Absa has strengthened its long-standing relationship with the Government Employees Pension Fund (GEPF) after being appointed master custodian for the fund’s investment assets.
Source: Wikipedia.
The mandate expands a partnership spanning more than two decades and reinforces Absa’s role as a trusted institutional servicing provider capable of managing complex, large-scale requirements.
As master custodian, Absa will oversee the safekeeping and administration of GEPF’s investment assets, settlement of transactions, investment-related cash management, reporting and broader custody co-ordination. The appointment will also support the fund’s governance and oversight requirements as it manages assets on behalf of millions of members.
“We recognise that the stewardship of Africa’s largest pension fund carries enormous responsibility. At the centre of this appointment are the livelihoods and long-term financial security of millions of South African public servants, pensioners, and their families, and we do not take lightly the trust placed in institutions that support the fund,” said Francinah Madise, Sector Head: Public Sector (client coverage) at Absa CIB.
Entrusting a responsibility of this scale to Absa speaks to the strength of the bank’s institutional servicing capability, technology platforms, infrastructure, and governance standards, as well as its long-term commitment to the African custody market.
Strengthening long-term oversight
The appointment is primarily an institutional and operational change and does not directly affect the day-to-day experience of GEPF members or pension beneficiaries. Over time, the strengthened custody framework is expected to support improved governance, transparency, and oversight of the fund’s assets, contributing to the protection of members’ long-term interests.
“Much of the work performed by a custodian happens behind the scenes, but it plays an important role in maintaining the confidence and operational integrity that enables the fund and its stakeholders to make informed decisions,” said Mosetsana Mahlafunya, Group Head: Absa Investor Services. “Our relationship with the GEPF has developed over many years, and we have taken the time to understand its requirements to deliver the level of support and consistency the fund requires over the long term.”
The GEPF serves more than 1.2 million active members and over 565,000 pensioners and beneficiaries, with assets worth more than R3.5tn. Absa has maintained a transactional banking relationship with the GEPF since 2001, providing core banking services including cheque deposit processing and electronic banking solutions. These existing services will continue alongside the new master custodian appointment.
