RAND WATER PROVIDENT FUND ANNUAL REPORT 2022-2023

PART 2 Report by the Chairperson

Just as the world appeared to be returning to normal following two years of a global pandemic, a series of economic, market and geopolitical headwinds resulted in 2022 and 2023 being beset with challenges. Our unwavering focus on our purpose, as well as knowing that we exist for our members, held us in strong stead amid the ever-changing market environment. This inspires us to find effective and innovative ways to support and care for our members in unprecedented circumstances. This report presents our results as at 30 June 2023, reflecting a year of progress during which the RWPF demonstrated its standing as a member-centered fund that delivers sustainable results for its membership. In the past two financial years, we have undergone a significant change that immensely impacted our lives. Our loved ones left us

Dr V Mello Chairperson of the Board

Dr V Mello Chairperson of the Board

Ms MS Nyembe Principal Officer

unexpectedly, and we became isolated as people. The Rand Water Provident Fund strived to ensure that its members do not have to worry about losing their funds, risk cover, or access to services during the hard times. Despite great uncertainty in both the international and local environments, we managed those factors within our control and monitored closely those beyond our control, ending the year in a strong position to respond to the many changes occurring in our industry. Globally, hybrid business models, which combine working at home and at the office, have contributed to growing concerns about data privacy and cyber threats. During this period, the fund has adopted a strategic framework in compliance with the protection of personal information act and to deal with cyber threats. While increased regulation is aimed at safeguarding and protecting the interests of provident fund members, it also imposes a burden in terms of capacity and resources. Compliance and monitoring requirements are more stringent, and this heightened scrutiny comes with associated costs. Our provident fund must adapt to these evolving regulatory landscapes to ensure that we continue to effectively manage and protect the financial well-being of our members while managing the operational challenges posed by increased regulatory demands. The ongoing volatility in markets may allow unsustainable investments to infiltrate the financial system. Therefore, institutional investors and financial institutions must strengthen their corporate governance protocols for environmental, social and governance (ESG) implementation and compliance. Strengthening the Fund’s sustainability, as it is for all responsible corporate citizens, and the crafting of our ESG policy and strategy during the year was a significant step in the direction we have plotted. The framework is comprehensive and gives us a strong foundation on which to base our investment decisions, incorporating ESG elements that ensure we contribute to a better South Africa and a safer world. The Board maintained its focus on the Fund’s responsible operation and keen oversight of operations. The Board continued to take a long-term view on investment over short-term volatility, as our strategies have proven to return targeted returns over recommended holding periods. Mr ML Ncobela Funding Manager

6 Rand Water Provident Fund Annual Report | 2022-2023