INDIA - The State Bank of India (SBI), UTI Asset Management and the Life Insurance Corporation (LIC) have been appointed to manage part of the R17bn (US$400m) government pension fund.
The three haven beaten competition to offer alternative products to central and state government employees.
These will include risk-free options with funds investing in government bonds as well as share market-linked products.
Following the appointments, the three institutions will now be required to set up separate pension management companies over the next four to six months.
Commenting on the process, an official statement from the Pension Fund Regulatory and Development Authority (PFRDA) constituted committee, said the winning entities were the best value bidders “based on the overall evaluation, including technical and commercial parameters".
During the appointment process, only entities in which the government held a 51% stake and R10,000 (US$248m) in assets under management were eligible to bid. However, 26% in foreign investment from fund managers was permitted.
PwC, KPMG, EY and Deloitte must break up their consultancy and audit businesses into distinct firms to provide greater focus on the "most challenging and objective audits", the competition watchdog has said.
The Department for Work and Pensions (DWP) has released its first batch of guidance setting out how the guaranteed minimum pension (GMP) conversion legislation may be used to resolve unequal payments.
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