Summarised Financial Statements 2012 Contents Chairman’s Statement 02 02 Summary Trustee’s Report 04 04 Vision and Objects, Mission, Focus Areas 04 and Challenges Financial Review 06 Extracts from the Review of Investment Activities 08 Independent Auditors’ Report 10 10 Consolidated Statement of Financial Activities 11 Consolidated Balance Sheet 12 Consolidated Cash Flow Statement 13 Grants Awarded 14 Reference and Administrative Details 16 Chairman’s Statement Sustained investment in research can bring real benefits or Medicine which was shared by a dozens of genomes every day. Their former Governor of the Trust, work is driving the first wave of Professor Sir John Gurdon. His work stratified medicine, improving cancer showed that mature cells had the therapy for patients by examining the potential to be reprogrammed into genetics of individual tumours, and stem cells. Subsequent decades of revealing the genetic basis of the way investment in stem cell research have specific cancers respond to different brought us ever closer to realising the drugs. promise of stem cell therapies. At the same time, ever-improving We saw again this year how sustained technology is giving us an advantage investment in research can bring real against infectious diseases. A study benefits. Genetics has been one of the published this summer demonstrated Trust’s most focused areas of funding how modern genome sequencing Summary of Chairman’s since the mid-1990s. First, we sought could track methicillin-resistant Statement to decode the human genome; then Staphylococcus aureus (MRSA). we had to find ways to apply that Retrospective analysis of samples • We committed £701 million in grant knowledge. I think we are at a stage from a real outbreak of MRSA in a funding and direct charitable now when we can stop talking about hospital showed that the outbreak activities this year, mostly in grants genetics improving health in the could have been identified and to scientists working in medical future – it is improving health today. stopped sooner with the new research, and most of them in Looking forward, the Trust is funding technology. This approach could help the UK. a clinical trial of a gene therapy for to control outbreaks of hospital- choroideraemia, a rare genetic acquired infections more effectively • Central to much of the genetics disorder that slowly causes people to than existing laboratory techniques. research we fund is the Wellcome lose their eyesight. The therapy uses a Trust Sanger Institute. We have benign virus to deliver a healthy copy Changing world invested more than £1 billion there of the defective gene into patients’ Britain was the workshop of the world over the last 18 years. eyes. The trial began in October 2011 150 years ago. Today, we have a new and, this time next year, we should role as one of the leading ‘knowledge • The future of science really does know whether it has been successful shops’ in the world. Through depend on the quality of science in halting loss of sight in the first 12 partnerships with other funders, education today. patients. universities, businesses, charities and government agencies, we can • Our investment returns drive our Central to much of the genetics facilitate creative interactions ability to make charitable research we fund is the Wellcome between researchers in all sectors. commitments. In 2011/12, we Trust Sanger Institute. We have The Wellcome Trust continues to returned £1.6 billion, bringing our invested more than £1 billion there invest substantially in the UK’s investment return over ten years to over the last 18 years. The Sanger universities, but we are also ensuring 145% and over twenty years to 411%. Institute was at the heart of the that their scientific discoveries can be Human Genome Project, providing used to improve healthcare. one third of the sequence decoded The Wellcome Trust committed £701 over ten years; today, it continues to For example, together with million in grant funding and direct lead the world in this field. With data GlaxoSmithKline and the UK charitable activities this year, mostly capacity currently at 16 million government, the Trust funds in grants to scientists working in gigabytes and a staff of 850, Stevenage Bioscience Catalyst, where medical research, and most of them in collaborating with the European academic and industry scientists work the UK. I was thrilled this October Bioinformatics Institute on the same side by side in an ethos of ‘open when the UK’s strength in basic site and with thousands of other innovation’. The first tenants moved biomedical research was recognised scientists around the world, the in this February. By working on the by the 2012 Nobel Prize in Physiology Sanger Institute now sequences same site, researchers from different 2 | Summarised Annual Report And Financial Statements 2012 fields and sectors will be able to share assets, designed to be held for many intention was always that science expertise and exchange ideas. This years or even decades. Over the past could also be understood and used by should lead to new projects and the five years, the main illiquid the public. We had a golden faster and more effective translation investments have delivered returns opportunity to bring science to the of research into patient benefit. about 25% higher than those from public as the London 2012 Olympic public equities. and Paralympic Games entertained Investments and inspired the country. Our I am very pleased at the start made by Our macro-economic prognosis is not contribution to the Olympic spirit Syncona, our new investment positive as fiscal austerity and debt was In The Zone, providing over company set up this year specifically deleveraging continues. However, we 30,000 UK schools with kits full of to invest in the health and think that companies, focused on the ideas for exciting classroom biotechnology sectors. By investing in opportunities created by ageing experiments focusing on the science exciting opportunities in the populations, the shift to disruptive of the body in motion. These will help translation of research into new knowledge-based industries, new teachers nurture a love of science in treatments and patient care Faster Growing Markets in Africa, their students for years to come. technologies, we expect it will make Asia and Latin America and resource significant returns for the Trust in the scarcity, with a global long-term The popularity of science in schools longer term. Syncona has already horizon and patient investors, will be continues to rise again, countering a made its first investment and looks set best placed in this environment. decline in the numbers of students to be a valuable catalyst to create taking science and maths A Levels value through new healthcare A strong legacy through most of the 1990s. The rise companies at an early stage of Sir Mark Walport will be stepping has coincided with the Wellcome development. down as Director of the Wellcome Trust’s support for the National Trust at the end of March 2013. I’m Science Learning Centre in York, Our investment returns drive our sure there will be many opportunities which provides continuing ability to make charitable to thank him and wish him well in his professional development training to commitments. In 2011/12, we returned new role as the UK’s Chief Scientific teachers so that they can keep up with £1.6 billion, bringing our investment Adviser. For now, I will just say that the latest developments in science and return over ten years to 145% and over his contribution over the last ten how best to teach it. Alongside this, in twenty years to 411%. These returns years has been enormous. In the 2008 we launched Project ENTHUSE, exceeded those from public equities meantime, I would like to thank Peter a £27 million partnership between the but were achieved with considerably Davies, Roderick Kent and Professor Trust, the UK government and lower reported volatility. Our net Chris Fairburn, who all stepped down industry, to provide bursaries that portfolio value is £14.5 billion. from the Board of Governors this enable teachers to cover the full costs Charitable cash payments in the year year, for their immeasurable of attending these courses. Our of £643 million are twice the level at contributions to the Trust’s activities. 7000th bursary was awarded this year the turn of the century and are 35% and the government has renewed its higher than in the year 2006/07 In their place, we welcomed three new commitment to the scheme for a before the global financial crisis; Governors. Professor Mike Ferguson further five years. steady growth in each subsequent is a researcher in parasitology at the year has provided useful stability to University of Dundee, with a The future of science really does UK medical research as other funding particular interest in translational depend on the quality of science sources have come under pressure. research; he is also the Dean of education today. By supporting Research for the College of Life science teachers, we are fostering the Our investment team, led by Danny Sciences at Dundee. Alan Brown has next generation of researchers and a Truell, has evolved our portfolio in a enjoyed a career of nearly 40 years in society that will cherish and support number of ways. The portfolio has investment management, most their work. It is an integral part of our been globalised such that net UK and recently as Chief Investment Officer long-term vision of funding the other European assets now account of Schroders. And Damon Buffini brightest minds to achieve for only 13% of the portfolio compared is a founding partner of one of extraordinary improvements in with 48% in 2006, providing some Europe’s most successful private health.