Public equities, fixed income were the top performers for the Plan
The Healthcare of Ontario Pension Plan (HOOPP) wrapped up 2025 on a relatively high note, after the Plan reported net assets of $132 billion at the end of the year, a $9 billion increase over the prior year, driven by a net return of 7.7 per cent and $9.7 billion in net investment income.
According to the Plan’s press release, HOOPP’s funded status stood at 109 per cent, while its membership surpassed 504,000. Additionally, its 10-year annualized net return of 7.8 per cent exceeded its 10-year benchmark of 5.9 per cent by nearly two full percentage points.
Public equities were the primary return driver for the fund, buoyed by resilient corporate earnings and a shift toward more accommodative monetary policy later in the year. Fixed income also performed well as interest rates declined, with shorter-duration bonds benefiting from rate cuts by the Bank of Canada. Private markets contributed positive but more modest returns in a challenging valuation climate.
Infrastructure and real estate assets also contributed the fund's performance.
“In an increasingly complex investment environment, we remained focused on prudent risk management and long-term value creation,” said Annesley Wallace, president and CEO of HOOPP. “Looking ahead, we are well positioned to protect the Plan’s strength and continue delivering sustainable retirement security for Ontario’s healthcare community.”
Nearly half of HOOPP's portfolio – 49 per cent - is invested in Canada. The commitment spans public equities, fixed income, infrastructure, real estate, and private credit.
While the strategy provides exposure to Canada's economy, it also raises questions that any large allocator must weigh - whether concentration in a single national market, even a stable one, introduces risks that broader global diversification could mitigate. Still, Wallace underscored that the approach balances community impact with its fiduciary obligations.
“Our results reflect the strength of a globally diversified portfolio, with a significant portion invested in Canada,” she said. “We are proud to invest in the communities where our members live and work, while maintaining the global reach and discipline required to deliver on our long-term pension commitments.”
Growing membership, growing obligations
According to HOOPP's release, the Plan welcomed The Hospital for Sick Children (SickKids) during the year, achieving 100 per cent participation across Ontario hospitals, and expanded eligibility to incorporated physicians.
With 870 employers now participating, HOOPP paid out $4.1 billion in pension benefits in 2025, a figure the Plan maintains will only grow as the membership base matures.
Meanwhile, contribution rates, unchanged since 2004, remain at 6.9 per cent on earnings up to the Year's Maximum Pensionable Earnings and 9.2 per cent above it.
HOOPP also launched its 2030 Strategic Plan last year, organized around three priorities: maximizing member value, building portfolio resilience, and evolving with Ontario's healthcare sector.
The Plan also reported a 37 per cent reduction in its carbon footprint compared to its 2021 baseline, aligning with the broader trend among Canadian pension funds to integrate climate considerations into investment frameworks.
