UTI,ICICI among 11 AMCs in race to manage EPFO funds

Apart from the existing fund managers,seven new firms including Securities Trading Corporation of India and Birla Sunlife have sent their expression of interest (EoI),a source said.

The EPFO had invited expression of interest or request for qualification which were to be submitted by last evening. Based on these bids,it would issue request for proposals by February 25. The fund managers would be appointed for a three year period starting April 1,2011.

It has also engaged credit rating agency CRISIL for appointment of the fund managers as well as monitoring their performance for the next three fiscals on quarterly basis.

The shortlisted asset management companies would be given about 10 days time to submit their bids,sources said,adding that 15-20 more days would be required to prepare the list of successful bidders. The list of qualified bidders would be placed before the EPFO’s apex policy making body Central Board of Trustees for taking the final call. The decision of the CBT headed by the Labour Minister regarding appointment of fund managers would be final.

The EPFO trustees are likely to meeting on the second of the next month when this matter would be placed before them. EPFO had appointed four fund managers for the first time in July 2008 for managing its corpus with an idea of improving yields on investments. Earlier,State Bank of India was the sole fund manager for the EPFO as well as its banker.