Out of the four fund managers appointed by the EPFO in September 2008, Reliance Capital came at the bottom, giving only 8.53 per cent return, which is even below the prescribed benchmark of 8.57 per cent, a source said.
The source said as per the latest performance evaluation by the EPFO, the other two fund managers--HSBC and SBI-- provided returns of 8.64 per cent and 8.58 per cent, respectively, during the period under review.
The performance of the four fund managers has been evaluated on the basis of a composite score which includes 80 per cent weight to return on investment and 10 per cent each to average maturity and asset quality. This performance benchmark has been developed by Crisil, the official consultant of EPFO. However, the EPFO rejected this method at a meeting of its advisory body, Finance and Investment Committee, on Wednesday.
The Organisation pointed out in the performance evaluation report placed before the committee, "it is the actual yield (return on funds invested) generated which is the true parameter for measuring the performance."
"The EPFO is getting tough on fund managers because their contract period would end on March 31, 2011," the source said, adding "those fund managers who would not perform, would not stand a chance to get another contract of managing EPFO money for a three-year period starting from April 1, 2011".
He further said, "EPFO has already started the process of appointing fund mangers for three year starting from April 1, 2011 by constituting a committee for the purpose."
The panel will have three EPFO officials, one representative each for employees and employers on its board. However, the name of the officials and other representatives have not been announced so far.
SOURCE;ET
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