Arrow High Yield Fund closes to new investment, June 30, 2010 - Advised by
Barry Allan of Marret Asset Management Inc.

Arrow High Yield Fund, advised by Barry Allan of Marret Asset Management Inc., which targets a high level of income while maintaining modest volatility levels,is closing to new investors on June 30, 2010.

TORONTO, June 18 /CNW/ - Arrow Hedge Partners Inc. has announced the closing of Arrow High Yield Fund. The Fund, advised by Barry Allan of Marret Asset Management Inc., appeals to accredited investors who are moderately conservative and seek monthly income with low volatility.

"We have determined that it is in the best interest of our investors to close the fund to new investors," says Mark Purdy, Managing Director and Chief Investment Officer of Arrow Hedge Partners Inc. "Over the past two years, the Fund has grown about 40%; within this capacity target, we are confident that we can continue to produce solid risk-adjusted returns."

The Fund is much larger than any of the other retail credit hedge funds in Canada, and the strategy itself is not being closed. Arrow Hedge believes that this is an appropriate size for their managed account to produce the highest returns for clients invested in the Fund.

The investment objective of the Fund is to achieve a high level of income with the potential for capital gains, while maintaining modest volatility. The Fund invests primarily in Canadian high-yield corporate bond issuers and is able to create long positions in the debt of a company and a short position in the equity of a company. "Over the long term, the Fund has outperformed the market," says Barry Allan, Portfolio Manager and CEO of Marret Asset Management Inc. "And at the same time, we've taken a lot less risk and produced far less volatile returns."

"We have entered a period of higher volatility," claims Purdy. He goes on to add, "It is important to invest your capital with proven managers who have protected on the downside and generated positive returns in varying market conditions."

About Arrow Hedge Partners Inc.

Arrow Hedge Partners Inc. is an investment management company that specializes in providing access to high-quality hedge fund managers and multi-manager funds of funds to a wide range of clients, including family offices, institutions, pension funds and high net-worth individuals. Arrow Hedge Partners Inc. is a member of AIMA (Alternative Investment Management Association) and is a substantial co-investor in its own funds. Arrow Hedge Partners Inc. is headquartered in Toronto, Canada, with sales offices in Vancouver, Calgary and Geneva. Arrow Hedge currently manages over CDN$850 million on behalf of high net-worth and institutional investors globally.

Marret Asset Management Inc.

Marret Asset Management Inc. is a credit fixed-income manager. The firm advises on over $4 billion in high yield and investment-grade corporate debt assets for institutional and retail clients. The firm was founded in Toronto by Barry Allan and began operations in late 2001. Marret is 100% employee-owned and is committed to maintaining significant employee ownership in order to assemble the most qualified credit team and to achieve the best possible returns for clients. Marret also sub-advises Arrow Marret Resource Yield Fund for Arrow Hedge Partners Inc.

For further information: Arrow Hedge Partners Inc.: Jim McGovern, [phone] ext 222, [email protected]; Mark Purdy, [phone] ext 223, [email protected]