Arrow Dynamic Income Fund Seeks Absolute Returns with Alternative Income

Investment Strategy The fund seeks income, and long-term capital appreciation with an emphasis on absolute returns, low volatility, and low correlation to traditional equity and fixed income markets.

Fund Highlights Exposure to four alternative fixed income      strategies Low correlation to traditional investments Core holding for alternative investment      allocations Investments that seeks to produce income      while preserving capital

Diversification Across Alternate Strategies The Arrow Dynamic Income Fund (formerly known as the Arrow Alternative Solutions Fund) is a mutual fund that delivers unique risk and return characteristics. Alternative strategies have historically exhibited relatively low correlation to traditional investments, such as equities & bonds. The fund uses a systematic methodology comprised of four alternative fixed income strategies: Tactical High Yield, Dynamic Credit Default, Dynamic Government Bond, and Residential Mortgage Backed Securities. The fund optimizes the exposure to each of the underlying directional strategies based on the market environment. The fund seeks to provide a balance of managing risk and seeking absolute returns. Below is a description of each strategy: Strategy Exposure Tactical High Yield Seeks to provide long or flat (cash) exposure to global corporate high yield markets. Dynamic Credit Default Seeks to provide long, short, or flat exposure to highly liquid credit default markets. Dynamic Government Bond Seeks to provide long, short, or flat exposure to long-term U.S. Treasury bond markets. Residential Mortgage Backed Securities (RMBS) Seeks to provide long or flat exposure to residential mortgage backed securities and other MBS securities. The directional long, short or flat positions are based on a series of proprietary indicators that are customized for each specific market segment. The long/short/flat nature of the fund provides the ability for each of the strategies to act independently from one another, providing an additional layer of potential diversification and the ability to respond to changing market and interest rate environments.

Exposure to Multiple Market Segments The Arrow Dynamic Income Fund’s returns are derived from four core portfolio strategies across distinct market segments: high yield, credit default, long-term bonds and residential mortgage backed securities. As illustrated below, each of the four market segments presents different investment characteristics from year to year. 2014 2015 2016 2017 2018 5-Year Avg. Standard Deviation (5 yrs.) Corr. (5 yrs.) LT Bond 18.33% ASFNX 5.40% High Yield 15.33% LT Bond 8.98% Credit Def. 0.85% LT Bond 5.01% LT Bond 10.57% U.S. Agg. 1.00 RMBS 4.71% RMBS 0.64% Credit Def. 11.28% Credit Def. 7.52% RMBS 0.15% Credit Def. 4.41% High Yield 5.07% LT Bond 0.93 U.S. Agg. 4.05% U.S. Agg. 0.55% ASFNX 11.17% RMBS 7.41% U.S. Agg. 0.01% RMBS 3.60% Credit Def. 4.16% RMBS 0.21 ASFNX 2.35% Credit Def. 0.54% RMBS 4.35% High Yield 6.34% ASFNX -0.63% ASFNX 3.29% ASFNX 4.06% High Yield 0.18 Credit Def. 1.16% LT Bond -1.59% U.S. Agg. 2.65% U.S. Agg. 3.54% High Yield -1.51% High Yield 2.81% U.S. Agg. 2.80% Credit Def. 0.01 High Yield -0.54% High Yield -5.03% LT Bond 1.43% ASSFNX -2.14% LT Bond -2.00% U.S. Agg. 2.26% RMBS 2.49% ASFNX -0.10 Performance displayed represents past performance, which is no guarantee of future results. Index performance assumes reinvestment of dividends, but does not include fees. Indexes are not available for direct investment. Index data is shown for illustrative purposes and is not intended to reflect fund performance. Index proxies: High Yield (IBOXX Liquid HY Index), Credit Default (Markit CDX Index), LT Bond (Barclays UST 20+Yr Index) and RMBS (Morningstar US Mortgage Bond Index). ASFNX is the institutional share class of the Arrow Dynamic Income Fund. Standard Deviation (a measure of volatility) is based on five year averages from 4/1/2014 through 12/31/2018. Data for 2014 is based upon 4/1/2014 through 12/31/2014 data. Data for the 5-year average and 5-year correlation based upon 4/1/2014-12/31/2018 data. Source: Morningstar Direct, calculated by Arrow. The Arrow Dynamic Income 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. The fund's use of short selling involves increased risks and additional costs. The fund may invest in fixed income securities, which are subject to risks including interest rate, credit and inflation.