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Britain’s twenty largest pension providers and insurers are set to launch a new investor-led partnership on Tuesday.
Sterling 20 to be established at regional investment summit birmingham On Tuesday, working with Government and City of London Corporation.
The government said the initiative will help promote affordable housing, improve broadband connections in rural areas and provide large-scale finance for growing businesses.
The government said L&G (Legal & General) has launched an investment campaign with a £2bn commitment by 2030, which will deliver around 10,000 more affordable homes and support the creation of 24,000 jobs across the country.
nest Schroders will also provide £500 million of capital – of which £100 million is expected to be deployed into UK investments over the coming years. In addition, Nest will invest £40 million to help bring reliable broadband to rural homes and businesses.
chancellor Rachel Reeves Said: “This is about building Britain back – bringing together our savings, our investors and our regions to deliver the homes, infrastructure and industries that will drive growth and create good jobs in every corner of the country.
“Our country’s pension funds are among the largest in the world. When they invest in the UK, everyone benefits – from construction workers on site, to small businesses on the high street, to savers seeing their pensions rise. Sterling 20 shows what can be achieved when we all work in the same direction to build a stronger economy that works for and rewards working people.”
Antonio Simões, group chief executive of L&G, said: “Our £2 billion commitment, targeted at housing, infrastructure and urban regeneration, will help unlock much-needed investment in productive assets across the country – creating jobs, strengthening communities and driving both regional and national growth.
Ian Cornelius, chief executive of Nest, said: “Every decision we make puts our members and their long-term outcomes first. We believe private assets can play a vital role in delivering strong, consistent returns for them.
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“That is why 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 to support economic growth across the country.
“We have already contributed approximately £4 billion to UK private markets, and by 2030 we expect this to grow to approximately £12 billion. A strong pipeline of opportunities will be essential to realizing this growth for the benefit of our members and the UK economy.”
Lord Mayor of London, Alistair King, said: “The Mansion House Agreement marks an important step forward in pension investment reform – building on the foundations of the Mansion House Compact and signaling a clear industry commitment to direct investment in UK growth.
“This next phase turns commitment into deployment by uniting leading UK investors around a shared vision and coordinated strategy with government.
“British enterprises, from AI to renewable energy and infrastructure, are ready to invest. Signatories to the Mansion House Agreement have stated their intention to deliver on the agreement’s promise of delivering a meaningful stake in UK growth while also boosting returns to British savers.”
Australia’s largest pension fund, AustralianSuper, will increase its investment in the UK housing market, the government said at the regional investment summit.
The fund will meet the Chancellor at the summit, and ahead of that, AustralianSuper has announced a new UK Living investment platform dedicated to investing in rental homes.
AustralianSuper’s Deputy Chief Investment Officer Damian Moloney said: “As the launch of our new £500 million UK Living Platform demonstrates, AustralianSuper continues to view the UK as a leading global investment destination. With the fund set to grow its UK assets to £18bn by 2030, we are looking forward to further facilitating investment between the two countries for the benefit of members. Looking forward to making.”
Pensions Minister Torsten Bell said: “Our pension system is one of the UK’s great strengths. We are accelerating the pace of pensions reform to support not only British pension savers but the British economy, supporting investment to grow communities up and down the country.”
The members of the Sterling 20 are Agon; Aeon; Aviva; L&G; Lifesite by WTW; Mercer; M&G; NatWest Cushion; Nest Corporation; Now Pension; People’s participation; Phoenix Group; Royal London; Smart Pension; SEI; TPT; USS – University Retirement Plan; Rothesay; PIC – Pension Insurance Corporation; PPF – Pension Protection Fund.