Creating Long-Term Value for Our Members
(Thomson Reuters ONE) -
HOOPP Tops $70.4 Billion in Net Assets with a 10.35% Rate of Return
TORONTO, March 09, 2017 (GLOBE NEWSWIRE) -- The Healthcare of Ontario Pension
Plan (HOOPP) announced today that its Funded Status at the end of 2016 was 122%.
The Fund's net assets reached a record $70.4 billion, up from $63.9 billion in
2015, following a rate of return on investments of 10.35% in 2016. As a result
of the Plan's stable funding position, contribution rates made by HOOPP members
and their employers have remained at the same level since 2004 and the Board of
Trustees has committed to maintaining these rates until 2018.
Investment income for the year was $6.6 billion compared to $3.1 billion in
2015, and the Fund's 10.35% investment return exceeded its portfolio benchmark
by 4.23% or $2.7 billion. The Fund's 10-year annualized return stands at 9.08%
and its 20-year annualized return is 9.12%.
"We are very pleased with our performance this year, particularly given a
challenging first quarter and overall, a volatile market. But rather than
comparing our annual results against those of peer plans or stock market
benchmarks, we consider the true measure of our success to be our funded status
as this demonstrates our ability to meet our current and future pension
obligations," said HOOPP President and CEO Jim Keohane.
"The important value of a defined benefit pension plan is certainty for our
members, knowing they won't outlive their retirement income. This is why our
strategy puts funding first, an approach which balances the need to generate
returns with the need to effectively manage risk," added Keohane.
HOOPP's liability driven investing (LDI) approach has served members well by
providing stability through challenging markets. It is a holistic, long-term
investment approach which considers the Plan's assets in relation to pension
obligations, in order to balance risk with returns.
For more information about HOOPP's financial results please view the 2016 Annual
Report, available on hoopp.com.
2016 Return Highlights
HOOPP's liability driven investing approach utilizes two investment portfolios:
a liability hedge portfolio that seeks to mitigate certain risks associated with
our pension obligations, and a return seeking portfolio designed to earn
incremental returns to help to keep contribution rates stable and affordable.
In 2016, the liability hedge portfolio provided approximately 38% of our
investment income. Nominal bonds and real return bonds generated returns of
3.9% and 6.8% respectively. The real estate portfolio was a significant
contributor during the year, with a 12.2% currency hedged return.
Within the return seeking portfolio, which provided 62% of the Fund's income,
public equities were the largest contributor to investment income, returning
12.9%, while private equity investments returned 15.0% on a currency hedged
basis. Other return seeking strategies, particularly absolute return
strategies, made significant contributions to the income of the Fund.
HOOPP's asset allocation was also a big contributor to the Fund providing a 1%
total return.
About the Healthcare of Ontario Pension Plan
Created in 1960, HOOPP is a multi-employer contributory defined benefit plan for
Ontario's hospital and community-based healthcare sector with over 510
participating employers. HOOPP's membership includes nurses, medical
technicians, food services staff and housekeeping staff, and many other people
who work hard to provide valued Ontario healthcare services. In total, HOOPP has
more than 321,000 active, deferred, and retired members.
As a defined benefit plan, HOOPP provides eligible members with a retirement
income based on a formula that takes into account a member's earnings history
and length of service in the Plan. HOOPP is governed by a Board of Trustees with
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). The unique governance model provides
representation from both management and workers in support of the long-term
interests of the Plan.
For further information or to arrange interviews, please contact:
Joe Vecsi, Senior Manager Public Affairs
416 369-9212 ext 4315
For more information on HOOPP, please visit www.hoopp.com.
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: CAD - Healthcare of Ontario Pension Plan via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 09.03.2017 - 17:00 Uhr
Sprache: Deutsch
News-ID 529333
Anzahl Zeichen: 5389
contact information:
Town:
Toronto
Kategorie:
Business News
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"Creating Long-Term Value for Our Members"
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CAD - Healthcare of Ontario Pension Plan (Nachricht senden)
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