Published by Global Banking & Finance Review®
Posted on October 19, 2025
3 min readLast updated: January 21, 2026
Add as preferred source on GoogleThe UK government launches the Sterling 20 club, involving major pension funds, to boost local infrastructure investment and economic growth.
By Iain Withers
LONDON (Reuters) -The British government on Monday launched a club of 20 of the country's largest pension funds in an effort to drum up more coordinated backing for local infrastructure and businesses, part of a wider drive to stimulate private investment and speed up economic growth.
The 'Sterling 20' initiative includes money managers Legal & General, Aviva and M&G, as well as Britain's biggest private pension scheme, the Universities Superannuation Scheme.
L&G said it would invest 2 billion pounds ($2.7 billion) in UK "impact" projects over five years, including developing 10,000 affordable homes and funding regeneration schemes, as part of coordinated announcements.
'GETTING BRITAIN BUILDING AGAIN'
While the government has launched various initiatives to boost private investment, some finance firms have privately questioned their effectiveness and the scarcity of so-called shovel-ready projects. Finance minister Rachel Reeves' budget next month could also test business confidence as she considers tax rises.
“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," Reeves said in a statement.
Sterling 20 members will work with the government and the City of London Corporation to channel pension savings into British infrastructure and high-growth firms such as in the artificial intelligence sector, the government said, without providing further details.
"(L&G's) commitment will help unlock the investment needed in productive assets across the country – creating jobs, strengthening communities, and driving both regional and national growth," L&G CEO Antonio Simoes said.
Pension fund Nest also said it would invest about 100 million pounds in UK assets through its money manager Schroders Capital, although the total of the two investments announced by the government was much lower than past whip rounds.
Eleven pension providers have signed up to a separate pact to invest 5% of their funds in UK private assets. They currently only invest 0.6%, the Association of British Insurers said this week.
Sterling 20 will be formally launched at the government's Regional Investment Summit in Birmingham on Tuesday, which will be attended by a range of investors including Australia's largest pension funds.
($1 = 0.7444 pounds)
(Reporting by Iain WithersEditing by Mark Potter)
A pension fund is a type of investment fund that collects and invests money to provide retirement income for its members.
Infrastructure financing refers to funding for the construction and maintenance of essential facilities and systems, such as transportation, utilities, and public services.
Private investment involves capital invested in private companies or projects, typically not traded on public markets, to generate returns.
Economic growth is the increase in the production of goods and services in an economy over a period, often measured by GDP.
Impact investment refers to investments made with the intention to generate positive social or environmental impacts alongside financial returns.
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