HOOPP splits investment functions as Keohane appointed to top job

The $35.7 billion Healthcare of Ontario Pension Plan (HOOPP) will split its chief investment officer function in two following the appointment of Jim Keohane to president and chief executive and the retirement of John Crocker.

Jeff Wendling, former head of public equities, will now look after all equities including private equity and real estate; and head of fixed income and derivatives, David Long, will be responsible for asset liability management (ALM), fixed income and derivatives.

Both will report to Keohane, who will be the chair of the asset allocation committee and the investment risk committee.

Keohane, who was the first person Crocker hired at the fund, says the new structure will capitalise on the strengths of the individuals.

He says there will be more emphasis on ALM and its incorporation into portfolio construction.

HOOPP is one of the only funds in the world that can boast a fully-funded status, and Keohane has led the move to a liability-driven investment strategy.

Sponsored Content

And while HOOPP is “on the investment path we want to be on” there will be more attention paid to international real estate opportunities.

All of the fund’s assets are managed in-house – the 40-person investment team has averaged returns of 6.28 per cent over the 10-year period to the end of December 2010 – but Keohane says there may be circumstances where the fund outsources.

These include areas such as distressed debt opportunities where the fund doesn’t have the in-house capability, where there is a cost advantage, or if it wants to access an exceptional investor.

After 10 years as president and chief executive, Crocker leaves behind a fund that has been transformed from what Keohane describes as a “pretty sleepy place” 13 years ago, to a progressive, leading-edge fund with about 450 staff today.

“He is always progressive, always thinking about new ways of doing things,” Keohane says of Crocker.

“What drives a lot of what we do is a very clear mission to deliver on a pension promise. There is a clear sense of mission right across the organisation, and that was reflected in the fund being named one of Canada’s 10 most admired corporate cultures in 2010.”

Under Crocker’s tenure the core administration system and the core investment management system were replaced.

“They are both very challenging tasks for a chief executive to take on,” Keohane says. “I’m glad it was done under his watch.”

The new chief executive was appointed after a comprehensive global search.

Leave a Comment

Sort content by

US instos swing back to equities

The Conference Board’s 2010 Institutional Investment Report: Trends in Asset Allocation and Portfolio Composition measures the asset growth and portfolio composition of institutional investors operating in the US.mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Blue-eared pigs challenge China’s leaders

Economists hate price and wages controls. They distort the natural forces of markets and usually result in pent-up demand and/or supply which will be unleashed at a later stage as well as a range of unexpected distortions. Investors, too, should hate them. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Russell Axioma launches factor-based indexes

Institutional investors’ increasing use of factor-based models to understand their portfolio risk exposures is the conduit for Russell Investments’ collaboration with Axioma to launch a series of factor-based indexes to rival MSCI/Barra, according to Rolf Agather, managing director of research and innovation at Russell. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Diversification is not enough for managing risk

Diversification alone is not enough to manage downside risk, rather academic research in dynamic portfolio theory suggests the three complementary techniques of diversification, hedging, and insurance can be used together to design customised investment solutions, that ultimately separate assets into performance seeking portfolios and liability hedging portfolios, according to EDHEC’s Felix Goltz and Stoyan Stoyanov.

CalPERS’ redesign creates CFO role

CalPERS will introduce a new leadership organisation design next year, which includes for the first time a dedicated chief financial officer function coordinating all corporate finance functions including cash flow. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Why politics and pension fund management don’t mix

Thomas P DiNapoli was given a little scare in the recent US mid-term elections but, in the end, was returned fairly comfortably to his position of New York State Comptroller and sole trustee of the New York State pension fund. What happens next, though, may be more interesting. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Previous