Headlines
Pension funds should join forces on UK investment, City of London chief says
Published by Global Banking and Finance Review
Posted on October 16, 2025
Global Banking and Finance Review
Company
Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
Published by Global Banking and Finance Review
Posted on October 16, 2025
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)