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Investment Strategy
Seeks to achieve an appropriate balance between long-term capital appreciation and capital preservation. The Fund seeks to achieve its investment objective by implementing a proprietary tactical asset allocation (TAA) model.

Based on the technical analysis and relative strength expertise of:

Fund Highlights

  • Provides broad diversification across sectors, styles, international countries, fixed income and alternative assets with ETFs and equities
  • Gives access to the technical analysis expertise of Dorsey Wright & Associates
  • Follows a defined, moderate tactical allocation strategy
  • Core strategy with a strict relative strength buy and sell discipline

Who may want to Invest in the Arrow DWA Balanced Fund?
Investors seeking:

  • Diversification and risk management through tactical asset allocation with strict buy and sell disciplines
  • Exposure to alternative or specialty assets such as commodities and treasury inflation protected securities
  • An actively managed alternative to strategic asset allocation, target maturity and life cycle funds
  • A fund managed based on objective technical indicators that responds to inevitable changes in the market
  • Access to a model based on DWA’s technical analysis expertise

Investment Overview
The Dorsey Wright & Associates (DWA) model uses technical analysis to allocate among four market segments: U.S. and International Equities, Fixed Income and Alternative Assets.

*Scenario shown for illustrative purposes only. Portfolio allocations will vary.

Multiple Rotation Strategies
The four market segments are managed through the use of five underlying rotation strategies. The goal of each rotation strategy is to systematically identify and provide exposure to leading strategy components on an ongoing basis.

*Scenario shown for illustrative purposes only. Portfolio allocations will vary.

Response for Changing Market Conditions
The Fund seeks to moderately overweight market segments, rotation strategies, and ETFs exhibiting positive relative strength and underweight market segments, rotation strategies, and ETFs exhibiting negative relative strength. In essence, TAA works by reallocating at different times in response to the changing patterns of returns available in the markets. Below is a description of each rotation strategy, including minimum and maximum exposures and targeted number of ETF and equity holdings:

Sector RotationSeeks to provide sector exposure through individual equities equally weighted across the top 20% of 131 sub-industries.7.5%47.5%
Style RotationSeeks to provide exposure to leading U.S. styles (size, value, and growth) using approximately 2 ETFs.7.5%47.5%
International RotationSeeks to provide exposure to leading international countries using approximately 5 ETFs.10%40%
Fixed Income RotationSeeks to provide exposure to leading fixed income assets using approximately 2 ETFs.25%65%
Alternative RotationSeeks to provide exposure to instruments historically non-correlated to equity or fixed income investments using approximately 2 ETFs.10%40%

The following table highlights a portion of the broad universe of asset class exposure that could be used within each strategy:

*For illustrative purposes only. Portfolio allocations will vary and are not limited to the list above.