The assets of the Fund are actively managed. In other words, HOOPP employs a number of investment strategies and techniques (such as asset allocation, hedging, derivatives and others) both to:

• improve the Fund’s long-term investment returns, and
• insulate the Fund from exposure to inappropriate levels of risk 

Most of the Fund’s assets are managed by internal investment professionals who are employed by HOOPP. However, external managers who work for asset-management firms are used for special mandates, such as non-North American equities. Externally managed assets must be invested in accordance with the investment guidelines, restrictions and mandates established by HOOPP.

During 2007, HOOPP revamped its business strategy for non-North American equities, which had been a consistently underperforming area of the portfolio. As part of this change in strategy, HOOPP reduced its use of external managers. This change resulted in a significant cost savings, and was consistent with the asset mix policy change that saw HOOPP reduce its exposure to equities. At year-end 2007:

• Approximately 93 per cent of the Fund’s assets were managed by internal investment professionals (up from 85 per cent at year-end 2006).
  
  
• Approximately 7 per cent of the Fund’s assets – primarily foreign equity investments – were  managed by external investment professionals (down from 15 per cent at year-end 2006).