Agenda, decisions and draft minutes

To elect Chair for 2025 / 2026

DECISION:

To re-elect Councillor Elin Hywel as Chair of this Committee for 2025/26

It was resolved to re-elect Councillor Elin Hywel as Chair of this Committee for 2025/26

To elect Vice Chair for 2025 / 2026

DECISION

To elect Councillor John Pughe Roberts as Vice-Chair of this Committee for 2025/26

It was resolved to elect Councillor John Pughe Roberts as Vice-chair of this Committee for 2025/26

To receive any apologies for absence

Apologies were received from Councillor Stephen Churchman, Councillor John Brynmor Hughes and Councillor Elin Hywel

To receive any declaration of personal interest

None to note

To note any items which are urgent business in the opinion of the Chairman so that they may be considered

None to note

The Chairman shall propose that the minutes of the meeting of this committee held on 17^th March 2025 to be signed as a true record

The Chair accepted the minutes of the meeting held on 17 March 2025 as a true record.

To consider and approve the Business Plan.

DECISION

To approve the Revised Welsh Pension Partnership Business Plan 2025 - 2028

A report was submitted by the Investment Manager asking the Committee to approve the Wales Pension Partnership's revised Business Plan. It was reported that the Business Plan had been approved by the Joint Governance Committee in March 2025, but had now been amended to highlight the Project Snowdon enabling and design costs, where approval was received at its meeting on 4 June 2025. It was elaborated that the Plan would require approval from the individual Committees within the Partnership.

It was noted that the Partnership created an annual Business Plan for a three-year period and the main purpose was:

•           To explain the background and governance structure

•           To highlight the priorities and objectives over the next three years

•           To present the Partnership's plans and policies

•           To outline the financial budget

•           To summarise the WPP's investments and performance objectives

The members thanked the officer for the report.

It was proposed and seconded to approve the Business Plan.

RESOLVED

To approve the Wales Pension Partnership Revised Business Plan 2025-2028

To consider the report and recommend to the Council (at its meeting on 3 July 2025):

1. Note the WPP Fit for the Future Business Case (Appendix 3, Appendix 4 and section 4)

2. Approve the formation of a corporate entity wholly owned by the WPP Administering Authorities (AAs) to be the WPP Investment Management Company (IMCo.) and all other actions necessary to submit an application to the Financial Conduct Authority (FCA) for the authorisation of the IMCo. including but not limited to the selection and recruitment of Senior Management Function (SMF) roles as required by the FCA and the preparation and submission of the application to the FCA. (Section 5)

3. Approve the revised WPP Business Plan & budget 2025/28 which includes design/enabling costs for Project Snowdon (Appendix 5 and Section 6)

4. Delegate the S151 Officer in consultation with The Pension Fund Committee Chair to progress Project Snowdon alongside WPP Administering Authorities (AAs) in line with the Government timetable within the approved budget.

5. Delegate the final approval of the final formal documentation required for IMCo. to be operational, described as “Go Live Work” as outlined in Section 7, to The Pension Fund Committee to give effect to The WPP Fit for the Future Business Case.

DECISION:

To accept the report.

To recommend to the Full Council (at its meeting on 3rd July 2025) to:

1.     Note the WPP Fit for the Future Business Case (Appendix 3, Appendix 4 and section 4) 

2.     Approve the formation of a corporate entity wholly owned by the WPP Administering Authorities to be the WPP Investment Management Company (IMCo.) and all other actions necessary to submit an application to the Financial Conduct Authority (FCA) for the authorisation of the IMCo. including but not limited to the selection and recruitment of Senior Management Function (SMF) roles as required by the FCA and the preparation and submission of the application to the FCA.  (Section 5)

3.     Approve the revised WPP Business Plan & budget 2025/28 which includes design/enabling costs for Project Snowdon (Appendix 5 and Section 6) 5 - 10 11 - 27 28 - 124

4.     Delegate the S151 Officer in consultation with The Pension Fund Committee Chair to progress Project Snowdon alongside WPP Administering Authorities (AAs) in line with the Government timetable within the approved budget.

5.     Delegate the final approval of the final formal documentation required for IMCo. to be operational, described as “Go Live Work” as outlined in Section 7, to the Pension Fund Committee to give effect to The WPP Fit for the Future Business Case. 

A joint report was submitted by the Head of Finance and the Investment Manager.

Members were reminded, in accordance with the requirements of the 'Fit for the Future' consultation launched in November 2024, that the eight LGPS pools established nationally were invited to present a business case which outlined how they would meet the Government's required criteria. It was noted that the Government had outlined a range of proposals to strengthen the work of managing LGPS investments in three key fields, which included reforming LGPS assets funds, promoting LGPS investment in local areas and regions in the UK, and strengthening the governance of the LGPS Administering Authorities and the LGPS funds.

During the consultation, the basic question was raised as to whether the WPP would consider establishing an independent company or join with another LGPS in England. It was reported that the WPP had concluded that what was best for all direct and wider stakeholders in Wales was to go forward to build its own IMCo. and retain its independence as a pool with the eight LGPSs in Wales as the sole stakeholders and clients.

The WPP business case was submitted to the Government in February 2025 and in April 2025, the encouraging news was received that the Government had approved the WPP business case, with Government officers requesting that the WPP continued to implement its plans and continued to inform the Government of the progress. It was noted that two pools in England, Brunel and ACCESS, had been unsuccessful in presenting their business case and the basic AA had now invited them to try to join another pool.

It was elaborated, in order to satisfy the Government's challenging deadlines, that an FCA application would need to be presented to establish a WPP IMCo. soon. It was noted that the FCA requirements stated that the entity applying for the authority (i.e. WPP IMCo.) had to be incorporated before presenting the FCA application and the holders of some Senior Management (SMF) posts, including the Chief Executive Officer, had to be identified and included in the application.

Reference was made to the next steps of the process which included establishing a Board with a representation of shareholders (which would replace the Joint Committee) and during the summer 2025, there would be a need to register the company, ensuring compliance with the FCA requirements.

It was considered that forming a WPP IMCo. would be a once in a generation opportunity to create an independent LGPS Investment Company for the benefit of all stakeholders of the 22 local authorities in Wales, which would continue to invest for its members and protect LGPS pensions, and also have the opportunity to continue with its role investing locally across Wales and the rest of the UK, working with Councils, Corporate Joint Committees, the Development Bank of Wales, the British Business Bank and the Welsh Government, promoting economic growth, providing employment, protecting clean energy and improving the country's wider infrastructure, for the benefit of the people of Wales.  ...  view the full minutes text for item 8.

To consider and receive the information.

DECISION:

To accept and note the information.

A verbal update was received from Councillor Iwan Huws who had attended the conference in May 2025.

It was reported that pooling was the main matter under discussion in the conference, which focused on how the pooling of local authority funds continued to evolve and what this would mean for the future. It was noted that the timing was interesting given the response to the Fit for the Future Consultation. It was highlighted that the Business Wales case received significant praise and everyone who was associated with the work was congratulated, detailing the good collaboration. It was noted that the conference had been a good opportunity for attendees to network and share best practices, as well as a good educational opportunity for members.

RESOLVED

To accept and note the information.

To consider and receive the information

DECISION:

To accept and note the information.

A verbal update was provided by Councillor Goronwy Edwards who had attended the conference in April 2025, as well as Councillor Elin Hywel and the Head of Finance.

It was noted that although there was a lot of discussions about investing in Wales, it seemed that it was the social impact that was being promoted instead of receiving full information about financial investment opportunities in Wales. Reference was made to the town centres regeneration opportunities and constructing houses, but mainly, there was a sense that Wales was a country of small businesses and therefore there was a need to encourage support for these businesses to develop.

RESOLVED

To accept and note the information.