EPFO fund management: SBI outperforms HSBC, Rel Cap, I-Sec
New Delhi: State-owned SBI has outperformed private sector financial companies, including HSBC AMC, Reliance Capital AML and ICICI Securities PD, in providing returns on investments to the retirement fund body Employees Provident Fund Organisation (EPFO).
State Bank of India (SBI) provided the highest return of 9.31 percent to the EPFO during five-month period from November 1, 2011, to March 31, 2012. It was also more than the prescribed benchmark return of 9.24 percent.
According to an analysis made by rating agency CRISIL, the three private companies -- HSBC Asset Management Company, Reliance Capital Asset Management Company Ltd and ICICI Securities Primary Dealership Ltd -- provide returns below the benchmark of 9.24 percent during the period.
The credit rating agency CRISIL was appointed by the EPFO for monitoring the performance of the fund managers periodically.
EPFO, having a subscribers' base of about 50 million, has a corpus of about Rs 3 lakh crore. It has engaged four portfolio managers to make investment on its behalf for maximising returns.
HSBC Asset Management Company provided an yield of 9.23 percent during the five-month period followed by Reliance Capital Asset Management Ltd at 9.22 percent and ICICI Securities Primary Dealership Ltd at 9.20 percent.
According to the CRISIL report, Anil Ambani Group company Reliance Capital Asset Management Company Ltd was the worst performer during November 1 to December 31 in 2011 as it earned the lowest yield of 9.09 percent for the EPFO.
During the two months period which ended on December 31, 2011, HSBC was at the top as its returns of investments for the retirement fund body was 9.58 percent followed by SBI at 9.34 percent and ICICI Securities Primary Dealership Ltd at 9.14 percent.
The report further stated that SBI yields were the highest at 9.22 percent during the January-March quarter this year followed by Reliance Capital at 9.16 percent, ICICI Securities Primary Dealership Ltd at 9.10 percent and HSBC AMC at 8.98 percent.