U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-17F-2
CERTIFICATE OF ACCOUNTING OF SECURITIES AND SIMILAR INVESTMENTS IN THE CUSTODY
OF MANAGEMENT INVESTMENT COMPANIES
Pursuant to Rule 17f-2 [17 CFR 270, 17f-2]
1. Investment Company Act File Number: Date examination completed:
811-7041 August 31, 1997
2. State Identification Number:
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AL None AK None AZ None AR None CA None CO None
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CT None DE None DC None FL None GA None HI None
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ID None IL None IN None IA None KS None KY None
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LA None ME None MD None MA None MI None MN None
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MS None MO None MT None NE None NV None NH None
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NJ None NM None NY None NC None ND None OH None
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OK None OR None PA None RI None SC None SD None
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TN None TX None UT None VT None VA None WA None
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WV None WI None WY None PUERTO RICO None
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Other (specify):
3. Exact number of investment company as specified in registration statement:
Arrow Funds
4. Address of principal executive office: (number, street, city, state, zip
code) Federated Investors Tower, Pittsburgh, Pennsylvania 15222-3779
INSTRUCTIONS
This Form must be completed by the investment companies that have custody of
securities or similar investments.
Investment Company
1. All items must be completed by the investment company.
2. Give this Form to the independent public accountant who, in compliance with
Rule 17f-2 under the Act and applicable state law, examines securities and
similar investments in the custody of the investment company.
Accountant
3. Submit this Form to the Securities and Exchange Commission and appropriate
state securities administrators when filing the certificate of accounting
required by Rule 17f-2 under the Act and applicable state law. File the original
and one copy with the Securities and Exchange Commission's principal office in
Washington, D.C., one copy with the regional office for the region in which the
investment company's principal business operations are conducted, and one copy
with the appropriate state administrator(s), if applicable.
THIS FORM MUST BE GIVEN TO YOUR INDEPENDENT PUBLIC ACCOUNTANT
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MANAGEMENT ASSERTION REGARDING COMPLIANCE WITH
CERTAIN PROVISIONS OF THE INVESTMENT COMPANY ACT OF 1940
We, as members of management of Arrow Funds (the Funds) are responsible for
complying with the requirements of subsections (b) and (c) of Rule 17f-2,
"Custody of Investments by Registered Management Investment Companies", of the
Investment Company Act of 1940. We are also responsible for establishing and
maintaining an effective internal control structure over compliance with Rule
17f-2 requirements. We have performed an evaluation of the Funds' compliance
with the requirements of subsections (b) and (c) of Rule 17f-2 as of August 31,
1997.
Based on this evaluation, we assert that the Funds were in compliance with the
requirements of subsections (b) and (c) of Rule 17f-2 of the Investment Company
Act of 1940 as of August 31, 1997 and for the period from July 1, 1997 through
August 31, 1997, with respect to securities reflected in the investments
accounts of the Funds.
Very truly yours,
Albert R. Powell
Vice President and Manager
Mercantile Bank
Charles L. Davis, Jr.
Assistant Treasurer
Arrow Funds
