RAND WATER ANNUAL REPORT 2023

HOW WE CREATE VALUE

Rand Water Provident Fund

The Rand Water Provident Fund is administered in terms of Section 13B of the Pension Funds Act. Rand Water provides benefit administration, and Old Mutual Ltd provides investment administration services. Membership is limited to full time permanent employees. The Fund is governed by a board of trustees, five of whom are elected by members and five of whom are elected by Rand Water. In the year, the board of trustees held five meetings. In addition, three audit committee meeting and two investment committee meetings took place. The Fund’s objective is to provide retirement and other benefits for members, and also benefits in the event of their death. Members are provided with flexible investment choices ranging from high risk, medium risk, and low risk portfolios. The low-risk portfolio is geared especially for members who are five years from normal retirement age. Members also enjoy flexible contribution rates and risk benefits. Capital Alliance and Safrican underwrites risk benefits . The Fund’s membership at year end was 3 487,

and the Fund’s value was R4.2 billion, up from R3.6 billion a year earlier. Fund Objectives: The aim of the Fund is to offer a member centric provident fund that caters to both active members and those who have left the service, by providing them with a high-quality and cost-efficient administration service. By considering both external and internal factors, as well as the overall context of the fund’s ecosystem, the commitment to member-centricity is demonstrated through a communications strategy that involves sharing relevant information with members. This approach aims to enhance the accessibility and transparency of the fund for its members and stakeholders. The precise impact of the ‘Two-Pot’ method on the Fund’s management costs remains uncertain. Implementing the ‘Two-Pot’ approach will necessitate significant administrative modifications inside the fund, resulting in increased expenses. Below is an undeniable fact that we cannot avoid. This is how our different strategies performed over the year 2022/23.

Investment Returns

RW INFLATION 5-7

RW INFLATION 3-5

RW INFLATION 1-3

0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 18.00%

Returns

Target

85