests whilst continuing in the Trustee’s Report. be the hub of a National Network of to maintain our asset base for the future. Learning Centres that will provide continuing Last year we were fortunate to be able to During the year we said farewell to professional development to school teachers secure the archive of Francis Crick, and this Dr Mike Dexter as Director, who made an of the sciences.This will enhance the careers year I was pleased to see that material from invaluable contribution to the Trust during and teaching skills of such teachers and aims the archive went on display for the first time his five year term of office, and welcomed his to boost the interest and enthusiasm of future as part of an exhibition and associated events successor, Dr Mark Walport, who took up the pupils for science, encouraging new generations held at the Trust to celebrate the 50th position