Global financial services firm Apex Group has won a five-year contract extension to provide fund administration and platform services to the Eskom Pension and Provident Fund (EPPF).
The EPPF, which had R169bn in assets under (AUM) management at end-June 2022, issued a tender invitation in 2022 to provide investment fund services. It selected Apex from a pool of top local and global banks and fund administrators.
In terms of the contract Apex will provide the EPPF with fund administration services and a turnkey portfolio management platform.
The five-year contract effectively extends an agreement with Maitland International, the SA-founded firm that Apex bought out in January. It had been providing the EPPF with fund management and administration services for the past eight years.
“It was important for us to build on that relationship,” said EPPF CEO Shafeeq Abrahams. “Apex Group understands how important all our stakeholders are in the process and have given us a comprehensive solution, which is ultimately to the benefit of our members.”
Apex was established in Bermuda in 2003 and has more than 80 offices in 38 countries with more than 12,000 employees. The firm only recently entered the SA market after its acquisition of Sanne Group in late 2022, followed by the purchase of Maitland in January and Efficient Group in March.
One of the reasons for the EPPF’s selection of Apex was its end-to-end fund management ecosystem, which allows for the automation of the full trading life cycle from order management to fund reporting. Maitland’s proven track record of investment fund administration services to the EPPF also counted in its favour.
Additional considerations included Apex Group’s Level 1 broad-based BEE classification and its contribution to the Youth Employment Service (YES), an initiative designed to boost job creation.
Apex has also said it plans to use SA as a hub for its fund administration operations and hire about 500 people in Johannesburg alone over the next 12 months.
The EPPF manages a portion of its assets in-house using its own portfolio managers while a significant chunk is allocated to local and international third-party fund managers.
Apex will provide a portfolio management software platform and associated services ranging from digitised order management to pre- and posttrade compliance, portfolio administration and fund reporting.
“We know we are able to deliver services at high levels of automation and ultimately precision, at fees that are in the best interests of the EPPF members,” said Alan Keet, regional head for the Middle East and Africa at Apex.
theunisseng@businesslive.co.za
Correction: April 17 2023 — This article has been corrected to show that the contract extension was for five-years and not three as previously reported. We regret the error.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.