Investment Returns

The fall in the inflation rate during 2011 continued in the December quarter with a rate of -0.3% (1.8% for the calendar year), due largely to lower telecommunication charges, food and continued discounting by retailers.

In the year to 31 December growth funds lost 4.0%, balanced funds lost 0.5% while conservative funds gained 2.1%, reflecting the poor equity performances over the latter part of the year. Conservative investors still managed a small positive real return net of fees and tax.