arisaig partners 31 2017

Charity number: 1101404

THE ARISAIG PARTNERS FOUNDATION

ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2017


CONTENTS

Page

Reference and admlnlstratlve details of the Foundation, its Trustees and advisers

Trustees' report 2- IO

Independentsudltors'report

Statement of financial activities

11 - 12

13

Balance sheet 14

Cash flow statement 15

Notes to the flnhnclal statements 18- 22


REFERENCE AND ADMINISTRATIVE DETAILS OF THE FOUNDATION, ITS TRUSTEES AND ADVISERSFOR THE YEAR ENDED 31 DECEMBER 2017

TrusteesPrlsca Lim Qul Tiang (retired on 13 September 2018)James Michael Alsxandroff (resigned on 1 November 2017)Lindsay William Ernest Cooper (resigned cn 1 November 2017)John Torqug McAlpins (resigned on 1 November 2017)Rebecca Jane Lewis (appointed on 1 November 2017)Chua Ghee Sang (appointed on 1 November 2017)Hugo Wkllam James Robinson (appointed on 1 November 2017)

Charity registered number

1101494

Registered office

Trlcor Suite, 4th Floor50 Mark LaneLondonEC3R 7QR

Independent auditors

PricewsterhouseCocpers LLPChartered Accountants and StatutoryAudiiorsOne KlngswayCardiffCF103PW

Bankers

HSBC24 Market Place, Frome, Somerset, BA13 1AJ

Solicitors

Stone King LLPThirty Station Road, Cambridge, CB1 2RE

Investment Manager

UBS AGWealth Management, 1 Curzon Street, London, W1J 5UB

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TRUSTEES'REPORTFOR THE YEAR ENDED 31 DECEMBER 2017

The Trustees present their annual report together with the audited financial statements of the Arisaig Partners

Foundation (the "Foundation") for the year from 1 January 2017 to 31 December 2017.

Objectives and Activities

a. Policies and objectives

The objective of the Foundation is to make grants for charitable purposes for the benefit of the public In any pert

of the world ss the Trustees may in their absolute discretion think fit. The grants made by the Trustees are

principally focused on providing education opportunities for the young in the lees developed countries.

b. Strategies and activities for achieving objectives and grant making policies

The Foundation delivers its charitable objectives through established charity organisations, which areshort-fisted based on their track record, financial transparency and operational capability. Theseorgsnisstions will receive regular grants subject to delivering maximum value to the beneficiaries. Reviews areperformed by the Trustees through report updates from the organisations and site visits by the Trustees,

Achievements and performance

a. Review of activities

The Trustees undertake a review of periodical updates from the sponsored organisations on their

financial position, operational capability and educational opportunifies, welfares and aids defivered to the young

children. Review is also performed via site visits to s beneficlary's location which will be conducted by aTrustee or an employee of the Adssig Partners Group.

Charitable dcnafions totafilng f459, 121 (2016: f483,318) were made to 11 (2016; 12) main charity

orgsnisatlons and beneficiaries during the year ended 31 December 2017. The main beneficiades of the

donations were as follows:

~ The Green Gecko Project ("GGP") was founded in July 2005 by Australian Tania Palmer and local Rem

Poum. It is a sanctuary where children who used tc beg barefoot along Siam Resp's bar streets in

Cambodia receive shelter, nourishment and education. It Is a home, school snd family for over 70 former

street children from Siam Reap. GGP nurtures these children with the skills, education, values, and

self-esteem they need to break the begging cycle and become proactive members of society.

Attuned to ths fact that many of these children are sent to beg by their own parents, GGP also provides

support for the children's families snd the broader community through long-lerm health, education and

training initiatives. Indeed several of the Gecko children's mothers are full time employees of GGP, thus

also helping to provide a family atmosphere to the shelter so that the children grow up feeling loved.

The Foundation contributes to GGP's education block and also the annual running costs of the wider

project. The education block houses two classrooms and is run on solar power. The donations help to

provide study materials and computers for the children.

We also support the Tiger Club providing education and holistic care to 28 younger siblings of the GGPchildren. The children attend for flve hours a day to learn English, have a hot meal, rest and play.

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TRUSTEES' REPORT (continued)FOR THE YEAR ENDED 31 DECEMBER 2017

~ Street Child Africa is a UK registered charliy devoted to working with and for street children acrossAfrica'. The Street Girls Aid ("SAid" ) project in Ghana has been operating since 1994 snd cares for theincreasing number of girls living on the streets of Accra. Due to the nature of living on the streets, many

of these girls fall pregnant or are already young mothers; SAld supports them through their pregnancyand also teaches them how to look after their babies.

Unfortunately many of these mothers will return to the street after pregnancy in order to eam a living and

provide for their children. For this reason SAid also operates four crbches, or early childhood

development centres.

The mothers cen leave their children in a safe environment, where they can play and develop, whilst theywork during the day. Donations from the Arisaig Partners Foundation are used to provide balancedmeals, healthcare, and staff to care for and help educate 250 of these children. These early yearn arevital for the children's preparation to enter primary school, which will in turn help to provide a route out'of

poverty.

~ ACE Africa wss established in collaboration wilh the Government of Kenya in September 2003 fogowlng

research Into the lack of community infrastructure to support the increasing number of orphans and

vulnerable chgdren in highly-HIV affected snd resource-poor communities in Western Kenya. This non-

profit organisation addresses both short-term emergency needs and long-tenn developmental Issues that

Impact communities badly affected by the HIV and AIDS epidemic.

The Foundation supports the education and boarding of 112 children who have been orphaned byHIV/AIDS in Western Kenya. Donsbons ere used to finance on-going running costs of both a boardingschool snd an IT centre that the Foundation has already helped to build. Operational costs range from

the provision of food, beds and msttresses, through to the salaries of staff attending the children.

~ Child's Dream's mandate is to support underprivileged children in the Mekong sub-region. They supportthe BHSOH (Boarding High School for Orphans and Helpless youths) Migrant Learning Center by funding

Its operating and running costs, snd their objective Is to provide low cost or free education and boardingto disadvantaged migrant children from Myanmar.

It is hoped that students become more involved in their community, become self-sufficient snd learn to

help provide for themselves and their families, thereby contributing to the future of their country. At thetime of writing, there are 301 students enrolled within the BHSOI-I, 27 of whom sre lodged in boarding

houses.

~ The Mercy Centre Preschool is a programme run by ths Human Development Foundation ("HDF"), acommunity-based field organisation, which has been supporting children in the slums of Klong Toey,Bangkok's slaughterhouse district, since 1973. From running its first kindergarten classes on the edge ofthe slum in s former pig pen, the HDF today runs 22 Mercy Kindergartens that provide 2,500 children

from the community with a well-rounded preschool education that prepares them for state-sponsoredprimary schools. The children are taught material from the Thai national curriculum In a safe and loving

environment where they are shielded from the harsher realities of the neighbourhood.

Under a sustainable platform, families are charged a fraction cf the cost of an ordinary preschool (10-15baht); with the focus on Incluslvily, this fee is altogether waived for the poorest families who also receivedonations of books, bags, shoes and uniforms to allow their children to participate.

The Arisaig Partners Foundation supports two of the Mercy Centre preschcols which are sNended by atotal of 195 children between the ages of three snd six. Flat 10 in Dindseng is attended by 42 children

and our donations cover all of the running costs that are not covered by the families themselves; theseinclude food, study materials, teacher's salaries, utility bills, basic medical care, snd training fees. TheFoundation also supports the Landin school which Is In Soi Anan, Bangkok, Our donations allow 153children from nearby slums to attend the school where the cumculum includes Thai, English, arithmetic,

hygiene, history, folklore, music, dance, singing, sports and arts. Via s community outreach programmethe Landin school also helps identify children who suffer abuse at home or need extra aitention in their

development skills and has saved children from being trafficked by their parents or guardians.

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~ Magic Bus

"Chgdren must have the power and the dignity to be the master of their own desgny" (Matthew Specie,

Magic Bus). Mumbai is home to millions of marginallsed children who do not receive an adequate

education to help them break the poverty cycle into which they are born. Magic Bus rune a unique after-

school programme where local youth volunteers use a sports and activity-based curriculum to deliver

lessons to other children. Ths volunteers are trained to bs menlors and role models and sct ss catalysts

for community change; ths children that they reach out to grow up more congdent, respected, and

responsible within their communities.

Studies have shown that the children who participate in Magic Bus after-school activities attend school

more regularly and also drop out less; this in turn Increases the possibility of the child moving into higher

grades and gnishing their education. Participation has also been proven to break down gender

discrimination and raise children's understanding of the importance of hygiene to protect their health.

Through the Bombay Port Trust the Adisaig Partners Foundation supports 400 children by helping to

provide community leader training and the materials required for the activities.

~ Vlrlanle Foundation was established in 1992 by Dominique Lemay, a French social worker, with the

help of his Filipino friends. Virlanie cares for children In need of special protection - those who are among

the poorest of ths poor, the abandoned, abused, exploited, neglected, and orphaned. Through its various

programs and services, the foundation strives to build a better future for these children by "giving back

their smiles. "

Virlsnle's main goal is to advocate end lobby for the rights of children, care for those In need of special

protection, and enable them to became Independent.

With the Foundation's support, Virlsnie launched s new project in Msy 2015 called 'Walk Your Way toSchool". The project aims to promote social Inclusion of street children through education. This is done by

preparing them to enter, resume or maintain formal schooling. A street child is one whom the street has

become her or his habitual abode and/or sources of livelihood, and who ls inadequately protected,

supervised or directed by responsible adults.

We support 51 children aged between three snd 12, living In the slums or on the streets of Delpan

Manila, Philippines.

~ The Arlsaig Community Council's Fund Is used for the benegt of the community of Arisaig, s sea side

village of approximately 1,000 people in the Western Highlands of Scotland, after which Arisaig Partners

takes its name.

Donations are contributed to an independently managed fund end benefit a wide range of local people

and associations including schools, youth activity associations, recreation centres, councils, and

churches.

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TRUSTEES'REPORT(continued)FOR THE YEAR ENDED 31 DECEMBER 2017

~ The Temple Garden Foundation ("TGF") is a UK registered charity and international NGO that works in

partnership with local communifies in rural Cambodia to promote sustainable development for those fivlng

In poverty. TGF currently operates in 59 villages in the Chi Kraeng district of Siam Reap, focusing its

efforts upon four areas: healthcare, children's education, infrastructure, and adult education through

vocational training. The Arisalg Partners Foundation funda the on-going costs of three of TGF'schildren's education projects; the Community Kindergarten, Life Skills and Summer School projects and

that together provide pre-school education, important skills and supplementary education to over 2,000children.

The aim of the community kindergartens is to provide local children with the base educafion that they wfil

need to enter primary school. The schools that the foundation supports are currently attended by almost

130 children. Understanding the importance of sustainablllty, TGF enters each village with the target ofbeing able to hand responsibility over to the community after five years.

Over time TGF transfers management and ownership of the kindergartens to the local authodities by

supporting the establishment of a commiNse consisting of teachers, parents snd commune councllors.Once estabfished this committee is responsible for sourclng funding for teachers' salaries and otherresources with TGF withdrawing to a mentorlng and support role. Participation rates have steadily risen

as parents become more involved In the process and better understand the benefits of pre-schooleducation, currently standing st over 70'/o.

The Foundation also supports 765 children vie TGF's Life Skills Project. The project provides different

courses for the children attending depending upon their ege range. Children from ages five to ten aretaught "life skills" such as hygiene, environmental awareness, career routes, agriculture, snd traffic

safety. Children between the ages of ten snd 12 are taught gardening end nutrition that will help them

support themselves in adulthood either through farming or the production of marketable goods.Vegetables produced In the school garden also supplement school breakfasts improving student health

and nutrition.

Finally we support TGF's summer school programme which is targeted at children making the transition

from primary to secondary school. Every year, over 1,000 grade six and seven students participate in atwo-month Intensive programme that assists ihe students to pass grade six exams and helps to ease thetransition for those completing their first year.

~ The Akanksha Foundation is a non-profit organisation based in Mumbai that focuses upon providing

underprivileged children with an education and the skills they need to lead beNer lives. In total the

foundation creates opportunities for over 3,500 children across 61 Akanksha centres (35 in Mumbai and

26 in Pone), two kindergarten centres, and four schools.

The Akanksha centres run after-school sessions five days a week that are designed to fill the major gapeleft by the state education system and also provide the chifidren with a safe piece where they can enjoythemselves. The three main areas of focus are Maths, English, and Social Values. In order to stimulate

the children's development teachers use creative teaching aids like maps, games, multimedia

presentations, srhvork, and quizzes.

Overall the aim is to provide these children with a strong educational foundation which will ultimately help

them gain employment and become valued members of society. The Foundation supports one Akanksha

centre in Shsnkaralayam, which is attended by a total of around 47 children.

Page 5


TRUSTEES' REPORT (continuedjFOR THE YEAR ENDED 31 DECEMBER 2017

~ Founded in 1988, CARE's mission is to eradicate illiteracy and provide a marketable education to every

chgd in Pakistan. To date they have employed 4,300 teachers and educated 160,000 children across 227schools. CARE hss s modern academic programme that focuses on student-centric teaching and

hands-on, experiential learning; creativity Is actively encouraged through activity-based teaming in afriendly environment.

To support its network of schools CARE has established a teacher training facilffy in Lahore that it uses to

provide continuous training to CARE-sponsored teachers as well as government teachers working in

CARE institutions. It has also developed its own English language programme "ACCESS", recognising

the importance that tha English language has in today's world when it comes'to employabfflty.

Donations from the Foundation are used to maintain and expand the Arlsaig CARE School, a purpose

burt, co-educational school situated in Iqbal town, Lahore, and the CARE 9 School In Dine Neth, District

Kasur. Together the schools currently provide education for almost 2,450 children,

~ The Foundation supports the Singapore Management University through the provision of two annual

awards to its top undergraduates in the Portfolio Management and the Analysis of Equity Investments

courses at the Lee Kong Chian School of Business. These awards are aimed at motivating exceptional

talent pursuing these courses and spurring students to achieve greeter heights of academic excellence.

b. Investment policy and performance

The Foundation's investment strategy Is to ensure that the excess cash holdings of Ihe Foundation are put to

good use for generating healthy returns from e diversified porffolio of investmenls to fund the charity projects.

The ultimate aim of the Foundation ls to accumulate sufficient assets to provide returns that csn support the

projects.

The net gain on aff investments for 2017 was t 8.8'/o (2016: net gain of 12.1'/oj, driven mainly by the portfogo

of inveslmenls held by the Foundation. The Foundation aims to maintain its objective of diversification in the

portfolio of investments by holding investments over different markets, As at 31 December 2017, the

Foundation's Investmenl holdings was 36 (2016: 36).

The majoriiy of Ihe Foundation's investments sre administered and custodied by UBS AG under a managed

account.

c.Factors mlevant to achieve objectives

The sponsored organisstlons are selected based on their track records and financial transparency and also their

charitable objectives. The Foundation monitors the achievement of its objectives by receiving periodical updates

to ensure the grants made are focused on providing relevant opportunities for young children and also by

conducting site visits by these sponsored organisations who share a similar objective with the Foundation.

Site visits may be conducted by the Trustees or any employees of the Arisaig Partners group to determine the

charity organisetlon's abigty to put the donations to good use. Site visits sre conducted mainly to determine the

sentiments on the grounds, the charity organisation's operational capabilities and also look at the general welf-

being and behaviour of the young chgdren. The observations from the sits visit, including photographs, are

cogated into a site visit report and circulated to the Trustees for comment.

Financial review

a. Going concern

After making appropriate enquiries, the Trustees have s reasonable expectation that the Foundation hss

adequate resources to continue in operational existence for the foreseeable future. For this reason they

conlinue lo adopt the going concern basis in preparing the financial statements.

Page 6



b. Reserve policy

In the long term, Ihe Foundation alms to accumulate reserves through donations received sufficient to fund its

charitable activities based on investment income generated. The unrestricted reserves shall be invested with along term view of 10- 15years to achieve sufficient returns to fund the progrsmmes It ls supporting.

The Trustees review the reserve policy annusfiy and accordingly make decisions with respect to the utilisatlon ofthe reserves amount. The unrestricted reserves as at 31 December 2017were 815,861,796 (2016:812,905,458).

c, Principal funding

Income for ths Foundation is funded by donations from Arisaig Partners (Holdings) Ltd. ("AP Holdings" ), and its

subsidiaries. The donation amounts are determined based on the group cash end profit reserves, which aresubject to the profitability of the group.

During the year ended 31 December 2017, the Foundation received f823,687 cash donation and donation in

specie of 15,285 shares in Arissig Africa Consumer Fund which amounted to f145,720 and 186 shares in AdsaigLatin America Consumer Fund which amounted to 83,576 from AP Holdings (2016: the Foundation receivedcash donation of 8867,141 and donation in specie of 31,461 shares in Arisaig Asia Consumer Fund which

amounted to f1,575,533 from AP Holdings).

Ths Trustees confirm that they have complied with the duty in Section 4 of the Charities Act 2011 to have dueregard to public benefit guidance published by Ihe Charity Commission.

Public benefit

The Trustees believe that the csnying out of the aims of the Foundation provides a public benefit in a number ofareas, including: the relief of persons resident anywhere in the world who ara In conditions of need, hardship ordistress; the advancement of education and training of persons resident anywhere in the world.

The Trustees also believe that the degree of public access Is sufficient for Ihe Foundation's aims to be carriedout for the pubfic benslit. The main activity of the Foundation Is the making of grants to communitiss outside the

UK, paificularly in the less developed world, in order to help relief of poverty and hardship snd to improve the

quafity of life for Ihose communities. There sre no restricfions on who may apply to the Foundation for grants orprogramme related inveslmenls, subject to qualifying under the objects of the Foundation.

Structure, governance and management

James Michael Alexsndroff, Lindsay Wifiism Ernest Cooper, and John Torquil McAlpine resigned as trusteeson 1 November 2017. Rebecca Lewis, Chua Ches Sang and Hugo Robinson were appointed as trustees on 1

November 2017 as part of the Foundation's trustee renewal process.

Prlsca Lim Qul Tiang retired as s trustee on 13 September 2018.

a. Method of appointment or election of Trustees

The management of the Foundation Is Ihe responsibfiity of the Trustees who are elected and co-opted under theterms of the Trust deed.

Page 7



b. Policies adopted for the Induction snd training of Trustees

The procedures to induct Trustees are detsfled in the Trust deed of the Foundation. Trustees are entitled to hold

offic for life. A Trustee will cease to hold office if he/she Is disqualified under the Charities Act 2011, mentsfiy

or physically Incapable of managing his/her own affairs, absent from three consecutive meetings of the Trustees,

resigns by written notice or removed by a resolution passed by all other Trustees. There should be at least two

Trustees holding office at any ons time. The power of appointing new Trustees is vested in the Trustees, who

shall make such appointments by deed.

The Trustees sre aware of their responsibilities as detailed in the Trust deed. The Trustees are kept up to data of

their responslbiflties through circulars issued by the Charity Commission. Every circular is emailed to the Trustees

where they will read and assess the applicability of each circular. Where applicable, they will devise the

necessary action plans arising from the circular.

c.Organisational structure and decision making

At the regular Trustees' meeting, the Trustees agree the broad strategy and areas of ectivity for the Foundation,

including grant making, investment, reserves and risk management poficles end performance. The day-to-day

acflvities of the Foundation are managed by Chua Ches Sang and Rebecca Jane Lewis. The Foundaflon does

not httve any employees.

d. Related party relationships

The Foundation received donations from Arisaig Partners (Holdings) Ltd. ("AP Holdings" ). During the year

ended 31 December 2017, three trustees of the Foundation, James Michael Alexandroff, Lindssy Wfifiam

Ernest Cooper, and John Torquil McAlpins resigned on 1 November 2017, were also directors of AP

Holdings.

Out of the three trustees appointed on 1 November 2017, Rebecca Jane Lewis resigned ss director of AP

Holdings on 28 December 2017, and Chua Ches Seng was appointed as director of AP Holdings on

29 December 2017. As at 31 December 2017, only one trustee, Chua Ghee Sang (2018: three trustees, James

Michael Alexandroff, Lindssy Wifilam Ernest Cooper, and John Torqufi McAlpine) was also a director of AP

Holdings.

'Certain investments held by the Foundation are Investments in funds managed or sub managed by Arlsaig

Partners (Mauritius) Ltd ("AP Mauritius" ) and Adsaig Partners (Asia) Pte Ltd ("AP Asia"). Lindsay William Ernest

Cooper, a trustee who resigned on 1 November 2017, is a director of AP Mauritius snd AP Asia. Chus Ches

Sang, a trustee appointed on 1 November 2017, ls s director of AP Asia.

e. Risk management

The Trustees have considered the major risks to which the Foundation is exposed and have established

systems and procedures to manege those risks. The Trustees consider vsrlabfiity of Investment returns and the

fluctuating exchange rates on the investments held as the Foundation's major risks, These risks are managed

by diversifying the Foundation's portfolio of Investments. The expenses of the Foundation, including grants

to organissgons supported by the Foundation, sre mainly paid in US dollars and the majority of the

investment porffofio Is denominated in US dollars to minlmise the foreign exchange risk.

The following statements summarlse the Foundation's policy in managing identified forms of financial risk

Foreign exchange risk —the Foundation's investments are valued in Euro ("EUR"), Swiss Franc ("CHF"),

.Great Britain Pound ("GBP")snd United States Dollar ("USD").Therefore it is exposed to foreign exchange risks

due to fluctuations in the exchange rates. In 2017 there Is a net exchange loss of 81,016,061(2016: 8176,646) arising on the translation of invsstmsnts denominated in foreign currencies to GBP at or

during the year end. The Foundation does not undertake any actions to hedge fis foreign exchange risk as the

investments are long term investments and well dlversifled.

Page 8


TRUSTEES' REPORT (continued)FOR THE YEAR ENDED 31 DECEINSER 2017

e. Risk management (continued)

Credit risk —the Foundation's exposure to credit risk is minimal as there Is an immaterial balance of accounts

receivable in the financial statements and cash transactions are limited lo high credit quality firms and institutions.

Liquidity risk —the Foundation retains a cash balance at afi times which is sufficient to meet the short-term

liabilities and expected items of expenditure. The ma]ority of the invesbnent portfolio, EI3,510,435

(2016:511L300,267) are invested in listed equities which are readily convertible to cash.

Interest rate and cash flow risk —the Foundation is able to place surplus funds in short-term deposit

accounts with Its bankers.

The Trustees determined that there sre no signiTicsnt non-finencial risks. The Foundation follows the same

poflcies and procedures as AP Holdings and Its subsidiaries.

Plans for the future

The Foundation plans to continue extending grants to the existing beneflciaries in 2016. Donations will continue

to be focused on providing education opportunities for the young in less developed countries.

Independentauditors

A resolution to reappoint PrlcewaterhouseCoopers LLP as auditors to the Foundation will be proposed at the

next Trustees' meeting.

Page 0

'THE ARISAIG PARTNERS FOUNDATION

TRUSTEES' REPORT (continued)FOR THE YEAR ENDED 31 DECEIIIBER 2017

Statement of Trustees' responsibilities

The Trustees are responsible for preparing the Trustees' Annual Report snd the tlnancial statements in

accordance with applicable lsw snd United Kingdom Accounting Standards (United Kingdom Generally Accepted

Accounting Practice).

The law applicable to chaditles in England and Wales requires the trustees to prepare financial statements for eachfinancial year which give a true and fair view of the state of affairs of the Foundation snd of the incoming resources

and application of resources of the Foundation for that period.

In preparing these financial statements, the Trustees are required to:

~ select suitable accounting policies and then apply them consistently;

~ observe the methods and principlss In the Charities SORP;

~ make judgements and estimates that are reasonable and prudent;

~ state whether applicable accounting standards, comprising FRS 102, have been followed, subject to any

material departures disclosed snd explained in the financial statemenls; and

~ prepare the financial statements on the going concern basis unless it is Inappropriate to presume that the

Foundation will continue in business

The Trustees ers responsible for keeping proper accounting records that disclose with reasonable accuracy at any

time the tinancisl position of the Foundation and enable them to ensure that the financial statements comply with

the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and Ihe provisions of the Trust deed.

They are also responsible for safeguarding the assets of the Foundation and hence for taking reasonable steps for

the prevention snd detecfi f fraud and other irregularities.

This o was spp the Trustees on )1 October 2018 and signed on their behalf by:

Re scca Jane LewisTrusts e

Page 10


Independent auditors' report to the trustees ofThe ArisaigPartners Foundation

Report on the audit of the financial statements

Opinion

In our opinion, The Arisaig Partners Foundation's flnancial statements (the "flnsncial statements");

~ jive a true and fair view of thestate of the charity's affairs as at Si December sory and of its incoming resources and

application of resources, and cash flows, for the year then endetb

~ have been properly preparnl in accordance with United Kingdom Generally Accepted Accounting Practice (United

Kingdom Accounting Standards, comprising PRS ioa "The Nnandal Reporting Standard applicable in the UK and

Republic of Ireland", and applicable law); snd

~ have been prepamd in accordance with the requirements of the Charities Act noir and Regulation 8 of The Chariities

(Accounts and Reports) Regulations eoog).

We have audited the flnanrial statements, included within the Annual Report (the "Annual Report" ), which comprise: the

balance sheet as at Si December soifn the statement of flnancial sctiviues for the year then ended, cash flow statement for the

year then ended; aud the notes to the finanrisl statements which include a summary of the significaat accounting policies.

Basis for opinion

We conducted our audit in accordance with International Standards on Audiung (UIO ("ISAs (UK)") snd applicable law. Our

responsibiTities under ISAs (UK) are further described in the Auditors' responsibiflities for the audit of the financial statements

section of our rcport. We believe that the audit evidence we have obtained is suffirient and appnipriate to pmvide a basis for our

opinion.

Independence

We remained independent of the

charity

i accordance with the ethical requirements that are relevant to our audit of the

financitd statements in the UK, which inriudes the PRC's Ethical Standard and we have fulfilled our other ethical

responsibilities in accordance with these requirements.

Conc) unions relating to going concern

We have nothing to report in respect of the following matters in relation to which ISAs (UK) require us to report to you when:

~ the Trustees' use of the going concern basis of accounting iu the preparation of the financial statements is not

appropriate; or

~ the Trustees have not disclosed in tbc financial statements any identifie material uncertainties that may cast

significant doubt about the charity's ability to continue to adopt the going concern basis of accounting for a period

of at least twelve months from thc date when the financial statements sre authorised for issue.

However, because not afl future events or conditions can be predicted, this statement is not a guarantee as to the charity's ability

to continue ss agoing concern.

Reporting on other information

The other information comprises afl of the information in the Annual Report other than the financial statements and our

auditors' report thereon. The Trustees are responsible for the other information. Our opinion an the financial statements does

not cover the other information and, accordingly, wc do not express an audit opinion or, except to the extent otherwise explicitly

stated in this report, any form of assurance thereon.

In connection with our audit of the financial statnnents, our responsibility is to read the other information and, in doing so,

consider whether the other information is nmteriaUy Inconristent with the finanrial statements or our knowledge obtained in

the audit, or othcrwisc appears tobe materisfly misstated. Ifwe identify an apparent material inconsistency or material

misstatement, we are required to perform pmcedures to conclude whether there is a material misstatement of the financial

statements ore material misstatcmeat of the other information. If, based on the work we have performed. we conclude that

there is s material misstatement of this other information, we are required to report that fact. We have nothing to report based

an these responsibilities.

Based on the responsibiflties described above and our work undertaken in the course of the audit, ISAs (UK) require us also to

report certain opinions and matters as described below.

Page 11


Trustees'Report

Under the Charities Act aon we are required to report to you if, in our opinion the information given in the Trustees' Annual

Report is inconsistent in any material respect with the gnancial statements. We have no exceptions to report arising from this

responsibility.

Responsibilities for the Rnanoial statements and the audit

Responsibilities of the Tl ustees for the/Innncinl statements

As explained more fully in thc Trustees' Responsibilities Statement setout an page to, the Trustees are responsible for the

preparation of the ffnsncial stetemeats in accordance with the applicable framework and for being satisfied that they give a trueand (ait view. The Trustees are also responsible for such internal control as they determine is necessary to enable thepreparation of financial statements that are free fram material misstatement, whether due to fraud or ermr.

In preparing the Bnsncial statements, the Trustees sre responuble for assessing the charity's ability to continue as a going

concern, disclosing as applicable, rnatter related to going concern snd using the yung concern basis of accounting unless theTrustms either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

A udiiors' responsibilities for the audit of the financial siniements

We are eligible to act and have been appointed as auditors under section i44 of the Charities Act sou and report in accordance

mth the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the ffnencial statements as a whole are free from material

misstatement, whether due to fraud or error, and to issue sn auditors' report that inriudes our opinion. Reasonable assurance is

a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (URI wig always detect amaterial misstatement when it exists. Mimtatem ants can arise from fraud or error and are considered material if, individually orin the aggregate, they could reasonably be expected to inffuence the economic decisions of users taken on the basis of these

financial statements.

A further description ofour responsibiTities for the audit of the Bnancisl statements is locatul on the Pinanrial ReportingCouncil's wcbsite at: www frcorguk/audltorarcsponsibgtff es. This description forms part of our auditors' report.

Use of this report

This report, including the opinions, hss been prepared for snd only for the charity's Trustees ss e body in accordance with

section i44 of the Charities Act son and regulations made under section tg4 of that Act (Pert 4 ofThe Charities (Accounts end

Rcporisl Regulations aoog) and for no other purpose. We do not, in giving these opinions, accept or assume responsibility forany other purpose or to sny other person to whom this report is shown or into whose hands it may come save when expressly

agreed by our prior consent in writing.

Other required reportingCharities Act nots, exception reporting

Under the Charities Act aort we are required to report to you if, in our opinion:

we have not received all the information and explanations we require for our audit; or

sufficient accounting records have not been kept by the charity; or

the financial statements are not in agreement with the accounting records and returns.

We have no exceptions to report arising from this responsibility.

PricewaterhouseCoopers LLPChartered Accountants and Statutory AuditorsCardif

October aoig

Page 12


STATEMENT OF FINANCIAL ACTIVITIESFOR THE YEAR ENDED 31 DECEMBER 2017

Income from donations and legaciesNote

20378

20168

Donations and LegaciesInvestment income

2 972,9$33 153,823

2,442,674150,561

Total 1,126,806 2,593,235

Expenditure on:Raising funds: Investment management expensesCharitable activities

Total

10,693 8,1934 516,099 389,662

528,792 397,855

Net Income before investment gainsNet gains on Investments

Net movement in funds

10 2,358,324 1,513,523

2,956&338 3,706,903

Reconcglatlon of funds:

Total funds brought forward

Total funds carried forward

12,905,458 9,196,555

15,861.796 12,905,458

All of the funds of the Foundation sre unrestricted.

The notes on pages 16 to 22 form part of these financial statements.

Page 13


BALANCESHEETAS AT 31 DECEMBER 2017

Fixed assetsInvestments

Current assetsDebtors

Cash and cash equivalents

Creditors: amounts falling due within oneyear

Net current assets

Net assets

The funds of ths charity

Unrestricted

Note

10

1115

12

13

6,793850,833

857,626

(11,748)

2017

15,015,918

845,878

15,861,796

15,881,796

11,007394,268

405,275

(10,1 15)

20166

12,510,298

395,160

12,905,458

12,905,458

Total charity funds 15,881,796 12,905,458

The 6 ial ststemen o pages 13 to 22 were approved by the Trustees on () October 2018 snd signed on

their II by:

Rebecca Jane Lewis

Page 14


CASH FLOW STATEMENTFOR THE YEAR ENDED 31 DECEMBER 2017

Cash flows from operating activities

Net cash provided by operating activities

Note

14

20172

302,742

20185

467,652

Cash flows from investing activitiesDividends from InvestmentsInterest IncomePurchase of investments

Net cash generated from/(used in) investing activities

151,690 150,56126133

~476,616

153,823 (326,057)

Change In cash and cash equivalents In the year

Cash and cash equivalents brought forward

456,565394,268

141,595252,673

Cash snd cash equivalents carried forward 15 850,833 394,266

The notes on pages 16 to 22 form part of these financial statements.

Page 15


NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2017

1. ACCOUNTING POLICIES

1.1 Basis of preparation of financial statements

The financial statements have been prepared on a going concern basis and under the historical

cost convention, with the excepbon of the revaluation of Investments which sre Included on smarket value basis. The financial statements have been prepared in accordance with the

Statement of Recommended Pracbce: Accounting and RepoNng by Charities 2015 (SORP

2015), the Financial Reporting Standard applicable In the United Kingdom and Republic of

Ireland (FRS 102) and Charities Act 2011, using consistengy applied accounting policies.

1.2 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in

furtherance of the general ob)ectives of the Foundabon and which have not been designated for

other purposes.

1.3 Income from donations snd legacies

Donations race)ved in cash are recognised as income when the Foundation's right to receive payment

Is established.

Donations in specie sre recognised on the trade date, being the date the Foundation legally received

the rights to the donated shares. This income Is valued at fair value based on the quoted market price

on the trade date.

1.4 Expenditure

Support costs are those costs incurred dlrecgy in support of expenditure on ths obJects of the

Foundation. Governance costs are those incurred in connecgon with administration of the

Foundation and compliance with constitutional snd statutory requirements. Support costs are

recorded on sn accruals basis.

Expenditure on raising funds sre costs incurred in attracting voluntary income and Includes fees of

the investment manager which are accounted for on an accrusls basis,

Charitable activities costs are costs incurred on the Foundation's educational operations, Including

support costs and costs relating to the governance of the Foundation apportioned to charitable

activities. Support costs are recognised as noted above. Costs of grants made by the Foundation

are recognised in full when the grant is approved by the Trustees.

1.5 Investments

Fixed asset investments are a form of financial instrument and are Initially recognised at cost

and subsequently measured at fair value et the Balance sheet date. The fair value of

investments traded in active markets is based on quoted market prices at the close of trading on Ihe

reporting date. Investment gains snd losses, whether realised or unrealised, sre combined and

shown in Ihe heading 'net gains on investments' in the Statement of financial activiUes.

Page 16


NOTES TO THE FINANCIAL STATEMENTS (continued)FOR THE YEAR ENDED 31 DECEMBER 2017

ACCOUNTING POLICIES (conginued)

1.6 Dividend receivable

Oivldends on financial assets sre recognised in the Statement of financial activities when theFoundation's right to receive payment is established.

1.7 Debtors

Trade and other debtors are recognised at the settlement amount. Prepayments are valued st theamount prepaid net of any trade discounts due.

1.6 Cash and cash equivalents

Cash at bank and In hand includes cash and short term highly liquid investments with a short

maturity of three months or less from the date of acquisition or opening of the deposit or similar

account.

1.0 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a pastevent, it is probable that e transfer of economic benefit will be required In settlement, and thsamount of the settlement csn be estimated reliably. Llabigtlss are recognised at the amount that theFoundation anticipates it will pay to settle the debt or the amount it has received as advancedpayments for the goods or services it must provide. Provisions sre measured at the best estimate ofthe amounts required to settle the obligaUon. Where the effect of the time value of money ismaterial, the provision Is based on the present value Of those amounts, discounted at the pre-taxdiscount rate that reflects the risks specMc to the liability. The unwinding of the discount ls

recognised within interest payable and similar charges.

1.10 Interest income

Interest Income is recognised using the effective interest method.

1.11 Foreign currencies

Functional and presentation currency

The Foundation's funcUonal and presentational currency is GBP. The Trustees determined thefunctional currency of the Foundation to be GBP. The Trustees evaluated, among other factors, In

particular the regulatory and economic environment of the Foundagon.

Transactions and balances

Monetary assets and liabilities denominated in foreign currencies are translated into sterling et ratesof exchange ruling at the balance sheet date.

Transactions In foreign currencies are translated into sterling at the rate ruling on the date of thstransaction.

Exchange gains and losses are recognised in the Statement of financial ecUvities and within theyear to which they relate.

Page 17



2. DONATIONS AND LEGACIES

Cash donations from AP HoldingsDonation in specie from AP Holdings

20178

823,687149 296

2016

867,1411 575 533

972 983 2 442 674

3. INVESTMENT INCOME

Dividend incomeInterest income

20178

151,6902 133

20168

150,561

153 823 150 561

4. CHARITABLE ACTIVITIES

Charitable actlvi6es comprise:Support costs (note 5)Activities costs (note 6)

20178

56,978459 121

20165

(93,565)483 318

516 099 389 662

5. SUPPORT CO8TS

Net exchange loss/(gain) on cashAuditors' remuneration - statutory audit (note 8)Bank chargesTraveling expenses (note 7)SubtotalOther support costs

20178

44,7596,6701,189

628

20166

(105,067)6,8082,116

93753,246 (95,206)3 732 1 550

58 978 93 656

Page 18



6. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTMTIES BY ACTIVITY

Education and trainingCommunity

Grant offunding of

activities2017

426,04533 078

Supportcosts

20176

58,978

Total

2017f

483,02333 078

Total

20168

318,64771 015

459 121 56 978 516 099 389 662

2017 20168 6

Green Gscko Project

Street Child Africa

ACE Africa

Child's Dream Foundation

Mercy Centre Preschool

Magic Bus India

Virlanle Foundation

Temple Garden Foundation

The Akanksha Foundation

The Cooperation for Advancement Rehabilitation and Education

Singapore Management University

Ogrer grants

93,054 101,17961,751 55,17268,902 34,66251,399 49,521

38,239 39,977

35,197 32,90233,500 32,06119,552 18,821

19,507 16,43112,000 12,000

2,944 2,64016,937

426,045 412,303

During the year 2016, 67,602 within 'other grants' in the above table was paid to an individual benefidary.All remaining grants paid during the year 2017 and year 2016 were paid to institutional bene8ciarles.

Community grants

The Arisalg Community Councifs Fund

Other grants

All grants ln the above table were paid to institutional bens6ciades.

2017 20166 6

26,000 25,000kkr76 46

33416 71015

Page 19



7. TRUSTEES' REMUNERATION AND EXPENSES

During the year, no Trustees received any remuneration (2016 - ENIL).

One Trustee received reimbursement of travel expenses for site visits to banegclarles' locationsamounting to E628 (2016 - 2937).

8. AUDITORS' REMUNERATION

The Auditors' remuneration amounts to en audit fee of 86,670 (2016 - 86,808).

9. STAFF COSTS

The Foundation has no employees other then Ihe Trustees, who did not receive any remuneration (2016-FNIL).

10. .INVESTMENTS

Market valueAt 1 January 2017AdditionsForeign exchange lossRevaluations

Listedsecurities

20176

11,300,267

(975,984)3 186 152

Unlistedsecurities

20178

1,210,031149,296(40,077)186 233

Total

20178

12,510,298149,296

(1,016,061)3 372385

Investments at market value comprise:

13 510 435 1 505 483 15 015 918

Listed investmentsUnlisted investments

UK2017

2,053,111

Overseas2017

211,457,324

1 505 483

Total Total2017 2016

8 613,510,435 11,300,267

1 505483 1 2100312 053 111 12 962 807 1 015 918 12 510 98

As at 31 December 2017 and 31 December 2016, 90'/s of the investments were listed investments and10% were unlisted Investments.

Valuation

The historical cost of the investments above is 88,747, 154 (2016 - 86,807,525).

The net revaluation gains comprise all Increases and decreases in the market value of investmentsheld at any time during the year.

Material Investments

Investments included in the above with a market value greater than 5'/s of the total portfolio'smarket value at 31 December are as follows:

Arlsalg Asia Consumer Fund LimitedFindlay Park US Smaller Companies Fund

2017

5,333,410714 021

20166

3,824,965635 425

6 047 431 4 460 410

Page 20



11. DEBTORS

Dividend receivable

20176

6 793

2016

11 007

12. CREDITORS: Amounts falling dus within one year

Other creditors

20176

11 748

20168

10 115

13. STATEMENT OF FUNDS

General Funds - a9 funds

Broughtforward

20176

12 905 458

Income

2017f

1 126 806

Expenditure Investment CarriedGains Forward2017 2017

8 62 356 324 15861 796

14. NET CASH PROVIDED BY OPERATING ACTIVITIES

20176

2016f

Net income for the year (as per Statement of financial activities)

Ad)ustment for:

Net gains on investment (including foreign exchange differences)

Donations received in specie

Dividends from investments

Interest incomeDecrease/(increase) in debtors

increase In creditors

Net cash provided by operating activBes

(1,513,523)

(1,575,533)

(150,561)

(2,356,324)

(149,296)(151,6901

(2,133)4,214

1,633(3,002)

1,368

302,742 467,652

2,958,338 3,708,903

15. CASH AND CASH EQUIVALENTS

Cash at bank

20176

850,833

20166

394,268

Page 21



16. RELATED PARTY TRANSACTIONS

One trustee received reimbursement of travel expenses for site visits to beneficiaries' location amounting

to F628 (2016- f937).

AP Holdings

The Arisaig Partners Foundation received donations in the amount of f972,983 (2016: 52,442,674) from

AP Holdings.

During the year ended 31 December 2017, three trustees of the Foundation, James Michael Alexsndroff,

Lindsay William Ernest Cooper, snd John Torquil McAlplne resigned on 1 November 2017, were alsodirectors of AP Holdings.

Out of the three trustees appointed on 1 November 2017, Rebecca Jane Lewis resigned as director of AP

Holdings on 28 December 2017, and Chua Ches Sang was appointed as director of AP Holdings on

29 December 2017. As st 31 December 2017, only one trustee, Chua Chse Seng (2016: three trustees,James Michael Alexandroff, Lindsay William Ernest Cooper, snd John Torqull McAlplne) was also adirector of AP Holdings.

AP fyfsuritius and AP Asia

The following Investments held by the Foundation are invsstmenls in funds managed or sub managed

by AP Mauritius and AP Asia. Lindsay William Ernest Cooper, a trustee who resigned on 1 November

2017, is a director of AP Mauritius and AP Asia. Chua Ches Sang, a trustee appointed on 1 November

2017, is a director of AP Asia.

Arisaig Asia Consumer Fund Limited

Arisaig Global Emerging Markets Consumer Fund Limited

Arisaig Africa Consumer Fund LimitedArlsaig Latin America Consumer Fund Limited

20175

5,333,410434,600366,324261,265

2016f

3,824,885361,988198,435225,765

For the year ended 31 December 2017, there was a recharge of GBP62 (2016: nil) for reimbursement of

other support costs from AP Asia, of which Llndsay William Ernest Cooper and Chua Ches Seng eredirectors.

17. TAXATION

The Foundation is a registered charity and tax exemption applies to the income arising from and

expended on charitable activities and to sny investment income and gains.

1S. SUBSEQUENT EVENT

Prlsca Lim Qui Ttang retired as a trustee on 13 September 2018.

Page 22

arisaig partners 31 2017

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