Agenda and minutes

There were no apologies for absence.

[Note: There is an exemption within the Code of Conduct for Members, which allows a member who has been appointed or nominated by their Authority to a relevant body to declare that interest but remain and participate in the meeting.]

UNANIMOUSLY RESOLVED that the minutes of the Joint Governance Committee meeting held on 1^st December, 2021 be signed as a correct record.

[NOTE: Councillors G. Caron, P. Jenkins, P. Lewis, C. Lloyd, M. Norris, T. Palmer and E. Williams had earlier declared an interest in this item.]

The Joint Committee received a progress update in relation to the following key areas:-

·         Governance

·         Ongoing establishment

·         Operator services

·         Communications and reporting

·         Training and meetings

·         Resources, budget and fees

The Chair took the opportunity to thank the Host authority officers for their contribution to the presentation at the Joint Council for Wales which was held recently.

UNANIMOUSLY RESOLVED that the Host Authority update be received.

[NOTE: Councillors G. Caron, P. Jenkins, P. Lewis, C. Lloyd, M. Norris, T. Palmer and E. Williams had earlier declared an interest in this item.]

The Joint Committee received the Training Plan for 2022/23. The meeting was advised that the WPP’s training plan is devised to supplement existing Constituent Authority training and will be relevant to the WPP’s pooling activities.  The training is primarily focussed on meeting the training needs of members of the OWG and JGC, however it may be extended to Pension Committee members, as well as Pension Board representatives, if relevant.

The 2022/2023 training sessions will be held quarterly and will cover the following topics:

·         Product knowledge

·         Pool knowledge

·         Responsible Investment

·         Market Understanding

UNANIMOUSLY RESOLVED that the WPP training plan 2022/23 report be approved.

[NOTE: Councillors G. Caron, P. Jenkins, P. Lewis, C. Lloyd, M. Norris, T. Palmer and E. Williams had earlier declared an interest in this item.]

The Joint Committee considered the Business Plan 2022-2025. The meeting was advised that the Business Plan has been drafted in accordance with Section 6 of the Inter Authority Agreement. Following approval by the Joint Committee, the Business Plan would be sent to all Constituent Authorities for their written approval.

The Chair was thanked for his hard work and contribution to the Joint Committee during his period as Chair.

UNANIMOUSLY RESOLVED that the Business Plan be approved.

[NOTE: Councillors G. Caron, P. Jenkins, P. Lewis, C. Lloyd, M. Norris, T. Palmer and E. Williams had earlier declared an interest in this item.]

The Joint Committee considered the Risk Register Q1 2022 Review.  It was noted that during the last quarter a review was undertaken of the Governance and Regulation section, risks G.1 to G.6. The review outcomes of each risk were summarised in an appendix to the report.

UNANIMOUSLY RESOLVED that the amendments to the WPP Risk Register, as detailed in the report, be approved.

[NOTE: Councillors G. Caron, P. Jenkins, P. Lewis, C. Lloyd, M. Norris, T. Palmer and E. Williams had earlier declared an interest in this item.]

The Joint Committee received a report detailing the Annual Policy Reviews undertaken on the following policies:-

·         Communication Policy

·         Governance Matrix

These policies were approved by the JGC in December 2019.  A second annual review of the policies has taken place and updated documents require approval by the JGC.

 UNANIMOUSLY RESOLVED that the updated policies, as detailed above, be approved.

[NOTE: Councillors G. Caron, P. Jenkins, P. Lewis, C. Lloyd, M. Norris, T. Palmer and E. Williams had earlier declared an interest in this item.]

The Joint Committee considered a report to approve the recommendation of the Joint Governance Committee (JGC) sub-group to appoint:

·         Osian Richards from Gwynedd Pension Fund as the Scheme Member Representative of the JGC

·         Ian Guy from City and County of Swansea Pension Fund as the Deputy Scheme Member Representative of the JGC (the deputy will be required to attend meetings in the SMR’s absence).

The appointment will be effective immediately after the JGC have approved the recommendations, with a tenure of two years.  If the individual ceases to be a local pension board scheme member representative within that two-year period, their role as scheme member/deputy scheme member representative will also cease.

Reference was made regarding the high standard of calibre of applicant for the posts and that the successful applicants would be an asset to the JGC.

UNANIMOUSLY RESOLVED that the recommendations of appointments, as detailed above, be approved.

[NOTE: Councillors G. Caron, P. Jenkins, P. Lewis, C. Lloyd, M. Norris, T. Palmer and E. Williams had earlier declared an interest in this item.]

The Joint Committee received an update on the progress of the Wales Pension Partnership in relation to the following key areas:-

-       Current Fund Holdings

-       Fund Launch Progress

-       Corporate Update and Engagement

The report also provided an update on the progress and milestones of the following Sub Funds:-

• Tranche 1 – Global Equity

• Tranche 2 – UK Equity

• Tranche 3 – Fixed Income

• Tranche 4 – Emerging Markets

In response to a query, the JGC was advised that it would be kept updated over the next 6 months, as Dye & Durham proceeds to acquire Link.

UNANIMOUSLY RESOLVED that the Operator Update report be received.

[NOTE: Councillors G. Caron, P. Jenkins, P. Lewis, C. Lloyd, M. Norris, T. Palmer and E. Williams had earlier declared an interest in this item.]

The Joint Committee received a presentation on the Performance Reports as at 31^st December, 2021. It was noted that the sub funds had outperformed/ underperformed against their respective benchmarks, as follows:

·         Global Opportunities – outperformed by 0.71% gross / 0.34% net

·         Global Growth – outperformed by 0.01% gross / underperformed by 0.44% net

·         Emerging Markets – outperformed by 0.24% gross / 0.13% net

·         UK Opportunities – outperformed by 1.12% gross / 0.68% net

·         Global Government Bond – outperformed by 1.06% gross / 0.83% net

·         Global Credit – outperformed by 1.23% gross / 1.06% net

·         Multi Asset Credit – outperformed by 1.86% gross / 1.43% net

·         ARB – underperformed by 0.73% gross / 1.19% net

·         UK Credit – outperformed by 0.37% gross / 0.25% net

UNANIMOUSLY RESOLVED that the Performance Reports of the Sub Funds, as detailed above, as at 31^st December, 2021, be noted.

UNANIMOUSLY RESOLVED, pursuant to the Local Government Act 1972, as amended by the Local Government (Access to Information) (Variation) (Wales) Order 2007, that the public be excluded from the meeting during consideration of the following items as the reports contained exempt information as defined in paragraph 14 of Part 4 of Schedule 12A to the Act.

Following the application of the public interest test it was UNANIMOUSLY RESOLVED, pursuant to the Act referred to in Minute 12 above, to consider this matter in private, with the public excluded from the meeting, as disclosure would adversely impact upon the Pension Fund by disadvantaging Fund Managers in negotiations with borrowers to the detriment of the Fund.

[NOTE: Councillors G. Caron, P. Jenkins, P. Lewis, C. Lloyd, M. Norris, T. Palmer and E. Williams had earlier declared an interest in this item.]

The Joint Committee considered the Global Securities Lending Review for Quarter ending 31^st December, 2021.

UNANIMOUSLY RESOLVED that the Global Securities Lending Review as at 31^st December, 2021 be noted.

Following the application of the public interest test it was UNANIMOUSLY RESOLVED, pursuant to the Act referred to in Minute 12 above, to consider this matter in private, with the public excluded from the meeting, as disclosure would be likely to cause financial harm to the Pension Fund by prejudicing ongoing and future negotiations.

[NOTE: Councillors G. Caron, P. Jenkins, P. Lewis, C. Lloyd, M. Norris, T. Palmer and E. Williams had earlier declared an interest in this item.]

The Joint Committee considered the Engagement Report for Q4 of 2021, which ended on 31^st December 2021.

UNANIMOUSLY RESOLVED that the Engagement Report for Q4 of 2021 be noted.

Following the application of the public interest test it was UNANIMOUSLY RESOLVED, pursuant to the Act referred to in Minute 12 above, to consider this matter in private, with the public excluded from the meeting, as disclosure would be likely to cause financial harm to the Pension Fund by prejudicing ongoing and future negotiations.

[NOTE: Councillors G. Caron, P. Jenkins, P. Lewis, C. Lloyd, M. Norris, T. Palmer and E. Williams had earlier declared an interest in this item.]

The Joint Governance Committee considered a report to appoint the Private Market Allocators for the Wales Pension Partnership.

Following the completion of the procurement process, it was recommended:

·         To appoint bidder 8 as the preferred bidder for the Wales Pension Partnership Allocator for Private Debt (Lot 1) subject to the completion of the standstill period and the finalisation of the Allocator Contract

·         To appoint bidder 7 as the preferred bidder for the Wales Pension Partnership Allocator for Infrastructure (Lot 2) subject to the completion of the standstill period and the finalisation of the Allocator Contract

·         To appoint bidders 4,8 and 13 as the preferred bidders for the Wales Pension Partnership Allocators for Open Ended Infrastructure (Lot 3) subject to the completion of the standstill period and the finalisation of the Allocator Contract

UNANIMOUSLY RESOLVED that the Allocator Appointment, as detailed above, be approved

[NOTE:  At this point in the meeting Cllr Ted Palmer had to leave the meeting]

Following the application of the public interest test it was UNANIMOUSLY RESOLVED, pursuant to the Act referred to in Minute 12 above, to consider this matter in private, with the public excluded from the meeting, as disclosure would be likely to cause financial harm to the Pension Fund by prejudicing ongoing and future negotiations.

[NOTE: Councillors G. Caron, P. Jenkins, P. Lewis, C. Lloyd, M. Norris, T. Palmer and E. Williams had earlier declared an interest in this item.]

The Joint Committee received an update on the Q3 Responsible Investment & Climate Risk Reports for WPP’s:

·         Global Credit Sub Fund, and

·         Multi Asset Credit Sub Fund.

UNANIMOUSLY RESOLVED that the Responsible Investment & Climate Risk Reports be noted.