UK Pensions Invest in AI

Leading UK pension providers and insurers have created a coalition to increase investment in UK infrastructure, artificial intelligence, and fintech companies. Known as the “Sterling 20” group, the consortium will collaborate with the UK Office for Investment to find regional investment prospects. Legal & General and Nest have already committed billions to affordable housing and rural broadband. The UK Chancellor of the Exchequer is increasing pressure on pension funds to support the UK economy after years of domestic asset outflows. The government may take action to ensure pension funds invest in the domestic economy, though some investment managers are opposed. Pension providers have cited costs and performance fees as obstacles to investing in private markets.