18. Financial instruments
Group Group Charity Charity
2023 2022 2023 2022
Categories of financial instruments £'000 £'000 £'000 £'000
Financial assets
Fixed asset investments 53,598 99,288 53,598 99,288
Current asset investments 32,368 35,366 32,368 35,366
85,966 134,654 85,966 134,654
Cash at bank and in hand 9,731 8,238 8,202 2,822
Debtors 93,879 84,406 95,223 88,291
189,576 227,298 189,391 225,767
Financial liabilities
Grants committed not yet paid 164,577 171,926 164,577 171,926
Trade creditors, other creditors and accruals 12,251 13,002 11,958 11,003
176,828 184,928 176,535 182,929
Risk management
The Group is exposed through its operations and investments to the following financial risks:
• Market risk
• Foreign currency exchange rate risk
• Credit risk
• Liquidity risk
Market risk, including foreign currency exchange rate risk
Market risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market prices. Market prices are influenced by movements in
interest rates, currency movements and other market factors. The Charity manages this risk by employing professional investment managers and aims to hold a
widely diversified portfolio of investments.
98% of our investments are held in sterling, with the remaining balance held in foreign currencies. We therefore have limited exposure to any risk of changes in
foreign currency rates.
Credit risk
Credit risk in the Charity's investment portfolio as at 31 December 2023 and 31 December 2022 relates to the risk that funds in which the Charity has an investment
would fail to process a request for redemption of the investment. The Charity manages this risk by employing professional investment managers and holding a
widely diversified portfolio of investments ensuring that risks taken are carefully managed, monitored and controlled.
The nature of the Charity's non-investment assets and customer profile means that the Charity is not exposed to significant credit risk on these assets.
Liquidity risk
The Charity's liquidity policy is framed to ensure there is no substantive liquidity risk. Under the policy, the Charity's target is to retain £70 million in investments
and cash which are capable of being liquidated at relatively short notice to ensure cash is available to meet liabilities as they arise. Within the £70 million target
the Charity will also hold cash and other liquid funds to meet regular cash flow requirements.
110
Environmental, social
and governance review
Financial review
Strategic report
Overview
Financial statements
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