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Arrow Alternative Solutions Fund
 
 Fact Sheet
 Fund Holdings
 
Summary Prospectus
 Class A & C
 Class I

 

 

Ticker Symbols:

Class A

ASFFX

Class C

ASFTX

Class I

ASFNX

CUSIP Numbers:

Class A

042765107

Class C

042765206

Class I

042765305

Minimum Investment:

· $5,000 non-qualified accounts

· $2,000 retirement accounts

· $250 subsequent investments

· Class I minimum initial investment $1 million

Operating Expenses*:

Class A

2.03%

Class C

2.78%

Class I

1.76%

*Plus acquired fund fees and short interest of 0.10% (when combined, the total fund expenses are 2.13%, 2.88% and 1.86%, respectively).

Fund Type:
Multi-Strategy Alternative

Strategy Benchmark:
ProfitScore Alternative Income Index (PSAI), a quantitatively based, multi-strategy, multiasset index.

Definitions:
Standard deviation is a statistical measurement of volatility based on historical returns.
Correlation measures how closely two securities' movements are associated, ranging from 1.0 (highly correlated) to -1.0 (inversely correlated).
Sharpe Ratio is a measure of risk adjusted returns and is the return less the risk-free rate divided by the standard deviation.
Absolute Returns are generally positive returns in any market environment. There is no guarantee that any investment will achieve this objective.

The Arrow Alternative Solutions Fund may not be suitable for all investors. The fund's use of derivatives such as futures, options and swap agreements may expose the fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. Investing in leveraged instruments will magnify any gains or losses on those instruments. Investing in commodity and currency related securities may be subject to greater volatility than investments in traditional securities. The fund's use of short selling involves increased risks and additional costs. Investing in small-cap securities, may have special risks associated including wider variations in earnings and business prospects than larger, more established companies. The fund may invest in fixed income securities, which are subject to risks including interest rate, credit and inflation.

 

Investment Strategy
The fund seeks seeks capital appreciation with an emphasis on absolute returns, low volatility, and low correlation to traditional equity and fixed income markets.

Alternative Solutions Fund Pie Chart

Portfolio Manager


Arrow Funds

Fund Highlights

  • Exposure to three alternative fixed income strategies
  • Low correlation to traditional investments
  • Core holding for alternative investment allocations
  • Investments that seeks to produce income while preserving capital

Diversification Across Alternative Strategies
Arrow Alternative Solutions Fund is a mutual fund that delivers unique risk and return characteristics. Alternative strategies have historically exhibited relatively low correlation to traditional investments, such as equities & bonds. The fund uses a systematic methodology similar to the ProfitScore Alternative Income Index (PSAI). The index is comprised of three alternative fixed income strategies: Tactical High Yield, Dynamic Credit Default and Dynamic Government Bond.

Within the framework of modern portfolio theory, the fund optimizes the exposure to each of the underlying directional strategies on a volatility-weighted basis to provide ongoing portfolio diversification. The fund seeks to provide an optimal balance between managing risk and seeking absolute returns. Below is a description of each strategy:

Strategy Exposure
Tactical High Yield Seeks to provide long or flat (cash) exposure to global corporate high yield markets.
Dynamic Credit Default Seeks to provide long, short, or flat exposure to highly liquid credit default markets.
Dynamic Government Bond Seeks to provide long, short or flat exposure to long-term U.S. Treasury bond markets.

Exposure to Multiple Market Segments
The Arrow Alternative Solutions Fund fund offers the potential for increased diversification, enhanced risk-adjusted returns and reduced volatility. The fund’s returns are derived from three core portfolio strategies across distinct market segments, similar to those used by the ProfitScore Alternative Income Index (PSAI). The long/short/flat nature of the fund provides the ability for each of the strategies to act independently from one another, providing an additional layer of potential diversification. The directional long, short or flat position are based on a series of proprietary technical indicators that are customized for each specific market. Each of the three market segments presents different investment characteristics and challenges from year to year. The potential benefit of using a tactically managed blend of all three may provide the opportunity for improved risk/return characteristics over time.

 
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Before investing, please read the Fund's prospectus and shareholder reports to learn about its investment strategy and potential risks. Mutual Fund investing involves risk including loss of principal. An investor should also consider the Fund's investment objective, charges, expenses, and risk carefully before investing. This and other information about the fund is contained in the fund's prospectus, which can be obtained by calling 1-877-277-6933. Please read the prospectus carefully before investing. Distributed by Archer Distributors, LLC (member FINRA).

Arrow Funds may not be suitable for all investors. The funds' use of short selling involves increased risks and additional costs. The funds may invest in commodity- and currency-related securities, which may be subject to greater volatility than investments in traditional securities. The funds may invest in fixed income securities, which are subject to risks including interest rate, credit, inflation and counterparty risks. The use of derivatives such as futures, options and swap agreements may expose the funds to additional risks that it would not be subject to if it invested directly in the underlying securities. The funds may invest in international and emerging market securities which may be subject to special risks including currency fluctuation, government regulation, differences in accounting standards and liquidity. Investing in leveraged instruments will magnify any gains or losses on those instruments. The funds' potential use of short selling involves increased risks and additional costs. The funds may not replicate the exact performance of their benchmarks because of fees, expenses, transaction costs and portfolio tracking error of the underlying investments. The maximum sales charge for Class A is 5.75% and may be eligible for a reduction in sales charges. The funds charges a fee of 1.00% on redemptions of shares held less than 30 days. 1149-NLD-11/6/2008