The Royal Naval Benevolent Trust (Grand Fleet and Kindred Funds)

Objectives

The Trustís Primary Beneficial Objects are to give help, in cases of need, to those who are serving or have served as ratings in the Royal Navy or as other ranks in the Royal Marines and their dependants.

Professional Advisers

Legal Advisers Blake Lapthorn
Investment Managers BlackRock; Schroder Investment Management

Trustees

Commodore A J B Cameron, Corporal P Barnes, C L M Davis, N Gartside, J Halford, K Lambert, Capt T Martin, J McCafferty, J Moulson MBE, J Rayner, P G Scoffield, O W Shread, C C A Siddall, Commodore S J Woodcock

Officers

Commander Stephen P Farrington (Chief Executive), Mr P Schofield (Financial Controller)

Investment Policy

Approximately three quarters of the Trustís portfolio is invested in the Armed Forces Common Investment Fund managed by BlackRock Investment Management (UK) Ltd and is subject to a total return policy with the investment objective of achieving real growth in capital and income over the long term through investment, predominantly in equities. The balance is managed by Schroders & Co Ltd with a similar return objective. The performance of both sections of the portfolio was measured against targets set at 1% above benchmarks that are based on the relevant market indices. During the year the Armed Forces Common Investment Fund produced a total return of 37.0%; the composite benchmark returned 41.2%; investments with Schroders & Co Ltd. returned 22.4%; the composite index returned 22.5%.

Grant Policy

The Trustís charitable objectives may be summed up as helping members of the RNBT Family when they find themselves in need or distress. The disbursement of this help is through the Trustís Grants Committee, an all-volunteer group who are themselves part of the RNBT Family. The Committee, supported by a small grant administration team, pride themselves on the flexibility and speed of response of the Trustís grants and annuities systems in achieving this aim. The Trust makes grants to assist members of the RNBT Family across a spectrum of fundamental needs that include food, clothing, accommodation, fuel and utility bills, disability aids, training for second careers, house repairs and household goods, child care, respite holidays and help with all manner of financial difficulties. The categories of need for frequently met circumstances are listed for statistical purposes, but the Trust will meet needs outside of this list when required. In short, the Trust retains the discretion to help in new situations provided there is a sufficient degree of need and the financial resources are available. As well as grants to individuals, the Trust administers an annuities scheme. This scheme provides a modest level of regular financial support to older people on very low incomes the definition of which is a calculation and judgement based on the excess of income over expenditure, levels of savings and an applicantís personal circumstances.

Future Commitments

The Trustís objectives for 2010/11 are: To continue to satisfy from the Trustís own resources and in conjunction with other charities the needs of eligible applicants assessed as requiring financial assistance, i.e. the relief of poverty, subject to the Trustís grants policy; To continue to meet and where possible exceed all care standards at our care home, Pembroke House; To achieve average occupancy at Pembroke House in excess of 96%; To maintain and improve where necessary the material condition of the properties that comprise the John Cornwell VC National Memorial and maintain full occupancy; To continue to work closely with kindred organisations in pursuit of expanding the capacity of the naval charities for the care of older people; To broaden the Trustís public relations and identify additional means of generating income by 5% over 2009/10 levels; To meet the Trustís income generation targets while safeguarding and where possible increasing the Trustís capital worth; To promote the rationalisation of naval charities where change would be in the best interests of the RNBT Family; To further promote awareness of the Trust within the active service community with the specific aim of increasing the number of uniformed volunteers; To complete the wind-up of the Trustís Final Salary Pension Scheme.

General Review

The Trust is known as the RNBT and its beneficiaries as the RNBT Family. The Trustís beneficiaries are helped in the following ways: Grants to assist with a very wide range of individual needs; Annuities providing a regular financial supplement to older people on very low incomes; Care of older people at Pembroke House, the Trustís care and nursing home at Gillingham, Kent; Subsidised housing at the Trustís almshouse, The John Cornwell VC National Memorial at Hornchurch, Essex for which the RNBT is the sole trustee; Grants to selected organisations that provide support to members of the RNBT Family; Advice on welfare and allied matters. The Trustís medium to long-term strategy is: To maintain and develop an effective organisation for the delivery of financial support to meet the wide ranging needs of the Trustís beneficiaries; To continue to provide, and if possible increase, facilities for the care of older people; To promote ever increasing awareness of the RNBT among the Trustís beneficiary group and potential supporters; To seek ways of enhancing the overall effectiveness of benevolence in general and particularly within the naval arena by working more closely with other Service charities; To increase income through growth in existing sources and by identifying new ones.

Castaway House
311 Twyford Avenue
Portsmouth
PO2 8RN

Tel: 023 9269 0112
Fax: 023 9266 0852

www.rnbt.org.uk

CC number: 206243

Performance Guide Rankings

investment assets 434 / 1000
investment income 349 / 995
return on investments 337 / 995
investment management costs 204 / 743
inv mgmt costs as % of inv assets 149 / 743

inv mgmt costs as % of inv income 218 / 743
investment property - / 361
income from investment property - / 325
inv property inc as % of investment property - / 225

income from listed investments 155 / 661
income from short-term investments 389 / 726
listed investment inc as % of inv income 193 / 661
short-term investment assets 525 / 988

legacy income 139 / 226
grants received 30 / 88
total voluntary income 241 / 628

grants made 207 / 668
charitable expenditure 316 / 638
charitable expenditure as % of total expenditure 129 / 335
support costs - / 230
management & administration fees 378 / 970
audit fee per £m of income 605 / 949

total incoming resources 396 / 1000
total resources expended 390 / 1000
total assets 451 / 1000
period ending 2009 2010
INCOMING RESOURCES £m £m
legacies 0.63 0.32
grants 1.33 1.42
other voluntary income 0.21 0.22
total voluntary income 2.17 1.96
activities, furtherance of charities objects 1.36 1.41
activities for generating funds - -
trading subsidiaries - -
sales and fees from operating activities 1.36 1.41
investment property - -
dividends - -
total listed investments 1.02 0.95
income from subsidiaries - -
interest on cash & short term inv 0.09 0.01
total investment income 1.11 0.96
TOTAL INCOMING RESOURCES 4.63 4.32

RESOURCES EXPENDED £m £m
marketing and promotion 0.18 0.17
fundraising costs 0.18 0.17
investment management costs 0.13 0.14
Investment costs 0.13 0.14
cost of generating funds 0.31 0.31
grants paid 1.95 1.55
activities, furtherance of charities objects 2.57 2.41
management and admin 0.06 0.06
total charitable expenditure 4.59 4.02
TOTAL RESOURCES EXPENDED 4.90 4.33

ASSETS £m £m
intangible assets - -
tangible fixed 3.26 3.15
equities - -
bonds - -
listed investments 19.73 25.99
investment portfolio cash & settlements 1.67 1.16
investment assets 21.40 27.15
other fixed assets - -
total fixed assets 24.66 30.30
stock 0.02 0.02
debtors 0.53 0.44
cash 0.07 0.24
current assets 0.62 0.69
bank loans & overdrafts - -
trade & other creditors, accruals 0.20 0.16
creditors falling due within one year 0.20 0.16
net current assets 0.42 0.53
loans - -
future long-term grant commitments - -
trade creditors - -
subsidiary & associated undertakings - -
creditors falling due after one year - -
provisions for liabilities and charges - -
TOTAL ASSETS 25.08 30.82

ASSETS £m £m
income funds 23.22 28.69
endowment funds 0.56 0.73
restricted funds 1.31 1.39
TOTAL FUNDS 25.08 30.82