TLDR: Twenty of the UK’s largest pension providers and insurers have united to form the ‘Sterling 20’ group, an initiative aimed at channeling billions of pounds into the nation’s infrastructure and rapidly expanding sectors such as artificial intelligence and fintech. This move, announced ahead of a major regional investment summit, seeks to drive economic growth, create jobs, and address years of outflows from domestic assets, though it faces some opposition from investment managers regarding government intervention.
In a significant push to invigorate the UK economy, twenty of the nation’s leading pension providers and insurers have officially launched the ‘Sterling 20’ group. This new investor-led partnership, unveiled on Monday, October 20, 2025, is designed to direct substantial capital towards critical infrastructure projects and burgeoning industries, including artificial intelligence (AI) and fintech. The announcement precedes a crucial Regional Investment Summit hosted by the government in Birmingham on Tuesday, October 21.
The ‘Sterling 20’ comprises major players such as Legal & General Group Plc, Aviva, M&G, Nest Corporation, and the Universities Superannuation Scheme (USS), alongside other prominent firms like Aegon, Aon, Phoenix Group, and Royal London. The group will collaborate closely with the UK’s Office for Investment and the City of London Corporation to identify and facilitate regional investment opportunities across the country. The initiative builds upon the foundations laid by July’s Mansion House Accord, where 17 providers committed to investing at least 5% of their main default funds in UK private markets.
The primary objectives of the ‘Sterling 20’ are multifaceted: to boost affordable housing, enhance broadband connectivity in rural areas, and provide crucial scale-up finance for fast-growing businesses. Legal & General has already pledged a substantial £2 billion commitment by 2030, targeting ‘impact’ projects that include the development of approximately 10,000 affordable homes and supporting the creation of 24,000 jobs nationwide. Similarly, government-backed pension fund Nest plans to provide Schroders Capital with a £100 million ringfenced fund for UK investments and will invest £40 million to deliver gigabit-capable fibre broadband to remote areas in Scotland and Northern England.
Chancellor of the Exchequer Rachel Reeves has been a vocal proponent of increased domestic investment from pension funds, following years of capital outflows from UK assets. Commenting on the initiative, Reeves stated, “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.” She added, “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.”
Antonio Simoes, Group Chief Executive of Legal & General, echoed this sentiment, remarking, “Our £2 billion commitment, targeted at housing, infrastructure, and urban regeneration, will help unlock the investment needed in productive assets across the country – creating jobs, strengthening communities, and driving both regional and national growth.”
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While the government has expressed its intention to take a ‘reserve power’ to potentially compel pension funds to invest domestically, this move has met with fierce opposition from some investment managers who argue that investment choices should remain solely at their clients’ discretion. Pension providers have also highlighted cost concerns and performance fees as existing barriers to further boosting investments in private markets. Despite these challenges, the ‘Sterling 20’ aims to leverage the Office for Investment’s unique position to match ‘transformational’ investment opportunities with available capital, fostering a pipeline of projects that align with the group’s ambitions and contribute to growth across all UK regions.
