The government has launched the Sterling 20 club, comprising 20 of the biggest pension funds in the country.
If you are investment planning in Cheshire or the wider UK, it is hoped that these will provide more funding for local business, new homes, artificial intelligence and infrastructure projects. The funds include money providers such as Legal & General, Aviva and M&G, in addition to the Universities Superannuation Scheme.
Sterling 20 is the latest initiative by the government to secure more private investment in the UK. Members of the club will partner with the government and the City of London Corporation to increase the amount of pension savings available for investment. Pension fund Nest announced that it has plans to invest about £100 million in UK assets via its money manager Schroders Capital. Legal & General has also confirmed a 5-year plan to invest a further £2 billion in infrastructure and housing, following a previous 2022 commitment to invest £2.5 billion in build-to-rent property.
In recent years, institutional investors have been taking a greater interest in residential housing. These include overseas pension fund leaders such as AustralianSuper, the largest in Australia. It announced a £500 million 12-month initial commitment to invest in various UK residential projects. Office for National Statistics data for 2025 has revealed that the rented housing market in the UK has seen average rents rise by around 8.7% over 12 months.
The Sterling 20 initiative follows on from the Mansion House Accord, which was agreed earlier in 2025. Under the terms of that voluntary commitment, 17 UK pension providers will invest a minimum 5% of default fund assets in British private markets by 2030.
