Investment Strategy
The Healthcare of Ontario Pension Plan is one of Canada’s largest defined benefit pension funds, managing approximately $115 billion in net assets on behalf of over 460,000 active and retired healthcare workers across Ontario. HOOPP provides retirement security for nurses, medical technicians, support staff, and other healthcare professionals employed by hospitals, long-term care facilities, and other healthcare organizations throughout the province.
HOOPP’s investment strategy is anchored in a liability-driven investment (LDI) framework that explicitly links asset management to the plan’s benefit obligations. This approach prioritizes matching the duration and characteristics of assets to the plan’s liabilities, using a significant allocation to fixed income and interest rate-sensitive instruments as the foundation of the portfolio. Growth-oriented investments, including equities and private markets, are layered on top of this liability-matching base to generate returns above the discount rate.
The plan has consistently achieved high funded ratios, often exceeding 115%, which is among the strongest of any major pension fund globally. This financial strength reflects the effectiveness of HOOPP’s investment approach and disciplined risk management. The portfolio is diversified across Canadian and global public equities, government and corporate bonds, real estate, private equity, infrastructure, and credit.
Private Markets Approach
HOOPP’s private markets program has grown substantially as the plan has sought to diversify return sources and capture illiquidity premiums. Alternatives represent approximately 30% of the total portfolio, spanning real estate, private equity, infrastructure, and private credit.
The real estate program is one of HOOPP’s most established private market activities. HOOPP invests in a diversified portfolio of properties across Canada and select international markets, including office, industrial, retail, and residential assets. A portion of the real estate portfolio is managed internally through direct ownership and development, while the remainder is invested through external commingled funds and joint ventures.
HOOPP’s private equity program invests through a combination of fund commitments to external managers, co-investments alongside GP partners, and selective direct investments. The program spans buyout, growth equity, and specialty strategies across North America, Europe, and Asia. Typical fund commitments range from $100 million to $500 million for larger managers, with smaller allocations to mid-market and niche strategies. HOOPP has been increasing its co-investment and direct investment activity as the team has built additional capabilities.
Infrastructure investments target essential services assets including energy, transportation, utilities, and digital infrastructure. HOOPP invests through both direct acquisitions and fund commitments, often participating in large-scale transactions alongside other institutional investors.
Private credit allocations span corporate direct lending, structured credit, and specialty lending strategies, providing current income and downside protection. HOOPP’s strong funded status and long-term investment horizon allow it to take advantage of illiquidity premiums across the private credit spectrum.
Fund managers seeking to build relationships with HOOPP should demonstrate a differentiated strategy, strong and stable teams, and a willingness to offer meaningful co-investment opportunities. HOOPP’s Toronto-based investment team is active in the institutional investment community and regularly attends industry conferences and events.
Frequently Asked Questions
How does HOOPP invest?
HOOPP employs a liability-driven investment approach that prioritizes matching assets to the plan's benefit obligations. The portfolio is managed across public equities, fixed income, real estate, private equity, infrastructure, and credit. HOOPP manages a significant portion of its assets internally, particularly in public markets and real estate, while using external managers for specialized private market strategies.
What is HOOPP's private equity allocation?
HOOPP allocates approximately 10-12% of its portfolio to private equity, investing through a combination of direct investments, co-investments, and commitments to external fund managers. The PE program spans buyout, growth, and specialty strategies across North America and internationally. HOOPP has been steadily building its private equity capabilities, including increasing direct and co-investment activity.
How can fund managers engage with HOOPP?
HOOPP evaluates external GP relationships through its private equity and real assets investment teams based in Toronto. The organization is a sophisticated institutional investor that values strategy differentiation, alignment of interests, and transparent reporting. Fund managers can engage through industry conferences, consultant and intermediary introductions, or direct outreach. HOOPP tends to build long-term GP relationships and does not frequently rotate managers.
