Max Life Insurance Company announced on Friday that its subsidiary has received a Certificate of Commencement of Business (COB) from the Pension Fund Regulatory & Development Authority (PFRDA).
The pension assets of the national pension scheme will be managed by Max Life Pension Fund Management Limited, a subsidiary of the life assurance company.
The fund manager, which was set up with an initial capital of Rs 50 crore, is expected to start operations in October, according to Max Life Managing Director and CEO Prashant Tripathy.
He also said the CEO of the pension fund arm had been appointed and other key staff would soon be in place.
Except for the ‘default scheme’, the Pension Fund will manage pension assets with the aim of raising Assets Under Management (AUM) to Rs 1 lakh crore over the next ten years, he said .
With this development, the company and the pension fund will now provide services for all product categories, including annuities, pension products and pension fund management, to help clients prepare for retirement.
According to him, the Pension Fund is also in the process of applying for Point of Presence (POP) registration with the pension fund regulator PFRDA to provide services that will help subscribers open new NPS accounts.
“Max Life Pension Fund Management Limited is expanding our presence in the retirement market. We will use our competitive fund management capabilities and Max Life’s distribution strength, including our commercial teams, to raise awareness of the NPS and drive value for our clients,” he said.
The pension fund seeks to maximize risk-adjusted returns for its policyholders on a consistent, long-term basis while adhering to PFRDA guidelines.