Arrow Reserve Capital Management ETF (ARCM)

Overview

The fund described focuses on investment in domestic fixed income securities with a strategic approach towards managing a short-term portfolio. By targeting fixed-income instruments with a dollar-weighted average effective maturity ranging from 0 to 2 years, the fund is positioned in a way that caters to investors looking for investment opportunities in the shorter end of the maturity spectrum. This approach not only caters to the risk-averse investor by focusing on securities rated Baa- or higher by major credit rating agencies such as Moody’s, S&P, or Fitch but also leverages the expertise of its sub-advisor for assessing securities that are not rated. The selection criteria employed ensure that all investments are in U.S. Dollar-denominated issuers, covering a broad array of fixed-income instruments including mortgage- or asset-backed securities, which are assessed for quality and risk to provide a balanced and diversified portfolio for the fund's investors.

Products and Services

• Domestic Fixed Income Securities

  Investment in various fixed income securities issued within the United States. These include bonds and other debt instruments primarily aimed at investors seeking stable and predictable returns. The fund's focus remains on securities that provide a balance between yield and risk, particularly appealing to conservative investors or those with a short investment horizon.

• Mortgage- or Asset-Backed Securities

  Part of the fund's portfolio includes investments in mortgage- or asset-backed securities. These are complex financial products that are secured by a pool of assets, typically loans or receivables. The inclusion of such securities is aimed at diversifying the fund's income streams and potentially enhancing yield, all while remaining within the fund’s risk management framework.

• Short-Term Investment Strategy

  The fund employs a short-term investment strategy by focusing on securities with a dollar-weighted average effective maturity of 0 to 2 years. This strategy is particularly suitable for investors looking for less volatile investments and those with a shorter time frame, offering liquidity and preservation of capital.

• Credit Quality Assessment

  All investments are subjected to a stringent credit quality assessment, focusing on securities rated Baa- or higher by Moody’s, S&P, or Fitch. For securities that are unrated, the fund relies on its sub-advisor’s expertise to determine comparable quality. This ensures that the fund maintains a high credit quality threshold, minimizing the risk of default and securing the investor's capital.