The St Peters College Foundation Report & Financial Statements / 2011

Contents

1 Chairmans Statement 2 Investment Committee Report 3 Legal and Administrative Information 4 Report of the Board 5 Statement of Financial Activities 6 Balance Sheet 7 Notes forming part of the Financial Statements 8 Independent Examiners Report

5 9 10 11 14 15 16 20

1 Chairmans Statement

This has been a slower year as regards the growth of the Foundation. In part this reects the continuing adverse economic climate. It also results from changes at the College where Bernadette Benati, the College Development Director, moved on to new challenges. Against this background I am pleased to be able to report that the Foundation has greatly increased the support it has given to the College from 40,500 in 2010 to 167,821 in 2011. Given this background it is also pleasing to note that our net funds fell during the year by less than 50,000. Trustees As ever, the Foundation remains dependant on the energy and commitment of its Trustees for which we remain extremely grateful. Two formal meetings were held during the year, but there were countless other meetings held during which ways in which the Foundation could be developed and the College supported were discussed and progressed. Administration As the Foundation has grown in its size and its ambitions it has been agreed that coordination of the Foundations efforts in support of the College would be better achieved if the Foundations administrative back up were provided from within the Colleges Development Office. This has taken a little time to arrange but we have recently welcomed Kate Longworth to the role and look forward to working with her. Investment Policy A major reason for the maintenance of the Foundations funding position, despite the greatly increased support of the College, has been the excellent performance of the Foundations investment portfolio. For this we are grateful to the Investment Committee under Charles Ind, whose report is set forth on page 9.

Left Linton Quad close by the site of the new boiler installation for which the Foundation provided substantial funding.

1 Chairmans Statement (contd)

Right The Foundation funds a number of Reading Parties to help in preparation for nals.

Projects Supported The Foundation exists to help the Colleges growth and development in the broadest sense. Some projects which the Foundation supports have a certain glamour, others less so. Our major contribution in 2011 fell into the latter category! For some time the Colleges boiler system and the structure that houses it have been under strain, and the replacement of both has become an increasingly pressing need. Boiler replacement is not the sort of project which will excite individual donors, so the Foundation agreed to help get the project under way with a donation of 100,000. This lead gift inspired others to give, and the project is now nearing completion. An important focus of the Foundations charitable activities is, of course, investing in people at undergraduate, graduate and Senior Common Room level. Fran Lambrick is now in the nal year of her doctoral research on community forestry in Cambodia. We have continued to meet the costs of the weekly graduate research seminars. Topics in the past year have been as diverse as the Assessment of Borderline Personality Disorder and Bipolar Disorder Patients, the Dimensional Conventions of Space, and Digital Hardware Design for Very Large Scale Radio Astronomy Arrays. These seminars continue to be well attended by the Fellows, several of whom have also received travel costs from the Foundation, enabling them to take their work into an increasingly global research community. Once again the Foundation has funded intensive revision weeks for nalists in Modern Languages, History and Geography. A further priority for the Foundation is to promote social mobility by providing nancial support for students thereby enabling as broad a range of society as possible to attend St Peters. The impact of the Schools Liaison Officer post, funded by the Foundation, has been felt not only at the College,

1 Chairmans Statement (contd)

2 Investment Committee Report

2011 was a turbulent year for nancial markets, driven by renewed concerns about global economic growth, the ongoing eurozone debt crisis, doubts over the solvency of European banks, the loss of AAA status by the US government and agging condence in policy-makers and political leadership across the globe. As a consequence, risk assets generally under-performed in 2011 and, despite a rebound in the fourth quarter, the MSCI World equity index nished the year down 4.3%. Against this background, the Foundations investment portfolio generated a positive return of 8.2% in 2011 (excluding cash on deposit). This was a good outcome in the circumstances, with each of the asset classes in the Foundations portfolio making a positive contribution to the overall return, in particular alternative investments (+14%) and private equity (+13%). There were also smaller positive contributions from the investments in xed income (+4%) and quoted equity (+3%). Two of the strongest performers in the portfolio were hedge fund investments generously donated by a former member of the College in 2008 the Vulpes LAVA Fund, a market neutral, equity arbitrage, Asian fund, and the Vulpes Russian Opportunities Fund, a value-oriented fund focusing on Russian infrastructure stocks which were up 12% and 24% respectively in 2011. The other major positive contributor was the Foundations investment in Special Opportunities Fund III, a fund-of-funds investing in Bain-managed private equity and hedge funds, which continued to recover from its difficult start, and generated a return of 17% during the year. Other highlights included the realisation of the Foundations small direct private equity investment in EIS Optics, a manufacturer of optical components also generously donated by a former St Peters member which has more than doubled in value over the past two years. As at 31 December 2011, the Foundations net assets amounted to approximately 1.5 million, of which approximately 35% was represented by alternative investments, 31% by quoted equity, 12% by xed income, 12% by private equity and 10% by cash. This is broadly in line with the Foundations strategic asset allocation target, although we are currently overweight in quoted equities, and underweight in xed income, relative to our long-term target which is a reection of our medium-term view on the relative attractiveness of these two asset classes. Overall, markets remain fragile and the economic outlook is uncertain. In this context, we are maintaining our long-term investment focus and balanced portfolio strategy, which we feel condent will deliver above-average capital appreciation over the longer term whilst also generating sufficient income to fund meaningful projects for the College.

but across Oxford and beyond. In the past year Alice Wilby has run over 100 events around two thirds at schools in deprived areas, the rest bringing groups to St Peters. Alice was recently awarded further funding of 50,000 from the Sutton Trust for her cross-collegiate Pathways programme, which is designed to help year 10-13 students from state schools and colleges make competitive applications to the University. Again it is another example where a lead gift from the Foundation has enabled further fundraising success. The Future The Trustees remain condent that there are many among the Colleges alumni who would be attracted to the opportunity to nd projects in which they could take a close personal interest the concept of venture philanthropy. We look forward to working with the Development Office and the College to provide funding for imaginative projects which will add to the Colleges growing reputation.

Robin Hodgson Lord Hodgson of Astley Abbotts, CBE 19 June 2012

St Peters Foundation Net Assets 2011 (100% = 1.5m) 1 Alternative investments 2 Quoted equity 3 Fixed income 4 Private equity 35% 31% 12% 12% 10%

5 Cash

3 Legal & Administrative Information

Board of Directors Reference and Administrative Information Charity Name The St Peters College Foundation Charity registration number 1107938 Company registration number 05303218 Registered Office 4 Grosvenor Place London SW1X 7HJ Dr Lawrence Goldman Jocelin Harris* Chairmans Office Nova Capital Management Limited 1st Floor Cayzer House 30 Buckingham Gate London SW1E 6NN Independent Examiners Wingrave Yeats Partnership LLP 101 Wigmore Street, London, W1U 1QU Bankers Kleinwort Benson Bank (Isle of Man) Limited St Georges Court, Upper Church Street, Douglas, Isle of Man, IM99 1RB

4 Report of the Board

The Board presents its report and nancial statements for the year ended on 31st December 2011. Structure, Governance and Management Governing Document The organisation is a charitable company limited by guarantee, incorporated on 2 December 2004 and registered as a charity on 3 February 2005. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding 1. Recruitment and Appointment of the Board The directors of the company are also charity trustees for the purposes of charity law and under the companys Articles comprise the Board. Under the requirements of the Memorandum and Articles of Association the members of the Board are elected to serve for a period of three years after which they must be re-elected at the next Annual General Meeting and may be reappointed such that they can serve for a maximum of three terms in all. The members of the Board have been selected for their knowledge of and desire to support St Peters College. Trustee Induction and Training All of the members of the Board are familiar with charitable organisations in general. They have been made familiar with the activities of the Foundation and of its accounts. No further induction was necessary. Risk Management The Board are aware of the potential risks of operating the charity and, in the early stage of its activities, all transactions are approved by them. Appropriate systems or procedures to mitigate the risks that the charity faces will be introduced as the need arises.

Organisational Structure The Board may have up to 10 members who meet half-yearly, or more frequently as necessary, and are responsible for the strategic direction and policy of the charity. At present the Board has 8 members from a variety of professional backgrounds relevant to the work of the charity. The Secretary also attends Board meetings but has no voting rights. The charity is of recent formation and all activities are handled by Board members. Objectives and Activities In planning our activities for the year we kept in mind the Charity Commission guidance on public benet at our trustee meetings. The companys objects and principal activities are to promote the advancement of education and learning including but not limited to: supporting initiatives which attract the widest range of potential students to apply to and join St Peters College; providing nancial assistance to students in residence by grants or loans; and supporting and increasing nancial resources available for teaching

Mark Damazer

Stephen Diggle*

Lord Hodgson of Astley Abbotts CBE*

Charles Ind*

Dr Balazs Szendroi

Charles Wilkinson*

The main objectives and activities for the period focused on the establishment of the Foundation and raising initial donations. Achievements and Performance The Foundation has funded College activities and has continued with building its funds.

Secretary

Howard Long, FCA. 4 Grosvenor Place, London SW1X 7HJ 10 *Member of Investment Committee 11

4 Report of the Board (contd)

Financial Review Outcome for the period. The Foundation has been funded by donations amounting to 23,579 and interest and dividends have been earned of 41,606. Expenditure has been incurred of 179,006, of which 167,821 was for grants to St Peters College, leaving a decit in the year of 113,821, after gains on investments. This will be deducted from unrestricted reserves. Investment Policy The Foundation has established an Investment Committee from among its Trustees. This includes individuals with a long-term record of senior involvement in the nancial sector. The strategy is to accept some exposure to short term volatility. This allows a more ambitious investment style which it is believed should, over time, provide above average growth in value. This is explained in more detail in the Investment Committees report. Reserves Policy The Board intends to build the reserves of the Foundation, by seeking major donations, so as to create a fund that will generate a sustainable income to enable them to meet its objectives. Unless specic restrictions are placed by donors, the reserves of the Foundation will be unrestricted in nature. However, the Trustees are likely to designate the reserves to match their investment strategy and to that extent, reserves will not be regarded as available for meeting expenditure. Plans for Future Periods The charity plans to continue the activities outlined above in the forthcoming years subject to satisfactory funding arrangements. Responsibilities of the Board 12 Company law requires the Board to prepare nancial statements for each nancial year

which give a true and fair view of the state of the affairs of the charitable company as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the nancial year. In preparing those nancial statements, the Board should follow best practice and: select suitable accounting policies and then apply them consistently; make judgments and estimates that are reasonable and prudent; and prepare the nancial statements on the going concern basis unless it is inappropriate to assume that the charitable company will continue on that basis.

Independent Examiners Wingrave Yeats Partnership LLP remains as the charitable companys independent examiners and have expressed their willingness to continue in that capacity. This report has been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (issued in March 2005). Approved by the Board on 19 June 2012 and signed on its behalf by:

The Board is responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the nancial position of the charitable company and to enable it to ensure that the nancial statements comply with the Companies Act 2006. The Board is 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. Members of the Board Members of the Board, who are directors for the purpose of company law and trustees for the purpose of charity law, who served during the year and up to the date of this report are set out on page 10. Mr Diggle is a Director of a company that manages two of the investment funds where units in them are held by the Foundation. These investments were donated by him. Lord Hodgson was a shareholder and Mr. Harris was a director and shareholder of companies in which the Foundation held shares, funded by donations received from them. The Board ensures that any conicts of interest are appropriately disclosed. Directors do not take part in discussions or decisions where they have a conict of interest.

Robin Hodgson Lord Hodgson of Astley Abbotts, C.B.E Director

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5 Statement of Financial Activities (including Income & Expenditure Account) for the Year Ended 31 December 2011

6 Balance Sheet as at 31 December 2011

Notes

Unrestricted Funds 2011

Unrestricted Funds 2010

Notes Fixed assets Investments 8

2011 1,355,850 138,723 7,418 (4,000) 142,141 1,497,991 1,497,991 1,497,991

2010 1,335,823 200,318 10,175 (2,106) 208,387 1,544,210 1,544,210 1,544,210

Incoming Resources Incoming Resources from generated funds Voluntary income: Donations 2 23,579 41,606 65,185 78,213 31,194 109,407

Activities for generating funds: Investment Income Total incoming resources Resources expended Costs of generating funds Costs of generating voluntary income and administration Charitable activities Governance costs Total resources expended 3

Current Assets Cash at bank and in hand Debtors 9 Creditors: amounts falling due within one year 10 Net Current Assets Net Assets Unrestricted Funds General funds

9,325 167,821 1,860 179,006

24,139 40,500 1,621 66,260

Total Funds

11

Net (outgoing)/incoming resources before other recognised gains and net movement on funds Realised gain on investments Unrealised gain/(loss) on investments Total funds brought forward Total funds carried forward 11

For the year ending 31 December 2011 the company was entitled to exemption from audit under section 477 of the Companies Act 2006. The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006. The accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. The directors acknowledge their responsibility for: i) ensuring the company keeps accounting records which comply with section 386; and ii) preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the nancial year, and of its prot or loss for the nancial year, in accordance with the requirements of section 396, and which otherwise comply with the requirements of the Companies Act relating to accounts, so far as is applicable to the company. Approved by the Board on 19 June 2012 and signed on its behalf by:

(113,821) 36,325 31,277 1,544,210 1,497,991

43,147 20,506 (38,553) 1,519,110 1,544,210

The statement of nancial activities includes all gains and losses in the period. All incoming resources and resources expended derive from continuing activities. Robin Hodgson Lord Hodgson of Astley Abbotts, C.B.E Director 14 15

7 Notes forming part of the Financial Statements for the Year Ended 31 December 2011
1 / Accounting Policies The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year. a) Basis of accounting The nancial statements have been prepared under the historical cost convention, as modied by the inclusion of xed asset investments at market value, and in accordance with the Companies Act 2006 and the Statement of Recommended Practice: Accounting and Reporting by Charities issued in March 2005. b) Fund accounting Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. Unrestricted funds include a revaluation reserve representing the restatement of investment assets at market values. Designated funds are unrestricted funds earmarked by the Board for particular purposes. Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal. c) Incoming resources All incoming resources are included in the statement of nancial activities when the charity is entitled to the income and the amount can be quantied with reasonable accuracy. The following specic policies are applied to particular categories of income: Voluntary income is received by way of grants, donations and gifts and is included in full in the Statement of Financial Activities when receivable. Grants, where entitlement is not conditional on the delivery of a specic performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant. Donated services and facilities are included at the value to the charity where this can be quantied. The value of services provided by volunteers has not been included in these accounts. Investment income is included when receivable. Incoming resources from grants, where related to performance and specic deliverables, are accounted for as the charity earns the right to consideration by its performance. f) Cash ow statement The trustees have taken advantage of the exemption in Financial Reporting Standard No 1 (revised) from including a cash ow statement in the nancial statements on the grounds that the charity is small. g) Foreign currencies Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the net incoming resources for the year. 2 / Donations All donations received in the period were unrestricted and were received from corporate or private donors. 3 / Total Resources Expended See table below

d) Resources expended Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates: Costs of generating funds comprise the costs associated with attracting voluntary income. Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneciaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity. All costs are allocated between the expenditure categories of the SoFA on a basis designed to reect the use of the resource. Costs relating to a particular activity are allocated directly; others are apportioned on an appropriate basis.

Basis of allocation Costs directly allocated to activities Reading parties Bursaries, tuition and undergraduate support Graduate support Schools liaison officer College building project Direct Direct

Voluntary income

Support to St Peters College

Governance

2011 Total

2010 Total

6,750 4,500

6,750 4,500

5,000 4,500

Direct Direct Direct

11,000 27,000 100,000 18,571 1,860

11,000 27,000 100,000 18,571 1,860

11,000 20,000 1,621

e) Fixed assets Fixed assets (excluding investments) are stated at cost less accumulated depreciation. The costs of minor additions or those costing below 1,000 are not capitalised. Depreciation is provided at rates calculated to write off the cost of each asset over its expected useful life, which in all cases is estimated at 4 years. Investments held as xed assets are revalued at mid-market value at the balance sheet date and the gain or loss taken to the Statement of Financial Activities.

Overseas research support Direct Independent review Support costs allocated to activities Staff costs Accountancy fees Insurance Office costs Usage Usage Usage Usage 4,115 2,520 375 548 56 1,711 9,325 Direct

4,115 2,520 375 548 56 1,711 167,821 1,860 179,006

16,189 2,400 794 4,403 446 (93) 66,260

Bank charges and sundries Transactions Exchange loss/(gain) Transactions

16

17

Totals

7 Notes forming part of the Financial Statements for the Year Ended 31 December 2011 (contd)
4 / Net Incoming Resources for the Period This is stated after charging: Fee for Independent Examiners Review: 1,860 (2010 - 1,621) 5 / Staff Costs and Numbers There was one part time member of staff employed for the rst quarter of the year, at a cost of 4,115. (2010 employed for 12 months, cost 16,189). 6 / Trustee Remuneration & Related Party Transactions No members of the Board received any remuneration during the period. No trustee or other person related to the charity had any personal interest in any contract or transaction entered into by the charity during the period. No allowances or reimbursed expenses were made to the Trustees during the period. 7 / Taxation As a charity, The St Peters College Foundation is exempt from tax on income and gains falling within sections 471 488 of the Corporation Tax Act 2010 or s256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen in the Charity. 8 / Investments At Valuation At 31 December 2010 Investments purchased in year Proceeds of sale during the year Realised gains during the year Revaluation adjustment during the year At 31 December 2011 1,335,823 (47,575) 36,325 31,277 1,355,850 11 / Movement in Funds There is only one fund, which is unrestricted and the movements on that fund are shown on the face of the Statement of Financial Activities. 12 / Commitments The Foundation is committed to an investment of up to US$500,000 in Special Opportunities Fund III Limited. At the year end US$495,000 had been invested, leaving a forward commitment of US$5,000 or approximately 3,200. 13 / Ultimate controlling party In the opinion of the Trustees there is no one ultimate controlling party of the Charity.

The equivalent cost of the investments as at 31 December 2011 was 1,401,029 (2010: 1,415,923). All shares held have been revalued to market value at the year end and foreign currency values have been restated at year end exchange rates. Where possible, the market values for investments have been taken from latest fund manager reports or from published sources. Where they are not readily available, the Board has taken estimates of valuation. See note 12 for details of investment commitments. All investments are held for the purposes of the General Fund. 9 / Debtors Other debtors 2011 () 2010 () 10 / Creditors: Amounts Falling Due within One Year Other creditors and accruals 2011 () 2010 () 4,000 2,106 19 7,418 10,175

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8 Independent examiners report to the trustees of The St Peters College Foundation

We report on the accounts of the company for the year ended 31 December 2011 which are set out on pages 14 to 19. Respective responsibilities of trustees and examiner The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. We are qualied to undertake the examination by being a qualied member of the Institute of Chartered Accountants of England and Wales. Having satised ourselves that the charity is not subject to an audit under company law and is eligible for independent examination, it is our responsibility to: examine the accounts under section 145 of the 2011 Act; follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and state whether particular matters have come to my attention. Independent examiners statement In connection with our examination, no matter has come to our attention: 1) which gives me reasonable cause to believe that, in any material respect, the requirements: to keep accounting records in accordance with section 386 of the Companies Act 2006; and to prepare accounts which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities

have not been met; or 2) to which, in our opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. Wingrave Yeats Partnership LLP Member of the Institute of Chartered Accountants of England and Wales 101 Wigmore Street, London W1U 1QU Date: 22 June 2012

Basis of independent examiners statement Our examination was carried out in accordance with general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a true and fair view and the report is limited to those matters set out in the statement below.

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Charity number 1107938 Company number 05303218 www.spc.ox.ac.uk