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Molson Coors boosts mandate by £65m

02 June 2016

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The Molson Coors Pension Plan has increased its investment with Kames Capital to £165million.

The additional £65million investment in an absolute return bond mandate managed by Kames, boosts the initial £100m invested last year as part of the scheme's long term de-risking programme.

Kames Capital, an investment management specialist manages a total of £57.8billion on behalf of its international and UK clients.

The mandate for Molson Coors, it says, aims to deliver positive absolute returns while limiting volatility and preserving capital – regardless of market conditions.

Peter Ball, Kames Capital's director of institutional business, said the company was pleased with the additional investment.

"The success of our absolute return bond funds is rooted in our focus on protecting capital during periods of market stress, which maintains low volatility and reduces correlations with underlying fixed income markets," he said.

"Our funds have been particularly popular with UK pensions schemes, many of which are implementing liability-matching and de-risking programmes."

Ball added that by separating the cash part of their investments, schemes can improve returns by investing in "best-of-breed" absolute return bond funds."

Kames has run absolute return bond strategies since 2010 and, including equity funds, now manages £3bn in absolute return strategies.

Molson Coors said it has been "impressed" with the company's approach.

Oliver Polson, pensions manager for UK and Ireland at Molson Coors, 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."