The Healthcare of Ontario Pension Plan is reporting an annual return of negative 8.6 per cent for 2022, citing declines in equities and fixed income markets.
The HOOPP finished the year with net assets of $103.7 billion and, despite the economic challenges, maintained a funded status of 117 per cent. Its fixed income portfolio generated a 17.8 per cent loss, while equities were down 12.49 per cent for the year.
By contrast, the pension fund reported positive returns in private equity (11.4 per cent), infrastructure (9.43 per cent), real estate (4.01 per cent) and credit (0.95 per cent).
The HOOPP’s liability-driven investing strategy helped weather the volatile economic market, according to Michael Wissell, its chief investment officer. “HOOPP remains committed to LDI and, as always, we take a dynamic approach, evolving our strategies to respond to changing markets,” he said in a press release.
“We reduced our bond holdings prior to last year’s rising interest rates, which helped mitigate the impact. Further, we continue to balance our portfolio with more capital in private equity, infrastructure and real estate. But the core approach of matching assets to liabilities, with a heavy weighting in fixed income, remains key to our investment strategy.”