Air New Zealand 2011 Annual Report Download - page 51

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26. RETIREMENT BENEFIT OBLIGATIONS (CONTINUED)
GROUP AND COMPANY
2011
$M
2010
$M
Major categories of plan assets:
Fixed interest unit fund 55% 54%
Property unit fund 8% 8%
New Zealand equity unit fund 7% 6%
Overseas equity unit fund 24% 25%
Commodities fund 3% 3%
Other assets 3% 4%
100% 100%
None of the above relate to the Company’s own financial instruments, nor property occupied by or other assets used by the Company.
Assumptions used
The following table provides the weighted average assumptions used to develop the net periodic pension cost and the actuarial present
value of projected benefit obligations for the Group’s plans:
GROUP AND COMPANY
2011 2010
Gross discount rate (year 1) 2.5% 3.1%
Gross discount rate (long term) 5.1% 5.0%
Expected return on plan assets 5.0% 5.0%
Future base salary increases 2.5% 2.5%
The expected rates of return on individual categories of plan assets are determined by independent actuaries with reference to relevant
indices published by the New Zealand Stock Exchange. The overall expected rate of return is calculated by weighting the individual
rates in accordance with the anticipated balance in the plan’s investment portfolio.
AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2011