The Arrow Reserve Capital Management ETF may not be suitable for all investors. New funds have a limited performance record. Exchange traded products are bought and sold at market price, not NAV, and are not individually redeemed from the fund. Buying and selling shares generally results in brokerage commissions which will reduce returns. The market price may be higher (premium) or lower (discount) than the Net Asset Value (NAV). The fund’s portfolio may underperform its benchmark and/or other asset classes. The fund’s use of fixed income securities is subject to risks including interest rate, credit, prepayment, issuer-specific, regulatory and inflation. 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. The fund’s use of asset-backed and mortgage-backed securities are subject to risks including non-payment of borrows resulting the potential for under collateralized debt valuations and payments. This fund is not a money market.
Arrow Reserve Capital Management ETF Conservative Ultra Short-Term Fixed Income Strategy
Investment Strategy Seeks to preserve capital while maximizing current income.
Fund Highlights
Conservative ultra short-term fixed income strategy
Designed to provide an alternative to low yielding money market and non-yielding cash positions
Sub-advised by Halyard Asset Management, LLC
Conservative Ultra Short-Term Fixed Income The Arrow Reserve Capital Management ETF (ARCM) is a conservative ultra short-term fixed income fund that invests in a variety of investment grade fixed income securities with maturities generally ranging from 0 to 2 years. The fund is sub-advised by Halyard Asset Management, LLC, leaders in reserve capital and fixed income strategies.
ARCM is actively managed in an attempt to maximize income potential without substantially increasing portfolio risk. The fund tries to identify holdings that offer an acceptable yield and return potential for a given level of credit risk and maturity.
Portfolio Exposure Rather than being constrained to a narrow set of investments, ARCM's portfolio may provide exposure to a variety of domestic fixed income holdings including corporate, agency and government securities. The fund may also use futures and forward contracts in an attempt to gain exposure to a particular group of securities or asset class without actually purchasing those securities, or to hedge interest rate risk. In general, the fund has a flexible approach in order to achieve a conservative ultra short–term fixed income portfolio.
Duration is a measure used to estimate the sensitivity of a security's price to changes in interest rates—the longer a security's duration, the more sensitive it will be. The average duration of ARCM's portfolio is generally expected not to exceed eighteen months and will vary depending on interest rate forecasts and other market factors.
Reserve Capital Management ARCM should appeal to investors who are looking for a choice beyond low yielding money markets and non-yielding cash positions. ARCM is a conservative ultra short-term fixed income fund and is not a money market fund. By taking a conservative approach to volatility and yield, ARCM intends to reduce the gap between cash/money market and the bond funds based on historical market yield and volatility.
*Income/Other and Total Distribution may include income, dividends, return of capital, or other forms of payment. Return of capital is considered a return of the investment principal and is not derived from net profits.
Past performance is no guarantee of future results. The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost.
Past distributions are not indicative of future distributions. There is no guarantee a distribution will occur. Shares of funds are bought and sold at market price (not NAV) and are not individually redeemed from the fund. Brokerage commissions will reduce returns.
Before investing, please read the prospectus and shareholder reports to learn about the investment strategy and potential risks. Investing involves risk including loss of principal. An investor should also consider the investment objective, charges, expenses, and risk carefully before investing. This and other information is contained in the prospectus, which can be obtained by calling 1-877-277-6933. Please read the prospectus carefully before investing. Content reviewed by an affiliate, Archer Distributors, LLC.
