Agenda item

To receive and note the information. 

The Investment Manager highlighted that the report was for information, setting out what was recently discussed at a Pension Board Chairs Engagement Meeting – an update on the work of the Wales Pension Partnership that now played a leading role within the Fund. It was noted that the Chairs of the Pension Boards met every six months and that the October discussions included an update on the review of the Business Plan, responsible investment issues and the risk register.

Reference was made to the details of the operator's work over the period and to the market conditions that had been monitored by them. Attention was drawn to the funds' performance, highlighting that performance had been strong with global equities and fixed income markets rising during the period.

It was highlighted that Yr Wyddfa Project was progressing rapidly to establish the investment company (WPP IM Co) with the Financial Services Register (Financial Conduct Authority – FCA) application submitted and regular recruitment and engagement taking place. It was added that JGC officers and members had been discussing establishing agreements between the investment company and the eight Constituent Authorities as clients and shareholders. It was noted that a meeting would be arranged to share specific information on the relevant developments and agreements with the Committee and the Pension Board before moving to formal approval by the Pensions Committee.

Thanks were expressed for the report

In response to an observation that the Clwyd Fund had pooled 32%, Powys 63% and Swansea 66% and whether the technical nature of the funds or political issues were the reasons for the slow transition to the WPP, it was noted that the risk had been identified; these Councils had increased investments in private markets and measures had been put in place to respond to the situation with the appointment of an Asset Handling Officer to lead on the work. 

In response to an observation that the WPP continued to refer to the project as the Snowdon Project and not Yr Wyddfa Project, it was noted that this observation had been submitted to the WPP, and at every possible opportunity thereafter, the officers had attempted to convey the correct name – there was a need to continue to press the WPP to refer to the Snowdon Project as Yr Wyddfa Project.

Mr Eifion Jones (who had observed a meeting of the Pensions Committee on the morning of 09-02-26,) asked for more information regarding the notices of motion the WPP had received from individual Councils. In response, it was confirmed that the WPP had received a number of notices of motion from Local Councils in Wales, including Cyngor Gwynedd (Full Council, October 2025) on responsible, ethical and sustainable investment issues. It was noted that the motions had been considered, and in light of the work currently being undertaken in relation to the WPP exclusions policy, it was agreed that a response would be prepared for each of the eight Constituent Authorities to publish, with a revised policy to be shared following its approval by the JGC in March 2026.

Observations arising from the ensuing discussion

·        While embracing an exclusions policy, it would be necessary to ensure that the investments bring good returns to the members of the Fund

·        That there was a need to be able to exclude some high-level, obvious investment elements, but with the eight Constituent Authorities likely to have different ideas on how to implement that, a starting point would have to be agreed

·        Welcomed the significant work being done to comply with the principles, and Russell Investments who had been completing work on potential impacts

  The information was accepted