Molson Coors adds £65m to Kames-run absolute return mandate

The Molson Coors UK Pension Plan has increased by £65m its investment in an absolute return bond mandate managed by Kames Capital, boosting the brewer’s total investment with Kames to £165m.
The asset manager’s award-winning fixed income team was originally awarded a £100m mandate by Molson Coors in 2015 as part of the pension plan’s long-term de-risking programme. The mandate aims to deliver positive absolute returns while limiting volatility and preserving capital in all market conditions.
Kames Capital’s 28-strong fixed income team, led by David Roberts, has run absolute return bond strategies since 2010.
Peter Ball, Kames Capital’s Director of Institutional Business, said: “We are delighted that Molson Coors has made this additional investment. The success of our absolute return bond funds is rooted in our focus on protecting capital during periods of market stress, maintaining exceptionally low volatility and minimising correlations with underlying fixed income markets.
“Our funds have been particularly popular with UK pension schemes, many of which are implementing liability-matching and de-risking programmes. By separating out the cash part of their investments they are able to improve returns by investing in best-of-breed absolute return bond funds.”
Commenting, Oliver Polson, Pensions Manager for UK and Ireland at Molson Coors UK, said: “We recently increased our allocation to absolute return bond funds from 15% to 19.5% as part of our long-term de-risking programme.
“The additional allocation will be invested entirely with Kames Capital, who will then, along with the existing assets they manage on our behalf, oversee more than half of our total absolute return bond investments. We have been impressed with their lower-risk approach to absolute return investing and we are confident in the team’s ability to continue delivering positive and stable returns.”
Including equity funds, Kames now manages £3bn in absolute return strategies.