TORONTO, March 16, 2022, bringing its net assets to $114.4 billion, up from $104.0 billion at the end of 2020. The Plan's funded status is 120%, meaning that for every dollar owed in pensions it has $1.20 in assets.
HOOPP has a 10-year annualized rate of return of 11.06% (as of Dec. 31, 2021). According to the most recent report (2020) from consultant CEM Benchmarking, based on a global dataset of 218 pension funds, HOOPP's 10-year net returns were in the top 10% and its 10-year net value-added was the second highest. HOOPP's value-add return for 2021 was 2.69%, among the highest in the Plan's history.
"HOOPP's in-house investment team successfully navigated another year of challenges in the economy related to the ongoing effects of the pandemic," said President & CEO Jeff Wendling. "The result is a strong return and funded status that help make the Plan secure for the long-term benefit of the healthcare workers of Ontario."
HOOPP delivered strong returns across many asset classes, including public equities, real estate and private equity, which offset modest declines in its bond portfolio. At the same time, HOOPP continued to evolve its investment strategies with more investment in infrastructure and the innovation economy.
HOOPP also built upon and expanded its long-standing commitment to sustainable investing. The Plan has committed to achieving net zero carbon emissions in its portfolio by 2050. In addition, in 2021, HOOPP:
- introduced a $1 billion allocation to climate change equities
- was a founding member of Climate Engagement Canada, a collaborative engagement initiative focused on driving action at Canadian companies to deliver emissions reductions
These are just a few steps in an ongoing multi-year approach to sustainable investing.
Wendling added: "HOOPP will continue to purposefully and thoughtfully diversify our portfolio through allocations to a wide array of strategies, including building on our successes in private markets. Our strong performance record puts us in a good position to seek opportunities that will safeguard our members' pensions, now and into the future."
Other highlights:
- Member benefits: HOOPP's Board of Trustees granted a benefit improvement in 2021 to increase lifetime benefits for active members. In addition, a full cost of living adjustment was granted in 2021 and again in 2022, to help retired members keep up with the cost of inflation.
- Low operating costs: HOOPP continued to provide a high level of service to members while operating efficiently. Operating costs for the year represented just 0.32% of assets, which helps keep contribution rates low and affordable for members and employers.
Performance by asset class
| 2021 % Return | ||
| Fixed Income | -1.89 | % |
| Equities | 20.11 | % |
| Credit | 4.67 | % |
| Private Equity | 23.65 | % |
| Real Estate | 12.52 | % |
| Infrastructure | 14.18 | % |
About the Healthcare of Ontario Pension Plan
HOOPP serves Ontario's hospital and community-based healthcare sector, with more than 620 participating employers. Its membership includes nurses, medical technicians, food services staff, housekeeping staff, and many others who provide valued healthcare services. In total, HOOPP has about 420,000 active, deferred and retired members.
HOOPP operates as a private independent trust, and is governed by a Board of Trustees with a sole fiduciary duty to deliver the pension promise. The Board is jointly governed by the Ontario Hospital Association (OHA) and four unions: the Ontario Nurses' Association (ONA), the Canadian Union of Public Employees (CUPE), the Ontario Public Service Employees' Union (OPSEU), and the Service Employees International Union (SEIU). This governance model provides representation from both management and workers in support of the long-term interests of the Plan.
Contact:
James Geuzebroek, Senior Manager, Media and Public Affairs, jgeuzebroek@hoopp.com
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A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c31862c3-741e-4f02-ab94-e3380e1ad9d4
