The Wales Pension Partnership Joint Governance Committee met on Wednesday, 12 March 2025, to discuss a range of important operational and strategic matters. Key decisions included the approval of the 2025/26 training plan and the 2025-2028 Business Plan, as well as the endorsement of the Wales Pension Partnership's submission to the government regarding the 'Fit for the Future' consultation. The committee also reviewed and approved amendments to the WPP Risk Register.

Host Authority Update

The committee received an update from the host authority on the progress of the Wales Pension Partnership (WPP). This update covered key areas including governance, ongoing establishment, operator services, communications and reporting, training and meetings, and resources, budget, and fees. The progress made in relation to the Workplan, Budget, and Investments sections of the 2024/25 Business Plan was highlighted.

Training Plan 2025/26

The Joint Committee approved the WPP training plan for 2025/26. This plan is designed to ensure that members of the Officers Working Group (OWG) and the Joint Governance Committee (JGC) maintain an appropriate level of knowledge and understanding relevant to their duties within the WPP. The training sessions, to be held quarterly, will cover Product Knowledge, Stewardship, Responsible Investment, and Pooling Consultation & Regulatory Requirements. The committee noted a suggestion to hold the Pooling Consultation & Regulatory Requirements training sooner.

Business Plan 2025-2028

The WPP Business Plan for 2025-2028 was approved by the committee. This plan outlines the WPP's priorities and objectives for the next three years, details its governance structure, policies, and plans, and summarises its financial budget and investment and performance objectives. The plan will be subject to ongoing monitoring and annual review.

Risk Register Q1 2025 Review

The committee reviewed and approved amendments to the WPP Risk Register. The review focused on risks G.1 to G.7 within the Governance and Regulation section, with no significant updates noted for these. However, Risk G.15, concerning the WPP's preparedness for consultation or regulatory changes, was specifically reviewed. Amendments were made to reflect the WPP's proactive actions in response to the 'Fit for the Future' consultation and the establishment of 'Project Snowdon' to meet new requirements.

Operator Update - Q4 2024 Review

Waystone Management (UK) Limited, the WPP's Operator, provided a quarterly update covering corporate and compliance matters, an overview of the relationship, fund values as of 31 December 2024, key achievements, fund changes, market updates, third-party monitoring, and the engagement and meeting schedule.

Performance Reports as at 31 December 2024

The committee received and noted the performance reports for the WPP's sub-funds as of 31 December 2024. The reports detailed the performance of various equity and fixed income sub-funds against their respective benchmarks. Several sub-funds underperformed their benchmarks, including the Global Growth Equity Fund and the Sustainable Active Equity Fund. The Global Opportunities Equity Fund and the Global Government Bond Fund outperformed their benchmarks. The Multi-Asset Credit and Absolute Return Bond funds did not meet their targets, while the Sterling Credit Fund exceeded its target.

Private Markets Update - Private Credit

An update was received from Russell Investments on the Private Credit Investment programme, launched in April 2023. The Global Private Credit Fund aims to provide diversified exposure to specialist strategies, investing in senior and subordinated debt transactions of small to mid-sized companies globally, as well as real estate and infrastructure projects. A total capital commitment of £696 million has been made across seven participating funds. The update highlighted the strong deployment of capital for Vintage I and provided details on the portfolio breakdown, including geographic exposure and impact investments.

LGPS: 'Fit for the Future' - WPP's Submission to Government

The committee approved the WPP's submission to the government regarding the 'LGPS: Fit for the Future' consultation. This submission outlines the WPP's proposal to retain its status as a standalone investment pool for Wales and to establish a Financial Conduct Authority (FCA)-authorised investment management company (IM Co). This plan aims to meet the government's proposed pooling model requirements, including the transfer of all assets, including legacy assets, to the IM Co's management. The submission argues that this approach is optimal for Wales, considering its unique characteristics and the need to promote local investment and economic growth. The committee discussed the proposed governance structure for the new company, noting that discussions with officers, including Monitoring Officers, were ongoing.

Responsible Investment & Climate Risk Reports

The committee received and noted the Responsible Investment and Climate Risk reports for Quarter 4 2024, covering the Sterling Credit, Global Credit, and Global Government Bond sub-funds. These reports assessed ESG and climate risk metrics and identified key actions for the WPP.

Robeco Engagement Service - Q4 2024 Engagement Report

The committee received and noted the Robeco Engagement Report for Q4 2024.