As planned, Arrow Funds took the wraps off its third mutual fund last week. Subadvised by Dorsey Wright and Associates, the Arrow DWS Tactical Fund hit the market May 30 and is available in two share classes. Class A shares come with an expense ratio of 206 bps and Advisor Class shares sport a 281 bps expense ratio.

Arrow CEO and director of investment strategies Joe Barrato called the fund, which invests mainly in exchange-traded funds, a "direct response to our clients' requests for a more aggressive approach to the Arrow DWA Balanced Fund."

The MFWire reported in April that Arrow planned to come out with its third mutual fund in May (see "Arrow Funds Shoots for More Distribution," April 21, 2008). Barrato told The MFWire at the time that the Olney, Maryland-based firm plans to have a total of five mutual funds by yearend.

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Company Press Release

OLNEY, MD--(Marketwire - June 02, 2008) - Arrow Funds announced today the launch of their third mutual fund, the Arrow DWA Tactical Fund (NASDAQ: DWTFX) (NASDAQ: DWTTX). Launched on May 30, 2008, the new fund of funds gives investors a more aggressive approach to Arrow DWA Balanced Fund (NASDAQ: DWAFX) (NASDAQ: DWATX) and provides focused exposure across multiple market segments. The launch is part of Arrow Funds' plan for continued strategic growth.

The firm has grown significantly over the past year and recently passed $350 million in assets under management. The new Fund also comes on the heels of the Arrow DWA Balanced Fund's #1 ranking in its class by Lipper and Arrow's 2007 Lipper Performance Achievement recognition.

"We are thrilled with the success of our fund family," said Joseph Barrato, CEO and Director of Investment Strategies at Arrow Funds. "Each of our Funds has grown this year, despite the market conditions. We continue to be committed to offering portfolio solutions for the ever-changing capital markets," Mr. Barrato added. "The new Fund is a direct response to our clients' requests for a more aggressive approach to the Arrow DWA Balanced Fund."

The fund family hopes to add to its success and further expand shareholder choices with the Arrow DWA Tactical Fund, which invests primarily in exchange traded funds (ETFs). The Fund will be managed by Dorsey Wright and Associates (DWA), who uses technical analysis to allocate the Fund's portfolio among four market segments: U.S. Equity, International Equity, Fixed Income, and Alternative Assets.

Arrow Funds also partners with DWA on the highly successful Arrow's DWA Balanced Fund, which, in addition to being Lipper ranked #1 in its category for the calendar year of 2007, was also among the top 2% of funds in its Morningstar category in 2007 -- and has remained there through April 30, 2008.

The new Fund will still invest among five rotation strategies using DWA's relative strength discipline. However, the exposure range to each rotation strategy was expanded to give DWA more flexibility to focus its exposure. "The Tactical Fund will be more volatile when compared to the Balanced Fund, but its goal is to provide greater returns for investors over a long term horizon," said Mr. Barrato. 

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