Arrow Chief Investment Officer, William E. Flaig, Interviews With The Wall Street Transcript

Flaig Also Authors Academic White Paper on Portfolio Creation Using Alternative Asset Allocations


OLNEY, MD--(Marketwire - March 7, 2008) - Arrow Funds is pleased to announce that they have just posted a recent interview with The Wall Street Transcript and William E. Flaig, Chief Investment Officer for Arrow Funds. Additionally, Mr. Flaig has authored an academic white paper on "Alternative Asset Allocation."

In his interview, Mr. Flaig goes into great detail about the Arrow Alternative Solutions Fund (NASDAQ: ASFFX) and the benefits that offering hedge fund strategies within a mutual fund vehicle can provide to investors. He also speaks to the need for investors to have exposure to absolute return strategies in their portfolios.

The Arrow Alternative Solutions Fund combines three alternative strategies which provide exposure to long/short equities, fixed income arbitrage and managed futures. "The Arrow Alternative Solutions Fund is a perfect complement to our flagship fund, the Arrow DWA Balanced Fund," (NASDAQ: DWAFX) says Joseph Barrato, CEO at Arrow Funds. "When combined with a tactical or strategic portfolio, the fund has the ability to enhance returns while reducing overall risk."

In addition, Arrow Funds recently released a white paper authored by Mr. Flaig that is a comprehensive piece on creating "Alternative Asset Allocation" portfolios. In this academic study, Mr. Flaig explains how a portfolio manager can capture risk premiums and market inefficiencies by using long/short portfolio construction techniques referred to as "Absolute Return Factors." The white paper is available to financial professionals on the Arrow Funds website.

About Arrow Funds

Arrow Investment Advisors, LLC, the advisor to Arrow Funds, is an investment management firm dedicated to providing education, research, and product solutions to the financial intermediary community. Arrow Funds identifies and develops investment products that seek to enhance returns and mitigate risk. The firm is committed to delivering superior performance while providing the highest level of customer service. To learn more about Arrow Funds, please visit www.arrowfunds.com.

An investor should consider the Fund's investment objective, risks, charges, and expenses carefully before investing or sending money. This and other information about Arrow Funds is contained in the Fund's prospectus, which can be obtained by calling 1-877-277-6933. Please read the prospectus carefully before investing. Arrow Funds is distributed by Aquarius Fund Distributors, LLC member FINRA/SIPC.

The 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 associated risks, 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. The maximum sales charge for A-shares is 5.75%. A-shares investors may be eligible for a reduction in sales charges. The Fund charges a fee of 1.00% on redemptions of shares held less than 30 days. The Fund's annual operating expense is 1.52%.

Contact Information: To request more information or to speak with Mr. Flaig, please contact: Joseph Barrato (301) 260-0162