Waddesdon Trust

Objectives

The principal objects of the Trust are the maintenance, improvement and payment of certain of the outgoings in respect of Waddesdon Manor in the Vale of Aylesbury, Buckinghamshire. The Manor is administered in conjunction with the National Trust.

Professional Advisers

Auditors Saffery Champness
Legal Advisers Farrer & Co; Finers Stephens Innocent
Investment Managers Global Asset Management

Trustees

The Rt Hon Lord Fellowes (Chairman), Lord Rothschild, Lady Rothschild, The Hon Beth Matilda Rothschild, Nicholas Hugo Baring, Mr Julian Humphrey Prideaux, Sir Simon Jenkins

Officers

Mrs Tehseen Overy (Correspondent)

Investment Policy

Apart from properties and bank deposits, the entire capital of the Trust is now invested in GAM Composite Absolute Return Fund, a fund of funds run by the investment manager. The Trustees' Investment Policy is to achieve capital growth in the long term appropriate to the performance of global equities, but with less volatility, and protection of capital during periods of market difficulty. The GAM fund delivers return in the form of capital appreciation and does not normally pay dividends. Accordingly there is no investment income other than rents and interest on bank deposits. During the year the Trust's investment fund holding depreciated by 18%, whilst disappointing not unexpected by the Trustees considering the decline in global markets during the year.

Grant Policy

The principal objects of the Trust are the maintenance, improvement and payment of certain of the outgoings in respect of Waddesdon Manor in the Vale of Aylesbury, Buckinghamshire. The Manor is administered in conjunction with the National Trust.During the year, the Trustees made a grant of 315,000 (2008:300,000) to the National Trust for the Maintenance of Waddesdon Manor; thereby fulfilling its annual objective.

Governance

Trustees meet twice a year to receive a detailed report on the operations at Waddesdon Manor, review investment performance and discuss matters of a strategic and administrative nature.

Reserves

Whereas previously only the accumulated income of the Trust was available as reserves to meet future outgoings, the exercise of the power conferred by the Total Return Order has resulted in a substantial amount of unapplied total return. As explained above, the Trustees' policy is to allocate the unapplied total return as necessary to sustain annual giving in support of the objects at the rate of up to 4% of total funds. The total return for the year was a loss of 1,278,453 (2008: return of 244,260. This amount 321,689 (2008: 306,049) was allocated to the Trust for use as income in the year. A transfer of 292,393 (2008: 282,190) was made between the capital and income funds to eliminate the Deficit arising on the income fund this year.

General Review

Total Return Order: The capital of the Trust is held as a permanent endowment, in consequence of which only income from its investments has been available for application in support of its objects. Accordingly the Trustees welcomed the opportunity provided by the Charity Commission to make the total investment return available for application, and a Total Return Order for the charity was made by the Commission on 6 August 2003. Under the terms of this Order, the Trustees have to identify the unapplied total return of the Trust each year. In determining that part of the unapplied total return to be allocated to the Trust for application, and paid out by way of grant, the Trustees have considered the following matters: that approximately 45% of the unapplied total return is attributable to inflation over the period, and that the current policy of the Trustees is to seek to maintain the value of the Trust's investments in real terms; that the Trust's objects can best be served by a consistent level of support, rising at least in line with inflation. A substantial one-off donation would only be appropriate in exceptional circumstances; and that the Trustees could maintain giving at up to 4% of total funds averaged over a period of 3-5 years. The Trustees consider that they possess amongst themselves all the skills needed to make the above determination. They have, however, sought professional advice in arriving at this view.

14 St James's Place
London
SW1A 1NP

Tel: 020 7647 8536
Fax: 020 7495 3530

CC number: 202026

period ending 2007 2009
INCOMING RESOURCES £m £m
legacies - -
grants - -
total voluntary income - -
activities, furtherance of charities objects - -
activities for generating funds 0.02 -
trading subsidiaries - -
sales and fees from operating activities 0.02 -
investment property - -
dividends - -
total listed investments - -
income from subsidiaries - -
interest on cash & short term inv 0.00 -
total investment income 0.00 -
TOTAL INCOMING RESOURCES 0.03 0.03

RESOURCES EXPENDED £m £m
fundraising costs - -
investment management costs 0.05 -
Investment costs 0.05 -
cost of generating funds 0.05 -
grants paid 0.29 -
activities, furtherance of charities objects 0.01 -
management and admin 0.00 -
total charitable expenditure 0.30 -
TOTAL RESOURCES EXPENDED 0.35 0.32

ASSETS £m £m
intangible assets - -
tangible fixed 0.43 -
equities - -
bonds - -
listed investments 7.53 -
investment assets 7.53 5.83
other fixed assets - -
total fixed assets 7.97 -
stock - -
debtors - -
cash 0.10 -
current assets 0.10 -
bank loans & overdrafts - -
trade & other creditors, accruals 0.00 -
creditors falling due within one year 0.00 -
net current assets 0.09 -
loans - -
future long-term grant commitments - -
trade creditors - -
subsidiary & associated undertakings - -
creditors falling due after one year - -
provisions for liabilities and charges - -
TOTAL ASSETS 8.06 -

ASSETS £m £m
income funds - -
endowment funds 8.06 -
restricted funds - -
TOTAL FUNDS 8.06 6.40