Financial services firm Absa has been appointed master custodian to the Government Employees Pension Fund (GEPF) – Africa’s largest pension fund, with more than R3.5-trillion worth of assets under management.

Absa says this is one of the most significant custody mandates in South Africa’s institutional investment market.

As master custodian, Absa will be responsible for the safekeeping and administration of the GEPF’s investment assets, settlement of investment transactions, cash management linked to investments, reporting and broader custody coordination across the investment ecosystem, while supporting the fund’s governance and oversight requirements.

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,” says Absa Investor Services Group head Mosetsana Mahlafunya.

“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.”

Absa and the GEPF have a relationship spanning more than two decades, and the bank serves as a trusted institutional services partner that is capable of supporting mandates of this scale and complexity.

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, the bank assures stakeholders.

Absa has maintained a transactional banking relationship with the GEPF since 2001, and provided core banking services, including cheque deposit processing and electronic banking solutions.

These existing services will continue alongside the new Master Custodian appointment.

“We recognise that the stewardship of Africa’s largest pension fund carries enormous responsibility. At the centre 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,” says Absa Corporate and Investment Banking public sector client coverage head Francinah Madise.