South Africa’s Government Employees Pension Fund (GEPF), the largest pension fund in Africa, has reappointed Standard Bank to provide a comprehensive range of investor services product and service solutions for its portfolio of assets currently worth over R2-trillion.
This follows the conclusion of the most recent five-year contract between the parties. Under the new agreement, Standard Bank’s master custody and investment reporting mandate has been expanded to include securities lending among other services.
The renewal of the mandate cements Standard Bank’s position as Africa’s largest provider of custody and related services. As Africa’s largest custodian, the group’s assets under custody, administration, and trusteeship have risen to more than R10.3 trillion (USD 708 billion) as of 31 December 2020.
Under the new mandate, Standard Bank will provide custody services in South Africa, Africa Regions, and international markets. These services will be combined with securities lending and rendered together with an investment reporting solution that includes investment accounting, mandate compliance monitoring, performance and risk reporting services for all of the GEPF’s listed and unlisted investment portfolios.
“We are pleased to have been re-awarded this contract following a competitive tendering process,” said Kenny Fihla, Chief Executive for Corporate and Investment Banking at Standard Bank. “We believe our reappointment as the sole custodian and investment reporting agent for Africa’s largest asset owner is testament to our strong capabilities in this area.”
The GEPF, whose assets are managed by the Public Investment Corporation (PIC), has more than 1.2 million active members from over 325 government departments, and about 450,000 pensioners and other beneficiaries.
Adam Bateman, Head of Business Development for Standard Bank Investor Services, said Standard Bank has acted as custodian to GEPF since the fund’s inception in 1996 and in 2015 expanded its mandate with the fund to include investment reporting services. Standard Bank’s integrated custody and investment reporting solutions will provide the GEPF with asset safety and independent valuations, alongside other services designed to monitor fund manager mandates and mitigate risk.
Standard Bank will partner with The Bank of New York Mellon, building on their 23-year strategic relationship, to deliver on the GEPF mandate.
“Our partnership with BNY Mellon has allowed us to enhance and grow our investor services business reach in supporting large cross-border asset owners and asset manager mandates such as this,” Bateman said.