HOOPP Returns 9.8% in 2023 | Chief Investment Officer

The Healthcare of Ontario Pension Plan, a C$112.6 billion ($83.23 billion) pension fund serving 460,000 active, deferred and retired health care workers, announced Wednesday that its investments returned 9.8% in 2023, growing from C$103.7 billion year-over-year.

The plan also announced its funded status stood at 115% at the end of 2023; like many other Canadian plans, the HOOPP system has a surplus of pension funding.

“In 2023, there was considerable economic uncertainty resulting from several factors, including increased geopolitical tension, persistent inflationary pressures, and unsteady global growth,” said Jeff Wendling, president and CEO of HOOPP, in a statement. “Amidst this volatility, HOOPP delivered strong returns in support of our pension promise to the healthcare workers of Ontario.”

Wendling added that HOOPP is focused on overseeing a portfolio that can deliver on its goals and promises.

“Last year, the market volatility provided an opportunity to increase our exposure to real return bonds at attractive valuations, protecting the Fund against inflation and generating value for the Plan,” Wendling said.

Investment Returns

Private equity and public equities were the strongest performers within HOOPP’s portfolio. Public equity returned 15.71% in 2023, while private equity returned 15.90%.

Real estate was the only asset class within the portfolio with negative returns, declining 6.50% for the year.

Other asset class returns were as follows:

Private Credit – 9.33%
Infrastructure – 8.17%
Credit – 4.55%
Fixed Income – 4.28%

Geographically, 55% of HOOPP’s investments are within Canada, 24% are in the United States, 12% are in Europe, 7% in are in the Asia Pacific region and 2% are in other geographic areas.