The fund uses an absolute returns strategy, which attempts to lower the volatility that normally arises from market risk. The Fund seeks to achieve a risk target of 7% and total rate of return that meets or exceeds 10% per year over a rolling three to five year time horizon. The Arrow Alternative Solutions Fund requires a minimum initial investment of $5,000 or $2,000 for retirement accounts and a minimum of $250 for all subsequent investments. The new fund will be managed by William Flaig, chief investment officer of the company.
Mr Flaig said: The unique design of the Arrow Alternative Solutions Fund allows for low correlations to traditional assets with greater diversification, a risk target and controls, using passive investment strategies at a lower cost than most long/short products.
