In a significant move, Jio Financial Services Limited (JFS) has announced a collaboration with American investment giant BlackRock, with the JV being called, Jio BlackRock. This 50:50 joint venture harmonises the capabilities and esteemed identities of BlackRock and JFS. The objective is to provide technologically enhanced accessibility to innovative and budget-friendly investment opportunities for countless Indian investors
Established in 1988 as an enterprise risk management and institutional asset manager specialising in fixed income, BlackRock, Inc. is a prominent American multinational investment firm headquartered in New York City
BlackRock has evolved into the globe's largest asset manager, overseeing an impressive $9.4 trillion in assets as of June, 2023. This is more than the GDP of every country in the world, except USA and China
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If you look up the major shareholders of any major company in the world, including Apple, Microsoft, Nvidia, JP Morgan, Visa, Pepsi, Coca-Cola, Meta, Tesla, Google, Amazon and Chevron, you will find BlackRock as one of the major investors in the companies. From equities to owning assets around the world and now even a shareholder in the football club Manchester United, BlackRock has money in almost every asset class of the world
BlackRock holds significant shares in diverse global sectors such as technology, oil and gas, retail, major banks, healthcare, weapons production, and beyond. This positions BlackRock as a formidable corporate force on a global scale, exerting its impact across every facet of our everyday existence
BlackRock has been criticised for several initiatives it took including ESG (Environment Sustainability Governance) scores. The company while advocating for limiting carbon emissions to fight against climate change, has profited from its stake of $21.8 billion in Chevron and $30.5 billion in Exxon Mobil; two major oil companies in US
According to the CEO of JFS, Hitesh Sethia, the partnership will leverage BlackRock’s expertise in investment and risk management along with the technology capability and deep market expertise of JFS to drive digital delivery of products. Larry Fink, Chairman and CEO of BlackRock also conveyed his enthusiasm regarding the collaboration said, “Today marks a major move for BlackRock as we work to expand our footprint through a forthcoming joint venture in India with Jio Financial Services.”
This recent development marks BlackRock's second endeavour to establish a presence in India's thriving asset management sector. Back in 2018, the American investment management company concluded its decade-long operation in India by divesting its 40% ownership in an asset management collaboration with DSP Group
BlackRock and Jio Financial Services have set their sights on an initial investment of $150 million each for their equally divided enterprise. This new venture aims to facilitate tech-driven accessibility to "innovative and affordable" investment solutions, catering to numerous Indian investors. Jio Financial Services, following the demerger from Reliance Industries, achieved a valuation of approximately $20 billion in a special session conducted by Indian exchanges
Although experiencing robust expansion, the adoption of financial investment products in India remains relatively limited given the nation's economic scale. As indicated by a May report from local brokerage AngelOne, the ratio of mutual fund assets under management to India's gross domestic product stands at 16%, in contrast to the global average of 63%
The asset management sector in India has undergone swift expansion in the last few years, now boasting assets under management worth 44.3 trillion Indian rupees ($540.4 billion). Jio BlackRock would be looking to capture a significant portion of the market by providing latest innovations in financial instruments and products