Pension providers form Sterling 20 to ramp up investment in key infrastructure

Twenty of Britain’s largest pension providers and insurers have launched Sterling 20 to channel investment into key infrastructure and fast-growing businesses in sectors prioritised within the Industrial Strategy.

The formation of the Sterling 20 builds on July’s Mansion House Accord, a voluntary pledge by 17 of the UK’s largest workplace pension providers to allocate at least 5% of their main default funds in UK private markets. Even a small shift towards investing in UK infrastructure will unlock billions. 

Alastair King, Lord Mayor of London, said, “The Mansion House Accord marked a pivotal step in pension investment reform signalling a clear industry commitment to channel investment directly into UK growth.

“This next stage transforms commitment into deployment by uniting the UK’s leading investors around a shared vision and coordinated strategy with government. British enterprise, from AI to renewable energy and infrastructure, is primed for investment.

L&G has kicked off the investment drive with a £2 billion commitment by 2030. 

Chancellor of the Exchequer Rachel Reeves said, “This is about getting Britain building again – bringing our savings, our investors and our regions together to deliver the homes, infrastructure and industries that will drive growth and create good jobs in every corner of the country.

“Our country’s pension funds are some of the biggest in the world. When they invest in Britain, everyone benefits – from the construction worker on site, to the small business on the high street, to the saver seeing their pension grow. Sterling 20 shows what can be achieved when we all pull in the same direction to build a stronger economy that works for, and rewards, working people.

António Simões, Group Chief Executive, Legal & General, said, “L&G has a proud history of using pension capital to develop assets that deliver strong financial returns and lasting social impact. Our £2 billion commitment, targeted at housing, infrastructure, and urban regeneration, will help unlock the investment needed in productive assets across the country - driving both regional and national growth.

Tom Pearce, Chief Executive Officer, Rothesay said, “The Sterling 20 is a fantastic initiative which will enable the UK’s largest asset owners to deploy capital more effectively into the critical infrastructure and national priorities which are so vital to our economic growth. As the UK’s largest specialist pensions insurer, Rothesay invests at scale across the country and we are committed to working with the government to deliver the innovative solutions which will unlock even greater volumes of domestic investment from our sector.”

Andrea Rossi, CEO of M&G Plc, said, “UK pension providers have a great opportunity to drive economic growth and give savers the returns they need for retirement. The Sterling 20 Group offers a powerful platform for institutional investors to shape the country’s future from long-term investment in housing, infrastructure or strategic national projects. As a UK-listed savings and investment company investing £100 bn domestically, we are proud to be playing our part.”

The members of the Sterling 20 are: Aegon; Aon; Aviva; L&G; LifeSight by WTW; Mercer; M&G; NatWest Cushon; Nest Corporation; NOW Pensions; People’s Partnership; Phoenix Group; Royal London; Smart Pension; SEI; TPT; USS - Universities Superannuation Scheme; Rothesay; PIC – Pension Insurance Corporation; PPF – Pension Protection Fund.