Jio BlackRock: In a big move that will mark BlackRock’s presence in the country’s fast-growing asset management market, the financial services arm of Mukesh Ambani Jio Financial Services Ltd has joined hands with the world’s largest asset manager and BlackRock to set up an asset management company.
In an exchange filing on Wednesday, Reliance Industries said that Jio Financial Services Limited and BlackRock [NYSE: BLK] have agreed to form Jio BlackRock, a 50:50 joint venture that combines the respective strengths and trusted brands of BlackRock and JFS to deliver tech-enabled access to affordable, innovative investment solutions for millions of investors in India. The company said that JFS and BlackRock are targeting an initial investment of $150 million each in the joint venture, amounting to a combined investment of $300 million.
According to the company, the joint venture (JV) will be called Jio BlackRock. The Partnership aims to transform India’s asset management industry through a digital-first offering and democratise access to investment solutions for investors in India.
The New York-based firm ended the second quarter with $9.4 trillion in assets under management (AUM), up from $8.5 trillion a year earlier and $9.1 trillion in the first quarter.
Commenting on this development, Rachel Lord, Chair & Head of APAC, BlackRock, said, “India represents an enormously important opportunity. The convergence of rising affluence, favourable demographics, and digital transformation across industries is reshaping the market in incredible ways. We are very excited to be partnering with JFS to revolutionise India’s asset management industry and transform financial futures. Jio BlackRock will place the combined strength and scale of both of our companies in the hands of millions of investors in India.”
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Meanwhile, Hitesh Sethia, President and CEO of JFS, said, “The partnership will leverage BlackRock’s deep expertise in investment and risk management along with the technology capability and deep market expertise of JFS to drive digital delivery of products.”
After this joint venture, Jio BlackRock will be the 44th player in the Indian mutual fund industry which is currently dominated by SBI Mutual Fund, ICICI Prudential Mutual Fund and HDFC Mutual Fund.
Today, RIL shares traded 0.32% lower at Rs 2,518.10 per share at 12:48 pm IST.