Fund Evaluator:

Arrow Managed Futures Strategy Instl Overview

Arrow Managed Futures Strategy Instl (MFTNX) is an actively managed Alternative Systematic Trend fund. Arrow Funds launched the fund in 2012.

The investment seeks long-term capital appreciation and to achieve absolute returns. The fund pursues its investment objective by implementing a fixed income strategy and a managed futures strategy. It executes its managed futures strategy primarily by investing up to 25% of its total assets in a wholly-owned and controlled subsidiary. It executes its fixed income strategy primarily by investing directly or indirectly through other funds in U.S. government securities, short-term, high quality fixed-income securities, money market instruments, overnight and fixed-term repurchase agreements, cash, and other cash equivalents with maturities of one year or less.

About Arrow Managed Futures Strategy Instl (MFTNX)

There are 2 members of the management team with an average tenure of 12.09 years: Jonathan Guyer (2014), Joseph Barrato (2014). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and Credit Suisse Mgd Futures Liquid TR USD index with a weighting of 100%. Arrow Managed Futures Strategy Instl has 5 securities in its portfolio. The top 10 holdings constitute 100.0% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Arrow Managed Futures Strategy Instl is part of the Alternative Strategies global asset class and is within the Alternative fund group. Arrow Managed Futures Strategy Instl has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 9.1% (9.1% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Arrow Managed Futures Strategy Instl has 31.9% of the portfolio in cash.

Assets Under Management

The fund has $210 million in total assets, which is below the $283 million average for the Systematic Trend category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

MFTNX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Arrow Managed Futures Strategy Instl expense ratio is high compared to funds in the Systematic Trend category. Arrow Managed Futures Strategy Instl has an expense ratio of 1.46%, which is 28% lower than its category average, making the fund expense ratio grade a B. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. A portfolio turnover rate cannot be currently calculated for Arrow Managed Futures Strategy Instl. By way of comparison, the average portfolio turnover is 228% for the Systematic Trend category.

Recently, in the month of August 2026, Arrow Managed Futures Strategy Instl returned 6.6%, which earned it a grade of A, as the Systematic Trend category had an average return of 2.8%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Arrow Managed Futures Strategy Instl has a trailing yield of 0.00%, which is below the 2.53% category average. The fund normally distributes its income annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Arrow Managed Futures Strategy Instl Grades

Year to date, the fund has returned 16.5%, 6.0 percentage points better than the category, which translates into a grade of A. The fund has returned 40.7% over the past year (grade of A), 5.0% over the past three years (grade of C) and 12.9% per year over the past five years (grade of A) and 6.0% per year over the past 10 years (grade of A).

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