The UK government has launched a new initiative called 'Sterling 20' to encourage the country's largest pension funds to invest more money into domestic infrastructure and businesses.
The government wants to create a more coordinated effort among the UK's 20 largest pension funds, alongside the City of London Corporation, to channel pension savings into local projects to stimulate economic growth and create jobs.
Funds will be directed towards British infrastructure, affordable housing, regeneration schemes, and high-growth sectors like Artificial Intelligence.
Legal & General (L&G) pledged to invest £2 billion in UK "impact" projects over five years, which will include developing 10,000 affordable homes.
Nest also committed to investing around £100 million in UK assets.
This initiative is part of a wider drive to reverse a trend where UK pension funds invest a relatively small percentage of their assets domestically compared to other countries. The announcement also comes ahead of Finance Minister Rachel Reeves' budget in November, where potential tax rises could affect business confidence.
