Description
emotions from the process, through a well-defined systematic
approach—such as technical analysis, fundamental analysis
or dollar cost averaging.
THE DISCIPLINED INVESTMENT PROCESS
The Arrow DWA Balanced Fund is an asset allocation fund
that provides broad diversification across sector, style,
international, fixed income, and alternative asset classes.
Its tactical approach reallocates portfolio segments, within
certain bands, to stay responsive to market conditions.
Over the long term, the financial markets have generally
followed an upward trend—with downward volatility along
the way. It is during the volatile periods that the investor
needs to turn panic into a buying opportunity. Fluctuations
in the stock market are to be expected. Investing when
prices are low brings the highest returns.
Our portfolio strategy does have a strict buy and sell
discipline which removes emotion from the investment
process.
The systematic process is executed with technical analysis. The Fund is intended for patient investors seeking an investment vehicle for contributions at regular intervals, in both up and down markets. A disciplined investment process helps provide protection through even the worst markets. According to the QAIB study, the easiest way to achieve this discipline is with an asset allocation fund. The Fund is appropriate for the investor who takes advantage of market drops as a buying opportunity—a commitment which requires discipline, but which should ultimately be rewarded. The benefits of asset allocation funds, which usually have exposure to a variety of asset classes, come from their design and construction.
These funds handle portfolio rebalancing for investors, so they project a retention rate of 5.2 years, indirectly limiting losses caused by fear-based selling. Market drops provoke fear and anxiety among investors— but ultimately, when the market recovers, it rewards those who treated the drawdown as a buying opportunity. For example, a drawdown occurred for the Fund between February 21 and March 5, 2007, when its NAV dropped from 11.35 to 10.61, a loss of 6.5%. Thirty-six days later, on April 10, the Fund had climbed back up to an NAV of 11.32, recovering 6.69% from the low point of March 5.
On April 16 the Fund exceeded its previous high, as its NAV reached 11.40. An asset allocation fund can also serve as an investment vehicle for contributions, at regular intervals, in up and down markets. This turns market fluctuations into potential buying opportunities, and, as more shares are bought at lower prices, reduces the effects of market risk. This is an easy concept to state, but it takes patience and discipline to stick with. Performance displayed represents past performance, which is no guarantee of future results.
The maximum sales charge for Ashares is 5.75%. A-share 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 Funds Annual Operating expense is 1.75%. Notes: 1 The 2007 QAIB study was performed and obtained from an independent third party, DALBAR, Inc. DALBAR is not associated with Arrow Funds. The information herein is believed to be reliable, but accuracy and completeness cannot be guaranteed. 2 The DWA Balanced Strategy reflects hypothetical or simulated performance figures and is not meant to represent actual performance results for the Arrow DWA Balanced Fund.
Past performance is not indicative of future results. Potential for profit is accompanied by possibility of loss. These figures reflect a simulated portfolio managed with the DWA Balanced Strategy using actual & hypothetical performance data for various Exchanges Traded Funds (ETFs) based on DWA’s analysis.
The simulated model was constructed using their proprietary set of rules for the purchase and sale of ETFs for each underling strategy as outlined in the Arrow DWA Balanced Fund prospectus. There can be no assurance that actual transactions would have given the same results, although the manager believes results of actual trades would have been very similar. Performance results reflect the re-investment of dividends and other earnings. The performance results are net transaction costs and operating expenses associated with the management of the DWA Balanced Strategy.
The performance of the Hypothetical DWA Balanced Strategy was reduced by 200 bps annually. Disclosure 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 is distributed by Aquarius Fund Distributors, LLC member FINRA/ SIPC. The Fund may invest in commodity related securities, which may be subject to greater volatility than investments in traditional securities.The Fund may invest in international and emerging market securities, which may be subject to special risks including fluctuations in currency, government regulation, differences in accounting standards and liquidity.
The Fund may invest in small-cap securities, which may have special risks associated including wider variations in earnings and business prospects than larger, more established companies. The Fund may invest in real estate related securities, which may be subject to mortgagerelated risks and real estate market fluctuations. The Fund may invest in ï¬xed income securities, which are subject to risks including interest rate, credit and inflation.The Fund is nondiversiï¬ed as there are a limited number of underlying funds available and each holding has the potential for a greater impact on the Fund’s return.
However, the underlying funds have access to a large number of different investments providing the additional diversiï¬cation beneï¬ts discussed in the prospectus. Diversiï¬cation does not assure a proï¬t or protect against loss in a declining market. The maximum sales charge for A-shares is 5.75%.
Ashare 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. 0903-AFD-9/11/2007 .
The systematic process is executed with technical analysis. The Fund is intended for patient investors seeking an investment vehicle for contributions at regular intervals, in both up and down markets. A disciplined investment process helps provide protection through even the worst markets. According to the QAIB study, the easiest way to achieve this discipline is with an asset allocation fund. The Fund is appropriate for the investor who takes advantage of market drops as a buying opportunity—a commitment which requires discipline, but which should ultimately be rewarded. The benefits of asset allocation funds, which usually have exposure to a variety of asset classes, come from their design and construction.
These funds handle portfolio rebalancing for investors, so they project a retention rate of 5.2 years, indirectly limiting losses caused by fear-based selling. Market drops provoke fear and anxiety among investors— but ultimately, when the market recovers, it rewards those who treated the drawdown as a buying opportunity. For example, a drawdown occurred for the Fund between February 21 and March 5, 2007, when its NAV dropped from 11.35 to 10.61, a loss of 6.5%. Thirty-six days later, on April 10, the Fund had climbed back up to an NAV of 11.32, recovering 6.69% from the low point of March 5.
On April 16 the Fund exceeded its previous high, as its NAV reached 11.40. An asset allocation fund can also serve as an investment vehicle for contributions, at regular intervals, in up and down markets. This turns market fluctuations into potential buying opportunities, and, as more shares are bought at lower prices, reduces the effects of market risk. This is an easy concept to state, but it takes patience and discipline to stick with. Performance displayed represents past performance, which is no guarantee of future results.
The maximum sales charge for Ashares is 5.75%. A-share 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 Funds Annual Operating expense is 1.75%. Notes: 1 The 2007 QAIB study was performed and obtained from an independent third party, DALBAR, Inc. DALBAR is not associated with Arrow Funds. The information herein is believed to be reliable, but accuracy and completeness cannot be guaranteed. 2 The DWA Balanced Strategy reflects hypothetical or simulated performance figures and is not meant to represent actual performance results for the Arrow DWA Balanced Fund.
Past performance is not indicative of future results. Potential for profit is accompanied by possibility of loss. These figures reflect a simulated portfolio managed with the DWA Balanced Strategy using actual & hypothetical performance data for various Exchanges Traded Funds (ETFs) based on DWA’s analysis.
The simulated model was constructed using their proprietary set of rules for the purchase and sale of ETFs for each underling strategy as outlined in the Arrow DWA Balanced Fund prospectus. There can be no assurance that actual transactions would have given the same results, although the manager believes results of actual trades would have been very similar. Performance results reflect the re-investment of dividends and other earnings. The performance results are net transaction costs and operating expenses associated with the management of the DWA Balanced Strategy.
The performance of the Hypothetical DWA Balanced Strategy was reduced by 200 bps annually. Disclosure 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 is distributed by Aquarius Fund Distributors, LLC member FINRA/ SIPC. The Fund may invest in commodity related securities, which may be subject to greater volatility than investments in traditional securities.The Fund may invest in international and emerging market securities, which may be subject to special risks including fluctuations in currency, government regulation, differences in accounting standards and liquidity.
The Fund may invest in small-cap securities, which may have special risks associated including wider variations in earnings and business prospects than larger, more established companies. The Fund may invest in real estate related securities, which may be subject to mortgagerelated risks and real estate market fluctuations. The Fund may invest in ï¬xed income securities, which are subject to risks including interest rate, credit and inflation.The Fund is nondiversiï¬ed as there are a limited number of underlying funds available and each holding has the potential for a greater impact on the Fund’s return.
However, the underlying funds have access to a large number of different investments providing the additional diversiï¬cation beneï¬ts discussed in the prospectus. Diversiï¬cation does not assure a proï¬t or protect against loss in a declining market. The maximum sales charge for A-shares is 5.75%.
Ashare 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. 0903-AFD-9/11/2007 .
