Riyadh: The National Development Fund signed a memorandum of understanding (MoU) with global firm Northern Trust worth up to SAR12 billion during the Saudi-U.S. Investment Forum. The MoU aims to develop domestic and international investment strategies and establish a future commitment for Northern Trust to provide investment management services, in addition to managing global passive equity investments. The initiative supports financial sustainability and advances national development goals as part of broader efforts to enhance asset management efficiency and diversify global investments.

According to Saudi Press Agency, the fund said the MoU includes appointing Northern Trust as the custodian of the fund’s assets to provide asset transition management services in line with the best international practices in risk management and operational efficiency. The agreement also designates Northern Trust as the manager of a global equity portfolio to be managed on behalf of the fund, with the goal of maximizing investment efficiency and achieving sustainable returns that support the fund’s long-term objectives.

Under the agreement, a joint working group will be formed to develop an implementation plan and follow-up mechanisms to activate its provisions, in addition to exploring opportunities to develop innovative investment products that contribute to portfolio diversification and enhance the efficiency of asset management across the funds and development banks supervised by the National Development Fund.