The Government Superannuation Fund (GSF), currently having 72000 members, has been affected significantly by the uncertain conditions of financial market and the recession-like conditions worldwide. New Zealand’s GSF recorded an after tax deficit of $583.3 million for the year to 30 June 2009, against nearly $261 million deficit recorded last year.

The fund's Chief Executive, Alan Langford high said that high loss of returns has been experienced, which is comparable with other large, long-term funds. However, Alan admitted positive trend in results in July and August, but cautioned against the remaining period of the year.

Tim McGuinness, the Chairman of Government Superannuation Fund Authority Board, said: “Like other growth funds around the world the Fund has been severely impacted by the financial crisis which led to the worst down-turn in investment markets since the Great Depression.”

The fund’s assets declined from $3.5 billion to $2.65, on account of the deficit and payout to members. Parts of the fund have been invested in property, international shares, NZ shares and fixed interest investments.

Mr. McGuinness said: “This situation was extremely difficult to predict at the start of the financial year and its severity surprised many experts.”