The Wales Pension Partnership (WPP) was established to bring together the investment assets of eight Local Government Pension Scheme funds in Wales. This collaborative approach allows for greater efficiency, reduced costs, and enhanced governance. The WPP operates as a collective investment vehicle, enabling member funds to pool their assets and benefit from increased scale and access to a broader range of investment opportunities.
www.walespensionpartnership.org
Governance and structure
The WPP is governed by a Joint Governance Committee, which is supported by an Officer Working Group. The member funds retain their responsibility for setting their strategic asset allocations, while the WPP oversees the management and pooling of investments to achieve operational efficiencies. The governance framework ensures that all eight constituent authorities have a voice in shaping the direction of the WPP.
Investment strategy and approach
WPP’s investment strategy is designed to balance long-term returns with responsible investment principles. By pooling assets, the WPP enhances access to a more diverse range of asset classes and specialist investment opportunities, while also focusing on sustainability and the incorporation of environmental, social, and governance (ESG) considerations.
Performance
As of 31 March 2024, the WPP has total assets worth £25 billion, of which £18.5 billion (74%) has already been pooled. The majority of these pooled liquid assets sit within the following sub-funds: Global Equities, UK Equities, Fixed Income, Emerging Markets, and Sustainable Equities. Passive investments, valued at £5.2 billion, are effectively within the pool but are held by the respective WPP authorities as insurance policies.
The WPP is also in the process of establishing private market investment programmes. To date, investment programmes have been launched for private credit, private equity and infrastructure, with real estate investment programmes due to launch later this year. This expanded focus on private markets aligns with the WPP’s ambition to enhance diversification and deliver sustainable, long-term returns for member funds.
WPP was honoured to have receive an industry award in late 2024, for the Sustainable Active Equity Fund.
Expansion of sustainable investments
The WPP has expanded its sustainable investment portfolio across several key areas within Wales:
Uskmouth Power Station: Through its investment in Quinbrook Infrastructure Partners’ Renewable Infrastructure Fund, the fund supported the redevelopment of Uskmouth Power Station into a battery-powered energy storage system. The site achieved an “Exemplary” rating in its BREEAM assessment.
Affordable Housing: Partnered with bridge lender Pluto Finance to increase affordable housing construction in Wales, with particular focus on the SME housebuilding sector.
Forestry fundraising: Invested £110 million into Gresham House’s £375 million Forest Fund VI. Investing alongside London CIV and a Japanese investor, the capital will fund productive woodland creation on unplanted land and established forests across the UK.
Invest in Wales
In April 2025, WPP supported a ground-breaking “Invest in Wales” conference. Sponsored by Schroders Capital in partnership with the Development Bank of Wales, the event featured speakers from the WPP, Corporate Joint Committees and other organisations across Wales. The event explored how private capital could support the energy transition and how investment in housing and social infrastructure can enhance Welsh communities.
Further reading
Wales Pension Partnership makes real estate debt investment with Pluto Finance to deliver affordable Welsh housing
Gresham House announces final close of Forest Fund VI at £375 million
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