Published by Global Banking & Finance Review®
Posted on October 16, 2025
3 min readLast updated: January 21, 2026
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UK pension funds are urged to collaborate on investments to attract foreign capital, focusing on unlisted assets, as part of the Sterling 20 initiative.
By Tommy Reggiori Wilkes and Phoebe Seers
LONDON (Reuters) -British pension funds should club together on major investment projects to pool resources and help attract foreign capital, the Lord Mayor of London said on Thursday, renewing his calls for funds to invest more in unlisted assets.
UK pension funds invest far less in private markets like infrastructure and private debt and equity than in countries such as Canada and Australia. Changing that is a key component of finance minister Rachel Reeves' drive to fund infrastructure projects and boost the economy.
Alastair King, who finishes his one-year tenure as the ceremonial head of the City of London financial district next month, told Reuters that he was pushing for funds to collaborate to spur investment.
MORE 'SHOVEL READY' PROJECTS NEEDED
The Financial Times reported on Thursday that the City of London Corporation and the government were leading an initiative, to be announced next week, to encourage 20 of the biggest UK pension funds to team up, known as Sterling 20.
King did not comment on the initiative. The UK finance ministry declined to comment.
"There needs to be pressure (on funds) kept up," said King, whose role is to act as ambassador for UK financial and professional services.
When speaking to foreign investors weighing investment in Britain, too many were put off by "the lack of domestic lead investors", a problem that more collaboration among UK funds could help solve, King added.
Sterling 20 would build on the so-called Mansion House Accord signed in May, which saw 17 firms commit to allocating 10% of their defined-contribution pension assets to unlisted assets - half of it in the UK - by 2030.
King also said it was unfair to just "harangue" pension funds into investing differently, and that they needed to be presented with more good opportunities including early-stage companies and "shovel-ready" projects.
He cited data showing that 1 in every 14,000 pounds of pension fund assets went into venture capital funding, against $1 in every $200 in the United States.
He repeated calls for the government to change rules around tax-incentivised savings accounts to favour buying UK shares over cash.
King, who is returning to his job as an asset manager, will be succeeded by Susan Langley, who will be the third woman in the City of London Corporation’s history to hold the office, and the first to use the Lady Mayor title.
(Reporting by Tommy Reggiori Wilkes and Phoebe Seers. Editing by Mark Potter)
A pension fund is a type of investment fund that is established to provide retirement income for employees. Contributions are made by employers and employees, which are then invested to grow the fund over time.
Unlisted assets are investments that are not traded on a public exchange. They include private equity, real estate, and infrastructure projects, often providing higher returns but with greater risk.
Infrastructure financing refers to the funding of large-scale public works projects, such as transportation systems, utilities, and facilities. It often involves long-term investments from pension funds and other institutional investors.
Foreign capital refers to investments made by individuals or institutions from one country into businesses or assets in another country, often to gain returns or diversify portfolios.
The Mansion House Accord is an agreement among financial institutions in the UK to allocate a portion of their pension assets to unlisted investments, aiming to boost domestic investment.
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