TORONTO (March 23, 2020) - The Healthcare of Ontario Pension Plan (HOOPP) announced today that it posted a return of 17.14% for 2019 (compared to 2.17% in 2018), with net assets reaching $94.1 billion, up from $79.0 billion at the end of 2018. HOOPP closed 2019 with a 10-year annualized rate of return of 11.38% and a 20-year annualized rate of 8.55%.
These results help position HOOPP to navigate the current challenging economic environment.
“While concerns about COVID-19 have had considerable impact on financial markets and the economy, HOOPP has a track record of weathering market volatility and downturns,” said HOOPP President & CEO Jim Keohane. “As a pension delivery organization, we invest for the long-term, adapt our strategies and maintain a diverse portfolio. This serves us well in continuing to deliver on the pension promise.”
Keohane is retiring at the end of March after announcing his retirement last year. His successor – current Executive VP and Chief Investment Officer (CIO) Jeff Wendling – was announced earlier this month. Wendling, who has been with HOOPP for more than 20 years, takes over April 1.
Wendling said: “HOOPP’s purpose of helping healthcare workers retire with dignity has never felt more important. We want to express our deepest thanks to all our members during this public health crisis. We see your commitment and your service and it is truly inspiring.”
He added: “Looking ahead, HOOPP continues to diversify our investment portfolio and pursue new strategies. In 2019, this included new programs such as infrastructure. Adding new areas to broaden the scope of our investments will build on the strategies that have served HOOPP’s members well.”
For 2019, the total Fund return of 17.14% exceeded the benchmark return of 15.06% by 2.08%, or $1,652 million. All investment classes performed well, particularly bonds, equities, real estate and private equity. Funded status at the end of 2019 was 119%.
HOOPP also provided the highest level of inflation protection offered by the Plan in 2019 as retired members saw their pensions increase by 2% on April 1, 2019. Contribution rates, which have remained at the same level since 2004, will remain unchanged for both employees and employers until at least the end of 2021.
More details on HOOPP’s 2019 performance can be found in our annual report.
About the Healthcare of Ontario Pension Plan
HOOPP serves Ontario’s hospital and community-based healthcare sector, with more than 590 participating employers. Its membership includes nurses, medical technicians, food services staff, housekeeping staff, and many others who provide valued healthcare services. In total, HOOPP has more than 381,000 active, deferred and retired members.
HOOPP operates as a private independent trust, and is governed by a Board of Trustees with a sole fiduciary duty to deliver the pension promise. The Board has representation from the Ontario Hospital Association (OHA) and four unions: the Ontario Nurses' Association (ONA), the Canadian Union of Public Employees (CUPE), the Ontario Public Service Employees' Union (OPSEU), and the Service Employees International Union (SEIU).
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For further information or to arrange interviews, please contact:
James Geuzebroek
Senior Manager, Media and Public Affairs
416-350-4800 or jgeuzebroek@hoopp.com