Derivatives are financial contracts that derive their value from an underlying asset (for example, an index, interest or foreign exchange rate) and are used by HOOPP to manage risk. Common derivatives include futures contracts, options contracts, and
swaps.
As a necessary part of HOOPP’s daily fund management operations, we use collateral management to help manage our liquidity, match assets to liabilities and reduce credit risk in our lending activities.
Through a combination of using derivatives and collateral management strategies, we can help manage how the Fund reacts to market swings, known as volatility, and help maintain liquidity.
Key elements of our portfolio include:
Managing risk and generating returns
To provide returns and manage risk, we engage in discretionary trading in equity, fixed income, and foreign exchange (FX) derivatives. We can also add value by implementing various alternative strategies.
Managing liquidity
We manage our liquidity, collateral, cash and leverage through our collateral management operations.
Learn more about HOOPP’s derivatives portfolio and our investment performance in our latest Annual Report.
This document provides a simplified overview of HOOPP's benefits based on the terms of the HOOPP Plan Text at the time of publication. From time to time, HOOPP may amend the HOOPP Plan Text. In cases where the information provided in this document differs from that contained in the HOOPP Plan Text, the HOOPP Plan Text will govern. More details, including the full HOOPP Plan Text and a complete description of the Plan and its benefits, can be found on hoopp.com.
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