RAND WATER PROVIDENT FUND ANNUAL REPORT 2022-2023

• In evaluating asset managers, the fund considers the extent to which the asset manager uses ESG rating factors to assess the investment merits of stocks and other instruments. • Although asset managers who do not utilise ESG in their rating criteria are not excluded, they will receive a lower score on this rating. High Level Overview

Defined Contribution Fund The Fund has recently added new contribution. Classes tailor made to meet members needs.

Maintaining a good reputation for integrity and excellence

Audit Matters

Drive social transformation through B- BBEE and impact-investing or social and envirmental good.

Financial Matters The Fund has experienced a good investment performance of R 518 million The Fund has a net surplus of R 1.9 million for the year.

Our Status

Internal and External Auditors have been given unrestricted access to all financial records. The Reserve Bank has conducted an inspection on the Regulation 28 quarterly submissions. All significant matters are reported in the Annual Financial Statements.

The fund maintained a sound valuation status.

Strive for outstanding corporate governance. Communicate our brand value and strength to all significant stakeholders.

Financial Highlights and achievements of the past year Our assets under management grew from R3.6bn to R4.2bn, a remarkable feat in a lacklustre market. We registered a one-year return of 12.2% as combined total return from our investment portfolios. The Fund has obtained actuarial exemption in the current year until 2026. Assets and liabilities are 100% matched in a defined contribution fund. This gives our members the necessary comfort and peace of mind that the Fund continues to be financially secure. During the year, we reviewed our investment strategy and approach to ensure improved resilience within our portfolio in order to withstand market volatility while achieving the required long-term returns. As a result, we are investigating impact investments as part of our responsible investment drive. Financial Highlights 30 June 2023

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MEMBERSHIP SIZE Membership slightly increased due to a high number of new engagements. FUND MEMBERS 3467 (2022: 3399)

FUND PERFORMANCE Surplus current year as a result of low administration costs. NET SURPLUS YTD R 1.9 million (2022: R 1.5 million)

INVESTMENTS Good investment performance over 12 months ending June 2023. GROSS RETURN ON INVESTMENTS YTD 12.2% 12 Months to June 2023 (2022: 3.84%)

ADMINISTRATION COSTS ADMINISTRATION COSTS INCLUDES ADMIN FEE PAYABLE TO THE EMPLOYER. R 14 million 60% of the admin fee is payable to the employer.

RELATIVE CONTRIBUTION LEVELS FUND CONTRIBUTION R 328 million (2022: R 306 million)

ACCUMULATED FUNDS ASSET AND LIABILITY MATCHING (100%).

R 4.2 billion (2022: R 3.6 billion)

8 Rand Water Provident Fund Annual Report | 2022-2023