The Arbitrage Funds will be making year-end distribution payments for 2020 with a record date of 12/16/20, an ex-dividend date of 12/17/20, and a payable date of 12/18/20. As of 9/30/20, the estimated distribution amounts are as follows:

	Ordinary Income	Short-Term Capital Gain	Long-Term Capital Gain	Total
Arbitrage	$0.0000	$0.8239	$0.0000	$0.8239
Water Island Event-Driven	$0.0000	$0.0000	$0.0000	$0.0000
Water Island Credit Opportunities	$0.0000	$0.0000	$0.0000	$0.0000
Water Island Long/Short	$0.4470	$0.9696	$0.0000	$1.4166

The figures above are preliminary estimates. Given the nature of the funds' strategies, these estimates are highly likely to change, and may potentially change significantly, before figures are finalized at year-end. These estimates are provided for informational purposes only and should not be relied on as investment or tax advice. Changes in market conditions, portfolio changes and changes in fund shares outstanding could materially affect these estimates. We strongly urge clients to consult with their tax advisers regarding the tax consequences of these distributions. Distribution estimates calculated as of 9/30/20. Estimates are calculated at the fund level — final distribution numbers may vary by share class.

The Arbitrage Funds will be making the following year-end distribution payments for 2019 with a record date of 12/18/19, an ex-dividend/reinvest date of 12/19/19, and a payable date of 12/20/19:

Arbitrage	Institutional (ARBNX)	Retail (ARBFX)	Class A (ARGAX)	Class C (ARBCX)
Ordinary Income	$0.00842	$0.00000	$0.00000	$0.00000
Short-Term Capital Gain	$0.17060	$0.17060	$0.17060	$0.17060
Long-Term Capital Gain	$0.10404	$0.10404	$0.10404	$0.10404
Total	$0.28306	$0.27464	$0.27464	$0.27464
Total % of Record Date NAV	2.08%	2.08%	2.09%	2.19%

Water Island Diversified Event-Driven	Institutional (AEDNX)	Retail (AEDFX)	Class A (AGEAX)	Class C (AEFCX)
Ordinary Income	$0.04488	$0.01911	$0.02084	$0.00000
Short-Term Capital Gain	$0.00000	$0.00000	$0.00000	$0.00000
Long-Term Capital Gain	$0.00000	$0.00000	$0.00000	$0.00000
Total	$0.04488	$0.01911	$0.02084	$0.00000
Total % of Record Date NAV	0.46%	0.20%	0.22%	0.00%

Water Island Credit Opportunities	Institutional (ACFIX)	Retail (ARCFX)	Class A (AGCAX)	Class C (ARCCX)
Ordinary Income	$0.00000	$0.00000	$0.00000	$0.00000
Short-Term Capital Gain	$0.00000	$0.00000	$0.00000	$0.00000
Long-Term Capital Gain	$0.00000	$0.00000	$0.00000	$0.00000
Total	$0.00000	$0.00000	$0.00000	$0.00000
Total % of Record Date NAV	0.00%	0.00%	0.00%	0.00%

Water Island Long/Short	Institutional (ATQIX)	Retail (ATQFX)
Ordinary Income	$0.05861	$0.03383
Short-Term Capital Gain	$0.01690	$0.01690
Long-Term Capital Gain	$0.11954	$0.11954
Total	$0.19505	$0.17027
Total % of Record Date NAV	1.93%	1.68%

The Arbitrage Funds will be making year-end distribution payments for 2019 with a record date of 12/18/19, an ex-dividend date of 12/19/19, and a payable date of 12/20/19. As of 9/30/19, the estimated distribution amounts are as follows:

	Ordinary Income	Short-Term Capital Gain	Long-Term Capital Gain	Total
Arbitrage	$0.0072	$0.1637	$0.0998	$0.2706
Water Island Diversified Event-Driven	$0.0504	$0.0000	$0.0000	$0.0504
Water Island Credit Opportunities	$0.0108	$0.0000	$0.0000	$0.0108
Water Island Long/Short	$0.0516	$0.0143	$0.1010	$0.1669

The figures above are preliminary estimates. Given the nature of the funds' strategies, these estimates are highly likely to change, and may potentially change dramatically, before figures are finalized at year-end. Distribution estimates calculated as of 9/30/19. Estimates are calculated at the fund level — final distribution numbers may vary by share class.

Water Island Capital is pleased to announce Nikhil Miraj has joined our team of skilled professionals as a Senior Investment Risk Manager. Nikhil has a deep background in both risk management and quantitative analysis, with a breadth of experience in portfolio risk decomposition, performance attribution, portfolio optimization, building multi-factor models, building and implementing asset allocation models, and conducting scenario analysis. He arrives from Chilton Investment Company, where he had served as Vice President of Risk and Quantitative Analysis since 2011. Prior to Chilton, Nikhil served as an Equity Analyst at Thomson Horstmann & Bryant, conducting both fundamental and quantitative analysis. He began his career in finance at Standard and Poor’s, serving as both an Associate in Structured Finance and as a Client Quantitative Analyst working with ClariFI. Prior to his career in finance, Nikhil was a successful engineer. Most notably, he worked at General Electric, where he developed processes to manufacture components for NASA and the defense industry, including a new breed of ceramic composite panels that helped resolve issues that helped improve the safety of the Space Shuttle.

Nikhil holds an MBA in Finance and Financial Instruments & Markets from the Leonard N. Stern School of Business at New York University, a Master of Science in Materials Science and Engineering from Virginia Polytechnic Institute and State University, and a Bachelor of Technology in Ceramic Engineering from the Indian Institute of Technology.

Nikhil will partner with our investment team to manage the portfolio and risk optimization processes and to contribute to asset allocation decisions. He will also work closely with our technology and data analytics team, which is responsible for building and maintaining the infrastructure that supports risk aggregation and risk monitoring across our portfolios. We are excited to work with Nikhil and we look forward to the contributions he will make to the future growth of our firm and to our ability to execute on our commitment to our clients. Should you have any questions about Water Island Capital’s approach to risk management, please don’t hesitate to reach out to your client representative.

The Arbitrage Funds will be making the following year-end distribution payments for 2018 with a record date of 12/12/18, an ex-dividend/reinvest date of 12/13/18, and a payable date of 12/14/18:

Arbitrage	Institutional (ARBNX)	Retail (ARBFX)	Class A (ARGAX)	Class C (ARBCX)
Ordinary Income	$0.09841	$0.06303	$0.06867	$0.00000
Short-Term Capital Gain	$0.13372	$0.13372	$0.13372	$0.13372
Long-Term Capital Gain	$0.02136	$0.02136	$0.02136	$0.02136
Total	$0.25349	$0.21811	$0.22375	$0.15508
Total % of Record Date NAV	1.90%	1.69%	1.73%	1.26%

Arbitrage Event-Driven	Institutional (AEDNX)	Retail (AEDFX)	Class A (AGEAX)	Class C (AEFCX)
Ordinary Income	$0.16619	$0.13867	$0.14493	$0.05361
Short-Term Capital Gain	$0.00000	$0.00000	$0.00000	$0.00000
Long-Term Capital Gain	$0.00000	$0.00000	$0.00000	$0.00000
Total	$0.16619	$0.13867	$0.14493	$0.05361
Total % of Record Date NAV	1.74%	1.47%	1.53%	0.58%

Water Island Credit Opportunities	Institutional (ACFIX)	Retail (ARCFX)	Class A (AGCAX)	Class C (ARCCX)
Ordinary Income	$0.00000	$0.00000	$0.00000	$0.00000
Short-Term Capital Gain	$0.00000	$0.00000	$0.00000	$0.00000
Long-Term Capital Gain	$0.00000	$0.00000	$0.00000	$0.00000
Total	$0.00000	$0.00000	$0.00000	$0.00000
Total % of Record Date NAV	0.00%	0.00%	0.00%	0.00%

Water Island Long/Short	Institutional (ATQIX)	Retail (ATQFX)	Class A (ATQAX)	Class C (ATQCX)
Ordinary Income	$0.00000	$0.00000	$0.00000	$0.00000
Short-Term Capital Gain	$0.18401	$0.18401	$0.18401	$0.18401
Long-Term Capital Gain	$0.02002	$0.02002	$0.02002	$0.02002
Total	$0.20403	$0.20403	$0.20403	$0.20403
Total % of Record Date NAV	2.09%	2.09%	2.09%	2.09%