UK Pension Providers Team Up in Push for Infra, AI Investments

Group 1 - The "Sterling 20" group has been formed by some of the UK's largest pension providers and insurers to increase investments in infrastructure and fast-growing sectors like artificial intelligence and fintech [1][2] - The group will collaborate with the UK's Office for Investment to identify regional investment opportunities, coinciding with a regional investment summit hosted by the government [2] - Legal & General Group Plc and the government-backed pension fund Nest have committed billions to enhance affordable housing and improve broadband in rural areas [3] Group 2 - The UK Chancellor has urged pension funds to enhance their support for the domestic economy, especially after observing years of outflows from domestic assets [4] - Although UK pension funds have doubled their investment in unlisted equities over the past year, they still fall short of the levels required to fulfill their commitment to support private businesses [4] - The government has indicated it may exercise "reserve power" to compel pension funds to invest in the domestic economy, a move opposed by investment managers who argue that investment decisions should be left to clients [5]