20\u00a0of Britain\u2019s largest pension providers and insurers set to launch Sterling 20 group at first-ever Regional Investment Summit on Tuesday.\u00a0<\/p>\n
Investment drive kicks off with Legal & General\u00a0(L&G)\u00a0and Nest committing billions to build more affordable housing,\u00a0improve\u00a0broadband connections in rural areas and\u00a0provide scale-up finance for growing businesses.\u00a0<\/p>\n
Chancellor set to meet providers and Australia\u2019s biggest fund in Birmingham\u00a0as government ramps up efforts to drive regional growth and put more money into people\u2019s pockets through the Plan for Change.<\/p>\n
The Sterling 20 \u2013 a new investor-led partnership between 20 of the UK\u2019s largest pension funds and insurers \u2013 will be established at the Regional Investment Summit in Birmingham on Tuesday, working with\u00a0the government and City of London Corporation to channel the nation\u2019s savings into key infrastructure and\u00a0fast\u00a0growing\u00a0businesses\u00a0in\u00a0key modern Industrial Strategy\u00a0sectors\u00a0like\u00a0AI\u00a0and fintech.\u00a0<\/p>\n
L&G\u00a0have\u00a0kicked\u00a0off this investment drive with\u00a0a \u00a32 billion commitment by 2030,\u00a0delivering around\u00a010,000 more affordable homes for hardworking families and supporting\u00a0the creation of 24,000 jobs nationwide.\u00a0\u00a0<\/p>\n
Nest, who represent a third of the UK workforce, will also provide Schroders Capital with \u00a3500 million – of which \u00a3100 million is expected to be channelled into UK investments in the coming years. In addition, Nest will invest \u00a340 million to deliver\u00a0gigabit-capable fibre broadcast to\u00a0remote\u00a0areas in Scotland and Norther England \u2013 delivering high-speed reliable broadband to rural homes and businesses in hard-to-reach communities.\u00a0<\/p>\n
Chancellor of the Exchequer Rachel Reeves said:\u00a0\u00a0\u00a0<\/p>\n
This is about getting Britain building again \u2013 bringing our savings, our\u00a0investors\u00a0and our regions together to deliver the homes, infrastructure and industries that will drive growth and create good jobs in every corner of the country.\u00a0\u00a0\u00a0<\/p>\n
Our country\u2019s pension funds are some of the biggest in the world. When they invest in Britain, everyone benefits \u2013 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\u00a0works for, and rewards, working people.\u00a0<\/p>\n
Ant\u00f3nio Sim\u00f5es, Group Chief Executive, Legal & General, said:\u00a0\u00a0<\/p>\n
As a long-term investor in the UK economy, L&G has a proud history of using pension capital to develop assets that deliver strong financial returns and lasting social impact. Our \u00a32 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.\u00a0<\/p>\n
Ian Cornelius, CEO of Nest, said:<\/p>\n
Every decision we make puts our members and their long-term outcomes first. We believe private assets can play a key role in delivering strong, consistent returns for them.\u00a0\u00a0<\/p>\n
That\u2019s\u00a0why the UK, with its exceptional investment opportunities, is a cornerstone of our strategy. From major infrastructure projects to ambitious small businesses, our investments are helping support economic growth across the country. We have already committed around \u00a34 billion to UK private markets, and by 2030 we expect this to rise to around \u00a312 billion. A strong pipeline of opportunities will be essential to realising this growth for the benefit of our members and the UK economy.\u00a0<\/p>\n
Alastair King, Lord Mayor of London, said:\u00a0\u00a0\u00a0<\/p>\n
The Mansion House Accord marked a pivotal step in pension investment reform \u2013 building on the foundations of the Mansion House Compact and signalling a clear industry commitment to channel investment directly into UK growth.\u00a0<\/p>\n
This\u00a0next stage transforms commitment into deployment by uniting the UK\u2019s leading investors around a shared vision and coordinated strategy with government. British enterprise, from AI to renewable energy and infrastructure, is primed for investment.\u00a0The Mansion House Accord signatories have stated their intent\u00a0to deliver on the Accord\u2019s promise to give British savers a meaningful stake in Britain\u2019s growth while increasing returns.<\/p>\n
The Regional Investment Summit will also see the\u00a0AustralianSuper, Australia\u2019s largest pension fund and 17th largest in the world, increase\u00a0its\u00a0investment into the UK housing market.\u00a0\u00a0\u00a0<\/p>\n
The fund will meet with the Chancellor at the Regional Investment Summit, as the Government\u00a0seeks\u00a0to reinforce the UK as an attractive investment destination for the billions of pounds it will deploy outside of Australia in the coming years. Ahead of this,\u00a0AustralianSuper\u00a0has announced a new UK living investment platform dedicated to investment in rental homes as part of its ambition to invest \u00a38 billion\u00a0of new capital into\u00a0the UK over the next five years\u00a0<\/p>\n
Damian Moloney, Deputy Chief Investment Officer at\u00a0AustralianSuper:\u00a0\u00a0<\/p>\n
The Superannuation Mission offers a valuable opportunity to share insights, deepen collaboration and build on the strong investment ties that exist between Australia and the UK.\u00a0<\/p>\n
As the launch of our new \u00a3500m UK Living Platform\u00a0demonstrates,\u00a0AustralianSuper\u00a0continues to view the UK as a key global investment destination. With the Fund on track to grow its UK assets to \u00a318 billion by 2030,\u00a0we look forward to further\u00a0facilitating\u00a0investment between the two countries for the benefit of members.\u201d\u00a0<\/p>\n
Minister for Pensions Torsten Bell said:<\/p>\n
Our pensions system is one of the UK\u2019s great strengths.\u00a0We\u2019re\u00a0stepping up the pace of pension reform to support not just British pension savers but the British economy, supporting investment\u00a0to deliver\u00a0the growth of communities up and down the country.\u201d\u00a0<\/p>\n
Tom Pearce, Chief Executive Officer, Rothesay said:<\/p>\n
The Sterling 20 is a fantastic initiative which will enable the UK\u2019s largest asset owners to deploy capital more effectively into the critical infrastructure and national priorities which are so vital to our economic growth. As the UK\u2019s largest specialist pensions insurer, Rothesay invests at scale across the country and we are committed to working with the government to deliver the innovative solutions which will unlock even greater volumes of domestic investment from our sector.<\/p>\n
Andrea Rossi, CEO of M&G Plc, said:<\/p>\n
\u201cUK pension providers have a great opportunity to drive economic growth and give savers the returns they need for retirement. The Sterling 20 Group offers a powerful platform for institutional investors to shape the country\u2019s future from long-term investment in housing, infrastructure or strategic national projects. As a UK-listed savings and investment company investing \u00a3100 billion domestically, we are proud to be playing our part.<\/p>\n
Andy Briggs, CEO, Phoenix Group, said:<\/p>\n
Through the Sterling 20 we are helping to unlock billions in long-term investment that will support communities, build critical regional infrastructure, and fuel innovation across the UK. This is about putting our customers\u2019 savings to work in ways that grow their pensions and grow the economy. This landmark initiative brings together the scale and strength of the UK\u2019s pension and insurance sector to invest in Britain\u2019s future.<\/p>\n
The formation of the Sterling 20 comes as pension providers ramp up their investment in Britain. It builds on\u00a0July\u2019s\u00a0Mansion House Accord, which saw 17 providers\u00a0representing\u00a090% of active defined contribution scheme savers,\u00a0commit to invest at least 5% of their main default funds in UK private markets. This commitment will unlock over \u00a325 billion for new UK housing infrastructure and high-growth industries.\u00a0\u00a0<\/p>\n
All\u00a017\u00a0signatories of the Accord, alongside annuity providers Rothesay and PIC, and the Pension Protection Fund\u00a0have signed up to form\u00a0the Sterling 20.\u00a0<\/p>\n
Working with the Office for Investment, the Sterling\u00a020\u00a0and Australian Superannuation Scheme\u00a0\u2013 who manage a combined\u00a0\u00a35 trillion in assets – driving growth, creating\u00a0jobs\u00a0and putting more money\u00a0in people\u2019s pockets.\u00a0Even a small shift towards investing in UK infrastructure would unlock billions.\u00a0<\/p>\n
The Office for Investment\u2019s unique position as a bridge between government, investors and local leaders will allow it to match transformational investment opportunities with capital. It will\u00a0leverage\u00a0its visibility across the UK landscape to create a pipeline of opportunities that meet the Sterling 20 and Australian Superannuation Scheme\u2019s investment ambitions and drive growth in every region of the country.<\/p>\n
Further information<\/p>\n
The members of the Sterling 20 are: Aegon; Aon; Aviva; L&G;\u00a0LifeSight\u00a0by WTW; Mercer; M&G; NatWest Cushon; Nest Corporation; NOW Pensions; People\u2019s Partnership; Phoenix Group; Royal London; Smart Pension; SEI; TPT; USS – Universities Superannuation Scheme; Rothesay; PIC \u2013 Pension Insurance Corporation; PPF \u2013 Pension Protection Fund.\u00a0<\/p>\n