Pioneer Momentum All Weather Liquidity Fund      

A low risk fund of hedge funds that combines complementary yet uncorrelated investment styles, each of which can profit whatever the direction of global stock and bond markets. It aims to achieve low volatility with constant positive returns.

This fund is a weekly trading mirror fund (What are mirror funds?) (mirror fund range) and is run along similar lines to the monthly traded Pioneer Momentum All Weather Fund. The All Weather Liquidity Fund varies from the All Weather Fund in that it has to have a higher liquidity within the fund to allow weekly trading, as the original All Weather Fund trades monthly. The Pioneer Momentum All Weather Liquidity Fund is available through Friends Provident International Ltd and some other insurance companies in the Isle of Man.  The advantage of using the All Weather Liquidity fund is that it is available as a mirror fund and so your money can be switched in and out at NO COST, as frequently as you choose.

Hedge funds provide a balance to equities, as their performance is not correlated to equity markets. The Pioneer Momentum All Weather Liquidity Fund combines complementary yet uncorrelated investment styles, each of which can profit whatever the direction of global stock and bond markets. This combination creates the opportunity for the fund to achieve steady growth with minimal downside, in all market conditions. The fund is designed to have very low volatility. It is a weekly traded version of the Momentum All Weather Fund which was started 5 years earlier.

The main All Weather Fund is now closed as it has reached capacity. It will be replaced by the All Weather Strategies II Fund in September 2004. The new fund will follow very similar strategies and use some of the same fund managers as the original fund, but with different allocations. The All Weather Liquidity Fund will continue to accept new business and will eventually feed into both the old fund and the new fund.

Objective:

• Produce stable, absolute returns, targeting 6% over LIBOR with under 5% volatility, through diversified exposure to 10-15 fund managers using a number of different investment strategies and techniques.
• No correlation to stocks, bonds or currency markets so that it will provided consistent returns regardless of sudden market movements.

Strategy:

• Invest using 10-15 hedge fund managers who adopt hedged equity and trading investment styles and event-driven strategies. The main areas of investment are:
  1. Asset-backed lending
  2. Distressed Securities
  3. Merger Arbitrage
  4. Equity Hedging
• Mostly invested in the US and Europe; small portion in Japan

Track Record:

The fund has achieved growth rates better than cash deposits with extremely low volatility

Annual Volatility:	1.7%
Annualised Return (Since Inception, June 2000 - May 2004):	5.4%
(Momentum All-Weather Liquidity has never had a negative year).

Note: the Momentum All Weather Fund was started in April 1995 and has achieved an annualised performance of 9.3% pa over the period to end of 2003.

Other Details:

Management Fee:	1.5% p.a. + 10% Incentive fee (high watermark)
Currency:	USD
Dealing:	Weekly  :   Latest fund prices

This fund may go down in value as well as increase. This risk is reduced the longer the investment is held. Past performance is no guarantee of future performance.

For background reference you may wish to read the information about the original monthly fund. This is available directly or through a portfolio bond.

Factsheets

Momentum AllWeather Liquidity
Momentum AllWeather Strategies II Master Fund (USD)
Momentum AllWeather Strategies II Master Fund (EUR)
Momentum AllWeather Strategies II Master Fund (GBP)
Momentum AllWeather Strategies II Master Fund (CHF)
Momentum AllWeather Strategies II Master Fund (JPY)
Momentum AllWeather Fund

Performance graph of All Weather Fund