Market Overview

Water Island Capital Announces Name Change and Lower Fees on Flagship Credit Fund


Water Island Capital, the adviser to the Arbitrage Funds series trust,
is pleased to announce that the Arbitrage Credit Opportunities Fund
("the Fund") will be renamed the Water Island Credit Opportunities Fund
effective immediately. This name change will not impact the Fund's
ticker symbols or CUSIPs. In addition, Water Island Capital will be
reducing the expense caps for the Fund and has implemented breakpoints
in the management fee. None of these changes will alter Water Island's
investment objective, strategy, or personnel, and the adviser believes
they will positively impact the Fund's shareholders, as explained below.

To simplify the Fund's name and to highlight Water Island Capital's
broad investment capabilities, the Arbitrage Credit Opportunities Fund
has been renamed the Water Island Credit Opportunities Fund. Water
Island Capital has been the adviser to the Fund since inception and has
nearly two decades of experience managing alternative strategies in a
mutual fund format. Water Island believes the new name more clearly
delineates the Fund's strategy, while highlighting the firm's
capabilities in catalyst-driven long/short credit investing.

Additionally, Water Island Capital is implementing breakpoints in its
management fee, which will reduce the fee as the Fund grows, and
lowering the level at which the Fund's expenses are capped (the adviser
has agreed to limit the total annual operating expenses of the Fund, so
they do not exceed 0.98% for Class I shares, excluding the impact of
borrowings, dividends and interest on short positions, and other
extraordinary costs1). Water Island believes these changes
will further align its catalyst-driven long/short credit strategy with
the interests of its clients and facilitate Water Island's goal of
providing a compelling credit strategy to investors. Gregg Loprete,
co-portfolio manager of the Fund, said, "These changes are consistent
with our dedication to delivering attractive investment strategies to
our investors at the most effective cost. My team and I remain committed
to managing a portfolio focused on idiosyncratic corporate events that
seeks to deliver absolute returns with low correlation to and lower
volatility than the broader markets."

All changes above are effective as of August 6, 2018. For more
information about the Arbitrage Funds family or the Water Island Credit
Opportunities Fund, visit the
Funds' website
or call (800) 295-4485. For more information about
Water Island Capital, please visit the
Firm's website
or call (800) 560-8210. For press inquiries, please
contact Carolyn Buntic, Water Island Capital's Director of Strategic
Relationships, at
or (212) 584-2367.

The Water Island Credit Opportunities Fund seeks to provide current
income and capital growth.

An investor should consider the Fund's investment objectives, risks,
charges and expenses carefully before investing. The Fund's prospectus
contains this and other important information. You may obtain a copy of
the Fund's prospectus at
or by calling (800) 295-4485. Please read the prospectus carefully
before investing.

1 Total Annual Fund Operating Expenses for ACFIX
(institutional shares), ARCFX (retail shares), ARCCX (C shares), and
AGCAX (A shares) are 1.69%, 1.94%, 2.69%, and 1.94%, respectively. Total
Annual Fund Operating Expenses After Fee Waiver are 1.16%, 1.41%, 2.16%,
and 1.41%, respectively. The Fund has entered into an Expense Waiver and
Reimbursement Agreement with the Fund's investment adviser pursuant to
which the adviser has contractually agreed to limit the total annual
operating expenses of the Fund, not including taxes, interest, dividends
on short positions, brokerage commissions, acquired fund fees and
expenses and other costs incurred in connection with the purchase or
sale of portfolio securities, so that they do not exceed 0.98%, 1.23%,
1.98%, and 1.98% for ACFIX, ARCFX, ARCCX, and AGCAX, respectively. The
agreement remains in effect until September 30, 2020. Without such fee
waivers, performance numbers would have been reduced.

RISKS: The Fund uses investment techniques that incur risks that are
different from the risks ordinarily associated with credit investments.
Such risks include merger arbitrage risks (in that the proposed
reorganizations in which the Fund invests may be renegotiated or
terminated, in which case the Fund may realize losses), high portfolio
turnover risks (which may increase the Fund's brokerage costs, which
would reduce performance), options risks, borrowing risks, short sale
risks (the Fund will suffer a loss if it sells a security short and the
value of the security rises rather than falls), foreign investment risks
(the securities of foreign issuers may be less liquid and more volatile
than securities of comparable U.S. issuers), convertible security risks,
credit default swap risks, interest rate swap risks, credit risks, and
interest rate risks, which may increase volatility and may increase
costs and lower performance.

Distributed by ALPS Distributors Inc., which is not affiliated with the
Advisor or any other affiliate. Carolyn Buntic is a registered
representative of ALPS Distributors, Inc. [ARB001386 2018-09-30]

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