LAUREL, MD –(Marketwired – June 29, 2016) – Now more than ever, Arrow Funds is upholding its mission to bring institutional-style investments mainstream with the rapidly growing Arrow Managed Futures Strategy Fund (NASDAQ: MFTNX). The fund — which provides first-time mutual fund exposure to the #4 investment strategy on Barron’s Top 100 Hedge Fund List — has quickly attracted new investors, growing from $3 million to more than $100 million in assets since it began offering access to DUNN Capital’s award-winning World Monetary and Agriculture (WMA) program late last summer. Year-to-date the fund has returned 8.98% as of 6/24/16 compared to the Credit Suisse Managed Futures Liquid Index’s 4.35% for the same time period. MFTNX also ranks at the top of its mutual fund peer group year-to-date.
“From an unprecedented U.S. election year to Britain’s decision to leave the European Union, recent current events continue to cause uncertainty in the markets,” says Joseph Barrato, CEO and Director of Investment Strategy at Arrow Investment Advisors, LLC (Arrow). “It’s not surprising that we are seeing investors once again embrace managed futures as a way to enhance diversification and reduce portfolio risk. We are pleased to offer the only managed futures mutual fund that provides access to DUNN Capital Management — a CTA pioneer with a history of producing a high composite rate of returns over times.”
DUNN’s WMA program utilizes a systematic, long-term trend following strategy to invest in a portfolio of financial, energy, metal and agricultural futures. The program invests in more than 50 global market segments and can go long or short in each of the markets. The DUNN approach emphasizes capital growth through the use of a higher volatility strategy when compared with many other CTAs and managed futures strategies that often place an emphasis on lower volatility and capital preservation. Rather than targeting a static risk level, DUNN uses an adaptive Value at Risk (VaR) approach that recalibrates the risk target daily based on changing market conditions. As a result, the WMA program has the ability to capture upside potential during favorable market environments.
“DUNN’s higher volatility approach is unique among managed futures strategies that tend to target a low risk-level and consequently underperform the broad equity markets,” says Barrato. “We spend a great deal of time emphasizing this point with clients and providing education about the potential benefits of using a high volatility strategy that can take better advantage of market opportunities and generate the kind of returns that enhance diversification. DUNN’s WMA program is one of the few investment strategies that have a 30-year track record with double-digit returns.”
Arrow’s partnership with DUNN Capital is the latest example of the firm’s push to make alternative investing more accessible for financial advisors and their individual investor clients. Since Barrato co-founded Arrow in 2006, the boutique asset manager has sought to deliver mutual funds and exchange traded funds designed to help investors build portfolios that can adapt to changing market conditions with an emphasis on alternatives and tactical investment solutions. In addition to its managed futures fund, Arrow offers indexed and smart beta solutions, alternative fixed income, global equity, high yield and broad-based commodity strategies.