The government has launched the ‘Sterling 20’ initiative, backed by the country’s largest pension funds, in a bid to coordinate greater backing for investment into the UK’s regions and infrastructure.
The announcement comes ahead of the first-ever Regional Investment Summit in Birmingham on Tuesday, where the Sterling 20 group will meet to identify key infrastructure projects across the UK.
Some of the UK’s largest fund managers, including L&G, Royal London and Aviva, have backed the initiative, with L&G saying it would invest £2bn in impact projects over the next five years.
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Meanwhile, Royal London Asset Management has targeted a £1bn investment in the UK’s healthcare and housing sectors.
“Our country’s pension funds are some of the biggest in the world. When they invest in Britain, everyone benefits – from the construction worker on site, to the small business on the high street, to the saver seeing their pension grow,” said chancellor Rachel Reeves.
“Sterling 20 shows what can be achieved when we all pull in the same direction to build a stronger economy that works for, and rewards, working people.”
Hans Georgeson, CEO at Royal London Asset Management, added: “Our investment strategy is shaped by our role as a modern mutual, focused on delivering long-term value for our members and the communities we serve.
“Our landmark infrastructure schemes include Atlantic Park in Bootle, where future occupiers will benefit from Freeport status, boosting trade and investment, while the launch of our Healthcare REIT enables us to meet the evolving needs of our aging population by providing care homes across the UK.
“We are actively supporting the growth of the UK’s life science and agricultural sectors, fostering innovation whilst providing food for the country and employment opportunities. These investments reflect our belief in doing the right thing for the long-term – building infrastructure that strengthens the UK’s future.”