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UTI AMC submits bid to handle PF corpus

NEW DELHI: Country’s third largest fund manager UTI Asset Management Company has submitted bid for management of the Employees’ Provident Fund Organisation’s (EPFO) corpus of over Rs. 1.55 lakh crore.

“We have already submitted Expression of Interest for the management of EPFO’s fund,” UTI AMC Chief Executive Officer U. K. Sinha told PTI.

The EPFO, the country’s largest pension fund having over four crore subscribers, is being managed by a single fund manager.

When asked whether it would float a separate subsidiary for the management of pension fund, Mr. Sinha said the asset managers had just submitted bids and the modalities would be worked out later. A fortnight ago, the EPFO had invited bids from fund managers and portfolio managers for efficient management of the corpus.

According to the advertisement inviting bids, as on March 31, 2007, the EPFO corpus was over Rs. 1.55 lakh crore at the face value excluding the balance lying in the public account.

The appointed fund managers will have to invest the funds as per the prescribed investment pattern issued by the Ministry of Labour and investment guidelines issued by the EPFO from time-to-time, it had said.

As per the existing pattern, the corpus can only be invested in bonds issued by Central, State governments and state-run companies.

The EPFO paid 8.5 per cent interest rate to its subscribers during 2007-08. The interest rate has come down substantially from over 10 per cent some years ago.

The EPFO manages schemes like the flagship Employees’ Provident Fund, the Employees’ Pension Fund and the Employees’ Deposit Linked Insurance Fund. — PTI

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