HOOPP Assets top $60.8 billion
The Healthcare of Ontario Pension Plan (HOOPP) announced on March 4 a rate of return of 17.71% per cent for the year ended December 31, 2014, driving net assets to a record $60.8 billion from $51.6 billion in 2013. Investment income for the year was $9.1 billion, up from $4.0 billion in 2012, and exceeded its portfolio benchmark by 2.1%, or more than $1.0 billion. The 2014 results elevated the Plan’s 10-Year return to 10.27%, and 20-Year return to 9.98%.
HOOPP’s funded position remained stable at 115%, up from 114% in 2013. As a result of the stable funding position, contribution rates made by HOOPP members and their employers have remained at the same level since 2004.
HOOPP President & CEO Jim Keohane attributes the results to the liability driven investing (LDI) approach that the Plan adopted several years ago. "2014 was a year that highlighted the merits of the LDI approach. Sharp declines in interest rates, that were highly beneficial to our fixed income portfolio, offset the negative impact of the rate declines on our pension obligations."
"Our 295,000 members count on HOOPP to deliver on the pension promise and it’s the foundation of our business plan," says Keohane. "Being fully funded means we are able to consistently deliver to our members and our liability driven investing approach has been critical to ensuring the long-term health and sustainability of the Plan."
For more detailed information and to download a copy of the 2014 Annual Results report please visit HOOPP's website.