Public Equities Lead Healthcare of Ontario Pension Plan’s 9.7% Return in 2024

Led by its public equities portfolio, the Healthcare of Ontario Pension Plan’s investments returned 9.7% for 2024, raising its asset value to C$123 billion (US$85.2 billion) from C$112.6 billion a year earlier. The pension fund also reported a funded ratio of 111%, which is the 15th straight year its assets were higher than its liabilities.

The pension fund’s public equity assets returned 17.9% for the year, followed by private equity, which earned 12.7%, and infrastructure investments, which gained 12.3%. Its private credit investments returned 11.3%, while its real estate and fixed-income holdings were up 1.9% and 1.4% respectively.

The pension fund attributed the robust funded ratio to initiatives enacted during the year, including the approval of a benefit formula improvement for eligible active members who had were participants in the plan in 2023, as well as retired and deferred members receiving a full cost of living adjustment.

HOOPP stated that Canadian bonds are “the backbone” of its investing strategy, noting that with the fluctuations of the market, bonds provide liquid collateral that supports its other investments. It also reported that the advantage of having liquidity allows it to diversify its portfolio among asset classes and locations.

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“As I like to say, HOOPP is a buyer when others are sellers,” HOOPP CIO Michael Wissell said in a statement. “As a result of our focus on ensuring liquidity, the global economic volatility we saw in 2024 was an opportunity for us rather than a barrier to success.”

As of the end of 2024, half of its assets were in investments based in Canada, with 27% in the U.S, 14% in Europe, 7% in Asia Pacific, and 2% in other places..

Regarding its climate strategy, HOOPP reported its goal to have 80% of plan assets to report Scope 1 and Scope 2 emissions by 2025. And by 2030, the fund’s goal is to reduce its real estate portfolio’s emissions by 50%, have 50% of its infrastructure and private equity portfolios covered by credible transition plans, and to commit more than C$23 billion to green investments.

HOOPP also reported that the plan’s membership grew by approximately 18,000 during the year to more than 478,000 as it added 32 employers to raise its year-end total to 709.