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 alternative strategies."

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 Equity funds.

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                  Ticker
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 melinda@jcpublicrelations.com

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 standard 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 environment.

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%.

1089-AFD-10/30/2007

Contact Information

  • Melinda Staab
    JC Public Relations, Inc.
    973-400-1341
    Email Contact