The C$78 billion ($60 billion) HOOPP delivers pension benefits to more than 339,000 working and retired healthcare workers at more than 390 employers in Ontario. HOOPP uses a liability-driven investment (LDI) approach. LDI drives the construction of two broad portfolios. First, the liability-hedge portfolio is designed to hedge the major risks of the liabilities – namely, inflation and interest rates.
Second, the return-seeking portfolio aims to add return by controlled risk-taking. Since future returns are uncertain, HOOPP’s LDI strategy is designed to keep the plan’s funded status stable over a broad range of possible future conditions. The fund is 122 per cent funded. In 2017, it returned 10.88 per cent; its 10-year annualised rate of return is 9.55 per cent.