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

A Simple Theory of the Financial Crisis; or, Why Fischer Black Still Matters

In this month’s Financial Analysts Journal, Tyler Cowen professor of economics at George Mason University, Virginia makes sense of the current financial crisis by drawing on some of Fischer Black’s ideas. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Arizona expands allocation ranges, freezes private investments

The $27 billion Arizona State Retirement System has extended its asset allocation ranges and postponed the approval of new commitments to private market investments until the end of June, unless an overriding investment opportunity exception exists. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Bps speak: the real value in internal management

A 10 per cent increase in internal investment management results in a 4.2 basis points increase in net value added to a pension fund’s bottom line, according to analysis of the CEM Benchmarking database, which has data on more than 380 global pension funds from 1991 to 2007. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Where the growth is: mandate trends in 2009

As a recent survey by US management consultant Casey Quirk showed, for investment management, 2009 is all about beta. Director of research, Ben Phillips, spoke to Kristen Paech about mandates that pension funds are investigating, and the role alpha may play. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

That market’s got style: investing through cycles

Style investing remains a powerful tool in periods of market volatility and, in particular, style analysis reminds investors to be aware of the distinction between overall market risk and stock specific risk. Amanda White spoke with director of Style Research, Robert Schwob. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Risk reduction pays off for ABP

The giant Dutch pension fund ABP’s plan to reduce investment risk as a means of recovery from an underfunded position is paying dividends, with the coverage ratio increasing from 86 to 91 per cent from March to April. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Previous