Several years of “stellar investment performance” that has the Healthcare of Ontario Pension Plan (HOOPP) sitting at 122% funded allowed the plan’s Board of Trustees to approve an enhancement of members’ benefits and commit to maintaining current contribution levels through 2019.
In its annual results release, HOOPP says its net assets top $77.8 billion, up from $70.4 billion in 2016, following a rate of return on investments of 10.88% in 2017. The funded status is unchanged from the previous year, while the contribution rates have remained the same since 2004.
“Our investment return for 2017 was 10.88%. While we had strong returns pretty much across all asset classes, our public and private equities, fixed income and real estate all provided significant contributions to our investment income,” HOOPP President and CEO Jim Keohane is quoted saying.
“HOOPP exists to pay pensions for members. We invest with that objective in mind to ensure that we can meet our pension obligation regardless of the economic backdrop. We also continue to reinvest in our personnel and our systems in order to maintain the sustainability of the Fund and support growth going forward.”
Investment income for the year was $7.6 billion compared to $6.6 billion in 2016, and the Fund’s 10.88% investment return exceeded its portfolio benchmark by 2.99% or $2.0 billion, states the release, adding that the Fund’s 10-year annualized return is 9.55% and its 20-year annualized return is 9.01%.
More: HOOPP’s pioneering investment model of liability driven investing the foundation of the organization’s ability to deliver on the pension promise.

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