Expenditure review

28 May 2003

The Wellcome Trust has begun a review of its future expenditure plans, following a significant fall in the value of its asset base. The review, scheduled to be completed during the summer of 2003, will examine options for future funding and will not impact on any existing funding liabilities already agreed by the Trust.

In common with all endowed charities, the Wellcome Trust has been affected by the significant and prolonged fall in stock markets around the world. Its asset base has fallen from a peak of just under £15 billion to a figure of £9.3 billion in September 2002. The Trust's financial planning has been developed to 'smooth' the impact of market volatility, but the sustained drop over the past few years has inevitably exerted a downward pressure on the Trust's proposed expenditure plans.

The Trust has taken a number of steps to moderate its funding plans for 2002/2003. In the coming months, further work will be carried out to develop a revised spending plan for the following financial year, 2003/2004. The Trust has also identified significant operational savings and will continue to explore ways in which it can further enhance its business efficiency.

The outcome of the review will be a prudent expenditure plan that enables the Trust to continue making a major contribution of hundreds of millions of pounds a year to biomedical research and its application, while also maintaining the long-term growth and sustainability of the Trust. More details will be announced when the review has been completed.