Treasurer’s Report

TOB Ltd 2021-2022

The beginning of The Old Berkhamstedians’ financial year in July 2021 did broadly, and rather neatly, coincide with the Government’s removal of most of the Covid restrictions and this had led to fairly normal and pre Covid Old Berkhamstedian events and activities and our income and expenditure in the 2021/2022 financial year did in the main follow pre Covid patterns.

In terms of the TOB investment performance. At the beginning of the last financial year (2021/22) our investments were generally in positive territory until around the middle of January 2022 and since then we have seen negative performance and of course there is an obvious correlation with this pattern of investment performance and the start of the Ukraine war on the 24th of February 2022.

To illustrate this further, over the last 12 months, our cumulative investment performance is down by 11.92% and this of course has reduced our overall portfolio valuation and income. This situation is very much event based and no doubt over the long term we will see both recovery and solid performance and returns. As our funding is not wholly dependent on our investment income but also supported by a grant from the School, this does ensure that there are no short-term financial difficulties for TOB due to the current negative performance of our investments.

Also, sadly our perennial VAT issue that was highlighted in the previous Treasurer’s report in still with us and we are of course recognising this forecasted liability on our balance sheet until HMRC decide to respond to all the information they have asked for and now have; so the ball is now in their court to be suitably motivated to conclude this by offering us an equitable settlement liability calculation. We will continue to pursue this matter and endeavour to achieve the best possible outcome for TOB.

TOB Trust Co Ltd

Sadly, our Trust Company has experienced similar investment performance patterns as The Old Berkhamstedians in the 2021/2022 financial year and in the last twelve months investments are cumulatively down by 15.55%. Our overall sentiments towards the Trust Company’s investment performance are similar to that of The Old Berkhamstedians. Although in the early part of the last financial year, the Trustees agreed to level up and harmonise the risk rating of the Trust Company’s investment portfolio from level 5 to a slightly higher risk level 6 and this is in line with The Old Berkhamstedians investments. The Trustees believe that the relatively small incremental increase in risks are worth taking on board with the prospect of better growth and returns at this revised risk level.

However, as in previous years, we managed to maintain the same Bursary donations and a return to a similar pre-Covid level of travel grants been given to various eligible Berkhamsted pupils. We also gave out two Knox-Johnston ‘Tall Ships’ awards as well. The only exceptional expenditure the Trust Company had, following the approval of the Trustees was the funding of a new external clock for the Kings Road Campus to commemorate the Queen’s Platinum Jubilee.

David Dodds (Lo ’75) Treasurer