The Wales Pension Partnership Joint Governance Committee met to discuss a host authority update, a risk register review, annual policy reviews, an operator update, performance reports, and a private markets update. The committee approved amendments to the WPP Risk Register and the updated Risk Policy. They also received updates on various investment programmes and performance reports for the WPP's sub-funds.

Host Authority Update

The Joint Governance Committee (JGC) received an update from the host authority on several key areas. These included governance, ongoing establishment, operator services, communications and reporting, training and meetings, and resources, budget and fees.

The Wales Pension Partnership (WPP) Business Plan for 2025/26, which was approved by the JGC on 12 March 2025 and revised on 4 June 2025, was a focal point of the update. The update highlighted WPP's progress between 1 April 2025 and 30 June 2025 in relation to the workplan, budget and investments.

Key areas of development included:

• Project Snowdon / WPP Investment Management Company (IM Co)
• The 2024/25 Annual Report
• Policy Reviews for the Risk Policy and Whistleblowing Policy
• The Legal Services Provider procurement process
• The Real Estate Investment programme
• Responsible Investment initiatives, such as passive mandates evolution, the All Wales Climate Report (AWCR), the All Wales Impact Report, a stewardship themes review for 2025/26, and the 2024/25 UK Stewardship Report

Priorities for the coming period include Project Snowdon, launching the Real Estate Investment programme, completing and publishing the 2024/25 Annual Report, and submitting the 2024/25 UK Stewardship Code Report.

The committee also heard that as of 31 March 2025, total WPP holdings were £25.8 billion, with £19.4 billion pooled (including £5 billion in passive investments), representing 75% of the total. The value of pooled assets as of 30 June 2025 was also presented, showing a total of £20.069 billion.

Risk Register Q3 2025 Review

The committee approved amendments to the WPP Risk Register, following a quarterly review by the Officer Working Group (OWG). The WPP Risk Register serves to outline key risks, quantify their severity and probability, summarise risk management strategies, and monitor the ongoing significance of these risks.

The review focused on training, resources and communication risks. The sub-group also reviewed risk G.16, relating to Project Snowdon not meeting timescales and delivery capability.

Annual Policy Reviews

The Joint Committee considered the updated Risk Policy and Whistleblowing Policy. The Risk Policy is reflective of WPP's belief that good governance and greater transparency will improve the decision-making process and deliver superior outcomes for WPP stakeholders. The WPP recognises that all WPP Personnel and Providers have a role to play in identifying, understanding, managing and monitoring potential and actual risks facing the WPP.

Two new objectives were added to the Risk Policy:

• To embed the delivery of long-term, sustainable investment outcomes into decision making, through capital allocation, the ongoing scrutiny of asset managers, and the exercise of the rights and responsibilities that arise as asset owners.
• Significant projects may have an additional risk register, containing risks specific to that project. These risk registers are monitored in line with the project governance structure.

The Whistleblowing Policy provides guidance to WPP Personnel and Providers on how to raise concerns should they suspect malpractice. No changes were made to this policy during the review.

Operator Update – Q2 2025 Review

The JGC received a presentation from Waystone Management (UK) Limited (Waystone), WPP's Operator, providing a quarterly review update. The update covered corporate and market updates, fund summary information and an engagement update showing the engagement protocol in place and key meeting dates.

Specific updates were provided on:

• Corporate and Compliance updates
• Relationship Overview
• AUM summary as at 30 June 2025
• Fund changes in relation to the UK Opportunity Equity Fund
• Market updates in relation to Russia / Ukraine and the Middle East
• Oversight Third party monitoring
• Engagement and meeting schedules

Waystone reported that full approval had been given for the creation of the new Investment Company as part of the Government's Fit for the Future consultation¹. Waystone Compliance Solutions continue to work closely with the Pool in preparation of the application for relevant authorisation approvals to the Financial Conduct Authority (FCA).

Performance Reports as at 30 June 2025

The committee reviewed the performance reports for the WPP's sub-funds as at 30 June 2025.

The performance of the sub-funds from inception to date is summarised below:

The report noted that the Global Growth, Sustainable Active Equity, Emerging Markets, UK Opportunities, Multi Asset Credit and Absolute Return Bond funds had underperformed their benchmarks, whereas the Global Opportunities, Global Government Bond and Sterling Credit funds had exceeded their targets. The Global Credit fund met its benchmark gross, but underperformed by 0.2% net.

Private Markets Update – Infrastructure

The committee received a presentation from GCM Grosvenor, WPP's Infrastructure Allocator, providing a progress update on both the Closed-ended and Open-ended programmes launched in 2023.

The Closed-ended program focuses on diversified infrastructure investments across primaries, secondaries, and co-investments in the UK, Europe, and North America. All eight funds are invested in this program.

There are three Open-ended managers:

• IFM: The IFM Global Infrastructure Fund invests in a diversified portfolio of infrastructure assets across the transportation, energy, utilities and digital sectors which seek to deliver stable revenues over the long term.
• CBRE: The CBRE Global Infrastructure Fund invests in assets across digital, transportation, energy transition, and utility infrastructure sectors with highly contracted, cash yielding characteristics.
• Octopus: The Octopus Renewable Sky Fund makes investments in predominantly core, contracted, and cash-yielding renewable and energy transition assets across the UK, Europe, North America, and APAC.

The funds investing in the open-ended program are Cardiff, Gwynedd, Powys, Swansea, and Greater Gwent (Torfaen).

Exclusion of the Public

The public were excluded from the meeting for the consideration of the following items, as the reports contained exempt information as defined in paragraph 14 of Part 4 of Schedule 12A to the Local Government Act 1972², as amended by the Local Government (Access to Information) (Variation) (Wales) Order 2007:

• Robeco Engagement Service Q2 2025 Engagement Report
• Responsible Investment & Climate Risk Reports
• WPP Sub Fund Review
• Wales Pension Partnership Legal Services Provider