The funding group strategically elevated publicity to bonds following an increase in yields throughout the summer time and fall, contributing considerably to the Plan’s efficiency because the bond and inventory markets rallied in direction of the top of the 12 months.
“In 2023, there was appreciable financial uncertainty ensuing from a number of components, together with elevated geopolitical pressure, persistent inflationary pressures, and unsteady world progress,” mentioned Jeff Wendling, president, and CEO of HOOPP. “Amidst this volatility, HOOPP delivered robust returns in help of our pension promise to the healthcare staff of Ontario.”
The Plan capitalized on market volatility by enhancing its funding in actual return bonds at enticing valuations, which protected the Fund in opposition to inflation and generated worth for the Plan.
By the top of the 12 months, inflation-indexed bonds constituted roughly half of HOOPP’s focused portfolio allocation to bonds, facilitating the availability of a cost-of-living adjustment to retired members in 2024.
A big contributor to the robust 2023 return was HOOPP’s substantial funding in Canada, with over $60bn of its belongings inside the nation. This funding spans actual property, together with main industrial and logistics parks, workplace towers, and housing, in addition to supporting Canadian innovation and entrepreneurship.
