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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 exclude the public for the following items of business on the grounds that there would be disclosure to them of exempt information under category 3 of The Local Authorities (Access to Information) (Variation) (Wales) Order 2007).
Members of the Committee declared interests as members of the Local Government Pensions Scheme. These are personal interests, not prejudicial interests in accordance with Paragraph 12(b) (iv) of the Members Code of Conduct 2016.
Decision as recorded
RESOLVED to exclude the public for the following items of business on the grounds that there would be disclosure to them of exempt information under category 3 of The Local Authorities (Access to Information) (Variation) (Wales) Order 2007).
RESOLVED to exclude the public for the following items of business on the grounds that there would be disclosure to them of exempt information under category 3 of The Local Authorities (Access to Information) (Variation) (Wales) Order 2007).
No apologies were received.
Members of the Committee declared interests as members of the Local Government Pensions Scheme. These are personal interests, not prejudicial interests in accordance with Paragraph 12(b) (iv) of the Members Code of Conduct 2016.
• It was reported that WPP had won an investment award at the recent LGC Awards. • It was noted that the Edinburgh conference attended by several members, including the Chair, had been very successful. • Thanks were expressed to those who had attended the JGC meeting on Monday and the session with Rob Lamb on Wednesday, both of which were described as positive and productive.
The updated Funding Strategy Statement was presented by the Pension Fund Manager. The document had previously been shared in draft form at the September meeting and had since been subject to consultation with fund employers during October. Minor amendments were noted: · Recovery period set at 12 years for the 2025 valuation (page 127). · Surplus buffer increased to 110% from 105% (page 128). No further significant changes were identified. The document was confirmed as an important part of the valuation process and would be published at the appropriate time following committee approval. The updated Funding Strategy Statement was approved by the committee.
The Pension Fund Manager presented the report: The report outlined the fund’s fiduciary duty and referenced guidance from the Scheme Advisory Board 2.2 Non-financial factors could only be considered where they did not cause significant financial detriment and had scheme member support. 3. The committee was reminded of existing policies and exclusions already in place within the Sustainable Active Equity Fund (launched in 2023) and a new passive equity fund. 3.6 Work was ongoing at WPP and across Wales to review exclusions and responsible investment approaches, with WPP expected to conclude its investment framework review in early 2026. 4. Legal, regulatory, and contractual considerations were highlighted for any future decisions on exclusions or divestments. Issues Raised by the Committee Responses Received Was it expected that the Scheme Advisory Board would revisit Nigel Griffin’s legal advice. No indication had been given that the Scheme Advisory Board would revisit the advice. The published guidance was current. Implications were noted regarding future guidance or legislation. Legal advice could vary in interpretation, but the fund operated in line with the LGA and Scheme Advisory Board’s published position. Clarification was sought on the date of the Scheme Advisory Board guidance in the appendix. It was confirmed that the guidance had been issued in September 2024. Cllr Kennerley requested full legal advice and related documents to be included in future papers. The Pension Fund Manager agreed that the material could be collated for committee consideration as deemed appropriate. Cllr Adam Kennerley, noting prior questions from Cllr Sian Cox to WPP on evidencing engagement impact, requested that WPP’s responses be made visible to the Committee. The Pension Fund Manager explained that Robeco was the engagement provider for WPP and noted that some public papers were available via the Joint Governance Committee. It was acknowledged that engagement reporting was complex and involved third parties. It was confirmed that discussions would be held with the engagement provider to explore how evidence could be shared or explained. Committee accepted the recommendation put forward in the paper.
An update was provided on administration, and governance matters by the Pension Fund Manager. 2.2 Attendance at the LGPS Governance Conference in Cardiff was noted. 2.3 Key points from the LGPS annual update for 2024–25 were highlighted for information, including changes in scale and size compared to the previous year. 2.4 The Pension Schemes Bill and related consultations were reported: · A consultation on access and protections affecting members was noted, with a closing date of 22nd December. 2.7 A technical consultation launched on 20th November regarding investment management company (IMCO) requirements and governance amendments was highlighted, with a closing date of 2nd January. · Assurance was given that responses would be coordinated with WPP and other partners, despite the challenging timescale. · It was confirmed that the fund was in a strong position regarding governance standards but would need to implement changes in line with new regulations. 3.2 The conflicts of interest policy was noted as appropriate but would be revisited following new guidance and draft regulations. 3.3 The Scheme Advisory Board’s legal advice on pooling governance and conflicts of interest was referenced, and a link to the SAB factual summary responding to Reform UK’s statement was offered to members. 4 It was confirmed that the fund had met its legislative requirement to connect to the Pensions Dashboard ecosystem by the 31st October deadline, with ongoing testing and rollout noted. 4.2 The annual scheme return was submitted to The Pensions Regulator ahead of the 3rd December deadline. 5.1 Progress on recruitment was reported: · Three new posts had been filled, with further appointments scheduled. · Plans were made to introduce new team members to the committee at future meetings. 6 Updates were provided on the risk register and breaches register: · Risk Gov01 mitigation commentary was updated to reflect new employer-focused roles. 7 No new breaches were reported since the last meeting. Issues Raised by the Committee WALES Clarification was sought on how differing views on responsible investment among Welsh funds could be aligned. The WPP would maintain a policy framework broad enough to allow individual funds flexibility while enabling overall implementation. A request was made for access to the Scheme Advisory Board’s factual summary responding to Reform UK’s statement. It was confirmed that a link to the SAB response would be shared with members. The report was noted by the committee.
An update was provided on recent developments within the Wales Pension Partnership. The following key points were highlighted: 3.1 Appointment of a Chief Executive for the Investment Management Company was confirmed. Mr Rob Lamb had been appointed and had already met with the Chair and officers. 3.2 It was noted that WPP had received two recent awards. Both awards were related to innovation in investment and private markets strategies: • The Investment Innovation Award at the LAPF Investments event in October. • A second award at the LGC Awards, as mentioned earlier in the meeting. Appreciation was expressed for the progress made by WPP in comparison to other pools, with recognition that Wales was ahead in implementing its plans. The report was noted by the committee.
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