HOOPP announces top-tier investment results for 2008

Investment shift limits market storm damage: HOOPP ends year 97% funded

TORONTO (March 24, 2009): The Healthcare of Ontario Pension Plan (HOOPP) announced an investment rate of return for 2008 of -11.96 per cent, closing the year 97% funded.

"HOOPP weathered the financial market storm better than most in 2008, but it's our long-term ability to pay pensions that counts…and we want to assure our members that their pensions are secure. Whether markets are up or down, by focusing first and foremost on our obligations HOOPP continues to provide a pension our members can count on," said John Crocker, President and CEO. "HOOPP's joint governance structure ensures that our Board of Trustees is continuously engaged and able to take action as required to keep our pension promise."

An example of this active Board involvement is HOOPP's change in investment strategy in late 2007 to reduce risk by adjusting the asset mix to better match the maturing plan's pension liabilities. This change minimized losses by significantly reducing public equity exposure and increasing investments in Canadian bonds.

"2008 was a volatile year in equity markets. The move to shift 20 per cent of the fund out of public equities contributed significantly to our investment performance and preserved over $2 billion in assets" explained Crocker. "As a large-scale, multiple-employer plan paying out nearly $1 billion in benefits each year, HOOPP's ability to pay pensions is the primary reference point in assessing risk and return for any investment we make on behalf of our members."

Complete details of HOOPP's 2008 performance will be disclosed in HOOPP's Annual Report, to be released in late April, 2009 following its approval by the Board of Trustees.