Absa has been appointed as the Chief Custodian for the Government Employees Pension Fund (GEPF), whose assets exceed 3.5 trillion rand. This appointment places on Absa the responsibility for safeguarding and managing the fund's investment assets, including conducting investment operations, managing investment-related cash, and reporting.
The bank assumes this obligation from Standard Bank, which served as the custodian for GEPF for 30 years. Francinah Madise, Head of Public Sector (Client Service) at Absa CIB, noted that this appointment is a significant responsibility given the fund's role in supporting public servants, pensioners, and their families.
Madise emphasized that the bank understands the burden of managing the country's largest pension fund. She stated: 'We recognize that managing Africa's largest pension fund carries immense responsibility. At the heart 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 supporting the Fund.'
Absa announced that this appointment expands its cooperation with GEPF, which has lasted for over two decades. Furthermore, the bank will be responsible for coordinating custody services, as well as supporting the fund's requirements in terms of governance and oversight.
The bank clarified that this change is institutional and operational in nature and will not directly affect the daily experience of GEPF participants and pensioners. Mosetsana Mahlafunya, Head of Absa Investor Services, noted that much of the custodian's work happens behind the scenes, but it plays a vital role in maintaining confidence and operational integrity, allowing the Fund and its stakeholders to make informed decisions.
He added that the bank's relationship with GEPF has evolved over many years, and they have taken time to study the fund's requirements to ensure the long-term support and stability that the Fund demands.