DSP BlackRock Investment Managers (P) Ltd has decided to join as pension fund manager to manage the New Pension Scheme (NPS) corpus, while IDFC has pulled out after not renewing its tenure, sources said.
DSP BlackRock Investment Managers, which oversees assets worth over Rs 30,000 crore for DSP Blackrock MF, joins the existing managers — SBI Pension Funds (P) Ltd, UTI Retirement Solutions Ltd, ICICI Prudential Pension Funds Management Co Ltd, Kotak Mahindra Pension Fund Ltd and Reliance Capital Pension Fund Ltd and LIC Pension Fund (manages only funds of Government employees).
The Pension Fund Regulatory and Development Authority (PFRDA) appoints fund managers to manage retirement funds under the New Pension Scheme (NPS).
“DSP BlackRock Investment Managers has decided to join as a Pension Fund Manager to manage the NPS corpus under the revised Registration Guidelines-2012, and has also obtained in-principle clearance from PFRDA in this regard,” a senior PFRDA official said.
S. Naganath, President and Chief Investment Officer, DSP BlackRock Investment Managers, could not be reached for comments as he was travelling abroad.
“IDFC decided not to renew its tenure as a Pension Fund Manager which was expiring on October 31, 2012,” the PFRDA official said.
IDFC Pension Fund Management Co Ltd was set up in April 2009 as a joint venture between Infrastructure Development Finance Company Ltd (IDFC) and IDFC Asset Management Company Private Ltd (IDFC AMC).
Naval Bir Kumar, President & CEO of IDFC AMC, who is a nominee director at IDFC Pension Fund did not immediately respond to queries on the company’s pull out from NPS.
Based on the recommendations of the expert committee to determine the upper ceiling of the investment management fees to be charged by Pension Fund Managers in the private sector of NPS, the upper ceiling of the investment management fees was recently fixed at 0.25 per cent each year of the assets under management with effect from November 1, 2012.
This fee is inclusive of brokerage except custodian charges and applicable taxes.