Issue - meetings

To:

-        approve the WPP objectives within the WPP Business Plan 2023/24 to 2025/26,

-        approve the updated Delegation of Functions to Officers to recognise WPP’s role in relation to investments within the pool and that Officer delegations are limited to investments outside of WPP, and to change the delegation for Voluntary Scheme Pays Policy to be consistent with other administration policies.

-        provide Committee members with an update on other pooling matters, and

-        receive a presentation from the WPP Operator and Investment Management Solution Provider.

a)    The Committee approved the WPP objectives within the WPP Business Plan 2023/24 to 2025/26.

b)    The Committee approved the updated Delegation of Functions to Officers to recognise WPP’s role in relation to investments within the pool and that Officer delegations are limited to investments outside of WPP, and to change the delegation for Voluntary Scheme Pays Policy to be consistent with other administration policies.

c)    The Committee noted the update on other pooling matters.

d)      The Committee received and noted the presentation from the WPP Operator and Investment Management Solution Provider.  

Mrs Fielder introduced this item with a brief overview of the report, highlighting:

-       An additional objective for the WPP business plan had been requested by the scheme member observer at JGC on 29 March, which the Fund was now being asked to approve.

-       The Fund was also being asked to approve changes to the Scheme of Delegations to Officers to reflect that the Fund has allocators through WPP, and that WPP now make the majority of investment decisions on the Fund’s behalf. This includes private markets decisions that were previously delegated to the Head of the Fund. There was also an amendment regarding the administration policy.

-       The WPP operator procurement process is ongoing and approval of the scoring criteria for this is a reserved matter for constituent authorities, so will be brought to Committee in August, after discussion at JGC in July.

            Mr Zealander presented an update from Link Fund Solutions to the Committee, covering:

-       The role of Link in relation to WPP, Russell Investments and Northern Trust.

-       An update on Waystone’s acquisition of Link which was on track to go live on 1 October.

-       Link’s governance structure and oversight core principles, which will remain in place throughout the acquisition process.

-       The launch of the WPP Sustainable Active Equity Fund on 20 June 2023.

            Mrs McWilliam asked when the Fund will hear more about the sale of Link Fund Solutions, and given the expectation that Pension Funds will be unaffected by the transition of ownership, she asked whether any work had been done to ensure that the WPP Business Plan can still be delivered in line with both the timescales and the needs of the Funds. Mr Zealander explained that WPP, Link and Waystone’s solicitors were currently working on the novation of contracts and an agreement was expected to be reached within the week. Following this it was expected that the constituent authorities will be asked to sign this off within the next fortnight. He also clarified that Link had been assured that the WPP roadmap would be unaffected, and there will be no fundamental changes to the business or senior management team within the first 12 months, to avoid impact on systems and controls.

            The Chair then handed over to Mr Quinn to present the update from Russell Investments.

            Mr Quinn explained that the launch of the WPP Sustainable Active Equity Fund which followed 18 months of work with the WPP and subgroups, meant the WPP now had ten sub-funds available across the liquid asset classes. The WPP were also in the process of building its private markets programme.

            He gave an overview of the sub-funds the Fund invests in, which covered:

-       WPP Global Opportunities Equity Fund, from which Clwyd will be transferring all assets across to the WPP Sustainable Active Equity Fund. He provided details of the sub-fund’s performance since inception, and how varied investment styles were incorporated into the construction of this portfolio. A similar approach had been used  ...  view the full minutes text for item 57