Item 1. Reports to Stockholders.
Arrow
Reserve Capital Management ETF
ARCM
Annual
Report
January
31, 2020
1-877-277-6933
1-877-ARROW-FD
www.ArrowFunds.com
Beginning
on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Funds
shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports.
Instead, the reports will be made available on the Funds website www.ArrowFunds.com, and you will be notified by mail each
time a report is posted and provided with a website link to access the report.
If
you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take
any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your
financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by following the instructions included
with paper Fund documents that have been mailed to you.
Dear
Shareholder:
We
are pleased to present this annual report for the Arrow Reserve Capital Management ETF (ARCM or the Fund)
for the one-year period ended January 31, 2020. 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 zero to two years. The Fund is sub-advised
by Halyard Asset Management, LLC, a leader 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.
Managements
Discussion of Fund Performance
All
Fund performance herein is based on net asset value (NAV) and assumes the reinvestment of distributions, without
regard to individual taxes or withholdings. Index returns assume reinvestment of distributions, but do not include fees. Individual
performance will vary due to a number of factors, including, but not limited to, trading commissions, bid/ask spreads, premium/discounts
relative to the NAV, time of trading and other potential market factors—please refer to the Funds prospectus for
more information.
For
the one-year period ended January 31, 2020, performance of ARCM was 2.37%. For a comparison, the FTSE US 6 Month Treasury Bill
Total Return Index was 2.32% for the same period. Since the Funds inception on March 31, 2017, the Fund has an annualized
total return of 1.81% and the FTSE US 6 Month Treasury Bill Total Return Index was up 1.83% for the same period. With a large
mix of floating rate notes, the Fund performed well as the Federal Reserve decreased the Fed Funds target three times in 2019,
which was a trend reversal after raising the target four times during 2018.
Overall,
the Funds strategy performed admirably for the year with the majority of the holdings contributing in a positive way to
the portfolio. As the Federal Reserve began to lower the Fed Funds Rate, the yield of the Fund began to flatten. The Fund generally
pays distributions monthly, or as needed if special distributions are required. As of the last distribution made during the reporting
period on January 31, 2020, the Funds 30-day U.S. Securities and Exchange Commission yield was 1.54% and the 12-month distribution
yield was 2.45%.
For
more information about current performance, holdings, or historical premiums/discounts, please visit our website at www.arrowfunds.com.
We are grateful for your continued confidence in our company.
Sincerely,
Joseph
J. Barrato
Chief Executive Officer
Arrow
Investment Advisors, LLC
March 2020
AD-031920
Arrow
Reserve Capital Management ETF
|
PORTFOLIO
REVIEW (Unaudited)
|
January
31, 2020
|
The
Funds performance figures* for the year ended January 31, 2020, as compared to its benchmark:
|
|
Annualized
|
|
|
Since
Inception** -
|
|
One
Year
|
January
31, 2020
|
Arrow
Reserve Capital Management ETF - NAV
|
2.37%
|
1.81%
|
Arrow
Reserve Capital Management ETF - Market Price
|
2.55%
|
1.82%
|
FTSE
Treasury Bill 6 Month USD Index
|
2.32%
|
1.83%
|
|
*
|
The
Funds past performance does not guarantee future results. The investment return and principal value of an investment in the Fund
will fluctuate so that an investors shares, when redeemed, may be worth more or less than their original cost. The returns shown
do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares.
Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent
month end may be obtained by visiting www.arrowfunds.com or by calling 1-877-277-6933.
|
The
Funds per share net asset value or NAV is the value of one share of the Fund as calculated in accordance
with the standard formula for valuing shares. The NAV return is based on the NAV of the Fund and the market return is based on
the market price per share of the Fund. The price used to calculate market return (Market Price) is determined by
using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of the Fund are
listed for trading, as of the time that the Funds NAV is calculated. Market and NAV returns assume that dividends and capital
gain distributions have been reinvested in the Fund at Market Price and NAV, respectively. Information detailing the number of
days the Market Price of the Fund was greater than the Funds NAV and the number of days it was less than the Funds
NAV can be obtained at www.arrowfunds.com. The Funds total annual operating expenses, before fee waivers and/or expense
reimbursements are 0.50% per the June 1, 2019 prospectus. After fee waivers and/or expense reimbursements, the Funds total annual
expenses are 0.42% per the June 1, 2019 prospectus. The Advisor has put in place a fee waiver. The Funds total return would
|
**
|
As
of the close of business on the day of commencement of trading on March 31, 2017.
|
The
FTSE Treasury Bill 6 Month USD Index is a market value-weighted index of public obligations of the U.S. Treasury with maturities
of six months. The Index reflects no deduction for fees, expenses or taxes.
Comparison
of the Change in Value of a $10,000 Investment
The
Funds Holdings by Asset Class are as follows:
Asset Class
|
|
% of Net Assets
|
|
Corporate Bonds
|
|
|
76.9
|
%
|
U.S. Treasury Bills
|
|
|
19.7
|
%
|
U.S. Treasury Notes
|
|
|
5.0
|
%
|
Municipal Bond
|
|
|
0.8
|
%
|
Liabilities in Excess of Other Assets
|
|
|
(2.4
|
)%
|
|
|
|
100.0
|
%
|
Please
refer to the Portfolio of Investments in this Annual Report for a detailed listing of the Funds holdings.
Arrow
Reserve Capital Management ETF
|
PORTFOLIO
OF INVESTMENTS
|
January
31, 2020
|
Principal Amount ($)
|
|
|
|
|
Coupon Rate (%)
|
|
Maturity
|
|
Value
|
|
|
|
|
|
CORPORATE BONDS - 76.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
AEROSPACE & DEFENSE - 3.3%
|
|
|
|
|
|
|
|
|
|
1,514,000
|
|
|
General Dynamics Corp., 3M Libor + 0.29% #
|
|
2.191
|
|
5/11/2020
|
|
$
|
1,515,418
|
|
|
303,000
|
|
|
Lockheed Martin Corp.
|
|
2.500
|
|
11/23/2020
|
|
|
304,835
|
|
|
|
|
|
|
|
|
|
|
|
|
1,820,253
|
|
|
|
|
|
AUTOMOBILES MANUFACTURING - 7.2%
|
|
|
|
|
|
|
|
|
|
751,000
|
|
|
American Honda Finance Corp., 3M Libor + 0.27% #
|
|
2.089
|
|
7/20/2020
|
|
|
751,730
|
|
|
600,000
|
|
|
Ford Motor Credit Co. LLC, 3M Libor + 0.79% #
|
|
2.677
|
|
6/12/2020
|
|
|
600,540
|
|
|
1,213,000
|
|
|
General Motors Co., Inc., 3M Libor + 0.80% #
|
|
2.693
|
|
8/7/2020
|
|
|
1,215,443
|
|
|
1,486,000
|
|
|
Toyota Motor Credit Corp., 3M Libor + 0.17% #
|
|
2.068
|
|
9/18/2020
|
|
|
1,487,327
|
|
|
|
|
|
|
|
|
|
|
|
|
4,055,040
|
|
|
|
|
|
BANKS - 4.6%
|
|
|
|
|
|
|
|
|
|
433,000
|
|
|
Citibank NA, 3M Libor + 0.32% #
|
|
2.229
|
|
5/1/2020
|
|
|
433,190
|
|
|
250,000
|
|
|
Citibank NA, 3M Libor + 0.57% #
|
|
2.376
|
|
7/23/2021
|
|
|
251,638
|
|
|
1,045,000
|
|
|
PNC Bank NA, 3M Libor + 0.36% #
|
|
2.263
|
|
5/19/2020
|
|
|
1,046,052
|
|
|
13,000
|
|
|
Wells Fargo Bank NA, 3M Libor + 0.88% #
|
|
2.682
|
|
7/22/2020
|
|
|
13,054
|
|
|
844,000
|
|
|
Wells Fargo Bank NA, 3M Libor + 1.34% #
|
|
3.240
|
|
3/4/2021
|
|
|
855,287
|
|
|
|
|
|
|
|
|
|
|
|
|
2,599,221
|
|
|
|
|
|
BIOTECHNOLOGY - 1.2%
|
|
|
|
|
|
|
|
|
|
687,000
|
|
|
Amgen, Inc. 3M Libor + 0.45% #
|
|
2.351
|
|
5/11/2020
|
|
|
687,739
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CABLE & SATELLITE - 2.1%
|
|
|
|
|
|
|
|
|
|
1,190,000
|
|
|
Comcast Corp. 3M Libor + 0.33% #
|
|
2.239
|
|
10/1/2020
|
|
|
1,192,477
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMUNICATIONS EQUIPMENT - 3.1%
|
|
|
|
|
|
|
|
|
|
642,000
|
|
|
Apple, Inc., 3M Libor + 0.25% #
|
|
2.151
|
|
2/7/2020
|
|
|
642,022
|
|
|
835,000
|
|
|
Apple, Inc., 3M Libor + 0.20% #
|
|
2.094
|
|
2/7/2020
|
|
|
835,035
|
|
|
268,000
|
|
|
Apple, Inc., 3M Libor + 0.07% #
|
|
1.971
|
|
5/11/2020
|
|
|
268,063
|
|
|
|
|
|
|
|
|
|
|
|
|
1,745,120
|
|
|
|
|
|
CONSUMER FINANCE - 7.5%
|
|
|
|
|
|
|
|
|
|
95,000
|
|
|
American Express Credit Corp., 3M Libor + 0.43% #
|
|
2.336
|
|
3/3/2020
|
|
|
95,000
|
|
|
72,000
|
|
|
American Express Credit Corp., 3M Libor + 0.73% #
|
|
2.647
|
|
5/26/2020
|
|
|
72,123
|
|
|
1,134,000
|
|
|
American Express Co., 3M Libor + 0.53% #
|
|
2.429
|
|
5/17/2021
|
|
|
1,139,061
|
|
|
1,111,000
|
|
|
Capital One Financial Corp., 3M Libor + 0.76% #
|
|
2.661
|
|
5/12/2020
|
|
|
1,112,506
|
|
|
367,000
|
|
|
Capital One Financial Corp., 3M Libor + 0.45% #
|
|
2.220
|
|
10/30/2020
|
|
|
367,875
|
|
|
1,407,000
|
|
|
Synchrony Financial, 3M Libor + 1.23% #
|
|
3.132
|
|
2/3/2020
|
|
|
1,407,000
|
|
|
|
|
|
|
|
|
|
|
|
|
4,193,565
|
|
|
|
|
|
CONSUMER PRODUCTS - 0.9%
|
|
|
|
|
|
|
|
|
|
482,000
|
|
|
Estee Lauder Co., Inc.
|
|
1.800
|
|
2/7/2020
|
|
|
481,993
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIVERSIFIED BANKS - 4.6%
|
|
|
|
|
|
|
|
|
|
534,000
|
|
|
Bank of America Corp.
|
|
5.625
|
|
7/1/2020
|
|
|
542,421
|
|
|
1,176,000
|
|
|
JPMorgan Chase & Co., 3M Libor + 1.21% #
|
|
2.980
|
|
10/29/2020
|
|
|
1,184,560
|
|
|
843,000
|
|
|
Royal Bank of Canada, 3M Libor + 0.39% #
|
|
2.159
|
|
4/30/2021
|
|
|
846,369
|
|
|
|
|
|
|
|
|
|
|
|
|
2,573,350
|
|
|
|
|
|
ENTERTAINMENT CONTENT - 2.2%
|
|
|
|
|
|
|
|
|
|
1,000,000
|
|
|
The Walt Disney Co., 3M Libor + 0.13% #
|
|
2.030
|
|
3/4/2020
|
|
|
1,000,330
|
|
|
244,000
|
|
|
The Walt Disney Co., 3M Libor + 0.19% #
|
|
2.081
|
|
6/5/2020
|
|
|
244,231
|
|
|
|
|
|
|
|
|
|
|
|
|
1,244,561
|
|
|
|
|
|
FINANCIAL SERVICES - 3.4%
|
|
|
|
|
|
|
|
|
|
1,170,000
|
|
|
Goldman Sachs Group, Inc. 3M Libor + 1.20% #
|
|
3.094
|
|
9/15/2020
|
|
|
1,176,931
|
|
|
255,000
|
|
|
Morgan Stanley, 3M Libor + 0.98% #
|
|
2.874
|
|
6/16/2020
|
|
|
255,896
|
|
|
222,000
|
|
|
Morgan Stanley
|
|
2.800
|
|
6/16/2020
|
|
|
222,824
|
|
|
243,000
|
|
|
Morgan Stanley, 3M Libor + 1.40% #
|
|
3.219
|
|
4/21/2021
|
|
|
246,764
|
|
|
|
|
|
|
|
|
|
|
|
|
1,902,415
|
|
See
accompanying notes to financial statements.
Arrow
Reserve Capital Management ETF
|
PORTFOLIO
OF INVESTMENTS (Continued)
|
January
31, 2020
|
Principal Amount ($)
|
|
|
|
|
Coupon Rate (%)
|
|
Maturity
|
|
Value
|
|
|
|
|
|
FOOD & BEVERAGE - 2.8%
|
|
|
|
|
|
|
|
|
|
1,270,000
|
|
|
Campbell Soup Co., 3M Libor + 0.50% #
|
|
2.394
|
|
3/16/2020
|
|
$
|
1,270,324
|
|
|
297,000
|
|
|
Coca-Cola Co.
|
|
1.875
|
|
10/27/2020
|
|
|
297,540
|
|
|
|
|
|
|
|
|
|
|
|
|
1,567,864
|
|
|
|
|
|
GOVERNMENT REGIONAL - 2.2%
|
|
|
|
|
|
|
|
|
|
1,204,000
|
|
|
Province of Ontario Canada
|
|
1.875
|
|
5/21/2020
|
|
|
1,204,575
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HOMEBUILDERS - 0.4%
|
|
|
|
|
|
|
|
|
|
242,000
|
|
|
DR Horton, Inc.
|
|
2.550
|
|
12/1/2020
|
|
|
243,436
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MACHINERY MANUFACTURING - 4.6%
|
|
|
|
|
|
|
|
|
|
1,123,000
|
|
|
Caterpillar Financial Services Corp., 3M Libor + 0.18% #
|
|
2.090
|
|
5/15/2020
|
|
|
1,123,660
|
|
|
874,000
|
|
|
Caterpillar Financial Services Corp., 3M Libor + 0.25% #
|
|
2.167
|
|
8/26/2020
|
|
|
875,238
|
|
|
550,000
|
|
|
John Deere Capital Corp., 3M Libor + 0.30% #
|
|
2.187
|
|
3/13/2020
|
|
|
550,265
|
|
|
|
|
|
|
|
|
|
|
|
|
2,549,163
|
|
|
|
|
|
MANAGED CARE - 0.8%
|
|
|
|
|
|
|
|
|
|
167,000
|
|
|
Anthem, Inc.
|
|
4.350
|
|
8/15/2020
|
|
|
169,202
|
|
|
267,000
|
|
|
UnitedHealth Group, Inc. 3M Libor +0.07% #
|
|
1.901
|
|
10/15/2020
|
|
|
267,074
|
|
|
|
|
|
|
|
|
|
|
|
|
436,276
|
|
|
|
|
|
MEDICAL EQUIPMENT & DEVICES MANUFACTURING - 3.0%
|
|
|
|
|
|
|
|
|
|
1,699,000
|
|
|
Medtronic, Inc., 3M Libor + 0.80% #
|
|
2.694
|
|
3/15/2020
|
|
|
1,700,761
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PHARMACEUTICALS - 1.4%
|
|
|
|
|
|
|
|
|
|
799,000
|
|
|
Bristol-Myers Squibb Co., 3M Libor + 0.2% # 144A
|
|
2.104
|
|
11/16/2020
|
|
|
800,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROPERTY & CASUALTY INSURANCE - 2.9%
|
|
|
|
|
|
|
|
|
|
1,309,000
|
|
|
Allstate Corp., 3M Libor + 0.43% #
|
|
2.391
|
|
3/29/2021
|
|
|
1,313,285
|
|
|
275,000
|
|
|
Travelers Cos, Inc.
|
|
3.900
|
|
11/1/2020
|
|
|
279,625
|
|
|
|
|
|
|
|
|
|
|
|
|
1,592,910
|
|
|
|
|
|
RETAIL - CONSUMER DISCRETIONARY - 2.9%
|
|
|
|
|
|
|
|
|
|
334,000
|
|
|
Amazon, Inc.
|
|
1.900
|
|
8/21/2020
|
|
|
334,494
|
|
|
1,258,000
|
|
|
The Home Depot, Inc., 3M Libor + 0.15% #
|
|
2.041
|
|
6/5/2020
|
|
|
1,258,812
|
|
|
|
|
|
|
|
|
|
|
|
|
1,593,306
|
|
|
|
|
|
SEMICONDUCTORS - 1.1%
|
|
|
|
|
|
|
|
|
|
625,000
|
|
|
Intel Corp., 3M Libor + 0.08% #
|
|
1.981
|
|
5/11/2020
|
|
|
625,141
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOFTWARE & SERVICES - 0.1%
|
|
|
|
|
|
|
|
|
|
71,000
|
|
|
Microsoft Corp.
|
|
1.850
|
|
2/6/2020
|
|
|
70,999
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRANSPORTATION & LOGISTICS - 2.3%
|
|
|
|
|
|
|
|
|
|
1,304,000
|
|
|
Ryder System, Inc.
|
|
2.650
|
|
3/2/2020
|
|
|
1,304,148
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRAVEL & LODGING - 3.1%
|
|
|
|
|
|
|
|
|
|
757,000
|
|
|
Marriott International, Inc., 3M Libor + 0.60% #
|
|
2.507
|
|
12/1/2020
|
|
|
759,182
|
|
|
488,000
|
|
|
Marriott International, Inc., 3M Libor + 0.65% #
|
|
2.535
|
|
3/8/2021
|
|
|
490,183
|
|
|
495,000
|
|
|
Royal Caribbean Cruises Ltd.
|
|
2.650
|
|
11/28/2020
|
|
|
497,622
|
|
|
|
|
|
|
|
|
|
|
|
|
1,746,987
|
|
|
|
|
|
UTILITIES - 5.3%
|
|
|
|
|
|
|
|
|
|
515,000
|
|
|
Duke Energy Florida LLC, 3M Libor + 0.25% #
|
|
2.167
|
|
11/26/2021
|
|
|
516,217
|
|
|
1,253,000
|
|
|
Pennsylvania Electric Co.
|
|
5.200
|
|
4/1/2020
|
|
|
1,259,500
|
|
|
1,014,000
|
|
|
Pinnacle West Capital Corp.
|
|
2.250
|
|
11/30/2020
|
|
|
1,017,664
|
|
|
186,000
|
|
|
WEC Energy Group Inc
|
|
2.450
|
|
6/15/2020
|
|
|
186,368
|
|
|
|
|
|
|
|
|
|
|
|
|
2,979,749
|
|
See
accompanying notes to financial statements.
Arrow
Reserve Capital Management ETF
|
PORTFOLIO
OF INVESTMENTS (Continued)
|
January
31, 2020
|
Principal Amount ($)
|
|
|
|
|
Coupon Rate (%)
|
|
Maturity
|
|
Value
|
|
|
|
|
|
WIRELESS TELECOMMUNICATIONS SERVICES - 3.9%
|
|
|
|
|
|
|
|
|
|
583,000
|
|
|
AT&T, Inc., 3M Libor + 0.93% #
|
|
2.891
|
|
6/30/2020
|
|
$
|
585,090
|
|
|
700,000
|
|
|
AT&T Inc
|
|
2.450
|
|
6/30/2020
|
|
|
700,958
|
|
|
872,000
|
|
|
Verizon Communications, Inc. , 3M Libor + 0.55% #
|
|
2.449
|
|
5/22/2020
|
|
|
873,286
|
|
|
|
|
|
|
|
|
|
|
|
|
2,159,334
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CORPORATE BONDS
(Cost $43,039,512)
|
|
|
|
|
|
|
43,070,465
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MUNICIPAL BONDS - 0.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE BONDS - 0.8%
|
|
|
|
|
|
|
|
|
|
150,000
|
|
|
City of Phoenix Civic Improvement Corp.
|
|
1.992
|
|
7/1/2020
|
|
|
150,176
|
|
|
145,000
|
|
|
City of San Antonio TX
|
|
6.038
|
|
8/1/2040
|
|
|
148,030
|
|
|
145,000
|
|
|
County of Sarasota FL
|
|
7.016
|
|
10/1/2040
|
|
|
150,026
|
|
|
|
|
|
TOTAL MUNICIPAL BONDS
(Cost $448,210)
|
|
|
|
|
|
|
448,232
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. TREASURY BILLS * - 19.7%
|
|
|
|
|
|
|
|
|
|
2,265,000
|
|
|
United States Treasury Bill
|
|
0.000
|
|
2/11/2020
|
|
|
2,264,033
|
|
|
1,500,000
|
|
|
United States Treasury Bill
|
|
0.000
|
|
2/18/2020
|
|
|
1,498,973
|
|
|
1,275,000
|
|
|
United States Treasury Bill
|
|
0.000
|
|
3/3/2020
|
|
|
1,273,364
|
|
|
3,275,000
|
|
|
United States Treasury Bill
|
|
0.000
|
|
3/10/2020
|
|
|
3,269,745
|
|
|
865,000
|
|
|
United States Treasury Bill
|
|
0.000
|
|
3/12/2020
|
|
|
863,604
|
|
|
525,000
|
|
|
United States Treasury Bill
|
|
0.000
|
|
6/11/2020
|
|
|
522,173
|
|
|
575,000
|
|
|
United States Treasury Bill
|
|
0.000
|
|
7/23/2020
|
|
|
570,927
|
|
|
780,000
|
|
|
United States Treasury Bill
|
|
0.000
|
|
7/30/2020
|
|
|
774,210
|
|
|
|
|
|
TOTAL U.S. TREASURY BILLS
(Cost $11,036,776)
|
|
|
|
|
|
|
11,037,029
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. TREASURY NOTES - 5.0%
|
|
|
|
|
|
|
|
|
|
800,000
|
|
|
United States Treasury Note 3M Libor + 0.04% #
|
|
1.579
|
|
7/31/2020
|
|
|
799,933
|
|
|
2,000,000
|
|
|
United States Treasury Note 3M Libor + 0.14% #
|
|
1.675
|
|
4/30/2021
|
|
|
2,001,091
|
|
|
|
|
|
TOTAL U.S. TREASURY NOTES
(Cost $2,797,530)
|
|
|
|
|
|
|
2,801,024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL INVESTMENTS - 102.4% (Cost - $57,322,028)
|
|
|
|
|
|
$
|
57,356,750
|
|
|
|
|
|
LIABILITIES IN EXCESS OF OTHER ASSETS - (2.4)%
|
|
|
|
|
|
|
(1,323,056
|
)
|
|
|
|
|
NET ASSETS - 100.0%
|
|
|
|
|
|
$
|
56,033,694
|
|
144A
- Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may not be resold subject to that rule, except
to qualified institutional buyers. At January 31, 2020 144A securities amounted to $800,082 or 1.4% of net assets.
|
#
|
Floating
Rate Bond - Rate represented is as of January 31, 2020.
|
3M
Libor - A 3-month average of the LIBOR index.
LLC
- Limited Liability Company
See
accompanying notes to financial statements.
Arrow
Reserve Capital Management ETF
|
STATEMENT
OF ASSETS AND LIABILITIES
|
January
31, 2020
|
ASSETS
|
|
|
|
|
Investment securities:
|
|
|
|
|
At cost
|
|
$
|
57,322,028
|
|
At value
|
|
$
|
57,356,750
|
|
Cash
|
|
|
27,693
|
|
Interest receivable
|
|
|
207,412
|
|
Prepaid expenses and other assets
|
|
|
3,283
|
|
TOTAL ASSETS
|
|
|
57,595,138
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
Payable for investments purchased
|
|
|
1,419,899
|
|
Investment advisory fees payable
|
|
|
8,290
|
|
Distributions payable
|
|
|
73,864
|
|
Payable to related parties
|
|
|
18,142
|
|
Accrued expenses and other liabilities
|
|
|
41,249
|
|
TOTAL LIABILITIES
|
|
|
1,561,444
|
|
NET ASSETS
|
|
$
|
56,033,694
|
|
|
|
|
|
|
Net Assets Consist Of:
|
|
|
|
|
Paid in capital
|
|
$
|
56,001,177
|
|
Accumulated earnings
|
|
|
32,517
|
|
NET ASSETS
|
|
$
|
56,033,694
|
|
|
|
|
|
|
Net Asset Value Per Share:
|
|
|
|
|
Net Assets
|
|
$
|
56,033,694
|
|
Shares of beneficial interest outstanding ($0 par value, unlimited shares authorized)
|
|
|
560,000
|
|
Net asset value (Net Assets ÷ Shares Outstanding)
|
|
$
|
100.06
|
|
See
accompanying notes to financial statements.
Arrow
Reserve Capital Management ETF
|
STATEMENT
OF OPERATIONS
|
For
the year ended January 31, 2020
|
INVESTMENT INCOME
|
|
|
|
|
Interest
|
|
$
|
1,489,183
|
|
TOTAL INVESTMENT INCOME
|
|
|
1,489,183
|
|
|
|
|
|
|
EXPENSES
|
|
|
|
|
Investment advisory fees
|
|
|
173,155
|
|
Administrative services fees
|
|
|
46,498
|
|
Legal fees
|
|
|
28,741
|
|
Audit fees
|
|
|
16,494
|
|
Custodian fees
|
|
|
13,466
|
|
Transfer agent fees
|
|
|
10,212
|
|
Printing and postage expenses
|
|
|
7,200
|
|
Trustees fees and expenses
|
|
|
7,169
|
|
Professional fees
|
|
|
4,479
|
|
Insurance expense
|
|
|
2,452
|
|
Other expenses
|
|
|
4,396
|
|
TOTAL EXPENSES
|
|
|
314,262
|
|
|
|
|
|
|
Less: Fees waived by the Advisor
|
|
|
(71,845
|
)
|
NET EXPENSES
|
|
|
242,417
|
|
|
|
|
|
|
NET INVESTMENT INCOME
|
|
|
1,246,766
|
|
|
|
|
|
|
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
|
|
|
|
|
Net realized gain on investments
|
|
|
3,664
|
|
Net change in unrealized appreciation on investments
|
|
|
96,293
|
|
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
|
|
|
99,957
|
|
|
|
|
|
|
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
|
|
$
|
1,346,723
|
|
See
accompanying notes to financial statements.
Arrow
Reserve Capital Management ETF
|
STATEMENTS
OF CHANGES IN NET ASSETS
|
|
|
For Year Ended
|
|
|
For Year Ended
|
|
|
|
January 31, 2020
|
|
|
January 31, 2019
|
|
FROM OPERATIONS
|
|
|
|
|
|
|
|
|
Net investment income
|
|
$
|
1,246,766
|
|
|
$
|
1,481,860
|
|
Net realized gain (loss) on investments
|
|
|
3,664
|
|
|
|
(5,724
|
)
|
Net change in unrealized appreciation (depreciation) on investments
|
|
|
96,293
|
|
|
|
(107,619
|
)
|
Net increase in net assets resulting from operations
|
|
|
1,346,723
|
|
|
|
1,368,517
|
|
|
|
|
|
|
|
|
|
|
DISTRIBUTIONS TO SHAREHOLDERS
|
|
|
|
|
|
|
|
|
From return of capital
|
|
|
(19,857
|
)
|
|
|
—
|
|
Total other distributions paid
|
|
|
(1,381,755
|
)
|
|
|
(1,412,932
|
)
|
Net decrease in net assets resulting from distributions to shareholders
|
|
|
(1,401,612
|
)
|
|
|
(1,412,932
|
)
|
|
|
|
|
|
|
|
|
|
FROM SHARES OF BENEFICIAL INTEREST
|
|
|
|
|
|
|
|
|
Proceeds from shares sold
|
|
|
5,006,081
|
|
|
|
—
|
|
Cost of shares redeemed
|
|
|
(5,012,646
|
)
|
|
|
(20,005,748
|
)
|
Net decrease in net assets resulting from shares of beneficial interest
|
|
|
(6,565
|
)
|
|
|
(20,005,748
|
)
|
|
|
|
|
|
|
|
|
|
TOTAL DECREASE IN NET ASSETS
|
|
|
(61,454
|
)
|
|
|
(20,050,163
|
)
|
|
|
|
|
|
|
|
|
|
NET ASSETS
|
|
|
|
|
|
|
|
|
Beginning of Year
|
|
|
56,095,148
|
|
|
|
76,145,311
|
|
End of Year
|
|
$
|
56,033,694
|
|
|
$
|
56,095,148
|
|
|
|
|
|
|
|
|
|
|
SHARE ACTIVITY
|
|
|
|
|
|
|
|
|
Shares Sold
|
|
|
50,000
|
|
|
|
—
|
|
Shares Redeemed
|
|
|
(50,000
|
)
|
|
|
(200,000
|
)
|
Net decrease in shares of beneficial interest outstanding
|
|
|
—
|
|
|
|
(200,000
|
)
|
See
accompanying notes to financial statements.
Arrow
Reserve Capital Management ETF
|
FINANCIAL
HIGHLIGHTS
|
Per
Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout Each Period
|
|
For the Year Ended
|
|
|
For the Year Ended
|
|
|
For the Period Ended
|
|
|
|
January 31, 2020
|
|
|
January 31, 2019
|
|
|
January 31, 2018 (1)(8)
|
|
Net asset value, beginning of period
|
|
$
|
100.17
|
|
|
$
|
100.19
|
|
|
$
|
100.00
|
|
Activity from investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (2)
|
|
|
2.16
|
|
|
|
2.00
|
|
|
|
0.80
|
|
Net realized and unrealized gain (loss) on investments
|
|
|
0.18
|
|
|
|
(0.12
|
)
|
|
|
0.09
|
|
Total from investment operations
|
|
|
2.34
|
|
|
|
1.88
|
|
|
|
0.89
|
|
Less distributions from:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(2.41
|
)
|
|
|
(1.90
|
)
|
|
|
(0.69
|
)
|
Net realized gains
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.01
|
)
|
Return of capital
|
|
|
(0.04
|
)
|
|
|
—
|
|
|
|
—
|
|
Total distributions
|
|
|
(2.45
|
)
|
|
|
(1.90
|
)
|
|
|
(0.70
|
)
|
Net asset value, end of period
|
|
$
|
100.06
|
|
|
$
|
100.17
|
|
|
$
|
100.19
|
|
Total return (6)
|
|
|
2.37
|
%
|
|
|
1.90
|
%
|
|
|
0.89
|
% (4)
|
Net assets, at end of period (000s)
|
|
$
|
56,034
|
|
|
$
|
56,095
|
|
|
$
|
76,145
|
|
Ratio of gross expenses to average net assets (7)
|
|
|
0.54
|
%
|
|
|
0.50
|
%
|
|
|
0.52
|
% (3)
|
Ratio of net expenses to average net assets
|
|
|
0.42
|
%
|
|
|
0.42
|
%
|
|
|
0.42
|
% (3)
|
Ratio of net investment income to average net assets
|
|
|
2.16
|
%
|
|
|
1.99
|
%
|
|
|
0.94
|
% (3)
|
Portfolio Turnover Rate (5)
|
|
|
24
|
%
|
|
|
33
|
%
|
|
|
66
|
% (4)
|
|
(1)
|
The
Arrow Reserve Capital Management ETF commenced operations on March 30, 2017.
|
|
(2)
|
Per
share amounts calculated using the average shares method, which more appropriately presents the per share data for the period.
|
|
(3)
|
Annualized
for periods less than one year.
|
|
(4)
|
Not
annualized for periods less than one year.
|
|
(5)
|
Portfolio
turnover rate excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation
Units.
|
|
(6)
|
Total
return is calculated assuming a purchase of shares at net asset value on the first day and a sale at net asset value on the last
day of the period. Distributions are assumed, for the purpose of this calculation, to be reinvested at the ex-dividend date net
asset value per share on their respective payment dates. Had Arrow Investment Advisors, LLC not waived fees or reimbursed a portion
of the expenses, total returns would have been lower.
|
|
(7)
|
Represents
the ratio of expenses to average net assets absent fee waivers and /or expense reimbursements by Arrow Investment Advisors, LLC.
|
|
(8)
|
Effective
November 1, 2017, the Fund had a 1:5 reverse stock split. Per share amounts for the period have been adjusted to give effect to
the 1:5 stock split.
|
See
accompanying notes to financial statements.
Arrow
Reserve Capital Management ETF
|
NOTES
TO FINANCIAL STATEMENTS
|
January
31, 2020
|
|
The
Arrow Reserve Capital Management ETF (the Fund) is a diversified series of Arrow Investments Trust (Trust),
a statutory trust organized under the laws of the State of Delaware on August 2, 2011, and is registered under the Investment
Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company. The Funds investment
objective seeks to preserve capital while maximizing current income. The investment objective is non-fundamental. The Fund commenced
operations on March 30, 2017.
|
2.
|
SIGNIFICANT
ACCOUNTING POLICIES
|
The
following is a summary of significant accounting policies followed by the Fund in preparation of its financial statements. These
policies are in conformity with accounting principles generally accepted in the United States of America (GAAP).
The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of income and expenses for the period. Actual results could differ from those estimates. The Fund is an investment
company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards
Board (FASB) Accounting Standards Codification Topic 946 Financial Services-Investment Companies including
FASB Accounting Standards Update (ASU) 2013-08.
Securities
valuation – Securities listed on an exchange are valued at the last reported sale price at the close of the regular
trading session of the exchange on the business day the value is being determined, or in the case of securities listed on NASDAQ
at the NASDAQ Official Closing Price (NOCP). In the absence of a sale, such securities shall be valued at the last
bid price on the day of valuation. Debt securities (other than short-term obligations) are valued each day by an independent pricing
service approved by the Trusts Board of Trustees (the Board) using methods which include current market quotations
from a major market maker in the securities and based on methods which include the consideration of yields or prices of securities
of comparable quality, coupon, maturity and type. Investments valued in currencies other than the U.S. dollar are converted to
U.S. dollars using exchange rates obtained from pricing services. If market quotations are not readily available or if Arrow Investment
Advisors, LLC (the Advisor) believes the market quotations are not reflective of market value, securities will be
valued at their fair value as determined in good faith by the Advisor and in accordance with the Trusts Portfolio Securities
Valuation Procedures (the Procedures), subject to review by the Board. The Board will review the fair value method
in use for securities requiring a fair market value determination and supporting documentation from the Advisor at least quarterly
for consistency with the Procedures. The Procedures consider, among others, the following factors to determine a securitys
fair value: the nature and pricing history (if any) of the security; whether any dealer quotations for the security are available;
and possible valuation methodologies that could be used to determine the fair value of the security. Fair value may also be used
by the Board if extraordinary events occur after the close of the relevant world market but prior to the NYSE close. Short-term
debt obligations having 60 days or less remaining until maturity, at time of purchase, may be valued at amortized cost.
Arrow
Reserve Capital Management ETF
|
NOTES
TO FINANCIAL STATEMENTS (Continued)
|
January
31, 2020
|
|
The
Fund utilizes various methods to measure the fair value of all of its investments on a recurring basis. GAAP establishes a hierarchy
that prioritizes inputs to valuation methods. The three levels of input are:
Level
1 – Unadjusted quoted prices in active markets for identical assets and liabilities that the Fund has the ability to access.
Level
2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either
directly or indirectly. These inputs may include quoted prices for the identical instrument in an inactive market, prices for
similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Level
3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing
the Funds own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would
be based on the best information available.
The
availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including,
for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets,
and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less
observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment
exercised in determining fair value is greatest for instruments categorized in Level 3.
The
inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes,
the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the
lowest level input that is significant to the fair value measurement in its entirety.
Arrow
Reserve Capital Management ETF
|
NOTES
TO FINANCIAL STATEMENTS (Continued)
|
January
31, 2020
|
The
inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those
securities. The following tables summarize the inputs used as of the year ended January 31, 2020 for the Funds assets measured
at fair value:
Assets *
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
Corporate Bonds
|
|
$
|
—
|
|
|
$
|
43,070,465
|
|
|
$
|
—
|
|
|
$
|
43,070,465
|
|
Municipal Bonds
|
|
|
—
|
|
|
|
448,232
|
|
|
|
—
|
|
|
|
448,232
|
|
U.S. Treasury Bills
|
|
|
—
|
|
|
|
11,037,029
|
|
|
|
—
|
|
|
|
11,037,029
|
|
U.S. Treasury Notes
|
|
|
—
|
|
|
|
2,801,024
|
|
|
|
—
|
|
|
|
2,801,024
|
|
Total
|
|
$
|
—
|
|
|
$
|
57,356,750
|
|
|
$
|
—
|
|
|
$
|
57,356,750
|
|
The
Fund did not hold any Level 3 securities during the period.
|
*
|
See
Portfolio of Investments for classification.
|
Security
transactions and related income – Security transactions are accounted for on the trade date. Interest income is recognized
on an accrual basis. Discounts are accreted and premiums are amortized on securities purchased over the lives of the respective
securities. Dividend income is recorded on the ex-dividend date. Realized gains or losses from sales of securities are determined
by comparing the identified cost of the security lot sold with the net sales proceeds.
Dividends
and distributions to shareholders – Dividends from net investment income, if any, are declared and paid monthly. Distributable
net realized capital gains, if any, are declared and distributed annually. Dividends from net investment income and distributions
from net realized gains are determined in accordance with federal income tax regulations, which may differ from GAAP. These book/tax
differences are considered either temporary (e.g., deferred losses) or permanent in nature. To the extent these differences are
permanent in nature, such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment;
temporary differences do not require reclassification. Dividends and distributions to shareholders are recorded on the ex-dividend
date.
Federal
Income Taxes – The Fund intends to continue to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its taxable income to its shareholders. Therefore, no provision for
federal income tax is required. The Fund recognizes the tax benefits of uncertain tax positions only where the position is more
likely than not to be sustained assuming examination by tax authorities. Management has analyzed the Funds tax positions
and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken
on returns filed for open tax years ended January 31, 2018 to January 31, 2019, or expected to be taken in the Funds January
31, 2020 year-end tax return. The Fund identifies its major tax jurisdictions as U.S. federal and foreign jurisdictions where
the Fund makes significant investments. The Fund is not aware of any tax positions for which it is reasonably possible that the
total amounts of unrecognized tax benefits will change materially in the next twelve months.
Expenses
– Expenses of the Trust that are directly identifiable to a specific fund are charged to that fund. Expenses, which
are not readily identifiable to a specific fund, are allocated in such a manner as deemed equitable (as determined by the Board),
taking into consideration the nature and type of expenses and the relative sizes of the funds in the Trust.
Arrow
Reserve Capital Management ETF
|
NOTES
TO FINANCIAL STATEMENTS (Continued)
|
January
31, 2020
|
|
Indemnification
– The Trust indemnifies its officers and Trustees for certain liabilities that may arise from the performance of their
duties to the Trust. Additionally, in the normal course of business, the Fund enters into contracts that contain a variety of
representations and warranties and which provide general indemnities. The Funds maximum exposure under these arrangements
is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, based on
experience, the risk of loss due to these warranties and indemnities appears to be remote.
Time
Deposits – Time deposits are issued by a depository institution in exchange for the deposit of funds. The issuer agrees
to pay the amount deposited plus interest to the depositor on the date specified with respect to the deposit. Time deposits do
not trade in the secondary market prior to maturity. However, some time deposits may be redeemable prior to maturity and may be
subject to withdrawal penalties.
|
3.
|
INVESTMENT
TRANSACTIONS
|
For
the year ended January 31, 2020, cost of purchases and proceeds from sales of portfolio securities (excluding in-kind transactions
and short-term investments), amounted to $10,351,498 and $26,993,166.
For
the year ended January 31, 2020, cost of purchases and proceeds from sales of portfolio securities for in-kind transactions, amounted
to $0 and $0 respectively.
|
4.
|
INVESTMENT
ADVISORY AGREEMENT AND TRANSACTIONS WITH RELATED PARTIES
|
The
business activities of the Fund are overseen by the Board, which is responsible for the overall management of the Fund. The Advisor
serves as the Funds investment advisor pursuant to an investment advisory agreement with the Trust on behalf of the Fund
(the Advisory Agreement). The Advisor has engaged Halyard Asset Management LLC as the primary sub-advisor (the Sub-Advisor)
to the Fund. The Trust has entered into a Global Custody Agreement with Brown Brothers Harriman & Co. to serve as Custodian
and to act as transfer and shareholder services agent.
The
Trust has also entered into an ETF Distribution Agreement (the Distribution Agreement) with Northern Lights Distributors,
LLC (NLD or the Distributor) to serve as the distributor for the Fund. Archer Distributors, LLC (Archer),
an affiliate of the Advisor is also a party to the Distribution Agreement and provides marketing services to the Fund, including
responsibility for all the Funds marketing and advertising materials.
Pursuant
to the Advisory Agreement, the Advisor, under the oversight of the Board, directs the daily operations of the Fund and supervises
the performance of administrative and professional services provided by others. As compensation for its services and the related
expenses borne by the Advisor, the Fund pays the Advisor a fee, computed and accrued daily and paid monthly, at an annual rate
of 0.30% of the Funds average daily net assets. The Sub-Advisor is paid by the Advisor, not the Fund. For
Arrow
Reserve Capital Management ETF
|
NOTES
TO FINANCIAL STATEMENTS (Continued)
|
January
31, 2020
|
|
the
year ended January 31, 2020, the Fund incurred $173,155 in advisory fees.
Pursuant
to a written contract (the Waiver Agreement), the Advisor has agreed, at least until November 30, 2020 to waive
a portion of its advisory fee and has agreed to reimburse the Fund for other expenses to the extent necessary so that total expenses
incurred (exclusive of any front-end or contingent deferred sales loads, taxes, leverage interest, brokerage commissions, expenses
incurred in connection with any merger or reorganization, dividend expense on securities sold short, underlying fund fees and
expenses, foreign custody transaction costs and foreign account set up fees and extraordinary expenses such as litigation expenses)
will not exceed 0.42%, herein referred to as the Expense Limitation.
If
the Advisor waives any fee or reimburses any expenses pursuant to the Waiver Agreement, and the Funds operating expenses
are subsequently lower than its Expense Limitation, the Advisor, on a rolling three-year period (within three years after the
fees have been waived or reimbursed), shall be entitled to reimbursement by the Fund provided that such reimbursement does not
cause the Funds operating expense to exceed the Expense Limitation. If the Funds operating expenses subsequently exceed the
Expense Limitation, the reimbursements for the Fund shall be suspended. For the year ended January 31, 2020, the Advisor waived
fees in the amount of $71,845 pursuant to the Waiver Agreement. The following amounts are subject to recapture by the Advisor
through the following date:
1/31/2021
|
|
1/31/2022
|
|
1/31/2023
|
$ 34,166
|
|
$ 56,766
|
|
$ 71,845
|
The
Advisor may seek reimbursement only for expenses that were waived or paid after the effective date of the Waiver Agreement (or
any similar agreement). The Board may terminate this expense reimbursement arrangement at any time.
The
Trust, with respect to the Fund, has adopted a distribution and service plan (Plan) pursuant to Rule 12b-1 under
the 1940 Act. Under the Plan, the Fund is authorized to pay distribution fees to the Distributor and other firms that provide
distribution and shareholder services (Service Providers). If a Service Provider provides these services, the Fund
may pay fees at an annual rate not to exceed 0.25% of average daily net assets, pursuant to Rule 12b-1 under the 1940 Act.
No
distribution or service fees are currently paid by the Fund and there are no current plans to impose these fees. In the event
Rule 12b-1 fees were charged, over time they would increase the cost of an investment in the Fund.
Gemini
Fund Services, LLC (GFS) – GFS, an affiliate of the Distributor, provides administration and fund
accounting services to the Trust. Pursuant to separate servicing agreements with GFS the Fund pays GFS customary fees for providing
administration and fund accounting services to the Fund. Certain officers of the Trust are also officers of GFS, and are not paid
any fees directly by the Trust for serving in such capacities.
Arrow
Reserve Capital Management ETF
|
NOTES
TO FINANCIAL STATEMENTS (Continued)
|
January
31, 2020
|
|
Blu
Giant, LLC (Blu Giant) – Blu Giant, an affiliate of GFS and the Distributor, provides
EDGAR conversion and filing services as well as print management services for the Fund on an ad-hoc basis. For the provision of
these services, Blu Giant receives customary fees from the Fund.
Effective
February 1, 2019, NorthStar Financial Services Group, LLC, the parent company of GFS and its affiliated companies including NLD
and Northern Lights Compliance Services, LLC (collectively, the Gemini Companies), sold its interest in the Gemini
Companies to a third party private equity firm that contemporaneously acquired Ultimus Fund Solutions, LLC (an independent mutual
fund administration firm) and its affiliates (collectively, the Ultimus Companies). As a result of these separate
transactions, the Gemini Companies and the Ultimus Companies are now indirectly owned through a common parent entity, The Ultimus
Group, LLC.
|
5.
|
CAPITAL
SHARE TRANSACTIONS
|
Shares
are not individually redeemable and may be redeemed by the Fund at NAV only in large blocks known as Creation Units.
Shares are created and redeemed by the Fund only in Creation Unit size aggregations of 50,000 shares. Only Authorized Participants
are permitted to purchase or redeem Creation Units from the Fund. An Authorized Participant is either (i) a broker-dealer or other
participant in the clearing process through the Continuous Net Settlement System of the National Securities Clearing Corporation
or (ii) a DTC participant and, in each case, must have executed a participant Agreement with the Distributor. Such transactions
are generally permitted on an in-kind basis, with a balancing cash component to equate the transaction to the NAV per share of
the Fund on the transaction date. Cash may be substituted equivalent to the value of certain securities generally when they are
not available in sufficient quantity for delivery, not eligible for trading by the Authorized Participant or as a result of other
market circumstances. In addition, the Fund may impose transaction fees on purchases and redemptions of Fund shares to cover the
custodial and other costs incurred by the Fund in effecting trades. A fixed fee payable to the Custodian may be imposed on each
creation and redemption transaction regardless of the number of Creation Units involved in the transaction (Fixed Fee).
Transactions in capital shares for the Fund are disclosed in the Statements of Changes in Net Assets.
The
Transaction Fees for the Fund are listed in the table below:
For
the year ended January 31, 2020, the Fund received $150 in fixed fees.
Arrow
Reserve Capital Management ETF
|
NOTES
TO FINANCIAL STATEMENTS (Continued)
|
January
31, 2020
|
|
|
6.
|
DISTRIBUTIONS
TO SHAREHOLDERS AND TAX COMPONENTS OF CAPITAL
|
The
tax character of Fund distributions paid for the periods ended January 31, 2020 and January 31, 2019 was as follows:
|
|
Fiscal Year Ended
|
|
|
Fiscal Year Ended
|
|
|
|
January 31, 2020
|
|
|
January 31, 2019
|
|
Ordinary Income
|
|
$
|
1,381,755
|
|
|
$
|
1,412,932
|
|
Long-Term Capital Gain
|
|
|
—
|
|
|
|
—
|
|
Return of Capital
|
|
|
19,857
|
|
|
|
—
|
|
|
|
$
|
1,401,612
|
|
|
$
|
1,412,932
|
|
|
|
|
|
|
|
|
|
|
As
of January 31, 2020, the components of accumulated earnings/(deficit) on a tax basis were as follows:
Undistributed
|
|
|
Undistributed
|
|
|
Post October Loss
|
|
|
Capital Loss
|
|
|
Other
|
|
|
Unrealized
|
|
|
Total
|
|
Ordinary
|
|
|
Long-Term
|
|
|
and
|
|
|
Carry
|
|
|
Book/Tax
|
|
|
Appreciation/
|
|
|
Accumulated
|
|
Income
|
|
|
Gains
|
|
|
Late Year Loss
|
|
|
Forwards
|
|
|
Differences
|
|
|
(Depreciation)
|
|
|
Earnings
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2,205
|
)
|
|
$
|
—
|
|
|
$
|
34,722
|
|
|
$
|
32,517
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At
January 31, 2020, the Fund had capital loss carry forwards for federal income tax purposes available to offset future capital
gains, utilized capital loss carryforwards and had capital loss carryforwards subject to expiration as follows:
|
|
|
Non-Expiring
|
|
|
Non-Expiring
|
|
|
|
|
|
|
|
Expiring
|
|
|
Short-Term
|
|
|
Long-Term
|
|
|
Total
|
|
|
CLCF Utilized
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,205
|
|
|
$
|
2,205
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7.
|
AGGREGATE
UNREALIZED APPRECIATION AND DEPRECIATION – TAX BASIS
|
|
|
|
Gross Unrealized
|
|
|
Gross Unrealized
|
|
|
Net Unrealized
|
|
Tax Cost
|
|
|
Appreciation
|
|
|
Depreciation
|
|
|
Appreciation/(Depreciation)
|
|
$
|
57,322,028
|
|
|
$
|
36,098
|
|
|
$
|
(1,376
|
)
|
|
$
|
34,722
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of the Fund creates
presumption of the control of the Fund, under section 2(a)(9) of the 1940 Act. As of January 31, 2020, Arrow Managed Futures
Strategy Fund held 85.2% of the voting securities of the Fund.
|
9.
|
RECENT
ACCOUNTING PRONOUNCEMENTS AND REPORTING UPDATES
|
In
March 2017, the FASB issued ASU No. 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization
on Purchased Callable Debt Securities. The amendments in the ASU shorten the amortization period for certain callable debt securities,
held at a premium, to be
Arrow
Reserve Capital Management ETF
|
NOTES
TO FINANCIAL STATEMENTS (Continued)
|
January
31, 2020
|
|
amortized
to the earliest call date. The ASU does not require an accounting change for securities held at a discount; which continues to
be amortized to maturity. The ASU is effective for fiscal years and interim periods within those fiscal years beginning after
December 15, 2018. These amendments have been adopted with these financial statements.
In
August 2018, the FASB issued Accounting Standards Update (ASU) No. 2018-13, which changes certain fair value measurement
disclosure requirements. The ASU, in addition to other modifications and additions, removes the requirement to disclose the amount
and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, and the policy for the timing of transfers
between levels. For investment companies, the amendments are effective for financial statements issued for fiscal years beginning
after December 15, 2019, and interim periods within those fiscal years. Early adoption is allowed. These amendments have been
adopted with these financial statements.
9.
SUBSEQUENT EVENTS
Subsequent
events after the date of the Statement of Assets and Liabilities have been evaluated through the date the financial statements
were issued.
Management
has determined that no events or transactions occurred requiring adjustment or disclosure in the financial statements, other than
the following:
The
Board declared the following distributions after January 31, 2020:
Distribution
Per Share
|
Ex
Date
|
Record
Date
|
Payable
Date
|
$0.1206
|
2/28/2020
|
3/2/2020
|
3/9/2020
|
REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To
the Board of Trustees of Arrow Investments Trust
and the Shareholders of Arrow Reserve Capital Management ETF
Opinion
on the Financial Statements
We
have audited the accompanying statement of assets and liabilities of Arrow Reserve Capital Management ETF, a series of shares
of beneficial interest in Arrow Investments Trust (the Fund), including the portfolio of investments, as
of January 31, 2020, and the related statement of operations for the year then ended, the statements of changes in net assets
for each of the years in the two-year period then ended, and the financial highlights for each of the years in the two-year period
then ended and for the period from March 30, 2017 (commencement of operations) through January 31, 2018, and the related notes
(collectively referred to as the financial statements). In our opinion, the financial statements present
fairly, in all material respects, the financial position of the Fund as of January 31, 2020, and the results of its operations
for the year then ended, the changes in its net assets for each of the years in the two-year period then ended and its financial
highlights for each of the years in the two-year period then ended and for the period from March 30, 2017 through January 31,
2018, in conformity with accounting principles generally accepted in the United States of America.
Basis
for Opinion
These
financial statements are the responsibility of the Funds management. Our responsibility is to express an opinion on the
Funds financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting
Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance
with the U.S. federal securities law and the applicable rules and regulations of the Securities and Exchange Commission and the
PCAOB.
We
conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits
to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error
or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.
As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the
purpose of expressing an opinion on the effectiveness of the Funds internal control over financial reporting. Accordingly,
we express no such opinion.
Our
audits included performing procedures to assess the risk of material misstatement of the financial statements, whether due to
error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence
regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as
of January 31, 2020 by correspondence with the custodian and brokers, or by other appropriate auditing procedures where replies
from brokers were not received. Our audits also included evaluating the accounting principles used and significant estimates made
by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide
a reasonable basis for our opinion.
BBD,
LLP
We
have served as the auditor of one or more of the Funds in the Arrow Investments Trust since 2012. We also served as the auditor
of one or more of the Funds in the Funds former trust from 2006 through 2012.
Philadelphia,
Pennsylvania
March 26, 2020
Arrow
Reserve Capital Management ETF
|
EXPENSE
EXAMPLES (Unaudited)
|
January
31, 2020
|
|
As
a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and
sales of Fund shares; (2) ongoing costs, including management fees and other Fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing
in other mutual funds.
The
example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from August
1, 2019 through January 31, 2020.
Actual
Expenses
The
Actual line in the table below provides information about actual account values and actual expenses. You may use
the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide
your account value by $ 1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the
number in the table under the heading entitled Expenses Paid During Period to estimate the expenses you paid on
your account during this period.
Hypothetical
Example for Comparison Purposes
The
Hypothetical line in the table below provides information about hypothetical account values and hypothetical expenses
based on the Funds actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the
Funds actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account
balances or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of other funds.
Please
note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional
costs, such as brokerage commissions paid on purchases and sales of Fund shares. Therefore, the table is useful in comparing ongoing
costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional
costs were included, your costs would have been higher.
|
|
Beginning
|
|
|
Ending
|
|
|
Expenses Paid
|
|
|
Expenses Paid
|
|
|
Account Value
|
|
|
Account Value
|
|
|
During Period*
|
|
|
During Period**
|
|
|
8/1/19
|
|
|
1/31/20
|
|
|
8/1/19 - 1/31/20
|
|
|
8/1/19 - 1/31/20
|
Actual
|
|
$
|
1,000.00
|
|
|
$
|
1,009.70
|
|
|
$
|
2.13
|
|
|
0.42%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hypothetical
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5% return before expenses)
|
|
$
|
1,000.00
|
|
|
$
|
1,023.09
|
|
|
$
|
2.14
|
|
|
0.42%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Actual
expense information for the Fund is for the period from August 1, 2019 to January 31, 2020. Actual expenses are equal to the Funds
annualized net expense ratio multiplied by 184/365 (to reflect the period from August 1, 2019 to January 31, 2020). Hypothetical
expense information for the Fund is presented on the basis of the full one-half year period to enable comparison to other funds.
It is based on assuming the same net expense ratio and average account value over the period, but it is multiplied by 184/365
(to reflect the full half-year period).
|
Arrow
Reserve Capital Management ETF
|
SUPPLEMENTAL
INFORMATION (Unaudited)
|
January
31, 2020
|
|
FACTORS
CONSIDERED BY THE INDEPENDENT TRUSTEES IN APPROVING THE INVESTMENT ADVISORY AGREEMENT
At
an in person meeting held September 19, 2019 (the Meeting), the Board of Trustees (the Board) including
the Trustees who are not interested persons, as such term is defined under Section 2(a)(19) of the Investment Company
Act of 1940, as amended (the Independent Trustees), considered the renewal of the investment advisory agreement
(the Advisory Agreement) between the Arrow Investments Trust (the Trust), and Arrow Investment Advisors,
LLC (the Adviser) with respect to the Arrow Reserve Capital Management ETF (Reserve Capital ETF or
the Fund).
The
Board, including the Independent Trustees, unanimously approved continuance of the Advisory Agreement based upon its review of
the written materials provided at the Meeting, the reports provided at each quarterly meeting of the Board and the Boards
discussions with key personnel of the Adviser. In their deliberations, the Trustees did not identify any particular information
that was all-important or controlling, and individual Trustees may have attributed different weights to the various factors. Below
is a summary of the Boards conclusions regarding various factors relevant to approval of continuance of the Advisory Agreement:
Nature,
Extent and Quality of Services. In considering the renewal of the Advisory Agreement, the Board considered the nature,
extent, and quality of services that the Adviser provided to the Fund, including the Advisers personnel and resources,
a description of the manner in which investment decisions are made and executed, and a review of the financial condition of Arrow.
The Board reviewed the services the Adviser provided, including the backgrounds of the personnel that provided the investment
management and related services. They also reviewed information provided regarding risk management and compliance and regulatory
matters. The Board also considered the Advisers management of service provider relationships and oversight of sub-advisers.
The
Board found that the Adviser had a strong culture of research and compliance at the firm and had demonstrated an ongoing commitment
to analyzing various investment strategies in an effort to enhance returns to shareholders. Further, the Board considered the
consistency of the Advisers team, which provided the Adviser with tremendous experience and intellectual capital. The Board
concluded that the Adviser had sufficient quality and depth of personnel, resources, investment methodologies and compliance policies
and procedures to perform its duties under the Advisory Agreement and that the nature, overall quality and extent of the management
services provided by the Adviser to the Fund was satisfactory.
Performance.
The Board reviewed the Funds total return compared to the total returns of a group of funds selected by the Adviser
that employed similar investment strategies as the Fund (peer group), benchmark index, and Morningstar category
average.
Reserve
Capital ETF: The Board reviewed the Funds average total return compared to the average total returns of its peer group,
Morningstar category average (Morningstar Ultrashort Bond) and benchmark index (Bank of America/Merrill Lynch U.S. 6 Month Treasury
Bill Index). The Board noted that the Fund has been sub-advised by Halyard Asset Management, LLC since inception. The Board noted
that the Fund outperformed its benchmark index over the year-to-date period and had returns approximately the same as its peer
group and benchmark over the one-year period. The Board considered
Arrow
Reserve Capital Management ETF
|
SUPPLEMENTAL
INFORMATION (Unaudited)(Continued)
|
January
31, 2020
|
|
that
the Adviser is optimistic that Halyard would achieve reasonable long-term performance. The Board concluded that the performance
of the Fund was satisfactory.
Advisory
Fee. The Board reviewed the Funds advisory fee and expense ratio, taking into account the Funds average
net assets, and reviewed information comparing the advisory fee and expense ratio to those of the Funds peer group and
Morningstar category average. The Board discussed their duties to evaluate whether the advisory fee was not unreasonable. The
Board noted that the Advisers fees are reasonably applied based on the nature of the Funds investment strategy.
The Board noted that alternative strategies may generally require enhanced oversight compared to more traditional
asset classes and that such additional cost may be evident in the level of the advisory fee. The Board discussed the level of
work involved in the Advisers oversight of the Fund and the Advisers ongoing quantitative and qualitative analysis
of the sub-adviser.
The
Board noted that the advisory fee with respect to the Reserve Capital ETF was in-line with the average of its peer group and the
Morningstar category, and the overall expense ratio was in a reasonable range.
In
light of the nature, quality and extent of services the Adviser provided, the Board concluded that the Funds advisory fee
was not unreasonable.
Economies
of Scale. The Board considered the extent to which economies of scale would be realized as the Fund grows and whether
fee levels reflect a reasonable sharing of economies of scale for the benefit of Fund investors. The Board noted the Fund had
not yet reached an asset level where the Adviser could realize meaningful economies of scale. The Board observed that economies
of scale would be considered in the future as Fund asset levels grow.
Profitability.
The Board also reviewed the profitability of the Adviser with respect to the Fund, noting the Adviser did not realize
a profit with respect to the Fund.
Fallout
Benefits. Because of its relationship with the Fund, the Adviser and its affiliates may receive certain benefits. The
Board reviewed materials provided by the Adviser as to any such benefits.
Conclusion.
Based on all of the information considered and the conclusions reached, the Board determined that the terms of the Advisory
Agreement were fair and reasonable, and that the continuation of the Advisory Agreement was in the best interests of the Fund.
Arrow
Reserve Capital Management ETF
|
SUPPLEMENTAL
INFORMATION (Unaudited)(Continued)
|
January
31, 2020
|
|
This
chart provides information about the Trustees and Officers who oversee the Fund. Officers elected by the Trustees manage the day-to-day
operations of the Fund and execute policies formulated by the Trustees. The address of each Trustee and Officer is 6100 Chevy
Chase Drive, Suite 100, Laurel, Maryland 20707, unless otherwise noted.
Non-Interested
Trustees
Name,
Address, and
Year of Birth
|
Position(s)/Term
of Office*
|
Principal
Occupation(s) During the
Past 5 Years
|
Number
of
Portfolios
in Fund
Complex
Overseen
by Trustee 1
|
Other
Directorships Held
by Trustee
|
Robert
S. Andrialis
Born in 1944
|
Trustee
since 2014
|
Independent
Consultant (2016 – present); Advisor, INDXX, LLC (2014 – 2016); President, Secured Growth Quantitative Research
(2011–2014).
|
10
|
Arrow ETF Trust
|
Paul
Montgomery
Born in 1953
|
Trustee
since 2011
|
Director
of Research, Scotia Partners, LLC (2012-present).
|
10
|
Arrow ETF Trust
|
Thomas
T. Sarkany
Born in 1946
|
Trustee
since 2014
|
Founder
and President, TTS Consultants, LLC (2010 – present).
|
10
|
Arrow ETF Trust, Northern Lights Fund Trust II, Northern Lights Fund Trust IV; Aquila Distributors
|
Arrow
Reserve Capital Management ETF
|
SUPPLEMENTAL
INFORMATION (Unaudited)(Continued)
|
January
31, 2020
|
|
Interested
Trustees and Officers
Name,
Address, and
Year of Birth
|
Position(s)/Term
of Office*
|
Principal
Occupation(s) During the
Past 5 Years
|
Number
of
Portfolios
in Fund
Complex
Overseen
by Trustee 1
|
Other
Directorships Held
by Trustee
|
Joseph
Barrato2
Born in 1965
|
Chairman of the Board, Trustee, President, and Principal Executive Officer since 2011
|
Founder and Chief Executive Officer, Arrow Investment Advisors, LLC (2006-present).
|
10
|
Arrow ETF Trust
|
Sothara
Chin
Born in 1966
|
Chief
Compliance Officer since 2018; Previously from 2011-2015
|
Managing
Partner of Fit Compliance, LLC (2017 - present); Chief Operations Officer and Chief Compliance Officer, Impact Us Marketplace,
LLC (2015-2017); Chief Compliance Officer, Arrow Investment Advisors, LLC (2011-2015).
|
N/A
|
N/A
|
Jake
Griffith
Born in 1978
|
Secretary
since 2011
|
Founder,
President, and Director of Sales, Arrow Investment Advisors, LLC (2006-present).
|
N/A
|
N/A
|
Sam
Singh
80 Arkay Dr.
Hauppauge,
NY 11788
Born in 1976
|
Principal
Financial Officer and Treasurer since 2013
|
Vice
President (2015 - present); Assistant Vice President (2011-2015), Gemini Fund Services, LLC.
|
N/A
|
N/A
|
|
*
|
The
term of office for each Trustee will continue indefinitely until the individual resigns or is removed. Officers of the Trust are
elected annually.
|
|
1
|
The
Fund Complex includes Arrow ETF Trust, a registered management investment company, in addition to the Trust.
|
|
2
|
Joseph
Barrato is considered to be an interested person of the Trust, as that term is defined in the 1940 Act, because
he is a controlling interest holder of the investment advisor to each Fund, Arrow Investment Advisors, LLC.
|
The
Funds Statement of Additional Information includes additional information about the Trustees and is available free of charge,
upon request, by calling toll-free at 1-877-277-6933.
PRIVACY
NOTICE
Arrow Investments Trust
FACTS
|
WHAT DOES ARROW INVESTMENTS TRUST DO WITH YOUR PERSONAL INFORMATION?
|
Why?
|
Financial
companies choose how they share your personal information. Federal law gives consumers the right to limit some,
but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal
information. Please read this notice carefully to understand what we do.
|
What?
|
The
types of personal
information we
collect and share
depends on the
product or service
that you have with
us. This information
can include:
●
Social Security number and wire transfer instructions
●
account transactions and transaction history
●
investment experience and purchase history
When you are no longer our customer, we continue to share your information as
described in this notice.
|
How?
|
All financial companies need to share customers personal information
to run their everyday business. In the section below, we list the
reasons financial companies can share their customers personal
information; the reasons Arrow Investments Trust chooses to share;
and whether you can limit this sharing.
|
Reasons
we can share your
personal information:
|
Does Arrow Investments
Trust share information?
|
Can
you limit this
sharing?
|
For
our everyday business purposes - such as to process your transactions, maintain your account(s), respond to court orders
and legal investigations, or report to credit bureaus.
|
YES
|
NO
|
For
our marketing purposes - to offer our products and services to you.
|
NO
|
We
dont share
|
For
joint marketing with other financial companies.
|
NO
|
We
dont share
|
For
our affiliates everyday business purposes - information about your transactions and records.
|
NO
|
We
dont share
|
For
our affiliates everyday business purposes - information about your credit worthiness.
|
NO
|
We
dont share
|
For
nonaffiliates to market to you
|
NO
|
We
dont share
|
QUESTIONS?
|
Call 1-877-277-6933
|
PRIVACY
NOTICE
Arrow
Investments Trust
What
we do:
|
How
does Arrow Investments Trust protect my personal information?
|
To
protect
your
personal
information
from
unauthorized
access
and
use,
we
use
security
measures
that
comply
with
federal
law.
These
measures
include
computer
safeguards
and
secured
files
and
buildings.
Our
service providers are held accountable for adhering to strict policies and procedures to prevent any misuse of your nonpublic
personal information.
|
How
does Arrow Investments Trust collect my personal information?
|
We
collect
your
personal
information,
for
example,
when
you
●
open an account or deposit money
●
direct us to buy securities or direct us to sell your securities
●
seek advice about your investments
We
also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
|
Why
cant I limit all sharing?
|
Federal
law
gives
you
the
right
to
limit
only:
●
sharing for affiliates everyday business purposes – information about your creditworthiness.
●
affiliates from using your information to market to you.
●
sharing for nonaffiliates to market to you.
State
laws and individual companies may give you additional rights to limit sharing.
|
Definitions
|
Affiliates
|
Companies
related
by
common
ownership
or
control.
They
can
be
financial
and
nonfinancial
companies.
●
Arrow Investments Trust does not share with our affiliates.
|
Nonaffiliates
|
Companies
not
related
by
common
ownership
or
control.
They
can
be
financial
and
nonfinancial
companies.
●
Arrow Investments Trust does not share with nonaffiliates so they can market to you.
|
Joint
marketing
|
A
formal agreement between nonaffiliated financial companies that together market financial products or services to
you.
●
Arrow Investments Trust does not jointly market.
|
PROXY
VOTING POLICY
Information
regarding how the Fund voted proxies relating to portfolio securities for the most recent twelve-month period ended June 30 as
well as a description of the policies and procedures that the Fund uses to determine how to vote proxies is available without
charge, upon request, by calling 1-877-277-6933 or by referring to the Securities and Exchange Commissions (SEC)
website at http://www.sec.gov.
PORTFOLIO
HOLDINGS
The
Fund files its complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form
N-Q. Form N-Q is available on the SECs website at http://www.sec.gov. The information on Form N-Q is available without
charge, upon request, by calling 1-877-277-6933.
INVESTMENT
ADVISOR
|
Arrow
Investment Advisors, LLC
|
6100
Chevy Chase Drive
|
Suite
100
|
Laurel,
MD 20707
|
|
INVESTMENT
SUB-ADVISOR
|
Halyard
Asset Management, LLC
|
707
Westchester Avenue
|
White
Plains, NY 10604
|
|
ADMINISTRATOR
|
Gemini
Fund Services, LLC
|
4221
North 203rd Street, Suite 100
|
Elkhorn,
Nebraska 68022-3474
|