The Wales Pension Partnership Joint Governance Committee met on Wednesday, 13 March 2024, to review the partnership's performance, policies, and future plans. Key decisions included the approval of the 2024/25 training plan and the 2024-2027 business plan, as well as amendments to the risk register and the communication policy.

Host Authority Update

The committee received an update on the progress of the Wales Pension Partnership (WPP) across several key areas, including governance, ongoing establishment, operator services, communications and reporting, training and meetings, and resources, budget, and fees. Councillor Chris Weaver, Chair of the Joint Governance Committee, noted that attendance records for training sessions were maintained. The update was received unanimously.

WPP Training Plan - 2024/25

The Joint Committee approved the WPP Training Plan for 2024/25. This plan is designed to supplement existing training provided by Constituent Authorities and will focus on topics relevant to the WPP's pooling activities. The training sessions, held quarterly, will cover product knowledge and cyber security, policies, responsible investment, and market understanding and regulatory requirements. The plan is primarily aimed at members of the Officers Working Group (OWG) and the Joint Governance Committee (JGC), but may be extended to Pension Committee members and Pension Board representatives.

WPP Business Plan 2024 - 2027

The committee agreed to the WPP Business Plan for 2024-2027, which will be sent to all eight Constituent Authorities for their written approval. This plan, drafted in accordance with Section 6 of the Inter Authority Agreement, outlines the WPP's background, governance structure, priorities, objectives, financial budget, and investment and performance objectives for the next three years. The plan will be continuously monitored and formally reviewed annually.

Risk Register Q1 2024 Review

Amendments to the WPP Risk Register were approved following a quarterly review. The register outlines the WPP's key risks, quantifies their severity and probability, summarises risk management strategies, and monitors their ongoing significance. The review focused on risks G.1 to G.7 within the Governance and Regulation section, as well as risks G.12 and G.15. The next review in Q2 2024 will cover the remaining risks in the Governance & Regulation Risks section.

Annual Policy Reviews

The committee approved the updated Communication Policy. This policy, originally approved in December 2019 and reviewed in March 2021 and March 2022, has been updated to reflect the WPP's commitment to sustainable and local investment and the Future Generations Act 2015. The Governance Matrix was also reviewed, with no changes made. The updated Communication Policy will be published on the WPP website.

Operator Update - Q4 2023 Review

Waystone Management (UK) Limited, the WPP's Operator, provided a presentation on the partnership's progress for Quarter 4, 2023. Updates included market news regarding the acquisition of Link Fund Solutions, a summary of Assets Under Management (AUM) as of 31 December 2023, fund changes, and market updates concerning Russia/Ukraine and the Middle East. The committee also received a corporate update and engagement report.

Performance Reports as at 31 December 2023

The committee received a presentation on the performance reports for the WPP's sub-funds as of 31 December 2023. Several sub-funds outperformed their respective benchmarks, including the Global Opportunities Equity Fund (outperforming by 1.1% gross / 0.8% net) and the Global Government Bond Fund (outperforming by 1.3% gross / 1.0% net). The Multi Asset Credit Fund and Absolute Return Bond Fund did not meet their targets, while the Sterling Credit Fund exceeded its target. The committee noted the performance reports for the following sub-funds: Global Opportunities Equity Fund, Global Growth Equity Fund, Sustainable Active Equity Fund, Emerging Markets Equity Fund, UK Opportunities Equity Fund, Global Government Bond Fund, Global Credit Fund, Multi Asset Credit Fund, and Absolute Return Bond Fund.

Private Markets Update - Infrastructure

An update was received from GCM Grosvenor on the Private Market investment programmes for closed-ended and open-ended infrastructure. The closed-ended programme, focused on diversified infrastructure investments across the UK, Europe, and North America, has seen £166 million committed and £77 million invested to date. For the open-ended programmes, IFM has committed £221 million with no investments made, CBRE has committed £88 million with no investments made, and Octopus has committed £133 million with £67 million invested to date.

Robeco Engagement Service - Q4 2023 Engagement Report

The committee received the Engagement Report for Q4 2023, covering the period ending 31 December 2023. This report was considered in private session due to its exempt nature.

Responsible Investment & Climate Risk Reports

The Joint Committee received the Responsible Investment and Climate Risk reports for Quarter 4, 2023, for the UK Credit, Global Credit, and Global Government Bond funds. These reports examined ESG and climate risk metrics and identified key actions for the WPP. This item was also considered in private session.

WPP Operator Procurement Recommendation Report

A report regarding the Operator contract procurement recommendation was considered. This recommendation will be sent to all eight constituent authorities for written approval, in accordance with Schedule 2 of the Inter Authority Agreement. This item was also considered in private session.

Global Securities Lending Review as at 31 December 2023

A report on the Global Securities Lending Review as at 31 December 2023 was received. This item was considered in private session due to its exempt nature.