Canada pension fund Hoopp goes cool on bonds
$70bn investor rethinks LDI strategy to take into account paltry yield from fixed income
The Healthcare of Ontario Pension Plan isn’t afraid to make bold decisions on its asset mix. In late 2007, the Canadian fund flipped from a traditional 60/40 equity-to-bonds split to a 46/54 allocation. The aim was to produce a closer match between the fund’s assets and liabilities in the face of weakening markets.
The switch to bonds helped the fund weather the 2008 financial crisis, which sent stock markets into a tailspin. But an erosion in bond yields in recent months has led to a partial
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