Private fund managers for $60 bn provident fund (Lead)

July 29th, 2008 - 9:26 pm ICT by IANS  

New Delhi, July 29 (IANS) The Employees Provident Fund Organisation (EPFO) Tuesday selected three private fund managers, along with India’s largest commercial bank, to manage its corpus of Rs.240,000 crore (Rs.2,400 billion or $60 billion). “Around Rs.30,000 crore (Rs.300 billion) will be available as incremental accretion to these fund managers each year,” labour and employment secretary Sudha Pillai told reporters after the decision to engage private fund mangers for EFPO money.

Exuding confidence that the decision would have a positive impact on funds management, Pillai, also a member of the EPFO’s Central Board of Trustees (CBT), said: “Now funds will be better and professionally managed.”

The organisation’s trustees selected the asset management companies of HSBC, ICICI Prudential and Reliance Capital, along with that of the State Bank of India (SBI), to manage the fund that has 44 million members.

The finance and investment committee (FIC) of the organisation’s trustees earlier recommended the three private players as fund managers after they were found to be the lowest bidders, officials said.

EFPO invited bids in April from private fund managers to take care of its assets, a task so far singularly done by the state-owned SBI.

An official press communiqu

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