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Arrow DWA Tactical: Income Fund
Seeks Absolute Returns with Alternative Income
Investment Strategy
Investments that seek to produce income and total return.
TickerCusip
Class AASFFX042765107
Class CASFTX042765206
Class IASFNX042765305






Minimum Investment:

  • $5,000 non-qualified accounts
  • $2,000 retirement accounts
  • $250 subsequent investments
  • Class I minimum initial investment $1 million

  • Fund Type: Nontraditional Bond

    Fund Highlights
    • Exposure to a diversified tactical fixed income strategy
    • Core holding for fixed income
    • Gives access to the technical analysis expertise of Dorsey Wright & Associates
    • Capable of hedging exposure in periods of market corrections
    • Fixed Income model within the Arrow’s Balanced Fund since 2017
    • Changed from being the Arrow Dynamic Income Fund to the Arrow DWA Tactical: Income Fund on 12/1/2020
    Fixed Income Diversification
    The Advisor seeks to achieve its investment objective by implementing research around a Tactical Fixed Income model that was developed by Dorsey Wright in 2013 (Dorsey Wright Tactical Fixed Income Separate Account Strategy). The strategy returns are derived across distinct fixed income market segments based on relative strength trends. The fund will use a systematic methodology to tactically provide exposure to High Yield, Corporate, International and Convertible bonds, Inflation Protected Notes and Long-Term and Short-Term bonds.
    ADI-TheFinalPortfolioDec2020v2.jpg
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      Market Environments / Market Volatility

    The fund optimizes the exposure to each of the underlying directional strategies depending on market conditions. The strategy balances risk and reward. When fixed income markets are performing well, exposure will be tilted toward the sectors with the strongest trends. When markets are weak, exposure will be tilted more defensively. During risk-off environments, it is possible for the majority of the strategy to be invested in the U.S. Treasury market. The directional positions are based on a series of proprietary indicators that are customized for each specific market segment. The 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.

    Tactical Exposure to Fixed Income Segments
    The Dorsey Wright Tactical Fixed Income Strategy (DWTFI) was launched in 2013: The strategy returns are derived across distinct fixed income market segments based on relative strength trends. The year-to-year chart below presents different investment characteristics for the various fixed income segments that could be traded within the strategy.

    2014 2015 2016 2017 2018 2019 2020 SI Return*
    SI
    Risk
    *
    LT Bond
    11.34%
    ST Bonds   0.19% High Yield
    13.30%
    Convertible
    12.18%
    ST Bonds
    0.92%
    Convertible
    21.48%
    Convertible
    39.91%
    Convertible
    11.31%
    ST Bonds
    1.77%
    DWTFI
    9.67%
    Core Bond
    -0.26%
    Emerg Mkt
    10.51%
    Emerg Mkt
    10.25%
    Core Bond
    -0.50%
    LT Bond
    19.31%
    DWTFI
    18.57%
    LT Bond
    6.08%
    Core Bond
    2.99%
    Corporate
    6.93%
    Corporate
    -1.39%
    DWTFI 9.85% LT Bond
    9.74%
    DWTFI
    -0.54%
    Corporate
    13.03%
    LT Bond
    14.28%
    DWTFI
    5.80%
    Non Trad Bd 3.65%
    Convertible 
    6.37%
    Non Trad Bd -1.41% Convertible
    7.68%
    High Yield
    6.47%
    Non Trad Bd -1.17% High Yield
    12.62%
    TIPS
    10.04%
    Corporate
    4.51%
    TIPS 4.02%
    Core Bond
    5.18%
    TIPS
    -2.36%
    Corporate
    6.51%
    Corporate
    5.79%
    TIPS
    -1.64%
    Emerg Mkt
    12.59%
    Corporate
    9.26%
    High Yield 
    4.35%
    DWTFI   5.12%
    TIPS
    1.80%
    DWTFI
    -2.45%
    LT Bond
    6.05%
    Non Trad Bd  4.06% Convertible
    -2.11%
    DWTFI
    12.17%
    Core Bond
    7.52%
    Core Bond
    3.23%
    Corporate 5.17%
    Non Trad Bd 1.24% LT Bond
    -2.58%
    Non Trad Bd 5.28% DWTFI 3.97% Corporate
    -2.49%
    Core Bond
    8.06%
    Emerg Mkt
    5.07%
    Emerg Mkt
    2.36%
    High Yield
    6.59%
    High Yield 
    1.11%
    Convertible
    -3.67%
    TIPS
    4.59%
    Core Bond
    3.71%
    High Yield
    -2.59%
    TIPS
    7.92%
    High Yield 4.86%Non Trad Bd 2.10%
    LT Bond 7.42%
    ST Bonds
    1.07%
    High Yield
    -4.01%
    Core Bond
    3.23%
    TI7PS
    2.72%
    LT Bond 
    -3.26%
    Non Trad
    Bd 6.69%
    ST Bonds 3.79%TIPS
    1.84%
    Emerg Mkt 8.98%
    Emerg Mkt
    -0.80%
    Emerg Mkt
    -5.99%
    ST Bonds
    2.08%
    ST Bonds 1.73% Emerg Mkt
    -4.93%
    ST Bonds
    4.72%
    Non Trad Bd 3.44%ST Bonds
    1.83%
    Convertible
    10.87%
    Performance displayed represents past performance, which is no guarantee of future results. Categories are based on Morningstar category data. Category returns assume reinvestment of dividends and are net of management fees, transaction costs or expenses. The number of funds in a category will vary, subject to survivorship bias from fund closure and recategorization. The driving principles behind the Morningstar classification system is categories have enough constituents to form the basis for reasonable peer group comparisons and portfolios within a category invest in similar types of securities. The distinctions between categories are meaningful to investors and assist in their pursuit of investing goals. Data is shown for illustrative purposes and is not intended to reflect fund performance. Proxies: High Yield (US Fund High Yield Bond), LT Bond (US Fund Long-Term Bond). Corporate (US Fund Corporate Bond), Core Bond (US Fund Intermediate Core Bond), Emerg Mkt (US Fund Emerging Markets Bond), Convertible (US Fund Convertibles), TIPS (US Fund Inflation-Protected Bond), ST Bonds (US Fund Short-Term Bond), and Non Trad Bd (US Fund Nontraditional Bond). DWTFI is the separate account strategy of the Dorsey Wright Tactical Fixed Income less additional 75 bps. Source: Morningstar Direct, calculated by Arrow. For more information on category averages, click here.

    *
    Since Inception (SI) and Since Inception (SI) Risk (Standard Deviation) are based on averages from 4/1/2013 through 12/31/2020.

    TickerCusipOperating
    Expenses*
    Total Fund
    Expenses
    Class AASFFX0427651072.62% 3.19%
    Class CASFTX0427652063.37%3.94%
    Class IASFNX0427653052.37% 2.94%
    *Plus acquired fund fees of 0.57%.

    For periods less than one year, performance is not annualized. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-877-277-6933. The maximum sales charge for Class A is 5.75% and may be eligible for a reduction in sales charges. Arrow DWA Tactical: Income Fund’s operating expenses are 2.62% for Class A, 3.37% for Class C and 2.37% for Class I. With acquired fund fees and expenses of 0.57%, the fund’s total expenses are 3.19%, 3.94% and 2.94%, respectively. For standardized performance click here.

    2Standard deviation (Risk) is a statistical measurement of volatility based on historical returns. Absolute Returns are generally positive returns in any market environment. There is no guarantee that any investment will achieve this objective.

    The Arrow DWA Tactical: 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. The fund may invest in mortgage-backed securities, which are subject to additional risks including higher volatility, real estate market risk and possible illiquidity and default risk.

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