Arrow Reserve Capital Management ETF
Semi-Annual Report
July 31, 2022



Arrow Reserve Capital Management ETF
July 31, 2022


The Fund’s performance figures* for the period ended July 31, 2022, as compared to its benchmark:


      Annualized Annualized Since Inception** -
  Six Months One Year Three Year Five Year July 31, 2022
Arrow Reserve Capital Management ETF - NAV (0.30)% (0.70)% 0.33% 0.98% 0.96%
Arrow Reserve Capital Management ETF - Market Price (0.25)% (0.60)% 0.35% 1.01% 0.96%
FTSE Treasury Bill 6 Month USD Index 0.31% 0.34% 0.69% 1.18% 1.16%


* Past performance does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the sale of Fund shares. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.arrowfunds.com or by calling 1-877-277-6933.


The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the market price or bid/ask as of close of market on the primary stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively. Information detailing the number of days the Market Price of the Fund was greater than the Fund’s NAV and the number of days it was less than the Fund’s NAV can be obtained at www.arrowfunds.com. The Fund’s total annual operating expenses, before fee waivers and/or expense reimbursements, are 0.59% per the June 1, 2022 prospectus. After fee waivers and/or expense reimbursements, the Fund’s total annual expenses are 0.50% per the June 1, 2022 prospectus. The Fund’s total return would have been lower had the investment advisor not waived a portion of the Fund’s expenses. Please see the Financial Highlights for a more recent expense ratio.


** As of the close of business on the day of commencement of trading on March 31, 2017.


The FTSE Treasury Bill 6 Month USD Index is a market value-weighted index of public obligations of the U.S. Treasury with maturities of six months. The Index reflects no deduction for fees, expenses or taxes. Investors cannot invest directly in an index.


The Fund’s Holdings by Asset Class as of July 31, 2022 are as follows:


Asset Class   % of Net Assets  
Corporate Bonds     72.2 %
Municipal Bonds     15.8 %
U.S. Government & Agencies     7.1 %
Other Assets In Excess Of Liabilities     4.9 %
      100.0 %


Please refer to the Schedule of Investments in this Semi-Annual Report for a detailed listing of the Fund’s holdings.



July 31, 2022


Principal             Coupon Rate          
Amount ($)         Spread   (%)   Maturity   Fair Value  
        CORPORATE BONDS — 72.2%                    
        AEROSPACE & DEFENSE — 2.2%                    
  50,000     Boeing Company (The)       2.2000   10/30/22   $ 49,878  
  1,086,000     Boeing Company (The)       1.1670   02/04/23     1,072,606  
        AUTOMOTIVE — 2.6%                    
  1,000,000     American Honda Finance Corporation       2.6000   11/16/22     1,000,873  
  153,000     Toyota Motor Credit Corporation(a)   SOFRINDX + 0.330%   1.8970   01/11/24     152,022  
  155,000     Toyota Motor Credit Corporation(a)   SOFRRATE + 0.620%   2.1490   03/22/24     154,191  
        BANKING — 7.5%                    
  655,000     Bank of America Corporation       3.3000   01/11/23     655,598  
  169,000     Bank of America Corporation(a)   SOFRRATE + 0.660%   1.8570   02/04/25     165,753  
  690,000     Capital One NA       2.1500   09/06/22     689,961  
  198,000     Citigroup, Inc.       2.7000   10/27/22     198,063  
  1,047,000     Discover Bank       3.3500   02/06/23     1,045,593  
  453,000     JPMorgan Chase & Company       3.2000   01/25/23     453,525  
  284,000     JPMorgan Chase & Company       3.8750   02/01/24     287,568  
  275,000     KeyBank NA(a)   SOFRRATE + 0.340%   1.9800   01/03/24     272,963  
        BIOTECH & PHARMA — 5.7%                    
  264,000     AbbVie, Inc.       2.9000   11/06/22     263,803  
  832,000     AbbVie, Inc.       2.3000   11/21/22     830,615  
  565,000     AstraZeneca plc       0.3000   05/26/23     551,682  
  88,000     Bristol-Myers Squibb Company       2.7500   02/15/23     87,898  
  436,000     Bristol-Myers Squibb Company       7.1500   06/15/23     450,754  
  708,000     Zoetis, Inc.       3.2500   02/01/23     707,546  
        CONSUMER SERVICES — 0.4%                    
  196,000     Princeton Theological Seminary       4.1050   07/01/23     196,174  
        E-COMMERCE DISCRETIONARY — 1.3%                    
  494,000     Amazon.com, Inc.       0.2500   05/12/23     485,297  
  150,000     Amazon.com, Inc.       2.7300   04/13/24     149,703  


See accompanying notes to financial statements.



SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
July 31, 2022


Principal             Coupon Rate          
Amount ($)         Spread   (%)   Maturity   Fair Value  
        CORPORATE BONDS — 72.2% (Continued)                    
        ELECTRIC UTILITIES — 4.2%                    
  971,000     Dominion Energy, Inc.       2.7500   09/15/22   $ 969,774  
  35,000     Dominion Energy, Inc.(b)       2.4500   01/15/23     34,802  
  11,000     Duke Energy Corporation       2.4000   08/15/22     10,995  
  204,000     Eversource Energy       4.2000   06/27/24     204,869  
  292,000     Florida Power & Light Company(a)   SOFRRATE + 0.250%   1.4110   05/10/23     290,766  
  237,000     Florida Power & Light Company(a)   SOFRINDX + 0.380%   1.9480   01/12/24     234,268  
  322,000     Southern Company (The)       0.6000   02/26/24     306,519  
  67,000     Virginia Electric and Power Company       3.4500   09/01/22     66,998  
        FOOD — 4.2%                    
  369,000     Campbell Soup Company       3.6500   03/15/23     368,799  
  378,000     Conagra Brands, Inc.       3.2500   09/15/22     378,173  
  859,000     Conagra Brands, Inc.       3.2000   01/25/23     857,794  
  501,000     General Mills, Inc.       2.6000   10/12/22     501,132  
        HEALTH CARE FACILITIES & SERVICES — 11.4%                    
  509,000     Aetna, Inc.       2.7500   11/15/22     508,928  
  622,000     Anthem, Inc.       3.3000   01/15/23     622,095  
  1,013,000     Cigna Corporation       3.0500   11/30/22     1,012,557  
  208,000     CommonSpirit Health       2.9500   11/01/22     208,259  
  87,000     CVS Health Corporation       2.7500   12/01/22     86,947  
  379,000     Dignity Health       3.1250   11/01/22     379,037  
  402,000     Humana, Inc.       3.1500   12/01/22     401,999  
  526,000     Humana, Inc.       2.9000   12/15/22     525,054  
  87,000     Humana, Inc.       0.6500   08/03/23     84,606  
  934,000     McKesson Corporation       2.7000   12/15/22     932,084  
  67,000     McKesson Corporation       3.7960   03/15/24     67,232  
  907,000     SSM Health Care Corporation       3.6880   06/01/23     907,929  
        HOME & OFFICE PRODUCTS — 2.1%                    
  1,044,000     Whirlpool Corporation       3.7000   03/01/23     1,046,293  


See accompanying notes to financial statements.



SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
July 31, 2022


Principal             Coupon Rate          
Amount ($)         Spread   (%)   Maturity   Fair Value  
        CORPORATE BONDS — 72.2% (Continued)                    
        HOME CONSTRUCTION — 1.1%                    
  161,000     DR Horton, Inc.       4.3750   09/15/22   $ 161,070  
  414,000     Lennar Corporation       4.7500   11/15/22     414,373  
        HOUSEHOLD PRODUCTS — 1.4%                    
  720,000     Church & Dwight Company, Inc.       2.8750   10/01/22     719,331  
        INSTITUTIONAL FINANCIAL SERVICES — 3.2%                    
  174,000     Bank of New York Mellon Corporation (The)       1.8500   01/27/23     172,949  
  109,000     Goldman Sachs Group, Inc. (The)       3.6250   01/22/23     109,309  
  500,000     Goldman Sachs Group, Inc. (The)       3.2000   02/23/23     500,160  
  532,000     Goldman Sachs Group, Inc. (The)(a)   SOFRRATE + 0.700%   2.3200   01/24/25     520,973  
  110,000     Morgan Stanley(a)   SOFRRATE + 0.625%   2.6240   01/24/25     107,649  
  221,000     Morgan Stanley(a)   SOFRRATE + 1.165%   2.9450   04/17/25     219,088  
        INSURANCE — 5.1%                    
  1,055,000     Chubb INA Holdings, Inc.       2.7000   03/13/23     1,053,184  
  35,000     Marsh & McLennan Companies, Inc.       3.8750   03/15/24     35,210  
  500,000     New York Life Global Funding(b)       1.1000   05/05/23     491,837  
  500,000     New York Life Global Funding(b)       3.1500   06/06/24     496,309  
  500,000     Principal Financial Group, Inc.       3.3000   09/15/22     500,038  
        LEISURE FACILITIES & SERVICES — 3.5%                    
  483,000     Marriott International, Inc.       2.1250   10/03/22     481,843  
  387,000     Marriott International, Inc.       3.1250   02/15/23     387,152  
  390,000     Marriott International, Inc.       4.1500   12/01/23     392,509  
  561,000     Starbucks Corporation       3.1000   03/01/23     561,715  
        MACHINERY — 6.3%                    
  1,125,000     Caterpillar Financial Services Corporation(a)   SOFRRATE + 0.170%   1.7360   01/10/24     1,112,094  
  707,000     Eaton Corporation       2.7500   11/02/22     706,342  


See accompanying notes to financial statements.



SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
July 31, 2022


Principal             Coupon Rate          
Amount ($)         Spread   (%)   Maturity   Fair Value  
        CORPORATE BONDS — 72.2% (Continued)                    
        MACHINERY — 6.3% (Continued)                    
  579,000     John Deere Capital Corporation(a)   SOFRRATE + 0.560%   1.8540   03/07/25   $ 571,385  
  825,000     Parker-Hannifin Corporation       3.5000   09/15/22     825,503  
        SOFTWARE — 1.1%                    
  533,000     Oracle Corporation       2.5000   10/15/22     532,339  
        SPECIALTY FINANCE — 5.6%                    
  424,000     American Express Co       3.4000   02/22/24     423,467  
  449,000     American Express Company       3.3750   05/03/24     448,540  
  668,000     Capital One Financial Corp       3.9000   01/29/24     668,711  
  256,000     Capital One Financial Corporation       2.6000   05/11/23     254,555  
  713,000     Penske Truck Leasing Company Lp / PTL Finance(b)       4.2500   01/17/23     714,798  
  296,000     Penske Truck Leasing Company Lp / PTL Finance(b)       3.9000   02/01/24     295,226  
  29,000     Synchrony Financial       4.3750   03/19/24     28,959  
        TRANSPORTATION & LOGISTICS — 3.3%                    
  1,020,000     JB Hunt Transport Services, Inc.       3.3000   08/15/22     1,020,106  
  175,000     Ryder System, Inc.       2.5000   09/01/22     174,945  
  20,000     Ryder System, Inc.       3.4000   03/01/23     19,987  
  441,000     Ryder System, Inc.       3.6500   03/18/24     440,210  
        TOTAL CORPORATE BONDS (Cost $36,756,269)                 36,491,841  
        MUNICIPAL BONDS — 15.8%                    
        AIRPORTS — 1.3%                    
  275,000     City of Houston TX Airport System Revenue       1.0540   07/01/23     269,337  
  350,000     Port of Seattle WA       2.8360   05/01/24     346,611  
        APPROPRIATION — 1.1%                    
  575,000     Virginia College Building Authority       2.6600   02/01/23     573,646  
        CITY — 0.1%                    
  60,000     City of Waterbury CT       4.1910   12/01/22     60,275  


See accompanying notes to financial statements.



SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
July 31, 2022


Principal         Coupon Rate          
Amount ($)         (%)   Maturity   Fair Value  
        MUNICIPAL BONDS — 15.8% (Continued)                
        COMBINED UTILITIES — 1.6%                
  480,000     City of Springfield MO Public Utility Revenue   0.4500   11/01/22   $ 477,704  
  370,000     Long Island Power Authority   0.3590   03/01/23     363,937  
        COUNTY — 0.8%                
  400,000     County of Westchester NY   2.5000   07/01/23     397,695  
        ECON & INDUST DEVELOPMENT — 0.6%                
  100,000     New York State Energy Research & Development   1.6240   10/01/22     99,715  
  205,000     New York State Energy Research & Development   4.3360   04/01/24     204,995  
        ELECTRICITY AND PUBLIC POWER — 0.9%                
  150,000     Municipal Electric Authority of Georgia   0.6130   01/01/23     148,161  
  290,000     South Carolina Public Service Authority   2.9060   12/01/22     289,606  
        GOVERNMENT LEASE — 1.4%                
  625,000     City of Tempe AZ   0.3680   07/01/23     609,357  
  100,000     County of Pima AZ   0.4760   12/01/22     99,214  
        HIGHER EDUCATION — 0.4%                
  185,000     North Carolina Capital Facilities Finance Agency   0.8800   10/01/22     184,225  
        HOSPITALS — 0.5%                
  235,000     University of Wisconsin Hospitals & Clinics   0.5900   04/01/23     230,786  
        INCOME TAX FINANCING — 1.2%                
  110,000     New York City Transitional Finance Authority   3.2500   08/01/23     109,862  
  520,000     New York City Transitional Finance Authority   2.5700   11/01/23     514,894  
        SALES TAX — 1.4%                
  275,000     Sales Tax Securitization Corporation   0.7900   01/01/23     272,316  
  420,000     State of Illinois Sales Tax Revenue   0.6130   06/15/23     408,385  


See accompanying notes to financial statements.



SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
July 31, 2022


Principal             Coupon Rate          
Amount ($)             (%)   Maturity   Fair Value  
        MUNICIPAL BONDS — 15.8% (Continued)                    
        SINGLE-FAMILY HOUSING — 2.3%                    
  175,000     Michigan State Housing Development Authority       0.4360   06/01/23   $ 170,874  
  1,030,000     New Jersey Economic Development Authority(c)       0.0000   02/15/23     1,012,522  
        STATE — 0.8%                    
  155,000     Port Authority of New York & New Jersey       1.0860   07/01/23     152,183  
  260,000     State of New York       0.5300   03/15/24     249,219  
        TOLL ROADS, BRIDGES & TUNNELS — 0.5%                    
  80,000     New Jersey Turnpike Authority       3.0860   01/01/24     79,618  
  195,000     Rhode Island Turnpike & Bridge Authority       2.1600   12/01/22     194,418  
        WATER AND SEWER — 0.9%                    
  500,000     Missouri State Environmental Improvement & Energy       0.4530   01/01/23     495,604  
        TOTAL MUNICIPAL BONDS (Cost $8,104,583)                 8,015,159  
Principal             Coupon Rate            
Amount ($)         Spread   (%)   Maturity   Fair Value  
        U.S. GOVERNMENT & AGENCIES — 7.1%                    
        U.S. TREASURY BILLS — 2.0%                    
  1,000,000     United States Cash Management Bill(c)       0.000   08/09/22     999,553  
        U.S. TREASURY NOTES — 5.1%                    
  500,000     United States Treasury Floating Rate Note B(a)   USBMMY3M - 0.015%   2.5210   01/31/24     501,261  
  1,180,000     United States Treasury Note       0.1250   01/31/23     1,163,988  


See accompanying notes to financial statements.



SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
July 31, 2022


Principal         Coupon Rate          
Amount ($)         (%)   Maturity   Fair Value  
        U.S. GOVERNMENT & AGENCIES — 7.1% (Continued)                
        U.S. TREASURY NOTES — 5.1% (Continued)                
  950,000     United States Treasury Note   0.1250   02/28/23   $ 934,775  
        TOTAL U.S. GOVERNMENT & AGENCIES (Cost $3,629,491)             3,599,577  
        TOTAL INVESTMENTS - 95.1% (Cost $48,490,343)           $ 48,106,577  
        OTHER ASSETS IN EXCESS OF LIABILITIES - 4.9%             2,502,049  
        NET ASSETS - 100.0%           $ 50,608,626  


PLC - Public Limited Company
SOFRRATE United States SOFR Secured Overnight Financing Rate
USBMMY3M US Treasury 3 Month Bill Money Market Yield


(a) Variable or floating rate security, the interest rate of which adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets.
(b) Security exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. The security may be resold in transactions exempt from registration, normally to qualified institutional buyers.  As of July 31, 2022 the total market value of 144A securities is $2,032,972 or 4.0% of net assets.
(c) Zero coupon bond.

See accompanying notes to financial statements.



Arrow Reserve Capital Management ETF
July 31, 2022


Investment securities:        
At cost   $ 48,490,343  
At value   $ 48,106,577  
Cash     2,493,512  
Interest receivable     287,164  
Prepaid expenses and other assets     4,408  
TOTAL ASSETS     50,891,661  
Payable for investments purchased     205,000  
Distributions payable     35,496  
Payable to related parties     14,600  
Investment advisory fees payable     7,907  
Accrued expenses and other liabilities     20,032  
NET ASSETS   $ 50,608,626  
Net Assets Consist Of:        
Paid in capital   $ 50,991,210  
Accumulated deficit     (382,584 )
NET ASSETS   $ 50,608,626  
Net Asset Value Per Share:        
Net Assets   $ 50,608,626  
Shares of beneficial interest outstanding ($0 par value, unlimited shares authorized)     510,000  
Net asset value (Net Assets ÷ Shares Outstanding)   $ 99.23  


See accompanying notes to financial statements.



Arrow Reserve Capital Management ETF
For the Six Months Ended July 31, 2022


Interest   $ 208,511  
Investment advisory fees     75,335  
Administrative services fees     38,082  
Legal fees     13,909  
Trustees fees and expenses     7,964  
Audit fees     6,878  
Transfer agent fees     4,345  
Custodian fees     4,344  
Printing and postage expenses     2,200  
Professional fees     2,100  
Listing fees     2,000  
Insurance expense     396  
Other expenses     172  
TOTAL EXPENSES     157,725  
Less: Fees waived/expenses reimbursed by the Advisor     (32,169 )
NET EXPENSES     125,556  
Net realized loss on investments     (12,927 )
Net change in unrealized depreciation on investments     (221,553 )


See accompanying notes to financial statements.



Arrow Reserve Capital Management ETF


    For Six Months Ended        
    July 31, 2022     For Year Ended  
    (Unaudited)     January 31, 2022  
FROM OPERATIONS                
Net investment income (loss)   $ 82,955     $ (17,858 )
Net realized gain (loss) on investments     (12,927 )     18,968  
Net change in unrealized depreciation on investments     (221,553 )     (228,653 )
Net decrease in net assets resulting from operations     (151,525 )     (227,543 )
From return of capital           (2,915 )
From distributable earnings     (65,841 )     (5,245 )
Net decrease in net assets resulting from distributions to shareholders     (65,841 )     (8,160 )
Proceeds from shares sold           5,002,537  
Cost of shares redeemed           (4,995,594 )
Transaction fees (Note 5)           300  
Net increase in net assets resulting from shares of beneficial interest           7,243  
TOTAL DECREASE IN NET ASSETS     (217,366 )     (228,460 )
NET ASSETS                
Beginning of Period     50,825,992       51,054,452  
End of Period   $ 50,608,626     $ 50,825,992  
SHARE ACTIVITY                
Shares Sold           50,000  
Shares Redeemed           (50,000 )
Net increase in shares of beneficial interest outstanding            


See accompanying notes to financial statements.



Arrow Reserve Capital Management ETF


Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout Each Period


    For Six Months Ended                                
    July 31, 2022     For the Year Ended     For the Year Ended     For the Year Ended     For the Year Ended     For the Period Ended  
    (Unaudited)     January 31, 2022     January 31, 2021     January 31, 2020     January 31, 2019     January 31, 2018 (1)(8)  
Net asset value, beginning of period   $ 99.66     $ 100.11     $ 100.06     $ 100.17     $ 100.19     $ 100.00  
Activity from investment operations:                                                
Net investment income (loss) (2)     0.16       (0.03 )     0.62       2.16       2.00       0.80  
Net realized and unrealized gain (loss) on investments     (0.46 )     (0.40 )     0.14       0.18       (0.12 )     0.09  
Total from investment operations     (0.30 )     (0.43 )     0.76       2.34       1.88       0.89  
Less distributions from:                                                
Net investment income     (0.13 )     (0.01 )     (0.64 )     (2.41 )     (1.90 )     (0.69 )
Net realized gains                 (0.06 )                 (0.01 )
Return of capital           (0.01 )     (0.01 )     (0.04 )            
Total distributions     (0.13 )     (0.02 )     (0.71 )     (2.45 )     (1.90 )     (0.70 )
Net asset value, end of period   $ 99.23     $ 99.66     $ 100.11     $ 100.06     $ 100.17     $ 100.19  
Total return (4)(6)     (0.30 )%     (0.42 )%     0.76 %     2.37 %     1.90 %     0.89 %
Net assets, at end of period (000s)   $ 50,609     $ 50,826     $ 51,054     $ 56,034     $ 56,095     $ 76,145  
Ratio of gross expenses to average net assets (3)(7)     0.63 %     0.59 %     0.55 %     0.54 %     0.50 %     0.52 %
Ratio of net expenses to average net assets (3)     0.50 %     0.50 %     0.43 %     0.42 %     0.42 %     0.42 %
Ratio of net investment income (loss) to average net assets (3)     0.33 %     (0.03 )%     0.62 %     2.16 %     1.99 %     0.94 %
Portfolio Turnover Rate (4)(5)     24 %     92 %     118 %     24 %     33 %     66 %


(1) The Arrow Reserve Capital Management ETF commenced operations on March 30, 2017.
(2) Per share amounts calculated using the average shares method, which more appropriately presents the per share data for the period.
(3) Annualized for periods less than one year.
(4) Not annualized for periods less than one year.
(5) Portfolio turnover rate excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.
(6) Total return is calculated assuming a purchase of shares at net asset value on the first day of the period and a sale at net asset value on the last day of the period. Distributions are assumed, for the purpose of this calculation, to be reinvested at the ex-dividend date net asset value per share on their respective payment dates. Had Arrow Investment Advisors, LLC not waived fees or reimbursed a portion of the expenses, total returns would have been lower.
(7) Represents the ratio of expenses to average net assets absent fee waivers and /or expense reimbursements by Arrow Investment Advisors, LLC.
(8) Effective November 1, 2017, the Fund had a 1:5 reverse stock split. Per share amounts for the period have been adjusted to give effect to the 1:5 reverse stock split.

See accompanying notes to financial statements.



Arrow Reserve Capital Management ETF
July 31, 2022




The Arrow Reserve Capital Management ETF (the “Fund”) is a diversified series of Arrow Investments Trust (“Trust”), a statutory trust organized under the laws of the State of Delaware on August 2, 2011, and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Fund’s investment objective is to seek to preserve capital while maximizing current income. The investment objective is non-fundamental. The Fund commenced operations on March 30, 2017.




The following is a summary of significant accounting policies followed by the Fund in preparation of its financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 “Financial Services-Investment Companies” including FASB Accounting Standards Update (“ASU”) 2013-08.


Securities valuation – Securities listed on an exchange are valued at the last reported sale price at the close of the regular trading session of the exchange on the business day the value is being determined, or in the case of securities listed on NASDAQ at the NASDAQ Official Closing Price (“NOCP”). In the absence of a sale, such securities shall be valued at the last bid price on the day of valuation. Debt securities (other than short-term obligations) are valued each day by an independent pricing service approved by the Trust’s Board of Trustees (the “Board”) using methods that include consideration of current market quotations from a major market maker in the securities and consideration of yields or prices of securities of comparable quality, coupon, maturity and type. Investments valued in currencies other than the U.S. dollar are converted to U.S. dollars using exchange rates obtained from pricing services. If market quotations are not readily available or if Arrow Investment Advisors, LLC (the “Advisor”) believes the market quotations are not reflective of market value, securities will be valued at their fair value as determined in good faith by the Advisor and in accordance with the Trust’s Portfolio Securities Valuation Procedures (the “Procedures”), subject to review by the Board. The Board will review the fair value method in use for securities requiring a fair market value determination and supporting documentation from the Advisor at least quarterly for consistency with the Procedures. The Procedures consider, among others, the following factors to determine a security’s fair value: the nature and pricing history (if any) of the security; whether any dealer quotations for the security are available; and possible valuation methodologies that could be used to determine the fair value of the security. Fair value may also be used by the Board if extraordinary events occur after the close of the relevant world market but prior to the NYSE close. Short-term debt obligations having 60 days or less remaining until maturity, at the time of purchase, may be valued at amortized cost.



Arrow Reserve Capital Management ETF
July 31, 2022


The Fund utilizes various methods to measure the fair value of all of its investments on a recurring basis. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of input are:


Level 1 – Unadjusted quoted prices in active markets for identical assets and liabilities that the Fund has the ability to access.


Level 2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument in an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.


Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.


The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.


The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.


The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following table summarizes the inputs used as of July 31, 2022 for the Fund’s assets measured at fair value:


Assets *   Level 1     Level 2     Level 3     Total  
Corporate Bonds   $     $ 36,491,841     $     $ 36,491,841  
Municipal Bonds           8,015,159             8,015,159  
U.S. Treasury Bills           999,553             999,553  
U.S. Treasury Notes           2,600,024             2,600,024  
Total   $     $ 48,106,577     $     $ 48,106,577  


The Fund did not hold any Level 3 securities during the period.


* See Schedule of Investments for classification.



Arrow Reserve Capital Management ETF
July 31, 2022


Security transactions and related income – Security transactions are accounted for on the trade date. Interest income is recognized on an accrual basis. Discounts are accreted and premiums are amortized on securities purchased over the lives of the respective securities or until call date. Dividend income is recorded on the ex-dividend date. Realized gains or losses from sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds.


Dividends and distributions to shareholders – Dividends from net investment income, if any, are declared and paid monthly. Distributable net realized capital gains, if any, are declared and distributed annually. Dividends from net investment income and distributions from net realized gains are determined in accordance with federal income tax regulations, which may differ from GAAP. These “book/tax” differences are considered either temporary (e.g., deferred losses) or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment; temporary differences do not require reclassification. Dividends and distributions to shareholders are recorded on the ex-dividend date.


Federal Income Taxes – The Fund intends to continue to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income to its shareholders. Therefore, no provision for federal income tax is required. The Fund recognizes the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Management has analyzed the Fund’s tax positions and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years ended January 31, 2019 to January 31, 2021, or expected to be taken in the Fund’s January 31, 2022 year-end tax return. The Fund identifies its major tax jurisdictions as U.S. federal and foreign jurisdictions where the Fund makes significant investments. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.


Expenses – Expenses of the Trust that are directly identifiable to a specific fund are charged to that fund. Expenses that are not readily identifiable to a specific fund, are allocated in such a manner as deemed equitable (as determined by the Board), taking into consideration the nature and type of expenses and the relative sizes of the funds in the Trust.


Indemnification – The Trust indemnifies its officers and Trustees for certain liabilities that may arise from the performance of their duties to the Trust. Additionally, in the normal course of business, the Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnities. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, based on experience, the risk of loss due to these warranties and indemnities appears to be remote.


Time Deposits – Time deposits are issued by a depository institution in exchange for the deposit of funds. The issuer agrees to pay the amount deposited plus interest to the depositor on the date specified with respect to the deposit. Time deposits do not trade in the secondary market prior to



Arrow Reserve Capital Management ETF
July 31, 2022


maturity. However, some time deposits may be redeemable prior to maturity and may be subject to withdrawal penalties.


Market Risk – The net asset value of the Fund will fluctuate based on changes in the value of the individual securities and ETFs in which the Fund invests. The increasing interconnectivity between global economies and financial markets increases the likelihood that events or conditions in one region or financial market may adversely impact issuers in a different country, region or financial market. Securities in the Fund’s portfolio may underperform due to inflation (or expectations for inflation), interest rates, global demand for particular products or resources, natural disasters, climate change or climate related events, pandemics, epidemics, terrorism, regulatory events and governmental or quasi-governmental actions. The occurrence of global events similar to those in recent years may result in market volatility and may have long term effects on both the U.S. and global financial markets. The current novel coronavirus (COVID-19) global pandemic and the aggressive responses taken by many governments, including closing borders, restricting international and domestic travel, and the imposition of prolonged quarantines or similar restrictions, as well as the forced or voluntary closure of, or operational changes to, many retail and other businesses, has had negative impacts, and in many cases severe negative impacts, on markets worldwide. It is not known how long such impacts, or any future impacts of other significant events described above, will or would last, but there could be a prolonged period of global economic slowdown, which may impact your Fund investment.




For the six months ended July 31, 2022, cost of purchases and proceeds from sales of portfolio securities (excluding in-kind transactions and short-term investments), amounted to $8,996,823 and $11,144,327, respectively.


For the six months ended July 31, 2022, cost of purchases and proceeds from sales of portfolio securities for in-kind transactions amounted to $0 and $0, respectively.




The business activities of the Fund are overseen by the Board, which is responsible for the overall management of the Fund. The Advisor serves as the Fund’s investment advisor pursuant to an investment advisory agreement with the Trust on behalf of the Fund (the “Advisory Agreement”). The Advisor has engaged Halyard Asset Management LLC as the sub-advisor (the “Sub-Advisor”) to the Fund. The Trust has entered into a Global Custody Agreement with Brown Brothers Harriman & Co. to serve as custodian and to act as transfer and shareholder services agent.


The Trust has also entered into an ETF Distribution Agreement (the “Distribution Agreement”) with Northern Lights Distributors, LLC (the “Distributor”) to serve as the distributor for the Fund. Archer Distributors, LLC (“Archer”), an affiliate of the Advisor, is also a party to the Distribution Agreement



Arrow Reserve Capital Management ETF
July 31, 2022


and provides marketing services to the Fund, including responsibility for all the Fund’s marketing and advertising materials.


Pursuant to the Advisory Agreement, the Advisor, under the oversight of the Board, directs the daily operations of the Fund and supervises the performance of administrative and professional services provided by others. As compensation for its services and the related expenses borne by the Advisor, the Fund pays the Advisor a fee, computed and accrued daily and paid monthly, at an annual rate of 0.30% of the Fund’s average daily net assets. The Sub-Advisor is paid by the Advisor, not the Fund. For the six months July 31, 2022, the Fund incurred $155,332 in advisory fees. For the six months ended July 31, 2022, the Sub-Advisor earned $25,111 in sub-advisory fees.


Pursuant to a written contract (the “Waiver Agreement”), the Advisor has agreed, at least until May 31, 2023 to waive a portion of its advisory fee and has agreed to reimburse the Fund for other expenses to the extent necessary so that total expenses incurred (exclusive of any front-end or contingent deferred sales loads, taxes, leverage interest, brokerage commissions, expenses incurred in connection with any merger or reorganization, dividend expense on securities sold short, underlying fund fees and expenses, foreign custody transaction costs and foreign account set up fees and extraordinary expenses such as litigation expenses) will not exceed 0.50%, herein referred to as the “Expense Limitation.”


If the Advisor waives any fee or reimburses any expenses pursuant to the Waiver Agreement, and the Fund’s operating expenses are subsequently lower than its applicable Expense Limitation, the Advisor, on a rolling three-year period (within three years after the fees have been waived or reimbursed), shall be entitled to reimbursement by the Fund provided that such reimbursement does not cause the Fund’s operating expense to exceed the lesser of the Expense Limitation in place at the time of waiver or recapture. If the Fund’s operating expenses subsequently exceed the applicable Expense Limitation, the reimbursements for the Fund shall be suspended. For the six months ended July 31, 2022, the Advisor waived fees in the amount of $32,169 pursuant to the Waiver Agreement. The following amounts are subject to recapture by the Advisor through the following date:


  1/31/2023     1/31/2024     1/31/2025  
  $ 71,845     $ 59,195     $ 49,061  


The Advisor may seek reimbursement only for expenses that were waived or paid after the effective date of the Waiver Agreement (or any similar agreement). The Board may terminate this expense reimbursement arrangement at any time.


The Trust, with respect to the Fund, has adopted a distribution and service plan (“Plan”) pursuant to Rule 12b-1 under the 1940 Act. Under the Plan, the Fund is authorized to pay distribution fees to the Distributor and other firms that provide distribution and shareholder services (“Service Providers”). If a Service Provider provides these services, the Fund may pay fees at an annual rate not to exceed 0.25% of average daily net assets, pursuant to Rule 12b-1 under the 1940 Act.



Arrow Reserve Capital Management ETF
July 31, 2022


No distribution or service fees are currently paid by the Fund and there are no current plans to impose these fees. In the event Rule 12b-1 fees were charged, over time they would increase the cost of an investment in the Fund.


Ultimus Fund Solutions, LLC (“UFS”) – UFS, an affiliate of the Distributor, provides administration and fund accounting services to the Trust. Pursuant to separate servicing agreements with UFS, the Fund pays UFS customary fees for providing administration and fund accounting services to the Fund. Certain officers of the Trust are also officers of UFS, and are not paid any fees directly by the Trust for serving in such capacities.


Blu Giant, LLC (“Blu Giant”) Blu Giant, an affiliate of UFS and the Distributor, provides EDGAR conversion and filing services as well as print management services for the Fund on an ad-hoc basis. For the provision of these services, Blu Giant receives customary fees from the Fund.




Shares are not individually redeemable and may be redeemed by the Fund at NAV only in large blocks known as “Creation Units.” Shares are created and redeemed by the Fund only in Creation Unit size aggregations of 50,000 shares. Only Authorized Participants are permitted to purchase or redeem Creation Units from the Fund. An Authorized Participant is either (i) a broker-dealer or other participant in the clearing process through the Continuous Net Settlement System of the National Securities Clearing Corporation or (ii) a DTC participant and, in each case, must have executed a participant Agreement with the Distributor. Such transactions are generally permitted on an in-kind basis, with a balancing cash component to equate the transaction to the NAV per share of the Fund on the transaction date. Cash may be substituted equivalent to the value of certain securities generally when they are not available in sufficient quantity for delivery, not eligible for trading by the Authorized Participant or as a result of other market circumstances. In addition, the Fund may impose transaction fees on purchases and redemptions of Fund shares to cover the custodial and other costs incurred by the Fund in effecting trades. A fixed fee payable to the Custodian may be imposed on each creation and redemption transaction regardless of the number of Creation Units involved in the transaction (“Fixed Fee”). Transaction Fees may be used to cover the custodial and other costs incurred by the Fund or disclosed as capital shares for the Fund in the Statements of Changes in Net Assets.


The Transaction Fees for the Fund are listed in the table below:


Fixed Fee



Arrow Reserve Capital Management ETF
July 31, 2022




The tax character of fund distributions paid for the years ended January 31, 2022 and January 31, 2021 was as follows:


    Fiscal Year Ended     Fiscal Year Ended  
    January 31, 2022     January 31, 2021  
Ordinary Income   $     $ 355,581  
Long-Term Capital Gain     5,245       482  
Return of Capital     2,915       4,507  
    $ 8,160     $ 360,570  


As of January 31, 2022, the components of accumulated earnings/(deficit) on a tax basis were as follows:


Undistributed     Undistributed     Post October Loss     Capital Loss     Other     Unrealized     Total  
Ordinary     Long-Term     and     Carry     Book/Tax     Appreciation/     Accumulated  
Income     Gains     Late Year Loss     Forwards     Differences     (Depreciation)     Earnings/(Deficits)  
$     $     $ (2,826 )   $     $     $ (162,392 )   $ (165,218 )


The difference between book basis and tax basis undistributed net investment income/(loss), accumulated net realized gain/(loss), and unrealized appreciation/(depreciation) from investments is primarily attributable to the tax deferral of losses on wash sales.


Late year losses incurred after December 31 within the fiscal year are deemed to arise on the first business day of the following fiscal year for tax purposes. The Fund incurred and elected to defer such late year losses of $2,826.


Permanent book and tax differences, primarily attributable to net operating losses and distributions in excess, resulted in reclassifications for the Fund for the fiscal year ended January 31, 2022 as follows:


In     Accumulated  
Capital     Earnings  
$ (1,130 )   $ 1,130  




      Gross Unrealized     Gross Unrealized     Net Unrealized  
Tax Cost     Appreciation     Depreciation     Depreciation  
$ 48,490,343     $ 9,932     $ (393,698 )   $ (383,766 )



Arrow Reserve Capital Management ETF
July 31, 2022




The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of the Fund creates presumption of the control of the Fund, under Section 2(a)(9) of the 1940 Act. As of July 31, 2022, Arrow Managed Futures Strategy Fund held 83.2% of the voting securities of the Fund.




In March 2020, FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (’‘ASU 2020-04’’). The amendments in ASU 2020-04 provide optional temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of LIBOR and other interbank-offered based reference rates as of the end of 2021. ASU 2020-04 is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management is currently evaluating the impact, if any of applying this ASU.




Subsequent events after the date of the Statement of Assets and Liabilities have been evaluated through the date the financial statements were issued.


Management has determined that no events or transactions occurred requiring adjustment or disclosure in the financial statements.


Distributions: The Board declared the following distributions after July 31, 2022:


Distribution Per Share   Ex Date   Record Date   Payable Date
$0.0929   8/31/2022   9/1/2022   9/7/2022



Arrow Reserve Capital Management ETF
July 31, 2022


As a shareholder of the Fund, you incur ongoing costs, including management fees and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other exchange traded funds. This example does not take into account transaction costs, such as brokerage commissions that you may pay on your purchases and sales of shares of the Fund.


The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from February 1, 2022 through July 31, 2022.


Actual Expenses


The “Actual” line in the table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.


Hypothetical Example for Comparison Purposes


The “Hypothetical” line in the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.


Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.


    Beginning   Ending   Expenses Paid During   Expenses Paid
    Account Value   Account Value   Period*   During Period**
    2/1/2022   7/31/2022   2/1/2022 - 7/31/2022   2/1/2022 - 7/31/2022
Actual   $1,000.00   $997.00   $2.48   0.50%
(5% return before expenses)   $1,000.00   $1,022.32   $2.51   0.50%


* “Actual” expense information for the Fund is for the period from February 1, 2022 to July 31, 2022. Actual expenses are equal to the Fund’s annualized net expense ratio multiplied by 181/365 (to reflect the period from February 1, 2022 to July 31, 2022). “Hypothetical” expense information for the Fund is presented on the basis of the full one-half year period to enable comparison to other funds. It is based on assuming the same net expense ratio and average account value over the period, but it is multiplied by 181/365 (to reflect the full half-year period).


** Annualized.



Arrow Reserve Capital Management ETF
Additional Information (Unaudited)
July 31, 2022




The Fund has adopted and implemented a written liquidity risk management program as required by Rule 22e-4 (the “Liquidity Rule”) under the Investment Company Act. The program is reasonably designed to assess and manage the Fund’s liquidity risk, taking into consideration, among other factors, the Fund’s investment strategy and the liquidity of its portfolio investments during normal and reasonably foreseeable stressed conditions; its short and long-term cash flow projections; and its cash holdings and access to other funding sources.


During the six months ended July 31, 2022, the Trust’s Liquidity Risk Management Program Committee (the “Committee”) reviewed the Fund’s investments and determined that the Fund held adequate levels of cash and highly liquid investments to meet shareholder redemption activities in accordance with applicable requirements. Accordingly, the Committee concluded that (i) the Fund’s liquidity risk management program is reasonably designed to prevent violations of the Liquidity Rule and (ii) the Fund’s liquidity risk management program has been effectively implemented.





Arrow Investments Trust


Rev. November 2011




Why? Financial companies choose how they share your personal information.  Federal law gives consumers the right to limit some, but not all sharing.  Federal law also requires us to tell you how we collect, share, and protect your personal information.  Please read this notice carefully to understand what we do.



The types of personal information we collect and share depends on the product or service that you have with us. This information can include:


●         Social Security number and wire transfer instructions


         account transactions and transaction history


         investment experience and purchase history


When you are no longer our customer, we continue to share your information as described in this notice.


How? All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Arrow Investments Trust chooses to share; and whether you can limit this sharing.


Reasons we can share your
personal information:
Does Arrow Investments
Trust share information?
Can you limit this
For our everyday business purposes - such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus. YES NO
For our marketing purposes - to offer our products and services to you. NO We don’t share
For joint marketing with other financial companies. NO We don’t share
For our affiliates’ everyday business purposes - information about your transactions and records. NO We don’t share
For our affiliates’ everyday business purposes - information about your credit worthiness. NO We don’t share
For nonaffiliates to market to you NO We don’t share


QUESTIONS?   Call 1-877-277-6933





Arrow Investments Trust


Page 2  


What we do:


How does Arrow Investments Trust protect my personal information?

To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings.


Our service providers are held accountable for adhering to strict policies and procedures to prevent any misuse of your nonpublic personal information.


How does Arrow Investments Trust collect my personal information?

We collect your personal information, for example, when you

●     open an account or deposit money


●     direct us to buy securities or direct us to sell your securities


●     seek advice about your investments


We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.


Why can’t I limit all sharing?

Federal law gives you the right to limit only:

●     sharing for affiliates’ everyday business purposes – information about your creditworthiness.


●     affiliates from using your information to market to you.


●     sharing for nonaffiliates to market to you.


State laws and individual companies may give you additional rights to limit sharing.



Companies related by common ownership or control. They can be financial and nonfinancial companies.


●     Arrow Investments Trust does not share with our affiliates.


Companies not related by common ownership or control. They can be financial and nonfinancial companies.


●     Arrow Investments Trust does not share with nonaffiliates so they can market to you.

Joint marketing

A formal agreement between nonaffiliated financial companies that together market financial products or services to you.


●     Arrow Investments Trust does not jointly market.





Information regarding how the Fund voted proxies relating to portfolio securities for the most recent twelve-month period ended June 30 as well as a description of the policies and procedures that the Fund uses to determine how to vote proxies is available without charge, upon request, by calling 1-877-277-6933 or by referring to the Securities and Exchange Commission’s (“SEC”) website at http://www.sec.gov.




The Fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, within sixty days after the end of the period. Form N-PORT reports are available at the SEC’s website at www.sec.gov.




















Arrow Investment Advisors, LLC
6100 Chevy Chase Drive
Suite 100
Laurel, MD 20707
Halyard Asset Management, LLC
707 Westchester Avenue
White Plains, NY 10604
Ultimus Fund Solutions, LLC
225 Pictoria Drive, Suite 450
Cincinnati, OH 45246