EPFO joins hands with IIM-B to sharpen portfolio management capacity

EPFO joins hands with IIM-B to sharpen portfolio management capacity

Employees Provident Fund Organization (EPFO) joined hands with Indian Institute of Management Bangalore (IIM-B) to create a pool of finance and investment professionals as its corpus continues to bulge.



Highlights:
  • The pension fund already got a batch of its officers trained in July and is sending another batch beginning 30 September for an advanced training program on finance and investment
  • At IIM-B, the officers will be trained with special emphasis on options and derivatives, portfolio selection and diversification, behavioural finance, and portfolio monitoring.
  • EPFO is a social security and finance organisation, most of its officers are not well trained finance professionals. We wish to train and create a pool to handle the EPFO corpus better. This will bring professionalism, more domain expertise and vision on how to manage the money better.
  • EPFO professional fund managers in the form of asset management companies (AMCs) to take care of its investments. In August, the central board of the EPFO decided to appoint two asset management companies UTI AMC and SBI Mutual Fund, as its fund managers for three years beginning October 2019. The body had appointed SBI, ICICI Securities Primary Dealership, Reliance Capital and HSBC AMC for a three-year term, starting April 1, 2015.
  • EPFO has a corpus of over Rs. 11 trillion and every year, their annual accrual is more than Rs. 1.25 trillion. Of the annual accruals, it invests 15% in stocks via select exchange-traded funds (ETFs) and rests in debt instruments, including government and select corporate bonds.

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