LGPS to join Sterling 20 in expansion next year
Published: October 21, 2025
The LGPS is expected to join the newly launched Sterling 20 in an expansion of the initiative early next year.
It comes as senior members of the LGPS, including LPPI and LGPS Central, witnessed the initiative’s launch at the first-ever Regional Investment Summit in Birmingham.
LGPS Central’s chief executive Richard Law-Deeks said: “As a Local Government Pension Scheme asset manager soon to have responsibility for investing around £100bn of assets for our partner funds, we are fully committed to working with government on producing a pipeline of investible opportunities in central England and the wider UK.”
LPPI’s chief executive Chris Rule said: “Bringing together capital and expertise can achieve investment goals beyond any individual investor’s reach.”
The Sterling 20 is a new investor-led partnership that will see 20 of the UK’s largest pension funds and insurers work with government and the City of London Corporation to “channel” the nation’s savings into key infrastructure, as well as growth businesses in sectors such as AI and fintech.
As part of this, L&G committed to investing £2bn into delivering 10,000 affordable homes by 2030, while Nest will provide Schroders Capital with £500m – of which £100m is expected to be channelled into UK investments in the coming years.
The summit also saw Australia’s largest pension fund AustralianSuper commit to increasing its investment in the UK housing market.
Chancellor Rachel Reeves said: “This is about getting Britain building again – bringing our savings, our investors and our regions together 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 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.
“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.”
Pensions minister Torsten Bell added: “Our pensions system is one of the UK’s great strengths. We’re stepping up the pace of pension reform to support not just British pension savers but the British economy, supporting investment to deliver the growth of communities up and down the country.”
