Northern Trust Asset Management and PIF sign a memorandum of understanding

• PIF deepening relationships with global investment managers to support growth of Saudi Arabia’s asset management market
• Northern Trust Asset Management to expand capabilities and solutions in Saudi Arabia

Northern Trust Asset Management (NTAM), a leading global investment management firm, and PIF have signed a non-binding memorandum of understanding (MoU).

The MoU, which expects to see the launch of an up to US$1 billion Saudi mandate, aims to support growth in Saudi Arabia’s capital markets and asset management sector, aligned to the Saudi Vision 2030 initiative.

The signed non-binding MoU, which is subject to satisfying certain necessary conditions, including obtaining all regulatory and internal approvals, among other specified milestones, expects to see the launch of an index strategy for the market and leverage Northern Trust’s integrated technology platform, global scale and decades of experience in portfolio management and trading.

PIF is one of the world’s most impactful investors, enabling the creation of new sectors and opportunities that will help shape the global economy, while driving the economic transformation of Saudi Arabia.

This MoU complements a series of PIF initiatives to promote further growth in the Saudi capital market ecosystem and enable a more robust international investment management sector based in Saudi Arabia.

“We are pleased to signal the start of this important strategic partnership and look forward to developing a long-standing relationship with PIF, supporting their needs as they drive opportunities and progress in the region,” said NTAM President, Daniel Gamba “We are committed to expanding our asset management capabilities and presence in the dynamic and rapidly expanding Saudi financial market as part of our strategy for growth across Europe, Middle East and Africa.”

Northern Trust has served clients across the Middle East for more than 35 years. In 2023 it announced the establishment of its regional headquarters for the Middle East in Saudi Arabia and will now see the expansion of its asset management footprint in the Kingdom.