DSP BlackRock has been in the news for two big reasons – that of the JV coming to an end and the supposed exit of CIO Anup Maheshwari. While neither of the two news is confirmed, many news reports suggest the rumors might be true.
DSP Group and BlackRock Joint Venture in Jeopardy?
Business Standard reported on 23rd April 2018 that the DSP Group and BlackRock have started discussions about ending their existing 60:40 joint venture (JV) in the asset management company DSP BlackRock.
Also, according to the report, BlackRock is keen on continuing the business alone and is considering buying out DSP’s 60% stake in the asset management firm.
Moneycontrol had emailed DSP BlackRock Investment Managers with a query pertaining to the split from the joint venture.
The company’s reply was: “The stake sale is highly speculative. We strongly deny this.”
According to Financial Express, it seems that while there is some agreement on the structure of the deal, talks about valuation may take a little longer to be ironed out.
With the strong brand credentials of DSP BlackRock AMC, its ranking among the mutual fund industry (9th among over 40 AMCs on AUM) and the strong growth in the mutual fund business of Indian (AUM for Q4 FY18 grew 26% for the industry), a higher valuation cannot be ruled out.
For more details, read : DSP Group-BlackRock AMC JV may be headed for a split: Report by Moneycontrol.com
In the past too, DSP Group and BlackRock have made news for similar reasons.
DSP BlackRock AMC’s CIO decided to leave the firm
In the news is Mr. Anup Maheshwari, chief investment officer (CIO) – equities, on his way out from the firm.
DSP BlackRock mutual fund has seen a spate of exits in the past few months. Around half a dozen of these people are those who had spent more than a decade with the firm said sources.
President and CIO, Mr. S Naganath, for instance, quit in May last year after 15 years at the firm.
Mr. Dhawal Dalal, another old hand at the DSP BlackRock, had quit in July 2016.
Anup Maheshwari played an important role as he took over as CIO equities in 2017 after Naganath decided to leave.
The Indian mutual fund industry was surprised with Naganath’s exit and many started thinking aloud if Naganath’s resignation would affect the performance of the schemes offered by the firm.
Who is Anup Maheshwari?
An alumnus of IIM Lucknow, Maheshwari had joined DSP BlackRock Investment Managers Pvt. Ltd. in July 1997. He was managing the domestic funds between May 2001 to June 30, 2012.
Maheshwari had also worked as a CIO at HSBC Asset Management between Dec 2005 and May 2006 before returning to DSP BlackRock Investment Managers.
Between 1997 and 2000, Maheshwari also managed an offshore fund, the Merrill Lynch India Fund which was registered in Mauritius and sold to Merrill Lynch’s clientele outside India.
Prior to joining DSP BlackRock Investment Managers, he worked with Chescor, a British fund management firm that managed three offshore funds investing in Indian equities.
For more detail, Read: This week in MFs: DSP BlackRock MF’s Anup Maheshwari puts in his papers
What Should DSP BlackRock Investors Do?
Senior Managers and CIOs leaving fund houses is nothing new.
According to Deepak Chhabria, chief executive officer, and director, Axiom Financial Services Ltd., “All processes and systems at DSP BlackRock are in place. Uncertainty definitely disturbs investors, especially in volatile markets, though it may have nil or minimum impact. But I don’t think it will impact investors at DSP BlackRock much. Promoter background is also good,”.
Also, Mr. Anup has been a stabilizing factor at the fund house for many years and the fund house is in a much better shape now. If he indeed leaves, he will leave the fund house in very good shape.
Moreover, this latest news is yet to be confirmed by the DSP BlackRock Mutual Fund.
DSP BlackRock Mutual Funds: Details
DSP BlackRock Investment Managers Pvt. Ltd is a joint venture between the Indian based DSP Group & USA based BlackRock. In past this AMC was called as DSP Merill Lynch, but was renamed after the takeover of Merill Lynch by BlackRock. It is a good & one of the very old fund houses in India to invest in.
The DSP Group, headed by Hemendra Kothari, is one of the oldest financial services companies in India and BlackRock is the world’s largest asset manager, with over $6 trillion in assets under management (AUM).
DSP BlackRock Investment Managers Pvt. Ltd is one of the top 10 fund houses in India and managed assets worth about ₹860 billion as on March 31, 2018. Lets read about some of the latest buzz on DSP BlackRock fund house.
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