EPFO Likely To Appoint HSBC AMC, UTI AMC, SBI Mutual Fund As Fund Mangers
A customer waits to deposit Indian 100 rupee banknotes at a counter inside an Axis Bank Ltd. branch in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

EPFO Likely To Appoint HSBC AMC, UTI AMC, SBI Mutual Fund As Fund Mangers

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The Employees Provident Fund Organization is likely to appoint HSBC Asset Management Company, UTI Asset Management Company and SBI Mutual Fund as its fund managers for three years.

The Finance, Audit and Investment Committee has finalised and recommended names of the three asset managers to be appointed as fund mangers of the retirement fund body for three years beginning Oct. 1, a source said.

Now, the proposal finalised by the EPFO advisory body would be placed before the Central Board of Trustees headed by Labour Minister on Aug. 21 for final approval, the source said.

The appointment of the fund managers for another term of three years has been pending with the EPFO since April last year. The body had appointed SBI, ICICI Securities Primary Dealership, Reliance Capital and HSBC AMC for a three-year term, starting April 1, 2015.

Thereafter, the EPFO gave many extensions to the five fund managers. Now the extended term of the five fund mangers would expire on Sept. 30.

Earlier this year, the EPFO had made it clear that State Bank of India as a bank could not continue as fund manager of the body. Therefore, SBI’s asset management firm SBI Mutual Fund had submitted bids in this round of bidding for appointment as fund manager.

The source said the names of three asset management firms have been finalised based on their performance in the past years.

The EPFO had appointed multiple fund managers for the first time in July 2008, for earning better rate of return on deposits for its subscribers. Before that, SBI was the sole fund manager for the retirement fund body since its inception in 1952.

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