Arrow Funds offers the DWCR, an investment product with a unique approach to portfolio construction. The DWCR seeks to replicate the performance of a specific index by investing substantially all of its total assets in component securities of the Index and other investments with economic characteristics similar to those component securities. The index selection methodology is based on long positions in the equity markets of foreign countries exhibiting strong momentum characteristics. The foreign universe includes developed and emerging markets, excluding the United States, and the allocation among these markets depends on global price trends. The Index employs a momentum style of investing, emphasizing securities with better relative performance. Quarterly, at least ten countries with the highest relative strength are selected, with equal-weighted exposure. The securities within each country are also equally weighted. Notably, the strategy is purely systematic and does not consider fundamental company data. The Advisor anticipates a high correlation between the Fund's performance and that of the Index. While the Fund generally uses a replication strategy, it may employ representative sampling or invest in cash, cash equivalents, and other instruments not in the Index to track it effectively. The Fund may also concentrate investments in specific industries, aligning with the Index's concentration. This comprehensive and dynamic investment strategy provides investors with exposure to global markets based on momentum characteristics and systematic processes.
The DWCR, managed by Arrow Funds, offers investors potential dividend income as part of its investment strategy. As the fund aims to replicate the performance of a specific index comprised of equity securities from foreign countries with strong momentum characteristics, investors may benefit from dividends distributed by the underlying securities in the portfolio. While the primary focus is on capital appreciation through systematic momentum investing, dividend income from the selected countries and their respective equity securities adds an additional layer of potential returns for investors. The DWCR's approach to portfolio construction, which involves equal-weighted exposure to countries and securities with high relative strength, may contribute to a diversified income stream through periodic dividend distributions, providing investors with a well-rounded investment opportunity.
The DWCR, managed by Arrow Funds, employs a tracking strategy to replicate the performance of a specific index with precision. The fund primarily utilizes a replication strategy, investing in all component securities of the index in approximately the same proportions as they are represented in the index itself. This approach ensures that the DWCR closely mirrors the market movements and relative strengths of the selected countries and securities within the index. However, the fund may also deploy a representative sampling strategy when deemed in the best interests of the fund by the advisor. In such instances, the fund may invest in a subset of securities from the index that closely resemble the overall risk, return, and other characteristics of the entire index. This adaptive strategy allows the DWCR to effectively track the index's performance, providing investors with a reliable and consistent means of gaining exposure to global markets based on the specified momentum criteria and systematic investment processes. Additionally, the fund may invest in cash, cash equivalents, and other instruments outside the index to account for corporate actions and changes in the index's composition, demonstrating a dynamic approach to tracking the chosen benchmark.
The DWCR, a fund managed by Arrow Funds, aims for a high correlation with its benchmark index. The advisor anticipates that, over time, the correlation between the DWCR's performance and that of the index will be 95% or higher, before accounting for fees and expenses. This emphasizes the fund's commitment to closely tracking the market movements and relative strengths of the selected countries and securities within the index. The systematic and disciplined investment approach, based on the momentum characteristics of foreign markets, contributes to maintaining this targeted correlation. Investors seeking a fund that aligns closely with the performance of the specified index may find the DWCR an appealing choice due to its focus on achieving and sustaining a strong correlation, providing a reliable means of exposure to global markets while leveraging the systematic investment methodology employed by Arrow Funds.
The DWCR, managed by Arrow Funds, exhibits a sector-agnostic approach, emphasizing a diversified exposure to various industries within the foreign markets it encompasses. While the fund may concentrate its investments in specific industries or groups, the decision is typically aligned with the composition of the underlying index rather than a deliberate sector-based strategy. The index selection methodology focuses on long positions in the equity markets of foreign countries demonstrating strong momentum characteristics, without specific consideration given to the allocation among developed and emerging markets. As a result, the DWCR offers investors a dynamic and globally diversified portfolio, reflecting the relative strength of selected countries and their associated equity securities, rather than adhering to a predetermined sectoral bias. This approach provides investors with the opportunity to gain exposure to a broad spectrum of industries, enhancing portfolio diversification within the framework of the fund's momentum-driven investment strategy.
The DWCR, managed by Arrow Funds, provides investors with a unique and dynamic exposure to global markets. With its investment strategy centered around replicating the performance of a specific index, the fund seeks to capture the momentum characteristics of equity markets in foreign countries, excluding the United States. The exposure is not confined to a predetermined sector, but rather it results from a systematic selection process based on the relative strength of countries and their equity securities. The index methodology involves equal-weighting both countries and selected securities, ensuring a diversified approach to capturing market trends. Investors can benefit from exposure to both developed and emerging markets, reflecting the global price trends that guide the fund's allocation decisions. Whether through a replication or representative sampling strategy, the DWCR aims to provide a comprehensive and flexible exposure that aligns with the systematic investment approach implemented by Arrow Funds, offering investors a distinct opportunity for global market participation.
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