In March, HOOPP announced to members that we had a very successful 2019 and that members’ pensions are secure. This is an update to assure you that HOOPP remains in a strong position, even as COVID-19 has continued to impact financial markets and the economy. In addition, we would like to share some information about how we are working to ensure pensions remain secure.

HOOPP remains fully funded, which means our assets are greater than our liabilities. In fact, our assets were at $94.1 billion at the end of 2019, and have grown since then. While the first quarter was a difficult one for all investors, HOOPP has performed well since then, and this included a particularly strong second quarter.

HOOPP has an excellent track record of weathering market volatility because, as a pension trust, we invest for the long term, and have a large and diversified portfolio. Our talented investment team is skilled at navigating turbulent markets.

A leading pension publication in Canada, Pension Pulse, recently reported on how HOOPP has managed through 2020, and is preparing for the future. Highlights include:

• In late 2019, HOOPP made some investment moves that “helped cushion the blow of the pandemic.” These were not done in anticipation of COVID-19, which was still unknown, but because we anticipated that markets were due for a correction.
• Looking ahead, HOOPP is moving into new investment areas that will help keep the Fund growing for many years to come, even as we expect markets to be uncertain and interest rates to remain low.
• HOOPP was one of the first pension plans to invest heavily in industrial properties, such as warehouses for e-commerce, and we are now one of the biggest industrial landowners in Canada. These assets have done very well, including during COVID-19.
• HOOPP has always been exceptionally good at managing risk. As we become bigger and more sophisticated, we are putting even more focus on this area by hiring our first Chief Risk Officer and further improving our risk management systems.

HOOPP is also working on updating our Liability Driven Investing (LDI) strategy – a strategy that we are very well known for in the pension industry. LDI is usually defined as matching assets to liabilities. What that means in practical terms is ensuring that all our investing is designed not to beat short-term benchmarks or peers, but for the sole purpose of meeting the pension promise for many years to come. It has served HOOPP extremely well and will continue to evolve to factor in changing markets and the low-interest-rate environment.

Another leading Canadian pension publication – Canadian Investment Review – recently interviewed HOOPP CEO Jeff Wendling about LDI’s success, and its evolution. You can read the article, and watch a video of the interview.

Finally, it is important to reiterate what an honour it is to be the pension plan for Ontario’s healthcare workers, especially now. HOOPP does not take this responsibility lightly. You are the heroes on the frontlines of this pandemic and your extraordinary efforts are seen every day, and greatly appreciated. Thank you very much for all that you do.