We’ve seen some big ups and downs on stock markets over the last few months. As a HOOPP member, you can rest assured that the HOOPP Fund has weathered this period very well.
So far, 2016 has been another volatile year for markets and the global economy. Financial markets suffered sharp declines in early January and again more recently following the results of the vote by the United Kingdom to leave the European Union.
The victory by the Leave campaign in the referendum came as a surprise to many observers. Financial markets around the world, along with the British pound and many other currencies, fell significantly following the vote.
HOOPP actively manages several high-quality real estate properties in the U.K., which are unlikely to be affected by this event. These assets account for a small part of the HOOPP Fund, which is well diversified.
It is still unclear what, if any, long-term impact this decision will have on the world economy. Here’s what is clear: our commitment to delivering on our pension promise.
Our funded position remains strong, ensuring that we have more than enough assets to cover the benefits owed to all current and future retired members.
We have a very long-term time horizon to invest contributions to help fund your retirement. Over that time, we expect many ups and downs in the economy as well as significant world events that can catch markets off guard.
In fact, we see these events as opportunities to buy quality long-term assets at attractive valuation levels. As patient investors, we know that members will benefit as these valuations increase in the years to come.
So far this year, our returns have been positive. Our surplus has served as a cushion to withstand market fluctuations. Our liability driven investing strategy continues to serve us well. This approach ensures that our assets are aligned with our liabilities in order to minimize Plan risk and generate returns.
I look forward to providing you with our full results for 2016 in the HOOPP annual report next spring. Later this year, we’ll tell you more about HOOPP’s move to 1 York Street and other exciting developments. Stay tuned!