UTI MF arm best bidder for non-govt pension funds

MUMBAI: UTI Retirement Solutions , UTI Mutual Fund���s fully owned subsidiary, has emerged as the best bidder for the government���s proposed scheme for those not covered by its pension system. At a fee of Rs 9 for every Rs 10 lakh of pension money it would manage , the UTIMF arm���s bid was half its nearest competitor Reliance MF, sources said.

On Friday, Pension Fund Regulatory and Development Authority (PFRDA) selected six asset management companies to manage pension of citizens other than government employees. After two rounds of bidding, these six were selected from a group of 15 companies willing to manage the pension money. Besides UTIMF and Reliance MF, ICICI Prudential Life Insurance, IDFC MF, SBI and Kotak MF also qualified.

Top UTIMF officials confirmed that they were the best cost bidders among the 21 initially in the race. All the five fund managers now have to agree at UTI RSL���s rate of Rs 9 for every Rs 10 lakh of funds managed. Those who did not make the cut included subsidiaries of LIC, IDBI Capital Markets, Birla Sun Life MF, DSP Blackrock MF, HDFC MF, Bharti AXA MF and Bajaj Allianz Life Insurance.