In the week that James Bond returns to the cinema, it is a quantum of different sorts that would like to be making the headlines. Quantum Asset Management, formerly Dawnay Quantum before its parent company went bust, is trying to drive assets into its UK Absolute Return fund. Launched in November 2005, the Dublin Ucits III fund is one of a breed of absolute return funds that uses covered call options as part of its strategy to deliver an annual interest rate plus 2% return.
But, unlike many of its peers, the fund has posted a positive return despite the market volatility. Since a new manager took the helm at the end of June the fund is up 6.3%. In contrast, the Investment Management Association Absolute Return sector – which the fund is not a member of – fell 5.2% over the same period.