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The decisions as the council's minutes record them. A plain-language summary follows once it has been written.
RESOLVED: To 1. Note the recent developments related to the WPP Investment Pool.and the Fund’s Investment holdings. 2. Approve the WPP Business Plan 2025-28.
RESOLVED to approve the Conflicts of Interest Policy and the Breaches Policy.
RESOLVED: to note the content of the Risk Register.
RESOLVED to approve the Fund’s Business Plan for 2025/26.
RESOLVED – That the public be excluded from the meeting at this point during consideration of this item as the Committee discussed exempt information of the description contained in paragraph 14 of Part 4 and paragraph 21 of Part 5 of Schedule 12A of the Local Government Action 1972. The public may be excluded from the meeting by resolution of the Committee pursuant to Section 100A(4) of the Local Government Act 1972 during discussion of this item.
Apologies had been received from Cllrs Lay and Taylor.
None received.
The minutes of the meeting held on 5 February 2025 were agreed as a correct record.
Decision as recorded
RESOLVED: To 1. Note the recent developments related to the WPP Investment Pool.and the Fund’s Investment holdings. 2. Approve the WPP Business Plan 2025-28.
Officers provided a comprehensive update on the whole report on the Wales Pension Partnership highlighting key points including: Members were advised that the value of listed assets at the end of March wa £1.71 billion, this stood at £1.672 billion at the end of April, meaning a drop of £38 million or 2.2% during the month of April, which highlights the volatility in the market. Members were updated on private markets which stood at £3,2 billion at the end of February, this had decreased slightly but was still well above the threshold of £3 billion. Members were updated on the Private Equity and Infrastructure and the next vintage of the Schroders WPP private equity fund. Officers highlighted the the more recent very small investment in, along with 4 other welsh funds, into a UK forest fund, which would help the contribution to net zero. Members were provided with the latest voting report from the voting engagement advisor. The WPP Business Plan was attached as an appendix to the report and the individual constituent authorities would need to approve it. The meeting in March also included consideration of a letter from the Palestine Solidarity Campaign and that letter, and the WPP response to that letter is included as Appendix 4 to the report. This had taken quite a lot of focus and interest and was discussed at the at the previous pension meeting. Members were given an overview of the Asset Holdings and were advised that some of the percentages were distorted. A good example was the recent redemption from the UK equities fund, which was reallocated into infrastructure investments. Some private market data will take time to fully settle, but the focus remains on the bottom line. For the year ending February, the fund delivered a return of 10.4%, which provided a strong foundation to help navigate the recent volatility the fund has experienced. Members were invited to make comments and questions on the report. The Chairperson considered it was reassuring for the committee to note that the impact of recent market volatility this year has not been as severe as some might have feared. While there has been significant market movement, this outcome highlights the strength and breadth of our pension fund’s investments, the diversity of our approach, and the positions we’ve taken. This reinforces the long-term focus that is central to pension fund management. He added that one point worth noting from the report is that, when combining BlackRock investments with our other holdings in WPP funds, 91% of our investments are now in pooled vehicles. This demonstrates the fund’s strong commitment to the principles of pooling and the collaborative approach taken. Regarding the £20 million forestry investment, in the context of a £3.2 billion fund, this represents a relatively modest exposure. It offers diversification benefits and aligns with our strategy of maintaining a varied investment portfolio. We will continue to monitor this position, but it is consistent with steps taken by other funds within the Wales Pension Partnership. The attached WPP Business Plan provides further detail, including reference to Project Snowdon, which addresses the government’s “Fit for Future” consultation and anticipated changes within the pensions sector. Members would be covering this in more depth as part of a training session following the committee meeting, ensuring committee members are fully briefed. The plan also outlines ongoing business-as-usual activities alongside the work required to respond to these developments. Finally, the Chairperson noted that regarding the letter from the Palestine Solidarity Campaign and the WPP’s response: the reply reflects ongoing discussions among the eight funds, given the shared nature of pooled investments. This demonstrates WPP’s commitment to responsible investment principles. The response provided is likely to be the one shared with residents who raise queries, ensuring transparency and consistency. These discussions will remain active, and the committee would be kept informed of any changes in approach or future responses. RESOLVED: To 1. Note the recent developments related to the WPP Investment Pool.and the Fund’s Investment holdings. 2. Approve the WPP Business Plan 2025-28.
Decision as recorded
RESOLVED to approve the Conflicts of Interest Policy and the Breaches Policy.
Officers provided a comprehensive outline of the report, which sought approval for the Conflicts of Interest and the Breaches Policies, after which the Chairperson invited questions and comments from Committee Members. The Chairperson considered that the conflicts of interest policy is both clear and essential. In almost all the work undertaken within the Council, it is critical to consider declarations of interest and any potential conflicts. Additionally, having a defined procedure for recording and reporting breaches of the law is extremely helpful. It ensures that everyone understands exactly how such matters will be addressed. RESOLVED to approve the Conflicts of Interest Policy and the Breaches Policy.
Decision as recorded
RESOLVED: to note the content of the Risk Register.
Officers outlined the key points from th Risk Register standing item report. Members were advised that the Risk Register is regularly reviewed by Fund officers and is also presented to the Local Pension Board for their review. The Risk Register was considered by the Pension Board at its meeting on 15 April 2025. The Risk Register presented to the Pension Board at the April meeting included adding a new risk (P23) for the Fit for the Future consultation. In addition the Residual Risk Rating for P7 – Annual Accounts and Report – was increased to reflect that changes required from the CIPFA/SAB guidance issued in March 2024 is now mandatory for 2024/25 document. For the rest of the register the opportunity was taken to incorporate minor amendments and updates to the narrative. The Chairperson invited Members to make comments and ask questions on the report. The Chairperson considered that it was helpful to have paragraphs four and five highlighting where amendments or changes have been made. This makes it easier to focus on those areas, most of which seem reasonable and fairly minor. It’s also important that the risk and scale of work required for the Fit for Future response, particularly Project Snowden, are acknowledged and factored into the work programme. The changes outlined in paragraph five reflect some positive progress. For example, the update on P20 shows improvements in recruitment and staffing, which has been a longstanding issue. The service responded with an action plan, and it was good to see that effort recognised. Additionally, the overall increase in funding for the fund is a definite positive. RESOLVED: to note the content of the Risk Register.
Decision as recorded
RESOLVED to approve the Fund’s Business Plan for 2025/26.
Members were provided with a an outline of the report. It was noted that the full document was attached as Appendix 1. The Business Plan had previously been presented to the Local Pension Board in April, although that was a slightly earlier version. Since then, the Business Plan has been updated, particularly with financial data from the 2024–25 year as the accounts close. There may still be minor adjustments during the audit, but this is essentially the final version. Members were advised that the document follows the same format as previous years. It includes: • Overarching objectives and the management structure of the fund. • Key statistics on asset holdings, valuations, and member data. • Achievements during 2024–25 (see paragraph 4). • Priorities for the coming year (see paragraph 5). • A budget outline for 2025–26, plus indicative estimates for 2026–27 and 2027–28. The Chairperson invited questions and comments on the report. The Chairperson stated that looking at the key priorities for the next 12 months, one major focus is the transition with our Wales Pension Partnership colleagues to establish an FCA-regulated investment management company, in line with UK Government policy. This would be discussed further in the training session following the meeting. He was also pleased to see the development of the fund’s Net Zero policy included. Committee worked extensively on this last year, involving committee members, the Board, independent advisors, and consultants. The fund has set a target of achieving Net Zero by 2040. However, this is an iterative goal because investments are in the real economy. Our approach must balance available opportunities with our core fiduciary duty as a pension committee. Ultimately, progress will depend on actions taken by governments, businesses, and companies worldwide, which will influence whether achieving Net Zero by 2040, or sooner, is feasible. The Chairperson asked if Officers were confident about the transition to the new version of Member Self Serve. Officers advised that they were and they didn’t foresee any disruptions to members. RESOLVED to approve the Fund’s Business Plan for 2025/26.
Decision as recorded
RESOLVED – That the public be excluded from the meeting at this point during consideration of this item as the Committee discussed exempt information of the description contained in paragraph 14 of Part 4 and paragraph 21 of Part 5 of Schedule 12A of the Local Government Action 1972. The public may be excluded from the meeting by resolution of the Committee pursuant to Section 100A(4) of the Local Government Act 1972 during discussion of this item.
RESOLVED – That the public be excluded from the meeting at this point during consideration of this item as the Committee discussed exempt information of the description contained in paragraph 14 of Part 4 and paragraph 21 of Part 5 of Schedule 12A of the Local Government Action 1972. The public may be excluded from the meeting by resolution of the Committee pursuant to Section 100A(4) of the Local Government Act 1972 during discussion of this item.
Noted.
None received.
The next meeting of the Pension Committee is the joint meeting with the Local Pension Board to be held at The Mansion House at 3pm on 23 June 2025. The next dedicated meeting of the Pension Committee is expected to be held on Teams at 5pm on 24 November 2025.
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