The Healthcare of Ontario Pension Plan is reporting a 9.7 per cent return as at Dec. 31, 2024, with net assets increasing to $123 billion, up from $112.6 billion in 2023.
Public equities (17.9 per cent) and private equities (17.9 per cent) accounted for the highest returns in 2024 within the HOOP’s portfolio. Infrastructure (12.3 per cent), private credit (11.3 per cent), fixed income (1.9 per cent) and real estate (1.4 per cent) all also brought positive results for the year.
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The HOOPP said public equities delivered strong results in 2024 due to economic resilience, improving inflation and a shift by central banks toward monetary easing. The 10-year annualized return for the plan reached 7.5 per cent.
It also credited its more than $40 billion exposure to Canadian bonds for providing liquid collateral, allowing the investment organization to diversify its portfolio across asset classes and geographies. Half (50 per cent) of the HOOPP’s portfolio is in Canada, followed by the U.S. (27 per cent), Europe (14 per cent) and Asia-Pacific (seven per cent).
The plan’s funded status reached 111 per cent, meaning for every dollar owed in pensions, the plan has $1.11 in assets.
In a press release, Michael Wissell, chief investment officer at the HOOPP, said the global economic volatility seen in 2024 provided an opportunity period for the investment organization due to its focus on ensuring liquidity. “As I like to say, HOOPP is a buyer when others are sellers.”
Read: HOOPP returns 9.38% for 2023, driven by equities, fixed income