RAND WATER PROVIDENT FUND ANNUAL REPORT 2022-2023

No Risk Name

Risk Description

7

Market timing

Market timing is an investment technique where the investor seeks to improve long-term returns by correctly anticipating major moves in asset class prices. Empirical evidence suggests that in practice, market timing more often reduces than increases returns as human nature is such that it is very difficult for a typical investor to sell assets when markets are at their peak and sentiment is positive, or to buy assets when markets are depressed.

8

Inadequate mandates Risk that the mandates provided to the asset managers/portfolios selected are not suitable to achieve the Fund’s objectives.

9

Ineffective monitoring of investments Ensure protection of personal information as required by Act

Short termism and inappropriate comparisons because of not understanding the strategy, may lead to value destroying changes. Risk that personal information relating to members may not be adequately protected.

10

Rand Water Provident Fund Annual Report | 2022-2023 17