UTI, LIC to bid for managing pension scheme

Written by Reuters | New Delhi, April 30: | Updated: Apr 30 2008, 16:35pm hrs
UTI Asset Management Co (P) Ltd and LIC Mutual Fund Asset Management Co Ltd will bid for management of the country's largest pension scheme, officials from the two fund houses said.

"Yes, we are bidding," UTI AMC chief executive officer, U.K. Sinha told Reuters on Wednesday.

LIC Mutual Fund, the asset management unit of Life Insurance Corp (LIC), India's biggest insurer, will also bid to manage the fund, which has a corpus of more than 1.56 trillion rupees, an official said.

The government-run Employees' Provident Fund Organisation (EPFO) has invited bids from asset managers to manage its flagship scheme by Wednesday. "We are expecting many responses," an EPFO official said.

The funds are allowed to invest only in bonds sold by the central and state government and not in equities.