Introduction to

DUNN Capital Management, LLC

Managed Futures: World Monetary &
Agriculture Program

Arrow Managed Futures Strategy Fund

MFTFX MFTTX MFTNX

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TARGETING PORTFOLIO SOLUTIONS

Introduction to Managed Futures

Managed futures are a type of non-traditional or alternative investment. Managed futures portfolios are
managed by Commodity Trading Advisors (CTAs) who speculate on the price movements of various
futures and options markets. Futures and options contracts are legal agreements between buyers and
sellers of commodities (e.g. energy, metals and agriculture products) and financial instruments (e.g.
foreign currencies, government bonds, and equity market indices). Simply stated, the prices of futures
are grounded in the basic principals of supply and demand.

Managed futures strategies and their results can differ significantly. For years, an advantage that CTAs
had was the ability to invest long or short. The long/short nature of managed futures has provided
times when they were able to perform well even during periods of stress in the global markets. For
example, during the calendar years 2000 (“Internet Bubble”) and 2008 (“Global Financial Crisis”), the
S&P 500 Index was down -9.1% and -37.0%, respectively. During the same years, the Barclay Top 50
(BTOP50) managed futures index was up 6.6% and 13.6%. Today’s mutual funds now provide long/
short exposure as well, which opens the door to managed futures strategies for a wider range of clients.
Managed futures may be a compelling choice for investors seeking:

• An alternative investment strategy offering historically low correlation to traditional assets for
enhanced portfolio diversification—including low correlation to “long only” commodities
• A strategy to seek other sources of return through a higher volatility strategy with the potential to
reduce overall portfolio volatility due to low correlation
• Access to trend-following strategies designed to buy (long) global futures and options contracts
during rising markets and sell (short) during falling markets

DUNN Capital Management, LLC

Founded in 1974 by Dr. William A. Dunn, a pioneer in managed futures, DUNN Capital Management,
LLC (DUNN) is one of the world’s oldest Commodity Trading Advisor (CTA) firms. DUNN is recognized
as a top-tier CTA firm with approximately $1 billion in assets under management. The firm has always
viewed risk from the perspective of the investor. This is not surprising given that a large portion of
the firm’s assets under management belong to employees, friends, and family. As a CTA, DUNN’s
presence has been fairly quiet without much self-promotion, but those in the investment community
have taken notice. Over the years, DUNN has received many forms of industry recognition for their
investment strategies.

Arrow Managed Futures STRATEGY Fund

Targeting Trends in the Global Futures Markets
Arrow Managed Futures Strategy Fund is a mutual fund that provides exposure to
global commodity and financial futures markets by closely tracking DUNN Capital
Management’s World Monetary and Agriculture Program—a systematic trend
following managed futures strategy.

All investments involve risks, including the potential for loss. See back cover for additional information.

2 • Introduction to DUNN Capital

DUNN World Monetary and Agriculture Program

In 1984, DUNN created its flagship World Monetary and Agriculture Program (WMA*). WMA utilizes
a systematic, trend following strategy, encompassing a portfolio of financial and commodity futures
markets. Some CTA programs put an emphasis on absolute returns ahead of total return. The focus
of WMA is long-term growth, rather than sacrificing return in favor of capital preservation. The WMA
strategy is based on DUNN’s philosophy that all markets exhibit trends, and one can achieve better
risk-adjusted performance by combining multiple low-correlated markets. The program is almost always
invested, either long or short, across a broad range of asset classes and sectors. Occasionally, a flat
position (i.e., a zero allocation) may be taken when there is no clear trend in a specific market.

WMA seeks to extract profits from both upward and downward

trends in the commodity and financial markets. Each day, the Identify
price trends of more than 50 markets are loaded into more than Price Trend of
100 proprietary quantitative computer models. If a market 50+ Futures Contracts
trend appears to be good or bad, risk exposure is increased or
decreased accordingly. This approach is 100% systematic, based
Analyze
solely on computer models without human decision making and
100+ Quantitative
emotions. WMA does not attempt to predict trends. Instead, it tries Computer Models
to identify and capture trends as they occur.

WMA offers exposure to the following commodity and financial

Implement
futures markets. The list is adaptive and can change as DUNN has
Long or Short
the ability to enter additional markets or step aside from those that Positions in Each Market
are not working.

Commodities Currencies Debt Futures Equity Futures

Brent Crude Live Cattle Australian Dollar Australian 3 Year ASX SPI 200
Cocoa Natural Gas British Pound Australian 10 Year CAC 40
Coffee Silver Canadian Dollar BOBL Dow Jones
Copper Soybean Meal Euro Euro Dollars Euro STOXX
Corn Soybean Oil Japanese Yen German Bund FT-SE 100
Cotton Soybeans Mexican Peso Liffe Euribor German DAX
Crude Oil Sugar Swiss Franc Long Gilt Hang Seng
Gas Oil Unleaded Gas Schatz NASDAQ
Gold Wheat (CBOT) Short Sterling Osaka Nikkei
Heating Oil Wheat (KC) TSE JGB S&P 500
Lean Hogs U.S. 2 Year TOPIX
U.S. 5 Year VIX
U.S. 10 Year
U.S. Bonds
*Past performance is not indicative of future results. The World Monetary & Agriculture Program is
available only to qualified participants. Futures trading is speculative and involves risk. Portfolio exposures
vary and components are subject to change.

Introduction to DUNN Capital • 3

 Arrow Managed Futures Strategy Fund
Investment objective: The fund seeks long-term capital appreciation and to achieve absolute returns.
Strategy description: The fund provides exposure to the global commodity and financial futures markets
by tracking the DUNN WMA Program, a systematic trend following managed futures strategy.

Highlights: Available in multiple share classes:

• Exposure to DUNN Capital in a mutual fund CLASS SYMBOL CUSIP
• Low correlation to traditional investments Class A MFTFX 042765875
• A complement to “long only” commodity funds Class C MFTTX 042765867
• Alternative to illiquid private placement and CTA funds Class I MFTNX 042765859

For more information, contact your financial advisor

or call Arrow Funds at (877) 277-6933.

The Arrow Managed Futures Strategy Fund may not be suitable for all investors. The fund may invest
in commodity-related securities, which may be subject to greater volatility than investments in traditional
securities. The use of derivatives such as futures, options, structured notes, repurchase agreements,
and swap agreements may expose the fund to additional risks than investing directly in the underlying
securities. Investing in leveraged instruments will magnify any gains or losses on those instruments. Fixed
income securities are subject to risks including interest rate, credit, inflation, and counterparty risks. The
fund’s use of short selling and investments in currency-related securities involve increased risks and
additional costs. DUNN Capital Management does not serve as advisor or subadvisor to the fund. The
fund maintains indirect exposure through derivative instruments (such as swap agreements) designed to
replicate the net performance of the DUNN WMA Program before mutual fund fees and expenses. The
funds may allocate assets to an offshore subsidiary which is not subject to the Investment Company Act of
1940, meaning that changes in laws could result in the inability to operate as described in the prospectus.

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TARGETING PORTFOLIO SOLUTIONS

Past performance is not indicative of future results. The contents contained herein are for informational
purposes only and are not intended as an offer to buy or sell any security, or participate in any trading
strategy or investment program. This material does not provide tailored investment advice and was
prepared without regard for specific circumstances and objectives. The DUNN Capital World Monetary &
Agriculture Program (“WMA”) is not a mutual fund, and is only available to qualified participants. Futures
trading is speculative, involves risk, and may not be suitable for all investors.

Before investing, please read the prospectus and shareholder reports to learn about the investment
strategy and potential risks. Investing involves risks, including the potential for loss of principal. An investor
should consider the fund’s investment objective, charges, expenses and risks carefully before investing.
This and other information about the fund is contained in the fund’s prospectus, which can be
obtained by calling 1-877-277-6933. Arrow Funds are distributed by an affiliate, Archer Distributors,
LLC (member FINRA).

Arrow Funds | 6100 Chevy Chase Drive, Suite 100 | Laurel, MD 20707 | (877) 277-6933 Opt. 1.
Visit our website at www.arrowfunds.com
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