Healthcare of Ontario Pension Plan, Toronto, returned a net 9.38% in 2023, below the benchmark return of 10.36%.
Net assets totaled C$112.6 billion ($84.9 billion) at the end of 2023, up from C$103.7 billion at the end of 2022, said a March 13 release.
Over the 10-year period and 20-year periods, HOOPP delivered annualized net returns of 8.43% and 9.04%, respectively, compared with benchmark figures of 6.1% and 7.09%, according to the annual report.
In calendar 2022, HOOPP returned a net -8.6%, compared with a benchmark figure of -13.21%
By asset class, the top performers for 2023 were private equity (up a net 15.9%), public equities (15.71%), private credit (9.33%), infrastructure (8.17%), credit (4.55%) and fixed income (4.28%). The poorest performer was real estate, which returned a net -6.5%.
HOOPP stated in the release that its investment team "increased exposure to bonds after yields rose in the summer and into the fall, contributing significantly to strong performance" when bond and stock markets rallied late in the year.
Jeff Wendling, president and CEO, noted in the release that "last year, the market volatility provided an opportunity to increase our exposure to real return bonds at attractive valuations, protecting the fund against inflation."
A real-return bond is a type of government bond that offers returns adjusted for inflation, ensuring the purchasing power of the investment is maintained over time, said the annual report.
By geography, as of Dec. 31, Canada accounted for 55% of the plan's assets, followed by the U.S. (24%), Europe (12%), Asia-Pacific (7%) and other (2%).
The plan's exposure to Canada includes real estate, such as major industrial and logistics parks, office towers and housing, said the release.
Asset allocation data was not provided.
