The Arbitrage Fund (ARBFX) was ranked by Morningstar in the top 22% among US OE Market Neutral funds for the ten-year period ending 12/31/2013. Morningstar calculates a Morningstar Ranking based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. ARBFX was ranked against 132 US OE Market Neutral funds over a one-year period, 52 over a five-year period, and 24 over a ten-year period. With respect to these periods, ARBFX received a category percentage rank of 68%, 28%, and 22%, respectively.

Annualized performance through 12/31/2013 for ARBFX: 0.85% (one year); 3.36% (five years); 2.92% (ten years).

The performance data quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original costs. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling (800) 295-4485.  The Fund assesses a 2% redemption fee on shares redeemed within 30 days of purchase.  Contractual fee waivers are currently in effect.  Without such waivers, performance numbers may have been reduced.  The Total Annual Operating expense for ARBFX is 1.99%.  Total Annual Fund Operating Expenses Excluding the Effect of Dividend and Interest Expense on Short Positions for ARBFX is 1.45%.

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

RISKS: In addition to the normal risks associated with investing, the Fund may realize losses if the proposed reorganizations in which the Fund invests are renegotiated or terminated. The Fund uses investment techniques that are different from the risks ordinarily associated with equity investments. Such techniques and strategies include merger arbitrage risks, high portfolio turnover risks, options risks, borrowing risks, short sale risks, and foreign investment risks, which may increase volatility and may increase costs and lower performance.

The S&P 500 is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy. One cannot invest directly in an index.

Distributed by ALPS Distributors Inc., which is not affiliated with the Advisor or any other affiliate. [ARB000454 2014-05-01]