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Alternative Solutions Fund
Fact Sheet
Fund Holdings

Summary Prospectus
Class A & C
Class I

Ticker Symbols:

Class A


Class C


Class I


CUSIP Numbers:

Class A


Class C


Class I


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


Class C


Class I


* Arrow Alternative Solutions Fund's total expenses are capped by a contractual fee waiver at 1.65% for Class A, 2.40% for Class C and 1.40% for Class I, effective until at least November 30, 2015. Before reimbursement, the fund's fees are 2.44% for Class A, 3.19% for Class C and 2.19% for Class I. With acquired fund fees and expenses of 0.16%, the fund's total expenses are 2.60%, 3.35% and 2.35%, respectively.

Fund Type:
Nontraditional Bond

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

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. The fund's use of short selling involves increased risks and additional costs. The fund may invest in fixed income securities, which are subject to risks including interest rate, credit and inflation.


Investment Strategy
The fund 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

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 that follows the trade signals of 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.

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 a balance of managing risk and seeking absolute returns. Below is a description of each strategy:

Tactical High YieldSeeks to provide long or flat (cash) exposure to global
corporate high yield markets.
Dynamic Credit DefaultSeeks to provide long, short, or flat exposure to highly
liquid credit default markets.
Dynamic Government BondSeeks to provide long, short, or flat exposure to
long-term U.S. Treasury bond markets.

The directional long, short or flat position are based on a series of proprietary indicators that are customized for each specific market segment. 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 and the ability to respond to changing market and interest rate environments.

Exposure to Multiple Market Segments
The Arrow Alternative Solutions Fund’s returns are derived from three core portfolio strategies across distinct market segments: high yield, credit default, and long-term bonds. As illustrated below, each of the three market segments presents different investment characteristics from year to year. Also shown is a long-only blend of all three market segments, using index proxies, based on the fund’s strategy portfolio weights. The potential benefit of using a blend of all three may provide the opportunity for improved risk/return characteristics over time: versus traditional bonds (U.S. Aggregate Bond Index).

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