Arrow Managed Futures Strategy Fund Institutional Class (MFTNX)

Overview

The fund specializes in a dual investment strategy focusing on both fixed income and managed futures to pursue its investment objectives. With a dynamic approach that allows for investing in a variety of financial instruments, the fund aims to generate returns through carefully curated investments in fixed income securities and engaging in futures trading via a controlled subsidiary. This methodical approach positions the fund to potentially benefit from various market conditions by leveraging the stability of fixed income investments alongside the opportunities presented in the futures markets.

Products and Services

The fund offers diverse financial instruments as part of its fixed income and managed futures strategies:

• Wholly-owned Subsidiary Investments for Managed Futures Strategy: Up to 25% of the fund's total assets are invested in a wholly-owned and controlled subsidiary to execute its managed futures strategy, aiming to capitalize on the movements in the futures markets.
• Investments in U.S. Government Securities: The fund invests directly or indirectly in U.S. government securities as part of its fixed income strategy, providing a secure and stable investment option with relatively lower risk.
• Short-term, High Quality Fixed-Income Securities: It includes investments in high quality, short-term fixed-income securities, focusing on preserving capital and attaining a steady income with low credit risk.
• Money Market Instruments: As part of its approach to manage liquidity and achieve short-term returns, the fund invests in various money market instruments, which are essentially short-term debt securities.
• Overnight and Fixed-Term Repurchase Agreements: To further its income generation goals, the fund engages in overnight and fixed-term repurchase agreements, providing a mechanism for securing short-term borrowing through collateralized loans.
• Cash and Cash Equivalents with Maturities of One Year or Less: The fund holds cash and investments in cash equivalents with short maturities to ensure liquidity and flexibility in its investment operations.