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Frequently Asked Questions

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Frequently Asked Questions

Buying Arrow Funds

How can I buy an Arrow fund?

You may purchase Arrow funds through a network of Canadian brokerages and financial planners, or through Arrow directly.

Can anyone buy an Arrow fund?

Rules vary by region. Across Canada, you can make a purchase if you qualify as accredited investor or invest a minimum of $150,000. If you live in certain jurisdictions you may make a purchase under the Offering Memorandum Exemption that does not require you to qualify as an accredited investor, but you must sign a risk acknowledgement form (BC, NF/LB, NB, NS only).

Am I an accredited investor?

An accredited investor is generally defined as one who has a certain minimum threshold amount of money to invest in any private offering, an institutional investor or an investor, which satisfies a minimum income threshold. Please speak to your investment advisor to determine if you qualify as an accredited investor, and some examples are listed below:

beneficially owns, or together with a spouse owns, financial assets (cash and securities) having an aggregate realizable value that, before taxes but net of any related liabilities (liabilities incurred for the purpose of acquiring the financial assets and liabilities that are secured financial assets), exceeds $1,000,000

had net income before taxes that exceeded $200,000 in each of the two most recent calendar years or had a net income before taxes combined with that of a spouse that exceeded $300,000 in each of those years and, in either case, the Investor has a reasonable expectation of exceeding the same net income level in the current year

is a corporation, partnership, trust, association, syndicate, organization, or other group of persons whether incorporated or not, other than a mutual fund or non-redeemable investment fund, that had net assets of at least $5,000,000 as reflected in its most recently prepared financial statements

is a person or company registered under the securities legislation of any jurisdiction in Canada as an advisor or dealer, other than solely as a limited market dealer registered under the Securities Act (Ontario) or the Securities Act (Newfoundland and Labrador),

a person in respect of which all of the owners of interests, direct, indirect or beneficial, except the voting securities required by law to be owned by directors, are persons that are accredited investors

a person acting on behalf of a fully managed account managed by that person, if that person (i) is registered or authorized to carry on business as an adviser or the equivalent under the securities legislation of a jurisdiction of Canada, or a foreign jurisdiction, and (ii) in Ontario, is purchasing a security that is not a security of an investment fund (a) fully managed account means an account of a client for which a person makes the investment decisions if that person has full discretion to trade in securities for the account without requiring the client's express consent to a transaction

What documents do I need to purchase a fund with Arrow?

We require all investors to complete and submit the applicable subscription forms (investment application and if applicable, a risk acknowledgement form). Please see Investment Documents or contact your regional Arrow sales representative for more information.

Where do I download the investment application/risk form/offering memorandum on your website?

Please see our Investment Documents

I need assistance filling out your subscription documents, can you help me?

Please contact your regional Arrow sales representative.

Where can I find a list of your fund codes on your website?

Please see our Funds at a Glance.

I am from a different country. Can I buy your funds?

Please refer to the "Closed Countries" list below to determine eligibility. Please note all purchases made in a Canadian CRA Trust plan are exempt from non-resident restrictions.

Open Countries Unsolicited Open Countries Closed Countries

Bahamas
Bermuda
Costa Rica
Egypt
Isle of Mann
Jersey
Turks/Caicos

Argentina
Austria
Belgium
Cayman Islands
Chile
Denmark
Finland
France
Germany
Greece
Guernsey
Hong Kong
Italy
Ireland
Japan
Luxembourg
Mexico
Netherlands
New Zealand
Norway
Portugal
Saudi Arabia
South Africa
Spain
Sweden
Switzerland
Taiwan
United States*
*Registered accounts ONLY.

Australia
Brazil
China
Gibraltar
India
Israel
Jamaica
Pakistan
Russia
Singapore
South Korea
Thailand
United Kingdom

Is your fund approved at my dealer? If not, can I buy directly with Arrow?

Fund approval various by dealer. Please consult your mutual funds department in order to determine a fund's approval status. Clients may be eligible to invest directly with Arrow. For further details please contact an Arrow representative.

My order is rejected on FundSERV, why is that?

This may be due to several different reasons (ie. Insufficient funds in the account, etc.). Please contact your dealer mutual funds department in order to determine the cause of the rejected wire order.

Will I receive a copy of the Offering Memorandum when I invest?

Arrow mails a copy of the Offering Memorandum ("OM") to each investor approximately 3-5 business days after the trade date. The OM is also available on the Arrow website.

Can I request financial statements for my fund?

Yes. Arrow will mail a letter to all unitholders (exception Principal Protected Notes and Class B International funds) each year to determine whether you would like to receive annual or semi-annual statements. Please reply to this letter (by mail or by phone) should you wish to receive statements.

Existing Clients

I am adding to my fund position at Arrow. Do I need to submit any other documents?

Additional subscription documents may be required. Please see Investment Documents or contact your regional Arrow sales representative for further information.

What are the liquidity terms on the funds?

This varies by fund, but most of our funds are redeemable monthly and require a notice period. Please see our Funds at a Glance for further details.

If I redeem my fund position, what are the applicable fees that could be charged?

Possible charges may include deferred sales charges (DSC), early redemption charges (ERC) and performance fees. Please contact RBC Dexia Client Services for more information.

Why does my client's cost base differ from yours at Arrow?

Your dealer's back office system may not properly recognize the return of capital component of reinvested distributions. Please contact Arrow Client Services for accurate cost base amounts.

What are the tax implications for the fund?

Please contact a qualified tax advisor for further information.

How and when do I receive my T3 form?

Through RBC Dexia Client Services, Arrow issues all T3 slips for applicable accounts. T3 slips are mailed to unit holders by the end of March each year.

How do performance fees work and how is the high water mark calculated?

Arrow typically charges a 20% performance fee, whereby the fund manager retains 20% of all gains above a high-water mark, which is the highest peak in value that a fund has reached. If the value of the investor's position in the fund falls below its previous peak (or "high-water mark"), no performance fees may be charged until after a new historical high has been achieved.

Performance fees are taken at year-end. These fees will reduce the fund's Net Asset Value Per Share ("NAVPS"). Unit rebates are then made to unitholder accounts in order to equalize them for the drop based on their individual performance in that fund, and based on their individual, perpetual high water mark.

What type of queries should I be contacting Arrow head office vs. RBC Dexia Client Services for?

For account-related issues please contact RBC Dexia Client Services at 1-866-261-6134. For sales and marketing support, please contact Arrow head office at 1-877-327-6048 or through your regional Arrow representative.

Where can I find distributions from previous years on your site?

Please see our Year End Distribution

Prices & Performance

When are your funds priced?

Depending on the fund, weekly and monthly. Arrow Special Opportunities is the exception, pricing approximately 45 days after each quarter-end.

When are your prices and performance returns updated on the website?

Every Tuesday.

Where can I find the current yield for your funds that make regular distributions?

Please contact your regional Arrow sales representative for this information. You may also use this formula to determine the annualized yield: (12 months * monthly distribution)/NAVPS.

Arrow Insights

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Client Resources

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Contact Information

Client Services
RBC Dexia Investors Services
Tel: 416.955.5771
Toll-Free: 866.261.6134
Fax: 416.955.5771

Sales & Head Office
Tel: 416.323.0477
Toll-Free: 877.327.6048
Fax: 416.323.3199
For General Information:
info@arrow-capital.com

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