Retirement fund manager EPFO on Wednesday approved appointment of UTI AMC and SBI Mutual Fund as its fund managers for three years, according to a source.
Besides, the Employees’ Provident Fund Organisation (EPFO) also approved a proposal for early redemption of its investment of around ₹ 700 crore in bonds of troubled Dewan Housing Finance Corporation Ltd (DHFL), at its trustees’ meeting held in Hyderabad.
“The EPFO’s apex decision-making body Central Board of Trustees (CBT) headed by Labour Minister Santosh Gangwar has decided to appoint two fund managers UTI AMC and SBI Mutual Fund for a three-year term,” the source said.
The source further said, “The CBT also decided to exercise early exit option for redeeming its investment of around ₹ 700 crore in bonds of DHFL.”
The proposal to double minimum monthly pension Rs 2,000 under the Employees’ Pension Scheme, 1995, was deferred as employees’ representative demanded for higher amount, the source added.
The EPFO’s advisory body Finance, Audit and Investment Committee (FAIC) had finalised and recommended the names of three asset management firms -- HSBC AMC, UTI AMC and SBI Mutual Fund -- for their appointment as fund managers for three years beginning October 1, 2019.
The appointment of the fund managers for another term of three years had been pending with the EPFO since April last year. The body had appointed SBI, ICICI Securities Primary Dealership, Reliance Capital, UTI AMC and HSBC AMC for three year, 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 September 30.
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.