Public equities, also known as common stocks, provide growth for HOOPP for the long-term. They generate investment returns and help secure the pension promise.
While the value of public equities may fluctuate more than other investments, this risk is compensated with higher expected returns – an important requirement for the Fund.
HOOPP invests in public equities in Canada, the U.S. and internationally, providing the Fund with diversification and return opportunities. Importantly, public equity investments are a key means through which the Fund obtains exposure to growing economies and markets around the world.
Our investment team focuses on medium-to-large capitalization stocks using a team-based approach to assess industry dynamics, the quality of specific companies and the valuation of their stock prices. Ideally, HOOPP aims to invest in quality companies that are undervalued, and hold these investments to generate attractive absolute returns over the long-term.
Some of the factors assessed in judging quality include balance sheet strength, returns on capital, the level and stability of margins, and free cash flow generation and management strength. The industry context is also considered. For each stock analyzed, a fair or intrinsic value is generated, and special attention will be paid when they trade below this value.
HOOPP’s Public Equity team also engages with corporate management on ESG issues when appropriate.
This document provides a simplified overview of HOOPP's benefits based on the terms of the HOOPP Plan Text at the time of publication. From time to time, HOOPP may amend the HOOPP Plan Text. In cases where the information provided in this document differs from that contained in the HOOPP Plan Text, the HOOPP Plan Text will govern. More details, including the full HOOPP Plan Text and a complete description of the Plan and its benefits, can be found on hoopp.com.