SOURCE: Arrow Funds
October 31, 2007 09:13 ET
Arrow Launches New Alternative Core Product
Fund Seeks Absolute Returns With Targeted Risk
OLNEY, MD--(Marketwire - October 31, 2007) - Arrow Funds is pleased to announce the launch of
its second open-end mutual fund today -- the Arrow
Alternative Solutions Fund (ASFFX). The new fund seeks to provide
absolute returns via three long/short investment strategies and will be
managed by Arrow's latest team addition, Mr. William E. (Bill) Flaig Jr.,
chief investment officer.
"The unique design of the Arrow Alternative Solutions Fund allows for low
correlations to traditional assets with greater diversification, a risk
target and controls, using passive investment strategies at a lower cost
than most long/short products," states Flaig. The Fund uses an absolute
returns strategy, which attempts to lower the volatility that normally
arises from market risk. The Fund's investors will have all the benefits of
traditional hedge funds in addition to daily liquidity, transparency, low
investment minimums, and the safety provided by SEC regulation. "It's the
best of the mutual fund and hedge fund worlds," says Flaig.
The Fund seeks to achieve a risk target of 7% and total rate of return that
meets or exceeds 10% per year over a rolling 3-5 year time horizon. Using a
systematic quantitative methodology, the Fund attempts to provide absolute
returns with minimal risk and correlation to the traditional U.S. equity or
fixed-income instruments -- quite similar to a hedge fund. This is achieved
through the optimization of three distinct long/short strategies: Hedged
Equity, 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, executive vice
president at Arrow Funds. "Both funds are keeping with Arrow Funds' vision
-- to deliver innovative investment strategies that seek to enhance returns
and mitigate risk. We are excited to have Bill on the team given his
industry experience in managing and creating
Bill joined Arrow Funds as the chief investment officer and has been
instrumental in the development of the strategy of the Arrow Alternative
Solutions Fund. He joins Arrow Funds with more than 15 years of financial
services and portfolio management experience. Prior to joining Arrow, Bill
was the director of investment strategies at Rydex Investments. At Rydex,
he was instrumental to the development of the firm's hedge fund replication
strategies and the development of the Rydex Absolute Return and the Hedged
The Arrow Alternative Solutions Fund has a minimum initial investment of
$5,000 -- or $2,000 for retirement accounts -- and a minimum of $250 for
all subsequent investments.
Class A Shares ASFFX
Advisor Class ASFTX
To request more information or to speak with Joseph Barrato or Bill Flaig,
please contact Melinda Staab at 973-400-1341 or
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.
Notes: Volatility is a measure of fluctuations in value based on annualized
deviation of monthly returns. Beta is a measure of relative risk.
Correlation is similarity in performance to the equity markets. Absolute
Returns are defined as generally positive returns in any market
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%.