The Christie NHS FT Annual Report & Accounts 2019-20

Consolidated Accounts of The Christie NHS Foundation Trust 2019-2020

11.3 Investment assets

All of the Investments assets are held by The Christie Charitable Fund.

Unrestricted

Endowment

Total 2019-2020

2018-2019

£000

£000

£000

£000

Market value at 1 April

517 (26)

850

538

1,388

Less: disposals at carrying value

0 0 0

(15)

(15)

Add: acquisitions at cost

2,718

15 13

15 13

Movement in cash held as investment assets:

14

Reclassification (see note 11.4)

(850)

0 0

(850)

0

Arising from disposals, income received and distributions

0

0 0

0

Unrealised gain/ (loss) on revaluation

(1,835)

(70)

(70)

Market value at 31 March

0

481

481

1,388

Unrealised gain/ (loss) on revaluation as above

(1,835)

0 0

(70)

(70)

Realised gain / (loss) on disposal

(6)

4

4

Total gain/(loss) on revaluation and disposal of investment assets

(1,841)

0

(66)

(66)

Analysis of non current asset investments

Market value at 31 March

2018-2019

Unrestricted

Endowment

2019-2020

Total £000

Total £000

£000

£000

Investments listed on Stock Exchange Cash held as part of the investment portfolio

470

0 0 0

403

403

68

78

78

Investment property

11.4

850

0

0

0

481

481

1,388

The non current asset investments held at 31 March 2019 related to the endowment funds which were all invested in the UK.

The investment portfolio is managed by Castlefield Partners Limited and consists of unit trusts, open ended investment company funds, exchange traded funds and gilts. Those which exceed 5% of the portfolio as at 31 March 2019 or 31 March 2018 are:

2018-2019

2019-2020

Premier Portfolio Conbrio UK Opps Charity

52%

48%

I Shares III FTSE UK Gilts

6% 0% 7%

7% 5% 5%

Premier Portfolio Conbrio Managed Multi Asset

Powershares Global FTSE RAFI US

11.4 Investment Property

Group NHS Foundation Trust

Group NHS Foundation Trust

2018-2019

2018-2019

2019-2020

2019-2020

£000

£000

£000

£000

At 1 April Additions

0

0 0 0 0

850

0 0 0 0

2,700 (1,850)

0 0

Fair value losses (impairment)

Reclassification*

0

(850)

850

0

Total

0

0

*The Charity purchased an investment property in January 2019. Investment properties are measured at their fair value as at the balance sheet date. The first professional valuation of investment properties took place in April 2019 and the fair value of the assets is reflected in these statements. The purchase price of the investment property reflected the value of the building and surrounding land, as well as the going concern value of the business operating on the premises prior to the purchase. This business ceased operating once the property was purchased and so the property has been valued solely on the fair value of the building and land in its current condition and without taking into account any future income flows arising from the use of the asset. As such, an impairment of £1.85m appears as an item of expenditure in these statements. From September 2019, the property was leased by The Christie NHS Foundation Trust. The lease agreement is for one year at a value of £45,000. Applying IAS16, the property is regarded as owner-occupied from the group perspective. The property has been valued by the District Value on this basis and as an owned asset at a value of £850k. The asset has been reclassifed as Property, Plant and Equipment in the Group accounts (note 10.1). Lease expenditure of £26,250 for the period September 2019 to March 2020 is recognised in Premises cost in the accounts of the Trust. The lease income and expenditure has been eliminated on consolidation for the group accounts.

31 193