Absa takes over from Standard Bank as custodian of South Africa’s R3.5 trillion pension fund
Absa has been appointed as the Master Custodian for the Government Employees’ Pension Fund (GEPF), which is Africa’s largest pension fund, managing over R3.5 trillion in assets.
Standard Bank acted as the custodian for the GEPF for thirty years, a role it has held since the fund’s establishment in 1996.
This responsibility officially transferred to Absa in August 2026, after they won a competitive contract to manage the safekeeping and administration of the R3.5 trillion portfolio.
The GEPF supports over 1.2 million active members and more than 565,000 pensioners and beneficiaries. Its assets exceed R3.5 trillion.
Absa reported that it has maintained a transactional banking relationship with the GEPF since 2001.
Since then, Absa has provided banking services to the GEPF, including cheque deposit processing and electronic banking solutions.
Absa said that these services will continue alongside the new Master Custodian appointment.
Absa said that this appointment represents one of the most significant custody mandates in South Africa’s institutional investment market.
The group said that this appointment strengthens the long-standing relationship between Absa and the GEPF, which has lasted more than two decades.
As the Master Custodian, Absa will be responsible for safeguarding and managing the Fund’s investment assets.
This includes overseeing the settlement of investment transactions, managing investment-related cash, and providing reporting services.
The role also includes coordinating broader custody functions within the investment ecosystem. Absa will also support the Fund’s governance and oversight requirements.
“We recognise that the stewardship of Africa’s largest pension fund carries enormous responsibility,” said Absa CIB Public Sector Head of Client Coverage, Francinah Madise.
“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,” said Madise.
Madise said that Absa does not take lightly the trust placed in institutions that support the Fund.
A change within the institution
The group said the decision to entrust such a significant responsibility to Absa reflects the bank’s institutional servicing capabilities.
In addition, it said this demonstrates advanced technology platforms, robust infrastructure, high governance standards, and a long-term commitment to the African custody market.
Absa explained that the appointment primarily reflects a change within the institution and its operations and does not directly affect the daily experiences of GEPF members or pension beneficiaries.
It said that over time, the custody framework is expected to improve governance, transparency, and oversight of the Fund’s assets, thereby helping to protect the long-term interests of its members.
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.
Absa Investor Services Group Head Mosetsana Mahlafunya said that much of a custodian’s work is performed behind the scenes.
Mahlafunya said that it plays a crucial role in maintaining the confidence and operational integrity necessary for the Fund and its stakeholders to make informed decisions.
“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,” said Mahlafunya.
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