Finance
UK launches 'Sterling 20' club to drum up investment
Published by Global Banking and Finance Review
Posted on October 19, 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 19, 2025
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)