Industry experts have broadly welcomed the anticipated launch of a new investor-led partnership, the Sterling 20, with many hopeful that the project will help deliver a strong pipeline of investment opportunities for UK pension schemes.

The initiative is set to be officially launched by the Chancellor, Rachel Reeves, at the Regional Investment Summit in Birmingham tomorrow (21 October), with backing from twenty of Britain's largest pension providers and insurers.

Industry associations welcomed the news, with Association of British Insurers (ABI) director general, Hannah Gurga, describing the initiative as a "bold step" towards unlocking the industry's full potential.

"Savers interests must always be at the heart of investment decisions, but with a co-ordinated approach we can work together to support a stronger economy today and savers’ futures tomorrow" she stated.

Adding to this, Pensions UK executive director of policy and advocacy, Zoe Alexander, said: “Pensions UK has long called for greater momentum to build the pipeline of suitable assets to enable schemes to deliver on the Accord.

"We are pleased therefore to see the Office for Investment showing leadership to drive what we hope will be a productive dialogue and improve access to UK assets that work for schemes and their memberships.

“We are also pleased that the Local Government Pension Scheme will be involved in these discussions, given its critical role in the UK economy and successful record of local investment.”

The news has also been celebrated by the members of the new initiative, which include all 17 signatories of the Mansion House Accord, alongside annuity providers Rothesay and Pension Insurance Corporation (PIC), and the Pension Protection Fund.

People's Pension chief executive officer, Patrick Heath-Lay, for instance, said that the group was "delighted to be able to support this very important initiative, which seeks to identify a continuous pipeline of projects for major pension schemes like ours to invest in for the benefit of our members".

Mercer president and CEO, Benoit Hudon, highlighted the initiative as a "genuine opportunity" for pension funds, while Phoenix Group CEO, Andy Briggs, described it as a "landmark initiative", bringing together the scale and strength of the UK’s pension and insurance sector to invest in Britain’s future.

NatWest Cushon, chief investment officer (CIO), Veronica Humble, also stressed that this was not just another promise, arguing that "this is about the industry rolling up its sleeves and making real progress towards the Mansion House Accord commitment".

"We need to invest in great projects throughout the UK to put savers’ money hard at work in their own communities," she stated.

"There’s a great opportunity to engage customers by investing in things that genuinely improve their standard of living and their communities, as well as grow their pension pots.

“We are continually working on our pipeline of investments that not only offer growth and diversification for our customers, but also invest in infrastructure, homes and businesses that help improve their standard of living and the communities they live in.”

TPT Retirement Solutions chief executive officer, David Lane, also emphasised the need to focus on a pipeline of assets, arguing that this is a "central element" to the Mansion House Accord.

"We’re hopeful that by working together the supply of compelling investment propositions – from infrastructure to housing - will continue to grow and deliver tangible positive impacts for people across the UK," he continued.

This was echoed by Nest CEO, Ian Cornelius, who said: "We have already committed around £4bn to UK private markets, and by 2030 we expect this to rise to around £12 billion. A strong pipeline of opportunities will be essential to realising this growth for the benefit of our members and the UK economy.”

Adding to this, Smart Pension CEO, Jamie Fiveash, said: "The pensions industry has the power to drive real economic growth and lasting social impact for this country by creating jobs, powering communities, and supporting innovation.

"We are pleased to be one of the organisations joining forces with the government to leave a legacy not only for our members, but also for the country’s critical infrastructure and businesses.”

However, LCP partner, Stephen Budge, cautioned that whilst it is "great" to see further commitments being made to invest in the UK, "we need to be careful that UK pensions don’t just aim to fix UK Plc problems".

"The focus must be on driving opportunities for global growth," he stated.

"These commitments, coordinated by the government, are increasingly focusing on property and infrastructure, which are very UK-centric needs and opportunities. After all, we do love our homes, and this does little to increase the UK’s development of global businesses of the future.

“The government agreed to a number of ‘critical enablers’ as part of supporting the Mansion House Accord 2030 targets, which included ‘a pipeline of UK investment opportunities’. Let’s hope we see support for growth in a wider range of asset class opportunities.”

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