RAND WATER PROVIDENT FUND ANNUAL REPORT 2022-2023

1.4 Rules/ amendments Rule

Date registered by the Registrar of Pension Funds

Date of Board of Fund’s resolution

Motivation and description of rule amendment

Effective date

amendment no. 1

1

29/05/2023 02/05/2023 10/08/2023

To replace 13.2.3 with the following. The term of office of the EMPLOYER’S TRUSTEES is four years. At the end of this period, the EMPLOYER’S TRUSTEES shall cease to hold office but shall be eligible for re- appointment. 13.3.4 To replace 13.3.4 with the following of Subject to the provisions of Rule 13.3.5, the term of office of the MEMBER’S TRUSTEES is four years.

2. INVESTMENTS 2.1 Investment strategy

The Board of Fund has formulated an investment strategy that is underpinned by the following principles. This investment strategy complies with the provisions of Regulation 28 of the Pension Funds Act in South Africa. 2.1.1 General: All cash withdrawals are made from the Rand Water Provident Fund Strategic Investment portfolios and all new investments will be made to these investment portfolios. The portfolios are Inflation plus 1 to 3%, Inflation plus 3 to 5% and Inflation plus 5 to 7%. 2.1.2 Individual member choice: members are given a choice to invest in conservative, moderate or aggressive investment choices depending on their individual needs. 2.1.3 Unclaimed benefits: Unclaimed benefits assets are invested in the cash portfolio. 2.1.4 Surplus apportionment allocations: The Fund does not keep surpluses unless there are financial obligations to be settled. All surpluses are a result of admin fee and are distributed back to members. 2.1.5 Reserve accounts: The fund has no reserve accounts. 2.1.6 Settlement income: All income is kept as cash in the bank until settlement is made. 2.1.7 Derivative Instruments: The Board of Fund does utilise equity and bonds as part of their investment strategy, which in turn might include derivative instruments. 2.1.8 Hedge funds: The Board of Fund does utilise equity and bonds as part of their investment strategy, which in turn might include hedge funds.

38 Rand Water Provident Fund Annual Report | 2022-2023