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Pension Funds

Healthcare of Ontario Pension Plan posts annual return of 2.17%

Healthcare of Ontario Pension Plan, Toronto, returned a net 2.17% on its investments in 2018, with the pension fund's assets reaching C$79 billion ($57.9 billion) as of Dec. 31, according to an announcement Monday.

HOOPP's funding ratio was 121%, vs. 122% the previous year. The 2018 return was below the previous year's return of 10.88% but exceeded the 2018 custom benchmark return of 0.01%.

The pension fund's assets were up 1.5% from the end of 2017. Investment income for 2018 totaled C$1.7 billion, down from C$7.6 billion in 2017.

"To ensure we deliver on our pension promise to members, our investment strategy takes a very long-term view while anticipating and adapting to market changes," said Jim Keohane, HOOPP's president and CEO, in a news release announcing the annual results. "Our approach allows us to preserve value even during turbulent and challenging investment environments."

HOOPP's liability hedge portfolio — nominal bonds, real estate and real-return bonds — generated 0.43% of value added, with a significant contribution coming from short-term, nominal bonds and real estate. Meanwhile, HOOPP's return-seeking portfolio generated 1.73% of value added with large contributions from private equity, credit and absolute-return strategies, according to the pension fund's annual report.

For the 10 and 20 years ended Dec. 31, the pension fund returned an annualized net 11.19% and 8.52%, respectively.

An asset allocation as of Dec. 31 was not provided.