UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-06722
FORWARD FUNDS
(Exact name of registrant as specified in charter)
101 California Street, 16th Floor
San Francisco, CA 94111
(Address of principal executive offices) (Zip code)
J. Alan Reid, Jr., President
Forward Funds
101 California Street, 16th Floor
San Francisco, CA 94111
(Name and address of agent for service)
Registrant’s Telephone Number, including Area Code: (800) 999-6809
Date of fiscal year end: December 31
Date of reporting period: June 30, 2013
Form N-CSR is to be used by management investment companies to file reports with the Commission, not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1 - Reports to Stockholders
The following are copies of the reports transmitted to shareholders of the Forward Commodity Long/Short Strategy Fund, Forward Credit Analysis Long/Short Fund, Forward EM Corporate Debt Fund, Forward Emerging Markets Fund, Forward Endurance Long/Short Fund, Forward Frontier Strategy Fund, Forward Global Credit Long/Short Fund, Forward Global Dividend Fund, Forward Global Infrastructure Fund, Forward High Yield Bond Fund, Forward International Dividend Fund, Forward International Real Estate Fund, Forward International Small Companies Fund, Forward Investment Grade Fixed-Income Fund, Forward Managed Futures Strategy Fund, Forward Real Estate Fund, Forward Real Estate Long/Short Fund, Forward Select EM Dividend Fund, Forward Select Income Fund, Forward Small Cap Equity Fund, Forward Tactical Enhanced Fund, Forward Tactical Growth Fund, Forward Total MarketPlus Fund, Forward U.S. Government Money Fund, Forward Balanced Allocation Fund, Forward Growth & Income Allocation Fund, Forward Growth Allocation Fund, Forward Income & Growth Allocation Fund, Forward Income Builder Fund and Forward Multi-Strategy Fund (collectively, the “Funds”), each a series of the registrant, pursuant to Rule 30e-1 under the Investment Company Act of 1940, as amended (the “Act”) (17 CFR 270.30e-1).
| | | | |
 | | | | Semi-Annual Report June 30, 2013 |
| | | | Forward Credit Analysis Long/Short Fund Forward EM Corporate Debt Fund Forward Emerging Markets Fund Forward Endurance Long/Short Fund Forward Global Credit Long/Short Fund Forward Global Dividend Fund Forward International Dividend Fund Forward International Small
Companies Fund Forward Select EM Dividend Fund Forward Small Cap Equity Fund Forward Tactical Enhanced Fund Forward Tactical Growth Fund Forward Commodity Long/Short
Strategy Fund Forward Managed Futures Strategy Fund |
| | |
FORWARD FUNDS: | | Table of Contents |
Forward Funds are distributed by Forward Securities, LLC
101 California Street, 16th Floor, San Francisco, California 94111
The report has been prepared for the general information of Forward Funds’ shareholders. It is not authorized for distribution to prospective investors unless accompanied or proceeded by a current Forward Funds’ Prospectus, which contains more complete information about Forward Funds’ investment policies, management fees and expenses. Investors are reminded to read the Prospectus before investing or sending money.
June 30, 2013
| | |
| Shareholder Update | | June 30, 2013 |
| | |
A MESSAGE FROM: | | J. Alan Reid, Jr. Chief Executive Officer |
Dear Shareholder:
With today’s low yields, shifting interest rates and mixed global economic outlook, it’s a challenging time to be a long-term investor. We believe that investors who want to get ahead need to look beyond conventional broad market strategies and seek ways to build resilience into their portfolios.
If anything, the last five years have shown us that we cannot put all of our eggs in one basket. At Forward, we realize that we have to change and adapt with the markets to continue to help our clients build diversified portfolios. That means offering funds like our Forward Commodity Long/Short Strategy Fund that have had negative correlation to other asset classes1, or strategies that seek to provide income and growth, like Forward Income Builder Fund which offers asset class diversification in one fund. Or our two newest funds that launch on July 31 and focus on providing investors new income alternatives – Forward Dynamic Income Fund and Forward Select Income Opportunity Fund.
Forward will continue to research new ideas to identify solutions to help advisors and investors advance toward their financial goals. And our focus will remain on outcome-oriented, problem-solving strategies that seek to help our clients find alpha, diversify portfolios with low-correlation strategies, provide income and hedge against risks.
Unique income sources
In May 2012 we introduced Forward Income Builder Fund, an income strategy built for today’s low yield environment. The fund is an actively managed portfolio and invests across our diverse mix of traditional, alternative and global income-producing strategies, including our dividend strategies, international real estate, global infrastructure, high yield and emerging market (EM) corporate debt. As of June 30, the fund had a current yield of 5.15% and a 30-day SEC yield of 4.98%2.
Our Select Income Fund, which focuses on preferred real estate securities, also targets stable, reliable income. The fund delivered a 6.69% current yield and a 30-day SEC yield of 5.73% as of June 30.
Strategic access to overseas markets
After a long run of strong performance, EM index funds and exchange-traded funds dropped sharply in the first half of the year and as a result many investors have taken their EM exposure to a 12-year low3. In our view, a passive, broad-brush approach to EMs misses many opportunities to deliver low-correlation returns. Forward Emerging Markets Fund, Forward Select EM Dividend Fund and Forward EM Corporate Debt Fund are active strategies that seek to find opportunities away from the indices and take advantage of favorable valuations.
Meanwhile, many investors are paying attention to the frontier markets, which have performed strongly this year. Forward Frontier Strategy Fund provides exposure to these fast-growing markets and the fund’s Investor Class shares returned 9.29% in the first half of the year.
With our array of global and EM strategies, we remain strong believers in the growth and diversification potential of global strategies.
Tactical solutions
While the strong rally of the S&P 500 Index in the first half of the year buoyed stock portfolios, recent spikes in volatility and the phasing out of government stimulus programs have many wondering about downside risks. Forward’s two tactical equity strategies, Tactical Growth Fund and Tactical Enhanced Fund, seek to provide a backstop against market downturns by actively managing long and short market exposure.
Similarly, our Commodity Long/Short Strategy Fund and Managed Futures Strategy Fund systematically shift exposure to those markets as they move. Both funds help address inflation concerns with the Commodity Long/Short Strategy Fund’s Institutional Class shares returning 9.98% as of June 30.
| 1 | Morningstar, 12/31/10 – 06/30/13 |
| 2 | The performance quoted represents past performance, does not guarantee future results and current performance may be lower or higher than the data quoted. The investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance data current to the most recent month-end may be obtained at www.forwardinvesting.com. Investment performance may reflect fee waivers in effect. In the absence of fee waivers, total return would be lower. Total return is based on NAV, assuming reinvestment of all distributions. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. |
| 3 | Reuters, “Investors cut emerging market exposure to near 12-year low – poll,” July 16, 2013. |
The role of hard assets
Investors often look to real estate as an asset whose value endures through the markets’ ups and downs. Forward Real Estate Long/Short Fund is a value-focused, long/short strategy that distills the portfolio team’s best ideas with the goal of enhancing total return. Year to date, the fund’s Class A shares have returned 7.02%.
We hope that as you think about your investment challenges, you continue to look to Forward for new thinking and strategies designed to help meet your goals for returns, income, global exposure and portfolio diversification. We also invite you to explore www.forwardinvesting.com/fwd-thinking, where we regularly post our latest research publications and webcasts on timely investment topics. Our recent white paper, The 5% Problem: Double Jeopardy for Traditional Bond Investors, addresses some of the key issues facing investors today in the current market environment.
The team at Forward thanks you for your continued confidence and trust in us. We never forget that helping investors achieve their investment goals is what our business is really about, and we are privileged to be your partners in that effort.
Sincerely,
J. Alan Reid, Jr.
Chief Executive Officer
Forward
RISKS
There are risks involved with investing, including loss of principal. Past performance does not guarantee future results, share prices will fluctuate and you may have a gain or loss when you redeem shares.
Each allocation fund is a fund of funds, which invest in a mix of underlying Forward Funds. Shareholders of an allocation fund indirectly bear the expenses of the underlying funds. An allocation fund’s allocations may be changed at any time. Asset allocation does not assure profit or protect against risk. (Forward Income Builder Fund)
Borrowing for investment purposes creates leverage, which can increase the risk and volatility of a fund. (Forward Dynamic Income Fund, Forward EM Corporate Debt Fund, Forward Income Builder Fund, Forward Real Estate Long/Short Fund, Forward Select EM Dividend Fund, Forward Select Income Fund, Forward Select Income Opportunity Fund, Forward Tactical Enhanced Fund, Forward Tactical Growth Fund)
Exposure to the commodities markets may subject a fund to greater volatility than investing in traditional securities. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as natural disasters and international economic, political and regulatory developments. (Forward Commodity Long/Short Strategy Fund, Forward Managed Futures Strategy Fund)
Concentration in a particular industry will involve a greater degree of risk than a more diversified portfolio. (Forward Real Estate Long/Short Fund, Forward Select Income Fund)
Derivative instruments involve risks different from those associated with investing directly in securities and may cause, among other things, increased volatility and transaction costs or a fund to lose more than the amount invested. (Forward Commodity Long/Short Strategy Fund, Forward Dynamic Income Fund, Forward EM Corporate Debt Fund, Forward Emerging Markets Fund, Forward Frontier Strategy Fund, Forward Income Builder Fund, Forward Managed Futures Strategy Fund, Forward Real Estate Long/Short Fund, Forward Select EM Dividend Fund, Forward Select Income Fund, Forward Select Income Opportunity Fund, Forward Tactical Enhanced Fund, Forward Tactical Growth Fund)
Investing in exchange-traded funds (ETFs) will subject a fund to substantially the same risks as those associated with the direct ownership of the securities or other property held by the ETFs. (Forward Commodity Long/Short Strategy Fund, Forward Dynamic Income Fund, Forward EM Corporate Debt Fund, Forward Emerging Markets Fund, Forward Income Builder Fund, Forward Managed Futures Strategy Fund, Forward Tactical Enhanced Fund, Forward Tactical Growth Fund)
Foreign securities, especially emerging or frontier markets, will involve additional risks including exchange rate fluctuations, social and political instability, less liquidity, greater volatility and less regulation. (Forward Dynamic Income Fund, Forward EM Corporate Debt Fund, Forward Emerging Markets Fund, Forward Frontier Strategy Fund, Forward Income Builder Fund, Forward Real Estate Long/Short Fund, Forward Select EM Dividend Fund, Forward Select Income Opportunity Fund, Forward Tactical Enhanced Fund, Forward Tactical Growth Fund)
Investing in lower-rated (“high yield”) debt securities involves special risks in addition to those associated with investments in higher-rated debt securities, including a high degree of credit risk. (Forward EM Corporate Debt Fund, Forward Income Builder Fund)
Mortgage and asset-backed securities are debt instruments that are secured by interests in pools of mortgage loans or other financial instruments. Mortgage-backed securities are subject to, among other things, prepayment and extension risks. (Forward Commodity Long/Short Strategy Fund, Forward Income Builder Fund, Forward Managed Futures Strategy Fund)
June 30, 2013
Investing in a non-diversified fund involves the risk of greater price fluctuation than a more diversified portfolio. (Forward Commodity Long/Short Strategy Fund, Forward Dynamic Income Fund, Forward EM Corporate Debt Fund, Forward Endurance Long/Short Fund, Forward Frontier Strategy Fund, Forward Managed Futures Strategy Fund, Forward Real Estate Long/Short Fund, Forward Select Income Fund, Forward Select Income Opportunity Fund)
Higher portfolio turnover rates will involve greater transaction costs, and may increase the potential for taxable distributions being paid to shareholders. (Forward Tactical Enhanced Fund)
Investing in the real estate industry or in real estate-related securities involves the risks associated with direct ownership of real estate which include, among other things, changes in economic conditions (e.g., interest rates), the macro real estate development market, government intervention (e.g., property taxes) or environmental disasters. These risks may also affect the value of equities that service the real estate sector. (Forward Dynamic Income Fund, Forward Income Builder Fund, Forward Real Estate Long/Short Fund, Forward Select Income Fund, Forward Select Income Opportunity Fund)
Short selling involves additional investment risks and transaction costs, and creates leverage, which can increase the risk and volatility of a fund. (Forward Dynamic Income Fund, Forward Income Builder Fund, Forward Real Estate Long/Short Fund, Forward Select EM Dividend Fund, Forward Select Income Opportunity Fund, Forward Tactical Enhanced Fund, Forward Tactical Growth Fund)
Investing in smaller companies generally will present greater investment risks, including greater price volatility, greater sensitivity to changing economic conditions and less liquidity than investing in larger, more mature companies. (Forward Dynamic Income Fund)
Alternative strategies typically are subject to increased risk and loss of principal. Consequently, investments such as mutual funds which focus on alternative strategies are not suitable for all investors.
Diversification does not assure profit or protect against risk.
There is no guarantee the companies in our portfolio will continue to pay dividends.
Forward Dynamic Income Fund and Forward Select Income Opportunity Fund were launched on July 31, 2013, and each has a limited operating history.
Forward Commodity Long/Short Strategy Fund seeks long-term total return.
Forward Dynamic Income Fund seeks total return, with dividend and interest income being an important component of that return, while exhibiting less downside volatility than the S&P 500 Index.
Forward EM Corporate Debt Fund seeks to achieve high total return (capital appreciation and income).
Forward Emerging Markets Fund seeks to achieve long-term growth of capital.
Forward Frontier Strategy Fund seeks capital growth.
Forward Income Builder Fund seeks high current income and some stability of principal.
Forward Managed Futures Strategy Fund seeks long-term total return.
Forward Real Estate Long/Short Fund seeks total return through a combination of high current income relative to equity investment alternatives, plus long-term growth of capital.
Forward Select EM Dividend Fund seeks to achieve high total return through capital appreciation and current income.
Forward Select Income Fund seeks high current income and potential for modest long-term growth of capital.
Forward Select Income Opportunity Fund seeks total return through current income and long-term capital appreciation.
Forward Tactical Enhanced Fund’s investment objective is to produce above-average, risk-adjusted returns, in any market environment, while exhibiting less downside volatility than the S&P 500 Index.
Forward Tactical Growth Fund’s investment objective is to produce above-average, risk-adjusted returns, in any market environment, while exhibiting less downside volatility than the S&P 500 Index.
Alpha is a coefficient measuring risk-adjusted performance.
Correlation is a statistical measure of how two securities move in relation to each other.
S&P 500 Index is an unmanaged index of 500 common stocks chosen to reflect the industries in the U.S. economy. One cannot invest directly in an index.
Valuation is the process of determining the value of an asset or company based on earnings and the market value of assets.
Volatility is a statistical measure of the dispersion of returns for a given security or market index.
Alan Reid is a registered representative of Forward Securities, LLC.
| | |
| Shareholder Update | | June 30, 2013 |
| | |
A MESSAGE FROM: | | Jim O’Donnell, CFA Chief Investment Officer |
Dear Shareholder:
The first half of 2013 was a bit of a wild ride. Many asset classes and markets around the globe enjoyed an exhilarating rally in the first three months of the year only to relinquish a healthy portion of those gains in the months of May and June. Needless to say, this served to unnerve many investors and market participants as they were left to wonder what happened.
So, what happened? From our perspective, the lynchpin of the uncertainty which precipitated the market’s decline was the Federal Reserve’s indication that the days of their quantitative easing program of bond buying—which has artificially served to lower long-term interest rates—may indeed be numbered. The repercussions of this action by the Fed were far reaching—impacting stocks, bonds, real estate, currencies and commodities, and domestic and international investments.
Taking a step back, it is important to understand that the epicenter of this shock wave emanated from the credit markets. When investing in income and credit assets, we believe investors must always assess whether they are being compensated for these three primary risks:
1. Inflation
2. Credit
3. Liquidity
Inflation risk is when a future dollar repaid does not equal the value of a dollar today. We analyze this risk by looking at the sensitivity of prices of investments to changes in interest rates (which frequently move in response to changes in inflationary threats).
Credit risk is the risk of not being repaid. Analysis for this risk looks at fundamental factors related to the borrower including debt quality, how much debt is owed, capacity for repayment as well as the overall economic climate and default rates.
Liquidity risk is the risk that a security cannot be traded quickly enough in the market to prevent a loss or make a profit. While this risk is the toughest to gauge, many market players assess this by looking at valuations, sentiment, leverage levels of market participants, interest rate spreads and the direction of fund flows.
We reached a stage in early 2013 where inflation-adjusted interest rates went negative, interest rate spreads narrowed and valuations became elevated. At that point, many of Forward’s portfolio managers elected to reduce leverage, take profits in positions that had become overvalued and raise cash so they could be in a better position to buy new holdings. They believed risk levels needed to be reduced as investors were not being adequately compensated for the risks outlined above.
The sell-off in the credit markets also extended to other income-oriented equity asset classes and then radiated out to other asset classes and markets, and it was instructive in terms of illustrating the magnitude and dimensions of liquidity risk. One can make a persuasive argument to the effect that the landscape of liquidity risk has changed dramatically since 2008. Reform legislation—like the Volcker Rule and Basel III—encourages traditional liquidity providers in the credit markets to curtail market making activities. The constraints of the reform legislation have reduced the capital which traditionally provided liquidity to the markets, and have caused market makers—those who buy and sell securities from their own accounts in order to provide liquidity and reduce volatility in the markets—to redeploy capital for other purposes. The net effect is that credit market investments and income-oriented investments may tend to be more volatile on a going forward basis than investors have traditionally experienced in the past. We believe the impacts of liquidity risk are more temporary in nature and may present attractive buying opportunities.
As we look forward to the second half of 2013, there is intense focus on the slowing rate of China’s economic growth. As these concerns heighten, we believe that emerging market equities may present an attractive buying opportunity. Another way to capitalize on declining demand in China may be via strategies which can gain short exposure to the commodities demanded by Chinese firms.
As always, we remain committed to helping our shareholders attain true portfolio diversification and achieve their long-term financial goals. We also believe that transparent practices give our investors access to the information they need to make important investment decisions. I invite you to review the information in this report and the performance of the Forward Funds in the first half of 2013, and thank you for the continued confidence that you place in our funds.
Sincerely,
Jim O’Donnell, CFA
Chief Investment Officer
Forward
RISKS
There are risks involved with investing, including loss of principal. Past performance does not guarantee future results, share prices will fluctuate and you may have a gain or loss when you redeem shares.
Exposure to the commodities markets may subject a fund to greater volatility than investing in traditional securities. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as natural disasters and international economic, political and regulatory developments.
Foreign securities, especially emerging or frontier markets, will involve additional risks including exchange rate fluctuations, social and political instability, less liquidity, greater volatility and less regulation.
Diversification does not assure profit or protect against risk.
Basel III is a global, voluntary regulatory standard on bank capital adequacy, stress testing and market liquidity risk.
Leverage refers to the use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment.
Liquidity is the degree to which an asset or security can be bought or sold in the market without affecting the asset’s price.
Quantitative easing refers to a form of monetary policy used to stimulate an economy where interest rates are either at, or close to, zero.
Valuation is the process of determining the value of an asset or company based on earnings and the market value of assets.
Volatility is a statistical measure of the dispersion of returns for a given security or market index.
The Volcker Rule is a proposal by American economist and former Federal Reserve Chairman Paul Volcker to restrict banks from making certain kinds of speculative investments if they are not on behalf of their customers.
Jim O’Donnell has earned the right to use the Chartered Financial Analyst designation. CFA Institute marks are trademarks owned by the CFA Institute.
Forward Funds are distributed by Forward Securities, LLC.
Not FDIC Insured | No Bank Guarantee | May Lose Value
© Forward Management, LLC. All rights reserved.
The discussions concerning the funds included in this shareholder report may contain certain forward-looking statements about the factors that may affect performance of the funds in the future, including the portfolio managers’ outlook regarding economic, market, political and other factors relevant to investment performance. These statements are based on the portfolio managers’ expectations concerning certain future events and their expected impact on the funds, and are current only through the date on the cover of this report. Forward-looking statements are inherently uncertain and are not intended to predict the future performance of the funds. Actual events may cause adjustments in the portfolio managers’ strategies from those currently expected to be employed, and the outlook of the portfolio managers is subject to change.
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2013
See page 11 for important performance disclosure information about the Forward Funds.
The performance quoted represents past performance, does not guarantee future results and current performance may be lower or higher than the data quoted. The investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance data current to the most recent month-end may be obtained at www.forwardinvesting.com. Investment performance may reflect fee waivers in effect. In the absence of fee waivers, total return would be lower. Total return is based on NAV, assuming reinvestment of all distributions. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
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| Forward Credit Analysis Long/Short Fund(a) | | | | | 1 Year | | | 5 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | | | | | 0.74% | | | | 8.88% | | | | 7.84% | | | | 05/01/08 | |
Institutional Class | | | | | | | 1.10% | | | | 9.26% | | | | 8.22% | | | | 05/01/08 | |
Class A (load adjusted)(b)(c) | | | | | | | -5.27% | | | | 7.53% | | | | 1.34% | | | | 12/29/06 | |
Class A (without load)(c)(d) | | | | | | | 0.53% | | | | 8.80% | | | | 2.27% | | | | 12/29/06 | |
Class C (with CDSC)(e) | | | | | | | -0.81% | | | | N/A | | | | 8.13% | | | | 06/03/09 | |
Class C (without CDSC)(f) | | | | | | | 0.17% | | | | N/A | | | | 8.13% | | | | 06/03/09 | |
Advisor Class(g) | | | | | | | 1.21% | | | | N/A | | | | 5.56% | | | | 02/01/10 | |
| | | | | |
| Forward EM Corporate Debt Fund(h) | | | | | 1 Year | | | 5 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | | | | | 5.55% | | | | 4.55% | | | | 5.12% | | | | 10/05/07 | |
Institutional Class | | | | | | | 6.04% | | | | 4.93% | | | | 5.48% | | | | 10/05/07 | |
Class C (with CDSC)(e) | | | | | | | 4.05% | | | | 4.11% | | | | 4.67% | | | | 10/05/07 | |
Class C (without CDSC)(f) | | | | | | | 5.05% | | | | 4.11% | | | | 4.67% | | | | 10/05/07 | |
| | | | | |
| Forward Emerging Markets Fund(i) | | 1 Year | | | 5 Year | | | 10 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | 12.71% | | | | -0.39% | | | | 13.60% | | | | 15.23% | | | | 04/09/03 | |
Institutional Class | | | 13.18% | | | | 0.01% | | | | 14.00% | | | | 6.82% | | | | 10/04/95 | |
Advisor Class(g) | | | 13.18% | | | | N/A | | | | N/A | | | | 4.31% | | | | 02/01/10 | |
| | | | | |
| Forward Endurance Long/Short Fund | | | | | | | | 1 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | | | | | | | | | 5.53% | | | | 2.99% | | | | 12/31/11 | |
Institutional Class | | | | | | | | | | | 5.89% | | | | 3.34% | | | | 12/31/11 | |
| | | | | |
| Forward Global Credit Long/Short Fund | | | | | | | | 1 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | | | | | | | | | -2.31% | | | | -0.23% | | | | 09/30/11 | |
Institutional Class | | | | | | | | | | | -1.95% | | | | 0.15% | | | | 09/30/11 | |
Class C (with CDSC)(e) | | | | | | | | | | | -3.80% | | | | -0.83% | | | | 09/30/11 | |
Class C (without CDSC)(f) | | | | | | | | | | | -2.88% | | | | -0.83% | | | | 09/30/11 | |
Advisor Class(g) | | | | | | | | | | | -1.97% | | | | 0.14% | | | | 09/30/11 | |
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2013
See page 11 for important performance disclosure information about the Forward Funds.
| | | | | | | | | | | | | | | | | | | | |
| Forward Global Dividend Fund(k) | | | | | 1 Year | | | 5 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | | | | | 11.49% | | | | N/A | | | | 5.13% | | | | 05/02/11 | |
Institutional Class | | | | | | | 11.95% | | | | 4.66% | | | | 3.66% | | | | 01/31/07 | |
Class A (load adjusted)(b) | | | | | | | 4.83% | | | | 2.89% | | | | 2.97% | | | | 10/31/06 | |
Class A (without load)(d) | | | | | | | 11.24% | | | | 4.12% | | | | 3.89% | | | | 10/31/06 | |
| | | | | |
| Forward International Dividend Fund(l) | | 1 Year | | | 5 Year | | | 10 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | 17.99% | | | | -1.09% | | | | 7.53% | | | | 4.46% | | | | 10/01/98 | |
Institutional Class | | | 18.25% | | | | -0.85% | | | | N/A | | | | -2.45% | | | | 05/01/07 | |
Class A (load adjusted)(b)(j) | | | N/A | | | | N/A | | | | N/A | | | | -12.63% | | | | 05/01/13 | |
Class A (without load)(d)(j) | | | N/A | | | | N/A | | | | N/A | | | | -7.27% | | | | 05/01/13 | |
Class C (with CDSC)(e)(j) | | | N/A | | | | N/A | | | | N/A | | | | 13.87% | | | | 07/31/12 | |
Class C (without CDSC)(f)(j) | | | N/A | | | | N/A | | | | N/A | | | | 14.87% | | | | 07/31/12 | |
Advisor Class(g) | | | 18.23% | | | | N/A | | | | N/A | | | | 1.89% | | | | 05/02/11 | |
| | | | | |
| Forward International Small Companies Fund(m) | | 1 Year | | | 5 Year | | | 10 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | 21.91% | | | | -0.89% | | | | 9.84% | | | | 8.95% | | | | 03/05/02 | |
Institutional Class | | | 22.21% | | | | -0.57% | | | | 10.18% | | | | 8.09% | | | | 02/07/96 | |
Advisor Class(g) | | | 22.35% | | | | N/A | | | | N/A | | | | 7.45% | | | | 02/01/10 | |
| | | | | |
| Forward Select EM Dividend Fund | | | | | | | | 1 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | | | | | | | | | 14.51% | | | | 0.71% | | | | 05/02/11 | |
Institutional Class | | | | | | | | | | | 14.83% | | | | 2.31% | | | | 05/03/11 | |
Class C (with CDSC)(e) | | | | | | | | | | | 12.72% | | | | 0.11% | | | | 05/02/11 | |
Class C (without CDSC)(f) | | | | | | | | | | | 13.72% | | | | 0.11% | | | | 05/02/11 | |
Advisor Class(g) | | | | | | | | | | | 14.88% | | | | 1.12% | | | | 05/02/11 | |
| | | | | |
| Forward Small Cap Equity Fund(n) | | 1 Year | | | 5 Year | | | 10 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | 26.14% | | | | 0.81% | | | | 6.38% | | | | 6.61% | | | | 10/01/98 | |
Institutional Class | | | 26.44% | | | | 1.20% | | | | 6.77% | | | | 5.85% | | | | 06/06/02 | |
Advisor Class(g) | | | 26.42% | | | | N/A | | | | N/A | | | | 10.42% | | | | 02/01/10 | |
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2013
See page 11 for important performance disclosure information about the Forward Funds.
| | | | | | | | | | | | | | | | |
| Forward Tactical Enhanced Fund(o) | | | | | | 1 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | |
Investor Class | | | | | | | 7.71% | | | | 3.81% | | | | 12/31/10 | |
Institutional Class | | | | | | | 8.04% | | | | 4.17% | | | | 12/31/10 | |
Class A (load adjusted)(b) | | | | | | | 1.33% | | | | 1.18% | | | | 12/31/10 | |
Class A (without load)(d) | | | | | | | 7.52% | | | | 3.62% | | | | 12/31/10 | |
Class C (with CDSC)(e) | | | | | | | 6.03% | | | | 3.15% | | | | 12/31/10 | |
Class C (without CDSC)(f) | | | | | | | 7.03% | | | | 3.15% | | | | 12/31/10 | |
Advisor Class(g) | | | | | | | 8.08% | | | | 3.69% | | | | 04/15/11 | |
| | | | | |
| Forward Tactical Growth Fund | | | | | | 1 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | |
Investor Class | | | | | | | 6.08% | | | | 2.49% | | | | 09/14/09 | |
Institutional Class | | | | | | | 6.42% | | | | 2.82% | | | | 09/14/09 | |
Class A (load adjusted)(b) | | | | | | | -0.17% | | | | -0.57% | | | | 03/12/10 | |
Class A (without load)(d) | | | | | | | 5.91% | | | | 1.23% | | | | 03/12/10 | |
Class C (with CDSC)(e) | | | | | | | 4.46% | | | | 1.88% | | | | 09/14/09 | |
Class C (without CDSC)(f) | | | | | | | 5.46% | | | | 1.88% | | | | 09/14/09 | |
Advisor Class(g) | | | | | | | 6.41% | | | | 2.46% | | | | 02/01/10 | |
| | | | | |
| Forward Commodity Long/Short Strategy Fund | | | | | | 1 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | |
Investor Class | | | | | | | -9.94% | | | | -4.09% | | | | 12/31/10 | |
Institutional Class | | | | | | | -9.58% | | | | -3.76% | | | | 12/31/10 | |
Class C (with CDSC)(e) | | | | | | | -11.34% | | | | -10.91% | | | | 05/04/11 | |
Class C (without CDSC)(f) | | | | | | | -10.44% | | | | -10.91% | | | | 05/04/11 | |
Advisor Class(g) | | | | | | | -9.61% | | | | -10.02% | | | | 12/07/11 | |
Class Z | | | | | | | -9.55% | | | | -3.77% | | | | 12/31/10 | |
| | | | | |
| Forward Managed Futures Strategy Fund | | | | | | 1 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | |
Investor Class | | | | | | | -10.71% | | | | -11.84% | | | | 01/30/12 | |
Institutional Class | | | | | | | -10.39% | | | | -11.54% | | | | 01/30/12 | |
Class C (with CDSC)(e) | | | | | | | -12.09% | | | | -12.35% | | | | 01/30/12 | |
Class C (without CDSC)(f) | | | | | | | -11.21% | | | | -12.35% | | | | 01/30/12 | |
Class Z | | | | | | | -10.35% | | | | -12.13% | | | | 01/31/12 | |
(a) Prior to May 1, 2011 the Forward Credit Analysis Long/Short Fund was known as the Forward Long/Short Credit Analysis Fund.
(b) Includes the effect of the maximum 5.75% sales charge.
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2013
See page 11 for important performance disclosure information about the Forward Funds.
(c) Class A shares of the fund originally commenced operations on 12/29/06, were liquidated on 11/21/08, and were launched again on 09/01/10. The performance shown for any period beginning on or after 11/24/08 and lasting through 08/31/10 is that of the fund’s Investor Class shares adjusted to reflect the specific operating expenses applicable to Class A shares. The performance shown for any period beginning on or after 09/01/10 is that of the fund’s Class A shares.
(d) Excludes sales charge.
(e) Includes the 1.00% contingent deferred sales charge.
(f) Excludes the 1.00% contingent deferred sales charge.
(g) Prior to May 1, 2013, the Advisor Class was known as Class M.
(h) As of February 14, 2011, the Forward EM Corporate Debt Fund replaced the sub-advisor, Pictet Asset Management SA with SW Asset Management, LLC. Prior to May 1, 2011 the Forward EM Corporate Debt Fund was known as the Forward International Fixed-Income Fund.
(i) Effective September 1, 2012, the Trust and Forward Management terminated their sub-advisory agreement with Pictet Asset Management Ltd, for investment sub-advisory services provided for the Forward Emerging Markets Fund. The Fund is now advised solely by Forward Management. Performance figures shown for periods before September 1, 2012, represent performance of Pictet Asset Management Ltd, under the previous investment strategy for the Fund. The Retail Class and Institutional Class of the Pictet Global Emerging Markets Fund were reorganized into the Investor and Institutional Class, respectively, of the Forward Global Emerging Markets Fund on September 16, 2004. Performance figures shown for prior periods prior to September 16, 2004 represent performance of the Retail Class and Institutional Class of the Pictet Global Emerging Markets Fund. Prior to May 1, 2008, the Forward Emerging Markets Fund was known as the Forward Global Emerging Markets Fund.
(j) “Since inception” performance is not annualized for a “since inception” period that is less than 1 year.
(k) Prior to February 20, 2013 the Forward Global Dividend Fund was known as the Forward Large Cap Dividend Fund. Prior to November 1, 2011 the Forward Large Cap Dividend Fund was known as the Forward Large Cap Equity Fund.
(l) Prior to May 1, 2010, the Forward International Dividend Fund was known as the Forward International Equity Fund. As of December 1, 2008, the Fund is directly managed by Forward Management, LLC., the Advisor to the Forward Funds. Performance figures and other portfolio data shown for periods prior to December 1, 2008, do not reflect Forward Management’s performance or strategy. Prior to September 1, 2005, the Forward International Equity Fund was known as the Forward Hansberger International Growth Fund. Pictet Asset Management Limited had been the Fund’s sub-advisor since September 1, 2005. From March 6, 2000 through August 31, 2005, Hansberger Global Investors, Inc. was the Fund’s sub-advisor and the Fund’s investment strategy was different. Prior to March 6, 2000, the Fund was managed by a different sub-advisor. Accordingly, performance figures for periods before September 1, 2005 do not reflect the current strategy or the sub-advisor’s performance.
(m) The Retail Class and Institutional Class of the Pictet International Small Companies Fund were reorganized into the Investor and Institutional classes, respectively, of the Forward International Small Companies Fund on December 23, 2003. Performance figures for periods prior to December 23, 2003 represent performance of the respective class of shares of the Pictet International Small Companies Fund.
(n) Prior to May 1, 2008, the Forward Small Cap Equity Fund was known as the Forward Hoover Small Cap Equity Fund.
(o) Effective November 1, 2012, the Trust and Forward Management terminated their sub-advisory agreement with Broadmark Asset Management, LLC, for investment sub-advisory services provided for the Forward Tactical Enhanced Fund. The Fund is now advised solely by Forward Management. Performance figures and other portolio data shown for periods prior to November 1, 2012, represent performance of Broadmark Asset Management, LLC, under the previous investment strategy for the Fund.
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2013
Risk Disclosures
There are risks involved with investing, including loss of principal. Past performance does not guarantee future results, share prices will fluctuate and you may have a gain or loss when you redeem shares.
Forward Credit Analysis Long/Short Fund
Borrowing for investment purposes creates leverage, which can increase the risk and volatility of a fund.
Derivative instruments involve risks different from those associated with investing directly in securities and may cause, among other things, increased volatility and transaction costs or a fund to lose more than the amount invested.
Foreign securities, especially emerging or frontier markets, will involve additional risks including exchange rate fluctuations, social and political instability, less liquidity, greater volatility and less regulation.
Investing in lower-rated (“high yield”) debt securities involves special risks in addition to those associated with investments in higher-rated debt securities, including a high degree of credit risk.
Investing in a non-diversified fund involves the risk of greater price fluctuation than a more diversified portfolio.
Short selling involves additional investment risks and transaction costs, and creates leverage, which can increase the risk and volatility of a fund.
Alternative strategies typically are subject to increased risk and loss of principal. Consequently, investments such as mutual funds which focus on alternative strategies are not suitable for all investors.
Forward EM Corporate Debt Fund
Borrowing for investment purposes creates leverage, which can increase the risk and volatility of a fund.
Derivative instruments involve risks different from those associated with investing directly in securities and may cause, among other things, increased volatility and transaction costs or a fund to lose more than the amount invested.
Investing in exchange-traded funds (ETFs) will subject a fund to substantially the same risks as those associated with the direct ownership of the securities or other property held by the ETFs.
Foreign securities, especially emerging or frontier markets, will involve additional risks including exchange rate fluctuations, social and political instability, less liquidity, greater volatility and less regulation.
Investing in lower-rated (“high yield”) debt securities involves special risks in addition to those associated with investments in higher-rated debt securities, including a high degree of credit risk.
Investing in a non-diversified fund involves the risk of greater price fluctuation than a more diversified portfolio.
Forward Emerging Markets Fund
Derivative instruments involve risks different from those associated with investing directly in securities and may cause, among other things, increased volatility and transaction costs or a fund to lose more than the amount invested.
Investing in exchange-traded funds (ETFs) will subject a fund to substantially the same risks as those associated with the direct ownership of the securities or other property held by the ETFs.
Foreign securities, especially emerging or frontier markets, will involve additional risks including exchange rate fluctuations, social and political instability, less liquidity, greater volatility and less regulation.
June 30, 2013
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2013
There is no guarantee the companies in our portfolio will continue to pay dividends.
Forward Endurance Long/Short Fund
Derivative instruments involve risks different from those associated with investing directly in securities and may cause, among other things, increased volatility and transaction costs or a fund to lose more than the amount invested.
Investing in exchange-traded funds (ETFs) will subject a fund to substantially the same risks as those associated with the direct ownership of the securities or other property held by the ETFs.
Foreign securities, especially emerging or frontier markets, will involve additional risks including exchange rate fluctuations, social and political instability, less liquidity, greater volatility, and less regulation.
Investing in a non-diversified fund involves the risk of greater price fluctuation than a more diversified portfolio.
Short selling involves additional investment risks and transaction costs, and creates leverage, which can increase the risk and volatility of a fund.
Investing in smaller companies generally will present greater investment risks, including greater price volatility, greater sensitivity to changing economic conditions and less liquidity than investing in larger, more mature companies.
Alternative strategies typically are subject to increased risk and loss of principal. Consequently, investments such as mutual funds which focus on alternative strategies are not suitable for all investors.
Forward Global Credit Long/Short Fund
Borrowing for investment purposes creates leverage, which can increase the risk and volatility of a fund.
Derivative instruments involve risks different from those associated with investing directly in securities and may cause, among other things, increased volatility and transaction costs or a fund to lose more than the amount invested.
Investing in exchange-traded funds (ETFs) will subject a fund to substantially the same risks as those associated with the direct ownership of the securities or other property held by the ETFs.
Foreign securities, especially emerging or frontier markets, will involve additional risks including exchange rate fluctuations, social and political instability, less liquidity, greater volatility and less regulation.
Investing in lower-rated (“high yield”) debt securities involves special risks in addition to those associated with investments in higher-rated debt securities, including a high degree of credit risk.
Investing in a non-diversified fund involves the risk of greater price fluctuation than a more diversified portfolio.
Short selling involves additional investment risks and transaction costs, and creates leverage, which can increase the risk and volatility of a fund.
Alternative strategies typically are subject to increased risk and loss of principal. Consequently, investments such as mutual funds which focus on alternative strategies are not suitable for all investors.
Forward Global Dividend Fund
Derivative instruments involve risks different from those associated with investing directly in securities and may cause, among other things, increased volatility and transaction costs or a fund to lose more than the amount invested.
Foreign securities, especially emerging or frontier markets, will involve additional risks including exchange rate fluctuations, social and political instability, less liquidity, greater volatility and less regulation.
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2013
There is no guarantee the companies in our portfolio will continue to pay dividends.
Forward International Dividend Fund
Borrowing for investment purposes creates leverage, which can increase the risk and volatility of a fund.
Derivative instruments involve risks different from those associated with investing directly in securities and may cause, among other things, increased volatility and transaction costs or a fund to lose more than the amount invested.
Foreign securities, especially emerging or frontier markets, will involve additional risks including exchange rate fluctuations, social and political instability, less liquidity, greater volatility and less regulation.
There is no guarantee the companies in our portfolio will continue to pay dividends.
Forward International Small Companies Fund
Derivative instruments involve risks different from those associated with investing directly in securities and may cause, among other things, increased volatility and transaction costs or a fund to lose more than the amount invested.
Investing in exchange-traded funds (ETFs) will subject a fund to substantially the same risks as those associated with the direct ownership of the securities or other property held by the ETFs.
Foreign securities, especially emerging or frontier markets, will involve additional risks including, exchange rate fluctuations, social and political instability, less liquidity, greater volatility and less regulation.
Investing in smaller companies generally will present greater investment risks, including greater price volatility, greater sensitivity to changing economic conditions and less liquidity than investing in larger, more mature companies.
Forward Select EM Dividend Fund
Borrowing for investment purposes creates leverage, which can increase the risk and volatility of a fund.
Derivative instruments involve risks different from those associated with investing directly in securities and may cause, among other things, increased volatility and transaction costs or a fund to lose more than the amount invested.
Foreign securities, especially emerging or frontier markets, will involve additional risks including exchange rate fluctuations, social and political instability, less liquidity, greater volatility, and less regulation.
Short selling involves additional investment risks and transaction costs, and creates leverage, which can increase the risk and volatility of a fund.
There is no guarantee the companies in our portfolio will continue to pay dividends.
Forward Small Cap Equity Fund
Derivative instruments involve risks different from those associated with investing directly in securities and may cause, among other things, increased volatility and transaction costs or a fund to lose more than the amount invested.
Investing in exchange-traded funds (ETFs) will subject a fund to substantially the same risks as those associated with the direct ownership of the securities or other property held by the ETFs.
Foreign securities, especially emerging or frontier markets, will involve additional risks including exchange rate fluctuations, social and political instability, less liquidity, greater volatility, and less regulation.
June 30, 2013
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2013
Investing in smaller companies generally will present greater investment risks, including greater price volatility, greater sensitivity to changing economic conditions and less liquidity than investing in larger, more mature companies.
Forward Tactical Enhanced Fund
Borrowing for investment purposes creates leverage, which can increase the risk and volatility of a fund.
Derivative instruments involve risks different from those associated with investing directly in securities and may cause, among other things, increased volatility and transaction costs or a fund to lose more than the amount invested.
Investing in exchange-traded funds (ETFs) will subject a fund to substantially the same risks as those associated with the direct ownership of the securities or other property held by the ETFs.
Foreign securities, especially emerging or frontier markets, will involve additional risks including exchange rate fluctuations, social and political instability, less liquidity, greater volatility and less regulation.
Higher portfolio turnover rates will involve greater transaction costs, and may increase the potential for taxable distributions being paid to shareholders.
Short selling involves additional investment risks and transaction costs, and creates leverage, which can increase the risk and volatility of a fund.
Alternative strategies typically are subject to increased risk and loss of principal. Consequently, investments such as mutual funds which focus on alternative strategies are not suitable for all investors.
Forward Tactical Growth Fund
Borrowing for investment purposes creates leverage, which can increase the risk and volatility of a fund.
Derivative instruments involve risks different from those associated with investing directly in securities and may cause, among other things, increased volatility and transaction costs or a fund to lose more than the amount invested.
Investing in exchange-traded funds (ETFs) will subject a fund to substantially the same risks as those associated with the direct ownership of the securities or other property held by the ETFs.
Foreign securities, especially emerging or frontier markets, will involve additional risks including exchange rate fluctuations, social and political instability, less liquidity, greater volatility and less regulation.
Short selling involves additional investment risks and transaction costs, and creates leverage, which can increase the risk and volatility of a fund.
Alternative strategies typically are subject to increased risk and loss of principal. Consequently, investments such as mutual funds which focus on alternative strategies are not suitable for all investors.
Forward Commodity Long/Short Strategy Fund
Exposure to the commodities markets may subject a fund to greater volatility than investing in traditional securities. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as natural disasters and international economic, political and regulatory developments.
Derivative instruments involve risks different from those associated with investing directly in securities and may cause, among other things, increased volatility and transaction costs or a fund to lose more than the amount invested.
Investing in exchange-traded funds (ETFs) will subject a fund to substantially the same risks as those associated with the direct ownership of the securities or other property held by the ETFs.
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2013
Mortgage and asset-backed securities are debt instruments that are secured by interests in pools of mortgage loans or other financial instruments. Mortgage-backed securities are subject to, among other things, prepayment and extension risks.
Investing in a non-diversified fund involves the risk of greater price fluctuation than a more diversified portfolio.
Alternative strategies typically are subject to increased risk and loss of principal. Consequently, investments such as mutual funds which focus on alternative strategies are not suitable for all investors.
Forward Managed Futures Strategy Fund
Exposure to the commodities markets may subject a fund to greater volatility than investing in traditional securities. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as natural disasters and international economic, political and regulatory developments.
Derivative instruments involve risks different from those associated with investing directly in securities and may cause, among other things, increased volatility and transaction costs or a fund to lose more than the amount invested.
Investing in exchange-traded funds (ETFs) will subject a fund to substantially the same risks as those associated with the direct ownership of the securities or other property held by the ETFs.
Mortgage and asset-backed securities are debt instruments that are secured by interests in pools of mortgage loans or other financial instruments. Mortgage-backed securities are subject to, among other things, prepayment and extension risks.
Investing in a non-diversified fund involves the risk of greater price fluctuation than a more diversified portfolio.
Alternative strategies typically are subject to increased risk and loss of principal. Consequently, investments such as mutual funds which focus on alternative strategies are not suitable for all investors.
June 30, 2013
Disclosure of Fund Expenses (Unaudited)
For the Six Months Ended June 30, 2013
As a shareholder of the Forward Funds, you incur two types of costs: (1) transaction costs, including applicable sales charges (loads); and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, shareholder services fees and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the (six-month) period and held for the entire period January 1, 2013 through June 30, 2013.
Actual Expenses
The first line for each share class of each Fund in the table provides information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the applicable line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example For Comparison Purposes
The second line for each share class of each Fund in the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table below are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees or exchange fees. Therefore, the second line for each share class of each Fund within the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If these transactional costs were included, your costs would have been higher.
| | | | | | | | | | | | | | | | |
| Forward Credit Analysis Long/Short Fund | | Beginning
Account Value
01/01/13 | | | Ending
Account Value
06/30/13 | | | Expense
Ratio(a) | | | Expenses Paid
During Period(b)
01/01/13-06/30/13 | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 961.60 | | | | 1.99% | | | $ | 9.68 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,014.93 | | | | 1.99% | | | $ | 9.94 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 961.90 | | | | 1.64% | | | $ | 7.98 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,016.66 | | | | 1.64% | | | $ | 8.20 | |
| Class A | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 959.60 | | | | 2.14% | | | $ | 10.40 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,014.18 | | | | 2.14% | | | $ | 10.69 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 958.80 | | | | 2.59% | | | $ | 12.58 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,011.95 | | | | 2.59% | | | $ | 12.92 | |
| Advisor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 963.00 | | | | 1.66% | | | $ | 8.08 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,016.56 | | | | 1.66% | | | $ | 8.30 | |
| Forward EM Corporate Debt Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 969.10 | | | | 1.31% | | | $ | 6.40 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,018.30 | | | | 1.31% | | | $ | 6.56 | |
Disclosure of Fund Expenses (Unaudited)
For the Six Months Ended June 30, 2013
| | | | | | | | | | | | | | | | |
| Forward EM Corporate Debt Fund (continued) | | Beginning
Account Value
01/01/13 | | | Ending
Account Value
06/30/13 | | | Expense
Ratio(a) | | | Expenses Paid
During Period(b)
01/01/13-06/30/13 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 971.50 | | | | 0.92% | | | $ | 4.50 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,020.23 | | | | 0.92% | | | $ | 4.61 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 967.50 | | | | 1.87% | | | $ | 9.12 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,015.52 | | | | 1.87% | | | $ | 9.35 | |
| Forward Emerging Markets Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,000.90 | | | | 1.77% | | | $ | 8.78 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,016.02 | | | | 1.77% | | | $ | 8.85 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,003.80 | | | | 1.39% | | | $ | 6.91 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.90 | | | | 1.39% | | | $ | 6.95 | |
| Advisor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,002.70 | | | | 1.41% | | | $ | 7.00 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.80 | | | | 1.41% | | | $ | 7.05 | |
| Forward Endurance Long/Short Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,012.00 | | | | 2.34% | | | $ | 11.67 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,013.19 | | | | 2.34% | | | $ | 11.68 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,013.50 | | | | 1.99% | | | $ | 9.93 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,014.93 | | | | 1.99% | | | $ | 9.94 | |
| Forward Global Credit Long/Short Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 954.50 | | | | 2.39% | | | $ | 11.58 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,012.94 | | | | 2.39% | | | $ | 11.93 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 956.20 | | | | 2.00% | | | $ | 9.70 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,014.88 | | | | 2.00% | | | $ | 9.99 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 951.90 | | | | 2.99% | | | $ | 14.47 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,009.97 | | | | 2.99% | | | $ | 14.90 | |
| Advisor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 956.10 | | | | 2.02% | | | $ | 9.80 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,014.78 | | | | 2.02% | | | $ | 10.09 | |
June 30, 2013
Disclosure of Fund Expenses (Unaudited)
For the Six Months Ended June 30, 2013
| | | | | | | | | | | | | | | | |
| Forward Global Dividend Fund | | Beginning
Account Value
01/01/13 | | | Ending
Account Value
06/30/13 | | | Expense
Ratio(a) | | | Expenses Paid
During Period(b)
01/01/13-06/30/13 | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,075.60 | | | | 1.26% | | | $ | 6.48 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,018.55 | | | | 1.26% | | | $ | 6.31 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,078.50 | | | | 0.93% | | | $ | 4.79 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,020.18 | | | | 0.93% | | | $ | 4.66 | |
| Class A | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,074.90 | | | | 1.42% | | | $ | 7.31 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.75 | | | | 1.42% | | | $ | 7.10 | |
| Forward International Dividend Fund(c) | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,024.30 | | | | 1.34% | | | $ | 6.73 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,018.15 | | | | 1.34% | | | $ | 6.71 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,025.40 | | | | 0.99% | | | $ | 4.97 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,019.89 | | | | 0.99% | | | $ | 4.96 | |
| Class A | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 927.30 | | | | 1.49% | | | $ | 2.40 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.41 | | | | 1.49% | | | $ | 7.45 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,020.60 | | | | 1.94% | | | $ | 9.72 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,015.17 | | | | 1.94% | | | $ | 9.69 | |
| Advisor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,025.30 | | | | 1.01% | | | $ | 5.07 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,019.79 | | | | 1.01% | | | $ | 5.06 | |
| Forward International Small Companies Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,056.30 | | | | 1.73% | | | $ | 8.82 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,016.22 | | | | 1.73% | | | $ | 8.65 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,057.80 | | | | 1.38% | | | $ | 7.04 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.95 | | | | 1.38% | | | $ | 6.90 | |
| Advisor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,058.50 | | | | 1.38% | | | $ | 7.04 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.95 | | | | 1.38% | | | $ | 6.90 | |
Disclosure of Fund Expenses (Unaudited)
For the Six Months Ended June 30, 2013
| | | | | | | | | | | | | | | | |
| Forward Select EM Dividend Fund | | Beginning
Account Value
01/01/13 | | | Ending
Account Value
06/30/13 | | | Expense
Ratio(a) | | | Expenses Paid
During Period(b)
01/01/13-06/30/13 | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 991.40 | | | | 1.77% | | | $ | 8.74 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,016.02 | | | | 1.77% | | | $ | 8.85 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 992.90 | | | | 1.39% | | | $ | 6.87 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.90 | | | | 1.39% | | | $ | 6.95 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 987.90 | | | | 2.37% | | | $ | 11.68 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,013.04 | | | | 2.37% | | | $ | 11.83 | |
| Advisor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 992.90 | | | | 1.39% | | | $ | 6.87 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.90 | | | | 1.39% | | | $ | 6.95 | |
| Forward Small Cap Equity Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,199.00 | | | | 1.41% | | | $ | 7.69 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.80 | | | | 1.41% | | | $ | 7.05 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,199.60 | | | | 1.11% | | | $ | 6.05 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,019.29 | | | | 1.11% | | | $ | 5.56 | |
| Advisor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,199.90 | | | | 1.12% | | | $ | 6.11 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,019.24 | | | | 1.12% | | | $ | 5.61 | |
| Forward Tactical Enhanced Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,013.20 | | | | 1.82% | | | $ | 9.08 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,015.77 | | | | 1.82% | | | $ | 9.10 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,015.10 | | | | 1.47% | | | $ | 7.34 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.50 | | | | 1.47% | | | $ | 7.35 | |
| Class A | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,012.50 | | | | 1.97% | | | $ | 9.83 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,015.03 | | | | 1.97% | | | $ | 9.84 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,010.20 | | | | 2.42% | | | $ | 12.06 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,012.79 | | | | 2.42% | | | $ | 12.08 | |
| Advisor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,015.50 | | | | 1.49% | | | $ | 7.45 | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.41 | | | | 1.49% | | | $ | 7.45 | |
June 30, 2013
Disclosure of Fund Expenses (Unaudited)
For the Six Months Ended June 30, 2013
| | | | | | | | | | | | | | | | |
| Forward Tactical Growth Fund | | Beginning
Account Value
01/01/13 | | | Ending
Account Value
06/30/13 | | | Expense
Ratio(a) | | | Expenses Paid
During Period(b)
01/01/13-06/30/13 | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,053.50 | | | | 1.74% | | | $ | 8.86 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,016.17 | | | | 1.74% | | | $ | 8.70 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,055.20 | | | | 1.39% | | | $ | 7.08 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.90 | | | | 1.39% | | | $ | 6.95 | |
| Class A | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,052.60 | | | | 1.89% | | | $ | 9.62 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,015.42 | | | | 1.89% | | | $ | 9.44 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,050.50 | | | | 2.34% | | | $ | 11.90 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,013.19 | | | | 2.34% | | | $ | 11.68 | |
| Advisor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,055.20 | | | | 1.41% | | | $ | 7.19 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.80 | | | | 1.41% | | | $ | 7.05 | |
| Forward Commodity Long/Short Strategy Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,098.50 | | | | 1.78% | | | $ | 9.26 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,015.97 | | | | 1.78% | | | $ | 8.90 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,099.80 | | | | 1.43% | | | $ | 7.45 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.70 | | | | 1.43% | | | $ | 7.15 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,095.30 | | | | 2.37% | | | $ | 12.31 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,013.04 | | | | 2.37% | | | $ | 11.83 | |
| Advisor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,100.10 | | | | 1.44% | | | $ | 7.50 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.65 | | | | 1.44% | | | $ | 7.20 | |
| Class Z | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,100.40 | | | | 1.38% | | | $ | 7.19 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.95 | | | | 1.38% | | | $ | 6.90 | |
| Forward Managed Futures Strategy Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,029.00 | | | | 2.42% | | | $ | 12.17 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,012.79 | | | | 2.42% | | | $ | 12.08 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,030.40 | | | | 2.07% | | | $ | 10.42 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,014.53 | | | | 2.07% | | | $ | 10.34 | |
Disclosure of Fund Expenses (Unaudited)
For the Six Months Ended June 30, 2013
| | | | | | | | | | | | | | | | |
| Forward Managed Futures Strategy Fund (continued) | | Beginning
Account Value
01/01/13 | | | Ending
Account Value
06/30/13 | | | Expense
Ratio(a) | | | Expenses Paid
During Period(b)
01/01/13-06/30/13 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,026.20 | | | | 3.02% | | | $ | 15.17 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,009.82 | | | | 3.02% | | | $ | 15.05 | |
| Class Z | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,030.90 | | | | 2.02% | | | $ | 10.17 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,014.78 | | | | 2.02% | | | $ | 10.09 | |
(a) Annualized, based on the Fund’s most recent fiscal half year expenses.
(b) Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year (181), then divided by 365.
(c) The Forward International Dividend Fund began offering Class A shares on May 1, 2013. Actual expenses on this class are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days since the class launched (61), then divided by 365.
June 30, 2013
Summary of Portfolio Holdings (Note 10) (Unaudited)
Under Securities and Exchange Commission Rules, all funds are required to include in their annual and semi-annual shareholder reports a presentation of portfolio holdings in a table, chart or graph by reasonably identifiable categories. The following tables which present portfolio holdings as a percent of total net assets are provided in compliance with such requirements.
| | | | |
| Forward Credit Analysis Long/Short Fund* | | | | |
Municipal Bonds | | | 114.18% | |
Corporate Bonds | | | 1.17% | |
Preferred Stocks | | | 0.17% | |
Net Other Assets and Liabilities | | | -15.52% | |
| | | 100.00% | |
| |
| Forward EM Corporate Debt Fund* | | | | |
Asia | | | 36.39% | |
Latin America | | | 27.47% | |
Middle East | | | 12.28% | |
Africa | | | 7.60% | |
Europe | | | 6.85% | |
United States | | | 6.83% | |
Net Cash & Cash Equivalents | | | 2.58% | |
| | | 100.00% | |
| |
| Forward Emerging Markets Fund | | | | |
Financials | | | 20.12% | |
Industrials | | | 19.03% | |
Consumer Discretionary | | | 11.98% | |
Consumer Staples | | | 8.06% | |
Utilities | | | 7.14% | |
Telecommunications Services | | | 7.11% | |
Energy | | | 6.47% | |
Materials | | | 6.35% | |
Information Technology | | | 4.72% | |
Health Care | | | 3.28% | |
Net Cash & Cash Equivalents | | | 5.74% | |
| | | 100.00% | |
| |
| Forward Endurance Long/Short Fund* | | | | |
Information Technology | | | 54.78% | (a) |
Industrials | | | 14.42% | |
Materials | | | 5.29% | |
Financials | | | 4.64% | |
Health Care | | | 4.49% | |
Exchange-Traded Funds | | | 3.42% | |
Consumer Discretionary | | | 2.13% | |
Energy | | | 1.47% | |
| | | | |
Options Purchased | | | 0.25% | |
Net Cash & Cash Equivalents | | | 9.11% | |
| | | 100.00% | |
| |
| Forward Global Credit Long/Short Fund* | | | | |
Corporate Bonds | | | 57.44% | |
Foreign Government Obligations | | | 13.39% | |
Convertible Corporate Bonds | | | 4.44% | |
Common Stocks | | | 4.25% | |
Asset-Backed Securities | | | 3.12% | |
Net Cash & Cash Equivalents | | | 17.36% | |
| | | 100.00% | |
| |
| Forward Global Dividend Fund | | | | |
United States | | | 43.24% | |
United Kingdom | | | 7.40% | |
Switzerland | | | 5.91% | |
Hong Kong | | | 5.89% | |
Thailand | | | 5.54% | |
Japan | | | 5.08% | |
Indonesia | | | 3.34% | |
Italy | | | 3.20% | |
France | | | 2.72% | |
Netherlands | | | 2.23% | |
China | | | 2.02% | |
Taiwan | | | 2.02% | |
Germany | | | 1.52% | |
Pakistan | | | 1.18% | |
South Korea | | | 1.04% | |
Peru | | | 0.85% | |
Mexico | | | 0.78% | |
Brazil | | | 0.76% | |
South Africa | | | 0.75% | |
Turkey | | | 0.75% | |
Net Cash & Cash Equivalents | | | 3.78% | |
| | | 100.00% | |
| |
| Forward International Dividend Fund | | | | |
Financials | | | 16.84% | |
Consumer Discretionary | | | 14.70% | |
Summary of Portfolio Holdings (Note 10) (Unaudited)
| | | | |
| |
| Forward International Dividend Fund (continued) | | | | |
Industrials | | | 11.51% | |
Telecommunications Services | | | 11.15% | |
Health Care | | | 9.00% | |
Consumer Staples | | | 8.48% | |
Materials | | | 8.16% | |
Utilities | | | 6.50% | |
Energy | | | 5.61% | |
Information Technology | | | 5.26% | |
Mortgage Securities | | | 2.35% | |
Collateralized Mortgage Obligations | | | 0.43% | |
Net Cash & Cash Equivalents | | | 0.01% | |
| | | 100.00% | |
| |
| Forward International Small Companies Fund | | | | |
Industrials | | | 19.54% | |
Consumer Discretionary | | | 18.46% | |
Information Technology | | | 16.51% | |
Financials | | | 15.11% | |
Consumer Staples | | | 8.11% | |
Health Care | | | 6.37% | |
Energy | | | 3.81% | |
Exchange-Traded Funds | | | 3.31% | |
Materials | | | 2.79% | |
Telecommunications Services | | | 1.95% | |
Utilities | | | 1.17% | |
Net Cash & Cash Equivalents | | | 2.87% | |
| | | 100.00% | |
| |
| Forward Select EM Dividend Fund* | | | | |
Financials | | | 15.59% | |
Industrials | | | 12.86% | |
Consumer Staples | | | 10.76% | |
Consumer Discretionary | | | 8.89% | |
Telecommunications Services | | | 7.47% | |
Energy | | | 6.23% | |
Materials | | | 4.56% | |
Information Technology | | | 4.29% | |
Collateralized Mortgage Obligations | | | 4.07% | |
Utilities | | | 3.80% | |
Health Care | | | 2.86% | |
Net Cash & Cash Equivalents | | | 18.62% | |
| | | 100.00% | |
| | | | |
| |
| Forward Small Cap Equity Fund* | | | | |
Consumer Discretionary | | | 18.89% | |
Health Care | | | 18.17% | |
Information Technology | | | 13.26% | |
Financials | | | 13.02% | |
Utilities | | | 6.15% | |
Energy | | | 5.82% | |
Industrials | | | 5.53% | |
Materials | | | 4.74% | |
Consumer Staples | | | 3.07% | |
Affiliated Investment Companies | | | 1.00% | |
Net Cash & Cash Equivalents | | | 10.35% | |
| | | 100.00% | |
| |
| Forward Tactical Enhanced Fund | | | | |
Repurchase Agreements | | | 62.67% | |
Net Cash & Cash Equivalents | | | 37.33% | |
| | | 100.00% | |
| |
| Forward Tactical Growth Fund* | | | | |
U.S. Treasury Bonds & Notes | | | 77.08% | |
Exchange-Traded Funds | | | 14.93% | |
Net Cash & Cash Equivalents | | | 7.99% | |
| | | 100.00% | |
| |
| Forward Commodity Long/Short Strategy Fund* | | | | |
Agency Pass-Through Securities | | | 25.67% | |
U.S. Treasury Bonds & Notes | | | 16.68% | |
Corporate Bonds | | | 16.30% | |
Municipal Bonds | | | 5.10% | |
Collateralized Mortgage Obligations | | | 1.16% | |
Asset-Backed Securities | | | 0.46% | |
Net Cash & Cash Equivalents | | | 34.63% | |
| | | 100.00% | |
| |
| Forward Managed Futures Strategy Fund* | | | | |
Exchange-Traded Funds | | | 59.66% | |
Net Cash & Cash Equivalents | | | 40.34% | |
| | | 100.00% | |
These allocations may not reflect the current or future position of the portfolios.
* Weightings reflect long positions and excludes securities sold short, short-term instruments and derivative instruments.
(a) When sector categorization is broken down by industry, no industry exceeds the 25% maximum specified in the Statement of Additional Information.
June 30, 2013
Portfolio of Investments (Note 10) (Unaudited)
Forward Credit Analysis Long/Short Fund
| | | | | | | | | | |
| Shares | | | | | | | Value (Note 2) | |
|
| | Preferred Stocks: 0.17% | |
| | Electric: 0.17% | | | | | | |
| | | |
| | 12,188 | | | Southern California Edison Co.(a)(b)
4.630% | | | | $ | 1,238,987 | |
| | | |
| | | | Total Preferred Stocks
(Cost $1,198,994) | | | | | 1,238,987 | |
| | | |
Principal
Amount | | | | | | | | |
| | |
| | Corporate Bonds: 1.17% | | | | | | |
| | Consumer Cyclical: 0.00% | | | | | | |
| | | |
| | $ 250,000 | | | General Motors Corp., Sr. Unsec. Notes
7.200%, 01/15/12(c)(d) | | | | | 0 | |
| | | | | | | | | | |
| | Financials: 0.56% | | | | | | |
| | | |
| | 3,000,000 | | | Nationwide Mutual Insurance Co., Sub. Notes
5.810%, 12/15/24(a)(b)(e) | | | | | 3,052,500 | |
| | | |
| | 1,000,000 | | | Penske Truck Leasing Co. Lp (PTL Finance Corp.), Unsec. Notes
3.750%, 05/11/17(e) | | | | | 1,046,927 | |
| | | |
| | | | | | | | | 4,099,427 | |
| | | | | | | | | | |
| | Industrials: 0.61% | | | | | | |
| | | |
| | 4,000,000 | | | Enterprise Products Operating Llc, Gtd. Notes, Series B
7.034%, 01/15/68(a)(b) | | | | | 4,494,400 | |
| | | |
| | | | Total Corporate Bonds
(Cost $7,682,814) | | | | | 8,593,827 | |
| | |
| | Municipal Bonds: 114.18% | | | | | | |
| | Alaska: 2.22% | | | | | | |
| | | |
| | 7,170,000 | | | Northern Alaska Tobacco Securitization Corp., Revenue Bonds (Tobacco Settlement Asset Backed), Series A
5.000%, 06/01/32(a) | | | | | 6,154,943 | |
| | | |
| | 12,900,000 | | | 5.000%, 06/01/46(a) | | | | | 10,155,267 | |
| | | |
| | | | | | | | | 16,310,210 | |
| | | | | | | | | | |
| | Arizona: 0.93% | | | | | | |
| | | |
| | 6,285,000 | | | Salt Verde, Arizona, Financial Corp., Senior Gas Revenue Bonds
5.000%, 12/01/37 | | | | | 6,240,879 | |
| | | |
| | 500,000 | | | 5.250%, 12/01/20 | | | | | 561,525 | |
| | | |
| | | | | | | | | 6,802,404 | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
| | California: 19.43% | | | | | | |
| | | |
| | $ 5,750,000 | | | Alameda County Joint Powers Authority, Lease Revenue Bonds (Build America Bonds-Recovery Zone Economic Development), Series 49
7.046%, 12/01/44(a) | | | | $ | 6,725,660 | |
| | | |
| | 14,590,000 | | | California County Tobacco Securitization Agency, Convertible Asset-Backed Revenue Bonds, (Los Angeles County)
5.600%, 06/01/36 | | | | | 12,676,959 | |
| | | |
| | 5,500,000 | | | 5.650%, 06/01/41 | | | | | 4,611,915 | |
| | | |
| | 500,000 | | | California Educational Facilities Authority, General Obligation Revenue Bonds (San Francisco University)
5.000%, 10/01/21 | | | | | 574,505 | |
| | | |
| | 2,800,000 | | | California Housing Finance Agency, Revenue Bonds (Alternative Minimum Tax Home Mortgage), Series K
5.500%, 02/01/42 | | | | | 2,885,484 | |
| | | |
| | 1,425,000 | | | California State Health Facilities Financing Authority, Revenue Bonds (Catholic Health Care West), Series J
5.625%, 07/01/32(a) | | | | | 1,469,246 | |
| | | |
| | 2,320,000 | | | California State Pollution Control Financing Authority, Revenue Bonds (Refunding Pacific Gas-D-Rmkt)
4.750%, 12/01/23 | | | | | 2,428,530 | |
| | | |
| | 2,000,000 | | | California State Pollution Control Financing Authority, Water Furnishing Revenue Bonds
5.000%, 07/01/37 | | | | | 1,953,560 | |
| | | |
| | 9,000,000 | | | 5.000%, 07/01/37(a)(e) | | | | | 8,236,530 | |
| | | |
| | 6,000,000 | | | California State Public Works Board, Lease Revenue Bonds (Various Capital Project), Series A
5.000%, 04/01/37(a) | | | | | 6,127,440 | |
| | | |
| | 1,500,000 | | | California State Public Works Board, Lease Revenue Bonds, (Judicial Council Project), Series A
5.000%, 03/01/38 | | | | | 1,529,850 | |
| | | |
| | 1,800,000 | | | California State Public Works Board, Revenue Bonds (Build America Bonds), Series G-2
8.361%, 10/01/34(a) | | | | | 2,297,016 | |
| | | | |
| June 30, 2013 | | 24 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward Credit Analysis Long/Short Fund
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
| | California (continued): 19.43% | | | | | | |
| | | |
| | $ 2,000,000 | | | California State Public Works Board, Revenue Bonds, Series A-1
5.750%, 03/01/30(a) | | | | $ | 2,220,040 | |
| | | |
| | 3,500,000 | | | California Statewide Communities Development Authority, Revenue Bonds (Various Kaiser Rmkt), Series C
5.250%, 08/01/31 | | | | | 3,586,660 | |
| | | |
| | 5,510,000 | | | Golden State Tobacco Securitization Corp., Asset-Backed Revenue Bonds (California Enhanced Tobacco Settlement), Series A
5.000%, 06/01/45 | | | | | 5,725,551 | |
| | | |
| | 11,535,000 | | | Golden State Tobacco Securitization Corp., Asset-Backed Revenue Bonds (California Tobacco Settlement), Sr. Series A-1
4.500%, 06/01/27 | | | | | 10,829,058 | |
| | | |
| | 21,115,000 | | | 5.125%, 06/01/47 | | | | | 16,293,179 | |
| | | |
| | 13,280,000 | | | Golden State Tobacco Securitization Corp., Asset-Backed Revenue Bonds (California Tobacco Settlement), Sr. Series A-2, VRDN
5.300%, 06/01/37(b) | | | | | 11,217,085 | |
| | | |
| | 1,000,000 | | | Long Beach, California Bond Finance Authority, Revenue Bonds, Series A
5.000%, 11/15/15(a) | | | | | 1,069,950 | |
| | | |
| | 2,725,000 | | | Los Angeles Convention & Exhibit Center Authority, Lease Revenue Bonds, Series A
5.125%, 08/15/22(a) | | | | | 2,982,785 | |
| | | |
| | 6,000,000 | | | Los Angeles Department of Water & Power, Waterworks Revenue Bonds, Series B
5.000%, 07/01/43(a) | | | | | 6,310,560 | |
| | | |
| | 2,500,000 | | | Los Angeles Regional Airports Improvement Corp., Lease Revenue Bonds, Series C, VRDN
7.500%, 12/01/24(b) | | | | | 2,496,750 | |
| | | |
| | 8,800,000 | | | Northern California Gas Authority, No. 1 Revenue Bonds, VRDN
0.910%, 07/01/27(a)(b) | | | | | 7,456,328 | |
| | | |
| | 9,960,000 | | | Northern California Tobacco Securitization Authority, Asset-Backed Revenue Bonds, Series A-1
5.500%, 06/01/45 | | | | | 8,203,255 | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
| | | |
| | $1,925,000 | | | State of California Municipal Bonds, General Obligation Revenue Bonds (Build America Bonds)
5.250%, 04/01/14(a) | | | | $ | 1,993,876 | |
| | | |
| | 8,170,000 | | | 7.550%, 04/01/39(a) | | | | | 10,948,127 | |
| | | |
| | | | | | | | | 142,849,899 | |
| | | | | | | | | | |
| | Colorado: 0.75% | | | | | | |
| | | |
| | 2,365,000 | | | Denver City & County, Special Facilities Airport Revenue Bonds (United Airlines Project), Series A
5.250%, 10/01/32 | | | | | 2,246,679 | |
| | | |
| | 2,885,000 | | | Denver Colorado Health & Hospital Authority Healthcare, Revenue Bonds, Series B, VRDN
1.284%, 12/01/33(a)(b) | | | | | 2,599,356 | |
| | | |
| | 590,000 | | | Public Authority for Colorado Energy, Natural Gas Purchase Revenue Bonds
5.750%, 11/15/18 | | | | | 642,068 | |
| | | |
| | | | | | | | | 5,488,103 | |
| | | | | | | | | | |
| | Connecticut: 1.59% | | | | | | |
| | | |
| | 5,015,000 | | | Connecticut State Health & Educational Facility Authority, Revenue Bonds (Hartford Heath Care), Series A
5.000%, 07/01/41(a) | | | | | 5,124,327 | |
| | | |
| | 5,400,000 | | | Connecticut State Health & Educational Facility Authority, Revenue Bonds (Stamford Hospital), Series I
5.000%, 07/01/30(a) | | | | | 5,576,850 | |
| | | |
| | 950,000 | | | Connecticut State Health & Educational Facility Authority, Revenue Bonds (Yale-New Haven Hospital), Insured Ambac Indemnity Corp., Series J-1
5.000%, 07/01/26(a) | | | | | 1,007,380 | |
| | | |
| | | | | | | | | 11,708,557 | |
| | | | | | | | | | |
| | Florida: 1.35% | | | | | | |
| | | |
| | 5,000,000 | | | Broward County Florida, Airport System Revenue Bonds, Series Q-1
5.000%, 10/01/37(a) | | | | | 5,206,250 | |
| | | |
| | 1,545,000 | | | Citizens Property Insurance Corp., Sr. Sec. Revenue Bonds, Series A-1
5.250%, 06/01/17 | | | | | 1,720,636 | |
| | | |
| | 700,000 | | | 6.000%, 06/01/16(a) | | | | | 782,369 | |
| | | | |
| See Notes to Financial Statements | | 25 | | June 30, 2013 |
Portfolio of Investments (Note 10) (Unaudited)
Forward Credit Analysis Long/Short Fund
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
| | Florida (continued): 1.35% | | | | | | |
| | | |
| | $2,180,000 | | | Hillsborough County Florida Industrial Development Authority, Hospital Revenue Bonds (Tampa General Hospital Project), Series A
5.000%, 10/01/34(a) | | | | $ | 2,191,990 | |
| | | |
| | | | | | | | | 9,901,245 | |
| | | | | | | | | | |
| | Georgia: 3.74% | | | | | | |
| | | |
| | 5,710,000 | | | City of Atlanta, Georgia Water & Wastewater Revenue Bonds, Series A
5.500%, 11/01/27(a) | | | | | 6,471,029 | |
| | | |
| | 6,600,000 | | | Municipal Electric Authority of Georgia, Revenue Bonds (Build America Bonds)
6.655%, 04/01/57(a) | | | | | 7,046,952 | |
| | | |
| | 7,600,000 | | | Municipal Electric Authority of Georgia, Revenue Bonds (Build America Bonds, Plant Vogtle Units 3&4 Project), Series P
7.055%, 04/01/57(a) | | | | | 7,491,244 | |
| | | |
| | 6,000,000 | | | Municipal Electric Authority of Georgia, Revenue Bonds, (Build America Bonds, Plant Vogtle Units 3&4 Project), Series J
6.637%, 04/01/57(a) | | | | | 6,479,160 | |
| | | |
| | | | | | | | | 27,488,385 | |
| | | | | | | | | | |
| | Guam: 1.03% | | | | | | |
| | | |
| | 5,000,000 | | | Guam Government Municipal Bonds, General Obligation Unlimited, Series A
7.000%, 11/15/39(a) | | | | | 5,406,200 | |
| | | |
| | 2,100,000 | | | Guam Government Municipal Bonds, Series A
6.000%, 11/15/19(a) | | | | | 2,198,007 | |
| | | |
| | | | | | | | | 7,604,207 | |
| | | | | | | | | | |
| | Illinois: 0.59% | | | | | | |
| | | |
| | 500,000 | | | Illinois State Finance Authority, Revenue Bonds (Northwestern Memorial Healthcare)
5.000%, 08/15/43 | | | | | 523,070 | |
| | | |
| | 675,000 | | | Railsplitter Tobacco Settlement Authority, Revenue Bonds
5.000%, 06/01/17 | | | | | 753,502 | |
| | | |
| | 3,000,000 | | | State of Illinois, General Obligation Unlimited Bonds (Build America Bonds)
6.630%, 02/01/35 | | | | | 3,097,140 | |
| | | |
| | | | | | | | | 4,373,712 | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
| | Indiana: 0.55% | | | | | | |
| | | |
| | $ 3,835,000 | | | Indiana Finance Authority Finance Authority, Hospital Revenue Bonds (Parkview Health System)
5.000%, 05/01/29 | | | | $ | 4,059,117 | |
| | | | | | | | | | |
| | Iowa: 4.61% | | | | | | |
| | | |
| | 1,000,000 | | | Iowa Finance Authority, Midwestern Disaster Area Revenue Bonds (Iowa Fertilizer Co., Project)
5.000%, 12/01/19 | | | | | 998,870 | |
| | | |
| | 6,000,000 | | | 5.250%, 12/01/25 | | | | | 5,897,760 | |
| | | |
| | 3,000,000 | | | 5.500%, 12/01/22 | | | | | 3,024,960 | |
| | | |
| | 9,375,000 | | | Iowa Tobacco Settlement Authority, Asset-Backed Revenue Bonds (Capital Appreciation), Series B
5.600%, 06/01/34 | | | | | 8,397,375 | |
| | | |
| | 11,720,000 | | | Iowa Tobacco Settlement Authority, Asset-Backed Revenue Bonds, Series A
6.500%, 06/01/23 | | | | | 11,256,826 | |
| | | |
| | 5,000,000 | | | Iowa Tobacco Settlement Authority, Asset-Backed Revenue Bonds, Series C
5.625%, 06/01/46 | | | | | 4,348,200 | |
| | | |
| | | | | | | | | 33,923,991 | |
| | | | | | | | | | |
| | Kentucky: 1.00% | | | | | | |
| | | |
| | 2,675,000 | | | Kentucky Economic Development Finance Authority, Revenue Bonds (Baptist Healthcare System), Series A
5.375%, 08/15/24(a) | | | | | 2,976,874 | |
| | | |
| | 1,285,000 | | | Kentucky Housing Corp., Housing Revenue Bonds, Series A
4.250%, 07/01/33 | | | | | 1,285,000 | |
| | | |
| | 3,025,000 | | | Louisville & Jefferson County, Kentucky, Metropolitan Government Health System Revenue Bonds (Norton Healthcare, Inc.)
5.250%, 10/01/36(a) | | | | | 3,113,723 | |
| | | |
| | | | | | | | | 7,375,597 | |
| | | | | | | | | | |
| | Louisiana: 2.36% | | | | | | |
| | | |
| | 1,475,000 | | | Louisiana Local Government Environmental Facilities & Community Development Authority, Revenue Bonds, (Westlake Chemical Corp., Project)
6.750%, 11/01/32 | | | | | 1,585,477 | |
| | | | |
| June 30, 2013 | | 26 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward Credit Analysis Long/Short Fund
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
| | Louisiana (continued): 2.36% | | | | | | |
| | | |
| | $2,100,000 | | | Louisiana Public Facilities Authority, Revenue Bonds (Christus Health), Series A
6.000%, 07/01/29(a) | | | | $ | 2,288,034 | |
| | | |
| | 1,675,000 | | | Louisiana Public Facilities Authority, Revenue Bonds (Franciscan Missionaries Project)
6.750%, 07/01/39 | | | | | 1,891,712 | |
| | | |
| | 3,000,000 | | | Louisiana Public Facilities Authority, Revenue Bonds (Ochsner Clinic Foundation Project)
6.250%, 05/15/31(a) | | | | | 3,418,980 | |
| | | |
| | 3,730,000 | | | Louisiana Public Facilities Authority, Revenue Bonds (Ochsner Clinic Foundation Project), Series A
5.250%, 05/15/38(a) | | | | | 3,837,387 | |
| | | |
| | 3,000,000 | | | Louisiana, Tobacco Settlement Financing Corp., Revenue Bonds (Asset Backed), Series 2001B
5.875%, 05/15/39 | | | | | 3,000,000 | |
| | | |
| | 1,300,000 | | | St. John Baptist Parish, Louisiana Revenue Bonds (Marathon Oil Corp.), Series A
5.125%, 06/01/37 | | | | | 1,306,565 | |
| | | |
| | | | | | | | | 17,328,155 | |
| | | | | | | | | | |
| | Maine: 1.22% | | | | | | |
| | | |
| | 5,875,000 | | | Maine State Health & Higher Educational Facilities Authority, Revenue Bonds (Eastern Maine Medical Center Obligation Group)
5.000%, 07/01/43(a) | | | | | 5,875,000 | |
| | | |
| | 2,675,000 | | | Maine State Health & Higher Educational Facilities Authority, Revenue Bonds (Maine General Medical Center)
6.750%, 07/01/36(a) | | | | | 3,075,394 | |
| | | |
| | | | | | | | | 8,950,394 | |
| | | | | | | | | | |
| | Maryland: 0.69% | | | | | | |
| | | |
| | 5,005,000 | | | Maryland State Health & Higher Educational Facilities Authority, Revenue Bonds (University of Maryland Medical Systems), Series A
5.000%, 07/01/43(a) | | | | | 5,051,897 | |
| | | | | | | | | | |
| | Massachusetts: 0.51% | | | | | | |
| | | |
| | 3,280,000 | | | Massachusetts Development Finance Agency, Revenue Bonds (Tufts Medical Center), Series I
6.250%, 01/01/27(a) | | | | | 3,767,539 | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
| | Michigan: 0.46% | | | | | | |
| | | |
| | $2,200,000 | | | Detroit Water & Sewerage Department Sewerage Disposal System, Revenue and Revenue Refunding Sr. Lien Bonds, Series A
5.250%, 07/01/39 | | | | $ | 2,109,734 | |
| | | |
| | 1,225,000 | | | Michigan State Hospital Finance Authority, Revenue Bonds (Henry Ford Health System), Series A
5.250%, 11/15/32(a) | | | | | 1,262,595 | |
| | | |
| | | | | | | | | 3,372,329 | |
| | | | | | | | | | |
| | Mississippi: 0.47% | | | | | | |
| | | |
| | 2,990,000 | | | Mississippi Development Bank, Revenue Bonds (Magnolia Regional Health Center), Series A
6.500%, 10/01/31(a) | | | | | 3,458,055 | |
| | | | | | | | | | |
| | Missouri: 0.13% | | | | | | |
| | | |
| | 850,000 | | | St. Louis, Missouri, Airport Revenue Bonds (Lambert-St. Louis International), Series A-1
6.625%, 07/01/34(a) | | | | | 952,026 | |
| | | | | | | | | | |
| | Nebraska: 1.95% | | | | | | |
| | | |
| | 6,700,000 | | | Nebraska Central Plains Energy Project, Gas Project Revenue Bonds (Project No.3)
5.000%, 09/01/27(a) | | | | | 6,788,038 | |
| | | |
| | 7,500,000 | | | 5.000%, 09/01/32 | | | | | 7,543,350 | |
| | | |
| | | | | | | | | 14,331,388 | |
| | | | | | | | | | |
| | New Hampshire: 0.35% | | | | | | |
| | | |
| | 2,450,000 | | | New Hampshire Business Finance Authority, Pollution Control Revenue Bonds (United Illuminating Co.), Series A, VRDN
4.500%, 07/01/27(a)(b) | | | | | 2,554,492 | |
| | | | | | | | | | |
| | New Jersey: 6.47% | | | | | | |
| | | |
| | 2,000,000 | | | New Jersey Economic Development Authority, Revenue Bonds
5.000%, 06/15/20 | | | | | 2,161,840 | |
| | | |
| | 2,000,000 | | | New Jersey Economic Development Authority, Revenue Bonds (Continental Airlines Project)
5.500%, 06/01/33 | | | | | 1,873,560 | |
| | | |
| | 4,000,000 | | | 5.250%, 09/15/29 | | | | | 3,754,560 | |
| | | |
| | 2,255,000 | �� | | New Jersey State Health Care Facilities Financing Authority, Revenue Bonds (Barnabas Health), Series A
5.625%, 07/01/32(a) | | | | | 2,356,002 | |
| | | | |
| See Notes to Financial Statements | | 27 | | June 30, 2013 |
Portfolio of Investments (Note 10) (Unaudited)
Forward Credit Analysis Long/Short Fund
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
| | New Jersey (continued): 6.47% | | | | | | |
| | | |
| | $ 1,500,000 | | | New Jersey State Transportation Trust Fund Authority, Revenue Bonds, Series B
5.250%, 06/15/24 | | | | $ | 1,697,445 | |
| | | |
| | 3,500,000 | | | New Jersey State Turnpike Authority, Revenue Bonds, Series A
5.000%, 01/01/43 | | | | | 3,628,275 | |
| | | |
| | 12,875,000 | | | New Jersey Tobacco Settlement Financing Corp., Revenue Bonds, Series 1A
4.625%, 06/01/26 | | | | | 11,567,029 | |
| | | |
| | 25,720,000 | | | 5.000%, 06/01/41 | | | | | 20,556,195 | |
| | | |
| | | | | | | | | 47,594,906 | |
| | | | | | | | | | |
| | New York: 8.62% | | | | | | |
| | | |
| | 1,225,000 | | | Albany, New York Industrial Development Agency, Civic Facility Revenue Bonds (St. Peter’s Hospital Project), Series A
5.750%, 11/15/22(a) | | | | | 1,338,251 | |
| | | |
| | 1,000,000 | | | Brooklyn Arena Local Development Corp., Revenue Bonds (Barclays Center Project)
6.000%, 07/15/30(a) | | | | | 1,133,010 | |
| | | |
| | 5,910,000 | | | Erie Tobacco Asset Securitization Corp., Asset-Backed Revenue Bonds (New York Tobacco Settlement), Series E
6.000%, 06/01/28 | | | | | 5,745,347 | |
| | | |
| | 3,395,000 | | | Liberty, New York, Development Corp., Revenue Bonds (Goldman Sachs Headquarters, Llc)
5.250%, 10/01/35 | | | | | 3,626,335 | |
| | | |
| | 5,015,000 | | | New York City, Industrial Development Agency, Special Facilities Revenue Bonds (American Airlines, Inc. - JFK International Airport), VRDN
7.625%, 08/01/25(a)(b)(f) | | | | | 5,631,594 | |
| | | |
| | 7,000,000 | | | 7.750%, 08/01/31(a)(b)(f) | | | | | 7,886,550 | |
| | | |
| | 6,000,000 | | | 8.000%, 08/01/28(a)(b)(f) | | | | | 6,789,840 | |
| | | |
| | 4,220,000 | | | New York City, New York Industrial Development Agency, Revenue Bonds (Queens Baseball Stadium-Pilot Project)
5.000%, 01/01/39 | | | | | 3,778,546 | |
| | | |
| | 2,295,000 | | | 5.000%, 01/01/18(a) | | | | | 2,358,594 | |
| | | |
| | 5,735,000 | | | 5.000%, 01/01/31 | | | | | 5,409,252 | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
| | | |
| | $ 750,000 | | | New York City, New York Municipal Water Finance Authority, Water & Sewer Revenue Bonds, Series EE
6.011%, 06/15/42(a) | | | | $ | 872,003 | |
| | | |
| | 10,000,000 | | | New York City, New York Municipal Water Finance Authority, Water & Sewer Second General Resolution Revenue Bonds,
Series BB
5.000%, 06/15/47(a) | | | | | 10,436,000 | |
| | | |
| | 4,200,000 | | | New York State, Liberty Development Corp., Liberty Revenue Bonds (Port Authority Consolidated Bonds), Series 1WTC-2011
5.000%, 12/15/41(a) | | | | | 4,373,124 | |
| | | |
| | 4,025,000 | | | New York Tobacco Settlement Asset Securitization Corp., Revenue Bonds, Series 1
4.750%, 06/01/22 | | | | | 3,956,012 | |
| | | |
| | | | | | | | | 63,334,458 | |
| | | | | | | | | | |
| | North Carolina: 1.96% | | | | | | |
| | | |
| | 2,000,000 | | | Charlotte, North Carolina Special Facilities Revenue Bonds (Charlotte/Douglas International Airport)
5.600%, 07/01/27 | | | | | 1,895,420 | |
| | | |
| | 2,000,000 | | | Charlotte, North Carolina, Airport Revenue Bonds, Series A
5.000%, 07/01/41 | | | | | 2,117,440 | |
| | | |
| | 3,400,000 | | | North Carolina Medical Care Commission, Health Care Facilities Revenue Bonds (Duke University Health Systems), Series A
5.000%, 06/01/42(a) | | | | | 3,526,072 | |
| | | |
| | 1,000,000 | | | North Carolina Medical Care Commission, Health Care Facilities Revenue Bonds (Vidant Health), Series A
5.000%, 06/01/36 | | | | | 1,037,080 | |
| | | |
| | 1,000,000 | | | North Carolina Medical Care Commission, Health Care Facilities Revenue Bonds (WakeMed Health), Series A
4.125%, 10/01/38 | | | | | 879,310 | |
| | | |
| | 3,860,000 | | | 5.000%, 10/01/31(a) | | | | | 4,073,111 | |
| | | |
| | 825,000 | | | North Carolina Municipal Power Agency, No. 1 Revenue Bonds (Catawba Electric), Series A
5.000%, 01/01/30 | | | | | 869,913 | |
| | | |
| | | | | | | | | 14,398,346 | |
| | | | |
| June 30, 2013 | | 28 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward Credit Analysis Long/Short Fund
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
| | Ohio: 6.42% | | | | | | |
| | | |
| | $ 765,000 | | | American Municipal Power-Ohio, Inc., Revenue Bonds (Build America Bonds)
6.053%, 02/15/43(a) | | | | $ | 824,089 | |
| | | |
| | 1,250,000 | | | American Municipal Power-Ohio, Inc., Revenue Bonds (Fremont Energy Center Project), Series B
5.000%, 02/15/42 | | | | | 1,278,925 | |
| | | |
| | 10,585,000 | | | Buckeye, Ohio Tobacco Settlement Financing Authority, Revenue Bonds (Asset Backed Sr. Turbo), Series A-2
5.875%, 06/01/30 | | | | | 8,977,985 | |
| | | |
| | 10,785,000 | | | 5.875%, 06/01/47 | | | | | 8,728,300 | |
| | | |
| | 2,380,000 | | | 6.000%, 06/01/42 | | | | | 1,991,989 | |
| | | |
| | 7,000,000 | | | Buckeye, Ohio Tobacco Settlement Financing Authority, Revenue Bonds (Asset-Backed Sr. Turbo), Series A-2
5.125%, 06/01/24 | | | | | 6,321,700 | |
| | | |
| | 6,000,000 | | | Buckeye, Ohio Tobacco Settlement Financing Authority, Revenue Bonds (Capital Appreciation Asset-Backed Sr. Convertible), Series A-3, VRDN
6.250%, 06/01/37(b) | | | | | 5,171,460 | |
| | | |
| | 2,230,000 | | | County of Butler, Ohio Hospital Facilities Revenue Bonds (UC Health)
5.500%, 11/01/40 | | | | | 2,274,243 | |
| | | |
| | 1,500,000 | | | County of Hancock, Ohio Hospital Revenue Bonds (Blanchard Valley Regional Health Center)
5.750%, 12/01/26(a) | | | | | 1,700,385 | |
| | | |
| | 5,000,000 | | | JobsOhio Beverage System Statewide Liquor Profits, Revenue Bonds, Sr. Lien, Series A
5.000%, 01/01/38 | | | | | 5,179,700 | |
| | | |
| | 5,000,000 | | | JobsOhio Beverage System Statewide Liquor Profits, Revenue Bonds, Sr. Lien, Series B
3.985%, 01/01/29(a) | | | | | 4,785,150 | |
| | | |
| | | | | | | | | 47,233,926 | |
| | | | | | | | | | |
| | Oklahoma: 0.63% | | | | | | |
| | | |
| | 4,400,000 | | | Oklahoma State Development Finance Authority, Revenue Bonds (St. John Health System, Inc.)
5.000%, 02/15/34(a) | | | | | 4,606,712 | |
| | | | | | | | | | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
| | Pennsylvania: 2.18% | | | | | | |
| | | |
| | $ 1,750,000 | | | Allegheny County Industrial Development Authority, Revenue Bonds (Environmental Improvement)
6.750%, 11/01/24(a) | | | | $ | 1,913,223 | |
| | | |
| | 2,700,000 | | | Pennsylvania State Turnpike, Commission Turnpike Revenue Bonds, Sub-Series B
5.250%, 06/01/39(a) | | | | | 2,808,243 | |
| | | |
| | 2,600,000 | | | Philadelphia Hospitals & Higher Education Facilities Authority, Revenue Bonds (Temple University Health Systems), Series A
5.625%, 07/01/42 | | | | | 2,511,756 | |
| | | |
| | 7,425,000 | | | Philadelphia Hospitals & Higher Education Facilities Authority, Revenue Bonds (Temple University Health Systems), Series B
5.500%, 07/01/26 | | | | | 7,688,216 | |
| | | |
| | 1,000,000 | | | 6.250%, 07/01/23 | | | | | 1,086,150 | |
| | | |
| | | | | | | | | 16,007,588 | |
| | | | | | | | | | |
| | Puerto Rico: 20.94% | | | | | | |
| | | |
| | 6,000,000 | | | Children’s Trust Fund, Asset Backed Revenue Bonds, Series A
0.000%, 05/15/50 | | | | | 420,720 | |
| | | |
| | 5,500,000 | | | Puerto Rico Commonwealth Aqueduct & Sewer Authority, Revenue Bonds, Sr. Lien, Series A
5.000%, 07/01/46 | | | | | 4,590,795 | |
| | | |
| | 10,135,000 | | | 5.250%, 07/01/42 | | | | | 8,583,534 | |
| | | |
| | 6,740,000 | | | 5.750%, 07/01/37 | | | | | 6,190,960 | |
| | | |
| | 3,875,000 | | | 6.000%, 07/01/44 | | | | | 3,652,304 | |
| | | |
| | 2,000,000 | | | Puerto Rico Commonwealth, General Obligation Unlimited Bonds (Public Improvement), Series A
5.500%, 07/01/32(a) | | | | | 1,898,400 | |
| | | |
| | 6,000,000 | | | 5.750%, 07/01/28 | | | | | 5,922,960 | |
| | | |
| | 7,500,000 | | | 5.750%, 07/01/41 | | | | | 6,997,725 | |
| | | |
| | 5,000,000 | | | Puerto Rico Commonwealth, General Obligation Unlimited Bonds (Public Improvement), Series C
6.000%, 07/01/39 | | | | | 4,922,400 | |
| | | | |
| See Notes to Financial Statements | | 29 | | June 30, 2013 |
Portfolio of Investments (Note 10) (Unaudited)
Forward Credit Analysis Long/Short Fund
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
| | Puerto Rico (continued): 20.94% | | | | | | |
| | | |
| | $7,500,000 | | | Puerto Rico Commonwealth Government Development Bank, Revenue Bonds, Taxable Sr. Notes, Series A
4.375%, 02/01/19 | | | | $ | 7,010,100 | |
| | | |
| | 1,550,000 | | | Puerto Rico Commonwealth Highway & Transportation Authority, Transportation Revenue Bonds, Series L
5.250%, 07/01/38(a) | | | | | 1,391,233 | |
| | | |
| | 4,105,000 | | | Puerto Rico Commonwealth Highway & Transportation Authority, Transportation Revenue Bonds, Series N
5.250%, 07/01/39(a) | | | | | 3,667,612 | |
| | | |
| | 1,800,000 | | | Puerto Rico Commonwealth Infrastructure Financing Authority, Special Tax Revenue Bonds, Insured Ambac Indemnity Corp., Series C
5.500%, 07/01/24(a) | | | | | 1,763,694 | |
| | | |
| | 475,000 | | | 5.500%, 07/01/25(a) | | | | | 463,605 | |
| | | |
| | 1,300,000 | | | Puerto Rico Commonwealth Infrastructure Financing Authority, Special Tax Revenue Bonds, Series C
5.500%, 07/01/16(a) | | | | | 1,346,345 | |
| | | |
| | 6,200,000 | | | Puerto Rico Electric Power Authority, Power Revenue Bonds, Series CCC
5.250%, 07/01/27(a) | | | | | 5,916,846 | |
| | | |
| | 5,000,000 | | | Puerto Rico Electric Power Authority, Power Revenue Bonds, Series TT
5.000%, 07/01/32 | | | | | 4,570,000 | |
| | | |
| | 2,900,000 | | | Puerto Rico Electric Power Authority, Power Revenue Bonds, Series UU,
0.890%, 07/01/31(a)(b) | | | | | 2,003,523 | |
| | | |
| | 2,500,000 | | | Puerto Rico Electric Power Authority, Power Revenue Bonds, Series VV
5.250%, 07/01/29 | | | | | 2,323,375 | |
| | | |
| | 1,250,000 | | | Puerto Rico Electric Power Authority, Power Revenue Bonds, Series WW
5.250%, 07/01/25(a) | | | | | 1,214,275 | |
| | | |
| | 4,000,000 | | | Puerto Rico Electric Power Authority, Power Revenue Bonds, Series ZZ
5.250%, 07/01/19 | | | | | 4,147,560 | |
| | | |
| | 1,855,000 | | | Puerto Rico Infrastructure Financing Authority, Revenue Bonds (Ports Authority), Series B
5.250%, 12/15/26 | | | | | 1,719,084 | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
| | | |
| | $17,120,000 | | | Puerto Rico Infrastructure Financing Authority, Special Tax Revenue Bonds, Capital Appreciation, Series A
0.000%, 07/01/36 | | | | $ | 3,449,338 | |
| | | |
| | 625,000 | | | Puerto Rico Infrastructure Financing Authority, Special Tax Revenue Bonds, Series B
5.000%, 07/01/18 | | | | | 628,444 | |
| | | |
| | 900,000 | | | Puerto Rico Public Buildings Authority, Guaranteed Revenue Bonds (Government Facilities), Insured XL Capital Assurance, Inc., Series H
5.250%, 07/01/13(a) | | | | | 900,000 | |
| | | |
| | 3,750,000 | | | Puerto Rico Public Buildings Authority, Guaranteed Revenue Bonds (Government Facilities), Sereis S
5.875%, 07/01/39 | | | | | 3,631,200 | |
| | | |
| | 6,250,000 | | | Puerto Rico Public Buildings Authority, Guaranteed Revenue Bonds (Government Facilities), Series M-2, VRDN
5.750%, 07/01/34(b) | | | | | 6,440,625 | |
| | | |
| | 5,800,000 | | | Puerto Rico Public Buildings Authority, Guaranteed Revenue Bonds (Government Facilities), Series P
6.125%, 07/01/23 | | | | | 5,935,488 | |
| | | |
| | 1,000,000 | | | Puerto Rico Public Buildings Authority, Guaranteed Revenue Bonds (Government Facilities), Series S
6.000%, 07/01/41 | | | | | 978,770 | |
| | | |
| | 7,905,000 | | | Puerto Rico Public Finance Corp., Revenue Bonds (Commonwealth Appropriation), Series B
5.500%, 08/01/31 | | | | | 7,375,681 | |
| | | |
| | 5,000 | | | Puerto Rico Sales Tax Financing Corp., Prerefunded Sales Tax Revenue Bonds (First Subordinate), Series A
5.500%, 08/01/28(a) | | | | | 6,115 | |
| | | |
| | 80,000,000 | | | Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue Bonds (Capital Appreciation), Series A
0.000%, 08/01/54 | | | | | 6,160,000 | |
| | | |
| | 18,000,000 | | | 0.000%, 08/01/44 | | | | | 2,849,400 | |
| | | | |
| June 30, 2013 | | 30 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward Credit Analysis Long/Short Fund
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
| | Puerto Rico (continued): 20.94% | | | | | | |
| | | |
| | $ 4,735,000 | | | Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue Bonds (First Subordinate), Series A
5.375%, 08/01/39 | | | | $ | 4,736,089 | |
| | | |
| | 10,875,000 | | | 5.500%, 08/01/42(a) | | | | | 10,922,089 | |
| | | |
| | 6,400,000 | | | 5.750%, 08/01/37 | | | | | 6,557,696 | |
| | | |
| | 4,050,000 | | | 6.000%, 08/01/42 | | | | | 4,223,218 | |
| | | |
| | 7,100,000 | | | 6.500%, 08/01/44 | | | | | 7,621,211 | |
| | | |
| | 795,000 | | | Puerto Rico Sales Tax Financing Corp., Unrefunded Sales Tax Revenue Bonds (First Subordinate), Series A
5.500%, 08/01/28(a) | | | | | 831,244 | |
| | | |
| | | | | | | | | 153,963,658 | |
| | | | | | | | | | |
| | South Carolina: 0.19% | | | | | | |
| | | |
| | 1,255,000 | | | South Carolina State Jobs-Economic Development Authority, Hospital Revenue Bonds (Palmetto Health), Series A
6.500%, 08/01/39 | | | | | 1,420,635 | |
| | | | | | | | | | |
| | Tennessee: 2.80% | | | | | | |
| | | |
| | 3,290,000 | | | Johnson City Health & Educational Facilities Board, First Mortgage Revenue Bonds (Mountain States Health Alliance), Series A
5.500%, 07/01/31(a) | | | | | 3,427,950 | |
| | | |
| | 2,000,000 | | | Johnson City Health & Educational Facilities Board, Hospital Revenue Bonds (Mountain States Health Alliance)
6.000%, 07/01/38 | | | | | 2,130,180 | |
| | | |
| | 8,400,000 | | | 6.500%, 07/01/38 | | | | | 9,203,376 | |
| | | |
| | 5,835,000 | | | Sullivan County, Tennessee, Health Educational & Housing Facilities Board, Hospital Revenue Bonds (Wellmont Health System Project), Series C
5.250%, 09/01/36(a) | | | | | 5,844,686 | |
| | | |
| | | | | | | | | 20,606,192 | |
| | | | | | | | | | |
| | Texas: 11.16% | | | | | | |
| | | |
| | 2,000,000 | | | Brazos River Authority Texas, Pollution Control Revenue Bonds (Refunding Texas Electric Co.-A-Rmkt)
8.250%, 10/01/30 | | | | | 160,000 | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
| | | |
| | $ 2,000,000 | | | Central Texas Regional Mobility Authority, Revenue Bonds, Sr. Lien, Series A
5.000%, 01/01/43 | | | | $ | 1,928,320 | |
| | | |
| | 2,250,000 | | | Central Texas Regional Mobility Authority, Sr. Lien Revenue Bonds
5.750%, 01/01/31(a) | | | | | 2,455,627 | |
| | | |
| | 2,000,000 | | | City Public Service Board of San Antonio, Texas Electric & Gas Systems Revenue Bonds,
Jr. Lien
5.000%, 02/01/43 | | | | | 2,092,460 | |
| | | |
| | 3,000,000 | | | Houston, Texas Airport Systems, Revenue Bonds (Special Facilities Continental Airlines, Inc., Terminal Projects)
6.625%, 07/15/38 | | | | | 3,127,740 | |
| | | |
| | 1,100,000 | | | Love Field Airport Modernization Corp., Special Facilities Revenue Bonds (Southwest Airlines Co. Project)
5.000%, 11/01/28 | | | | | 1,096,425 | |
| | | |
| | 2,700,000 | | | North Central Texas Health Facility Development Corp., Hospital Revenue Bonds (Children’s Medical Center of Dallas Project)
5.000%, 08/15/32(a) | | | | | 2,895,912 | |
| | | |
| | 10,950,000 | | | North Texas Tollway Authority, Revenue Bonds (Build America Bonds), Sub-Lien, Series B-2
8.910%, 02/01/30(a) | | | | | 12,647,140 | |
| | | |
| | 1,200,000 | | | North Texas Tollway Authority, Revenue Bonds, Sub-Lien, Series A
6.250%, 02/01/23 | | | | | 1,333,512 | |
| | | |
| | 4,250,000 | | | State of Texas, Private Activity Bond Surface Transportation Corp., Revenue Bonds (Sr. Lien LBJ Infrastructure Group)
7.000%, 06/30/40 | | | | | 5,001,103 | |
| | | |
| | 1,500,000 | | | Texas Municipal Gas Acquisition & Supply Corp., Gas Supply Revenue Bonds, Series A
5.000%, 12/15/16 | | | | | 1,625,775 | |
| | | |
| | 10,100,000 | | | Texas Municipal Gas Acquisition & Supply Corp., Gas Supply Revenue Bonds, Sr. Lien,
Series B, VRDN
0.883%, 12/15/26(a)(b) | | | | | 8,630,046 | |
| | | | |
| See Notes to Financial Statements | | 31 | | June 30, 2013 |
Portfolio of Investments (Note 10) (Unaudited)
Forward Credit Analysis Long/Short Fund
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
| | Texas (continued): 11.16% | | | | | | |
| | | |
| | $3,945,000 | | | Texas Municipal Gas Acquisition & Supply Corp., I, Gas Supply Revenue Bonds, Sr. Lien, Series D
5.625%, 12/15/17 | | | | $ | 4,274,052 | |
| | | |
| | 8,850,000 | | | 6.250%, 12/15/26 | | | | | 10,282,904 | |
| | | |
| | 7,900,000 | | | Texas Municipal Gas Acquisition & Supply Corp., III, Gas Supply Revenue Bonds
5.000%, 12/15/27(a) | | | | | 7,988,796 | |
| | | |
| | 5,000,000 | | | 5.000%, 12/15/29 | | | | | 5,018,550 | |
| | | |
| | 2,500,000 | | | 5.000%, 12/15/30 | | | | | 2,501,800 | |
| | | |
| | 1,900,000 | | | 5.000%, 12/15/32 | | | | | 1,888,258 | |
| | | |
| | 7,000,000 | | | Texas Transportation Commission, Turnpike Systems Revenue Bonds, 1st Tier, Series A
5.000%, 08/15/41(a) | | | | | 7,025,060 | |
| | | |
| | 525,000 | | | Trinity River Authority Texas, Pollution Control Revenue Bonds (Texas Electric Co. Project)
6.250%, 05/01/28(a) | | | | | 35,438 | |
| | | |
| | | | | | | | | 82,008,918 | |
| | | | | | | | | | |
| | Utah: 0.35% | | | | | | |
| | | |
| | 2,500,000 | | | Utah County, Hospital Revenue Bonds (IHC Health Services, Inc.)
5.000%, 05/15/43 | | | | | 2,605,450 | |
| | | | | | | | | | |
| | Virgin Islands: 0.36% | | | | | | |
| | | |
| | 500,000 | | | Virgin Islands Public Finance Authority, Revenue Bonds (Sr. Lien/Capital Projects), Series A-1
5.000%, 10/01/39 | | | | | 517,020 | |
| | | |
| | 2,000,000 | | | Virgin Islands Public Finance Authority, Revenue Bonds (Sr. Lien/Manufacturing Federal Loan Notes), Series A
5.000%, 10/01/29(a) | | | | | 2,106,580 | |
| | | |
| | | | | | | | | 2,623,600 | |
| | | | | | | | | | |
| | Virginia: 4.03% | | | | | | |
| | | |
| | 7,070,000 | | | Tobacco Settlement Financing Corp., Revenue Bonds, Sr. Series B-1
5.000%, 06/01/47 | | | | | 5,091,814 | |
| | | |
| | 3,300,000 | | | Virginia State Small Business Financing Authority, Revenue Bonds (Sr. Lien Elizabeth River Crossings Opco, Llc Project)
5.250%, 01/01/32 | | | | | 3,179,022 | |
| | | |
| | 5,000,000 | | | 5.500%, 01/01/42 | | | | | 4,765,350 | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
| | | |
| | $8,000,000 | | | 6.000%, 01/01/37(a) | | | | $ | 8,133,280 | |
| | | |
| | 9,500,000 | | | Virginia State Small Business Financing Authority, Revenue Bonds (Sr. Lien Express Lanes, Llc Project)
5.000%, 01/01/40(a) | | | | | 8,454,240 | |
| | | |
| | | | | | | | | 29,623,706 | |
| | | | | | | | | | |
| | Washington: 0.97% | | | | | | |
| | | |
| | 7,000,000 | | | Washington State Health Care Facilities Authority, Revenue Bonds (Providence Health & Services), Series A
5.000%, 10/01/42(a) | | | | | 7,150,220 | |
| | | | | | | | | | |
| | West Virginia: 0.19% | | | | | | |
| | | |
| | 1,340,000 | | | County of Pleasants, West Virginia Pollution Control Revenue Bonds (Allegheny Energy Supply Co.), Series F
5.250%, 10/15/37 | | | | | 1,386,042 | |
| | | | | | | | | | |
| | Wisconsin: 0.98% | | | | | | |
| | | |
| | 800,000 | | | University of Wisconsin Hospitals & Clinics Authority, Revenue Bonds, Series A
5.000%, 04/01/38 | | | | | 818,536 | |
| | | |
| | 3,275,000 | | | Wisconsin State General Fund Annual Appropriation, Revenue Bonds, Series A
5.750%, 05/01/33(a) | | | | | 3,747,452 | |
| | | |
| | 2,455,000 | | | Wisconsin State Health & Educational Facilities Authority, Revenue Bonds (Aurora Health Care, Inc.), Series A
5.625%, 04/15/39(a) | | | | | 2,613,249 | |
| | | |
| | | | | | | | | 7,179,237 | |
| | | |
| | | | Total Municipal Bonds
(Cost $865,876,417) | | | | | 839,395,296 | |
| | | |
| | | | Total Investments: 115.52%
(Cost $874,758,225) | | | | | 849,228,110 | |
| | | |
| | | | Net Other Assets and Liabilities: (15.52)% | | | | | (114,079,960 | ) |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 735,148,150 | |
| | | | |
| June 30, 2013 | | 32 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward Credit Analysis Long/Short Fund
| | | | | | | | | | |
Principal Amount | | | | | | | Value (Note 2) | |
| | |
| | Schedule of Securities Sold Short | | | | | | |
| | Corporate Bonds | | | | | | |
| | | |
| | $ (2,000,000) | | | Citigroup, Inc., Sr. Unsec. Notes
4.500%, 01/14/22 | | | | $ | (2,086,248 | ) |
| | | |
| | (2,250,000) | | | Ford Motor Credit Co. Llc., Sr. Unsec. Notes
5.750%, 02/01/21 | | | | | (2,441,088 | ) |
| | | |
| | (2,000,000) | | | Prudential Financial, Inc., Sr. Unsec. Notes, Series Medium-Term Notes
4.500%, 11/15/20 | | | | | (2,134,076 | ) |
| | | | | | | | | (6,661,412 | ) |
| | | | | | | | | | |
| | U.S. Treasury Bonds & Notes | | | | | | |
| | | |
| | (73,400,000) | | | U.S. Treasury Bonds
1.625%, 11/15/22 | | | | | (68,479,925 | ) |
| | | |
| | (39,000,000) | | | 2.750%, 08/15/42 | | | | | (33,713,667 | ) |
| | | |
| | (41,000,000) | | | 2.750%, 11/15/42 | | | | | (35,407,354 | ) |
| | | |
| | (9,000,000) | | | 3.000%, 05/15/42 | | | | | (8,216,019 | ) |
| | | |
| | (15,000,000) | | | U.S. Treasury Notes
0.125%, 04/30/15 | | | | | (14,942,280 | ) |
| | | |
| | (35,000,000) | | | 0.500%, 07/31/17 | | | | | (34,152,335 | ) |
| | | |
| | (22,500,000) | | | 0.625%, 04/30/18 | | | | | (21,736,237 | ) |
| | | |
| | (23,250,000) | | | 2.000%, 11/15/21 | | | | | (22,835,871 | ) |
| | | | | | | | | (239,483,688 | ) |
| | | |
| | | | Total Securities Sold Short
(Proceeds $250,610,352) | | | | $ | (246,145,100 | ) |
Percentages are stated as a percent of net assets.
(a) Security, or portion of security, is being held as collateral for short sales. At period end, the aggregate market value of those securities was $328,726,215, representing 44.72% of net assets.
(b) Interest rate will change at a future date. Interest rate shown reflects the rate in effect at June 30, 2013.
(c) Security determined to be illiquid under the procedures approved by the Fund’s Board of Trustees.
(d) Security in default on interest payments.
(e) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in the ordinary course of business in transactions exempt from registration, normally to qualified institutional buyers. At period end, the aggregate market value of those securities was $12,335,957, representing 1.68% of net assets.
(f) Security in default on prior interest payments, pending the outcome of the bankruptcy filing. Security deemed to be liquid under the procedures approved by the Fund’s Board of Trustees.
Security determined to be illiquid under the procedures approved by the Fund’s Board of Trustees is as follows:
| | | | | | | | | | | | | | |
| Date(s) of Purchase | | Security | | Cost | | | Market Value | | | % of Net
Assets | |
| 08/12/08 | | General Motors Corp., Sr. Unsec. Notes
7.200%, 01/15/12(c)(d) | | $ | 0 | | | $ | 0 | | | | 0.00% | |
Investment Abbreviations:
Gtd. — Guaranteed
Sec. — Secured
Sr. — Senior
Sub. — Subordinated
Unsec. — Unsecured
VRDN — Variable Rate Demand Notes
| | | | |
| See Notes to Financial Statements | | 33 | | June 30, 2013 |
Portfolio of Investments (Note 10) (Unaudited)
Forward EM Corporate Debt Fund
| | | | | | | | | | | | |
| Shares | | | | | | | | Value (Note 2) | |
| | |
| | Common Stocks: 0.94% | | | | | | | | |
| | Colombia: 0.94% | | | | | | | | |
| | | |
| | 162,100 | | | Pacific Rubiales Energy Corp. | | | | | | $ | 2,865,879 | |
| | | |
| | | | Total Common Stocks
(Cost $3,980,292) | | | | | | | 2,865,879 | |
| | | |
Principal
Amount | | | | | Currency | | | | |
| |
| | Foreign Government Obligations: 4.80% | | | | | |
| | Argentina: 3.40% | | | | | | | | |
| | | |
| | 200,000 | | | Provincia de Buenos Aires, Sr. Unsec. Notes
10.875%, 01/26/21(a) | | | USD | | | | 133,000 | |
| | | |
| | 11,471,000 | | | 11.750%, 10/05/15(a) | | | USD | | | | 9,578,285 | |
| | | |
| | 40,000,000 | | | Republic of Argentina, GDP-Linked Security 0.000%, 12/15/35(c)(j) | | | ARS | | | | 659,457 | |
| | | |
| | | | | | | | | | | 10,370,742 | |
| | | | | | | | | | | | |
| | Brazil: 1.40% | | | | | | | | |
| | | |
| | 4,400,000 | | | Brazil Minas SPE via State of Minas Gerais, Sec. Notes
5.333%, 02/15/28(d) | | | USD | | | | 4,290,000 | |
| | | |
| | | | Total Foreign Government Obligations
(Cost $16,169,238) | | | | | | | 14,660,742 | |
| | |
| | Asset-Backed Securities: 2.20% | | | | | | | | |
| | China: 2.20% | | | | | | | | |
| | | |
| | 5,000,000 | | | Start CLO, Ltd., Series 2010-6A, Class A
16.284%, 04/01/14(b)(d) | | | USD | | | | 5,151,250 | |
| | | |
| | 1,500,000 | | | Start CLO, Ltd., Series 2011-7A, Class A
15.274%, 06/09/15(b)(d) | | | USD | | | | 1,570,575 | |
| | | |
| | | | | | | | | | | 6,721,825 | |
| | | |
| | | | Total Asset-Backed Securities
(Cost $6,673,592) | | | | | | | 6,721,825 | |
| | |
| | Convertible Corporate Bonds: 1.12% | | | | | | | | |
| | Indonesia: 1.12% | | | | | | | | |
| | | |
| | 4,600,000 | | | Enercoal Resources Pte, Ltd.
9.250%, 08/05/14 | | | USD | | | | 3,427,000 | |
| | | |
| | | | Total Convertible Corporate Bonds
(Cost $4,252,127) | | | | | | | 3,427,000 | |
| | | | | | | | | | | | |
Principal
Amount | | | | | Currency | | | Value (Note 2) | |
| | |
| | Corporate Bonds: 80.51% | | | | | | | | |
| | Argentina: 0.27% | | | | | | | | |
| | | |
| | 1,650,000 | | | Empresa Distribuidora Y
Comercializadora Norte, Sr. Unsec. Notes
9.750%, 10/25/22(a) | | | USD | | | $ | 820,875 | |
| | | | | | | | | | | | |
| | Azerbaijan: 1.93% | | | | | | | | |
| | | |
| | 1,750,000 | | | Azerbaijan Railways, Unsec. Notes
8.250%, 02/18/16(e) | | | USD | | | | 1,837,500 | |
| | | |
| | 4,000,000 | | | International Bank of the Republic of Azerbaijan OJSC Via Rubrika Finance Co., Ltd., Unsec. Notes
8.500%, 10/22/13(a)(e) | | | USD | | | | 4,060,068 | |
| | | |
| | | | | | | | | | | 5,897,568 | |
| | | | | | | | | | | | |
| | Brazil: 2.95% | | | | | | | | |
| | | |
| | 3,750,000 | | | Aralco Finance SA, Sr. Unsec. Notes
10.125%, 05/07/20(d) | | | USD | | | | 3,410,156 | |
| | | |
| | 3,250,000 | | | Marfrig Holding Europe BV, Sr. Unsec. Notes
8.375%, 05/09/18(a) | | | USD | | | | 3,071,250 | |
| | | |
| | 2,800,000 | | | Virgolino de Oliveira Finance, Ltd., Sr. Unsec. Notes
11.750%, 02/09/22(a) | | | USD | | | | 2,541,000 | |
| | | |
| | | | | | | | | | | 9,022,406 | |
| | | | | | | | | | | | |
| | Chile: 2.76% | | | | | | | | |
| | | |
| | 2,900,000 | | | Automotores Gildemeister SA, Sr. Unsec. Notes
8.250%, 05/24/21(a) | | | USD | | | | 2,696,999 | |
| | | |
| | 1,000,000 | | | Banco de Credito e Inversiones, Sr. Unsec. Notes
3.000%, 09/13/17(d) | | | USD | | | | 982,318 | |
| | | |
| | 1,500,000 | | | Banco del Estado de Chile, Sr. Unsec. Notes
2.000%, 11/09/17(d)(e) | | | USD | | | | 1,432,877 | |
| | | |
| | 1,800,000 | | | Corp. Nacional del Cobre de Chile, Sr. Unsec. Notes
3.000%, 07/17/22(d) | | | USD | | | | 1,632,557 | |
| | | |
| | 1,962,931 | | | Inversiones Alsacia SA, Sec. Notes
8.000%, 08/18/18(a) | | | USD | | | | 1,678,306 | |
| | | |
| | | | | | | | | | | 8,423,057 | |
| | | | |
| June 30, 2013 | | 34 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward EM Corporate Debt Fund
| | | | | | | | | | | | |
Principal
Amount | | | | | Currency | | | Value (Note 2) | |
| | China: 4.24% | | | | | | | | |
| | | |
| | 3,000,000 | | | CNOOC Finance 2013, Ltd., Sr. Unsec. Notes
3.000%, 05/09/23 | | | USD | | | $ | 2,714,046 | |
| | | |
| | 4,000,000 | | | Sinopec Capital 2013, Ltd., Sr. Unsec. Notes
4.250%, 04/24/43(d)(e) | | | USD | | | | 3,326,556 | |
| | | |
| | 5,000,000 | | | State Grid Overseas Investment 2013, Ltd., Sr. Unsec. Notes
3.125%, 05/22/23(d) | | | USD | | | | 4,644,185 | |
| | | |
| | 2,270,000 | | | Tencent Holdings, Ltd., Sr. Unsec. Notes
3.375%, 03/05/18(d)(e) | | | USD | | | | 2,266,277 | |
| | | |
| | | | | | | | | | | 12,951,064 | |
| | | | | | | | | | | | |
| | Colombia: 7.38% | | | | | | | | |
| | | |
| | 4,800,000 | | | Avianca Holdings SA, Sr. Unsec Notes
8.375%, 05/10/20(d) | | | USD | | | | 5,004,000 | |
| | | |
| | 3,900,000 | | | Bancolombia SA, Sub. Notes
5.125%, 09/11/22(e) | | | USD | | | | 3,734,250 | |
| | | |
| | 4,000,000 | | | Colombia Telecomunicaciones SA ESP, Sr. Unsec. Notes
5.375%, 09/27/22(d) | | | USD | | | | 3,790,000 | |
| | | |
| | 2,005,000 | | | Gruposura Finance, Sr. Unsec. Notes
5.700%, 05/18/21(a) | | | USD | | | | 2,075,175 | |
| | | |
| | 1,400,000 | | | Pacific Rubiales Energy Corp., Sr. Unsec. Notes
7.250%, 12/12/21(a) | | | USD | | | | 1,487,500 | |
| | | |
| | 6,185,000 | | | Transportadora de Gas Internacional SA ESP, Sr. Unsec. Notes
5.700%, 03/20/22(a)(e) | | | USD | | | | 6,416,938 | |
| | | |
| | | | | | | | | | | 22,507,863 | |
| | | | | | | | | | | | |
| | Hong Kong: 2.19% | | | | | | | | |
| | | |
| | 1,736,000 | | | CFG Investment SAC, Sr. Unsec. Notes
9.750%, 07/30/19(a) | | | USD | | | | 1,571,080 | |
| | | |
| | 4,050,000 | | | 9.750%, 07/30/19(d) | | | USD | | | | 3,665,250 | |
| | | |
| | 1,500,000 | | | Hutchison Whampoa International 12, II Ltd., Sr. Unsec. Notes
2.000%, 11/08/17(d)(e) | | | USD | | | | 1,459,671 | |
| | | |
| | | | | | | | | | | 6,696,001 | |
| | | | | | | | | | | | |
Principal
Amount | | | | | Currency | | | Value (Note 2) | |
| | Indonesia: 2.84% | | | | | | | | |
| | | |
| | 3,996,000 | | | Berau Capital Resources Pte, Ltd., First Lien Notes
12.500%, 07/08/15(a)(e) | | | USD | | | $ | 4,305,690 | |
| | | |
| | 2,000,000 | | | Gajah Tunggal Tbk PT, Sec. Notes
7.750%, 02/06/18(d) | | | USD | | | | 1,995,000 | |
| | | |
| | 1,000,000 | | | Pertamina Persero PT, Sr. Unsec. Notes
5.625%, 05/20/43(d) | | | USD | | | | 870,000 | |
| | | |
| | 1,800,000 | | | Perusahaan Listrik Negara PT, Sr. Unsec. Notes
5.250%, 10/24/42(d) | | | USD | | | | 1,503,000 | |
| | | |
| | | | | | | | | | | 8,673,690 | |
| | | | | | | | | | | | |
| | Israel: 1.14% | | | | | | | | |
| | | |
| | 1,250,000 | | | Altice Finco SA, Sr. Unsec. Notes
9.000%, 06/15/23(d) | | | EUR | | | | 1,618,918 | |
| | | |
| | 1,930,000 | | | Teva Pharmaceutical Finance IV Llc, Sr. Unsec. Notes
2.250%, 03/18/20(e) | | | USD | | | | 1,848,203 | |
| | | |
| | | | | | | | | | | 3,467,121 | |
| | | | | | | | | | | | |
| | Jamaica: 0.34% | | | | | | | | |
| | | |
| | 1,000,000 | | | Digicel Group, Ltd., Sr. Unsec. Notes
8.250%, 09/30/20(d) | | | USD | | | | 1,040,000 | |
| | | | | | | | | | | | |
| | Kazakhstan: 2.19% | | | | | | | | |
| | | |
| | 12,713,000 | | | Tristan Oil, Ltd., Sec. Notes
0.000%, 01/01/16(a)(f) | | | USD | | | | 6,674,325 | |
| | | | | | | | | | | | |
| | Malaysia: 2.96% | | | | | | | | |
| | | |
| | 9,000,000 | | | Special Port Vehicle Sdn Bhd, Asset Backed Bonds, Series 7
5.200%, 07/30/13(g) | | | MYR | | | | 2,831,859 | |
| | | |
| | 21,000,000 | | | Special Port Vehicle Sdn Bhd, Asset Backed Bonds, Series 8
5.300%, 07/30/14(g) | | | MYR | | | | 6,210,005 | |
| | | |
| | | | | | | | | | | 9,041,864 | |
| | | | | | | | | | | | |
| | Mexico: 4.97% | | | | | | | | |
| | | |
| | 1,850,000 | | | BBVA Bancomer SA, Sub. Notes
6.750%, 09/30/22(d)(e) | | | USD | | | | 2,002,625 | |
| | | |
| | 3,550,000 | | | Cemex Espana Luxembourg, First Lien Notes
9.875%, 04/30/19(a) | | | USD | | | | 3,851,750 | |
| | | | |
| See Notes to Financial Statements | | 35 | | June 30, 2013 |
Portfolio of Investments (Note 10) (Unaudited)
Forward EM Corporate Debt Fund
| | | | | | | | | | | | |
Principal
Amount | | | | | Currency | | | Value (Note 2) | |
| | Mexico (continued): 4.97% | | | | | | | | |
| | | |
| | 4,765,000 | | | Grupo Senda Autotransporte SA de CV, Sr. Sec. Notes
10.500%, 10/03/15(a) | | | USD | | | $ | 4,943,688 | |
| | | |
| | 2,750,000 | | | Petroleos Mexicanos, Sr. Unsec. Notes
4.875%, 01/24/22(e) | | | USD | | | | 2,811,875 | |
| | | |
| | 1,750,000 | | | 5.500%, 06/27/44 | | | USD | | | | 1,579,375 | |
| | | |
| | | | | | | | | | | 15,189,313 | |
| | | | | | | | | | | | |
| | Nigeria: 3.17% | | | | | | | | |
| | | |
| | 2,800,000 | | | Fidelity Bank Plc, Sr. Unsec. Notes
6.875%, 05/09/18(d) | | | USD | | | | 2,674,000 | |
| | | |
| | 7,200,000 | | | Sea Trucks Group, Ltd., First Lien Notes
9.000%, 03/26/18(d) | | | USD | | | | 7,020,000 | |
| | | |
| | | | | | | | | | | 9,694,000 | |
| | | | | | | | | | | | |
| | Peru: 2.05% | | | | | | | | |
| | | |
| | 2,000,000 | | | Corp. Lindley SA, Sr. Unsec. Notes
6.750%, 11/23/21(a) | | | USD | | | | 2,185,000 | |
| | | |
| | 1,000,000 | | | Gas Natural de Lima y Callao SA, Sr. Unsec. Notes
4.375%, 04/01/23(d) | | | USD | | | | 905,000 | |
| | | |
| | 3,400,000 | | | Pesquera Exalmar S.A.A., Sr. Unsec. Notes
7.375%, 01/31/20(d) | | | USD | | | | 3,179,000 | |
| | | |
| | | | | | | | | | | 6,269,000 | |
| | | | | | | | | | | | |
| | Poland: 0.89% | | | | | | | | |
| | | |
| | 2,800,000 | | | PKO Finance AB, Sr. Unsec. Notes
4.630%, 09/26/22(d) | | | USD | | | | 2,730,980 | |
| | | | | | | | | | | | |
| | Qatar: 1.63% | | | | | | | | |
| | | |
| | 1,000,000 | | | Qtel International Finance, Ltd., Sr. Unsec. Notes
3.250%, 02/21/23(d)(e) | | | USD | | | | 912,500 | |
| | | |
| | 3,771,500 | | | Ras Laffan Liquefied Natural Gas Co., Ltd. II, Sec. Notes
5.298%, 09/30/20(a)(e) | | | USD | | | | 4,073,220 | |
| | | |
| | | | | | | | | | | 4,985,720 | |
| | | | | | | | | | | | |
| | Russia: 13.98% | | | | | | | | |
| | | |
| | 2,500,000 | | | Alfa Bank OJSC Via Alfa Bond Issuance Plc, Sr. Unsec. Notes
7.750%, 04/28/21(a)(e) | | | USD | | | | 2,587,500 | |
| | | |
| | 160,000,000 | | | 8.625%, 04/26/16(d) | | | RUB | | | | 4,754,577 | |
| | | | | | | | | | | | |
Principal
Amount | | | | | Currency | | | Value (Note 2) | |
| | | |
| | 1,000,000 | | | Bank of Moscow via BOM Capital PL, Sr. Unsec. Notes
6.699%, 03/11/15(a) | | | USD | | | $ | 1,054,950 | |
| | | |
| | 300,000 | | | EDC Finance, Ltd., Sr. Unsec. Notes
4.875%, 04/17/20(d) | | | USD | | | | 275,250 | |
| | | |
| | 1,350,000 | | | Eurasian Development Bank, Sr. Unsec. Notes
7.375%, 09/24/14(a)(e) | | | USD | | | | 1,437,413 | |
| | | |
| | 100,000,000 | | | Federal Grid Co., OJSC via Federal Grid Finance, Ltd., Unsec Notes
8.446%, 03/13/19 | | | RUB | | | | 2,946,350 | |
| | | |
| | 2,000,000 | | | Gazprom OAO Via Gaz Capital SA, Sr. Unsec. Notes
4.375%, 09/19/22(d) | | | USD | | | | 1,841,700 | |
| | | |
| | 1,000,000 | | | 4.950%, 07/19/22(a) | | | USD | | | | 960,000 | |
| | | |
| | 500,000 | | | 4.950%, 07/19/22(d) | | | USD | | | | 480,000 | |
| | | |
| | 2,000,000 | | | 8.125%, 07/31/14(a)(e) | | | USD | | | | 2,129,600 | |
| | | |
| | 2,900,000 | | | Promsvyazbank OJSC Via PSB Finance SA, Sec. Notes
11.250%, 07/08/16 | | | USD | | | | 3,192,610 | |
| | | |
| | 47,000,000 | | | RusHydro Finance, Ltd., Sec. Notes
7.875%, 10/28/15 | | | RUB | | | | 1,414,738 | |
| | | |
| | 2,500,000 | | | RZD Capital, Ltd., Sr. Unsec. Notes
5.700%, 04/05/22(a) | | | USD | | | | 2,596,875 | |
| | | |
| | 2,600,000 | | | Tinkoff Credit Systems Via TCS Finance, Ltd., Sr. Unsec. Notes
10.750%, 09/18/15 | | | USD | | | | 2,760,030 | |
| | | |
| | 3,750,000 | | | Tinkoff Credit Systems Via TCS Finance, Ltd., Sub. Notes
14.000%, 06/06/18 | | | USD | | | | 4,181,250 | |
| | | |
| | 37,500,000 | | | VimpelCom Holdings BV. Sr. Unsec. Notes
9.000%, 02/13/18(d) | | | RUB | | | | 1,130,019 | |
| | | |
| | 1,000,000 | | | VTB Bank OJSC Via VTB Capital SA, Sr. Unsec. Notes
6.000%, 04/12/17(a) | | | USD | | | | 1,042,500 | |
| | | |
| | 1,125,000 | | | 6.000%, 04/12/17(d) | | | USD | | | | 1,172,813 | |
| | | |
| | 6,609,250 | | | Wind Acquisition Holdings Finance SA, First Lien PIK Notes
12.250%, 07/15/17(d) | | | USD | | | | 6,691,866 | |
| | | |
| | | | | | | | | | | 42,650,041 | |
| | | | |
| June 30, 2013 | | 36 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward EM Corporate Debt Fund
| | | | | | | | | | | | |
Principal
Amount | | | | | Currency | | | Value (Note 2) | |
| | Saudi Arabia: 1.69% | | | | | | | | |
| | | |
| | 5,650,000 | | | Saudi Electricity Global Sukuk Co. 2, Unsec. Notes
5.060%, 04/08/43(d) | | | USD | | | $ | 5,155,625 | |
| | | | | | | | | | | | |
| | Singapore: 1.57% | | | | | | | | |
| | | |
| | 1,000,000 | | | Oversea-Chinese Banking Corp. Ltd., Sr. Unsec. Notes
1.625%, 03/13/15(a)(e) | | | USD | | | | 1,013,337 | |
| | | |
| | 1,025,000 | | | Singapore Telecommunications, Ltd., Sr. Unsec. Notes
7.375%, 12/01/31(a)(e) | | | USD | | | | 1,361,902 | |
| | | |
| | 3,000,000 | | | Temasek Financial I, Ltd., Sr. Unsec. Notes
3.375%, 07/23/42(d) | | | USD | | | | 2,409,705 | |
| | | |
| | | | | | | | | | | 4,784,944 | |
| | | | | | | | | | | | |
| | South Africa: 1.29% | | | | | | | | |
| | | |
| | 7,250,000 | | | African Development Bank, Sr. Unsec. Notes
14.000%, 08/25/15 | | | GHS | | | | 3,245,421 | |
| | | |
| | 750,000 | | | Sasol Financing International Plc, Sr. Unsec. Notes
4.500%, 11/14/22 | | | USD | | | | 696,563 | |
| | | |
| | | | | | | | | | | 3,941,984 | |
| | | | | | | | | | | | |
| | South Korea: 3.10% | | | | | | | | |
| | | |
| | 1,800,000 | | | Doosan Infracore Co., Ltd., Sr. Unsec. Notes
3.250%, 10/05/42(b)(e) | | | USD | | | | 1,749,566 | |
| | | |
| | 1,500,000 | | | Korea East-West Power Co., Ltd., Sr. Unsec. Notes
2.500%, 07/16/17(d)(e) | | | USD | | | | 1,465,890 | |
| | | |
| | 1,750,000 | | | Korea Finance Corp., Sr. Unsec. Notes
2.250%, 08/07/17 | | | USD | | | | 1,698,156 | |
| | | |
| | 2,000,000 | | | Korea Resources Corp., Sr. Unsec. Notes
2.125%, 05/02/18(d) | | | USD | | | | 1,890,450 | |
| | | |
| | 1,700,000 | | | Lotte Shopping Co. Ltd., Sr. Unsec. Notes
3.375%, 05/09/17(d)(e) | | | USD | | | | 1,707,494 | |
| | | |
| | 1,000,000 | | | SK Telecom Co., Ltd., Sr. Unsec. Notes
2.125%, 05/01/18(d)(e) | | | USD | | | | 953,839 | |
| | | |
| | | | | | | | | | | 9,465,395 | |
| | | | | | | | | | | | |
Principal
Amount | | | | | Currency | | | Value (Note 2) | |
| | Turkey: 1.40% | | | | | | | | |
| | | |
| | 3,000,000 | | | KOC Holding AS, Sr. Unsec. Notes
3.500%, 04/24/20(a) | | | USD | | | $ | 2,625,000 | |
| | | |
| | 1,800,000 | | | Turkiye Sise ve Cam Fabrikalari AS, Sr. Unsec. Notes
4.250%, 05/09/20(d) | | | USD | | | | 1,647,000 | |
| | | |
| | | | | | | | | | | 4,272,000 | |
| | | | | | | | | | | | |
| | Ukraine: 2.92% | | | | | | | | |
| | | |
| | 2,700,000 | | | Mriya Agro Holding Plc, Sr. Unsec. Notes
9.450%, 04/19/18(a) | | | USD | | | | 2,409,750 | |
| | | |
| | 1,000,000 | | | 9.450%, 04/19/18(d) | | | USD | | | | 892,500 | |
| | | |
| | 2,000,000 | | | Naftogaz Ukraine, Unsec. Notes
9.500%, 09/30/14(e) | | | USD | | | | 2,005,000 | |
| | | |
| | 3,800,000 | | | Ukrlandfarming Plc, Unsec. Notes
10.875%, 03/26/18(d) | | | USD | | | | 3,610,000 | |
| | | |
| | | | | | | | | | | 8,917,250 | |
| | | | | | | | | | | | |
| | United Arab Emirates: 5.89% | | | | | | | | |
| | | |
| | 1,500,000 | | | Dolphin Energy, Ltd., Sec. Notes
5.500%, 12/15/21(d)(e) | | | USD | | | | 1,623,750 | |
| | | |
| | 5,842,306 | | | Doric Nimrod Air, First Lien Notes
5.125%, 11/30/24(d) | | | USD | | | | 5,842,306 | |
| | | |
| | 500,000 | | | Doric Nimrod Air, Sec. Notes
5.250%, 05/30/25(d) | | | USD | | | | 500,000 | |
| | | |
| | 2,000,000 | | | 6.125%, 11/30/21(d) | | | USD | | | | 2,000,000 | |
| | | |
| | 2,500,000 | | | Dubai Electricity & Water Authority, Sr. Unsec. Notes
7.375%, 10/21/20(a)(e) | | | USD | | | | 2,812,500 | |
| | | |
| | 1,750,000 | | | MDC BV, Gtd. Medium-Term Notes
5.750%, 05/06/14(a)(e) | | | USD | | | | 1,813,000 | |
| | | |
| | 3,300,000 | | | Millennium Offshore Services Superholdings Llc, Sec. Notes
9.500%, 02/15/18(d) | | | USD | | | | 3,399,000 | |
| | | |
| | | | | | | | | | | 17,990,556 | |
| | | | | | | | | | | | |
| | United States: 3.76% | | | | | | | | |
| | | |
| | 4,256,874 | | | Continental Airlines 1997-4 Class A Pass Through Trust, Series 974A
6.900%, 07/02/19 | | | USD | | | | 4,469,718 | |
| | | |
| | 1,000,000 | | | MF Global Holdings, Ltd., Sr. Unsec. Notes
6.250%, 08/08/16(h) | | | USD | | | | 488,750 | |
| | | | |
| See Notes to Financial Statements | | 37 | | June 30, 2013 |
Portfolio of Investments (Note 10) (Unaudited)
Forward EM Corporate Debt Fund
| | | | | | | | | | | | |
Principal
Amount | | | | | Currency | | | Value (Note 2) | |
| | United States (continued): 3.76% | | | | | | | | |
| | | |
| | 6,760,000 | | | Trilogy International Partners Llc/Trilogy International Finance, Inc., First Lien Notes
10.250%, 08/15/16(d) | | | USD | | | $ | 6,523,400 | |
| | | |
| | | | | | | | | | | 11,481,868 | |
| | | | | | | | | | | | |
| | Venezuela: 1.01% | | | | | | | | |
| | | |
| | 2,163,000 | | | Petroleos de Venezuela SA, Sr. Unsec. Notes
5.000%, 10/28/15 | | | USD | | | | 1,908,848 | |
| | | |
| | 1,991,250 | | | Sidetur Finance BV, Sr. Unsec. Notes
10.000%, 04/20/16(a) | | | USD | | | | 1,164,881 | |
| | | |
| | | | | | | | | | | 3,073,729 | |
| | | |
| | | | Total Corporate Bonds
(Cost $255,550,402) | | | | | | | 245,818,239 | |
| | |
| | Credit-Linked Notes: 4.78% | | | | | | | | |
| | Nigeria: 3.14% | | | | | | | | |
| | | |
| | 10,721,600 | | | Nigeria Treasury Bills, (Standard Bank) 0.000%, 01/27/14 | | | USD | | | | 9,597,975 | |
| | | | | | | | | | | | |
| | United Kingdom: 1.64% | | | | | | | | |
| | | |
| | 5,000,000 | | | VTB Capital Plc, (International Bank of Azerbaijan OJSC)
5.000%, 06/17/14 | | | USD | | | | 5,000,000 | |
| | | |
| | | | Total Credit-Linked Notes (Cost $14,691,694) | | | | | | | 14,597,975 | |
|
| | U.S. Treasury Bonds & Notes: 3.07% | |
| | United States: 3.07% | | | | | | | | |
| | | |
| | 10,000,000 | | | U.S. Treasury Bonds
1.750%, 05/15/23 | | | USD | | | | 9,360,160 | |
| | | |
| | | | Total U.S. Treasury Bonds & Notes
(Cost $9,597,970) | | | | | | | 9,360,160 | |
| | | |
| | | | Total Investments: 97.42% (Cost $310,915,315) | | | | | | | 297,451,820 | |
| | | |
| | | | Net Other Assets and Liabilities: 2.58% | | | | | | | 7,891,563 | (i) |
| | | |
| | | | Net Assets: 100.00% | | | | | | $ | 305,343,383 | |
Percentages are stated as a percent of net assets.
(a) Securities were purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such securities cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. These securities have been deemed liquid under guidelines approved by the Fund’s Board of Trustees. At period end, the aggregate market value of those securities was $87,173,357 representing 28.55% of net assets.
(b) Interest rate will change at a future date. Interest rate shown reflects the rate in effect at June 30, 2013.
(c) Non-Income producing security.
(d) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in the ordinary course of business in transactions exempt from registration, normally to qualified institutional buyers. At period end, the aggregate market value of those securities was $125,043,879, representing 40.95% of net assets.
(e) Security, or portion of security, is being held as collateral for the letter of credit. At period end, the aggregate market value of those securities was $60,833,319, representing 19.92% of net assets.
(f) Fair valued security under the procedures approved by the Fund’s Board of Trustees.
(g) Security determined to be illiquid under the procedures approved by the Fund’s Board of Trustees.
(h) Security in default on interest payments. Pending the outcome of the bankruptcy filing. Security deemed to be liquid under the procedures approved by the Fund’s Board of Trustees.
(i) Includes cash which is being held as collateral for credit default swap contracts.
(j) Payment, if any, is equal to the Available Excess GDP, as per the terms defined in The Republic of Argentina Prospectus dated April 27, 2010.
| | | | |
| June 30, 2013 | | 38 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward EM Corporate Debt Fund
Credit Default Swaps Contracts on Corporate and Sovereign Obligation Issues - Sell Protection(k)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Reference Entity | | Counterparty | | Fixed
Deal
Receive
Rate | | | Maturity
Date | | | Implied
Credit
Spread at
June 30,
2013(l) | | | Notional
Amount(m) | | | Market
Value | | | Upfront
Premiums
Received | | | Unrealized
Depreciation | |
Petroleos de Venezuela SA | | BNP Paribas | | | 5% | | | | 06/20/14 | | | | 9.70% | | | $ | 8,000,000 | | | $ | (350,214) | | | $ | (238,783) | | | $ | (111,431) | |
| Total Credit Default Swap Contracts | | | | | | | | | | | | | | | | | | $ | (350,214) | | | $ | (238,783) | | | $ | (111,431) | |
(k) If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.
(l) Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues, sovereign issues of an emerging country, U.S. municipal issues, and U.S. Treasury obligation issues as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.
(m) The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.
Securities determined to be illiquid under the procedures approved by the Fund’s Board of Trustees is as follows:
| | | | | | | | | | | | | | |
| Date(s) of Purchase | | Security | | Cost | | | Market
Value | | | % of Net
Assets | |
| 03/27/12 | | Special Port Vehicle Sdn Bhd, Asset Backed Bonds, Series
7 5.200%, 07/30/13(g) | | $ | 2,922,653 | | | $ | 2,831,859 | | | | 0.93% | |
| 03/04/13 | | Special Port Vehicle Sdn Bhd, Asset Backed Bonds, Series
8 5.300%, 07/30/14(g) | | | 6,390,024 | | | | 6,210,005 | | | | 2.03% | |
| Total Illiquid Securities | | $ | 9,312,677 | | | $ | 9,041,864 | | | | 2.96% | |
| | | | | | | | | | | | | | | | | | | | | | |
| Forward Foreign Currency Contracts | | | | | | | | | | | | | |
| | | | | | |
Open Forward Foreign
Currency Contracts
with Unrealized Gains | | Purchase/Sale Contract | | Contracts to
Deliver/Receive | | | Expiration
Date | | | Settlement
Value | | | Current
Value | | | Unrealized
Gains | |
Colombian Pesos | | Sale | | | 23,130,000,000 | | | | 12/06/13 | | | $ | 12,000,000 | | | $ | 11,844,731 | | | $ | 155,269 | |
| Total Open Forward Foreign Currency Contracts with Unrealized Gains | | | | | | | | | | | $ | 155,269 | |
Investment Abbreviations:
GDP — Gross Domestic Product
Gtd. — Guaranteed
PIK — Payment in-kind
Sec. — Secured
Sr. — Senior
Sub. — Subordinated
Unsec. — Unsecured
| | | | |
| See Notes to Financial Statements | | 39 | | June 30, 2013 |
Portfolio of Investments (Note 10) (Unaudited)
Forward EM Corporate Debt Fund
Currency Abbreviations:
ARS — Argentine Peso
EUR — Euro
GHS — Ghanaian Cedi
MYR — Malaysian Ringgit
RUB — Russian Ruble
USD — U.S. Dollar
| | | | |
| June 30, 2013 | | 40 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward Emerging Markets Fund
| | | | | | | | | | |
| Shares | | | | | | | Value (Note 2) | |
| | |
| | Common Stocks: 94.26% | | | | | | |
| | Brazil: 3.77% | | | | | | |
| | | |
| | 43,100 | | | BM&F Bovespa SA | | | | $ | 236,810 | |
| | | |
| | 11,400 | | | Cia Hering | | | | | 161,087 | |
| | | |
| | 2,300 | | | Companhia de Bebidas das Americas, Preferred ADR | | | | | 85,905 | |
| | | |
| | | | | | | | | 483,802 | |
| | | | | | | | | | |
| | Chile: 2.61% | | | | | | |
| | | |
| | 7,500 | | | Corpbanca SA, ADR | | | | | 128,250 | |
| | | |
| | 105,600 | | | Vina Concha Y Toro SA | | | | | 206,307 | |
| | | |
| | | | | | | | | 334,557 | |
| | | | | | | | | | |
| | China: 5.19% | | | | | | |
| | | |
| | 2,000 | | | China Petroleum & Chemical Corp., ADR | | | | | 183,000 | |
| | | |
| | 461,850 | | | Goodbaby International Holdings, Ltd. | | | | | 182,109 | |
| | | |
| | 8,000 | | | Mindray Medical International, Ltd., ADR | | | | | 299,600 | |
| | | |
| | | | | | | | | 664,709 | |
| | | | | | | | | | |
| | Colombia: 1.00% | | | | | | |
| | | |
| | 8,700,000 | | | Bolsa De Valores de Colombia | | | | | 128,575 | |
| | | | | | | | | | |
| | Egypt: 1.15% | | | | | | |
| | | |
| | 10,760 | | | Eastern Tobacco | | | | | 147,144 | |
| | | | | | | | | | |
| | Estonia: 1.28% | | | | | | |
| | | |
| | 48,900 | | | Silvano Fashion Group AS, Class A | | | | | 163,358 | |
| | | | | | | | | | |
| | Hong Kong: 8.37% | | | | | | |
| | | |
| | 947,875 | | | China Water Affairs Group, Ltd. | | | | | 354,873 | |
| | | |
| | 41,400 | | | First Pacific Co., Ltd., Sponsored ADR | | | | | 227,493 | |
| | | |
| | 6,700 | | | Guangdong Investment, Ltd., Unsponsored ADR | | | | | 287,799 | |
| | | |
| | 79,000 | | | YGM Trading, Ltd. | | | | | 203,391 | |
| | | |
| | | | | | | | | 1,073,556 | |
| | | | | | | | | | |
| | Indonesia: 12.57% | | | | | | |
| | | |
| | 77,500 | | | Enseval Putera Megatrading Tbk PT | | | | | 27,139 | |
| | | |
| | 419,000 | | | PT AKR Corporindo Tbk | | | | | 222,435 | |
| | | |
| | 1,667,793 | | | PT Astra Graphia Tbk | | | | | 241,053 | |
| | | |
| | 258,200 | | | PT Bank Mandiri Tbk | | | | | 232,880 | |
| | | |
| | 650,000 | | | PT Kalbe Farma Tbk | | | | | 93,832 | |
| | | |
| | 1,299,500 | | | PT Media Nusantara Citra Tbk | | | | | 408,319 | |
| | | |
| | 123,370 | | | PT Tambang Batubara Bukit Asam Tbk | | | | | 164,191 | |
| | | |
| | 5,200 | | | PT Telekomunikasi Indonesia, Sponsored ADR | | | | | 222,248 | |
| | | |
| | | | | | | | | 1,612,097 | |
| | | | | | | | | | |
| Shares | | | | | | | Value (Note 2) | |
| | Italy: 2.72% | | | | | | |
| | | |
| | 22,900 | | | Danieli & C. Officine Meccaniche SpA, Unsponsored ADR | | | | $ | 348,996 | |
| | | | | | | | | | |
| | Malaysia: 3.72% | | | | | | |
| | | |
| | 82,106 | | | Eng Kah Corp. Bhd | | | | | 80,820 | |
| | | |
| | 264 | | | JobStreet Corp. Bhd | | | | | 326 | |
| | | |
| | 198,000 | | | Malaysia Airports Holdings Bhd | | | | | 395,436 | |
| | | |
| | | | | | | | | 476,582 | |
| | | | | | | | | | |
| | Mexico: 0.56% | | | | | | |
| | | |
| | 700 | | | Fomento Economico Mexicano SAB de CV, Sponsored ADR | | | | | 72,233 | |
| | | | | | | | | | |
| | Nigeria: 1.40% | | | | | | |
| | | |
| | 1,200,000 | | | Guaranty Trust Bank Plc | | | | | 178,952 | |
| | | | | | | | | | |
| | Peru: 2.34% | | | | | | |
| | | |
| | 36,000 | | | Alicorp SA | | | | | 120,992 | |
| | | |
| | 1,400 | | | Credicorp, Ltd. | | | | | 179,144 | |
| | | |
| | | | | | | | | 300,136 | |
| | | | | | | | | | |
| | Russia: 2.49% | | | | | | |
| | | |
| | 37,800 | | | Hydraulic Machines and Systems Group Plc, GDR(a) | | | | | 92,400 | |
| | | |
| | 3,931 | | | Lukoil OAO, Sponsored ADR | | | | | 226,622 | |
| | | |
| | | | | | | | | 319,022 | |
| | | | | | | | | | |
| | Singapore: 4.89% | | | | | | |
| | | |
| | 24,800 | | | China Yuchai International, Ltd. | | | | | 437,224 | |
| | | |
| | 123,000 | | | OSIM International, Ltd. | | | | | 190,282 | |
| | | |
| | | | | | | | | 627,506 | |
| | | | | | | | | | |
| | South Africa: 2.75% | | | | | | |
| | | |
| | 33,900 | | | Gold Fields, Ltd., Sponsored ADR | | | | | 177,975 | |
| | | |
| | 10,900 | | | Kumba Iron Ore, Ltd., ADR | | | | | 167,642 | |
| | | |
| | 2,500 | | | Sibanye Gold, Ltd., Sponsored ADR(b) | | | | | 7,350 | |
| | | |
| | | | | | | | | 352,967 | |
| | | | | | | | | | |
| | South Korea: 1.78% | | | | | | |
| | | |
| | 7,400 | | | Grand Korea Leisure Co., Ltd. | | | | | 228,643 | |
| | | | | | | | | | |
| | Sri Lanka: 2.88% | | | | | | |
| | | |
| | 131,453 | | | Commercial Bank of Ceylon Plc, Non-Voting Depository Receipt | | | | | 95,418 | |
| | | |
| | 190,924 | | | Hatton National Bank Plc, Non-Voting Depository Receipt | | | | | 172,915 | |
| | | |
| | 2,000,000 | | | Piramal Glass Ceylon Plc | | | | | 101,227 | |
| | | |
| | | | | | | | | 369,560 | |
| | | | |
| See Notes to Financial Statements | | 41 | | June 30, 2013 |
Portfolio of Investments (Note 10) (Unaudited)
Forward Emerging Markets Fund
| | | | | | | | | | |
| Shares | | | | | | | Value (Note 2) | |
| | Taiwan: 6.53% | | | | | | |
| | | |
| | 24,000 | | | Asustek Computer, Inc. | | | | $ | 205,315 | |
| | | |
| | 226,900 | | | Formosan Rubber Group, Inc. | | | | | 186,337 | |
| | | |
| | 166,700 | | | Kinik Co. | | | | | 285,626 | |
| | | |
| | 1,468 | | | Mega Financial Holding Co., Ltd. | | | | | 1,109 | |
| | | |
| | 10,000 | | | TPK Holding Co., Ltd. | | | | | 159,078 | |
| | | |
| | | | | | | | | 837,465 | |
| | | | | | | | | | |
| | Thailand: 15.67% | | | | | | |
| | | |
| | 100,000 | | | Charoen Pokphand Foods Pcl | | | | | 82,799 | |
| | | |
| | 120,400 | | | Charoen Pokphand Foods Pcl, Non-Voting Depository Receipt | | | | | 99,690 | |
| | | |
| | 2,031,400 | | | Jasmine International Pcl | | | | | 510,180 | |
| | | |
| | 50,231 | | | PTT Exploration & Production Pcl | | | | | 255,491 | |
| | | |
| | 64,500 | | | Shin Corp. Pcl, Non-Voting Depository Receipt | | | | | 179,423 | |
| | | |
| | 15,000 | | | Siam Commercial Bank Pcl | | | | | 82,599 | |
| | | |
| | 33,600 | | | Siam Commercial Bank Pcl, Non-Voting Depository Receipt | �� | | | | 185,022 | |
| | | |
| | 280,700 | | | SNC Former Pcl, Non-Voting Depository Receipt | | | | | 219,296 | |
| | | |
| | 213,000 | | | Supalai Pcl, Non-Voting Depository Receipt | | | | | 120,904 | |
| | | |
| | 839,800 | | | Thai Tap Water Supply Pcl | | | | | 273,050 | |
| | | |
| | | | | | | | | 2,008,454 | |
| | | | | | | | | | |
| | Turkey: 6.53% | | | | | | |
| | | |
| | 102,434 | | | Anadolu Hayat Emeklilik AS | | | | | 225,881 | |
| | | |
| | 25,600 | | | Cimsa Cimento Sanayi VE Tica | | | | | 174,342 | |
| | | |
| | 53,500 | | | Tekfen Holding AS | | | | | 182,800 | |
| | | |
| | 7,200 | | | Turk Traktor ve Ziraat Makineleri AS | | | | | 253,683 | |
| | | |
| | | | | | | | | 836,706 | |
| | | | | | | | | | |
| | Ukraine: 1.07% | | | | | | |
| | | |
| | 8,100 | | | MHP SA, GDR(a) | | | | | 137,700 | |
| | | | | | | | | | |
| | United Kingdom: 2.99% | | | | | | |
| | | |
| | 9,300 | | | Bank of Georgia Holdings Plc | | | | | 235,799 | |
| | | |
| | 6,800 | | | Standard Chartered Plc | | | | | 147,632 | |
| | | |
| | | | | | | | | 383,431 | |
| | | |
| | | | Total Common Stocks
(Cost $11,830,186) | | | | | 12,086,151 | |
| | | |
| | | | Total Investments: 94.26%
(Cost $11,830,186) | | | | | 12,086,151 | |
| | | |
| | | | Net Other Assets and Liabilities: 5.74% | | | | | 735,787 | |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 12,821,938 | |
Percentages are stated as a percent of net assets.
(a) Securities were purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such securities cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. These securities have been deemed liquid under guidelines approved by the Fund’s Board of Trustees. At period end, the aggregate market value of those securities was $230,100 representing 1.79% of net assets.
(b) Non-income producing security.
Investment Abbreviations:
ADR — American Depositary Receipt
GDR — Global Depositary Receipt
| | | | |
| June 30, 2013 | | 42 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward Endurance Long/Short Fund
| | | | | | | | | | |
| Shares | | | | | | | Value (Note 2) | |
| | |
| | Common Stocks: 87.22% | | | | | | |
| | Consumer Discretionary: 2.13% | | | | | | |
| | | |
| | 4,000 | | | Imax Corp.(a) | | | | $ | 99,440 | |
| | | | | | | | | | |
| | Energy: 1.47% | | | | | | |
| | | |
| | 1,600 | | | Clean Energy Fuels Corp.(a) | | | | | 21,120 | |
| | | |
| | 200 | | | Ensco Plc, Class A | | | | | 11,624 | |
| | | |
| | 500 | | | Schlumberger, Ltd. | | | | | 35,830 | |
| | | |
| | | | | | | | | 68,574 | |
| | | | | | | | | | |
| | Financials: 4.64% | | | | | | |
| | | |
| | 1,600 | | | Financial Engines, Inc. | | | | | 72,944 | |
| | | |
| | 2,000 | | | GSV Capital Corp.(a) | | | | | 15,720 | |
| | | |
| | 700 | | | Visa, Inc., Class A | | | | | 127,925 | |
| | | |
| | | | | | | | | 216,589 | |
| | | | | | | | | | |
| | Health Care: 4.49% | | | | | | |
| | | |
| | 2,800 | | | Illumina, Inc.(a) | | | | | 209,552 | |
| | | | | | | | | | |
| | Industrials: 14.42% | | | | | | |
| | | |
| | 500 | | | Arcam AB(a) | | | | | 26,095 | |
| | | |
| | 8,000 | | | Capstone Turbine Corp.(a) | | | | | 9,360 | |
| | | |
| | 1,200 | | | ExOne Co.(a) | | | | | 74,064 | |
| | | |
| | 8,000 | | | Hertz Global Holdings, Inc.(a) | | | | | 198,400 | |
| | | |
| | 2,000 | | | Hexcel Corp.(a) | | | | | 68,100 | |
| | | |
| | 1,600 | | | Union Pacific Corp. | | | | | 246,848 | |
| | | |
| | 1,000 | | | United Rentals, Inc.(a) | | | | | 49,910 | |
| | | |
| | | | | | | | | 672,777 | |
| | | | | | | | | | |
| | Information Technology: 54.78%(b) | | | | | | |
| | | |
| | 400 | | | Apple, Inc.(c) | | | | | 158,432 | |
| | | |
| | 1,600 | | | Autodesk, Inc.(a)(c) | | | | | 54,304 | |
| | | |
| | 2,000 | | | ChannelAdvisor Corp.(a) | | | | | 31,460 | |
| | | |
| | 2,600 | | | Ciena Corp.(a) | | | | | 50,492 | |
| | | |
| | 1,400 | | | CoStar Group, Inc.(a) | | | | | 180,698 | |
| | | |
| | 5,500 | | | eBay, Inc.(a)(c) | | | | | 284,460 | |
| | | |
| | 500 | | | Equinix, Inc.(a)(c) | | | | | 92,360 | |
| | | |
| | 3,000 | | | Facebook, Inc., Class A(a) | | | | | 74,580 | |
| | | |
| | 375 | | | Google, Inc., Class A(a)(c) | | | | | 330,139 | |
| | | |
| | 700 | | | International Business Machines Corp. | | | | | 133,777 | |
| | | |
| | 1,400 | | | LinkedIn Corp., Class A(a) | | | | | 249,620 | |
| | | |
| | 8,000 | | | Microsoft Corp. | | | | | 276,240 | |
| | | | | | | | | | |
| Shares | | | | | | | Value (Note 2) | |
| | | |
| | 5,100 | | | QUALCOMM, Inc.(c) | | | | $ | 311,508 | |
| | | |
| | 6,000 | | | Splunk, Inc.(a) | | | | | 278,160 | |
| | | |
| | 900 | | | Tableau Software, Inc., Class A(a) | | | | | 49,878 | |
| | | |
| | | | | | | | | 2,556,108 | |
| | | | | | | | | | |
| | Materials: 5.29% | | | | | | |
| | | |
| | 2,500 | | | Monsanto Co.(c) | | | | | 247,000 | |
| | | |
| | | | Total Common Stocks
(Cost $3,758,540) | | | | | 4,070,040 | |
| | |
| | Exchange-Traded Funds: 3.42% | | | | | | |
| | | |
| | 3,500 | | | WisdomTree Japan Hedged Equity Fund | | | | | 159,635 | |
| | | |
| | | | Total Exchange-Traded Funds
(Cost $161,699) | | | | | 159,635 | |
| | | |
| Contracts | | | | | | | | |
| | |
| | Options Purchased: 0.25% | | | | | | |
| | | |
| | 80 | | | CBOE SPX Volatility , Expires July 2013 at $18.00 Call | | | | | 11,600 | |
| | | |
| | | | Total Options Purchased
(Cost $18,243) | | | | | 11,600 | |
| | | |
| | | | Total Investments: 90.89%
(Cost $3,938,482) | | | | | 4,241,275 | |
| | | |
| | | | Net Other Assets and Liabilities: 9.11% | | | | | 425,220 | (d) |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 4,666,495 | |
Percentages are stated as a percent of net assets.
(a) Non-income producing security.
(b) When sector categorization is categorized by industry, no industry exceeds the 25% maximum specified in the Statement of Additional Information.
(c) Security, or portion of security, is being held as collateral for short sales and options written. At period end, the aggregate market value of those securities was $1,364,314, representing 29.24% of net assets.
(d) Includes cash which is being held as collateral for short sales and options written.
| | | | |
| See Notes to Financial Statements | | 43 | | June 30, 2013 |
Portfolio of Investments (Note 10) (Unaudited)
Forward Endurance Long/Short Fund
| | | | | | | | | | |
| Shares | | | | | | | Value (Note 2) | |
| | |
| | Schedule of Securities Sold Short | | | | | | |
| | Common Stocks | | | | | | |
| | | |
| | (2,700) | | | 3D Systems Corp. | | | | $ | (118,530 | ) |
| | | |
| | (1,000) | | | Avis Budget Group, Inc. | | | | | (28,750 | ) |
| | | |
| | (1,400) | | | Canadian National Railway Co. | | | | | (136,178 | ) |
| | | |
| | (6,000) | | | Cirrus Logic, Inc. | | | | | (104,160 | ) |
| | | |
| | (1,400) | | | Deere & Co. | | | | | (113,750 | ) |
| | | |
| | (700) | | | Exelon Corp. | | | | | (21,616 | ) |
| | | |
| | (500) | | | FedEx Corp. | | | | | (49,290 | ) |
| | | |
| | (1,200) | | | FirstEnergy Corp. | | | | | (44,808 | ) |
| | | |
| | (1,000) | | | Gannett Co., Inc. | | | | | (24,460 | ) |
| | | |
| | (5,000) | | | Hewlett-Packard Co. | | | | | (124,000 | ) |
| | | |
| | (400) | | | Lexmark International, Inc., Class A | | | | | (12,228 | ) |
| | | |
| | (900) | | | Praxair, Inc. | | | | | (103,644 | ) |
| | | |
| | (4,000) | | | Rackspace Hosting, Inc. | | | | | (151,560 | ) |
| | | |
| | (1,300) | | | SAP AG, Sponsored ADR | | | | | (94,679 | ) |
| | | |
| | (1,150) | | | SeaWorld Entertainment, Inc. | | | | | (40,365 | ) |
| | | |
| | (2,000) | | | Texas Instruments, Inc. | | | | | (69,740 | ) |
| | | |
| | (500) | | | Trulia, Inc. | | | | | (15,545 | ) |
| | | |
| | (1,500) | | | VMware, Inc., Class A | | | | | (100,485 | ) |
| | | |
| | (500) | | | Zillow, Inc., Class A | | | | | (28,150 | ) |
| | | |
| | | | Total Securities Sold Short
(Proceeds $1,401,553) | | | | $ | (1,381,938 | ) |
| | | |
| Contracts | | | | | | | | |
| | |
| | Schedule of Options Written | | | | | | |
| | | |
| | (80) | | | CBOE SPX Volatility, Expires July 2013 at $21.00 Call | | | | $ | (6,400 | ) |
| | | |
| | | | Total Options Written
(Proceeds $11,157) | | | | $ | (6,400 | ) |
Investment Abbreviations:
ADR — American Depositary Receipt
CBOE — Chicago Board Option Exchange
SPX — Standard & Poor’s 500 Index
| | | | |
| June 30, 2013 | | 44 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward Global Credit Long/Short Fund
| | | | | | | | | | | | |
| Shares | | | | | | | | Value (Note 2) | |
| | |
| | Common Stocks: 4.25% | | | | | | | | |
| | Colombia: 4.25% | | | | | | | | |
| | | |
| | 16,100 | | | Pacific Rubiales Energy Corp. | | | | | | $ | 284,643 | |
| | | |
| | | | Total Common Stocks
(Cost $394,800) | | | | | | | 284,643 | |
| | | |
Principal
Amount | | | | | Currency | | | | |
| | |
| | Foreign Government Obligations: 13.39% | | | | | | | | |
| | Argentina: 7.58% | | | | | | | | |
| | | |
| | 100,000 | | | Provincia de Buenos Aires, Sr. Unsec. Notes
10.875%, 01/26/21(a) | | | USD | | | | 66,500 | |
| | | |
| | 450,000 | | | 11.750%, 10/05/15(b) | | | USD | | | | 375,750 | |
| | | |
| | 4,000,000 | | | Republic of Argentina, GDP-Linked Security
0.000%, 12/15/35(d)(i) | | | ARS | | | | 65,946 | |
| | | |
| | | | | | | | | | | 508,196 | |
| | | | | | | | | | | | |
| | Brazil: 5.81% | | | | | | | | |
| | | |
| | 400,000 | | | Brazil Minas SPE via State of Minas Gerais, Sec. Notes
5.333%, 02/15/28(a) | | | USD | | | | 390,000 | |
| | | |
| | | | Total Foreign Government Obligations
(Cost $1,026,988) | | | | | | | 898,196 | |
| | |
| | Asset-Backed Securities: 3.12% | | | | | | | | |
| | China: 3.12% | | | | | | | | |
| | | |
| | 200,000 | | | Start CLO, Ltd., 2011-7A, Class A
15.274%, 06/09/15(l)(c) | | | USD | | | | 209,410 | |
| | | |
| | | | Total Asset-Backed Securities
(Cost $200,000) | | | | | | | 209,410 | |
|
| | Convertible Corporate Bonds: 4.44% | |
| | Indonesia: 4.44% | | | | | | | | |
| | | |
| | 400,000 | | | Enercoal Resources Pte, Ltd.
9.250%, 08/05/14 | | | USD | | | | 298,000 | |
| | | |
| | | | Total Convertible Corporate Bonds
(Cost $371,848) | | | | | | | 298,000 | |
| | |
| | Corporate Bonds: 57.44% | | | | | | | | |
| | Argentina: 2.00% | | | | | | | | |
| | | |
| | 270,000 | | | Empresa Distribuidora Y Comercializadora Norte, Sr. Unsec. Notes
9.750%, 10/25/22(b) | | | USD | | | | 134,325 | |
| | | | | | | | | | | | |
| | Brazil: 8.67% | | | | | | | | |
| | | |
| | 300,000 | | | Aralco Finance SA, Sr. Unsec. Notes
10.125%, 05/07/20(a) | | | USD | | | | 272,812 | |
| | | | | | | | | | | | |
Principal
Amount | | Currency | | | Value (Note 2) | |
| | | |
| | 200,000 | | | Marfrig Holding Europe BV, Sr. Unsec. Notes
8.375%, 05/09/18(b) | | | USD | | | $ | 189,000 | |
| | | |
| | 200,000 | | | Sifco SA, Unsec. Notes
11.500%, 06/06/16(b) | | | USD | | | | 119,997 | |
| | | |
| | | | | | | | | | | 581,809 | |
| | | | | | | | | | | | |
| | Chile: 3.33% | | | | | | | | |
| | | |
| | 261,724 | | | Inversiones Alsacia SA, Sec. Notes
8.000%, 08/18/18(b) | | | USD | | | | 223,774 | |
| | | | | | | | | | | | |
| | Hong Kong: 5.40% | | | | | | | | |
| | | |
| | 200,000 | | | CFG Investment SAC, Sr. Unsec. Notes
9.750%, 07/30/19(b) | | | USD | | | | 181,000 | |
| | | |
| | 200,000 | | | 9.750%, 07/30/19(a) | | | USD | | | | 181,000 | |
| | | |
| | | | | | | | | | | 362,000 | |
| | | | | | | | | | | | |
| | Indonesia: 1.61% | | | | | | | | |
| | | |
| | 100,000 | | | Berau Capital Resources Pte, Ltd., First Lien Notes
12.500%, 07/08/15(a) | | | USD | | | | 107,750 | |
| | | | | | | | | | | | |
| | Kazakhstan: 11.74% | | | | | | | | |
| | | |
| | 1,500,000 | | | Tristan Oil, Ltd., Sec. Notes
0.000%, 01/01/16(b)(e) | | | USD | | | | 787,500 | |
| | | | | | | | | | | | |
| | Malaysia: 9.10% | | | | | | | | |
| | | |
| | 1,000,000 | | | Special Port Vehicle Sdn Bhd, Asset Backed Bonds, Series
7 5.200%, 07/30/13(f) | | | MYR | | | | 314,651 | |
| | | |
| | 1,000,000 | | | Special Port Vehicle Sdn Bhd, Asset Backed Bonds, Series
8 5.300%, 07/30/14(f) | | | MYR | | | | 295,715 | |
| | | |
| | | | | | | | | | | 610,366 | |
| | | | | | | | | | | | |
| | Russia: 2.25% | | | | | | | | |
| | | |
| | 5,000,000 | | | VimpelCom Holdings BV. Sr. Unsec. Notes
9.000%, 02/13/18(a) | | | RUB | | | | 150,669 | |
| | | | | | | | | | | | |
| | South Africa: 3.34% | | | | | | | | |
| | | |
| | 500,000 | | | African Development Bank, Sr. Unsec. Notes
14.000%, 08/25/15 | | | GHS | | | | 223,822 | |
| | | | | | | | | | | | |
| | United Arab Emirates: 4.61% | | | | | | | | |
| | | |
| | 300,000 | | | Millennium Offshore Services Superholdings Llc, Sec. Notes
9.500%, 02/15/18(a) | | | USD | | | | 309,000 | |
| | | | | | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 45 | | June 30, 2013 |
Portfolio of Investments (Note 10) (Unaudited)
Forward Global Credit Long/Short Fund
| | | | | | | | | | | | |
Principal
Amount | | | | | Currency | | | Value (Note 2) | |
| | United States: 2.18% | | | | | | | | |
| | | |
| | 300,000 | | | MF Global Holdings, Ltd., Sr. Unsec. Notes
6.250%, 08/08/16(g) | | | USD | | | $ | 146,625 | |
| | | | | | | | | | | | |
| | Venezuela: 3.21% | | | | | | | | |
| | | |
| | 368,750 | | | Sidetur Finance BV, Sr. Unsec. Notes
10.000%, 04/20/16(b) | | | USD | | | | 215,719 | |
| | | |
| | | | Total Corporate Bonds
(Cost $4,344,667) | | | | | | | 3,853,359 | |
| | | |
| | | | Total Investments: 82.64%
(Cost $6,338,303) | | | | | | | 5,543,608 | |
| | | |
| | | | Net Other Assets and Liabilities: 17.36% | | | | | | | 1,164,565 | (h) |
| | | |
| | | | Net Assets: 100.00% | | | | | | $ | 6,708,173 | |
Percentages are stated as a percent of net assets.
(a) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in the ordinary course of business in transactions exempt from registration, normally to qualified institutional buyers. At period end, the aggregate market value of those securities was $1,687,141, representing 25.15% of net assets.
(b) Securities were purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such securities cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. These securities have been deemed liquid under guidelines approved by the Fund’s Board of Trustees. At period end, the aggregate market value of those securities was $2,227,065 representing 33.20% of net assets.
(c) Interest rate will change at a future date. Interest rate shown reflects the rate in effect at June 30, 2013.
(d) Non-income producing security.
(e) Fair valued security under the procedures approved by the Fund’s Board of Trustees.
(f) Security determined to be illiquid under the procedures approved by the Fund’s Board of Trustees.
(g) Security in default on interest payments. Pending the outcome of the bankruptcy filing. Security deemed to be liquid under the procedures approved by the Fund’s Board of Trustees.
(h) Includes cash which is being held as collateral for swap contracts.
(i) Payment, if any, is equal to the Available Excess GDP, as per the terms defined in The Republic of Argentina Prospectus dated April 27, 2010.
Credit Default Swaps Contracts on Corporate and Sovereign Obligation Issues - Buy Protection(j)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Reference Entity | | Counterparty | | Fixed
Deal
(Pay)
Rate | | | Maturity
Date | | | Implied
Credit
Spread at
June 30,
2013(k) | | | Notional
Amount(l) | | | Market
Value | | | Upfront
Premiums
Paid | | | Unrealized
Appreciation | |
Markit Itrx Corp | | Credit Suisse | | | (1.000%) | | | | 06/20/18 | | | | 2.75% | | | $ | 1,500,000 | | | $ | 117,963 | | | $ | 100,648 | | | $ | 17,315 | |
| Total Credit Default Swap Contracts | | | | | | | | | | | | | | | | | | $ | 117,963 | | | $ | 100,648 | | | $ | 17,315 | |
(j) If the Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation.
(k) Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues, sovereign issues of an emerging country, U.S. municipal issues, and U.S. Treasury obligation issues as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.
(l) The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.
| | | | |
| June 30, 2013 | | 46 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward Global Credit Long/Short Fund
Securities determined to be illiquid under the procedures approved by the Fund’s Board of Trustees is as follows:
| | | | | | | | | | | | | | |
| Date(s) of Purchase | | Security | | Cost | | | Market
Value | | | % of Net
Assets | |
| 03/27/12 | | Special Port Vehicle Sdn Bhd, Asset Backed Bonds, Series 7
5.200%, 07/30/13(f) | | $ | 324,739 | | | $ | 314,651 | | | | 4.69% | |
| 03/04/13 | | Special Port Vehicle Sdn Bhd, Asset Backed Bonds, Series 8
5.300%, 07/30/14(f) | | | 304,287 | | | | 295,715 | | | | 4.41% | |
| | | | $ | 629,026 | | | $ | 610,366 | | | | 9.10% | |
Forward Foreign Currency Contracts
| | | | | | | | | | | | | | | | | | | | | | |
Open Forward Foreign
Currency Contracts
with Unrealized Gains | | Purchase/Sale
Contract | | Contracts to
Deliver/Receive | | | Expiration
Date | | | Settlement
Value | | | Current
Value | | | Unrealized
Gain | |
Colombian Pesos | | Sale | | | 963,750,000 | | | | 12/06/13 | | | $ | 500,000 | | | $ | 493,530 | | | $ | 6,470 | |
| Total Open Forward Currency Contract with Unrealized Gains | | | | | | | | | | | $ | 6,470 | |
Investment Abbreviations:
GDP — Gross Domestic Product
Sec. — Secured
Sr. — Senior
Unsec. — Unsecured
Currency Abbreviations:
ARS — Argentinian Pesos
GHS — Ghanaian Cedi
MYR — Malaysian Ringgit
RUB — Russian Ruble
USD — U.S. Dollar
| | | | |
| See Notes to Financial Statements | | 47 | | June 30, 2013 |
Portfolio of Investments (Note 10) (Unaudited)
Forward Global Dividend Fund
| | | | | | | | | | |
| Shares | | | | | | | Value (Note 2) | |
| | |
| | Common Stocks: 92.92% | | | | | | |
| | Brazil: 0.76% | | | | | | |
| | | |
| | 31,000 | | | BM&F Bovespa SA | | | | $ | 170,327 | |
| | | | | | | | | | |
| | China: 2.02% | | | | | | |
| | | |
| | 436,000 | | | Goodbaby International Holdings, Ltd. | | | | | 173,140 | |
| | | |
| | 7,500 | | | Mindray Medical International, Ltd., ADR | | | | | 280,875 | |
| | | |
| | | | | | | | | 454,015 | |
| | | | | | | | | | |
| | France: 2.72% | | | | | | |
| | | |
| | 4,000 | | | Danone SA | | | | | 300,210 | |
| | | |
| | 140 | | | Lagardere SCA | | | | | 3,900 | |
| | | |
| | 1,900 | | | LVMH Moet Hennessy Louis Vuitton SA | | | | | 307,904 | |
| | | |
| | | | | | | | | 612,014 | |
| | | | | | | | | | |
| | Germany: 1.52% | | | | | | |
| | | |
| | 3,200 | | | Bayer AG, Sponsored ADR | | | | | 341,344 | |
| | | | | | | | | | |
| | Hong Kong: 5.89% | | | | | | |
| | | |
| | 132,000 | | | BOC Hong Kong Holdings, Ltd. | | | | | 405,901 | |
| | | |
| | 9,700 | | | Dairy Farm International Holdings, Ltd. | | | | | 116,497 | |
| | | |
| | 768,000 | | | Dorsett Hospitality International, Ltd. | | | | | 178,235 | |
| | | |
| | 236,250 | | | First Pacific Co., Ltd. | | | | | 253,123 | |
| | | |
| | 428,000 | | | Guangdong Investment, Ltd. | | | | | 370,828 | |
| | | |
| | | | | | | | | 1,324,584 | |
| | | | | | | | | | |
| | Indonesia: 3.34% | | | | | | |
| | | |
| | 322,000 | | | Bank Mandiri Persero Tbk PT | | | | | 291,990 | |
| | | |
| | 1,181,500 | | | PT Astra Graphia Tbk | | | | | 171,422 | |
| | | |
| | 912,000 | | | PT Media Nusantara Citra Tbk | | | | | 287,153 | |
| | | |
| | | | | | | | | 750,565 | |
| | | | | | | | | | |
| | Italy: 3.20% | | | | | | |
| | | |
| | 25,000 | | | Danieli & C Officine Meccaniche SpA | | | | | 376,826 | |
| | | |
| | 13,750 | | | Gtech Spa | | | | | 344,171 | |
| | | |
| | | | | | | | | 720,997 | |
| | | | | | | | | | |
| | Japan: 5.08% | | | | | | |
| | | |
| | 229 | | | Accordia Golf Co., Ltd. | | | | | 240,360 | |
| | | |
| | 6,000 | | | Japan Tobacco, Inc. | | | | | 212,039 | |
| | | |
| | 17,500 | | | Kuraray Co., Ltd. | | | | | 245,614 | |
| | | |
| | 3,000 | | | Lawson, Inc. | | | | | 228,978 | |
| | | |
| | 5,000 | | | Santen Pharmaceutical Co., Ltd. | | | | | 215,265 | |
| | | |
| | | | | | | | | 1,142,256 | |
| | | | | | | | | | |
| Shares | | | | | | | Value (Note 2) | |
| | Mexico: 0.78% | | | | | | |
| | | |
| | 1,700 | | | Fomento Economico Mexicano SAB de CV, Sponsored ADR | | | | $ | 175,423 | |
| | | | | | | | | | |
| | Netherlands: 2.23% | | | | | | |
| | | |
| | 175 | | | Koninklijke Philips NV | | | | | 4,745 | |
| | | |
| | 6,848 | | | Nutreco NV | | | | | 291,031 | |
| | | |
| | 3,190 | | | Royal Dutch Shell Plc, ADR | | | | | 203,522 | |
| | | |
| | | | | | | | | 499,298 | |
| | | | | | | | | | |
| | Pakistan: 1.18% | | | | | | |
| | | |
| | 9,000 | | | Suncor Energy, Inc. | | | | | 265,285 | |
| | | | | | | | | | |
| | Peru: 0.85% | | | | | | |
| | | |
| | 1,500 | | | Credicorp, Ltd. | | | | | 191,940 | |
| | | | | | | | | | |
| | South Africa: 0.75% | | | | | | |
| | | |
| | 29,000 | | | Gold Fields, Ltd., Sponsored ADR | | | | | 152,250 | |
| | | |
| | 5,325 | | | Sibanye Gold, Ltd., Sponsored ADR(a) | | | | | 15,656 | |
| | | |
| | | | | | | | | 167,906 | |
| | | | | | | | | | |
| | South Korea: 1.04% | | | | | | |
| | | |
| | 7,500 | | | Grand Korea Leisure Co., Ltd. | | | | | 232,477 | |
| | | | | | | | | | |
| | Switzerland: 5.91% | | | | | | |
| | | |
| | 4,200 | | | Novartis AG, ADR | | | | | 296,982 | |
| | | |
| | 7,300 | | | Roche Holdings, Ltd., Sponsored ADR | | | | | 451,614 | |
| | | |
| | 7,400 | | | Syngenta AG, ADR | | | | | 576,164 | |
| | | |
| | | | | | | | | 1,324,760 | |
| | | | | | | | | | |
| | Taiwan: 2.02% | | | | | | |
| | | |
| | 20,000 | | | Asustek Computer, Inc. | | | | | 172,166 | |
| | | |
| | 70,000 | | | Kinik Co. | | | | | 120,750 | |
| | | |
| | 10,000 | | | TPK Holding Co., Ltd. | | | | | 160,155 | |
| | | |
| | | | | | | | | 453,071 | |
| | | | | | | | | | |
| | Thailand: 5.54% | | | | | | |
| | | |
| | 3,500,000 | | | Jasmine International Pcl | | | | | 885,862 | |
| | | |
| | 65,000 | | | Siam Commercial Bank Pcl | | | | | 360,471 | |
| | | |
| | | | | | | | | 1,246,333 | |
| | | | | | | | | | |
| | Turkey: 0.75% | | | | | | |
| | | |
| | 35,700 | | | Netas Telekomunikasyon AS | | | | | 167,699 | |
| | | | | | | | | | |
| | | | |
| June 30, 2013 | | 48 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward Global Dividend Fund
| | | | | | | | | | |
| Shares | | | | | | | Value (Note 2) | |
| | United Kingdom: 7.40% | | | | | | |
| | | |
| | 5,000 | | | Ensco Plc, Class A | | | | $ | 290,600 | |
| | | |
| | 15,000 | | | Scottish & Southern Energy Plc | | | | | 347,463 | |
| | | |
| | 12,500 | | | Standard Chartered Plc | | | | | 271,301 | |
| | | |
| | 7,200 | | | Unilever Plc, Sponsored ADR | | | | | 291,240 | |
| | | |
| | 5,400 | | | WPP Group Plc, Sponsored ADR | | | | | 461,105 | |
| | | |
| | | | | | | | | 1,661,709 | |
| | | | | | | | | | |
| | United States: 39.94% | | | | | | |
| | | |
| | 4,760 | | | 3M Co. | | | | | 520,506 | |
| | | |
| | 7,360 | | | Automatic Data Processing, Inc. | | | | | 506,810 | |
| | | |
| | 1,775 | | | AvalonBay Communities, Inc. | | | | | 239,465 | |
| | | |
| | 1,685 | | | BlackRock, Inc. | | | | | 432,792 | |
| | | |
| | 5,300 | | | Cardinal Health, Inc. | | | | | 250,160 | |
| | | |
| | 3,490 | | | Chevron Corp. | | | | | 413,006 | |
| | | |
| | 16,500 | | | Cisco Systems, Inc. | | | | | 401,115 | |
| | | |
| | 3,600 | | | CME Group, Inc., Class A | | | | | 273,528 | |
| | | |
| | 7,600 | | | Comcast Corp., Class A | | | | | 318,288 | |
| | | |
| | 4,730 | | | ConocoPhillips Corp. | | | | | 286,165 | |
| | | |
| | 3,300 | | | Eaton Corp. Plc | | | | | 217,173 | |
| | | |
| | 800 | | | HollyFrontier Corp. | | | | | 34,224 | |
| | | |
| | 1,220 | | | International Business Machines Corp. | | | | | 233,154 | |
| | | |
| | 8,430 | | | JPMorgan Chase & Co. | | | | | 445,020 | |
| | | |
| | 7,200 | | | KLA-Tencor Corp. | | | | | 401,256 | |
| | | |
| | 2,947 | | | McDonald’s Corp. | | | | | 291,753 | |
| | | |
| | 6,564 | | | MetLife, Inc. | | | | | 300,369 | |
| | | |
| | 3,420 | | | Norfolk Southern Corp. | | | | | 248,463 | |
| | | |
| | 7,210 | | | NYSE Euronext, Inc. | | | | | 298,494 | |
| | | |
| | 14,760 | | | Pfizer, Inc. | | | | | 413,428 | |
| | | |
| | 4,220 | | | Philip Morris International, Inc. | | | | | 365,536 | |
| | | |
| | 3,691 | | | Procter & Gamble Co. | | | | | 284,170 | |
| | | |
| | 7,460 | | | Qualcomm, Inc. | | | | | 455,657 | |
| | | |
| | 6,110 | | | Stanley Black & Decker, Inc. | | | | | 472,303 | |
| | | |
| | 5,440 | | | Time Warner, Inc. | | | | | 314,541 | |
| | | |
| | 3,550 | | | Wal-Mart Stores, Inc. | | | | | 264,440 | |
| | | |
| | 1,100 | | | Watsco, Inc. | | | | | 92,356 | |
| | | | | | | | | | | | |
| Shares | | | | | | | | Value (Note 2) | |
| | | |
| | 6,100 | | | Williams Cos., Inc. | | | | | | $ | 198,067 | |
| | | |
| | | | | | | | | | | 8,972,239 | |
| | | |
| | | | Total Common Stocks
(Cost $18,561,446) | | | | | | | 20,874,242 | |
| | |
| | Convertible Preferred Stocks: 1.34% | | | | | | | | |
| | United States: 1.34% | | | | | | | | |
| | | |
| | 12,200 | | | FelCor Lodging Trust, Inc.,
Series A, 1.950% | | | | | | | 300,120 | |
| | | |
| | | | Total Convertible Preferred Stocks
(Cost $323,544) | | | | | | | 300,120 | |
| | | |
Principal
Amount | | | | | Currency | | | | |
| | |
| | Agency Pass-Through Securities: 0.24% | | | | | | | | |
| United States: 0.24%
| | | | | | | | |
| | | |
| | 1,107,609 | | | GNMA
4.000%, 03/16/22(b) | | | USD | | | | 53,231 | |
| | | |
| | | | Total Agency Pass-Through Securities
(Cost $126,678) | | | | | | | 53,231 | |
|
| | Collateralized Mortgage Obligations: 1.72% | |
| | United States: 1.72% | |
| | | |
| | 725,494 | | | FHLMC, REMICS
3.000%, 06/15/27(b)(c) | | | USD | | | | 102,304 | |
| | | |
| | 1,252,665 | | | 4.000%, 11/15/28(b) | | | USD | | | | 105,867 | |
| | | |
| | 791,723 | | | 4.500%, 10/15/30(b) | | | USD | | | | 114,083 | |
| | | |
| | 318,877 | | | FNMA, REMICS
3.500%, 11/25/20(b) | | | USD | | | | 26,093 | |
| | | |
| | 166,727 | | | 4.000%, 09/25/20(b) | | | USD | | | | 13,038 | |
| | | |
| | 367,338 | | | 4.000%, 10/25/20(b) | | | USD | | | | 24,441 | |
| | | |
| | | | | | | | | | | 385,826 | |
| | |
| | | | Total Collateralized Mortgage Obligations
(Cost $468,819) | | | | 385,826 | |
| | | |
| | | | Total Investments: 96.22%
(Cost $19,480,487) | | | | | | | 21,613,419 | |
| | |
| | | | Net Other Assets and Liabilities: 3.78% | | | | 848,800 | |
| | | |
| | | | Net Assets: 100.00% | | | | | | $ | 22,462,219 | |
| | | | |
| See Notes to Financial Statements | | 49 | | June 30, 2013 |
Portfolio of Investments (Note 10) (Unaudited)
Forward Global Dividend Fund
Percentages are stated as a percent of net assets.
(a) Non-income producing security.
(b) Interest only security.
(c) Interest rate will change at a future date. Interest rate shown reflects the rate in effect at June 30, 2013.
Investment Abbreviations:
ADR — American Depositary Receipt
FHLMC — Federal Home Loan Mortgage Corp.
FNMA — Federal National Mortgage Association
GNMA — Government National Mortgage Association
REMICS — Real Estate Mortgage Investment Conduits
| | | | |
| June 30, 2013 | | 50 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward International Dividend Fund
| | | | | | | | | | |
| Shares | | | | | | | Value (Note 2) | |
| | |
| | Common Stocks: 96.14% | | | | | | |
| | Australia: 0.86% | | | | | | |
| | | |
| | 808,000 | | | Clough, Ltd. | | | | $ | 790,686 | |
| | | |
| | 1,500,000 | | | NRW Holdings, Ltd. | | | | | 1,248,365 | |
| | | |
| | | | | | | | | 2,039,051 | |
| | | | | | | | | | |
| | Austria: 0.98% | | | | | | |
| | | |
| | 45,400 | | | Andritz AG | | | | | 2,329,804 | |
| | | | | | | | | | |
| | Belgium: 1.29% | | | | | | |
| | | |
| | 44,225 | | | EVS Broadcast Equipment SA | | | | | 3,070,525 | |
| | | | | | | | | | |
| | Bermuda: 1.68% | | | | | | |
| | | |
| | 3,724,875 | | | First Pacific Co., Ltd.(a) | | | | | 3,990,912 | |
| | | | | | | | | | |
| | Brazil: 0.67% | | | | | | |
| | | |
| | 289,200 | | | BM&F Bovespa SA | | | | | 1,588,990 | |
| | | | | | | | | | |
| | Canada: 4.03% | | | | | | |
| | | |
| | 28,200 | | | Bank of Nova Scotia(a) | | | | | 1,510,110 | |
| | | |
| | 100,000 | | | Dundee Industrial REIT | | | | | 861,462 | |
| | | |
| | 228,840 | | | Holloway Lodging Corp.(a) | | | | | 765,919 | |
| | | |
| | 108,000 | | | Suncor Energy, Inc. | | | | | 3,183,417 | |
| | | |
| | 111,000 | | | TELUS Corp., Non-Voting Depositary Receipt(a) | | | | | 3,240,091 | |
| | | |
| | | | | | | | | 9,560,999 | |
| | | | | | | | | | |
| | China: 1.65% | | | | | | |
| | | |
| | 4,902,970 | | | Goodbaby International Holdings, Ltd. | | | | | 1,947,015 | |
| | | |
| | 52,500 | | | Mindray Medical International, Ltd., ADR(a) | | | | | 1,966,125 | |
| | | |
| | | | | | | | | 3,913,140 | |
| | | | | | | | | | |
| | Egypt: 0.67% | | | | | | |
| | | |
| | 116,500 | | | Eastern Tobacco | | | | | 1,593,144 | |
| | | | | | | | | | |
| | Estonia: 0.17% | | | | | | |
| | | |
| | 118,470 | | | Silvano Fashion Group AS, Class A | | | | | 395,768 | |
| | | | | | | | | | |
| | France: 4.33% | | | | | | |
| | | |
| | 27,400 | | | Danone SA(a) | | | | | 2,056,444 | |
| | | |
| | 1,459 | | | Lagardere SCA | | | | | 40,641 | |
| | | |
| | 14,400 | | | LVMH Moet Hennessy Louis Vuitton SA(a) | | | | | 2,333,585 | |
| | | |
| | 52,982 | | | Orpea(a) | | | | | 2,450,278 | |
| | | |
| | 65,900 | | | Sanofi, ADR(a) | | | | | 3,394,509 | |
| | | |
| | | | | | | | | 10,275,457 | |
| | | | | | | | | | |
| | | | | | | | | | |
| Shares | | | | | | | Value (Note 2) | |
| | Germany: 1.72% | | | | | | |
| | | |
| | 38,200 | | | Bayer AG, Sponsored ADR(a) | | | | $ | 4,074,794 | |
| | | | | | | | | | |
| | Hong Kong: 9.67% | | | | | | |
| | | |
| | 744,600 | | | BOC Hong Kong Holdings, Ltd.(a) | | | | | 2,289,659 | |
| | | |
| | 2,702,230 | | | China Water Affairs Group, Ltd.(a) | | | | | 1,013,852 | |
| | | |
| | 69,445,500 | | | CSI Properties, Ltd.(a) | | | | | 2,909,959 | |
| | | |
| | 79,700 | | | Dairy Farm International Holdings, Ltd. | | | | | 957,197 | |
| | | |
| | 6,100,000 | | | Dorsett Hospitality International, Ltd.(a) | | | | | 1,415,669 | |
| | | |
| | 13,338,000 | | | Future Bright Holdings, Ltd.(a) | | | | | 3,852,105 | |
| | | |
| | 7,732,000 | | | Guangdong Investment, Ltd.(a) | | | | | 6,699,163 | |
| | | |
| | 1,631,000 | | | K Wah International Holdings, Ltd.(a) | | | | | 750,726 | |
| | | |
| | 6,340,000 | | | Kingway Brewery Holdings, Ltd.(b) | | | | | 2,288,794 | |
| | | |
| | 303,837 | | | YGM Trading, Ltd. | | | | | 783,484 | |
| | | |
| | | | | | | | | 22,960,608 | |
| | | | | | | | | | |
| | Indonesia: 5.48% | | | | | | |
| | | |
| | 3,191,400 | | | Bank Mandiri Persero Tbk PT | | | | | 2,893,965 | |
| | | |
| | 1,824,000 | | | PT AKR Corporindo Tbk | | | | | 974,025 | |
| | | |
| | 12,542,207 | | | PT Astra Graphia Tbk | | | | | 1,819,726 | |
| | | |
| | 14,281,505 | | | PT Kalbe Farma Tbk | | | | | 2,072,077 | |
| | | |
| | 7,077,500 | | | PT Media Nusantara Citra Tbk | | | | | 2,228,432 | |
| | | |
| | 964,130 | | | PT Tambang Batubara Bukit Asam Tbk | | | | | 1,291,983 | |
| | | |
| | 40,000 | | | PT Telekomunikasi Indonesia Tbk, ADR(a) | | | | | 1,709,600 | |
| | | |
| | | | | | | | | 12,989,808 | |
| | | | | | | | | | |
| | Ireland: 0.62% | | | | | | |
| | | |
| | 47,300 | | | Experian Group, Ltd., Sponsored ADR(a) | | | | | 827,277 | |
| | | |
| | 37,000 | | | Experian Plc(a) | | | | | 643,229 | |
| | | |
| | | | | | | | | 1,470,506 | |
| | | | | | | | | | |
| | Italy: 4.43% | | | | | | |
| | | |
| | 549,237 | | | Danieli & Co. Officine Meccaniche SpA | | | | | 8,278,662 | |
| | | |
| | 89,100 | | | Gtech Spa | | | | | 2,230,225 | |
| | | |
| | | | | | | | | 10,508,887 | |
| | | | | | | | | | |
| | Japan: 10.03% | | | | | | |
| | | |
| | 1,950 | | | Accordia Golf Co., Ltd.(a) | | | | | 2,046,733 | |
| | | |
| | 1,780,000 | | | Dynam Japan Holdings Co., Ltd.(a) | | | | | 3,235,926 | |
| | | |
| | 36,500 | | | ITOCHU Techno-Solutions Corp.(a) | | | | | 1,510,713 | |
| | | | |
| See Notes to Financial Statements | | 51 | | June 30, 2013 |
Portfolio of Investments (Note 10) (Unaudited)
Forward International Dividend Fund
| | | | | | | | | | |
| Shares | | | | | | | Value (Note 2) | |
| | Japan (continued): 10.03% | | | | | | |
| | | |
| | 42,000 | | | Japan Tobacco, Inc.(a) | | | | $ | 1,484,271 | |
| | | |
| | 80,000 | | | KDDI Corp.(a) | | | | | 4,162,129 | |
| | | |
| | 419,400 | | | Kuraray Co., Ltd.(a) | | | | | 5,886,316 | |
| | | |
| | 22,800 | | | Lawson, Inc.(a) | | | | | 1,740,230 | |
| | | |
| | 38,100 | | | Santen Pharmaceutical Co., Ltd.(a) | | | | | 1,640,321 | |
| | | |
| | 170,500 | | | VT Holdings Co., Ltd.(a) | | | | | 2,083,545 | |
| | | |
| | | | | | | | | 23,790,184 | |
| | | | | | | | | | |
| | Macau: 0.79% | | | | | | |
| | | |
| | 700,000 | | | MGM China Holdings, Ltd. | | | | | 1,868,219 | |
| | | | | | | | | | |
| | Malaysia: 2.23% | | | | | | |
| | | |
| | 1,450,000 | | | Malaysia Airports Holdings Bhd | | | | | 2,895,870 | |
| | | |
| | 2,250,000 | | | SP Setia Bhd | | | | | 2,385,662 | |
| | | |
| | | | | | | | | 5,281,532 | |
| | | | | | | | | | |
| | Mexico: 0.52% | | | | | | |
| | | |
| | 12,000 | | | Fomento Economico Mexicano SAB de CV, Sponsored ADR(a) | | | | | 1,238,280 | |
| | | | | | | | | | |
| | Netherlands: 3.06% | | | | | | |
| | | |
| | 45,000 | | | Amsterdam Commodities NV | | | | | 845,807 | |
| | | |
| | 1,683 | | | Koninklijke Philips NV, ADR | | | | | 45,774 | |
| | | |
| | 56,800 | | | Nutreco NV(a) | | | | | 2,413,922 | |
| | | |
| | 30,000 | | | Royal Dutch Shell Plc, ADR(a) | | | | | 1,914,000 | |
| | | |
| | 51,000 | | | Ziggo NV(a) | | | | | 2,041,301 | |
| | | |
| | | | | | | | | 7,260,804 | |
| | | | | | | | | | |
| | New Zealand: 0.42% | | | | | | |
| | | |
| | 116,800 | | | Telecom Corp. of New Zealand, Ltd., Sponsored ADR(a) | | | | | 1,005,648 | |
| | | | | | | | | | |
| | Pakistan: 0.14% | | | | | | |
| | | |
| | 22,100 | | | HUB Power Co., Ltd., Sponsored GDR(c) | | | | | 341,445 | |
| | | | | | | | | | |
| | Peru: 0.65% | | | | | | |
| | | |
| | 12,000 | | | Credicorp, Ltd.(a) | | | | | 1,535,520 | |
| | | | | | | | | | |
| | Russia: 1.12% | | | | | | |
| | | |
| | 234,768 | | | Hydraulic Machines and Systems Group Plc, GDR(c) | | | | | 575,182 | |
| | | |
| | 36,035 | | | LUKOIL OAO, Sponsored ADR(a) | | | | | 2,077,417 | |
| | | |
| | | | | | | | | 2,652,599 | |
| | | | | | | | | | |
| | Scotland: 1.10% | | | | | | |
| | | |
| | 112,800 | | | Scottish & Southern Energy Plc(a) | | | | | 2,612,922 | |
| | | | | | | | | | |
| Shares | | | | | | | Value (Note 2) | |
| | Singapore: 1.73% | | | | | | |
| | | |
| | 980,000 | | | Ascendas India Trust(a) | | | | $ | 552,821 | |
| | | |
| | 114,723 | | | China Yuchai International, Ltd.(a) | | | | | 2,022,565 | |
| | | |
| | 63,268 | | | Eng Kah Corp. | | | | | 62,277 | |
| | | |
| | 938,600 | | | OSIM International, Ltd.(a) | | | | | 1,455,108 | |
| | | |
| | | | | | | | | 4,092,771 | |
| | | | | | | | | | |
| | South Africa: 1.22% | | | | | | |
| | | |
| | 524,500 | | | Gold Fields, Ltd., Sponsored ADR(a) | | | | | 2,753,625 | |
| | | |
| | 48,525 | | | Sibanye Gold, Ltd., Sponsored ADR(b) | | | | | 142,664 | |
| | | |
| | | | | | | | | 2,896,289 | |
| | | | | | | | | | |
| | South Korea: 0.47% | | | | | | |
| | | |
| | 36,000 | | | Grand Korea Leisure Co., Ltd. | | | | | 1,115,888 | |
| | | | | | | | | | |
| | Sri Lanka: 1.41% | | | | | | |
| | | |
| | 1,800,733 | | | Commercial Bank of Ceylon Plc, Non-Voting Depository Receipt | | | | | 1,309,121 | |
| | | |
| | 1,137,294 | | | Hatton National Bank Plc, Non-Voting Depository Receipt | | | | | 1,030,019 | |
| | | |
| | 20,000,000 | | | Piramal Glass Ceylon Plc | | | | | 1,012,270 | |
| | | |
| | | | | | | | | 3,351,410 | |
| | | | | | | | | | |
| | Sweden: 2.41% | | | | | | |
| | | |
| | 111,200 | | | Investor AB, Class B | | | | | 2,989,720 | |
| | | |
| | 244,000 | | | Nordea Bank AB | | | | | 2,728,859 | |
| | | |
| | | | | | | | | 5,718,579 | |
| | | | | | | | | | |
| | Switzerland: 6.36% | | | | | | |
| | | |
| | 41,230 | | | Novartis AG, ADR(a) | | | | | 2,915,373 | |
| | | |
| | 72,400 | | | Roche Holdings, Ltd., Sponsored ADR(a) | | | | | 4,479,026 | |
| | | |
| | 98,650 | | | Syngenta AG, ADR(a) | | | | | 7,680,889 | |
| | | |
| | | | | | | | | 15,075,288 | |
| | | | | | | | | | |
| | Taiwan: 2.54% | | | | | | |
| | | |
| | 252,000 | | | Asustek Computer, Inc. | | | | | 2,169,297 | |
| | | |
| | 994,000 | | | Kinik Co. | | | | | 1,714,651 | |
| | | |
| | 133,000 | | | TPK Holding Co., Ltd. | | | | | 2,130,059 | |
| | | |
| | | | | | | | | 6,014,007 | |
| | | | | | | | | | |
| | Thailand: 9.50% | | | | | | |
| | | |
| | 45,305,325 | | | Jasmine International Pcl | | | | | 11,466,930 | |
| | | |
| | 257,000 | | | Shin Corp. Pcl | | | | | 720,909 | |
| | | | |
| June 30, 2013 | | 52 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward International Dividend Fund
| | | | | | | | | | |
| Shares | | | | | | | Value (Note 2) | |
| | Thailand (continued): 9.50% | | | | | | |
| | | |
| | 749,050 | | | Shin Corp. Pcl, Non-Voting Depository Receipt | | | | $ | 2,101,156 | |
| | | |
| | 471,000 | | | Siam Commercial Bank Pcl | | | | | 2,612,026 | |
| | | |
| | 2,910,000 | | | SNC Former Pcl, Non-Voting Depository Receipt | | | | | 2,279,961 | |
| | | |
| | 10,300,000 | | | Thai Tap Water Supply Pcl | | | | | 3,354,183 | |
| | | |
| | | | | | | | | 22,535,165 | |
| | | | | | | | | | |
| | Turkey: 3.30% | | | | | | |
| | | |
| | 1,001,869 | | | Anadolu Hayat Emeklilik AS | | | | | 2,212,869 | |
| | | |
| | 274,000 | | | Cimsa Cimento Sanayi VE Tica | | | | | 1,868,150 | |
| | | |
| | 322,000 | | | Netas Telekomunikasyon AS | | | | | 1,512,584 | |
| | | |
| | 63,100 | | | Turk Traktor ve Ziraat Makineleri AS | | | | | 2,224,710 | |
| | | |
| | | | | | | | | 7,818,313 | |
| | | | | | | | | | |
| | Ukraine: 0.65% | | | | | | |
| | | |
| | 90,000 | | | MHP SA, GDR(c) | | | | | 1,530,000 | |
| | | | | | | | | | |
| | United Kingdom: 6.37% | | | | | | |
| | | |
| | 120,100 | | | AMEC Plc | | | | | 1,835,805 | |
| | | |
| | 46,000 | | | Ensco Plc, Class A(a) | | | | | 2,673,520 | |
| | | |
| | 163,350 | | | Standard Chartered Plc(a) | | | | | 3,545,362 | |
| | | |
| | 46,500 | | | Unilever Plc, Sponsored ADR(a) | | | | | 1,880,925 | |
| | | |
| | 40,497 | | | WPP Group Plc, Sponsored ADR(a) | | | | | 3,458,038 | |
| | | |
| | 100,000 | | | WPP Plc | | | | | 1,706,516 | |
| | | |
| | | | | | | | | 15,100,166 | |
| | | | | | | | | | |
| | United States: 1.10% | | | | | | |
| | | |
| | 7,800 | | | HollyFrontier Corp. | | | | | 333,684 | |
| | | |
| | 21,000 | | | Philip Morris International, Inc.(a) | | | | | 1,819,020 | |
| | | |
| | 5,300 | | | Watsco, Inc. | | | | | 444,988 | |
| | | |
| | | | | | | | | 2,597,692 | |
| | | | | | | | | | |
| | Vietnam: 0.77% | | | | | | |
| | | |
| | 115,000 | | | FPT Corp. | | | | | 226,692 | |
| | | |
| | 2,137,500 | | | Military Commercial Joint Stock Bank | | | | | 1,330,582 | |
| | | |
| | 42,000 | | | Viet Nam Dairy Products JSC | | | | | 261,448 | |
| | | |
| | | | | | | | | 1,818,722 | |
| | | |
| | | | Total Common Stocks (Cost $221,400,963) | | | | | 228,013,836 | |
| | | | | | | | | | |
| Shares | | | | | | | Value (Note 2) | |
| | |
| | Convertible Preferred Stocks: 0.05% | | | | | | |
| | United States: 0.05% | | | | | | |
| | | |
| | 4,500 | | | FelCor Lodging Trust, Inc., Series C, 8.000% | | | | $ | 112,050 | |
| | | |
| | | | Total Convertible Preferred Stocks
(Cost $116,661) | | | | | 112,050 | |
| | |
| | Loan Participation Notes: 0.61% | | | | | | |
| | Pakistan: 0.61% | | | | | | |
| | | |
| | 2,319,500 | | | HUB Power Co., Ltd, Sponsored GDR (Loan Participation Notes issued by Macquarie Bank, Ltd.), expiring 05/05/16 | | | | | 1,437,157 | |
| | | |
| | | | Total Loan Participation Notes
(Cost $1,306,949) | | | | | 1,437,157 | |
| | |
| | Warrants: 0.00%(d) | | | | | | |
| | Malaysia: 0.00%(d) | | | | | | |
| | | |
| | 7,920 | | | Eng Kah Corp. Bhd, Warrants, Strike Price $3.50 (expiring 09/25/17)(b) | | | | | 1,128 | |
| | | |
| | | | Total Warrants
(Cost $0) | | | | | 1,128 | |
| | | |
Principal
Amount | | | | | | | | |
| | |
| | Agency Pass-Through Securities: 0.23% | | | | | | |
| | United States: 0.23% | | | | | | |
| | | |
| | $3,761,480 | | | GNMA
3.500%, 02/16/27(e) | | | | | 411,366 | |
| | | |
| | 938,589 | | | 5.932%, 02/16/36(e)(f) | | | | | 134,579 | |
| | | |
| | | | | | | | | 545,945 | |
| | | |
| | | | Total Agency Pass-Through Securities
(Cost $735,600) | | | | | 545,945 | |
|
| | Collateralized Mortgage Obligations: 2.55% | |
| | United States: 2.55% | |
| | | |
| | 1,000,000 | | | Bear Stearns Commercial Mortgage Securities Trust, Series 2005-T20, Class C
5.145%, 10/12/42(f) | | | | | 1,007,353 | |
| | | |
| | 9,234,318 | | | FHLMC, REMICS
2.500%, 04/15/28(e) | | | | | 1,024,483 | |
| | | |
| | 3,161,824 | | | 3.000%, 06/15/26(e) | | | | | 366,338 | |
| | | |
| | 1,466,795 | | | 3.000%, 09/15/31(e) | | | | | 187,396 | |
| | | |
| | 2,516,558 | | | 3.000%, 06/15/27(e)(f) | | | | | 354,867 | |
| | | |
| | 1,769,589 | | | 3.500%, 04/15/30(e) | | | | | 169,318 | |
| | | |
| | 2,074,443 | | | 4.000%, 12/15/23(e) | | | | | 86,154 | |
| | | | |
| See Notes to Financial Statements | | 53 | | June 30, 2013 |
Portfolio of Investments (Note 10) (Unaudited)
Forward International Dividend Fund
| | | | | | | | | | |
Principal
Amount | | | | Value (Note 2) | |
| | United States (continued): 2.55% | |
| | | |
| | $ 859,610 | | | 4.000%, 07/15/23(e) | | | | $ | 46,217 | |
| | | |
| | 6,253,192 | | | 4.000%, 04/15/36(e) | | | | | 711,451 | |
| | | |
| | 1,252,665 | | | 4.000%, 11/15/28(e) | | | | | 105,867 | |
| | | |
| | 558,835 | | | 5.000%, 02/15/24(e) | | | | | 43,603 | |
| | | |
| | 709,335 | | | 7.008%, 09/15/26(e)(f) | | | | | 117,008 | |
| | | |
| | 401,655 | | | FNMA, REMICS
3.000%, 09/25/27(e) | | | | | 51,905 | |
| | | |
| | 4,713,988 | | | 3.000%, 06/25/27(e) | | | | | 618,749 | |
| | | |
| | 916,953 | | | 4.500%, 12/25/20(e) | | | | | 60,247 | |
| | | |
| | 1,400,174 | | | 5.500%, 05/25/40(e) | | | | | 293,465 | |
| | | |
| | 1,132,746 | | | 5.500%, 09/25/40(e) | | | | | 181,294 | |
| | | |
| | 580,240 | | | 5.907%, 07/25/40(e)(f) | | | | | 132,253 | |
| | | |
| | 757,955 | | | 6.487%, 07/25/41(e)(f) | | | | | 91,354 | |
| | | |
| | 841,239 | | | 7.607%, 04/25/32(e)(f) | | | | | 165,481 | |
| | | |
| | 1,177,549 | | | GNMA, REMICS
6.408%, 09/16/33(e)(f) | | | | | 228,925 | |
| | | |
| | | | | | | | | 6,043,728 | |
| | | |
| | | | Total Collateralized Mortgage Obligations
(Cost $6,452,005) | | | | | 6,043,728 | |
| | |
| | Corporate Bonds: 0.41% | | | | | | |
| | United States: 0.41% | | | | | | |
| | | |
| | 1,000,000 | | | Sirius XM Radio, Inc., Sr. Unsec. Notes
5.250%, 08/15/22(g) | | | | | 975,000 | |
| | | |
| | | | Total Corporate Bonds
(Cost $1,024,265) | | | | | 975,000 | |
| | | |
| | | | Total Investments: 99.99%
(Cost $231,036,443) | | | | | 237,128,844 | |
| | | |
| | | | Net Other Assets and Liabilities: 0.01% | | | | | 34,171 | |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 237,163,015 | |
Percentages are stated as a percent of net assets.
(a) Security, or portion of security, is being held as collateral for the line of credit. At period end, the aggregate market value of those securities was $98,259,468, representing 41.43% of net assets.
(b) Non-income producing security.
(c) Securities were purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such securities cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. These securities have been deemed liquid under guidelines approved by the Fund’s Board of Trustees. At period end, the aggregate market value of those securities was $2,446,627 representing 1.03% of net assets.
(d) Less than 0.005%.
(e) Interest only security.
(f) Interest rate will change at a future date. Interest rate shown reflects the rate in effect at June 30, 2013.
(g) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in the ordinary course of business in transactions exempt from registration, normally to qualified institutional buyers. At period end, the aggregate market value of those securities was $975,000, representing 0.41% of net assets.
Investment Abbreviations:
ADR — American Depositary Receipt
FHLMC — Federal Home Loan Mortgage Corp.
FNMA — Federal National Mortgage Association
GDR — Global Depositary Receipt
GNMA — Government National Mortgage Association
REIT — Real Estate Investment Trust
REMICS — Real Estate Mortgage Investment Conduits
Sr. — Senior
Unsec. — Unsecured
| | | | |
| June 30, 2013 | | 54 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward International Small Companies Fund
| | | | | | | | | | |
| Shares | | | | | | | Value (Note 2) | |
| | |
| | Common Stocks: 92.67% | | | | | | |
| | Australia: 5.81% | | | | | | |
| | | |
| | 130,263 | | | ALS, Ltd. | | | | $ | 1,141,289 | |
| | | |
| | 153,998 | | | carsales.com, Ltd. | | | | | 1,328,115 | |
| | | |
| | 484,807 | | | DUET Group | | | | | 891,197 | |
| | | |
| | 28,159 | | | Flight Centre, Ltd. | | | | | 1,012,862 | |
| | | |
| | 591,354 | | | iSelect, Ltd.(a) | | | | | 919,402 | |
| | | |
| | 72,107 | | | Monadelphous Group, Ltd. | | | | | 1,064,363 | |
| | | |
| | 230,513 | | | SAI Global, Ltd. | | | | | 765,264 | |
| | | |
| | 229,609 | | | Treasury Wine Estates, Ltd. | | | | | 1,222,140 | |
| | | |
| | 285,405 | | | Virtus Health, Ltd.(a) | | | | | 1,683,567 | |
| | | |
| | | | | | | | | 10,028,199 | |
| | | | | | | | | | |
| | Belgium: 0.41% | | | | | | |
| | | |
| | 18,394 | | | ThromboGenics NV(a) | | | | | 705,224 | |
| | | | | | | | | | |
| | China: 0.60% | | | | | | |
| | | |
| | 666,000 | | | Minth Group, Ltd. | | | | | 1,035,573 | |
| | | | | | | | | | |
| | Denmark: 3.48% | | | | | | |
| | | |
| | 48,162 | | | D/S Norden AS | | | | | 1,635,630 | |
| | | |
| | 34,000 | | | FLSmidth & Co., AS | | | | | 1,548,071 | |
| | | |
| | 41,534 | | | Pandora AS | | | | | 1,407,637 | |
| | | |
| | 47,833 | | | SimCorp AS | | | | | 1,419,105 | |
| | | |
| | | | | | | | | 6,010,443 | |
| | | | | | | | | | |
| | France: 6.15% | | | | | | |
| | | |
| | 211,796 | | | Altran Technologies SA(a) | | | | | 1,466,632 | |
| | | |
| | 32,211 | | | Ingenico SA | | | | | 2,146,673 | |
| | | |
| | 55,837 | | | Teleperformance SA | | | | | 2,687,700 | |
| | | |
| | 182,565 | | | UBISOFT Entertainment(a) | | | | | 2,390,602 | |
| | | |
| | 30,385 | | | Valeo SA | | | | | 1,909,692 | |
| | | |
| | | | | | | | | 10,601,299 | |
| | | | | | | | | | |
| | Germany: 7.74% | | | | | | |
| | | |
| | 43,822 | | | Aareal Bank AG(a) | | | | | 1,021,026 | |
| | | |
| | 87,725 | | | Aixtron SE(a) | | | | | 1,474,720 | |
| | | |
| | 115,996 | | | Dialog Semiconductor Plc(a) | | | | | 1,452,177 | |
| | | |
| | 30,392 | | | Krones AG | | | | | 2,163,510 | |
| | | |
| | 23,639 | | | Morphosys AG(a) | | | | | 1,330,628 | |
| | | |
| | 22,712 | | | MTU Aero Engines AG | | | | | 2,190,612 | |
| | | | | | | | | | |
| Shares | | | | | | | Value (Note 2) | |
| | | | | | | |
| | | |
| | 18,156 | | | Pfeiffer Vacuum Technology AG | | | | $ | 1,881,157 | |
| | | |
| | 154,736 | | | TUI AG(a) | | | | | 1,839,487 | |
| | | |
| | | | | | | | | 13,353,317 | |
| | | | | | | | | | |
| | Hong Kong: 2.46% | | | | | | |
| | | |
| | 1,090,168 | | | Daphne International Holdings, Ltd. | | | | | 933,299 | |
| | | |
| | 695,429 | | | Esprit Holdings, Ltd. | | | | | 1,036,502 | |
| | | |
| | 651,332 | | | SmarTone Telecommunications Holdings, Ltd. | | | | | 1,081,627 | |
| | | |
| | 1,538,000 | | | Xinyi Glass Holdings, Ltd. | | | | | 1,195,730 | |
| | | |
| | | | | | | | | 4,247,158 | |
| | | | | | | | | | |
| | Ireland: 1.02% | | | | | | |
| | | |
| | 105,054 | | | Smurfit Kappa Group Plc | | | | | 1,754,410 | |
| | | | | | | | | | |
| | Italy: 6.21% | | | | | | |
| | | |
| | 61,181 | | | De’Longhi SpA | | | | | 956,426 | |
| | | |
| | 21,002 | | | DiaSorin SpA | | | | | 838,429 | |
| | | |
| | 1,267,272 | | | Fondiaria-Sai SpA(a) | | | | | 2,332,443 | |
| | | |
| | 261,188 | | | Mediolanum SpA | | | | | 1,618,274 | |
| | | |
| | 96,572 | | | Prysmian SpA | | | | | 1,803,827 | |
| | | |
| | 104,350 | | | Safilo Group SpA(a) | | | | | 2,000,723 | |
| | | |
| | 455,579 | | | Sorin SpA(a) | | | | | 1,156,352 | |
| | | |
| | | | | | | | | 10,706,474 | |
| | | | | | | | | | |
| | Japan: 26.72% | | | | | | |
| | | |
| | 398,000 | | | 77 Bank, Ltd. | | | | | 1,890,079 | |
| | | |
| | 86,900 | | | Anritsu Corp. | | | | | 1,029,517 | |
| | | |
| | 53,500 | | | Coca-Cola West Co., Ltd. | | | | | 949,385 | |
| | | |
| | 673 | | | CyberAgent, Inc. | | | | | 1,289,272 | |
| | | |
| | 82,359 | | | Daiseki Co., Ltd. | | | | | 1,441,573 | |
| | | |
| | 20,600 | | | Disco Corp. | | | | | 1,422,767 | |
| | | |
| | 30,000 | | | Don Quijote Co., Ltd. | | | | | 1,459,468 | |
| | | |
| | 65,600 | | | Foster Electric Co., Ltd. | | | | | 1,077,459 | |
| | | |
| | 70,000 | | | Hitachi Capital Corp. | | | | | 1,385,461 | |
| | | |
| | 51,807 | | | Hoshizaki Electric Co., Ltd. | | | | | 1,661,083 | |
| | | |
| | 3,293 | | | Japan Hotel REIT Investment Corp. | | | | | 1,245,085 | |
| | | |
| | 31,400 | | | Japan Petroleum Exploration Co., Ltd. | | | | | 1,274,299 | |
| | | |
| | 104,588 | | | JSR Corp. | | | | | 2,115,381 | |
| | | |
| | 186,300 | | | JTEKT Corp. | | | | | 2,096,298 | |
| | | | |
| See Notes to Financial Statements | | 55 | | June 30, 2013 |
Portfolio of Investments (Note 10) (Unaudited)
Forward International Small Companies Fund
| | | | | | | | | | |
| Shares | | | | | | | Value (Note 2) | |
| | Japan (continued): 26.72% | | | | | | |
| | | |
| | 60,000 | | | Kyorin Co., Ltd. | | | | $ | 1,379,310 | |
| | | |
| | 41,500 | | | Miraca Holdings, Inc. | | | | | 1,908,046 | |
| | | |
| | 53,816 | | | Musashi Seimitsu Industry Co., Ltd. | | | | | 1,297,379 | |
| | | |
| | 71,100 | | | Nabtesco Corp. | | | | | 1,478,920 | |
| | | |
| | 246,000 | | | Nippon Electric Glass Co., Ltd. | | | | | 1,198,004 | |
| | | |
| | 193 | | | Nippon Prologis REIT, Inc. | | | | | 1,679,361 | |
| | | |
| | 1,484 | | | Nomura Real Estate Master Fund, Inc.(a) | | | | | 1,472,329 | |
| | | |
| | 72,900 | | | Pola Orbis Holdings, Inc. | | | | | 2,466,016 | |
| | | |
| | 322,300 | | | Sapporo Holdings, Ltd. | | | | | 1,182,872 | |
| | | |
| | 77,100 | | | SBI Holdings, Inc. | | | | | 851,225 | |
| | | |
| | 162,000 | | | Shimadzu Corp. | | | | | 1,303,448 | |
| | | |
| | 48,400 | | | Sundrug Co., Ltd. | | | | | 2,054,487 | |
| | | |
| | 29,800 | | | TDK Corp. | | | | | 1,029,088 | |
| | | |
| | 282,100 | | | Tokyo Steel Manufacturing Co., Ltd. | | | | | 935,782 | |
| | | |
| | 135,400 | | | Tokyo Tatemono Co., Ltd. | | | | | 1,127,651 | |
| | | |
| | 93,949 | | | Toshiba Plant Systems & Services Corp. | | | | | 1,407,625 | |
| | | |
| | 796 | | | United Urban Investment Corp. | | | | | 1,076,261 | |
| | | |
| | 158,700 | | | Yokogawa Electric Corp. | | | | | 1,899,344 | |
| | | |
| | | | | | | | | 46,084,275 | |
| | | | | | | | | | |
| | Netherlands: 2.23% | | | | | | |
| | | |
| | 36,901 | | | ASM International NV | | | | | 1,245,467 | |
| | | |
| | 43,336 | | | Nutreco NV | | | | | 1,841,721 | |
| | | |
| | 116,299 | | | USG People NV | | | | | 756,899 | |
| | | |
| | | | | | | | | 3,844,087 | |
| | | | | | | | | | |
| | New Zealand: 0.70% | | | | | | |
| | | |
| | 691,092 | | | Telecom Corp. of New Zealand, Ltd. | | | | | 1,205,010 | |
| | | | | | | | | | |
| | Norway: 1.99% | | | | | | |
| | | |
| | 1,667,464 | | | Marine Harvest ASA | | | | | 1,690,976 | |
| | | |
| | 59,810 | | | TGS NOPEC Geophysical Co., ASA | | | | | 1,737,875 | |
| | | |
| | | | | | | | | 3,428,851 | |
| | | | | | | | | | |
| | Singapore: 2.20% | | | | | | |
| | | |
| | 818,000 | | | ComfortDelGro Corp., Ltd. | | | | | 1,184,245 | |
| | | |
| | 1,341,000 | | | Mapletree Greater China Commercial Trust(a) | | | | | 999,799 | |
| | | |
| | 1,293,000 | | | Suntec REIT | | | | | 1,606,686 | |
| | | |
| | | | | | | | | 3,790,730 | |
| | | | | | | | | | |
| Shares | | | | | | | Value (Note 2) | |
| | Spain: 1.33% | | | | | | |
| | | |
| | 138,293 | | | Jazztel Plc(a) | | | | $ | 1,074,648 | |
| | | |
| | 24,466 | | | Viscofan SA | | | | | 1,225,752 | |
| | | |
| | | | | | | | | 2,300,400 | |
| | | | | | | | | | |
| | Sweden: 1.17% | | | | | | |
| | | |
| | 47,548 | | | Modern Times Group AB, Class B | | | | | 2,026,397 | |
| | | | | | | | | | |
| | Switzerland: 3.63% | | | | | | |
| | | |
| | 23,940 | | | Aryzta AG | | | | | 1,345,841 | |
| | | |
| | 37,268 | | | BKW AG | | | | | 1,128,437 | |
| | | |
| | 154,960 | | | Kudelski SA-BR | | | | | 1,927,669 | |
| | | |
| | 5,916 | | | Kuoni Reisen Holding AG, Class B | | | | | 1,864,897 | |
| | | |
| | | | | | | | | 6,266,844 | |
| | | | | | | | | | |
| | United Kingdom: 18.82% | | | | | | |
| | | |
| | 46,019 | | | Aveva Group Plc | | | | | 1,577,642 | |
| | | |
| | 541,778 | | | Barratt Developments Plc(a) | | | | | 2,551,172 | |
| | | |
| | 405,931 | | | BBA Aviation Plc | | | | | 1,729,350 | |
| | | |
| | 146,710 | | | Daily Mail & General Trust Plc NV, Class A | | | | | 1,717,061 | |
| | | |
| | 51,667 | | | Derwent London Plc | | | | | 1,807,418 | |
| | | |
| | 106,884 | | | Domino Printing Sciences Plc | | | | | 1,014,413 | |
| | | |
| | 592,623 | | | EnQuest Plc(a) | | | | | 1,065,402 | |
| | | |
| | 123,180 | | | Hunting Plc | | | | | 1,371,414 | |
| | | |
| | 228,188 | | | IG Group Holdings Plc | | | | | 2,012,974 | |
| | | |
| | 322,547 | | | Informa Plc | | | | | 2,404,336 | |
| | | |
| | 277,503 | | | International Personal Finance Plc | | | | | 2,106,132 | |
| | | |
| | 603,949 | | | Melrose Plc | | | | | 2,290,024 | |
| | | |
| | 341,841 | | | Mitchells & Butlers Plc(a) | | | | | 1,928,406 | |
| | | |
| | 669,421 | | | Moneysupermarket.com Group Plc | | | | | 1,950,798 | |
| | | |
| | 395,034 | | | Premier Farnell Plc | | | | | 1,213,678 | |
| | | |
| | 221,554 | | | Premier Oil Plc | | | | | 1,122,462 | |
| | | |
| | 413,968 | | | RPS Group Plc | | | | | 1,271,849 | |
| | | |
| | 35,942 | | | Spirax-Sarco Engineering Plc | | | | | 1,468,884 | |
| | | |
| | 225,846 | | | St. James’s Place Capital Plc | | | | | 1,854,913 | |
| | | |
| | | | | | | | | 32,458,328 | |
| | | |
| | | | Total Common Stocks
(Cost $129,791,606) | | | | | 159,847,019 | |
| | | | |
| June 30, 2013 | | 56 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward International Small Companies Fund
| | | | | | | | | | |
| Shares | | | | | | | Value (Note 2) | |
| | |
| | Exchange-Traded Funds: 3.31% | | | | | | |
| | United States: 3.31% | | | | | | |
| | | |
| | 136,280 | | | iShares® MSCI EAFE Small Cap Index Fund | | | | $ | 5,715,583 | |
| | | |
| | | | Total Exchange-Traded Funds
(Cost $5,807,421) | | | | | 5,715,583 | |
| | |
| | Preferred Stocks: 1.15% | | | | | | |
| | Germany: 1.15% | | | | | | |
| | | |
| | 14,430 | | | Draegerwerk AG & Co. KGAA | | | | | 1,977,819 | |
| | | |
| | | | Total Preferred Stocks
(Cost $1,421,219) | | | | | 1,977,819 | |
| | | |
| | | | Total Investments: 97.13%
(Cost $137,020,246) | | | | | 167,540,421 | |
| | | |
| | | | Net Other Assets and Liabilities: 2.87% | | | | | 4,947,271 | |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 172,487,692 | |
Percentages are stated as a percent of net assets.
(a) Non-income producing security.
Investment Abbreviations:
EAFE — Europe, Australasia, Far East
MSCI — Morgan Stanley Capital International
REIT — Real Estate Investment Trust
| | | | |
| See Notes to Financial Statements | | 57 | | June 30, 2013 |
Portfolio of Investments (Note 10) (Unaudited)
Forward Select EM Dividend Fund
| | | | | | | | | | |
| Shares | | | | | | | Value (Note 2) | |
| | |
| | Common Stocks: 75.81% | | | | | | |
| | Brazil: 2.19% | | | | | | |
| | | |
| | 89,100 | | | BM&F Bovespa SA | | | | $ | 489,554 | |
| | | |
| | 31,300 | | | Cia Hering | | | | | 442,283 | |
| | | |
| | | | | | | | | 931,837 | |
| | | | | | | | | | |
| | Chile: 1.42% | | | | | | |
| | | |
| | 19,800 | | | Corpbanca SA, ADR(a) | | | | | 338,580 | |
| | | |
| | 136,300 | | | Vina Concha Y Toro SA | | | | | 266,285 | |
| | | |
| | | | | | | | | 604,865 | |
| | | | | | | | | | |
| | China: 5.28% | | | | | | |
| | | |
| | 9,750 | | | China Petroleum & Chemical Corp., ADR(a) | | | | | 892,125 | |
| | | |
| | 1,449,276 | | | Goodbaby International Holdings, Ltd. | | | | | 571,455 | |
| | | |
| | 20,800 | | | Mindray Medical International, Ltd., ADR(a) | | | | | 778,960 | |
| | | |
| | | | | | | | | 2,242,540 | |
| | | | | | | | | | |
| | Colombia: 0.87% | | | | | | |
| | | |
| | 25,000,000 | | | Bolsa De Valores de Colombia | | | | | 369,467 | |
| | | | | | | | | | |
| | Egypt: 0.91% | | | | | | |
| | | |
| | 28,337 | | | Eastern Tobacco | | | | | 387,510 | |
| | | | | | | | | | |
| | Estonia: 0.99% | | | | | | |
| | | |
| | 33,865 | | | Silvano Fashion Group AS, Class A | | | | | 113,131 | |
| | | |
| | 90,000 | | | Silvano Fashion Group AS, Class A, Euro | | | | | 306,873 | |
| | | |
| | | | | | | | | 420,004 | |
| | | | | | | | | | |
| | France: 0.02% | | | | | | |
| | | |
| | 268 | | | Lagardere SCA | | | | | 7,478 | |
| | | | | | | | | | |
| | Hong Kong: 5.06% | | | | | | |
| | | |
| | 140,000 | | | First Pacific Co., Ltd. | | | | | 149,659 | |
| | | |
| | 107,300 | | | First Pacific Co., Ltd., Sponsored ADR(a) | | | | | 589,614 | |
| | | |
| | 16,000 | | | Guangdong Investment, Ltd., Unsponsored ADR(a) | | | | | 687,280 | |
| | | |
| | 960,000 | | | Kingway Brewery Holdings, Ltd.(b) | | | | | 345,931 | |
| | | |
| | 147,163 | | | YGM Trading, Ltd. | | | | | 378,882 | |
| | | |
| | | | | | | | | 2,151,366 | |
| | | | | | | | | | |
| | Indonesia: 9.11% | | | | | | |
| | | |
| | 638,000 | | | PT AKR Corporindo Tbk | | | | | 338,696 | |
| | | |
| | 5,240,300 | | | PT Astra Graphia Tbk | | | | | 757,401 | |
| | | |
| | 358,500 | | | PT Bank Mandiri Tbk | | | | | 323,344 | |
| | | | | | | | | | |
| Shares | | | | | | | Value (Note 2) | |
| | | | | | | |
| | | |
| | 3,025,000 | | | PT Kalbe Farma Tbk | | | | $ | 436,680 | |
| | | |
| | 2,536,500 | | | PT Media Nusantara Citra Tbk | | | | | 797,000 | |
| | | |
| | 408,000 | | | PT Tambang Batubara Bukit Asam Tbk | | | | | 543,002 | |
| | | |
| | 15,800 | | | PT Telekomunikasi Indonesia Tbk, Sponsored ADR(a) | | | | | 675,292 | |
| | | |
| | | | | | | | | 3,871,415 | |
| | | | | | | | | | |
| | Italy: 2.07% | | | | | | |
| | | |
| | 58,325 | | | Danieli & Compagnia Officine Meccaniche SpA | | | | | 878,640 | |
| | | | | | | | | | |
| | Malaysia: 2.21% | | | | | | |
| | | |
| | 135,202 | | | Eng Kah Corp. Bhd | | | | | 133,084 | |
| | | |
| | 736 | | | JobStreet Corp. Bhd | | | | | 909 | |
| | | |
| | 404,000 | | | Malaysia Airports Holdings Bhd | | | | | 806,848 | |
| | | |
| | | | | | | | | 940,841 | |
| | | | | | | | | | |
| | Mexico: 1.00% | | | | | | |
| | | |
| | 4,100 | | | Fomento Economico Mexicano SAB de CV, Sponsored ADR(a) | | | | | 423,079 | |
| | | | | | | | | | |
| | Netherlands: 0.02% | | | | | | |
| | | |
| | 298 | | | Koninklijke Philips NV, ADR | | | | | 8,094 | |
| | | | | | | | | | |
| | Nigeria: 0.95% | | | | | | |
| | | |
| | 2,700,000 | | | Guaranty Trust Bank Plc | | | | | 402,643 | |
| | | | | | | | | | |
| | Pakistan: 0.10% | | | | | | |
| | | |
| | 2,700 | | | HUB Power Co., Ltd, Sponsored GDR(c) | | | | | 41,715 | |
| | | | | | | | | | |
| | Peru: 2.07% | | | | | | |
| | | |
| | 110,000 | | | Alicorp SA | | | | | 369,698 | |
| | | |
| | 4,000 | | | Credicorp, Ltd.(a) | | | | | 511,840 | |
| | | |
| | | | | | | | | 881,538 | |
| | | | | | | | | | |
| | Russia: 3.14% | | | | | | |
| | | |
| | 152,400 | | | Hydraulic Machines and Systems Group Plc, GDR(c) | | | | | 372,533 | |
| | | |
| | 16,673 | | | Lukoil OAO, Sponsored ADR(a) | | | | | 961,198 | |
| | | |
| | | | | | | | | 1,333,731 | |
| | | | | | | | | | |
| | Singapore: 3.86% | | | | | | |
| | | |
| | 57,499 | | | China Yuchai International, Ltd.(a) | | | | | 1,013,708 | |
| | | |
| | 405,600 | | | OSIM International, Ltd. | | | | | 627,467 | |
| | | |
| | | | | | | | | 1,641,175 | |
| | | | |
| June 30, 2013 | | 58 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward Select EM Dividend Fund
| | | | | | | | | | |
| Shares | | | | | | | Value (Note 2) | |
| | South Africa: 1.35% | | | | | | |
| | | |
| | 47,200 | | | Gold Fields, Ltd., Sponsored ADR(a) | | | | $ | 247,800 | |
| | | |
| | 21,091 | | | Kumba Iron Ore, Ltd., ADR(a) | | | | | 324,380 | |
| | | |
| | | | | | | | | 572,180 | |
| | | | | | | | | | |
| | South Korea: 1.24% | | | | | | |
| | | |
| | 17,000 | | | Grand Korea Leisure Co., Ltd. | | | | | 525,261 | |
| | | | | | | | | | |
| | Sri Lanka: 2.11% | | | | | | |
| | | |
| | 418,000 | | | Commercial Bank of Ceylon Plc, Non-Voting Depository Receipt | | | | | 303,414 | |
| | | |
| | 317,316 | | | Hatton National Bank Plc, Non-Voting Depository Receipt | | | | | 287,385 | |
| | | |
| | 6,000,000 | | | Piramal Glass Ceylon Plc | | | | | 303,681 | |
| | | |
| | | | | | | | | 894,480 | |
| | | | | | | | | | |
| | Taiwan: 4.21% | | | | | | |
| | | |
| | 48,300 | | | Asustek Computer, Inc. | | | | | 413,196 | |
| | | |
| | 685,500 | | | Formosan Rubber Group, Inc. | | | | | 562,954 | |
| | | |
| | 325,500 | | | Kinik Co. | | | | | 557,716 | |
| | | |
| | 16,000 | | | TPK Holding Co., Ltd. | | | | | 254,525 | |
| | | |
| | | | | | | | | 1,788,391 | |
| | | | | | | | | | |
| | Thailand: 11.91% | | | | | | |
| | | |
| | 380,000 | | | Charoen Pokphand Foods Pcl(a) | | | | | 314,636 | |
| | | |
| | 7,051,775 | | | Jasmine International Pcl(a) | | | | | 1,771,032 | |
| | | |
| | 37,966 | | | PTT Exploration & Production Pcl(a) | | | | | 193,107 | |
| | | |
| | 95,200 | | | Shin Corp. Pcl(a) | | | | | 264,823 | |
| | | |
| | 166,340 | | | Shin Corp. Pcl, Non-Voting Depository Receipt(a) | | | | | 462,716 | |
| | | |
| | 150,000 | | | Siam Commercial Bank Pcl, Non-Voting Depository Receipt(a) | | | | | 825,992 | |
| | | |
| | 550,000 | | | SNC Former Pcl, Non-Voting Depository Receipt(a) | | | | | 429,686 | |
| | | |
| | 264,800 | | | Supalai Public Co., Ltd. | | | | | 150,307 | |
| | | |
| | 2,000,000 | | | Thai Tap Water Supply Pcl(a) | | | | | 650,275 | |
| | | |
| | | | | | | | | 5,062,574 | |
| | | | | | | | | | |
| | Turkey: 5.92% | | | | | | |
| | | |
| | 276,501 | | | Anadolu Hayat Emeklilik AS | | | | | 609,725 | |
| | | |
| | 73,100 | | | Cimsa Cimento Sanayi VE Tica | | | | | 497,829 | |
| | | |
| | 85,000 | | | Netas Telekomunikasyon AS | | | | | 398,260 | |
| | | |
| | 121,000 | | | Tekfen Holding AS | | | | | 413,435 | |
| | | | | | | | | | |
| Shares | | | | | | | Value (Note 2) | |
| | | | | | | | |
| | | |
| | 16,900 | | | Turk Traktor ve Ziraat Makineleri AS | | | | $ | 595,449 | |
| | | |
| | | | | | | | | 2,514,698 | |
| | | | | | | | | | |
| | Ukraine: 1.08% | | | | | | |
| | | |
| | 27,005 | | | MHP SA, GDR(c) | | | | | 459,085 | |
| | | | | | | | | | |
| | United Kingdom: 3.09% | | | | | | |
| | | |
| | 15,000 | | | Bank of Georgia Holdings Plc | | | | | 380,322 | |
| | | |
| | 20,550 | | | Standard Chartered Plc | | | | | 446,151 | |
| | | |
| | 12,000 | | | Unilever Plc, Sponsored ADR(a) | | | | | 485,400 | |
| | | |
| | | | | | | | | 1,311,873 | |
| | | | | | | | | | |
| | United States: 1.97% | | | | | | |
| | | |
| | 1,400 | | | HollyFrontier Corp. | | | | | 59,892 | |
| | | |
| | 8,400 | | | Philip Morris International, Inc.(a) | | | | | 727,608 | |
| | | |
| | 600 | | | Watsco, Inc. | | | | | 50,376 | |
| | | |
| | | | | | | | | 837,876 | |
| | | | | | | | | | |
| | Vietnam: 1.66% | | | | | | |
| | | |
| | 712,500 | | | Military Commercial Joint Stock Bank | | | | | 443,413 | |
| | | |
| | 42,000 | | | Viet Nam Dairy Products JSC | | | | | 261,448 | |
| | | |
| | | | | | | | | 704,861 | |
| | | |
| | | | Total Common Stocks
(Cost $31,515,560) | | | | | 32,209,217 | |
| | |
| | Loan Participation Notes: 0.55% | | | | | | |
| | Pakistan: 0.55% | | | | | | |
| | | |
| | 375,500 | | | HUB Power Co., Ltd, Sponsored GDR (Loan Participation Notes issued by Macquarie Bank, Ltd.), expiring 05/05/16 | | | | | 232,659 | |
| | | |
| | | | Total Loan Participation Notes
(Cost $215,800) | | | | | 232,659 | |
| | |
| | Preferred Stocks: 0.94% | | | | | | |
| | Brazil: 0.94% | | | | | | |
| | | |
| | 10,700 | | | Companhia de Bebidas das Americas, Preferred ADR(a) | | | | | 399,645 | |
| | | |
| | | | Total Preferred Stocks
(Cost $410,142) | | | | | 399,645 | |
| | | | |
| See Notes to Financial Statements | | 59 | | June 30, 2013 |
Portfolio of Investments (Note 10) (Unaudited)
Forward Select EM Dividend Fund
| | | | | | | | | | |
| Shares | | | | | | | Value (Note 2) | |
| | |
| | Warrants: 0.01% | | | | | | |
| | Malaysia: 0.01% | | | | | | |
| | | |
| | 16,170 | | | Eng Kah Corp. Bhd, Warrants, Strike Price $3.50 (expiring 09/25/17)(b) | | | | $ | 2,303 | |
| | | |
| | | | Total Warrants
(Cost $0) | | | | | 2,303 | |
| | | |
Principal
Amount | | | | | | | | |
| | |
| | Collateralized Mortgage Obligations: 4.07% | | | | | | |
| | United States: 4.07% | | | | | | |
| | | |
| | $3,365,089 | | | FHLMC, REMICS
2.500%, 04/15/28(d) | | | | | 373,225 | |
| | | |
| | 357,755 | | | 3.000%, 09/15/31(d) | | | | | 45,675 | |
| | | |
| | 2,918,475 | | | 3.000%, 05/15/26(d) | | | | | 311,845 | |
| | | |
| | 725,494 | | | 3.000%, 06/15/27(d)(e) | | | | | 102,263 | |
| | | |
| | 1,241,404 | | | 3.500%, 12/15/26(d) | | | | | 144,518 | |
| | | |
| | 698,319 | | | 4.000%, 05/15/26(d) | | | | | 87,726 | |
| | | |
| | 111,827 | | | 6.608%, 04/15/38(d)(e) | | | | | 20,189 | |
| | | |
| | 1,571,358 | | | FNMA, REMICS
3.000%, 06/25/27(d) | | | | | 206,172 | |
| | | |
| | 112,779 | | | 5.000%, 03/25/23(d) | | | | | 7,861 | |
| | | |
| | 63,981 | | | 5.000%, 03/25/24(d) | | | | | 5,357 | |
| | | |
| | 1,745,318 | | | 6.217%, 06/25/37(d)(e) | | | | | 283,707 | |
| | | |
| | 25,902 | | | 6.307%, 08/25/36(d)(e) | | | | | 5,304 | |
| | | |
| | 57,743 | | | 7.000%, 06/25/33(d) | | | | | 7,150 | |
| | | |
| | 343,967 | | | GNMA, REMICS
4.500%, 05/16/35(d) | | | | | 25,964 | |
| | | |
| | 81,184 | | | 5.508%, 12/20/38(d)(e) | | | | | 10,992 | |
| | | |
| | 392,516 | | | 6.408%, 09/16/33(d)(e) | | | | | 76,370 | |
| | | |
| | 97,897 | | | 6.500%, 03/20/39(d) | | | | | 16,267 | |
| | | |
| | | | | | | | | 1,730,585 | |
| | | |
| | | | Total Collateralized Mortgage Obligations
(Cost $1,898,907) | | | | | 1,730,585 | |
| | | |
| | | | Total Investments: 81.38%
(Cost $34,040,409) | | | | | 34,574,409 | |
| | | |
| | | | Net Other Assets and Liabilities: 18.62% | | | | | 7,912,098 | (f) |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 42,486,507 | |
Percentages are stated as a percent of net assets.
(a) Security, or portion of security, is being held as collateral for the line of credit. At period end, the aggregate market value of those securities was $10,534,146, representing 24.79% of net assets.
(b) Non-income producing security.
(c) Securities were purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such securities cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. These securities have been deemed liquid under guidelines approved by the Fund’s Board of Trustees. At period end, the aggregate market value of those securities was $873,333 representing 2.06% of net assets.
(d) Interest only security.
(e) Interest rate will change at a future date. Interest rate shown reflects the rate in effect at June 30, 2013.
(f) Includes cash which is being held as collateral for futures contracts.
| | | | |
| June 30, 2013 | | 60 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward Select EM Dividend Fund
Futures Contracts
| | | | | | | | | | | | | | | | | | |
| Description | | Position | | Contracts | | | Expiration
Date | | | Value | | | Unrealized
Gain | |
MSCI Emerging Markets E-Mini Future | | Long | | | 60 | | | | 09/21/13 | | | $ | 2,801,100 | | | $ | 131,279 | |
| Total Futures Contracts | | | | | | | | | | | | $ | 2,801,100 | | | $ | 131,279 | |
Investment Abbreviations:
ADR — American Depositary Receipt
FHLMC — Federal Home Loan Mortgage Corporation
FNMA — Federal National Mortgage Association
GDR — Global Depositary Receipt
GNMA — Government National Mortgage Association
MSCI — Morgan Stanley Capital International
REMICS — Real Estate Mortgage Investment Conduits
| | | | |
| See Notes to Financial Statements | | 61 | | June 30, 2013 |
Portfolio of Investments (Note 10) (Unaudited)
Forward Small Cap Equity Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
|
| | Common Stocks: 88.65% | |
| | Consumer Discretionary: 18.89% | |
| | | |
| | 24,500 | | | AFC Enterprises, Inc.(a) | | | | $ | 880,530 | |
| | | |
| | 5,000 | | | Arctic Cat, Inc. | | | | | 224,900 | |
| | | |
| | 70,000 | | | Christopher & Banks Corp.(a) | | | | | 471,800 | |
| | | |
| | 10,000 | | | Deckers Outdoor Corp.(a) | | | | | 505,100 | |
| | | |
| | 10,000 | | | Destination Maternity Corp. | | | | | 246,000 | |
| | | |
| | 20,000 | | | Diversified Restaurant Holdings, Inc.(a) | | | | | 159,200 | |
| | | |
| | 15,000 | | | Domino’s Pizza, Inc. | | | | | 872,250 | |
| | | |
| | 28,000 | | | IMAX Corp.(a) | | | | | 696,080 | |
| | | |
| | 10,000 | | | K12, Inc.(a) | | | | | 262,700 | |
| | | |
| | 15,000 | | | Movado Group, Inc. | | | | | 507,450 | |
| | | |
| | 100,000 | | | Pacific Sunwear of California, Inc.(a) | | | | | 365,000 | |
| | | |
| | 10,000 | | | Pier 1 Imports, Inc. | | | | | 234,900 | |
| | | |
| | 20,000 | | | Quiksilver, Inc.(a) | | | | | 128,800 | |
| | | |
| | 20,000 | | | Regal Entertainment Group, Class A | | | | | 358,000 | |
| | | |
| | 10,000 | | | Sotheby’s | | | | | 379,100 | |
| | | |
| | 7,500 | | | Weight Watchers International, Inc. | | | | | 345,000 | |
| | | |
| | | | | | | | | 6,636,810 | |
| | | | | | | | | | |
| | Consumer Staples: 3.07% | |
| | | |
| | 10,000 | | | Limoneira Co. | | | | | 207,300 | |
| | | |
| | 20,000 | | | National Beverage Corp. | | | | | 349,400 | |
| | | |
| | 4,000 | | | Sanderson Farms, Inc. | | | | | 265,680 | |
| | | |
| | 15,800 | | | Whitewave Foods Co., Class A(a) | | | | | 256,750 | |
| | | |
| | | | | | | | | 1,079,130 | |
| | | | | | | | | | |
| | Energy: 5.82% | |
| | | |
| | 5,000 | | | Bonanza Creek Energy, Inc.(a) | | | | | 177,300 | |
| | | |
| | 80,000 | | | Kodiak Oil & Gas Corp.(a) | | | | | 711,200 | |
| | | |
| | 25,000 | | | Laredo Petroleum Holdings, Inc.(a) | | | | | 514,000 | |
| | | |
| | 1,400 | | | Lufkin Industries, Inc. | | | | | 123,858 | |
| | | |
| | 5,000 | | | PDC Energy, Inc.(a) | | | | | 257,400 | |
| | | |
| | 15,000 | | | Resolute Energy Corp.(a) | | | | | 119,700 | |
| | | |
| | 5,000 | | | Western Refining, Inc. | | | | | 140,350 | |
| | | |
| | | | | | | | | 2,043,808 | |
| | | | | | | | | | |
| | Financials: 13.02% | |
| | | |
| | 10,000 | | | Ares Commercial Real Estate Corp. | | | | | 128,100 | |
| | | |
| | 20,000 | | | BioMed Realty Trust, Inc. | | | | | 404,600 | |
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | | | | | | |
| | | |
| | 10,000 | | | Community Bank System, Inc. | | | | $ | 308,500 | |
| | | |
| | 13,900 | | | DuPont Fabros Technology, Inc. | | | | | 335,685 | |
| | | |
| | 20,000 | | | Education Realty Trust, Inc. | | | | | 204,600 | |
| | | |
| | 5,000 | | | Evercore Partners, Inc., Class A | | | | | 196,400 | |
| | | |
| | 100,000 | | | FelCor Lodging Trust, Inc.(a) | | | | | 591,000 | |
| | | |
| | 30,000 | | | Glacier Bancorp, Inc. | | | | | 665,700 | |
| | | |
| | 50,000 | | | MPG Office Trust, Inc.(a) | | | | | 157,000 | |
| | | |
| | 5,000 | | | Post Properties, Inc. | | | | | 247,450 | |
| | | |
| | 2,500 | | | PS Business Parks, Inc. | | | | | 180,425 | |
| | | |
| | 1,400 | | | Sovran Self Storage, Inc. | | | | | 90,706 | |
| | | |
| | 10,000 | | | Spirit Realty Capital, Inc. | | | | | 177,200 | |
| | | |
| | 60,000 | | | Strategic Hotels & Resorts, Inc.(a) | | | | | 531,600 | |
| | | |
| | 25,000 | | | TCF Financial Corp. | | | | | 354,500 | |
| | | |
| | | | | | | | | 4,573,466 | |
| | | | | | | | | | |
| | Health Care: 18.17% | |
| | | |
| | 12,500 | | | Aegerion Pharmaceuticals, Inc.(a) | | | | | 791,750 | |
| | | |
| | 15,000 | | | Auxilium Pharmaceuticals, Inc.(a) | | | | | 249,450 | |
| | | |
| | 20,000 | | | Cepheid, Inc.(a) | | | | | 688,400 | |
| | | |
| | 14,900 | | | Clovis Oncology, Inc.(a) | | | | | 998,002 | |
| | | |
| | 10,500 | | | HeartWare International, Inc.(a) | | | | | 998,655 | |
| | | |
| | 20,000 | | | HMS Holdings Corp.(a) | | | | | 466,000 | |
| | | |
| | 15,500 | | | KYTHERA Biopharmaceuticals, Inc.(a) | | | | | 419,275 | |
| | | |
| | 15,000 | | | Momenta Pharmaceuticals, Inc.(a) | | | | | 225,900 | |
| | | |
| | 40,000 | | | Neurocrine Biosciences, Inc.(a) | | | | | 535,200 | |
| | | |
| | 40,000 | | | Orexigen Therapeutics, Inc.(a) | | | | | 234,000 | |
| | | |
| | 15,000 | | | Theravance, Inc.(a) | | | | | 577,950 | |
| | | |
| | 55,000 | | | XOMA Corp.(a) | | | | | 199,650 | |
| | | |
| | | | | | | | | 6,384,232 | |
| | | | | | | | | | |
| | Industrials: 5.53% | |
| | | |
| | 10,000 | | | Actuant Corp., Class A | | | | | 329,700 | |
| | | |
| | 5,000 | | | Astronics Corp.(a) | | | | | 204,350 | |
| | | |
| | 20,000 | | | Great Lakes Dredge & Dock Corp. | | | | | 156,400 | |
| | | |
| | 20,000 | | | Hexcel Corp.(a) | | | | | 681,000 | |
| | | |
| | 20,000 | | | KEYW Holding Corp.(a) | | | | | 265,000 | |
| | | | |
| June 30, 2013 | | 62 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward Small Cap Equity Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | Industrials (continued): 5.53% | |
| | | |
| | 15,000 | | | Thermon Group Holdings, Inc.(a) | | | | $ | 306,000 | |
| | | |
| | | | | | | | | 1,942,450 | |
| | | | | | | | | | |
| | Information Technology: 13.26% | |
| | | |
| | 15,000 | | | AVG Technologies(a) | | | | | 291,750 | |
| | | |
| | 20,000 | | | Ciena Corp.(a) | | | | | 388,400 | |
| | | |
| | 10,000 | | | CUI Global, Inc.(a) | | | | | 55,500 | |
| | | |
| | 7,500 | | | FEI Co. | | | | | 547,425 | |
| | | |
| | 10,000 | | | Freescale Semiconductor, Ltd.(a) | | | | | 135,500 | |
| | | |
| | 60,000 | | | InvenSense, Inc.(a) | | | | | 922,800 | |
| | | |
| | 20,000 | | | Jive Software, Inc.(a) | | | | | 363,400 | |
| | | |
| | 5,000 | | | Manhattan Associates, Inc.(a) | | | | | 385,800 | |
| | | |
| | 50,000 | | | Millennial Media, Inc.(a) | | | | | 435,500 | |
| | | |
| | 30,000 | | | NeoPhotonics Corp.(a) | | | | | 260,700 | |
| | | |
| | 5,000 | | | OpenTable, Inc.(a) | | | | | 319,750 | |
| | | |
| | 10,000 | | | QLIK Technologies, Inc.(a) | | | | | 282,700 | |
| | | |
| | 50,000 | | | RF Micro Devices, Inc.(a) | | | | | 267,500 | |
| | | |
| | | | | | | | | 4,656,725 | |
| | | | | | | | | | |
| | Materials: 4.74% | |
| | | |
| | 5,000 | | | Axiall Corp. | | | | | 212,900 | |
| | | |
| | 250,000 | | | Hecla Mining Co. | | | | | 745,000 | |
| | | |
| | 30,000 | | | Horsehead Holding Corp.(a) | | | | | 384,300 | |
| | | |
| | 30,000 | | | Stillwater Mining Co.(a) | | | | | 322,200 | |
| | | |
| | | | | | | | | 1,664,400 | |
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | Utilities: 6.15% | |
| | | |
| | 5,000 | | | American States Water Co. | | | | $ | 268,350 | |
| | | |
| | 10,000 | | | California Water Service Group | | | | | 195,100 | |
| | | |
| | 20,201 | | | Connecticut Water Service, Inc. | | | | | 579,769 | |
| | | |
| | 7,500 | | | New Jersey Resources Corp. | | | | | 311,475 | |
| | | |
| | 10,000 | | | Piedmont Natural Gas Co., Inc. | | | | | 337,400 | |
| | | |
| | 10,000 | | | Southwest Gas Corp. | | | | | 467,900 | |
| | | |
| | | | | | | | | 2,159,994 | |
| | | |
| | | | Total Common Stocks
(Cost $27,162,471) | | | | | 31,141,015 | |
| | |
| | Affiliated Investment Companies: 1.00% | | | | | | |
| | | |
| | 350,051 | | | Forward U.S. Government Money Fund Class Z,
0.010% 7-day yield | | | | | 350,051 | |
| | | |
| | | | Total Affiliated Investment Companies
(Cost $350,051) | | | | | 350,051 | |
| | | |
| | | | Total Investments: 89.65%
(Cost $27,512,522) | | | | | 31,491,066 | |
| | | |
| | | | Net Other Assets and Liabilities: 10.35% | | | | | 3,635,493 | (b) |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 35,126,559 | |
Percentages are stated as a percent of net assets.
(a) Non-income producing security.
(b) Includes cash which is being held as collateral for futures contracts.
Futures Contracts
| | | | | | | | | | | | | | | | | | |
| Description | | Position | | Contracts | | | Expiration
Date | | | Value | | | Unrealized
Loss | |
E-mini Russell 2000® Index Future | | Long | | | 25 | | | | 09/23/13 | | | $ | 2,436,750 | | | $ | (53,802) | |
| Total Futures Contracts | | | | | | | | | | $ | 2,436,750 | | | $ | (53,802) | |
| | | | |
| See Notes to Financial Statements | | 63 | | June 30, 2013 |
Portfolio of Investments (Note 10) (Unaudited)
Forward Tactical Enhanced Fund
| | | | | | | | | | |
Principal
Amount | | | | | | | Value
(Note 2) | |
| | |
| | Repurchase Agreements: 62.67% | | | | | | |
| | | |
| | $41,650,000 | | | G.X. Clarke & Co.,
0.120%, dated 06/28/13 and maturing 07/01/13 with a repurchase amount of $41,650,417, collateralized by FHLB and FNMA securities with rates ranging from 0.50% to 1.00% and with maturity dates ranging from 01/29/16 to 02/12/18 with a collateral value of $41,694,909. | | | | $ | 41,650,000 | |
| | | |
| | | | Total Repurchase Agreements
(Cost $41,650,000) | | | | | 41,650,000 | |
| | | |
| | | | Total Investments: 62.67%
(Cost $41,650,000) | | | | | 41,650,000 | |
| | |
| | | | Net Other Assets and Liabilities: 37.33% | | | 24,810,539 | |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 66,460,539 | |
Percentages are stated as a percent of net assets.
Investment Abbreviations:
FHLB — Federal Home Loan Bank
FNMA — Federal National Mortgage Association
| | | | |
| June 30, 2013 | | 64 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward Tactical Growth Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | |
| | Exchange-Traded Funds: 14.93% | | | | | | |
| | | |
| | 826,782 | | | SPDR® S&P 500® ETF Trust | | | | $ | 132,293,388 | |
| | | |
| | | | Total Exchange-Traded Funds
(Cost $133,427,071) | | | | | 132,293,388 | |
| | | |
| Par Value | | | | | | | | |
| | |
| | Short-Term Securities: 77.08% | | | | | | |
| | | |
| | $50,000,000 | | | U.S. Treasury Bills, Discount Notes
0.101%, due 07/25/13(a) | | | | | 49,996,631 | |
| | | |
| | 68,000,000 | | | 0.087%, due 08/29/13(a) | | | | | 67,997,756 | |
| | | |
| | 50,000,000 | | | 0.087%, due 12/19/13(a) | | | | | 49,979,800 | |
| | | |
| | 65,000,000 | | | 0.083%, due 08/01/13(a) | | | | | 64,995,382 | |
| | | |
| | 87,500,000 | | | 0.073%, due 10/10/13(a) | | | | | 87,488,363 | |
| | | |
| | 50,000,000 | | | 0.071%, due 11/07/13(a) | | | | | 49,991,250 | |
| | | |
| | 50,000,000 | | | 0.070%, due 10/24/13(a) | | | | | 49,992,400 | |
| | | | | | | | | | |
| Par Value | | | | | | | Value
(Note 2) | |
| | | |
| | $87,500,000 | | | 0.069%, due 09/26/13(a) | | | | $ | 87,493,087 | |
| | | |
| | 87,500,000 | | | 0.065%, due 11/14/13(a) | | | | | 87,478,913 | |
| | | |
| | 87,500,000 | | | 0.062%, due 12/12/13(a) | | | | | 87,474,625 | |
| | | |
| | | | Total Short-Term Securities
(Cost $682,858,841) | | | | | 682,888,207 | |
| | | |
| | | | Total Investments: 92.01%
(Cost $816,285,912) | | | | | 815,181,595 | |
| | | |
| | | | Net Other Assets and Liabilities: 7.99% | | | | | 70,815,270 | (b) |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 885,996,865 | |
Percentages are stated as a percent of net assets.
(a) Rate shown represents the bond equivalent yield to maturity at date of purchase.
(b) Includes cash which is being held as collateral for futures contracts.
Futures Contracts
| | | | | | | | | | | | | | | | | | |
| Description | | Position | | Contracts | | | Expiration
Date | | | Value | | | Unrealized Loss | |
E-mini S&P 500® Futures | | Long | | | 3,862 | | | | 09/23/13 | | | $ | 308,824,830 | | | $ | (1,094,124) | |
| Total Futures Contracts | | | | | | | | | | | | $ | 308,824,830 | | | $ | (1,094,124) | |
Investment Abbreviations:
ETF — Exchange-Traded Fund
S&P — Standard & Poor’s
SPDR — Standard & Poor’s Depository Receipts
| | | | |
| See Notes to Financial Statements | | 65 | | June 30, 2013 |
Consolidated Portfolio of Investments (Note 10) (Unaudited)
Forward Commodity Long/Short Strategy Fund
| | | | | | | | | | |
Principal Amount | | | | Value (Note 2) | |
| | |
| | Agency Pass-Through Securities: 25.67% | | | | | | |
| | Federal Home Loan Mortgage Corp (FHLMC): 7.19% | | | | | | |
| | | |
| | $2,500,000 | | | FHLMC
0.450%, 11/24/15 | | | | $ | 2,494,304 | |
| | | |
| | 500,000 | | | 0.500%, 02/24/15 | | | | | 500,603 | |
| | | |
| | 212,716 | | | 0.540%, 09/01/37(a) | | | | | 218,771 | |
| | | |
| | 500,000 | | | 0.625%, 03/06/15 | | | | | 501,507 | |
| | | |
| | 194,000 | | | 0.665%, 09/01/37(a) | | | | | 194,439 | |
| | | |
| | 500,000 | | | 0.850%, 02/24/16 | | | | | 501,020 | |
| | | |
| | 1,000,000 | | | 1.200%, 11/19/18 | | | | | 968,054 | |
| | | |
| | 2,060 | | | 1.832%, 08/01/17(a) | | | | | 2,136 | |
| | | |
| | 42,963 | | | 1.875%, 08/01/17(a) | | | | | 45,545 | |
| | | |
| | 17,332 | | | 1.875%, 12/01/16(a) | | | | | 17,608 | |
| | | |
| | 42,365 | | | 1.990%, 04/01/16(a) | | | | | 42,499 | |
| | | |
| | 63,051 | | | 1.993%, 07/01/19(a) | | | | | 63,307 | |
| | | |
| | 8,833 | | | 2.000%, 10/01/16(a) | | | | | 8,979 | |
| | | |
| | 13,572 | | | 2.005%, 10/01/28(a) | | | | | 14,406 | |
| | | |
| | 2,235 | | | 2.012%, 01/01/26(a) | | | | | 2,304 | |
| | | |
| | 12,194 | | | 2.091%, 01/01/23(a) | | | | | 12,607 | |
| | | |
| | 2,005 | | | 2.125%, 08/01/18(a) | | | | | 2,015 | |
| | | |
| | 20,748 | | | 2.125%, 07/01/19(a) | | | | | 21,310 | |
| | | |
| | 25,739 | | | 2.125%, 02/01/16(a) | | | | | 27,258 | |
| | | |
| | 2,849 | | | 2.125%, 05/01/18(a) | | | | | 2,923 | |
| | | |
| | 35,963 | | | 2.128%, 08/01/19(a) | | | | | 36,231 | |
| | | |
| | 4,801 | | | 2.135%, 03/01/20(a) | | | | | 4,826 | |
| | | |
| | 17,384 | | | 2.159%, 05/01/23(a) | | | | | 17,973 | |
| | | |
| | 20,519 | | | 2.163%, 05/01/24(a) | | | | | 20,898 | |
| | | |
| | 25,638 | | | 2.182%, 03/01/25(a) | | | | | 26,443 | |
| | | |
| | 31,222 | | | 2.215%, 02/01/23(a) | | | | | 31,908 | |
| | | |
| | 7,325 | | | 2.220%, 08/01/19(a) | | | | | 7,379 | |
| | | |
| | 13,637 | | | 2.250%, 08/01/18(a) | | | | | 13,726 | |
| | | |
| | 1,907 | | | 2.253%, 10/01/22(a) | | | | | 2,039 | |
| | | |
| | 32,344 | | | 2.256%, 12/01/29(a) | | | | | 34,457 | |
| | | |
| | 29,821 | | | 2.257%, 01/01/29(a) | | | | | 30,024 | |
| | | |
| | 49,591 | | | 2.260%, 09/01/28(a) | | | | | 52,781 | |
| | | |
| | 9,782 | | | 2.262%, 12/01/18(a) | | | | | 10,482 | |
| | | |
| | 1,952 | | | 2.262%, 09/01/30(a) | | | | | 2,089 | |
| | | | | | | | | | |
Principal Amount | | | | Value (Note 2) | |
| | | | | | | |
| | | |
| | $ 2,580 | | | 2.270%, 09/01/18(a) | | | | $ | 2,682 | |
| | | |
| | 25,421 | | | 2.273%, 08/01/26(a) | | | | | 26,768 | |
| | | |
| | 12,248 | | | 2.280%, 12/01/20(a) | | | | | 13,088 | |
| | | |
| | 1,568 | | | 2.290%, 06/01/18(a) | | | | | 1,576 | |
| | | |
| | 3,526 | | | 2.290%, 09/01/27(a) | | | | | 3,781 | |
| | | |
| | 36,271 | | | 2.292%, 11/01/25(a) | | | | | 38,808 | |
| | | |
| | 1,494 | | | 2.310%, 03/01/17(a) | | | | | 1,497 | |
| | | |
| | 3,177 | | | 2.313%, 12/01/27(a) | | | | | 3,384 | |
| | | |
| | 6,629 | | | 2.331%, 11/01/27(a) | | | | | 7,033 | |
| | | |
| | 23,656 | | | 2.332%, 08/01/30(a) | | | | | 25,259 | |
| | | |
| | 32,354 | | | 2.336%, 07/01/31(a) | | | | | 32,515 | |
| | | |
| | 20,611 | | | 2.348%, 02/01/26(a) | | | | | 21,970 | |
| | | |
| | 2,982 | | | 2.350%, 07/01/18(a) | | | | | 3,175 | |
| | | |
| | 3,841 | | | 2.350%, 12/01/27(a) | | | | | 4,088 | |
| | | |
| | 8,527 | | | 2.366%, 03/01/25(a) | | | | | 9,122 | |
| | | |
| | 16,207 | | | 2.370%, 09/01/29(a) | | | | | 17,313 | |
| | | |
| | 15,914 | | | 2.371%, 10/01/27(a) | | | | | 16,961 | |
| | | |
| | 13,456 | | | 2.375%, 07/01/18(a) | | | | | 14,187 | |
| | | |
| | 20,173 | | | 2.375%, 02/01/25(a) | | | | | 20,507 | |
| | | |
| | 18,991 | | | 2.375%, 06/01/32(a) | | | | | 20,022 | |
| | | |
| | 2,891 | | | 2.375%, 03/01/24(a) | | | | | 2,908 | |
| | | |
| | 9,065 | | | 2.376%, 10/01/32(a) | | | | | 9,165 | |
| | | |
| | 11,067 | | | 2.391%, 02/01/32(a) | | | | | 11,795 | |
| | | |
| | 38,256 | | | 2.391%, 04/01/33(a) | | | | | 40,694 | |
| | | |
| | 1,943 | | | 2.400%, 11/01/19(a) | | | | | 1,952 | |
| | | |
| | 61,849 | | | 2.407%, 12/01/29(a) | | | | | 66,157 | |
| | | |
| | 7,802 | | | 2.415%, 11/01/18(a) | | | | | 8,336 | |
| | | |
| | 44,453 | | | 2.425%, 10/01/20(a) | | | | | 44,726 | |
| | | |
| | 34,662 | | | 2.442%, 07/01/32(a) | | | | | 36,873 | |
| | | |
| | 22,079 | | | 2.447%, 12/01/18(a) | | | | | 22,359 | |
| | | |
| | 32,613 | | | 2.449%, 10/01/33(a) | | | | | 34,545 | |
| | | |
| | 7,477 | | | 2.461%, 09/01/25(a) | | | | | 7,998 | |
| | | |
| | 31,608 | | | 2.485%, 05/01/27(a) | | | | | 31,851 | |
| | | |
| | 26,716 | | | 2.487%, 10/01/30(a) | | | | | 28,000 | |
| | | |
| | 46,717 | | | 2.490%, 06/01/21(a) | | | | | 49,339 | |
| | | | |
| June 30, 2013 | | 66 | | See Notes to Financial Statements |
Consolidated Portfolio of Investments (Note 10) (Unaudited)
Forward Commodity Long/Short Strategy Fund
| | | | | | | | | | |
Principal Amount | | | | | | | Value (Note 2) | |
| | Federal Home Loan Mortgage Corp (FHLMC) (continued): 7.19% | |
| | | |
| | $ 34,612 | | | 2.490%, 08/01/26(a) | | | | $ | 34,938 | |
| | | |
| | 1,491 | | | 2.499%, 11/01/36(a) | | | | | 1,593 | |
| | | |
| | 8,613 | | | 2.512%, 02/01/26(a) | | | | | 9,121 | |
| | | |
| | 1,827 | | | 2.520%, 08/01/36(a) | | | | | 1,954 | |
| | | |
| | 63,184 | | | 2.521%, 01/01/28(a) | | | | | 67,836 | |
| | | |
| | 47,379 | | | 2.525%, 07/01/37(a) | | | | | 49,363 | |
| | | |
| | 8,502 | | | 2.526%, 07/01/29(a) | | | | | 9,100 | |
| | | |
| | 41,912 | | | 2.554%, 11/01/31(a) | | | | | 44,865 | |
| | | |
| | 61,328 | | | 2.562%, 06/01/35(a) | | | | | 61,618 | |
| | | |
| | 17,616 | | | 2.564%, 04/01/30(a) | | | | | 18,803 | |
| | | |
| | 55,112 | | | 2.606%, 07/01/24(a) | | | | | 55,864 | |
| | | |
| | 5,394 | | | 2.625%, 08/01/23(a) | | | | | 5,419 | |
| | | |
| | 4,188 | | | 2.648%, 04/01/21(a) | | | | | 4,381 | |
| | | |
| | 5,613 | | | 2.693%, 01/01/29(a) | | | | | 5,778 | |
| | | |
| | 53,710 | | | 2.693%, 12/01/34(a) | | | | | 54,082 | |
| | | |
| | 11,896 | | | 2.740%, 03/01/19(a) | | | | | 12,436 | |
| | | |
| | 60,280 | | | 2.780%, 04/01/24(a) | | | | | 62,519 | |
| | | |
| | 7,655 | | | 2.802%, 11/01/19(a) | | | | | 7,769 | |
| | | |
| | 47,149 | | | 2.862%, 08/01/36(a) | | | | | 50,428 | |
| | | |
| | 13,278 | | | 3.185%, 10/01/35(a) | | | | | 14,245 | |
| | | |
| | 23,704 | | | 3.510%, 12/01/17(a) | | | | | 23,756 | |
| | | |
| | 188,902 | | | 3.566%, 08/01/23(a) | | | | | 191,391 | |
| | | |
| | 33,542 | | | 3.615%, 01/01/22(a) | | | | | 33,862 | |
| | | |
| | 38,088 | | | 3.628%, 05/01/25(a) | | | | | 38,492 | |
| | | |
| | 35,697 | | | 3.679%, 10/01/19(a) | | | | | 36,005 | |
| | | |
| | 54,472 | | | 3.702%, 06/01/24(a) | | | | | 54,970 | |
| | | |
| | 101,266 | | | 3.833%, 08/01/24(a) | | | | | 102,012 | |
| | | |
| | 12,122 | | | 4.221%, 06/01/36(a) | | | | | 12,925 | |
| | | |
| | 3,235 | | | 4.820%, 05/01/20(a) | | | | | 3,440 | |
| | | |
| | 3,256 | | | 5.501%, 08/01/24(a) | | | | | 3,515 | |
| | | |
| | 173,442 | | | 5.820%, 10/01/37(a) | | | | | 187,026 | |
| | | |
| | 116,745 | | | FHLMC, Gold
2.348%, 03/01/27(a) | | | | | 119,472 | |
| | | |
| | 131,791 | | | 2.555%, 02/01/29(a) | | | | | 141,178 | |
| | | |
| | 825,402 | | | 4.000%, 12/01/41 | | | | | 865,975 | |
| | | |
| | | | | | | | | 8,999,416 | |
| | | | | | | | | | |
Principal Amount | | | | | | | Value (Note 2) | |
| | Federal National Mortgage Association (FNMA): 15.79% | | | | | | |
| | | |
| | $3,500,000 | | | FNMA
0.375%, 03/16/15 | | | | $ | 3,501,876 | |
| | | |
| | 700,000 | | | 0.580%, 02/26/16 | | | | | 697,421 | |
| | | |
| | 11,315 | | | 1.025%, 01/01/21(a) | | | | | 11,378 | |
| | | |
| | 2,574 | | | 1.335%, 06/01/21(a) | | | | | 2,594 | |
| | | |
| | 322,519 | | | 1.375%, 01/01/21(a) | | | | | 332,953 | |
| | | |
| | 3,500,000 | | | 1.375%, 11/15/16 | | | | | 3,549,864 | |
| | | |
| | 28,440 | | | 1.578%, 10/01/40(a) | | | | | 29,581 | |
| | | |
| | 65,856 | | | 1.578%, 06/01/40(a) | | | | | 68,481 | |
| | | |
| | 99,511 | | | 1.578%, 06/01/40(a) | | | | | 103,432 | |
| | | |
| | 226,133 | | | 1.675%, 03/01/34(a) | | | | | 228,141 | |
| | | |
| | 5,573 | | | 1.697%, 09/01/33(a) | | | | | 5,814 | |
| | | |
| | 9,836 | | | 1.759%, 03/01/28(a) | | | | | 10,307 | |
| | | |
| | 4,055 | | | 1.786%, 11/01/33(a) | | | | | 4,259 | |
| | | |
| | 5,096 | | | 1.795%, 12/01/24(a) | | | | | 5,209 | |
| | | |
| | 449,019 | | | 1.813%, 07/01/34(a) | | | | | 471,314 | |
| | | |
| | 54,026 | | | 1.822%, 04/01/32(a) | | | | | 56,915 | |
| | | |
| | 8,159 | | | 1.833%, 11/01/33(a) | | | | | 8,585 | |
| | | |
| | 25,697 | | | 1.844%, 12/01/30(a) | | | | | 27,186 | |
| | | |
| | 7,441 | | | 1.864%, 01/01/17(a) | | | | | 7,565 | |
| | | |
| | 51,663 | | | 1.894%, 10/01/32(a) | | | | | 54,091 | |
| | | |
| | 22,018 | | | 1.903%, 01/01/36(a) | | | | | 22,780 | |
| | | |
| | 6,922 | | | 2.013%, 04/01/18(a) | | | | | 7,281 | |
| | | |
| | 140,962 | | | 2.017%, 02/01/33(a) | | | | | 148,237 | |
| | | |
| | 21,029 | | | 2.035%, 06/01/30(a) | | | | | 21,379 | |
| | | |
| | 92,276 | | | 2.040%, 02/01/26(a) | | | | | 97,165 | |
| | | |
| | 14,127 | | | 2.045%, 04/01/33(a) | | | | | 14,834 | |
| | | |
| | 345,533 | | | 2.048%, 07/01/34(a) | | | | | 351,268 | |
| | | |
| | 9,363 | | | 2.064%, 11/01/22(a) | | | | | 9,527 | |
| | | |
| | 5,001 | | | 2.078%, 08/01/29(a) | | | | | 5,287 | |
| | | |
| | 12,685 | | | 2.083%, 03/01/35(a) | | | | | 13,337 | |
| | | |
| | 25,292 | | | 2.097%, 07/01/34(a) | | | | | 27,054 | |
| | | |
| | 56,806 | | | 2.101%, 02/01/25(a) | | | | | 59,960 | |
| | | |
| | 522,715 | | | 2.108%, 01/01/35(a) | | | | | 553,632 | |
| | | |
| | 5,260 | | | 2.125%, 07/01/18(a) | | | | | 5,287 | |
| | | |
| | 26,494 | | | 2.125%, 06/01/19(a) | | | | | 26,758 | |
| | | | |
| See Notes to Financial Statements | | 67 | | June 30, 2013 |
Consolidated Portfolio of Investments (Note 10) (Unaudited)
Forward Commodity Long/Short Strategy Fund
| | | | | | | | | | |
Principal Amount | | | | | | | Value (Note 2) | |
| | Federal National Mortgage Association (FNMA) (continued): 15.79% | |
| | | |
| | $ 259,667 | | | 2.132%, 11/01/35(a) | | | | $ | 273,902 | |
| | | |
| | 8,683 | | | 2.136%, 09/01/24(a) | | | | | 8,867 | |
| | | |
| | 519 | | | 2.150%, 01/01/20(a) | | | | | 522 | |
| | | |
| | 157,742 | | | 2.153%, 05/01/34(a) | | | | | 166,422 | |
| | | |
| | 340,602 | | | 2.153%, 11/01/35(a) | | | | | 358,420 | |
| | | |
| | 263,313 | | | 2.157%, 05/01/33(a) | | | | | 273,543 | |
| | | |
| | 5,711 | | | 2.157%, 12/01/35(a) | | | | | 5,737 | |
| | | |
| | 100,032 | | | 2.171%, 03/01/37(a) | | | | | 105,903 | |
| | | |
| | 31,059 | | | 2.197%, 11/01/35(a) | | | | | 32,269 | |
| | | |
| | 36,830 | | | 2.199%, 01/01/33(a) | | | | | 39,126 | |
| | | |
| | 10,318 | | | 2.205%, 10/01/28(a) | | | | | 10,920 | |
| | | |
| | 106,426 | | | 2.205%, 11/01/17(a) | | | | | 112,985 | |
| | | |
| | 29,405 | | | 2.212%, 05/01/19(a) | | | | | 30,676 | |
| | | |
| | 25,770 | | | 2.212%, 08/01/33(a) | | | | | 27,126 | |
| | | |
| | 20,364 | | | 2.220%, 12/01/37(a) | | | | | 21,474 | |
| | | |
| | 343 | | | 2.240%, 07/01/17(a) | | | | | 344 | |
| | | |
| | 794 | | | 2.240%, 10/01/16(a) | | | | | 802 | |
| | | |
| | 222,504 | | | 2.243%, 06/01/33(a) | | | | | 231,697 | |
| | | |
| | 69,268 | | | 2.249%, 01/01/31(a) | | | | | 69,764 | |
| | | |
| | 83,808 | | | 2.249%, 06/01/32(a) | | | | | 85,766 | |
| | | |
| | 1,000,000 | | | 2.250%, 03/15/16 | | | | | 1,042,199 | |
| | | |
| | 13,994 | | | 2.250%, 11/01/20(a) | | | | | 14,059 | |
| | | |
| | 10,834 | | | 2.252%, 04/01/18(a) | | | | | 11,389 | |
| | | |
| | 202,404 | | | 2.272%, 03/01/34(a) | | | | | 214,359 | |
| | | |
| | 50,562 | | | 2.273%, 11/01/31(a) | | | | | 50,661 | |
| | | |
| | 41,359 | | | 2.280%, 01/01/25(a) | | | | | 41,336 | |
| | | |
| | 48,611 | | | 2.288%, 05/01/33(a) | | | | | 48,855 | |
| | | |
| | 18,020 | | | 2.289%, 08/01/36(a) | | | | | 19,243 | |
| | | |
| | 19,975 | | | 2.296%, 12/01/26(a) | | | | | 21,161 | |
| | | |
| | 18,228 | | | 2.303%, 09/01/23(a) | | | | | 18,374 | |
| | | |
| | 38,472 | | | 2.306%, 10/01/25(a) | | | | | 40,446 | |
| | | |
| | 154,959 | | | 2.311%, 07/01/33(a) | | | | | 165,843 | |
| | | |
| | 831 | | | 2.313%, 03/01/30(a) | | | | | 886 | |
| | | |
| | 30,571 | | | 2.316%, 01/01/21(a) | | | | | 32,651 | |
| | | |
| | 33,873 | | | 2.316%, 07/01/28(a) | | | | | 36,046 | |
| | | | | | | | | | |
Principal Amount | | | | | | | Value (Note 2) | |
| | | |
| | $ 20,090 | | | 2.318%, 06/01/30(a) | | | | $ | 21,472 | |
| | | |
| | 12,875 | | | 2.320%, 06/01/32(a) | | | | | 13,712 | |
| | | |
| | 81,142 | | | 2.322%, 06/01/33(a) | | | | | 82,997 | |
| | | |
| | 16,119 | | | 2.325%, 05/01/24(a) | | | | | 16,199 | |
| | | |
| | 66,742 | | | 2.325%, 07/01/36(a) | | | | | 71,009 | |
| | | |
| | 15,254 | | | 2.330%, 01/01/24(a) | | | | | 16,217 | |
| | | |
| | 42,127 | | | 2.340%, 12/01/30(a) | | | | | 44,560 | |
| | | |
| | 19,892 | | | 2.349%, 12/01/29(a) | | | | | 21,252 | |
| | | |
| | 54,337 | | | 2.350%, 07/01/36(a) | | | | | 57,806 | |
| | | |
| | 1,254 | | | 2.355%, 07/01/25(a) | | | | | 1,327 | |
| | | |
| | 10,078 | | | 2.356%, 08/01/36(a) | | | | | 10,729 | |
| | | |
| | 570,096 | | | 2.356%, 09/01/31(a) | | | | | 608,646 | |
| | | |
| | 34,681 | | | 2.366%, 01/01/33(a) | | | | | 34,991 | |
| | | |
| | 13,236 | | | 2.371%, 01/01/28(a) | | | | | 14,146 | |
| | | |
| | 2,646 | | | 2.371%, 05/01/33(a) | | | | | 2,821 | |
| | | |
| | 43,350 | | | 2.374%, 04/01/37(a) | | | | | 46,407 | |
| | | |
| | 55,010 | | | 2.375%, 08/01/30(a) | | | | | 55,262 | |
| | | |
| | 40,239 | | | 2.376%, 09/01/33(a) | | | | | 42,316 | |
| | | |
| | 24,275 | | | 2.395%, 11/01/30(a) | | | | | 24,359 | |
| | | |
| | 19,612 | | | 2.414%, 11/01/29(a) | | | | | 20,911 | |
| | | |
| | 6,694 | | | 2.420%, 03/01/27(a) | | | | | 6,751 | |
| | | |
| | 22,247 | | | 2.425%, 01/01/23(a) | | | | | 22,442 | |
| | | |
| | 7,594 | | | 2.432%, 07/01/38(a) | | | | | 7,741 | |
| | | |
| | 78,823 | | | 2.435%, 08/01/32(a) | | | | | 83,903 | |
| | | |
| | 1,823 | | | 2.449%, 09/01/37(a) | | | | | 1,909 | |
| | | |
| | 23,333 | | | 2.450%, 04/01/38(a) | | | | | 23,766 | |
| | | |
| | 4,373 | | | 2.450%, 01/01/19(a) | | | | | 4,577 | |
| | | |
| | 33,159 | | | 2.456%, 08/01/25(a) | | | | | 35,547 | |
| | | |
| | 1,048 | | | 2.470%, 10/01/27(a) | | | | | 1,116 | |
| | | |
| | 52,712 | | | 2.477%, 05/01/33(a) | | | | | 55,889 | |
| | | |
| | 56,285 | | | 2.477%, 06/01/36(a) | | | | | 60,126 | |
| | | |
| | 33,921 | | | 2.478%, 02/01/35(a) | | | | | 34,140 | |
| | | |
| | 49,565 | | | 2.480%, 07/01/34(a) | | | | | 51,866 | |
| | | |
| | 62,808 | | | 2.488%, 10/01/31(a) | | | | | 66,912 | |
| | | |
| | 9,351 | | | 2.490%, 09/01/33(a) | | | | | 10,022 | |
| | | |
| | 58,155 | | | 2.495%, 11/01/29(a) | | | | | 62,435 | |
| | | | |
| June 30, 2013 | | 68 | | See Notes to Financial Statements |
Consolidated Portfolio of Investments (Note 10) (Unaudited)
Forward Commodity Long/Short Strategy Fund
| | | | | | | | | | |
Principal Amount | | | | | | | Value (Note 2) | |
| | Federal National Mortgage Association (FNMA) (continued): 15.79% | |
| | | |
| | $ 7,263 | | | 2.504%, 07/01/28(a) | | | | $ | 7,766 | |
| | | |
| | 76,331 | | | 2.520%, 09/01/31(a) | | | | | 77,590 | |
| | | |
| | 21,539 | | | 2.536%, 12/01/35(a) | | | | | 22,157 | |
| | | |
| | 23,696 | | | 2.552%, 08/01/35(a) | | | | | 25,005 | |
| | | |
| | 20,840 | | | 2.568%, 11/01/26(a) | | | | | 22,348 | |
| | | |
| | 2,107 | | | 2.578%, 10/01/19(a) | | | | | 2,192 | |
| | | |
| | 28,575 | | | 2.590%, 02/01/34(a) | | | | | 30,518 | |
| | | |
| | 69,968 | | | 2.635%, 04/01/35(a) | | | | | 70,964 | |
| | | |
| | 42,049 | | | 2.655%, 09/01/30(a) | | | | | 44,905 | |
| | | |
| | 392,243 | | | 2.680%, 11/01/33(a) | | | | | 395,899 | |
| | | |
| | 310,522 | | | 2.685%, 09/01/32(a) | | | | | 331,444 | |
| | | |
| | 6,451 | | | 2.690%, 06/01/19(a) | | | | | 6,721 | |
| | | |
| | 69,128 | | | 2.692%, 08/01/33(a) | | | | | 73,722 | |
| | | |
| | 9,719 | | | 2.723%, 04/01/26(a) | | | | | 9,728 | |
| | | |
| | 93,142 | | | 2.740%, 11/01/33(a) | | | | | 93,208 | |
| | | |
| | 86,659 | | | 2.751%, 05/01/34(a) | | | | | 92,334 | |
| | | |
| | 16,244 | | | 2.755%, 06/01/33(a) | | | | | 16,360 | |
| | | |
| | 25,143 | | | 2.771%, 01/01/18(a) | | | | | 25,909 | |
| | | |
| | 11,569 | | | 2.779%, 03/01/36(a) | | | | | 11,953 | |
| | | |
| | 11,810 | | | 2.811%, 04/01/36(a) | | | | | 12,632 | |
| | | |
| | 14,636 | | | 2.847%, 02/01/26(a) | | | | | 15,708 | |
| | | |
| | 28,509 | | | 2.953%, 11/01/36(a) | | | | | 29,683 | |
| | | |
| | 491,772 | | | 3.000%, 03/01/27 | | | | | 507,103 | |
| | | |
| | 30,348 | | | 3.027%, 08/01/34(a) | | | | | 32,243 | |
| | | |
| | 28,492 | | | 3.301%, 12/01/19(a) | | | | | 29,859 | |
| | | |
| | 1,860 | | | 3.546%, 08/01/26(a) | | | | | 1,982 | |
| | | |
| | 4,535 | | | 3.680%, 03/01/25(a) | | | | | 4,596 | |
| | | |
| | 140,894 | | | 3.949%, 05/01/36(a) | | | | | 145,694 | |
| | | |
| | 16,410 | | | 3.993%, 07/01/17(a) | | | | | 17,532 | |
| | | |
| | 638,787 | | | 4.000%, 12/01/41 | | | | | 667,157 | |
| | | |
| | 110,626 | | | 4.000%, 04/01/41 | | | | | 116,326 | |
| | | |
| | 46,078 | | | 4.090%, 02/01/26(a) | | | | | 49,672 | |
| | | |
| | 565 | | | 4.243%, 05/01/18(a) | | | | | 569 | |
| | | |
| | 758,610 | | | 4.500%, 12/01/40 | | | | | 809,077 | |
| | | |
| | 5,115 | | | 4.606%, 04/01/29(a) | | | | | 5,191 | |
| | | | | | | | | | |
Principal Amount | | | | | | | Value (Note 2) | |
| | | |
| | $ 668 | | | 4.776%, 12/01/26(a) | | | | $ | 721 | |
| | | |
| | 7,227 | | | 4.899%, 03/01/27(a) | | | | | 7,795 | |
| | | |
| | 11,502 | | | 5.000%, 10/01/22(a) | | | | | 11,576 | |
| | | |
| | 33,936 | | | 6.500%, 07/01/17 | | | | | 34,693 | |
| | | |
| | 15,408 | | | 6.750%, 12/01/16(a) | | | | | 16,307 | |
| | | |
| | 1,167 | | | 7.365%, 08/01/20(a) | | | | | 1,177 | |
| | | |
| | | | | | | | | 19,768,822 | |
| | | | | | | | | | |
| | Government National Mortgage Association (GNMA): 2.69% | |
| | | |
| | 59,934 | | | GNMA
1.625%, 01/20/29(a) | | | | | 62,227 | |
| | | |
| | 17,251 | | | 1.625%, 01/20/29(a) | | | | | 18,028 | |
| | | |
| | 37,570 | | | 1.625%, 10/20/29(a) | | | | | 39,214 | |
| | | |
| | 41,544 | | | 1.625%, 03/20/29(a) | | | | | 43,408 | |
| | | |
| | 45,605 | | | 1.625%, 03/20/27(a) | | | | | 47,652 | |
| | | |
| | 40,608 | | | 1.625%, 02/20/27(a) | | | | | 42,429 | |
| | | |
| | 61,507 | | | 1.625%, 10/20/27(a) | | | | | 64,186 | |
| | | |
| | 48,442 | | | 1.625%, 10/20/37(a) | | | | | 50,156 | |
| | | |
| | 41,230 | | | 1.625%, 03/20/32(a) | | | | | 43,088 | |
| | | |
| | 22,978 | | | 1.625%, 02/20/32(a) | | | | | 24,013 | |
| | | |
| | 62,322 | | | 1.625%, 03/20/33(a) | | | | | 65,131 | |
| | | |
| | 59,023 | | | 1.625%, 12/20/32(a) | | | | | 61,606 | |
| | | |
| | 39,156 | | | 1.625%, 12/20/29(a) | | | | | 40,869 | |
| | | |
| | 39,987 | | | 1.625%, 02/20/30(a) | | | | | 41,788 | |
| | | |
| | 141,333 | | | 1.625%, 02/20/32(a) | | | | | 146,786 | |
| | | |
| | 394,934 | | | 1.625%, 01/20/32(a) | | | | | 412,730 | |
| | | |
| | 4,607 | | | 1.625%, 12/20/26(a) | | | | | 4,808 | |
| | | |
| | 36,903 | | | 1.625%, 03/20/24(a) | | | | | 38,560 | |
| | | |
| | 65,417 | | | 1.625%, 10/20/25(a) | | | | | 68,269 | |
| | | |
| | 39,643 | | | 1.625%, 03/20/22(a) | | | | | 41,420 | |
| | | |
| | 11,785 | | | 1.625%, 01/20/24(a) | | | | | 12,314 | |
| | | |
| | 19,112 | | | 1.625%, 03/20/24(a) | | | | | 19,970 | |
| | | |
| | 95,478 | | | 1.625%, 01/20/23(a) | | | | | 99,762 | |
| | | |
| | 4,908 | | | 1.625%, 02/20/24(a) | | | | | 5,129 | |
| | | |
| | 75,180 | | | 1.625%, 03/20/34(a) | | | | | 78,569 | |
| | | |
| | 38,790 | | | 1.625%, 01/20/27(a) | | | | | 40,529 | |
| | | |
| | 5,133 | | | 1.625%, 03/20/22(a) | | | | | 5,363 | |
| | | | |
| See Notes to Financial Statements | | 69 | | June 30, 2013 |
Consolidated Portfolio of Investments (Note 10) (Unaudited)
Forward Commodity Long/Short Strategy Fund
| | | | | | | | | | |
Principal Amount | | | | | | | Value (Note 2) | |
| | Government National Mortgage Association (GNMA)(continued): 2.69% | |
| | | |
| | $ 4,252 | | | 1.750%, 07/20/27(a) | | | | $ | 4,445 | |
| | | |
| | 250,132 | | | 1.750%, 08/20/33(a) | | | | | 260,134 | |
| | | |
| | 388,210 | | | 1.750%, 09/20/32(a) | | | | | 405,866 | |
| | | |
| | 3,424 | | | 1.750%, 04/20/22(a) | | | | | 3,574 | |
| | | |
| | 8,231 | | | 1.750%, 05/20/21(a) | | | | | 8,592 | |
| | | |
| | 1,812 | | | 1.750%, 06/20/27(a) | | | | | 1,891 | |
| | | |
| | 3,360 | | | 1.750%, 07/20/27(a) | | | | | 3,512 | |
| | | |
| | 3,440 | | | 1.750%, 04/20/27(a) | | | | | 3,590 | |
| | | |
| | 47,820 | | | 2.125%, 10/20/35(a) | | | | | 50,012 | |
| | | |
| | 55,415 | | | 2.250%, 05/20/34(a) | | | | | 57,715 | |
| | | |
| | 9,905 | | | 3.000%, 10/20/18(a) | | | | | 10,362 | |
| | | |
| | 10,210 | | | 3.500%, 01/20/19(a) | | | | | 10,667 | |
| | | |
| | 857,113 | | | 4.000%, 09/15/41 | | | | | 905,657 | |
| | | |
| | 28,503 | | | 4.000%, 03/20/16(a) | | | | | 30,072 | |
| | | |
| | | | | | | | | 3,374,093 | |
| | | |
| | | | Total Agency Pass-Through Securities
(Cost $32,051,267) | | | | | 32,142,331 | |
|
| | Asset-Backed Securities: 0.46% | |
| | | |
| | 500,000 | | | BMW Vehicle Lease Trust, Series 2012-1,
Class A3 0.750%, 06/20/14 | | | | | 500,512 | |
| | | |
| | 80,810 | | | Mercedes-Benz Auto Lease Trust, Series 2012-A, Class A2 0.660%, 07/15/13 | | | | | 80,817 | |
| | | |
| | | | Total Asset-Backed Securities
(Cost $580,775) | | | | | 581,329 | |
|
| | Collateralized Mortgage Obligations: 1.16% | |
| | Collateralized Mortgage Obligations-Other: 0.31% | | | | | | |
| | | |
| | 338,106 | | | Deutsche Mortgage Securities, Inc.,
Series 2004-1, Class 1A1
5.500%, 09/25/33 | | | | | 349,341 | |
| | | |
| | 41,564 | | | LB-UBS Commercial Mortgage Trust,
Series 2007-C2, Class A2
5.303%, 02/15/40 | | | | | 41,605 | |
| | | |
| | | | | | | | | 390,946 | |
| | | | | | | | | | |
| | Federal National Mortgage Association (FNMA): 0.85% | |
| | | |
| | 1,092,986 | | | FNMA, REMICS
2.000%, 05/25/43 | | | | | 1,066,397 | |
| | | |
| | | | Total Collateralized Mortgage Obligations
(Cost $1,453,254) | | | | | 1,457,343 | |
| | | | | | | | | | |
Principal Amount | | | | | | | Value (Note 2) | |
|
| | Corporate Bonds: 16.30% | |
| | Basic Materials: 0.27% | | | | | | |
| | | |
| | $ 300,000 | | | BHP Billiton Finance USA, Ltd., Sr. Unsec. Notes
5.400%, 03/29/17 | | | | $ | 338,456 | |
| | | | | | | | | | |
| | Communications: 0.32% | | | | | | |
| | | |
| | 400,000 | | | NBCUniversal Media Llc, Sr. Unsec. Notes
2.100%, 04/01/14 | | | | | 404,892 | |
| | | | | | | | | | |
| | Consumer Cyclical: 0.87% | | | | | | |
| | | |
| | 565,000 | | | Daimler Finance North America Llc, Sr. Unsec. Notes
1.650%, 04/10/15(b) | | | | | 569,997 | |
| | | |
| | 500,000 | | | Staples, Inc., Sr. Unsec. Notes
9.750%, 01/15/14 | | | | | 523,451 | |
| | | |
| | | | | | | | | 1,093,448 | |
| | | | | | | | | | |
| | Consumer Non-Cyclical: 3.44% | | | | | | |
| | | |
| | 500,000 | | | Amgen, Inc., Sr. Unsec. Notes
2.500%, 11/15/16 | | | | | 516,941 | |
| | | |
| | 500,000 | | | Bottling Group Llc, Sr. Unsec. Notes
5.500%, 04/01/16 | | | | | 558,084 | |
| | | |
| | 500,000 | | | Cargill, Inc., Sr. Unsec. Notes
5.000%, 11/15/13(b) | | | | | 507,737 | |
| | | |
| | 1,250,000 | | | Coca-Cola Co., Sr. Unsec. Notes
0.750%, 03/13/15 | | | | | 1,254,772 | |
| | | |
| | 445,000 | | | Colgate-Palmolive Co., Sr. Unsec. Medium-Term Notes
2.625%, 05/01/17 | | | | | 460,589 | |
| | | |
| | 225,000 | | | Cornell University, Sr. Unsec. Notes
4.350%, 02/01/14 | | | | | 230,190 | |
| | | |
| | 500,000 | | | SABMiller Plc, Sr. Unsec. Notes
5.500%, 08/15/13(b) | | | | | 502,878 | |
| | | |
| | 250,000 | | | WellPoint, Inc., Unsec. Notes
5.250%, 01/15/16 | | | | | 273,449 | |
| | | |
| | | | | | | | | 4,304,640 | |
| | | | | | | | | | |
| | Energy: 0.83% | | | | | | |
| | | |
| | 500,000 | | | Noble Holding International, Ltd., Sr. Unsec. Notes 3.450%, 08/01/15 | | | | | 518,583 | |
| | | |
| | 500,000 | | | Total Capital SA, Sr. Unsec. Notes
3.125%, 10/02/15 | | | | | 523,670 | |
| | | |
| | | | | | | | | 1,042,253 | |
| | | | | | | | | | |
| | | | |
| June 30, 2013 | | 70 | | See Notes to Financial Statements |
Consolidated Portfolio of Investments (Note 10) (Unaudited)
Forward Commodity Long/Short Strategy Fund
| | | | | | | | | | |
Principal Amount | | | | | | | Value (Note 2) | |
| | Financials: 6.02% | | | | | | |
| | | |
| | $ 320,000 | | | Berkshire Hathaway Finance Corp., Sr. Unsec. Notes
2.450%, 12/15/15 | | | | $ | 332,916 | |
| | | |
| | 521,000 | | | Branch Banking & Trust Co., Sub. Notes
0.574%, 05/23/17(a) | | | | | 512,650 | |
| | | |
| | 1,250,000 | | | 0.592%, 09/13/16(a) | | | | | 1,237,702 | |
| | | |
| | 400,000 | | | Caterpillar Financial Services Corp., Sr. Unsec. Medium-Term Notes
6.200%, 09/30/13 | | | | | 405,593 | |
| | | |
| | 1,500,000 | | | Caterpillar Financial Services Corp., Sr. Unsec. Notes
1.050%, 03/26/15 | | | | | 1,510,219 | |
| | | |
| | 1,000,000 | | | Danske Bank A/S, Sr. Unsec. Notes
1.327%, 04/14/14(a)(b) | | | | | 1,004,473 | |
| | | |
| | 500,000 | | | John Deere Capital Corp., Sr. Unsec. Medium-Term Notes
1.600%, 03/03/14 | | | | | 504,127 | |
| | | |
| | 300,000 | | | National Australia Bank, Ltd., Sr. Unsec. Notes
0.998%, 04/11/14(a)(b) | | | | | 301,678 | |
| | | |
| | 500,000 | | | National City Bank, Sub. Notes
0.644%, 06/07/17(a) | | | | | 494,917 | |
| | | |
| | 1,250,000 | | | Wachovia Bank NA, Sub. Notes
0.603%, 03/15/16(a) | | | | | 1,235,058 | |
| | | |
| | | | | | | | | 7,539,333 | |
| | | | | | | | | | |
| | Industrials: 1.32% | | | | | | |
| | | |
| | 325,000 | | | Honeywell International, Inc., Sr. Unsec. Notes
5.400%, 03/15/16 | | | | | 361,384 | |
| | | | | | | | | | |
| | | |
| | 1,250,000 | | | Thermo Fisher Scientific, Inc., Sr. Unsec. Notes
3.200%, 03/01/16 | | | | | 1,298,079 | |
| | | |
| | | | | | | | | 1,659,463 | |
| | | | | | | | | | |
| | Information Technology: 1.21% | | | | | | |
| | | |
| | 500,000 | | | Intel Corp., Sr. Unsec. Notes
1.350%, 12/15/17 | | | | | 489,661 | |
| | | |
| | 1,000,000 | | | International Business Machines Corp., Sr. Unsec. Notes
1.950%, 07/22/16 | | | | | 1,025,609 | |
| | | |
| | | | | | | | | 1,515,270 | |
| | | | | | | | | | |
Principal Amount | | | | | | | Value (Note 2) | |
| | Telecommunication Services: 1.29% | | | | | | |
| | | |
| | $ 500,000 | | | AT&T, Inc., Sr. Unsec. Notes
0.660%, 02/12/16(a) | | | | $ | 497,563 | |
| | | |
| | 1,000,000 | | | 5.625%, 06/15/16 | | | | | 1,119,371 | |
| | | |
| | | | | | | | | 1,616,934 | |
| | | | | | | | | | |
| | Utilities: 0.73% | | | | | | |
| | | |
| | 880,000 | | | Niagara Mohawk Power Corp., Sr. Unsec. Notes
3.553%, 10/01/14(b) | | | | | 910,006 | |
| | | |
| | | | Total Corporate Bonds
(Cost $20,351,541) | | | | | 20,424,695 | |
| | | | | | | | | | |
| | Municipal Bonds: 5.10% | | | | | | |
| | | |
| | 500,000 | | | City of Houston, Texas, General Obligation Taxable Refunding Bonds, Public Improvment, Series B
1.140%, 03/01/16 | | | | | 501,175 | |
| | | |
| | 500,000 | | | City of Montgomery, Alabama, General Obligation Taxable Unlimited Warrants,
Series B
1.070%, 04/01/16 | | | | | 499,595 | |
| | | |
| | 155,000 | | | City of Newport News, Virginia, Taxable Refunding General Obligation Unlimited Bonds, Series A
5.020%, 01/15/20 | | | | | 168,387 | |
| | | |
| | 125,000 | | | City of Newport News, Virginia, Taxable Refunding General Obligation Unlimited Bonds, Series B
0.629%, 07/15/14 | | | | | 125,346 | |
| | | |
| | 750,000 | | | County of Loudoun Virginia, General Obligation Taxable Refunding Bonds, Series B
0.895%, 12/01/16 | | | | | 744,862 | |
| | | |
| | 250,000 | | | County of Milwaukee Wisconsin, General Obligation Taxable Unlimited Pension Refunding Bonds, Series B
1.282%, 12/01/16 | | | | | 249,768 | |
| | | |
| | 300,000 | | | Georgia Municipal Gas Authority, Taxable, Revenue Bonds, Gas Portfolio III
1.770%, 10/01/13 | | | | | 300,480 | |
| | | |
| | 60,000 | | | Lexington School District No. 2 Educational Facilities Corp., Installment Revenue Bonds, Series A
5.890%, 12/01/13 | | | | | 60,994 | |
| | | | |
| See Notes to Financial Statements | | 71 | | June 30, 2013 |
Consolidated Portfolio of Investments (Note 10) (Unaudited)
Forward Commodity Long/Short Strategy Fund
| | | | | | | | | | |
Principal Amount | | | | | | | Value (Note 2) | |
| | Municipal Bonds (continued): 5.10% | | | | | | |
| | | |
| | $ 550,000 | | | Maine State Housing Authority, Taxable, Revenue Bonds, Series A 1.
190%, 11/15/16 | | | | $ | 548,372 | |
| | | |
| | 500,000 | | | New York City, New York, General Obligation Unlimited Bonds, Series G, SubSeries G-2
0.550%, 04/01/14 | | | | | 500,670 | |
| | | |
| | 500,000 | | | Ohio State Water Development Authority Water Pollution Control, Taxable Refunding Revenue Bonds, (Water Quality), Series A
0.814%, 06/01/15 | | | | | 501,935 | |
| | | |
| | 50,000 | | | Oklahoma Capital Improvement Authority, State Facilities Revenue Bonds, Higher Education,
Series B 2.
026%, 07/01/14 | | | | | 50,721 | |
| | | |
| | 150,000 | | | Oregon State Local Governments, Taxable, Pension General Obligation, Ltd.
5.571%, 06/01/14 | | | | | 156,539 | |
| | | |
| | 250,000 | | | Pequea Valley School District, Taxable General Obligation Unlimited Bonds, Series B
0.948%, 02/01/16 | | | | | 248,720 | |
| | | |
| | 500,000 | | | Port of Seattle Washington, Taxable Refunding Revenue Bonds, Intermediate Lien, Series C
0.883%, 11/01/13 | | | | | 500,840 | |
| | | |
| | 250,000 | | | Texas State Department of Housing & Community Affairs, Taxable Revenue Bonds, Series A
2.800%, 03/01/36 | | | | | 244,073 | |
| | | |
| | 500,000 | | | University of California, Taxable Revenue Bonds, (National Transmission System), Series AA-2
0.887%, 07/01/13 | | | | | 500,000 | |
| | | | | | | | | | |
Principal Amount | | | | | | | Value (Note 2) | |
| | | |
| | $ 500,000 | | | Wise County, Virginia, Industrial Development Authority Facilities Lease, Taxable Revenue Bonds
1.700%, 02/01/17 | | | | $ | 491,440 | |
| | | |
| | | | Total Municipal Bonds
(Cost $6,415,083) | | | | | 6,393,917 | |
| | | | | | | | | | |
| | |
| | U.S. Treasury Bonds & Notes: 16.68% | | | | | | |
| | | |
| | | | U.S. Treasury Notes | | | | | | |
| | | |
| | 6,750,000 | | | 0.250%, 04/15/16 | | | | | 6,684,343 | |
| | | |
| | 4,000,000 | | | 0.250%, 05/15/15 | | | | | 3,993,124 | |
| | | |
| | 3,500,000 | | | 0.375%, 06/15/15 | | | | | 3,500,819 | |
| | | |
| | 6,750,000 | | | 0.375%, 03/15/16 | | | | | 6,713,084 | |
| | | |
| | | | Total U.S. Treasury Bonds & Notes
(Cost $20,991,461) | | | | | 20,891,370 | |
| | | |
| | | | Total Investments: 65.37%
(Cost $81,843,381) | | | | | 81,890,985 | |
| | | |
| | | | Net Other Assets and Liabilities: 34.63% | | | | | 43,392,069 | (c) |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 125,283,054 | |
Percentages are stated as a percent of net assets.
(a) Interest rate will change at a future date. Interest rate shown reflects the rate in effect at June 30, 2013.
(b) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in the ordinary course of business in transactions exempt from registration, normally to qualified institutional buyers. At period end, the aggregate market value of those securities was $3,796,769, representing 3.03% of net assets.
(c) Includes cash which is being held as collateral for swap contracts.
Total Return Swap Contracts
| | | | | | | | | | | | | | | | | | | | |
| Counter Party | | Reference Entry/Obligation | | Fund
Pays | | Fund
Receives | | | Termination
Date | | | Notional
Amount | | | Net
Unrealized
Gain | |
Credit Suisse | | CS Momentum&Volatility Enhanced
Return Strategy Custom 15-Total Return | | 105 Bps | | | Total Return | | | | 08/02/13 | | | $ | 126,245,575 | | | $ | 754,701 | |
Credit Suisse | | CS Momentum&Volatility Enhanced
Return Strategy Custom 15-Total Return | | 105 Bps | | | Total Return | | | | 08/02/13 | | | | (2,000,000) | | | | 0 | |
| Total of Total Return Swap Contracts | | | | | | | | | | | | $ | 124,245,575 | | | $ | 754,701 | |
| | | | |
| June 30, 2013 | | 72 | | See Notes to Financial Statements |
Consolidated Portfolio of Investments (Note 10) (Unaudited)
Forward Commodity Long/Short Strategy Fund
Investment Abbreviations:
Bps — Basis Points
REMICS — Real Estate Mortgage Investment Conduits
Sr. — Senior
Sub. — Subordinated
Unsec. — Unsecured
| | | | |
| See Notes to Financial Statements | | 73 | | June 30, 2013 |
Consolidated Portfolio of Investments (Note 10) (Unaudited)
Forward Managed Futures Strategy Fund
| | | | | | | | | | |
| Shares | | | | | | | Value (Note 2) | |
|
| | Exchange-Traded Funds: 59.66% | |
| | | |
| | 31,000 | | | Vanguard Mortgage-Backed Securities ETF | | | | $ | 1,582,240 | |
| | | |
| | 20,500 | | | Vanguard Short-Term Corporate Bond ETF | | | | | 1,621,550 | |
| | | |
| | 53,400 | | | Vanguard Short-Term Government Bond ETF | | | | | 3,247,788 | |
| | | |
| | | | Total Exchange-Traded Funds
(Cost $6,483,859) | | | | | 6,451,578 | |
| | | |
| | | | Total Investments: 59.66%
(Cost $6,483,859) | | | | | 6,451,578 | |
| | | |
| | | | Net Other Assets and Liabilities: 40.34% | | | | | 4,361,809 | (a) |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 10,813,387 | |
Percentages are stated as a percent of net assets.
(a) Includes cash which is being held as collateral for swap contracts.
Total Return Swap Contracts
| | | | | | | | | | | | | | | | | | | | |
| Counter Party | | Reference Entry/Obligation | | Fund Pays | | Fund Receives | | | Termination Date | | | Notional Amount | | | Net Unrealized Gain/(Loss) | |
Credit Suisse | | CS Multi Asset Future | | 125 Bps | | | Total Return | | | | 07/02/13 | | | $ | 16,513,869 | | | $ | 358,554 | |
Credit Suisse | | CS Multi Asset Future | | 125 Bps | | | Total Return | | | | 07/02/13 | | | | (500,000) | | | | (5,389) | |
| Total of Total Return Swap Contracts | | | | | | | | | | | | $ | 16,013,869 | | | $ | 353,165 | |
Investment Abbreviations:
Bps — Basis Points
ETF — Exchange-Traded Fund
| | | | |
| June 30, 2013 | | 74 | | See Notes to Financial Statements |
Statement of Assets and Liabilities (Unaudited)
| | | | | | | | | | | | |
| | | Forward Credit Analysis Long/Short Fund | | | Forward EM Corporate Debt Fund | | | Forward Emerging Markets Fund | |
Assets: | | | | | | | | | | | | |
Investments, at value | | $ | 849,228,110 | | | $ | 297,451,820 | | | $ | 12,086,151 | |
Cash | | | 43,914,202 | | | | 9,516,582 | | | | 565,116 | |
Foreign currency, at value (Cost $0, $0 and $7,186, respectively) | | | 0 | | | | 0 | | | | 7,100 | |
Deposit with broker for swap contracts | | | 0 | | | | 640,068 | | | | 0 | |
Deposit with broker for futures contracts | | | 0 | | | | 0 | | | | 1,295 | |
Deposit with broker for securities sold short | | | 86,166,198 | | | | 0 | | | | 0 | |
Unrealized gain on forward contracts | | | 0 | | | | 155,269 | | | | 0 | |
Receivable for swap contract payments | | | 0 | | | | 12,222 | | | | 0 | |
Receivable for investments sold | | | 40,097,045 | | | | 7,323,424 | | | | 15,587 | |
Receivable for shares sold | | | 1,357,445 | | | | 268,847 | | | | 5,482 | |
Interest and dividends receivable | | | 13,262,434 | | | | 5,325,330 | | | | 194,016 | |
Other assets | | | 76,391 | | | | 41,556 | | | | 24,704 | |
| | | | | | | | | | | | |
Total Assets | | | 1,034,101,825 | | | | 320,735,118 | | | | 12,899,451 | |
| | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | |
Securities sold short (Proceeds $250,610,352, $0 and $0, respectively) | | | 246,145,100 | | | | 0 | | | | 0 | |
Payable for interest on short sales | | | 1,076,452 | | | | 0 | | | | 0 | |
Unrealized loss on swap contracts | | | 0 | | | | 111,431 | | | | 0 | |
Swap premiums received | | | 0 | | | | 238,783 | | | | 0 | |
Payable for investments purchased | | | 49,154,717 | | | | 14,379,902 | | | | 0 | |
Payable for shares redeemed | | | 1,426,597 | | | | 405,838 | | | | 0 | |
Payable to advisor | | | 851,287 | | | | 54,939 | | | | 2,146 | |
Payable for distribution and service fees | | | 185,900 | | | | 90,818 | | | | 2,449 | |
Payable to trustees | | | 1,956 | | | | 281 | | | | 1,297 | |
Payable for chief compliance officer fee | | | 2,791 | | | | 789 | | | | 113 | |
Payable to ReFlow (Note 2) | | | 0 | | | | 0 | | | | 347 | |
Payable for legal and audit fees | | | 23,108 | | | | 23,771 | | | | 19,133 | |
Accrued expenses and other liabilities | | | 85,767 | | | | 85,183 | | | | 52,028 | |
| | | | | | | | | | | | |
Total Liabilities | | | 298,953,675 | | | | 15,391,735 | | | | 77,513 | |
| | | | | | | | | | | | |
Net Assets | | $ | 735,148,150 | | | $ | 305,343,383 | | | $ | 12,821,938 | |
| | | | | | | | | | | | |
| | | |
Net Assets Consist of: | | | | | | | | | | | | |
Paid-in capital (Note 7) | | $ | 754,198,296 | | | $ | 319,685,143 | | | $ | 13,580,267 | |
Accumulated net investment income | | | 402,127 | | | | 962,432 | | | | 180,992 | |
Accumulated net realized gain/(loss) on investments, securities sold short, futures contracts, swap contracts and foreign currency transactions | | | 1,612,590 | | | | (1,865,180 | ) | | | (1,194,842 | ) |
Net unrealized appreciation/(depreciation) on investments, securities sold short, swap contracts and translation of assets and liabilities in foreign currencies | | | (21,064,863 | ) | | | (13,439,012 | ) | | | 255,521 | |
| | | | | | | | | | | | |
Total Net Assets | | $ | 735,148,150 | | | $ | 305,343,383 | | | $ | 12,821,938 | |
| | | | | | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 75 | | June 30, 2013 |
Statement of Assets and Liabilities (Unaudited)
| | | | | | | | | | | | |
| | | Forward Credit Analysis Long/Short Fund (continued) | | | Forward EM Corporate Debt Fund (continued) | | | Forward Emerging Markets Fund (continued) | |
Investments, At Cost | | $ | 874,758,225 | | | $ | 310,915,315 | | | $ | 11,830,186 | |
| | | |
Pricing of Shares | | | | | | | | | | | | |
Investor Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $8.45 | | | | $9.42 | | | | $10.59 | |
Net Assets | | $ | 378,750,001 | | | $ | 276,304,568 | | | $ | 6,494,190 | |
Shares of beneficial interest outstanding | | | 44,833,652 | | | | 29,322,965 | | | | 612,949 | |
Institutional Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $8.39 | | | | $9.36 | | | | $10.71 | |
Net Assets | | $ | 200,795,649 | | | $ | 27,122,811 | | | $ | 5,198,718 | |
Shares of beneficial interest outstanding | | | 23,920,687 | | | | 2,897,022 | | | | 485,409 | |
Class A: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $8.41 | | | | — | | | | — | |
Net Assets | | $ | 21,114,564 | | | | — | | | | — | |
Shares of beneficial interest outstanding | | | 2,510,332 | | | | — | | | | — | |
Maximum offering price per share (NAV/0.9425, based on maximum sales charge of 5.75% of the offering price) | | | $8.92 | | | | — | | | | — | |
Class C: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $8.45 | | | | $9.46 | | | | — | |
Net Assets | | $ | 29,097,746 | | | $ | 1,916,004 | | | | — | |
Shares of beneficial interest outstanding | | | 3,444,249 | | | | 202,640 | | | | — | |
Advisor Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $8.40 | | | | — | | | | $11.01 | |
Net Assets | | $ | 105,390,190 | | | | — | | | $ | 1,129,030 | |
Shares of beneficial interest outstanding | | | 12,552,278 | | | | — | | | | 102,511 | |
| | | | |
| June 30, 2013 | | 76 | | See Notes to Financial Statements |
Statement of Assets and Liabilities (Unaudited)
| | | | | | | | |
| | | Forward Endurance Long/Short Fund | | | Forward Global Credit Long/Short Fund | |
Assets: | | | | | | | | |
Investments, at value | | $ | 4,241,275 | | | $ | 5,543,608 | |
Cash | | | 1,288,136 | | | | 650,995 | |
Deposit with broker for swap contracts | | | 0 | | | | 235,407 | |
Deposit with broker for written options | | | 24,589 | | | | 0 | |
Deposit with broker for securities sold short | | | 940,955 | | | | 3,749 | |
Unrealized gain on forward contracts | | | 0 | | | | 6,470 | |
Unrealized gain on swap contracts | | | 0 | | | | 17,315 | |
Receivable for investments sold | | | 103,878 | | | | 0 | |
Swap premiums paid | | | 0 | | | | 100,648 | |
Receivable due from advisor | | | 0 | | | | 1,073 | |
Interest and dividends receivable | | | 1,567 | | | | 144,803 | |
Other assets | | | 3,055 | | | | 23,341 | |
| | | | | | | | |
Total Assets | | | 6,603,455 | | | | 6,727,409 | |
| | | | | | | | |
Liabilities: | | | | | | | | |
Securities sold short (Proceeds $1,401,553 and $0, respectively) | | | 1,381,938 | | | | 0 | |
Options written, at value (Premiums received $11,157 and $0, respectively) | | | 6,400 | | | | 0 | |
Payable for dividend expense on short sales | | | 730 | | | | 3,346 | |
Payable for investments purchased | | | 526,570 | | | | 0 | |
Payable to advisor | | | 3,713 | | | | 0 | |
Payable for distribution and service fees | | | 254 | | | | 1,988 | |
Payable to trustees | | | 32 | | | | 3 | |
Payable for chief compliance officer fee | | | 150 | | | | 37 | |
Interest payable on swap contracts | | | 0 | | | | 458 | |
Payable for legal and audit fees | | | 12,724 | | | | 9,310 | |
Accrued expenses and other liabilities | | | 4,449 | | | | 4,094 | |
| | | | | | | | |
Total Liabilities | | | 1,936,960 | | | | 19,236 | |
| | | | | | | | |
Net Assets | | $ | 4,666,495 | | | $ | 6,708,173 | |
| | | | | | | | |
| | |
Net Assets Consist of: | | | | | | | | |
Paid-in capital (Note 7) | | $ | 4,530,790 | | | $ | 7,543,067 | |
Accumulated net investment income/(loss) | | | (50,356 | ) | | | 523,987 | |
Accumulated net realized loss on investments, securities sold short, written option contracts, swap contracts and foreign currency transactions | | | (140,916 | ) | | | (586,976 | ) |
Net unrealized appreciation/(depreciation) on investments, securities sold short, written option contracts, swap contracts and translation of assets and liabilities in foreign currencies | | | 326,977 | | | | (771,905 | ) |
| | | | | | | | |
Total Net Assets | | $ | 4,666,495 | | | $ | 6,708,173 | |
| | | | | | | | |
| | |
Investments, At Cost | | $ | 3,938,482 | | | $ | 6,338,303 | |
| | |
Pricing of Shares | | | | | | | | |
Investor Class: | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $26.13 | �� | | | $22.63 | |
Net Assets | | $ | 208,850 | | | $ | 1,910,025 | |
Shares of beneficial interest outstanding | | | 7,994 | | | | 84,400 | |
| | | | |
| See Notes to Financial Statements | | 77 | | June 30, 2013 |
Statement of Assets and Liabilities (Unaudited)
| | | | | | | | |
| | | Forward Endurance Long/Short Fund (continued) | | | Forward Global Credit Long/Short Fund (continued) | |
Institutional Class: | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $26.26 | | | | $22.75 | |
Net Assets | | $ | 4,457,645 | | | $ | 2,542,313 | |
Shares of beneficial interest outstanding | | | 169,735 | | | | 111,729 | |
Class C: | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | — | | | | $22.56 | |
Net Assets | | | — | | | $ | 1,128,088 | |
Shares of beneficial interest outstanding | | | — | | | | 50,000 | |
Advisor Class: | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | — | | | | $22.55 | |
Net Assets | | | — | | | $ | 1,127,747 | |
Shares of beneficial interest outstanding | | | — | | | | 50,000 | |
| | | | |
| June 30, 2013 | | 78 | | See Notes to Financial Statements |
Statement of Assets and Liabilities (Unaudited)
| | | | | | | | | | | | |
| | | Forward Global Dividend Fund | | | Forward International Dividend Fund | | | Forward International Small Companies Fund | |
Assets: | | | | | | | | | | | | |
Investments, at value | | $ | 21,613,419 | | | $ | 237,128,844 | | | $ | 167,540,421 | |
Cash | | | 258,000 | | | | 15,455,136 | | | | 3,859,551 | |
Foreign currency, at value (Cost $23,311, $1,421,974 and $58,089, respectively) | | | 23,098 | | | | 1,403,499 | | | | 57,160 | |
Deposit with broker for futures contracts | | | 0 | | | | 1,130,520 | | | | 0 | |
Receivable for investments sold | | | 535,708 | | | | 5,536,395 | | | | 1,815,040 | |
Receivable for shares sold | | | 13,102 | | | | 1,170,465 | | | | 53,682 | |
Interest and dividends receivable | | | 78,315 | | | | 1,234,978 | | | | 713,667 | |
Other assets | | | 18,717 | | | | 44,567 | | | | 34,430 | |
| | | | | | | | | | | | |
Total Assets | | | 22,540,359 | | | | 263,104,404 | | | | 174,073,951 | |
| | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | |
Payable on loan (Note 2) | | | 0 | | | | 25,000,000 | | | | 0 | |
Payable for interest due on loan (Note 2) | | | 0 | | | | 28,374 | | | | 0 | |
Payable for investments purchased | | | 27,401 | | | | 432,114 | | | | 799,802 | |
Payable for shares redeemed | | | 26,893 | | | | 215,227 | | | | 502,935 | |
Payable to advisor | | | 7,415 | | | | 142,006 | | | | 147,617 | |
Payable for distribution and service fees | | | 5,989 | | | | 44,403 | | | | 18,313 | |
Payable to trustees | | | 429 | | | | 1,246 | | | | 591 | |
Payable for chief compliance officer fee | | | 78 | | | | 440 | | | | 750 | |
Payable to ReFlow (Note 2) | | | 0 | | | | 0 | | | | 12,130 | |
Payable for legal and audit fees | | | 5,887 | | | | 12,484 | | | | 24,565 | |
Accrued expenses and other liabilities | | | 4,048 | | | | 65,095 | | | | 79,556 | |
| | | | | | | | | | | | |
Total Liabilities | | | 78,140 | | | | 25,941,389 | | | | 1,586,259 | |
| | | | | | | | | | | | |
Net Assets | | $ | 22,462,219 | | | $ | 237,163,015 | | | $ | 172,487,692 | |
| | | | | | | | | | | | |
| | | |
Net Assets Consist of: | | | | | | | | | | | | |
Paid-in capital (Note 7) | | $ | 21,134,226 | | | $ | 237,771,689 | | | $ | 370,256,589 | |
Accumulated net investment income/(loss) | | | 63,586 | | | | 237,929 | | | | (614,495 | ) |
Accumulated net realized loss on investments, futures contracts, swap contracts and foreign currency transactions | | | (868,313 | ) | | | (6,920,644 | ) | | | (227,661,977 | ) |
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies | | | 2,132,720 | | | | 6,074,041 | | | | 30,507,575 | |
| | | | | | | | | | | | |
Total Net Assets | | $ | 22,462,219 | | | $ | 237,163,015 | | | $ | 172,487,692 | |
| | | | | | | | | | | | |
Investments, At Cost | | $ | 19,480,487 | | | $ | 231,036,443 | | | $ | 137,020,246 | |
| | | |
Pricing of Shares | | | | | | | | | | | | |
Investor Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $11.34 | | | | $9.15 | | | | $14.63 | |
Net Assets | | $ | 779,611 | | | $ | 104,543,775 | | | $ | 35,514,573 | |
Shares of beneficial interest outstanding | | | 68,767 | | | | 11,427,915 | | | | 2,427,847 | |
Institutional Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $11.19 | | | | $7.70 | | | | $14.64 | |
Net Assets | | $ | 10,153,020 | | | $ | 89,344,074 | | | $ | 133,348,272 | |
Shares of beneficial interest outstanding | | | 907,726 | | | | 11,602,293 | | | | 9,106,358 | |
| | | | |
| See Notes to Financial Statements | | 79 | | June 30, 2013 |
Statement of Assets and Liabilities (Unaudited)
| | | | | | | | | | | | |
| | | Forward Global Dividend Fund (continued) | | | Forward International Dividend Fund (continued) | | | Forward International Small Companies Fund (continued) | |
Class A: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $11.34 | | | | $9.15 | | | | — | |
Net Assets | | $ | 11,529,588 | | | $ | 1,654,000 | | | | — | |
Shares of beneficial interest outstanding | | | 1,016,533 | | | | 180,796 | | | | — | |
Maximum offering price per share (NAV/0.9425, based on maximum sales charge of 5.75% of the offering price) | | | $12.03 | | | | $9.71 | | | | — | |
Class C: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | — | | | | $9.13 | | | | — | |
Net Assets | | | — | | | $ | 3,249,846 | | | | — | |
Shares of beneficial interest outstanding | | | — | | | | 355,793 | | | | — | |
Advisor Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | — | | | | $7.70 | | | | $14.64 | |
Net Assets | | | — | | | $ | 38,371,320 | | | $ | 3,624,847 | |
Shares of beneficial interest outstanding | | | — | | | | 4,982,346 | | | | 247,516 | |
| | | | |
| June 30, 2013 | | 80 | | See Notes to Financial Statements |
Statement of Assets and Liabilities (Unaudited)
| | | | | | | | |
| | | Forward
Select EM
Dividend
Fund | | | Forward
Small Cap
Equity Fund | |
Assets: | | | | | | | | |
Investments in affiliates, at value | | $ | 0 | | | $ | 350,051 | |
Investments, at value | | | 34,574,409 | | | | 31,141,015 | |
Cash | | | 8,192,953 | | | | 2,430,819 | |
Foreign currency, at value (Cost $272,628 and $0, respectively) | | | 268,643 | | | | 0 | |
Deposit with broker for futures contracts | | | 241,921 | | | | 711,321 | |
Variation margin receivable | | | 131,279 | | | | 0 | |
Receivable for investments sold | | | 1,012,660 | | | | 761,660 | |
Receivable for shares sold | | | 3,333,049 | | | | 49 | |
Interest and dividends receivable | | | 267,481 | | | | 22,492 | |
Other assets | | | 36,818 | | | | 44,729 | |
| | | | | | | | |
Total Assets | | | 48,059,213 | | | | 35,462,136 | |
| | | | | | | | |
Liabilities: | | | | | | | | |
Payable on loan (Note 2) | | | 5,000,000 | | | | 0 | |
Payable for interest due on loan (Note 2) | | | 4,474 | | | | 0 | |
Variation margin payable | | | 0 | | | | 53,802 | |
Payable for investments purchased | | | 477,050 | | | | 201,758 | |
Payable for shares redeemed | | | 16,040 | | | | 28,738 | |
Payable to advisor | | | 24,691 | | | | 6,226 | |
Payable for distribution and service fees | | | 8,031 | | | | 7,741 | |
Payable to trustees | | | 375 | | | | 489 | |
Payable for chief compliance officer fee | | | 247 | | | | 166 | |
Payable for legal and audit fees | | | 12,978 | | | | 12,658 | |
Accrued expenses and other liabilities | | | 28,820 | | | | 23,999 | |
| | | | | | | | |
Total Liabilities | | | 5,572,706 | | | | 335,577 | |
| | | | | | | | |
Net Assets | | $ | 42,486,507 | | | $ | 35,126,559 | |
| | | | | | | | |
Net Assets Consist of: | | | | | | | | |
Paid-in capital (Note 7) | | $ | 43,705,694 | | | $ | 65,318,396 | |
Accumulated net investment income/(loss) | | | 130,905 | | | | (119,261 | ) |
Accumulated net realized loss on investments, futures contracts and foreign currency transactions | | | (2,009,169 | ) | | | (33,997,318 | ) |
Net unrealized appreciation on investments, futures contracts and translation of assets and liabilities in foreign currencies | | | 659,077 | | | | 3,924,742 | |
| | | | | | | | |
Total Net Assets | | $ | 42,486,507 | | | $ | 35,126,559 | |
| | | | | | | | |
Investments in Affiliates, At Cost | | $ | 0 | | | $ | 350,051 | |
Investments, At Cost | | $ | 34,040,409 | | | $ | 27,162,471 | |
| | |
Pricing of Shares | | | | | | | | |
Investor Class: | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $22.93 | | | | $19.16 | |
Net Assets | | $ | 19,011,927 | | | $ | 24,844,942 | |
Shares of beneficial interest outstanding | | | 829,139 | | | | 1,296,906 | |
Institutional Class: | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $22.93 | | | | $20.13 | |
Net Assets | | $ | 20,927,093 | | | $ | 7,244,121 | |
Shares of beneficial interest outstanding | | | 912,519 | | | | 359,885 | |
| | | | |
| See Notes to Financial Statements | | 81 | | June 30, 2013 |
Statement of Assets and Liabilities (Unaudited)
| | | | | | | | |
| | | Forward
Select EM
Dividend
Fund (continued) | | | Forward
Small Cap
Equity Fund (continued) | |
Class C: | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $22.91 | | | | — | |
Net Assets | | $ | 1,423,248 | | | | — | |
Shares of beneficial interest outstanding | | | 62,134 | | | | — | |
Advisor Class: | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $22.92 | | | | $20.05 | |
Net Assets | | $ | 1,124,239 | | | $ | 3,037,496 | |
Shares of beneficial interest outstanding | | | 49,042 | | | | 151,528 | |
| | | | |
| June 30, 2013 | | 82 | | See Notes to Financial Statements |
Statement of Assets and Liabilities (Unaudited)
| | | | | | | | |
| | | Forward
Tactical
Enhanced
Fund | | | Forward
Tactical
Growth Fund | |
Assets: | | | | | | | | |
Investments, at value | | $ | 0 | | | $ | 815,181,595 | |
Repurchase agreements, at value | | | 41,650,000 | | | | 0 | |
Cash | | | 24,879,408 | | | | 191,182,882 | |
Deposit with broker for futures contracts | | | 0 | | | | 14,553,194 | |
Receivable for shares sold | | | 28,390 | | | | 2,656,868 | |
Interest and dividends receivable | | | 416 | | | | 0 | |
Other assets | | | 25,406 | | | | 91,572 | |
| | | | | | | | |
Total Assets | | | 66,583,620 | | | | 1,023,666,111 | |
| | | | | | | | |
Liabilities: | | | | | | | | |
Variation margin payable | | | 0 | | | | 1,094,124 | |
Payable for investments purchased | | | 0 | | | | 133,427,071 | |
Payable for shares redeemed | | | 39,475 | | | | 1,891,310 | |
Payable to advisor | | | 50,842 | | | | 841,531 | |
Payable for distribution and service fees | | | 12,824 | | | | 220,071 | |
Payable to trustees | | | 127 | | | | 5,024 | |
Payable for chief compliance officer fee | | | 184 | | | | 4,513 | |
Payable for legal and audit fees | | | 11,348 | | | | 14,110 | |
Accrued expenses and other liabilities | | | 8,281 | | | | 171,492 | |
| | | | | | | | |
Total Liabilities | | | 123,081 | | | | 137,669,246 | |
| | | | | | | | |
Net Assets | | $ | 66,460,539 | | | $ | 885,996,865 | |
| | | | | | | | |
Net Assets Consist of: | | | | | | | | |
Paid-in capital (Note 7) | | $ | 65,062,804 | | | $ | 840,495,713 | |
Accumulated net investment loss | | | (475,438 | ) | | | (6,961,179 | ) |
Accumulated net realized gain on investments and futures contracts | | | 1,873,173 | | | | 54,660,772 | |
Net unrealized depreciation on investments and futures contracts | | | 0 | | | | (2,198,441 | ) |
| | | | | | | | |
Total Net Assets | | $ | 66,460,539 | | | $ | 885,996,865 | |
| | | | | | | | |
Investments, At Cost | | $ | 0 | | | $ | 816,285,912 | |
Repurchase Agreements, At Cost | | $ | 41,650,000 | | | $ | 0 | |
| | |
Pricing of Shares | | | | | | | | |
Investor Class: | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $26.06 | | | | $26.40 | |
Net Assets | | $ | 22,707,706 | | | $ | 159,705,957 | |
Shares of beneficial interest outstanding | | | 871,463 | | | | 6,049,815 | |
Institutional Class: | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $26.22 | | | | $26.74 | |
Net Assets | | $ | 33,750,766 | | | $ | 61,988,123 | |
Shares of beneficial interest outstanding | | | 1,287,205 | | | | 2,317,764 | |
| | | | |
| See Notes to Financial Statements | | 83 | | June 30, 2013 |
Statement of Assets and Liabilities (Unaudited)
| | | | | | | | |
| | | Forward
Tactical
Enhanced
Fund (continued) | | | Forward
Tactical
Growth Fund (continued) | |
Class A: | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $25.98 | | | | $26.23 | |
Net Assets | | $ | 3,903,327 | | | $ | 103,322,820 | |
Shares of beneficial interest outstanding | | | 150,262 | | | | 3,939,348 | |
Maximum offering price per share (NAV/0.9425, based on maximum sales charge of 5.75% of the offering price) | | | $27.56 | | | | $27.83 | |
Class C: | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $25.77 | | | | $25.79 | |
Net Assets | | $ | 2,286,496 | | | $ | 94,629,303 | |
Shares of beneficial interest outstanding | | | 88,717 | | | | 3,669,389 | |
Advisor Class: | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $26.19 | | | | $26.75 | |
Net Assets | | $ | 3,812,244 | | | $ | 466,350,662 | |
Shares of beneficial interest outstanding | | | 145,575 | | | | 17,432,053 | |
| | | | |
| June 30, 2013 | | 84 | | See Notes to Financial Statements |
Consolidated Statement of Assets and Liabilities (Unaudited)
| | | | | | | | |
| | | Forward
Commodity
Long/Short
Strategy
Fund | | | Forward
Managed
Futures
Strategy
Fund | |
Assets: | | | | | | | | |
Investments, at value | | $ | 81,890,985 | | | $ | 6,451,578 | |
Cash | | | 28,975,880 | | | | 1,820,897 | |
Deposit with broker for swap contracts | | | 13,484,080 | | | | 2,217,628 | |
Unrealized gain on swap contracts | | | 754,701 | | | | 358,554 | |
Receivable for investments sold | | | 41,348 | | | | 0 | |
Receivable for shares sold | | | 406,933 | | | | 0 | |
Interest and dividends receivable | | | 240,819 | | | | 3,847 | |
Other assets | | | 31,099 | | | | 22,577 | |
| | | | | | | | |
Total Assets | | | 125,825,845 | | | | 10,875,081 | |
| | | | | | | | |
Liabilities: | | | | | | | | |
Unrealized loss on swap contracts | | | 0 | | | | 5,389 | |
Payable for swap contract payments | | | 23,053 | | | | 14,157 | |
Payable for shares redeemed | | | 311,099 | | | | 0 | |
Payable to advisor | | | 99,932 | | | | 5,865 | |
Payable for distribution and service fees | | | 16,503 | | | | 1,210 | |
Payable to trustees | | | 575 | | | | 98 | |
Payable for chief compliance officer fee | | | 609 | | | | 58 | |
Payable for legal and audit fees | | | 52,135 | | | | 29,048 | |
Accrued expenses and other liabilities | | | 38,885 | | | | 5,869 | |
| | | | | | | | |
Total Liabilities | | | 542,791 | | | | 61,694 | |
| | | | | | | | |
Net Assets | | $ | 125,283,054 | | | $ | 10,813,387 | |
| | | | | | | | |
Net Assets Consist of: | | | | | | | | |
Paid-in capital (Note 7) | | $ | 117,948,200 | | | $ | 10,420,545 | |
Accumulated net investment loss | | | (469,256 | ) | | | (93,928 | ) |
Accumulated net realized gain on investments and swap contracts | | | 7,001,805 | | | | 165,886 | |
Net unrealized appreciation on investments and swap contracts | | | 802,305 | | | | 320,884 | |
| | | | | | | | |
Total Net Assets | | $ | 125,283,054 | | | $ | 10,813,387 | |
| | | | | | | | |
Investments, At Cost | | $ | 81,843,381 | | | $ | 6,483,859 | |
| | |
Pricing of Shares | | | | | | | | |
Investor Class: | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $22.20 | | | | $20.91 | |
Net Assets | | $ | 24,124,682 | | | $ | 1,129,623 | |
Shares of beneficial interest outstanding | | | 1,086,601 | | | | 54,025 | |
Institutional Class: | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $22.36 | | | | $21.01 | |
Net Assets | | $ | 52,367,260 | | | $ | 909,312 | |
Shares of beneficial interest outstanding | | | 2,341,857 | | | | 43,274 | |
| | | | |
| See Notes to Financial Statements | | 85 | | June 30, 2013 |
Consolidated Statement of Assets and Liabilities (Unaudited)
| | | | | | | | |
| | | Forward
Commodity
Long/Short
Strategy
Fund (continued) | | | Forward
Managed
Futures
Strategy
Fund (continued) | |
Class C: | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $21.95 | | | | $20.74 | |
Net Assets | | $ | 4,863,851 | | | $ | 992,059 | |
Shares of beneficial interest outstanding | | | 221,635 | | | | 47,843 | |
Advisor Class: | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $22.30 | | | | — | |
Net Assets | | $ | 36,347,847 | | | | — | |
Shares of beneficial interest outstanding | | | 1,630,242 | | | | — | |
Class Z: | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $22.35 | | | | $21.03 | |
Net Assets | | $ | 7,579,414 | | | $ | 7,782,393 | |
Shares of beneficial interest outstanding | | | 339,138 | | | | 370,053 | |
| | | | |
| June 30, 2013 | | 86 | | See Notes to Financial Statements |
Statement of Operations
For the Six Months Ended June 30, 2013 (Unaudited)
| | | | | | | | | | | | |
| | | Forward Credit
Analysis Long/Short Fund | | | Forward EM
Corporate Debt Fund | | | Forward Emerging
Markets Fund | |
Investment Income: | | | | | | | | | | | | |
Interest | | $ | 21,599,648 | | | $ | 8,704,183 | | | $ | 330 | |
Dividends | | | 27,271 | | | | 44,578 | | | | 286,227 | |
Foreign taxes withheld | | | 0 | | | | (18,273 | ) | | | (30,913 | ) |
| | | | | | | | | | | | |
Total Investment Income | | | 21,626,919 | | | | 8,730,488 | | | | 255,644 | |
| | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | |
Investment advisory fee | | | 5,769,653 | | | | 861,906 | | | | 73,305 | |
Interest on short sales | | | 1,634,177 | | | | — | | | | — | |
Administration fee | | | 176,383 | | | | 64,953 | | | | 13,502 | |
Custodian fee | | | 8,224 | | | | 8,959 | | | | 17,434 | |
Legal and audit fees | | | 71,312 | | | | 38,638 | | | | 17,162 | |
Transfer agent fee | | | 185,762 | | | | 157,177 | | | | 19,567 | |
Trustees’ fees and expenses | | | 41,187 | | | | 12,417 | | | | 261 | |
Registration/filing fees | | | 44,526 | | | | 18,977 | | | | 19,330 | |
Reports to shareholder and printing fees | | | 51,378 | | | | 38,229 | | | | 7,139 | |
Recoupment of past waived fees by advisor (Note 3) | | | — | | | | 16,874 | | | | — | |
Distribution and service fees | | | | | | | | | | | | |
Investor Class | | | 774,139 | | | | 426,621 | | | | 13,725 | |
Institutional Class | | | 54,279 | | | | 2,562 | | | | 490 | |
Class A | | | 57,097 | | | | — | | | | — | |
Class C | | | 152,534 | | | | 8,899 | | | | — | |
Advisor Class | | | 38,169 | | | | — | | | | 188 | |
Chief compliance officer fee | | | 20,163 | | | | 6,073 | | | | 338 | |
ReFlow fees (Note 2) | | | 0 | | | | 0 | | | | 347 | |
Other | | | 19,679 | | | | 8,857 | | | | 3,658 | |
| | | | | | | | | | | | |
Total expenses before waiver | | | 9,098,662 | | | | 1,671,142 | | | | 186,446 | |
Less fees waived/reimbursed by investment advisor (Note 3) | | | (272,435 | ) | | | (117,007 | ) | | | (80,567 | ) |
| | | | | | | | | | | | |
Total net expenses | | | 8,826,227 | | | | 1,554,135 | | | | 105,879 | |
| | | | | | | | | | | | |
Net Investment Income: | | | 12,800,692 | | | | 7,176,353 | | | | 149,765 | |
| | | | | | | | | | | | |
Net realized gain/(loss) on investments | | | (1,312,533 | ) | | | 782,421 | | | | 772,463 | |
Net realized loss on securities sold short | | | (964,550 | ) | | | 0 | | | | 0 | |
Net realized loss on futures contracts | | | 0 | | | | 0 | | | | (37,736 | ) |
Net realized loss on swap contracts | | | 0 | | | | (781,160 | ) | | | 0 | |
Net realized loss on foreign currency | | | 0 | | | | (475,078 | ) | | | (37,889 | ) |
Net change in unrealized depreciation on investments | | | (51,320,203 | ) | | | (17,578,641 | ) | | | (900,504 | ) |
Net change in unrealized appreciation on securities sold short | | | 7,236,196 | | | | 0 | | | | 0 | |
Net change in unrealized appreciation on swap contracts | | | 0 | | | | 359,218 | | | | 0 | |
Net change in unrealized appreciation/(depreciation) on translation of assets and liabilities in foreign currency transactions | | | 0 | | | | 141,865 | | | | (257 | ) |
| | | | | | | | | | | | |
Net Realized and Unrealized Loss on Investments, Securities Sold Short, Futures Contracts, Swap Contracts and Foreign Currency Translations | | | (46,361,090 | ) | | | (17,551,375 | ) | | | (203,923 | ) |
| | | | | | | | | | | | |
Net Decrease in Net Assets Resulting from Operations | | $ | (33,560,398 | ) | | $ | (10,375,022 | ) | | $ | (54,158 | ) |
| | | | | | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 87 | | June 30, 2013 |
Statement of Operations
For the Six Months Ended June 30, 2013 (Unaudited)
| | | | | | | | |
| | | Forward
Endurance
Long/Short
Fund | | | Forward
Global Credit
Long/Short
Fund | |
Investment Income: | | | | | | | | |
Interest | | $ | 467 | | | $ | 399,630 | |
Dividends | | | 11,865 | | | | 4,427 | |
Foreign taxes withheld | | | (40 | ) | | | (890 | ) |
| | | | | | | | |
Total Investment Income | | | 12,292 | | | | 403,167 | |
| | | | | | | | |
Expenses: | | | | | | | | |
Dividend expense on short sales | | | 6,836 | | | | 3,346 | |
Investment advisory fee | | | 36,284 | | | | 61,683 | |
Interest on short sales | | | 7,588 | | | | 32,183 | |
Administration fee | | | 4,408 | | | | 9,209 | |
Custodian fee | | | 2,051 | | | | 1,592 | |
Legal and audit fees | | | 11,894 | | | | 9,917 | |
Transfer agent fee | | | 752 | | | | 1,419 | |
Trustees’ fees and expenses | | | 267 | | | | 409 | |
Registration/filing fees | | | 3,742 | | | | 30,157 | |
Reports to shareholder and printing fees | | | 1,031 | | | | 1,123 | |
Distribution and service fees | | | | | | | | |
Investor Class | | | 420 | | | | 4,919 | |
Institutional Class | | | 1,157 | | | | 242 | |
Class C | | | — | | | | 5,998 | |
Advisor Class | | | — | | | | 197 | |
Chief compliance officer fee | | | 0 | | | | 225 | |
Other | | | 643 | | | | 12,199 | |
| | | | | | | | |
Total expenses before waiver | | | 77,073 | | | | 174,818 | |
Less fees waived/reimbursed by investment advisor (Note 3) | | | (14,144 | ) | | | (46,100 | ) |
| | | | | | | | |
Total net expenses | | | 62,929 | | | | 128,718 | |
| | | | | | | | |
Net Investment Income/(Loss): | | | (50,637 | ) | | | 274,449 | |
| | | | | | | | |
Net realized gain on investments | | | 164,285 | | | | 185,134 | |
Net realized gain/(loss) on securities sold short | | | (233,928 | ) | | | 46,169 | |
Net realized gain on written option contracts | | | 74,024 | | | | 3,133 | |
Net realized loss on swap contracts | | | 0 | | | | (413,736 | ) |
Net realized loss on foreign currency | | | (2,294 | ) | | | (153,582 | ) |
Net change in unrealized appreciation/(depreciation) on investments | | | 113,509 | | | | (742,183 | ) |
Net change in unrealized appreciation on securities sold short | | | 15,498 | | | | 15,819 | |
Net change in unrealized depreciation on written option contracts | | | (8,074 | ) | | | 0 | |
Net change in unrealized appreciation on swap contracts | | | 0 | | | | 322,734 | |
Net change in unrealized appreciation/(depreciation) on translation of assets and liabilities in foreign currency transactions | | | (188 | ) | | | 77,147 | |
| | | | | | | | |
Net Realized and Unrealized Gain/(Loss) on Investments, Securities Sold Short, Written Option Contracts, Swap Contracts and Foreign Currency Translations | | | 122,832 | | | | (659,365 | ) |
| | | | | | | | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | $ | 72,195 | | | $ | (384,916 | ) |
| | | | | | | | |
| | | | |
| June 30, 2013 | | 88 | | See Notes to Financial Statements |
Statement of Operations
For the Six Months Ended June 30, 2013 (Unaudited)
| | | | | | | | | | | | |
| | | Forward
Global
Dividend
Fund | | | Forward
International
Dividend
Fund | | | Forward
International
Small
Companies
Fund | |
Investment Income: | | | | | | | | | | | | |
Interest | | $ | 101,425 | | | $ | 605,061 | | | $ | 6,234 | |
Dividends | | | 608,393 | | | | 6,231,542 | | | | 2,665,758 | |
Foreign taxes withheld | | | (21,183 | ) | | | (446,508 | ) | | | (280,464 | ) |
| | | | | | | | | | | | |
Total Investment Income | | | 688,635 | | | | 6,390,095 | | | | 2,391,528 | |
| | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | |
Interest on loan | | | — | | | | 28,374 | | | | — | |
Investment advisory fee | | | 90,953 | | | | 834,514 | | | | 876,228 | |
Administration fee | | | 10,490 | | | | 55,254 | | | | 60,721 | |
Custodian fee | | | 2,706 | | | | 45,785 | | | | 44,090 | |
Legal and audit fees | | | 12,679 | | | | 24,368 | | | | 35,342 | |
Transfer agent fee | | | 4,062 | | | | 23,707 | | | | 67,072 | |
Trustees’ fees and expenses | | | 1,188 | | | | 9,455 | | | | 9,534 | |
Registration/filing fees | | | 20,940 | | | | 25,636 | | | | 24,152 | |
Reports to shareholder and printing fees | | | 2,673 | | | | 5,409 | | | | 18,765 | |
Distribution and service fees | | | | | | | | | | | | |
Investor Class | | | 3,137 | | | | 160,184 | | | | 77,794 | |
Institutional Class | | | 2,430 | | | | 21,743 | | | | 31,701 | |
Class A | | | 31,488 | | | | 1,370 | | | | — | |
Class C | | | — | | | | 9,638 | | | | — | |
Advisor Class | | | — | | | | 9,610 | | | | 3,133 | |
Chief compliance officer fee | | | 589 | | | | 4,698 | | | | 4,632 | |
ReFlow fees (Note 2) | | | 57 | | | | — | | | | 12,130 | |
Other | | | 1,356 | | | | 16,347 | | | | 14,052 | |
| | | | | | | | | | | | |
Total expenses before waiver | | | 184,748 | | | | 1,276,092 | | | | 1,279,346 | |
Less fees waived/reimbursed by investment advisor (Note 3) | | | (48,324 | ) | | | (122,262 | ) | | | 0 | |
| | | | | | | | | | | | |
Total net expenses | | | 136,424 | | | | 1,153,830 | | | | 1,279,346 | |
| | | | | | | | | | | | |
Net Investment Income: | | | 552,211 | | | | 5,236,265 | | | | 1,112,182 | |
| | | | | | | | | | | | |
Net realized gain on investments | | | 1,859,735 | | | | 339,585 | | | | 11,781,599 | |
Net realized loss on futures contracts | | | 0 | | | | (871,955 | ) | | | 0 | |
Net realized gain/(loss) on foreign currency | | | 2,475 | | | | (419,703 | ) | | | (2,479,633 | ) |
Net change in unrealized depreciation on investments | | | (729,498 | ) | | | (4,331,098 | ) | | | (1,200,859 | ) |
Net change in unrealized depreciation on translation of assets and liabilities in foreign currency transactions | | | (212 | ) | | | (18,634 | ) | | | (7,930 | ) |
| | | | | | | | | | | | |
Net Realized and Unrealized Gain/(Loss) on Investments, Futures Contracts and Foreign Currency Translations | | | 1,132,500 | | | | (5,301,805 | ) | | | 8,093,177 | |
| | | | | | | | | | | | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | $ | 1,684,711 | | | $ | (65,540 | ) | | $ | 9,205,359 | |
| | | | | | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 89 | | June 30, 2013 |
Statement of Operations
For the Six Months Ended June 30, 2013 (Unaudited)
| | | | | | | | |
| | | Forward
Select EM
Dividend
Fund | | | Forward
Small Cap
Equity
Fund | |
Investment Income: | | | | | | | | |
Interest | | $ | 166,774 | | | $ | 6,412 | |
Dividends | | | 1,371,599 | | | | 100,542 | |
Dividends from affiliated investment company shares | | | — | | | | 25 | |
Foreign taxes withheld | | | (106,852 | ) | | | — | |
| | | | | | | | |
Total Investment Income | | | 1,431,521 | | | | 106,979 | |
| | | | | | | | |
Expenses: | | | | | | | | |
Interest on loan | | | 18,750 | | | | — | |
Investment advisory fee | | | 232,453 | | | | 145,875 | |
Administration fee | | | 19,924 | | | | 13,200 | |
Custodian fee | | | 33,312 | | | | — | |
Legal and audit fees | | | 14,599 | | | | 12,733 | |
Transfer agent fee | | | 9,340 | | | | 30,190 | |
Trustees’ fees and expenses | | | 2,475 | | | | 1,588 | |
Registration/filing fees | | | 23,608 | | | | 20,475 | |
Reports to shareholder and printing fees | | | 3,508 | | | | 12,126 | |
Distribution and service fees | | | | | | | | |
Investor Class | | | 39,886 | | | | 42,180 | |
Institutional Class | | | 1,464 | | | | 1,845 | |
Class C | | | 5,065 | | | | — | |
Advisor Class | | | 197 | | | | 960 | |
Chief compliance officer fee | | | 1,227 | | | | 920 | |
Other | | | 4,288 | | | | 4,282 | |
| | | | | | | | |
Total expenses before waiver | | | 410,096 | | | | 286,374 | |
Less fees waived/reimbursed by investment advisor (Note 3) | | | (54,265 | ) | | | (59,983 | ) |
Affiliated management fee waiver (Note 2) | | | — | | | | (151 | ) |
| | | | | | | | |
Total net expenses | | | 355,831 | | | | 226,240 | |
| | | | | | | | |
Net Investment Income/(Loss): | | | 1,075,690 | | | | (119,261 | ) |
| | | | | | | | |
Net realized gain on investments | | | 1,519,006 | | | | 3,984,466 | |
Net realized gain/(loss) on futures contracts | | | (671,767 | ) | | | 187,261 | |
Net realized loss on foreign currency | | | (280,697 | ) | | | — | |
Net change in unrealized appreciation/(depreciation) on investments | | | (1,757,713 | ) | | | 2,289,204 | |
Net change in unrealized appreciation/(depreciation) on futures contracts | | | 131,279 | | | | (93,821 | ) |
Net change in unrealized depreciation on translation of assets and liabilities in foreign currency transactions | | | (6,140 | ) | | | — | |
| | | | | | | | |
Net Realized and Unrealized Gain/(Loss) on Investments, Futures Contracts and Foreign Currency Translations | | | (1,066,032 | ) | | | 6,367,110 | |
| | | | | | | | |
Net Increase in Net Assets Resulting from Operations | | $ | 9,658 | | | $ | 6,247,849 | |
| | | | | | | | |
| | | | |
| June 30, 2013 | | 90 | | See Notes to Financial Statements |
Statement of Operations
For the Six Months Ended June 30, 2013 (Unaudited)
| | | | | | | | |
| | | Forward
Tactical
Enhanced
Fund | | | Forward
Tactical
Growth Fund | |
Investment Income: | | | | | | | | |
Interest | | $ | 25,632 | | | $ | 353,817 | |
| | | | | | | | |
Total Investment Income | | | 25,632 | | | | 353,817 | |
| | | | | | | | |
Expenses: | | | | | | | | |
Investment advisory fee | | | 342,549 | | | | 5,149,380 | |
Administration fee | | | 17,570 | | | | 189,592 | |
Custodian fee | | | 667 | | | | 6,634 | |
Legal and audit fees | | | 14,318 | | | | 76,584 | |
Transfer agent fee | | | 19,619 | | | | 316,854 | |
Trustees’ fees and expenses | | | 3,037 | | | | 49,899 | |
Registration/filing fees | | | 24,743 | | | | 59,742 | |
Reports to shareholder and printing fees | | | 5,561 | | | | 89,636 | |
Distribution and service fees | | | | | | | | |
Investor Class | | | 46,686 | | | | 341,851 | |
Institutional Class | | | 6,798 | | | | 15,226 | |
Class A | | | 10,642 | | | | 297,208 | |
Class C | | | 12,900 | | | | 513,033 | |
Advisor Class | | | 800 | | | | 152,233 | |
Chief compliance officer fee | | | 1,496 | | | | 24,308 | |
Other | | | 2,914 | | | | 32,816 | |
| | | | | | | | |
Total expenses before waiver | | | 510,300 | | | | 7,314,996 | |
Less fees waived/reimbursed by investment advisor (Note 3) | | | (9,230 | ) | | | 0 | |
| | | | | | | | |
Total net expenses | | | 501,070 | | | | 7,314,996 | |
| | | | | | | | |
Net Investment Loss: | | | (475,438 | ) | | | (6,961,179 | ) |
| | | | | | | | |
Net realized gain/(loss) on investments | | | 1,562,080 | | | | (2,671,351 | ) |
Net realized gain on futures contracts | | | 0 | | | | 66,189,268 | |
Net change in unrealized depreciation on investments | | | (624,162 | ) | | | (7,559,937 | ) |
Net change in unrealized depreciation on futures contracts | | | 0 | | | | (830,399 | ) |
| | | | | | | | |
Net Realized and Unrealized Gain on Investments and Futures Contracts | | | 937,918 | | | | 55,127,581 | |
| | | | | | | | |
Net Increase in Net Assets Resulting from Operations | | $ | 462,480 | | | $ | 48,166,402 | |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 91 | | June 30, 2013 |
Consolidated Statement of Operations
For the Six Months Ended June 30, 2013 (Unaudited)
| | | | | | | | |
| | | Forward
Commodity
Long/Short
Strategy Fund | | | Forward
Managed
Futures
Strategy
Fund | |
Investment Income: | | | | | | | | |
Interest | | $ | 425,743 | | | $ | 24,907 | |
Dividends | | | — | | | | 125 | |
| | | | | | | | |
Total Investment Income | | | 425,743 | | | | 25,032 | |
| | | | | | | | |
Expenses: | | | | | | | | |
Investment advisory fee | | | 583,459 | | | | 57,695 | |
Administration fee | | | 78,859 | | | | 34,045 | |
Legal and audit fees | | | 49,978 | | | | 27,236 | |
Transfer agent fee | | | 31,795 | | | | 1,464 | |
Trustees’ fees and expenses | | | 6,499 | | | | 640 | |
Registration/filing fees | | | 25,154 | | | | 15,325 | |
Reports to shareholder and printing fees | | | 15,144 | | | | 1,465 | |
Distribution and service fees | | | | | | | | |
Investor Class | | | 44,237 | | | | 2,226 | |
Institutional Class | | | 12,141 | | | | 226 | |
Class C | | | 24,372 | | | | 4,752 | |
Advisor Class | | | 11,097 | | | | — | |
Chief compliance officer fee | | | 3,133 | | | | 316 | |
Other | | | 9,131 | | | | 1,530 | |
| | | | | | | | |
Total expenses before waiver | | | 894,999 | | | | 146,920 | |
Less fees waived/reimbursed by investment advisor (Note 3) | | | 0 | | | | (22,953 | ) |
| | | | | | | | |
Total net expenses | | | 894,999 | | | | 123,967 | |
| | | | | | | | |
Net Investment Loss: | | | (469,256 | ) | | | (98,935 | ) |
| | | | | | | | |
Net realized gain on investments | | | 142,800 | | | | 0 | |
Net realized gain on swap contracts | | | 7,389,907 | | | | 160,423 | |
Net change in unrealized depreciation on investments | | | (675,323 | ) | | | (65,947 | ) |
Net change in unrealized appreciation on swap contracts | | | 5,032,269 | | | | 308,672 | |
| | | | | | | | |
Net Realized and Unrealized Gain on Investments and Swap Contracts | | | 11,889,653 | | | | 403,148 | |
| | | | | | | | |
Net Increase in Net Assets Resulting from Operations | | $ | 11,420,397 | | | $ | 304,213 | |
| | | | | | | | |
| | | | |
| June 30, 2013 | | 92 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Credit Analysis Long/Short Fund | |
| | | Six Months Ended
June 30, 2013
(Unaudited)(a) | | | Year Ended
December 31,
2012 | |
Operations: | | | | | | | | |
Net investment income | | $ | 12,800,692 | | | $ | 12,060,972 | |
Net realized gain/(loss) on investments | | | (1,312,533 | ) | | | 14,994,601 | |
Net realized loss on securities sold short | | | (964,550 | ) | | | (1,104,215 | ) |
Net change in unrealized appreciation/(depreciation) on investments and securities sold short | | | (44,084,007 | ) | | | 17,981,839 | |
| | | | | | | | |
Net increase/(decrease) in net assets resulting from operations | | | (33,560,398 | ) | | | 43,933,197 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (6,139,941 | ) | | | (6,584,580 | ) |
Institutional Class | | | (3,556,756 | ) | | | (3,202,525 | ) |
Class A | | | (310,795 | ) | | | (225,965 | ) |
Class C | | | (391,405 | ) | | | (435,308 | ) |
Advisor Class | | | (2,018,858 | ) | | | (1,608,577 | ) |
From net realized gains on investments | | | | | | | | |
Investor Class | | | — | | | | (2,295,579 | ) |
Institutional Class | | | — | | | | (1,357,148 | ) |
Class A | | | — | | | | (113,987 | ) |
Class C | | | — | | | | (187,395 | ) |
Advisor Class | | | — | | | | (629,953 | ) |
| | | | | | | | |
Total distributions | | | (12,417,755 | ) | | | (16,641,017 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 186,687,216 | | | | 275,705,708 | |
Issued to shareholders in reinvestment of distributions | | | 5,290,058 | | | | 8,313,445 | |
Cost of shares redeemed | | | (128,469,107 | ) | | | (120,965,355 | ) |
| | | | | | | | |
Net increase from share transactions | | | 63,508,167 | | | | 163,053,798 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 92,368,421 | | | | 209,120,442 | |
Issued to shareholders in reinvestment of distributions | | | 3,256,082 | | | | 4,123,452 | |
Cost of shares redeemed | | | (96,453,009 | ) | | | (41,917,938 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (828,506 | ) | | | 171,325,956 | |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | 6,632,671 | | | | 17,069,566 | |
Issued to shareholders in reinvestment of distributions | | | 146,682 | | | | 169,995 | |
Cost of shares redeemed | | | (2,905,772 | ) | | | (683,638 | ) |
| | | | | | | | |
Net increase from share transactions | | | 3,873,581 | | | | 16,555,923 | |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 5,752,166 | | | | 15,740,195 | |
Issued to shareholders in reinvestment of distributions | | | 278,790 | | | | 470,165 | |
Cost of shares redeemed | | | (4,188,706 | ) | | | (4,470,835 | ) |
| | | | | | | | |
Net increase from share transactions | | | 1,842,250 | | | | 11,739,525 | |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 93 | | June 30, 2013 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Credit Analysis Long/Short Fund (continued) | |
| | | Six Months Ended June 30, 2013
(Unaudited)(a) | | | Year Ended
December 31,
2012 | |
Advisor Class | | | | | | | | |
Proceeds from sale of shares | | | 69,669,068 | | | | 107,065,150 | |
Issued to shareholders in reinvestment of distributions | | | 984,260 | | | | 1,567,897 | |
Cost of shares redeemed | | | (59,568,057 | ) | | | (13,273,367 | ) |
| | | | | | | | |
Net increase from share transactions | | | 11,085,271 | | | | 95,359,680 | |
| | | | | | | | |
Net increase in net assets | | $ | 33,502,610 | | | $ | 485,327,062 | |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 701,645,540 | | | | 216,318,478 | |
| | | | | | | | |
End of period (including accumulated net investment income of $402,127 and $19,190, respectively) | | $ | 735,148,150 | | | $ | 701,645,540 | |
| | | | | | | | |
Other Information: | | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 20,748,806 | | | | 31,397,217 | |
Distributions reinvested | | | 618,042 | | | | 937,577 | |
Redeemed | | | (14,439,868 | ) | | | (13,741,589 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 6,926,980 | | | | 18,593,205 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 10,311,842 | | | | 23,649,953 | |
Distributions reinvested | | | 383,593 | | | | 466,005 | |
Redeemed | | | (10,904,899 | ) | | | (4,811,723 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (209,464 | ) | | | 19,304,235 | |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | 740,985 | | | | 1,934,414 | |
Distributions reinvested | | | 17,276 | | | | 19,108 | |
Redeemed | | | (324,791 | ) | | | (77,247 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 433,470 | | | | 1,876,275 | |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 641,558 | | | | 1,780,983 | |
Distributions reinvested | | | 32,602 | | | | 52,992 | |
Redeemed | | | (477,269 | ) | | | (507,832 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 196,891 | | | | 1,326,143 | |
| | | | | | | | |
Advisor Class | | | | | | | | |
Sold | | | 7,801,880 | | | | 12,223,406 | |
Distributions reinvested | | | 114,991 | | | | 177,144 | |
Redeemed | | | (6,768,721 | ) | | | (1,508,967 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 1,148,150 | | | | 10,891,583 | |
| | | | | | | | |
(a) Prior to May 1, 2013, the Forward Credit Analysis Long/Short Fund Advisor Class was known as the Forward Credit Analysis Long/Short Fund Class M.
| | | | |
| June 30, 2013 | | 94 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward EM Corporate Debt Fund | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31, 2012 | |
Operations: | | | | | | | | |
Net investment income | | $ | 7,176,353 | | | $ | 6,445,143 | |
Net realized gain/(loss) on investments | | | 782,421 | | | | (138,594 | ) |
Net realized gain/(loss) on swap contracts | | | (781,160 | ) | | | 126,551 | |
Net realized gain/(loss) on foreign currency transactions | | | (475,078 | ) | | | 385,248 | |
Net change in unrealized appreciation/(depreciation) on investments, swap contracts and translation of assets and liabilities in foreign currencies | | | (17,077,558 | ) | | | 4,851,559 | |
| | | | | | | | |
Net increase/(decrease) in net assets resulting from operations | | | (10,375,022 | ) | | | 11,669,907 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (6,077,055 | ) | | | (5,129,100 | ) |
Institutional Class | | | (786,482 | ) | | | (1,189,641 | ) |
Class C | | | (42,903 | ) | | | (55,354 | ) |
| | | | | | | | |
Total distributions | | | (6,906,440 | ) | | | (6,374,095 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 137,973,404 | | | | 172,230,545 | |
Issued to shareholders in reinvestment of distributions | | | 4,059,507 | | | | 4,982,395 | |
Cost of shares redeemed | | | (18,272,550 | ) | | | (17,799,557 | ) |
| | | | | | | | |
Net increase from share transactions | | | 123,760,361 | | | | 159,413,383 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 17,313,449 | | | | 31,143,675 | |
Issued to shareholders in reinvestment of distributions | | | 251,140 | | | | 95,236 | |
Cost of shares redeemed | | | (22,504,744 | ) | | | (6,374,875 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (4,940,155 | ) | | | 24,864,035 | |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 351,217 | | | | 469,556 | |
Issued to shareholders in reinvestment of distributions | | | 14,264 | | | | 11,093 | |
Cost of shares redeemed | | | (32,562 | ) | | | (39,627 | ) |
| | | | | | | | |
Net increase from share transactions | | | 332,919 | | | | 441,022 | |
| | | | | | | | |
Net increase in net assets | | $ | 101,871,663 | | | $ | 190,014,253 | |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 203,471,720 | | | | 13,457,467 | |
| | | | | | | | |
End of period (including accumulated net investment income of $962,432 and $692,519, respectively) | | $ | 305,343,383 | | | $ | 203,471,720 | |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 95 | | June 30, 2013 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward EM Corporate Debt Fund (continued) | |
| | | Six Months Ended June 30, 2013 (Unaudited) | | | Year Ended
December 31, 2012 | |
Other Information: | | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 13,907,173 | | | | 17,627,942 | |
Distributions reinvested | | | 423,733 | | | | 509,169 | |
Redeemed | | | (1,847,832 | ) | | | (1,814,155 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 12,483,074 | | | | 16,322,956 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 1,746,371 | | | | 3,204,489 | |
Distributions reinvested | | | 26,185 | | | | 9,730 | |
Redeemed | | | (2,283,306 | ) | | | (648,660 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (510,750 | ) | | | 2,565,559 | |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 35,136 | | | | 47,236 | |
Distributions reinvested | | | 1,479 | | | | 1,123 | |
Redeemed | | | (3,309 | ) | | | (4,118 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 33,306 | | | | 44,241 | |
| | | | | | | | |
| | | | |
| June 30, 2013 | | 96 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Emerging Markets Fund | |
| | | Six Months Ended June 30, 2013
(Unaudited)(a) | | | Year Ended
December 31, 2012 | |
Operations: | | | | | | | | |
Net investment income | | $ | 149,765 | | | $ | 312,310 | |
Net realized gain on investments | | | 772,463 | | | | 3,787,633 | |
Net realized gain/(loss) on futures contracts | | | (37,736 | ) | | | 440,920 | |
Net realized loss on foreign currency transactions | | | (37,889 | ) | | | (345,672 | ) |
Net change in unrealized depreciation on investments and translation of assets and liabilities in foreign currencies | | | (900,761 | ) | | | (878,791 | ) |
| | | | | | | | |
Net increase/(decrease) in net assets resulting from operations | | | (54,158 | ) | | | 3,316,400 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | — | | | | (7,168 | ) |
Institutional Class | | | — | | | | (90,699 | ) |
Advisor Class | | | — | | | | (2,133 | ) |
From net realized gains on investments | | | | | | | | |
Investor Class | | | — | | | | (360,404 | ) |
Institutional Class | | | — | | | | (258,796 | ) |
Advisor Class | | | — | | | | (43,459 | ) |
| | | | | | | | |
Total distributions | | | — | | | | (762,659 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 3,907,319 | | | | 21,081,497 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 350,816 | |
Cost of shares redeemed | | | (3,345,137 | ) | | | (41,066,310 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | 562,182 | | | | (19,633,997 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 7,517,155 | | | | 2,007,040 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 298,113 | |
Cost of shares redeemed | | | (6,806,658 | ) | | | (29,769,041 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | 710,497 | | | | (27,463,888 | ) |
| | | | | | | | |
Advisor Class | | | | | | | | |
Proceeds from sale of shares | | | 528,333 | | | | 896,445 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 45,591 | |
Cost of shares redeemed | | | (73,365 | ) | | | (412,107 | ) |
| | | | | | | | |
Net increase from share transactions | | | 454,968 | | | | 529,929 | |
| | | | | | | | |
Net increase/(decrease) in net assets | | $ | 1,673,489 | | | $ | (44,014,215 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 11,148,449 | | | | 55,162,664 | |
| | | | | | | | |
End of period (including accumulated net investment income of $180,992 and $31,227, respectively) | | $ | 12,821,938 | | | $ | 11,148,449 | |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 97 | | June 30, 2013 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Emerging Markets Fund (continued) | |
| | | Six Months Ended June 30, 2013
(Unaudited)(a) | | | Year Ended
December 31, 2012 | |
Other Information: | | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 352,283 | | | | 2,029,310 | |
Distributions reinvested | | | — | | | | 34,183 | |
Redeemed | | | (300,388 | ) | | | (3,963,253 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | 51,895 | | | | (1,899,760 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 655,512 | | | | 192,944 | |
Distributions reinvested | | | — | | | | 28,293 | |
Redeemed | | | (593,432 | ) | | | (3,024,325 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | 62,080 | | | | (2,803,088 | ) |
| | | | | | | | |
Advisor Class | | | | | | | | |
Sold | | | 45,247 | | | | 79,675 | |
Distributions reinvested | | | — | | | | 4,274 | |
Redeemed | | | (6,285 | ) | | | (38,689 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 38,962 | | | | 45,260 | |
| | | | | | | | |
(a) Prior to May 1, 2013, the Forward Emerging Markets Fund Advisor Class was known as the Forward Emerging Markets Fund Class M.
| | | | |
| June 30, 2013 | | 98 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Endurance Long/Short Fund | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012(a) | |
Operations: | | | | | | | | |
Net investment loss | | $ | (50,637 | ) | | $ | (61,559 | ) |
Net realized gain/(loss) on investments | | | 164,285 | | | | (89,323 | ) |
Net realized loss on securities sold short | | | (233,928 | ) | | | (85,967 | ) |
Net realized gain on written option contracts | | | 74,024 | | | | 32,653 | |
Net realized loss on foreign currency transactions | | | (2,294 | ) | | | (2,972 | ) |
Net change in unrealized appreciation on investments, securities sold short, written option contracts and translation of assets and liabilities in foreign currencies | | | 120,745 | | | | 206,232 | |
| | | | | | | | |
Net increase/(decrease) in net assets resulting from operations | | | 72,195 | | | | (936 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | — | | | | 199,964 | |
| | | | | | | | |
Net increase from share transactions | | | — | | | | 199,964 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 13,696 | | | | 4,717,826 | |
Cost of shares redeemed | | | (277,683 | ) | | | (58,567 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (263,987 | ) | | | 4,659,259 | |
| | | | | | | | |
Net increase/(decrease) in net assets | | $ | (191,792 | ) | | $ | 4,858,287 | |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 4,858,287 | | | | 0 | |
| | | | | | | | |
End of period (including accumulated net investment income/(loss) of $(50,356) and $281, respectively) | | $ | 4,666,495 | | | $ | 4,858,287 | |
| | | | | | | | |
Other Information: | | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | — | | | | 7,994 | |
| | | | | | | | |
Net increase in shares outstanding | | | — | | | | 7,994 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 515 | | | | 181,821 | |
Redeemed | | | (10,343 | ) | | | (2,258 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (9,828 | ) | | | 179,563 | |
| | | | | | | | |
(a) The Forward Endurance Long/Short Fund commenced operations on January 3, 2012.
| | | | |
| See Notes to Financial Statements | | 99 | | June 30, 2013 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Global Credit Long/Short Fund | |
| | | Six Months Ended
June 30, 2013 (Unaudited)(a) | | | Year Ended
December 31, 2012 | |
Operations: | | | | | | | | |
Net investment income | | $ | 274,449 | | | $ | 554,590 | |
Net realized gain/(loss) on investments | | | 185,134 | | | | (123,983 | ) |
Net realized gain on securities sold short | | | 46,169 | | | | — | |
Net realized gain on written option contracts | | | 3,133 | | | | — | |
Net realized loss on swap contracts | | | (413,736 | ) | | | (33,547 | ) |
Net realized gain/(loss) on foreign currency transactions | | | (153,582 | ) | | | 68,085 | |
Net change in unrealized depreciation on investments, securities sold short, swap contracts and translation of assets and liabilities in foreign currencies | | | (326,483 | ) | | | (221,880 | ) |
| | | | | | | | |
Net increase/(decrease) in net assets resulting from operations | | | (384,916 | ) | | | 243,265 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (24,943 | ) | | | (62,212 | ) |
Institutional Class | | | (40,151 | ) | | | (130,634 | ) |
Class C | | | (10,468 | ) | | | (36,880 | ) |
Advisor Class | | | (16,000 | ) | | | (48,945 | ) |
From net realized gains on investments | | | | | | | | |
Investor Class | | | — | | | | (33,991 | ) |
Institutional Class | | | — | | | | (77,816 | ) |
Class C | | | — | | | | (22,008 | ) |
Advisor Class | | | — | | | | (21,572 | ) |
| | | | | | | | |
Total distributions | | | (91,562 | ) | | | (434,058 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 1,174,556 | | | | 756,288 | |
Issued to shareholders in reinvestment of distributions | | | 9,999 | | | | 34,157 | |
Cost of shares redeemed | | | (1,043,191 | ) | | | (88,432 | ) |
| | | | | | | | |
Net increase from share transactions | | | 141,364 | | | | 702,013 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 138,974 | | | | 3,500,097 | |
Issued to shareholders in reinvestment of distributions | | | 1,784 | | | | 12,235 | |
Cost of shares redeemed | | | (1,661,314 | ) | | | (352,690 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (1,520,556 | ) | | | 3,159,642 | |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 408 | | | | 25,000 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 1,178 | |
Cost of shares redeemed | | | (23,725 | ) | | | (743 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (23,317 | ) | | | 25,435 | |
| | | | | | | | |
Advisor Class | | | | | | | | |
Proceeds from sale of shares | | | 400 | | | | — | |
| | | | | | | | |
Net increase from share transactions | | | 400 | | | | — | |
| | | | | | | | |
Net increase/(decrease) in net assets | | $ | (1,878,587 | ) | | $ | 3,696,297 | |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 8,586,760 | | | | 4,890,463 | |
| | | | | | | | |
End of period (including accumulated net investment income of $523,987 and $341,100, respectively) | | $ | 6,708,173 | | | $ | 8,586,760 | |
| | | | | | | | |
| | | | |
| June 30, 2013 | | 100 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Global Credit Long/Short Fund (continued) | |
| | | Six Months Ended June 30, 2013 (Unaudited)(a) | | | Year Ended
December 31, 2012 | |
Other Information: | | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 48,939 | | | | 30,689 | |
Distributions reinvested | | | 443 | | | | 1,412 | |
Redeemed | | | (44,521 | ) | | | (3,568 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 4,861 | | | | 28,533 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 5,724 | | | | 137,416 | |
Distributions reinvested | | | 79 | | | | 503 | |
Redeemed | | | (69,277 | ) | | | (14,116 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (63,474 | ) | | | 123,803 | |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | — | | | | 1,009 | |
Distributions reinvested | | | — | | | | 49 | |
Redeemed | | | (1,027 | ) | | | (31 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (1,027 | ) | | | 1,027 | |
| | | | | | | | |
Advisor Class | | | | | | | | |
| | | | | | | | |
Net increase in shares outstanding | | | — | | | | — | |
| | | | | | | | |
(a) Prior to May 1, 2013, the Forward Global Credit Long/Short Fund Advisor Class was known as the Forward Global Credit Long/Short Fund Class M.
| | | | |
| See Notes to Financial Statements | | 101 | | June 30, 2013 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Global Dividend Fund | |
| | | Six Months Ended
June 30, 2013
(unaudited)(a) | | | Year Ended
December 31, 2012 | |
Operations: | | | | | | | | |
Net investment income | | $ | 552,211 | | | $ | 826,536 | |
Net realized gain/(loss) on investments | | | 1,859,735 | | | | (512,749 | ) |
Net realized loss on futures contracts | | | — | | | | (30,393 | ) |
Net realized gain on foreign currency transactions | | | 2,475 | | | | — | |
Net change in unrealized appreciation/(depreciation) on investments and translation of assets and liabilities in foreign currencies | | | (729,710 | ) | | | 1,046,611 | |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 1,684,711 | | | | 1,330,005 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (22,284 | ) | | | (15,012 | ) |
Institutional Class | | | (227,320 | ) | | | (366,605 | ) |
Class A | | | (239,021 | ) | | | (445,151 | ) |
From return of capital | | | | | | | | |
Investor Class | | | — | | | | (1,090 | ) |
Institutional Class | | | — | | | | (26,608 | ) |
Class A | | | — | | | | (32,309 | ) |
| | | | | | | | |
Total distributions | | | (488,625 | ) | | | (886,775 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 115,583 | | | | 3,207,501 | |
Issued to shareholders in reinvestment of distributions | | | 22,110 | | | | 15,343 | |
Cost of shares redeemed | | | (2,837,357 | ) | | | (11,671 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (2,699,664 | ) | | | 3,211,173 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 2,881,654 | | | | 7,824,585 | |
Issued to shareholders in reinvestment of distributions | | | 118,234 | | | | 158,948 | |
Cost of shares redeemed | | | (3,046,289 | ) | | | (3,222,439 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (46,401 | ) | | | 4,761,094 | |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | 778,575 | | | | 1,072,857 | |
Issued to shareholders in reinvestment of distributions | | | 115,041 | | | | 51,477 | |
Cost of shares redeemed | | | (354,165 | ) | | | (393,453 | ) |
| | | | | | | | |
Net increase from share transactions | | | 539,451 | | | | 730,881 | |
| | | | | | | | |
Net increase/(decrease) in net assets | | $ | (1,010,528 | ) | | $ | 9,146,378 | |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 23,472,747 | | | | 14,326,369 | |
| | | | | | | | |
End of period (including accumulated net investment income of $63,586 and $0, respectively) | | $ | 22,462,219 | | | $ | 23,472,747 | |
| | | | | | | | |
| | | | |
| June 30, 2013 | | 102 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Global Dividend Fund (continued) | |
| | | Six Months Ended June 30, 2013
(unaudited)(a) | | | Year Ended
December 31, 2012 | |
Other Information: | | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 9,869 | | | | 296,938 | |
Distributions reinvested | | | 1,924 | | | | 1,430 | |
Redeemed | | | (246,335 | ) | | | (1,090 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (234,542 | ) | | | 297,278 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 251,844 | | | | 727,966 | |
Distributions reinvested | | | 10,361 | | | | 15,030 | |
Redeemed | | | (272,860 | ) | | | (302,613 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (10,655 | ) | | | 440,383 | |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | 66,824 | | | | 98,881 | |
Distributions reinvested | | | 9,946 | | | | 4,806 | |
Redeemed | | | (30,523 | ) | | | (36,052 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 46,247 | | | | 67,635 | |
| | | | | | | | |
(a) Prior to February 20, 2013, the Forward Global Dividend Fund was known as the Forward Large Cap Dividend Fund.
| | | | |
| See Notes to Financial Statements | | 103 | | June 30, 2013 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward International Dividend Fund | |
| | | Six Months Ended June 30, 2013
(Unaudited)(a)(b) | | | Year Ended
December 31, 2012(c) | |
Operations: | | | | | | | | |
Net investment income | | $ | 5,236,265 | | | $ | 4,790,424 | |
Net realized gain/(loss) on investments | | | 339,585 | | | | (3,094,586 | ) |
Net realized loss on futures contracts | | | (871,955 | ) | | | (442,284 | ) |
Net realized loss on foreign currency transactions | | | (419,703 | ) | | | (174,120 | ) |
Net change in unrealized appreciation/(depreciation) on investments and translation of assets and liabilities in foreign currencies | | | (4,349,732 | ) | | | 10,541,722 | |
| | | | | | | | |
Net increase/(decrease) in net assets resulting from operations | | | (65,540 | ) | | | 11,621,156 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (1,753,510 | ) | | | (955,099 | ) |
Institutional Class | | | (2,202,853 | ) | | | (3,576,735 | ) |
Class A | | | (12,757 | ) | | | — | |
Class C | | | (40,576 | ) | | | (11,838 | ) |
Advisor Class | | | (760,337 | ) | | | (443,198 | ) |
| | | | | | | | |
Total distributions | | | (4,770,033 | ) | | | (4,986,869 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 88,994,170 | | | | 47,344,227 | |
Issued to shareholders in reinvestment of distributions | | | 602,935 | | | | 945,142 | |
Cost of shares redeemed | | | (31,080,437 | ) | | | (4,713,368 | ) |
| | | | | | | | |
Net increase from share transactions | | | 58,516,668 | | | | 43,576,001 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 41,586,222 | | | | 92,378,527 | |
Issued to shareholders in reinvestment of distributions | | | 499,862 | | | | 463,932 | |
Cost of shares redeemed | | | (35,009,269 | ) | | | (19,514,495 | ) |
| | | | | | | | |
Net increase from share transactions | | | 7,076,815 | | | | 73,327,964 | |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | 1,781,228 | | | | — | |
Issued to shareholders in reinvestment of distributions | | | 2,127 | | | | — | |
Cost of shares redeemed | | | (100 | ) | | | — | |
| | | | | | | | |
Net increase from share transactions | | | 1,783,255 | | | | — | |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 2,592,804 | | | | 985,988 | |
Issued to shareholders in reinvestment of distributions | | | 39,937 | | | | 11,838 | |
Cost of shares redeemed | | | (125,179 | ) | | | (141,683 | ) |
| | | | | | | | |
Net increase from share transactions | | | 2,507,562 | | | | 856,143 | |
| | | | | | | | |
Advisor Class | | | | | | | | |
Proceeds from sale of shares | | | 20,672,387 | | | | 18,408,577 | |
Issued to shareholders in reinvestment of distributions | | | 753,699 | | | | 440,650 | |
Cost of shares redeemed | | | (1,053,712 | ) | | | (398,673 | ) |
| | | | | | | | |
Net increase from share transactions | | | 20,372,374 | | | | 18,450,554 | |
| | | | | | | | |
Net increase in net assets | | $ | 85,421,101 | | | $ | 142,844,948 | |
| | | | | | | | |
| | | | |
| June 30, 2013 | | 104 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward International Dividend Fund (continued) | |
| | | Six Months Ended June 30, 2013 (Unaudited)(a)(b) | | | Year Ended
December 31, 2012(c) | |
Net Assets: | | | | | | | | |
Beginning of period | | | 151,741,914 | | | | 8,896,966 | |
| | | | | | | | |
End of period (including accumulated net investment income/(loss) of $237,929 and $(228,303), respectively) | | $ | 237,163,015 | | | $ | 151,741,914 | |
| | | | | | | | |
Other Information: | | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 9,260,107 | | | | 5,390,850 | |
Distributions reinvested | | | 63,079 | | | | 107,895 | |
Redeemed | | | (3,255,696 | ) | | | (541,465 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 6,067,490 | | | | 4,957,281 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 5,110,412 | | | | 12,470,117 | |
Distributions reinvested | | | 62,280 | | | | 63,518 | |
Redeemed | | | (4,307,279 | ) | | | (2,648,432 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 865,413 | | | | 9,885,203 | |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | 180,577 | | | | — | |
Distributions reinvested | | | 230 | | | | — | |
Redeemed | | | (11 | ) | | | — | |
| | | | | | | | |
Net increase in shares outstanding | | | 180,796 | | | | — | |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 267,772 | | | | 111,059 | |
Distributions reinvested | | | 4,197 | | | | 1,336 | |
Redeemed | | | (12,682 | ) | | | (15,889 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 259,287 | | | | 96,506 | |
| | | | | | | | |
Advisor Class | | | | | | | | |
Sold | | | 2,517,400 | | | | 2,492,600 | |
Distributions reinvested | | | 93,825 | | | | 58,767 | |
Redeemed | | | (130,038 | ) | | | (53,499 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 2,481,187 | | | | 2,497,868 | |
| | | | | | | | |
(a) The Forward International Dividend Fund began offering Class A shares on May 1, 2013.
(b) Prior to May 1, 2013, the Forward International Dividend Fund Advisor Class was known as the Forward International Dividend Fund Class M.
(c) The Forward International Dividend Fund began offering Class C shares on July 31, 2012.
| | | | |
| See Notes to Financial Statements | | 105 | | June 30, 2013 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward International Small Companies Fund | |
| | | Six Months Ended
June 30, 2013
(Unaudited)(a) | | | Year Ended
December 31, 2012(b) | |
Operations: | | | | | | | | |
Net investment income | | $ | 1,112,182 | | | $ | 2,545,711 | |
Net realized gain on investments | | | 11,781,599 | | | | 18,153,531 | |
Net realized gain on swap contracts | | | — | | | | 495,837 | |
Net realized loss on foreign currency transactions | | | (2,479,633 | ) | | | (2,781,348 | ) |
Net change in unrealized appreciation/(depreciation) on investments and translation of assets and liabilities in foreign currencies | | | (1,208,789 | ) | | | 23,249,632 | |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 9,205,359 | | | | 41,663,363 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | — | | | | (619,515 | ) |
Institutional Class | | | — | | | | (2,137,095 | ) |
Advisor Class | | | — | | | | (193,388 | ) |
| | | | | | | | |
Total distributions | | | — | | | | (2,949,997 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 10,514,406 | | | | 26,070,217 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 600,631 | |
Cost of shares redeemed | | | (14,877,105 | ) | | | (48,340,065 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (4,362,699 | ) | | | (21,669,218 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 39,793,922 | | | | 44,138,374 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 1,963,729 | |
Cost of shares redeemed | | | (20,426,078 | ) | | | (249,683,236 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | 19,367,844 | | | | (203,581,134 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | — | | | | 121,829 | |
Cost of shares redeemed | | | — | | | | (1,278,361 | ) |
| | | | | | | | |
Net decrease from share transactions | | | — | | | | (1,156,532 | ) |
| | | | | | | | |
Advisor Class | | | | | | | | |
Proceeds from sale of shares | | | 612,570 | | | | 11,726,910 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 193,388 | |
Cost of shares redeemed | | | (7,454,756 | ) | | | (2,875,330 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (6,842,186 | ) | | | 9,044,968 | |
| | | | | | | | |
Net increase/(decrease) in net assets | | $ | 17,368,318 | | | $ | (178,648,549 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 155,119,374 | | | | 333,767,923 | |
| | | | | | | | |
End of period (including accumulated net investment loss of $(614,495) and $(1,726,677), respectively) | | $ | 172,487,692 | | | $ | 155,119,374 | |
| | | | | | | | |
| | | | |
| June 30, 2013 | | 106 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward International Small Companies Fund (continued) | |
| | | Six Months Ended June 30, 2013 (Unaudited)(a) | | | Year Ended December 31, 2012(b) | |
Other Information: | | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 714,704 | | | | 2,023,019 | |
Distributions reinvested | | | — | | | | 43,714 | |
Redeemed | | | (1,019,425 | ) | | | (3,812,426 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (304,721 | ) | | | (1,745,693 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 2,734,497 | | | | 3,421,630 | |
Distributions reinvested | | | — | | | | 143,025 | |
Redeemed | | | (1,401,225 | ) | | | (20,077,089 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | 1,333,272 | | | | (16,512,434 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | — | | | | 9,964 | |
Redeemed | | | — | | | | (96,915 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | — | | | | (86,951 | ) |
| | | | | | | | |
Advisor Class | | | | | | | | |
Sold | | | 42,066 | | | | 905,414 | |
Distributions reinvested | | | — | | | | 14,085 | |
Redeemed | | | (495,184 | ) | | | (223,959 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (453,118 | ) | | | 695,540 | |
| | | | | | | | |
(a) Prior to May 1, 2013, the Forward International Small Companies Fund Advisor Class was known as the Forward International Small Companies Fund Class M.
(b) Effective November 30, 2012, Class A shares of the Forward International Small Companies Fund were terminated and converted to Investor Class shares.
| | | | |
| See Notes to Financial Statements | | 107 | | June 30, 2013 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Select EM Dividend Fund | |
| | | Six Months Ended June 30, 2013
(Unaudited)(a) | | | Year Ended
December 31, 2012 | |
Operations: | | | | | | | | |
Net investment income | | $ | 1,075,690 | | | $ | 920,521 | |
Net realized gain/(loss) on investments | | | 1,519,006 | | | | (559,663 | ) |
Net realized gain/(loss) on futures contracts | | | (671,767 | ) | | | 127,814 | |
Net realized loss on foreign currency transactions | | | (280,697 | ) | | | (148,916 | ) |
Net change in unrealized appreciation/(depreciation) on investments, futures contracts and translation of assets and liabilities in foreign currencies | | | (1,632,574 | ) | | | 3,283,823 | |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 9,658 | | | | 3,623,579 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (465,038 | ) | | | (215,366 | ) |
Institutional Class | | | (404,752 | ) | | | (630,694 | ) |
Class C | | | (24,059 | ) | | | (27,151 | ) |
Advisor Class | | | (28,614 | ) | | | (49,395 | ) |
From return of capital | | | | | | | | |
Investor Class | | | — | | | | (2,003 | ) |
Institutional Class | | | — | | | | (5,865 | ) |
Class C | | | — | | | | (253 | ) |
Advisor Class | | | — | | | | (459 | ) |
| | | | | | | | |
Total distributions | | | (922,463 | ) | | | (931,186 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 28,106,212 | | | | 13,292,474 | |
Issued to shareholders in reinvestment of distributions | | | 265,247 | | | | 183,725 | |
Cost of shares redeemed | | | (22,056,201 | ) | | | (1,636,471 | ) |
| | | | | | | | |
Net increase from share transactions | | | 6,315,258 | | | | 11,839,728 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 11,640,355 | | | | 31,009,780 | |
Issued to shareholders in reinvestment of distributions | | | 18,805 | | | | 5,489 | |
Cost of shares redeemed | | | (22,879,177 | ) | | | (4,880,884 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (11,220,017 | ) | | | 26,134,385 | |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 818,660 | | | | 64,140 | |
Issued to shareholders in reinvestment of distributions | | | 9,962 | | | | 933 | |
Cost of shares redeemed | | | (53,180 | ) | | | – | |
| | | | | | | | |
Net increase from share transactions | | | 775,442 | | | | 65,073 | |
| | | | | | | | |
Advisor Class | | | | | | | | |
Proceeds from sale of shares | | | 264,752 | | | | 494,595 | |
Issued to shareholders in reinvestment of distributions | | | 11,478 | | | | 16,532 | |
Cost of shares redeemed | | | (330,907 | ) | | | (65,784 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (54,677 | ) | | | 445,343 | |
| | | | | | | | |
Net increase/(decrease) in net assets | | $ | (5,096,799 | ) | | $ | 41,176,922 | |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 47,583,306 | | | | 6,406,384 | |
| | | | | | | | |
End of period (including accumulated net investment income/(loss) of $130,905 and $(22,322), respectively) | | $ | 42,486,507 | | | $ | 47,583,306 | |
| | | | | | | | |
| | | | |
| June 30, 2013 | | 108 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Select EM Dividend Fund (continued) | |
| | | Six Months Ended
June 30, 2013 (Unaudited)(a) | | | Year Ended
December 31, 2012 | |
Other Information: | | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 1,129,772 | | | | 584,701 | |
Distributions reinvested | | | 10,876 | | | | 8,099 | |
Redeemed | | | (884,968 | ) | | | (71,992 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 255,680 | | | | 520,808 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 477,578 | | | | 1,350,764 | |
Distributions reinvested | | | 774 | | | | 241 | |
Redeemed | | | (920,075 | ) | | | (214,580 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (441,723 | ) | | | 1,136,425 | |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 34,073 | | | | 2,880 | |
Distributions reinvested | | | 416 | | | | 42 | |
Redeemed | | | (2,277 | ) | | | — | |
| | | | | | | | |
Net increase in shares outstanding | | | 32,212 | | | | 2,922 | |
| | | | | | | | |
Advisor Class | | | | | | | | |
Sold | | | 10,778 | | | | 22,132 | |
Distributions reinvested | | | 470 | | | | 753 | |
Redeemed | | | (13,440 | ) | | | (2,958 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (2,192 | ) | | | 19,927 | |
| | | | | | | | |
(a) Prior to May 1, 2013, the Forward Select EM Dividend Fund Advisor Class was known as the Forward Select EM Dividend Fund Class M.
| | | | |
| See Notes to Financial Statements | | 109 | | June 30, 2013 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Small Cap Equity Fund | |
| | | Six Months Ended
June 30, 2013
(Unaudited)(a) | | | Year Ended
December 31,
2012(b) | |
Operations: | | | | | | | | |
Net investment loss | | $ | (119,261 | ) | | $ | (84,112 | ) |
Net realized gain on investments | | | 3,984,466 | | | | 2,485,281 | |
Net realized gain on futures contracts | | | 187,261 | | | | 575,323 | |
Net change in unrealized appreciation on investments and futures contracts | | | 2,195,383 | | | | 1,950,027 | |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 6,247,849 | | | | 4,926,519 | |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 585,175 | | | | 2,077,843 | |
Cost of shares redeemed | | | (3,500,005 | ) | | | (11,809,613 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (2,914,830 | ) | | | (9,731,770 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 519,140 | | | | 248,948 | |
Cost of shares redeemed | | | (2,008,532 | ) | | | (12,399,873 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (1,489,392 | ) | | | (12,150,925 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | — | | | | 20,184 | |
Cost of shares redeemed | | | — | | | | (853,154 | ) |
| | | | | | | | |
Net decrease from share transactions | | | — | | | | (832,970 | ) |
| | | | | | | | |
Advisor Class | | | | | | | | |
Proceeds from sale of shares | | | 366,433 | | | | 3,658,413 | |
Cost of shares redeemed | | | (540,250 | ) | | | (1,119,996 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (173,817 | ) | | | 2,538,417 | |
| | | | | | | | |
Net increase/(decrease) in net assets | | $ | 1,669,810 | | | $ | (15,250,729 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 33,456,749 | | | | 48,707,478 | |
| | | | | | | | |
End of period (including accumulated net investment loss of $(119,261) and $0, respectively) | | $ | 35,126,559 | | | $ | 33,456,749 | |
| | | | | | | | |
Other Information: | | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 32,243 | | | | 137,950 | |
Redeemed | | | (197,627 | ) | | | (757,341 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (165,384 | ) | | | 619,391 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 27,675 | | | | 15,356 | |
Redeemed | | | (108,851 | ) | | | (756,084 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (81,176 | ) | | | (740,728 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | — | | | | 1,302 | |
Redeemed | | | — | | | | (54,359 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | — | | | | (53,057 | ) |
| | | | | | | | |
Advisor Class | | | | | | | | |
Sold | | | 19,707 | | | | 219,067 | |
Redeemed | | | (28,957 | ) | | | (68,564 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (9,250 | ) | | | 150,503 | |
| | | | | | | | |
(a) Prior to May 1, 2013, the Forward Small Cap Equity Fund Advisor Class was known as the Forward Small Cap Equity Fund Class M.
(b) Effective November 30, 2012, Class A shares of the Forward Small Cap Equity Fund were terminated and converted to Investor Class shares.
| | | | |
| June 30, 2013 | | 110 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Tactical Enhanced Fund | |
| | | Six Months Ended June 30, 2013 (Unaudited)(a) | | | Year Ended
December 31,
2012 | |
Operations: | | | | | | | | |
Net investment loss | | $ | (475,438 | ) | | $ | (428,504 | ) |
Net realized gain on investments | | | 1,562,080 | | | | 209,254 | |
Net realized gain on futures contracts | | | — | | | | 3,743,496 | |
Net change in unrealized appreciation/(depreciation) on investments | | | (624,162 | ) | | | 522,971 | |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 462,480 | | | | 4,047,217 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net realized gains on investments | | | | | | | | |
Investor Class | | | — | | | | (808,065 | ) |
Institutional Class | | | — | | | | (863,999 | ) |
Class A | | | — | | | | (168,748 | ) |
Class C | | | — | | | | (140,921 | ) |
Advisor Class | | | — | | | | (13,611 | ) |
| | | | | | | | |
Total distributions | | | — | | | | (1,995,344 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 14,801,273 | | | | 10,770,966 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 805,681 | |
Cost of shares redeemed | | | (9,165,948 | ) | | | (7,652,328 | ) |
| | | | | | | | |
Net increase from share transactions | | | 5,635,325 | | | | 3,924,319 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 21,374,031 | | | | 13,748,229 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 819,635 | |
Cost of shares redeemed | | | (5,703,272 | ) | | | (9,371,964 | ) |
| | | | | | | | |
Net increase from share transactions | | | 15,670,759 | | | | 5,195,900 | |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | 572,607 | | | | 1,248,070 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 162,900 | |
Cost of shares redeemed | | | (312,527 | ) | | | (577,900 | ) |
| | | | | | | | |
Net increase from share transactions | | | 260,080 | | | | 833,070 | |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 603,801 | | | | 1,244,612 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 133,593 | |
Cost of shares redeemed | | | (1,611,416 | ) | | | (443,699 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (1,007,615 | ) | | | 934,506 | |
| | | | | | | | |
Advisor Class | | | | | | | | |
Proceeds from sale of shares | | | 4,219,325 | | | | 246,017 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 12,865 | |
Cost of shares redeemed | | | (472,233 | ) | | | (244,950 | ) |
| | | | | | | | |
Net increase from share transactions | | | 3,747,092 | | | | 13,932 | |
| | | | | | | | |
Net increase in net assets | | $ | 24,768,121 | | | $ | 12,953,600 | |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 41,692,418 | | | | 28,738,818 | |
| | | | | | | | |
End of period (including accumulated net investment loss of $(475,438) and $0, respectively) | | $ | 66,460,539 | | | $ | 41,692,418 | |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 111 | | June 30, 2013 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Tactical Enhanced Fund (continued) | |
| | | Six Months Ended June 30, 2013 (Unaudited)(a) | | | Year Ended
December 31,
2012 | |
Other Information: | | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 560,379 | | | | 419,895 | |
Distributions reinvested | | | — | | | | 31,753 | |
Redeemed | | | (348,027 | ) | | | (295,800 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 212,352 | | | | 155,848 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 812,473 | | | | 530,372 | |
Distributions reinvested | | | — | | | | 32,096 | |
Redeemed | | | (214,519 | ) | | | (362,988 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 597,954 | | | | 199,480 | |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | 21,722 | | | | 49,177 | |
Distributions reinvested | | | — | | | | 6,442 | |
Redeemed | | | (11,847 | ) | | | (22,738 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 9,875 | | | | 32,881 | |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 23,085 | | | | 48,751 | |
Distributions reinvested | | | — | | | | 5,330 | |
Redeemed | | | (61,618 | ) | | | (17,386 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (38,533 | ) | | | 36,695 | |
| | | | | | | | |
Advisor Class | | | | | | | | |
Sold | | | 159,897 | | | | 9,129 | |
Distributions reinvested | | | — | | | | 503 | |
Redeemed | | | (17,839 | ) | | | (9,581 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 142,058 | | | | 51 | |
| | | | | | | | |
(a) Prior to May 1, 2013, the Forward Tactical Enhanced Fund Advisor Class was known as the Forward Tactical Enhanced Fund Class M.
| | | | |
| June 30, 2013 | | 112 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Tactical Growth Fund | |
| | | Six Months Ended June 30, 2013 (unaudited)(a) | | | Year Ended December 31, 2012 | |
Operations: | | | | | | | | |
Net investment loss | | $ | (6,961,179 | ) | | $ | (13,599,591 | ) |
Net realized gain/(loss) on investments | | | (2,671,351 | ) | | | 6,269,412 | |
Net realized gain on futures contracts | | | 66,189,268 | | | | 46,605,989 | |
Net change in unrealized appreciation/(depreciation) on investments and futures contracts | | | (8,390,336 | ) | | | 7,699,081 | |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 48,166,402 | | | | 46,974,891 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net realized gains on investments | | | | | | | | |
Investor Class | | | — | | | | (6,983,133 | ) |
Institutional Class | | | — | | | | (1,968,876 | ) |
Class A | | | — | | | | (3,717,394 | ) |
Class C | | | — | | | | (4,059,123 | ) |
Advisor Class | | | — | | | | (15,019,816 | ) |
| | | | | | | | |
Total distributions | | | — | | | | (31,748,342 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 18,493,852 | | | | 58,253,980 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 6,841,303 | |
Cost of shares redeemed | | | (55,266,237 | ) | | | (134,949,663 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (36,772,385 | ) | | | (69,854,380 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 6,572,402 | | | | 24,736,916 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 1,912,486 | |
Cost of shares redeemed | | | (9,477,761 | ) | | | (36,591,483 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (2,905,359 | ) | | | (9,942,081 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | 21,595,514 | | | | 53,281,448 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 3,648,679 | |
Cost of shares redeemed | | | (36,858,147 | ) | | | (109,771,869 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (15,262,633 | ) | | | (52,841,742 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 6,018,647 | | | | 16,059,722 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 3,923,750 | |
Cost of shares redeemed | | | (32,277,721 | ) | | | (45,958,213 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (26,259,074 | ) | | | (25,974,741 | ) |
| | | | | | | | |
Advisor Class | | | | | | | | |
Proceeds from sale of shares | | | 92,648,411 | | | | 324,368,747 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 14,463,588 | |
Cost of shares redeemed | | | (98,390,426 | ) | | | (182,855,054 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (5,742,015 | ) | | | 155,977,281 | |
| | | | | | | | |
Net increase/(decrease) in net assets | | $ | (38,775,064 | ) | | $ | 12,590,886 | |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 924,771,929 | | | | 912,181,043 | |
| | | | | | | | |
End of period (including accumulated net investment loss of $(6,961,179) and $0, respectively) | | $ | 885,996,865 | | | $ | 924,771,929 | |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 113 | | June 30, 2013 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Tactical Growth Fund (continued) | |
| | | Six Months Ended June 30, 2013 (unaudited)(a) | | | Year Ended December 31, 2012 | |
Other Information: | | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 709,197 | | | | 2,251,195 | |
Distributions reinvested | | | — | | | | 273,981 | |
Redeemed | | | (2,124,418 | ) | | | (5,236,700 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (1,415,221 | ) | | | (2,711,524 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 246,879 | | | | 947,880 | |
Distributions reinvested | | | — | | | | 75,742 | |
Redeemed | | | (359,774 | ) | | | (1,407,431 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (112,895 | ) | | | (383,809 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | 830,651 | | | | 2,075,160 | |
Distributions reinvested | | | — | | | | 146,946 | |
Redeemed | | | (1,415,825 | ) | | | (4,272,339 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (585,174 | ) | | | (2,050,233 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 233,705 | | | | 629,372 | |
Distributions reinvested | | | — | | | | 160,284 | |
Redeemed | | | (1,266,004 | ) | | | (1,812,162 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (1,032,299 | ) | | | (1,022,506 | ) |
| | | | | | | | |
Advisor Class | | | | | | | | |
Sold | | | 3,484,015 | | | | 12,521,483 | |
Distributions reinvested | | | — | | | | 572,589 | |
Redeemed | | | (3,719,631 | ) | | | (7,021,251 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (235,616 | ) | | | 6,072,821 | |
| | | | | | | | |
(a) Prior to May 1, 2013, the Forward Tactical Growth Fund Advisor Class was known as the Forward Tactical Growth Fund Class M.
| | | | |
| June 30, 2013 | | 114 | | See Notes to Financial Statements |
Consolidated Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Commodity Long/Short Strategy Fund | |
| | | Six Months Ended June 30, 2013 (unaudited)(a) | | | Year Ended December 31, 2012 | |
Operations: | | | | | | | | |
Net investment loss | | $ | (469,256 | ) | | $ | (1,109,259 | ) |
Net realized gain on investments | | | 142,800 | | | | 127,074 | |
Net realized gain/(loss) on swap contracts | | | 7,389,907 | | | | (39,765,454 | ) |
Net change in unrealized appreciation/(depreciation) on investments and swap contracts | | | 4,356,946 | | | | (3,852,482 | ) |
| | | | | | | | |
Net increase/(decrease) in net assets resulting from operations | | | 11,420,397 | | | | (44,600,121 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 5,333,128 | | | | 26,945,461 | |
Cost of shares redeemed | | | (5,440,133 | ) | | | (43,172,951 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (107,005 | ) | | | (16,227,490 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 30,724,847 | | | | 68,401,475 | |
Cost of shares redeemed | | | (32,743,800 | ) | | | (62,916,010 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (2,018,953 | ) | | | 5,485,465 | |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 538,274 | | | | 6,388,454 | |
Cost of shares redeemed | | | (1,641,993 | ) | | | (3,785,060 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (1,103,719 | ) | | | 2,603,394 | |
| | | | | | | | |
Advisor Class | | | | | | | | |
Proceeds from sale of shares | | | 8,693,635 | | | | 56,520,918 | |
Cost of shares redeemed | | | (9,904,223 | ) | | | (15,555,257 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (1,210,588 | ) | | | 40,965,661 | |
| | | | | | | | |
Class Z | | | | | | | | |
Proceeds from sale of shares | | | 3,600,000 | | | | 2,780,000 | |
Cost of shares redeemed | | | (2,450,000 | ) | | | (5,956,511 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | 1,150,000 | | | | (3,176,511 | ) |
| | | | | | | | |
Net increase/(decrease) in net assets | | $ | 8,130,132 | | | $ | (14,949,602 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 117,152,922 | | | | 132,102,524 | |
| | | | | | | | |
End of period (including accumulated net investment loss of $(469,256) and $0, respectively) | | $ | 125,283,054 | | | $ | 117,152,922 | |
| | | | | | | | |
Other Information: | | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 256,424 | | | | 1,083,042 | |
Redeemed | | | (262,735 | ) | | | (1,772,027 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (6,311 | ) | | | (688,985 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 1,486,720 | | | | 2,715,414 | |
Redeemed | | | (1,578,563 | ) | | | (2,730,174 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (91,843 | ) | | | (14,760 | ) |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 115 | | June 30, 2013 |
Consolidated Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Commodity Long/Short Strategy Fund
(continued) | |
| | | Six Months Ended June 30, 2013 (unaudited)(a) | | | Year Ended December 31, 2012 | |
Class C | | | | | | | | |
Sold | | | 26,427 | | | | 255,657 | |
Redeemed | | | (81,230 | ) | | | (171,450 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (54,803 | ) | | | 84,208 | |
| | | | | | | | |
Advisor Class | | | | | | | | |
Sold | | | 419,027 | | | | 2,317,334 | |
Redeemed | | | (481,094 | ) | | | (689,037 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (62,067 | ) | | | 1,628,297 | |
| | | | | | | | |
Class Z | | | | | | | | |
Sold | | | 172,840 | | | | 125,536 | |
Redeemed | | | (117,127 | ) | | | (241,582 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | 55,713 | | | | (116,046 | ) |
| | | | | | | | |
(a) Prior to May 1, 2013, the Forward Commodity Long/Short Strategy Fund Advisor Class was known as the Forward Commodity Long/Short Strategy Fund Class M.
| | | | |
| June 30, 2013 | | 116 | | See Notes to Financial Statements |
Consolidated Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Managed Futures Strategy Fund | |
| | | Six Months Ended June 30, 2013 (Unaudited) | | | Period Ended December 31, 2012(a) | |
Operations: | | | | | | | | |
Net investment loss | | $ | (98,935 | ) | | $ | (148,398 | ) |
Net realized gain on investments | | | 0 | | | | 7,034 | |
Net realized gain/(loss) on swap contracts | | | 160,423 | | | | (2,056,919 | ) |
Net change in unrealized appreciation on investments and swap contracts | | | 242,725 | | | | 78,159 | |
| | | | | | | | |
Net increase/(decrease) in net assets resulting from operations | | | 304,213 | | | | (2,120,124 | ) |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net realized gains on investments | | | | | | | | |
Investor Class | | | — | | | | (123 | ) |
Institutional Class | | | — | | | | (106 | ) |
Class C | | | — | | | | (109 | ) |
Class Z | | | — | | | | (1,233 | ) |
| | | | | | | | |
Total distributions | | | — | | | | (1,571 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 217,130 | | | | 1,355,660 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 24 | |
Cost of shares redeemed | | | (135,134 | ) | | | (90,048 | ) |
| | | | | | | | |
Net increase from share transactions | | | 81,996 | | | | 1,265,636 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 36,479 | | | | 1,099,777 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 8 | |
Cost of shares redeemed | | | (34,893 | ) | | | (19,695 | ) |
| | | | | | | | |
Net increase from share transactions | | | 1,586 | | | | 1,080,090 | |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 35,700 | | | | 1,138,532 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 3 | |
| | | | | | | | |
Net increase from share transactions | | | 35,700 | | | | 1,138,535 | |
| | | | | | | | |
Class Z | | | | | | | | |
Proceeds from sale of shares | | | 861,092 | | | | 11,840,001 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 1,233 | |
Cost of shares redeemed | | | (3,225,000 | ) | | | (450,000 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (2,363,908 | ) | | | 11,391,234 | |
| | | | | | | | |
Net increase/(decrease) in net assets | | $ | (1,940,413 | ) | | $ | 12,753,800 | |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 12,753,800 | | | | 0 | |
| | | | | | | | |
End of period (including accumulated net investment income/(loss) of $(93,928) and $5,007, respectively) | | $ | 10,813,387 | | | $ | 12,753,800 | |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 117 | | June 30, 2013 |
Consolidated Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Managed Futures Strategy Fund
(continued) | |
| | | Six Months Ended June 30, 2013 (Unaudited) | | | Period Ended December 31, 2012(a) | |
Other Information: | | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 10,496 | | | | 54,004 | |
Distributions reinvested | | | — | | | | 1 | |
Redeemed | | | (6,504 | ) | | | (3,972 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 3,992 | | | | 50,033 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 1,741 | | | | 44,115 | |
Distributions reinvested | | | — | | | | 1 | |
Redeemed | | | (1,688 | ) | | | (895 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 53 | | | | 43,221 | |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 1,739 | | | | 46,103 | |
Distributions reinvested | | | — | | | | 1 | |
| | | | | | | | |
Net increase in shares outstanding | | | 1,739 | | | | 46,104 | |
| | | | | | | | |
Class Z | | | | | | | | |
Sold | | | 41,780 | | | | 505,892 | |
Distributions reinvested | | | — | | | | 60 | |
Redeemed | | | (155,715 | ) | | | (21,964 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (113,935 | ) | | | 483,988 | |
| | | | | | | | |
(a) The Forward Managed Futures Strategy Fund commenced operations on January 30, 2012. The Forward Managed Futures Strategy Fund began offering Class Z shares on January 31, 2012.
| | | | |
| June 30, 2013 | | 118 | | See Notes to Financial Statements |
Statement of Cash Flows
For the Six Months Ended June 30, 2013 (Unaudited)
| | | | | | | | |
| | | Forward Credit
Analysis Long/Short Fund | | | Forward Select
EM Dividend
Fund | |
Cash Flows from Operating Activities: | | | | | | | | |
Net increase/(decrease) in net assets resulting from operations | | $ | (33,560,398 | ) | | $ | 9,658 | |
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by/(used) in operating activities: | | | | | | | | |
Purchases of investment securities | | | (464,352,770 | ) | | | (32,814,696 | ) |
Proceeds from sale of investment securities | | | 259,641,952 | | | | 43,843,118 | |
Proceeds from securities sold short transactions | | | 179,933,233 | | | | — | |
Purchases to cover securities sold short transactions | | | (18,571,593 | ) | | | — | |
Discount and premiums amortized | | | (36,728 | ) | | | 38,137 | |
Net realized (gain)/loss on investment securities | | | 1,312,533 | | | | (1,519,006 | ) |
Net realized loss on securities sold short | | | 964,550 | | | | — | |
Net realized loss on foreign currency | | | — | | | | 280,697 | |
Net change in unrealized depreciation on investments, securities sold short and translation of assets and liabilities in foreign currency | | | 44,084,007 | | | | 1,763,853 | |
Changes in assets and liabilities: | | | | | | | | |
Increase in deposit with broker for securities sold short | | | (45,497,924 | ) | | | — | |
Increase in deposit with broker for futures contracts | | | — | | | | (214,107 | ) |
Increase in variation margin receivable | | | — | | | | (131,279 | ) |
Increase in interest and dividends receivable | | | (3,881,800 | ) | | | (206,711 | ) |
Increase in other assets | | | (47,423 | ) | | | (27,524 | ) |
Increase in payable for interest on short sales | | | 687,223 | | | | — | |
Increase in payable for interest due on loan | | | — | | | | 4,152 | |
Increase in payable for advisor | | | 24,297 | | | | 682 | |
Increase in payable for distribution and service fees | | | 23,626 | | | | 3,573 | |
Increase in payable to trustees | | | 1,710 | | | | 359 | |
Increase/(Decrease) in payable for chief compliance officer fee | | | (72 | ) | | | 61 | |
Decrease in payable for legal and audit fees | | | (25,154 | ) | | | (5,418 | ) |
Increase/(Decrease) in accrued expenses and other liabilities | | | (4,637 | ) | | | 10,599 | |
| | | | | | | | |
Net cash provided by/(used) in operating activities | | | (79,305,368 | ) | | | 11,036,148 | |
| | | | | | | | |
Cash Flows from Financing Activities: | | | | | | | | |
Cash provided by loan, net | | | — | | | | 2,940,925 | |
Proceeds from sale of shares | | | 361,524,283 | | | | 37,774,281 | |
Cost of shares redeemed | | | (291,500,958 | ) | | | (45,303,698 | ) |
Cash distributions paid | | | (2,461,883 | ) | | | (616,971 | ) |
| | | | | | | | |
Net cash provided by/(used) in financing activities | | | 67,561,442 | | | | (5,205,463 | ) |
| | �� | | | | | | |
Effect of Exchange Rates On Cash & Foreign Currency | | | — | | | | (101,956 | ) |
Net Change in Cash & Foreign Currency for the Period | | | (11,743,926 | ) | | | 5,728,729 | |
| | | | | | | | |
Cash & Foreign Currency, Beginning of Period | | | 55,658,128 | | | | 2,732,867 | |
| | | | | | | | |
Cash & Foreign Currency, End of Period | | $ | 43,914,202 | | | $ | 8,461,596 | |
| | | | | | | | |
Non-cash financing activities not included herein consist of reinvestment of distributions of $9,955,872 and $305,492, respectively.
Cash paid for interest on short sales and interest paid to broker for Forward Credit Analysis Long/Short Fund was $946,954 and cash paid for interest on loan for Forward Select EM Dividend Fund was $14,598.
| | | | |
| See Notes to Financial Statements | | 119 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Credit Analysis Long/Short Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended June 30, 2013 (Unaudited) | | | Year Ended
December 31, 2012 | | | Year Ended
December 31,
2011(a) | | | Year Ended
December 31,
2010 | | | Year Ended
December 31,
2009 | | | Period Ended
December 31,
2008(b) | |
Net Asset Value, Beginning of Period | | $ | 8.93 | | | $ | 8.09 | | | $ | 7.96 | | | $ | 8.08 | | | $ | 5.84 | | | $ | 7.63 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.14 | (c) | | | 0.24 | (c) | | | 0.32 | (c) | | | 0.41 | | | | 0.48 | | | | 0.47 | |
Net realized and unrealized gain/(loss) on investments | | | (0.48 | ) | | | 0.88 | | | | 0.14 | | | | (0.07 | ) | | | 2.19 | | | | (1.68 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.34 | ) | | | 1.12 | | | | 0.46 | | | | 0.34 | | | | 2.67 | | | | (1.21 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.14 | ) | | | (0.22 | ) | | | (0.31 | ) | | | (0.39 | ) | | | (0.43 | ) | | | (0.58 | ) |
From capital gains | | | — | | | | (0.06 | ) | | | (0.02 | ) | | | (0.07 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.14 | ) | | | (0.28 | ) | | | (0.33 | ) | | | (0.46 | ) | | | (0.43 | ) | | | (0.58 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.48 | ) | | | 0.84 | | | | 0.13 | | | | (0.12 | ) | | | 2.24 | | | | (1.79 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 8.45 | | | $ | 8.93 | | | $ | 8.09 | | | $ | 7.96 | | | $ | 8.08 | | | $ | 5.84 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | (3.84 | )%(d) | | | 13.96 | % | | | 5.83 | % | | | 4.17 | % | | | 46.56 | % | | | (16.59 | )%(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 378,750 | | | $ | 338,662 | | | $ | 156,238 | | | $ | 136,654 | | | $ | 61,043 | | | $ | 12,867 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 3.64 | %(e) | | | 3.24 | % | | | 6.13 | % | | | 6.39 | % | | | 8.48 | % | | | 13.10 | %(e) |
Operating expenses including reimbursement/waiver | | | 1.99 | %(e) | | | 1.99 | % | | | 1.99 | % | | | 1.98 | %(f) | | | 1.93 | %(g) | | | 1.84 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 2.06 | %(e) | | | 2.08 | % | | | 2.14 | % | | | 2.14 | % | | | 2.22 | % | | | 2.52 | %(e) |
Ratios to Average Net Assets (including interest expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 3.21 | %(e) | | | 2.78 | % | | | 3.95 | % | | | 5.15 | % | | | 6.61 | % | | | 8.79 | %(e) |
Operating expenses including reimbursement/waiver | | | 2.41 | %(e) | | | 2.46 | % | | | 4.17 | % | | | 3.22 | %(f) | | | 3.80 | %(g) | | | 6.14 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 2.49 | %(e) | | | 2.55 | % | | | 4.32 | % | | | 3.39 | % | | | 4.09 | % | | | 6.82 | %(e) |
Portfolio Turnover Rate | | | 38 | %(d) | | | 63 | % | | | 133 | % | | | 89 | % | | | 221 | % | | | 311 | %(h) |
(a) Prior to May 1, 2011, the Forward Credit Analysis Long/Short Fund was known as the Forward Long/Short Credit Analysis Fund.
(b) The Fund began offering Investor Class shares on May 1, 2008.
(c) Per share amounts are based upon average shares outstanding.
(d) Not Annualized.
(e) Annualized.
(f) Effective May 1, 2010, the net expense limitation changed from 1.95% to 1.99%.
(g) Effective May 1, 2009, the net expense limitation changed from 1.84% to 1.95%.
(h) Portfolio turnover rate is calculated at the Fund level and represents the year ended December 31, 2008.
| | | | |
| June 30, 2013 | | 120 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Credit Analysis Long/Short Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended June 30, 2013 (Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(a) | | | Year Ended
December 31,
2010 | | | Year Ended
December 31,
2009 | | | Period Ended
December 31,
2008(b) | |
Net Asset Value, Beginning of Period | | $ | 8.88 | | | $ | 8.04 | | | $ | 7.91 | | | $ | 8.03 | | | $ | 5.81 | | | $ | 7.63 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.16 | (c) | | | 0.27 | (c) | | | 0.34 | (c) | | | 0.48 | | | | 0.54 | | | | 0.39 | |
Net realized and unrealized gain/(loss) on investments | | | (0.50 | ) | | | 0.88 | | | | 0.15 | | | | (0.11 | ) | | | 2.14 | | | | (1.59 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.34 | ) | | | 1.15 | | | | 0.49 | | | | 0.37 | | | | 2.68 | | | | (1.20 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.15 | ) | | | (0.25 | ) | | | (0.34 | ) | | | (0.42 | ) | | | (0.46 | ) | | | (0.62 | ) |
From capital gains | | | — | | | | (0.06 | ) | | | (0.02 | ) | | | (0.07 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.15 | ) | | | (0.31 | ) | | | (0.36 | ) | | | (0.49 | ) | | | (0.46 | ) | | | (0.62 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.49 | ) | | | 0.84 | | | | 0.13 | | | | (0.12 | ) | | | 2.22 | | | | (1.82 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 8.39 | | | $ | 8.88 | | | $ | 8.04 | | | $ | 7.91 | | | $ | 8.03 | | | $ | 5.81 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | (3.81 | )%(d) | | | 14.43 | % | | | 6.23 | % | | | 4.54 | % | | | 47.08 | % | | | (16.35 | )%(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 200,796 | | | $ | 214,229 | | | $ | 38,790 | | | $ | 16,994 | | | $ | 4,787 | | | $ | 793 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 3.98 | %(e) | | | 3.51 | % | | | 6.39 | % | | | 6.82 | % | | | 8.89 | % | | | 12.49 | %(e) |
Operating expenses including reimbursement/waiver | | | 1.64 | %(e) | | | 1.64 | % | | | 1.64 | % | | | 1.63 | %(f) | | | 1.57 | %(g) | | | 1.49 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 1.71 | %(e) | | | 1.74 | % | | | 1.79 | % | | | 1.80 | % | | | 1.86 | % | | | 2.53 | %(e) |
Ratios to Average Net Assets (including interest expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 3.56 | %(e) | | | 3.05 | % | | | 4.21 | % | | | 5.57 | % | | | 7.01 | % | | | 8.58 | %(e) |
Operating expenses including reimbursement/waiver | | | 2.06 | %(e) | | | 2.11 | % | | | 3.82 | % | | | 2.88 | %(f) | | | 3.45 | %(g) | | | 5.40 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 2.13 | %(e) | | | 2.21 | % | | | 3.97 | % | | | 3.06 | % | | | 3.74 | % | | | 6.44 | %(e) |
Portfolio Turnover Rate | | | 38 | %(d) | | | 63 | % | | | 133 | % | | | 89 | % | | | 221 | % | | | 311 | %(h) |
(a) Prior to May 1, 2011, the Forward Credit Analysis Long/Short Fund was known as the Forward Long/Short Credit Analysis Fund.
(b) The Fund began offering Institutional Class shares on May 1, 2008.
(c) Per share amounts are based upon average shares outstanding.
(d) Not Annualized.
(e) Annualized.
(f) Effective May 1, 2010, the net expense limitation changed from 1.60% to 1.64%.
(g) Effective May 1, 2009, the net expense limitation changed from 1.49% to 1.60%.
(h) Portfolio turnover rate is calculated at the Fund level and represents the year ended December 31, 2008.
| | | | |
| See Notes to Financial Statements | | 121 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Credit Analysis Long/Short Fund
| | | | | | | | | | | | | | | | |
| | | Class A | |
| | | Six Months Ended June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(a) | | | Period Ended
December 31,
2010(b) | |
Net Asset Value, Beginning of Period | | $ | 8.90 | | | $ | 8.08 | | | $ | 7.95 | | | $ | 8.70 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | |
Net investment income | | | 0.14 | (c) | | | 0.22 | (c) | | | 0.31 | (c) | | | 0.14 | |
Net realized and unrealized gain/(loss) on investments | | | (0.50 | ) | | | 0.88 | | | | 0.14 | | | | (0.63 | ) |
| | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.36 | ) | | | 1.10 | | | | 0.45 | | | | (0.49 | ) |
| | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | |
From investment income | | | (0.13 | ) | | | (0.22 | ) | | | (0.30 | ) | | | (0.19 | ) |
From capital gains | | | — | | | | (0.06 | ) | | | (0.02 | ) | | | (0.07 | ) |
| | | | | | | | | | | | | | | | |
Total Distributions | | | (0.13 | ) | | | (0.28 | ) | | | (0.32 | ) | | | (0.26 | ) |
| | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.49 | ) | | | 0.82 | | | | 0.13 | | | | (0.75 | ) |
| | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 8.41 | | | $ | 8.90 | | | $ | 8.08 | | | $ | 7.95 | |
| | | | | | | | | | | | | | | | |
Total Return(d) | | | (4.04 | )%(e) | | | 13.69 | % | | | 5.68 | % | | | (5.69 | )%(e) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 21,115 | | | $ | 18,480 | | | $ | 1,621 | | | $ | 2,360 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 3.48 | %(f) | | | 2.96 | % | | | 6.06 | % | | | 5.63 | %(f) |
Operating expenses including reimbursement/waiver | | | 2.14 | %(f) | | | 2.14 | % | | | 2.14 | % | | | 2.14 | %(f) |
Operating expenses excluding reimbursement/waiver | | | 2.21 | %(f) | | | 2.24 | % | | | 2.29 | % | | | 2.36 | %(f) |
Ratios to Average Net Assets (including interest expense): | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 3.06 | %(f) | | | 2.49 | % | | | 3.88 | % | | | 4.46 | %(f) |
Operating expenses including reimbursement/waiver | | | 2.56 | %(f) | | | 2.61 | % | | | 4.32 | % | | | 3.31 | %(f) |
Operating expenses excluding reimbursement/waiver | | | 2.64 | %(f) | | | 2.71 | % | | | 4.47 | % | | | 3.53 | %(f) |
Portfolio Turnover Rate | | | 38 | %(e) | | | 63 | % | | | 133 | % | | | 89 | %(g) |
(a) Prior to May 1, 2011, the Forward Credit Analysis Long/Short Fund was known as the Forward Long/Short Credit Analysis Fund.
(b) The Fund began offering Class A shares on September 1, 2010.
(c) Per share amounts are based upon average shares outstanding.
(d) Total return does not reflect the effect of sales charges.
(e) Not Annualized.
(f) Annualized.
(g) Portfolio turnover rate is calculated at the Fund level and represents the year ended December 31, 2010.
| | | | |
| June 30, 2013 | | 122 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Credit Analysis Long/Short Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Class C | |
| | | Six Months Ended June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(a) | | | Year Ended
December 31,
2010 | | | Period Ended
December 31,
2009(b) | |
Net Asset Value, Beginning of Period | | $ | 8.93 | | | $ | 8.09 | | | $ | 7.97 | | | $ | 8.10 | | | $ | 7.26 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.12 | (c) | | | 0.19 | (c) | | | 0.27 | (c) | | | 0.39 | | | | 0.29 | |
Net realized and unrealized gain/(loss) on investments | | | (0.49 | ) | | | 0.88 | | | | 0.13 | | | | (0.10 | ) | | | 0.88 | |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.37 | ) | | | 1.07 | | | | 0.40 | | | | 0.29 | | | | 1.17 | |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.11 | ) | | | (0.17 | ) | | | (0.26 | ) | | | (0.35 | ) | | | (0.33 | ) |
From capital gains | | | — | | | | (0.06 | ) | | | (0.02 | ) | | | (0.07 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.11 | ) | | | (0.23 | ) | | | (0.28 | ) | | | (0.42 | ) | | | (0.33 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.48 | ) | | | 0.84 | | | | 0.12 | | | | (0.13 | ) | | | 0.84 | |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 8.45 | | | $ | 8.93 | | | $ | 8.09 | | | $ | 7.97 | | | $ | 8.10 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return(d) | | | (4.12 | )%(e) | | | 13.33 | % | | | 5.07 | % | | | 3.50 | % | | | 16.37 | %(e) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 29,098 | | | $ | 29,013 | | | $ | 15,550 | | | $ | 15,357 | | | $ | 4,377 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 3.03 | %(f) | | | 2.67 | % | | | 5.51 | % | | | 5.75 | % | | | 9.32 | %(f) |
Operating expenses including reimbursement/waiver | | | 2.59 | %(f) | | | 2.59 | % | | | 2.59 | % | | | 2.58 | %(g) | | | 2.24 | %(f) |
Operating expenses excluding reimbursement/waiver | | | 2.66 | %(f) | | | 2.68 | % | | | 2.74 | % | | | 2.76 | % | | | 2.41 | %(f) |
Ratios to Average Net Assets (including interest expense): | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 2.60 | %(f) | | | 2.21 | % | | | 3.33 | % | | | 4.51 | % | | | 6.55 | %(f) |
Operating expenses including reimbursement/waiver | | | 3.01 | %(f) | | | 3.06 | % | | | 4.77 | % | | | 3.82 | %(g) | | | 5.01 | %(f) |
Operating expenses excluding reimbursement/waiver | | | 3.08 | %(f) | | | 3.15 | % | | | 4.92 | % | | | 4.00 | % | | | 5.18 | %(f) |
Portfolio Turnover Rate | | | 38 | %(e) | | | 63 | % | | | 133 | % | | | 89 | % | | | 221 | %(h) |
(a) Prior to May 1, 2011, the Forward Credit Analysis Long/Short Fund was known as the Forward Long/Short Credit Analysis Fund.
(b) The Fund began offering Class C shares on June 3, 2009.
(c) Per share amounts are based upon average shares outstanding.
(d) Total return does not reflect the effect of sales charges.
(e) Not Annualized.
(f) Annualized.
(g) Effective May 1, 2010, the net expense limitation changed from 2.55% to 2.59%.
(h) Portfolio turnover rate is calculated at the Fund level and represents the year ended December 31, 2009.
| | | | |
| See Notes to Financial Statements | | 123 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Credit Analysis Long/Short Fund
| | | | | | | | | | | | | | | | |
| | | Advisor Class | |
| | | Six Months Ended June 30, 2013
(Unaudited)(a) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(b) | | | Period Ended December 31, 2010(c) | |
Net Asset Value, Beginning of Period | | $ | 8.88 | | | $ | 8.04 | | | $ | 7.91 | | | $ | 8.17 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | |
Net investment income | | | 0.16 | (d) | | | 0.26 | (d) | | | 0.35 | (d) | | | 0.40 | |
Net realized and unrealized gain/(loss) on investments | | | (0.49 | ) | | | 0.89 | | | | 0.14 | | | | (0.17 | ) |
| | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.33 | ) | | | 1.15 | | | | 0.49 | | | | 0.23 | |
| | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | |
From investment income | | | (0.15 | ) | | | (0.25 | ) | | | (0.34 | ) | | | (0.42 | ) |
From capital gains | | | — | | | | (0.06 | ) | | | (0.02 | ) | | | (0.07 | ) |
| | | | | | | | | | | | | | | | |
Total Distributions | | | (0.15 | ) | | | (0.31 | ) | | | (0.36 | ) | | | (0.49 | ) |
| | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.48 | ) | | | 0.84 | | | | 0.13 | | | | (0.26 | ) |
| | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 8.40 | | | $ | 8.88 | | | $ | 8.04 | | | $ | 7.91 | |
| | | | | | | | | | | | | | | | |
Total Return | | | (3.70 | )%(e) | | | 14.43 | % | | | 6.24 | % | | | 2.73 | %(e) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 105,390 | | | $ | 101,263 | | | $ | 4,120 | | | $ | 4,930 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 3.96 | %(f) | | | 3.44 | % | | | 6.54 | % | | | 6.85 | %(f) |
Operating expenses including reimbursement/waiver | | | 1.66 | %(f)(g) | | | 1.64 | % | | | 1.64 | % | | | 1.63 | %(f)(h) |
Operating expenses excluding reimbursement/waiver | | | 1.73 | %(f) | | | 1.74 | % | | | 1.79 | % | | | 1.85 | %(f) |
Ratios to Average Net Assets (including interest expense): | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 3.53 | %(f) | | | 2.97 | % | | | 4.36 | % | | | 5.50 | %(f) |
Operating expenses including reimbursement/waiver | | | 2.08 | %(f)(g) | | | 2.11 | % | | | 3.82 | % | | | 2.98 | %(f)(h) |
Operating expenses excluding reimbursement/waiver | | | 2.15 | %(f) | | | 2.20 | % | | | 3.97 | % | | | 3.20 | %(f) |
Portfolio Turnover Rate | | | 38 | %(e) | | | 63 | % | | | 133 | % | | | 89 | %(i) |
(a) Prior to May 1, 2013, the Forward Credit Analysis Long/Short Fund Advisor Class was known as the Forward Credit Analysis Long/Short Fund Class M.
(b) Prior to May 1, 2011, the Forward Credit Analysis Long/Short Fund was known as the Forward Long/Short Credit Analysis Fund.
(c) The Fund began offering Advisor Class shares on February 1, 2010.
(d) Per share amounts are based upon average shares outstanding.
(e) Not Annualized.
(f) Annualized.
(g) Effective May 1, 2013, the net expense limitation changed from 1.64% to 1.69%.
(h) Effective May 1, 2010, the net expense limitation changed from 1.60% to 1.64%.
(i) Portfolio turnover rate is calculated at the Fund level and represents the year ended December 31, 2010.
| | | | |
| June 30, 2013 | | 124 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward EM Corporate Debt Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended
June 30, 2013 (Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(a) | | | Year Ended
December 31,
2010 | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 9.98 | | | $ | 9.10 | | | $ | 11.05 | | | $ | 10.60 | | | $ | 9.30 | | | $ | 10.19 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.28 | (b) | | | 0.62 | (b) | | | 0.61 | (b) | | | 0.42 | | | | 0.47 | | | | 0.40 | |
Net realized and unrealized gain/(loss) on investments | | | (0.59 | ) | | | 0.70 | | | | (0.89 | ) | | | 0.25 | | | | 1.21 | | | | (0.87 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.31 | ) | | | 1.32 | | | | (0.28 | ) | | | 0.67 | | | | 1.68 | | | | (0.47 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.25 | ) | | | (0.44 | ) | | | (1.67 | ) | | | (0.22 | ) | | | (0.38 | ) | | | (0.42 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.25 | ) | | | (0.44 | ) | | | (1.67 | ) | | | (0.22 | ) | | | (0.38 | ) | | | (0.42 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.56 | ) | | | 0.88 | | | | (1.95 | ) | | | 0.45 | | | | 1.30 | | | | (0.89 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 9.42 | | | $ | 9.98 | | | $ | 9.10 | | | $ | 11.05 | | | $ | 10.60 | | | $ | 9.30 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | (3.09 | )%(c) | | | 14.63 | % | | | (2.73 | )% | | | 6.47 | % | | | 18.43 | % | | | (4.91 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 276,305 | | | $ | 168,003 | | | $ | 4,702 | | | $ | 5,924 | | | $ | 5,766 | | | $ | 5,073 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 5.80 | %(d) | | | 6.37 | % | | | 5.35 | % | | | 3.80 | % | | | 4.61 | % | | | 4.10 | % |
Operating expenses including reimbursement/waiver/recoupment of past waived fees by advisor | | | 1.31 | %(d)(e) | | | 1.35 | % | | | 1.39 | % | | | 1.39 | % | | | 1.26 | %(f) | | | 1.16 | % |
Operating expenses excluding reimbursement/waiver | | | 1.41 | %(d) | | | 1.36 | % | | | 1.89 | % | | | 1.90 | % | | | 1.41 | % | | | 1.36 | % |
Portfolio Turnover Rate | | | 51 | %(c) | | | 91 | % | | | 357 | % | | | 74 | % | | | 59 | % | | | 56 | % |
(a) Prior to May 1, 2011, the Forward EM Corporate Debt Fund was known as the Forward International Fixed Income Fund.
(b) Per share amounts are based upon average shares outstanding.
(c) Not Annualized.
(d) Annualized.
(e) Effective May 1, 2013, the net expense limitation changed from 1.39% to 1.34%.
(f) Effective May 1, 2009, the net expense limitation changed from 1.24% to 1.39%.
| | | | |
| See Notes to Financial Statements | | 125 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward EM Corporate Debt Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended June 30, 2013 (Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(a) | | | Year Ended
December 31,
2010 | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 9.91 | | | $ | 9.04 | | | $ | 11.02 | | | $ | 10.55 | | | $ | 9.27 | | | $ | 10.19 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.30 | (b) | | | 0.65 | (b) | | | 0.68 | (b) | | | 0.48 | | | | 0.48 | | | | 0.44 | |
Net realized and unrealized gain/(loss) on investments | | | (0.59 | ) | | | 0.70 | | | | (0.92 | ) | | | 0.23 | | | | 1.21 | | | | (0.88 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.29 | ) | | | 1.35 | | | | (0.24 | ) | | | 0.71 | | | | 1.69 | | | | (0.44 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.26 | ) | | | (0.48 | ) | | | (1.74 | ) | | | (0.24 | ) | | | (0.41 | ) | | | (0.48 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.26 | ) | | | (0.48 | ) | | | (1.74 | ) | | | (0.24 | ) | | | (0.41 | ) | | | (0.48 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.55 | ) | | | 0.87 | | | | (1.98 | ) | | | 0.47 | | | | 1.28 | | | | (0.92 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 9.36 | | | $ | 9.91 | | | $ | 9.04 | | | $ | 11.02 | | | $ | 10.55 | | | $ | 9.27 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | (2.85 | )%(c) | | | 15.06 | % | | | (2.40 | )% | | | 6.91 | % | | | 18.70 | % | | | (4.60 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 27,123 | | | $ | 33,773 | | | $ | 7,613 | | | $ | 17,469 | | | $ | 16,257 | | | $ | 12,088 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 6.09 | %(d) | | | 6.67 | % | | | 6.10 | % | | | 4.22 | % | | | 4.89 | % | | | 4.27 | % |
Operating expenses including reimbursement/waiver/recoupment of past waived fees by advisor | | | 0.92 | %(d) | | | 0.99 | % | | | 0.99 | % | | | 0.99 | % | | | 0.97 | % | | | 0.97 | % |
Operating expenses excluding reimbursement/waiver | | | 0.99 | %(d) | | | 1.01 | % | | | 1.49 | % | | | 1.45 | % | | | 1.13 | % | | | 1.35 | % |
Portfolio Turnover Rate | | | 51 | %(c) | | | 91 | % | | | 357 | % | | | 74 | % | | | 59 | % | | | 56 | % |
(a) Prior to May 1, 2011, the Forward EM Corporate Debt Fund was known as the Forward International Fixed Income Fund.
(b) Per share amounts are based upon average shares outstanding.
(c) Not Annualized.
(d) Annualized.
| | | | |
| June 30, 2013 | | 126 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward EM Corporate Debt Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class C | |
| | | Six Months Ended
June 30, 2013 (Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(a) | | | Year Ended
December 31,
2010 | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 10.01 | | | $ | 9.13 | | | $ | 11.08 | | | $ | 10.66 | | | $ | 9.35 | | | $ | 10.19 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.26 | (b) | | | 0.54 | (b) | | | 0.52 | (b) | | | 0.44 | | | | 0.42 | | | | 0.39 | |
Net realized and unrealized gain/(loss) on investments | | | (0.59 | ) | | | 0.73 | | | | (0.87 | ) | | | 0.17 | | | | 1.23 | | | | (0.88 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.33 | ) | | | 1.27 | | | | (0.35 | ) | | | 0.61 | | | | 1.65 | | | | (0.49 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.22 | ) | | | (0.39 | ) | | | (1.60 | ) | | | (0.19 | ) | | | (0.34 | ) | | | (0.35 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.22 | ) | | | (0.39 | ) | | | (1.60 | ) | | | (0.19 | ) | | | (0.34 | ) | | | (0.35 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.55 | ) | | | 0.88 | | | | (1.95 | ) | | | 0.42 | | | | 1.31 | | | | (0.84 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 9.46 | | | $ | 10.01 | | | $ | 9.13 | | | $ | 11.08 | | | $ | 10.66 | | | $ | 9.35 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | (3.25 | )%(c) | | | 13.99 | % | | | (3.31 | )% | | | 5.87 | % | | | 18.00 | % | | | (5.00 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 1,916 | | | $ | 1,695 | | | $ | 1,142 | | | $ | 2,345 | | | $ | 4,445 | | | $ | 3,879 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 5.19 | %(d) | | | 5.56 | % | | | 4.54 | % | | | 3.24 | % | | | 4.24 | % | | | 3.90 | % |
Operating expenses including reimbursement/waiver/recoupment of past waived fees by advisor | | | 1.87 | %(d) | | | 1.94 | % | | | 1.94 | % | | | 1.94 | % | | | 1.63 | %(e) | | | 1.35 | % |
Operating expenses excluding reimbursement/waiver | | | 1.95 | %(d) | | | 2.03 | % | | | 2.48 | % | | | 2.38 | % | | | 1.77 | % | | | 1.36 | % |
Portfolio Turnover Rate | | | 51 | %(c) | | | 91 | % | | | 357 | % | | | 74 | % | | | 59 | % | | | 56 | % |
(a) Prior to May 1, 2011, the Forward EM Corporate Debt Fund was known as the Forward International Fixed Income Fund.
(b) Per share amounts are based upon average shares outstanding.
(c) Not Annualized.
(d) Annualized.
(e) Effective May 1, 2009, the net expense limitation changed from 1.89% to 1.94%.
| | | | |
| See Notes to Financial Statements | | 127 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Emerging Markets Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended June 30, 2013 (Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008(a) | |
Net Asset Value, Beginning of Period | | $ | 10.58 | | | $ | 9.55 | | | $ | 20.97 | | | $ | 21.47 | | | $ | 12.28 | | | $ | 28.51 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.11 | (b) | | | 0.07 | (b) | | | 0.11 | (b) | | | 0.00 | (c) | | | 0.01 | (b) | | | 0.38 | |
Net realized and unrealized gain/(loss) on investments | | | (0.10 | ) | | | 1.64 | | | | (4.61 | ) | | | 3.43 | | | | 9.33 | | | | (16.20 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.01 | | | | 1.71 | | | | (4.50 | ) | | | 3.43 | | | | 9.34 | | | | (15.82 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | — | | | | (0.01 | ) | | | (0.57 | ) | | | (0.25 | ) | | | (0.15 | ) | | | — | |
From capital gains | | | — | | | | (0.67 | ) | | | (6.35 | ) | | | (3.68 | ) | | | — | | | | (0.41 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (0.68 | ) | | | (6.92 | ) | | | (3.93 | ) | | | (0.15 | ) | | | (0.41 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.01 | | | | 1.03 | | | | (11.42 | ) | | | (0.50 | ) | | | 9.19 | | | | (16.23 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 10.59 | | | $ | 10.58 | | | $ | 9.55 | | | $ | 20.97 | | | $ | 21.47 | | | $ | 12.28 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 0.09 | %(d) | | | 18.14 | % | | | (22.33 | )% | | | 16.56 | % | | | 76.16 | % | | | (55.38 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 6,494 | | | $ | 5,934 | | | $ | 23,498 | | | $ | 49,997 | | | $ | 39,864 | | | $ | 14,576 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 1.95 | %(e) | | | 0.65 | % | | | 0.55 | % | | | 0.01 | % | | | 0.04 | % | | | 1.67 | % |
Operating expenses including reimbursement/waiver | | | 1.77 | %(e)(f) | | | 1.80 | %(g)(h) | | | 1.79 | % | | | 1.79 | % | | | 1.77 | %(i) | | | 1.72 | %(j) |
Operating expenses excluding reimbursement/waiver | | | 2.99 | %(e) | | | 2.78 | % | | | 2.15 | % | | | 2.02 | % | | | 2.00 | % | | | 2.10 | % |
Portfolio Turnover Rate | | | 41 | %(d) | | | 150 | % | | | 102 | % | | | 129 | % | | | 120 | % | | | 214 | % |
(a) Prior to May 1, 2008, the Forward Emerging Markets Fund was known as the Forward Global Emerging Markets Fund.
(b) Per share amounts are based upon average shares outstanding.
(c) Amount represents less than $0.01 per share.
(d) Not Annualized.
(e) Annualized.
(f) Effective May 1, 2013, the net expense limitation changed from 1.79% to 1.74%.
(g) Effective May 1, 2012, the net expense limitation changed from 1.79% to 1.89%.
(h) Effective September 1, 2012, the net expense limitation changed from 1.89% to 1.79%.
(i) Effective May 1, 2009, the net expense limitation changed from 1.74% to 1.79%.
(j) Effective May 1, 2008, the net expense limitation changed from 1.69% to 1.74%.
| | | | |
| June 30, 2013 | | 128 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Emerging Markets Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended June 30, 2013 (Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008(a) | |
Net Asset Value, Beginning of Period | | $ | 10.67 | | | $ | 9.76 | | | $ | 21.31 | | | $ | 21.76 | | | $ | 12.40 | | | $ | 28.66 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.15 | (b) | | | 0.13 | (b) | | | 0.15 | (b) | | | 0.12 | (b) | | | 0.07 | (b) | | | 0.34 | |
Net realized and unrealized gain/(loss) on investments | | | (0.11 | ) | | | 1.67 | | | | (4.70 | ) | | | 3.45 | | | | 9.48 | | | | (16.19 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.04 | | | | 1.80 | | | | (4.55 | ) | | | 3.57 | | | | 9.55 | | | | (15.85 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | — | | | | (0.22 | ) | | | (0.65 | ) | | | (0.34 | ) | | | (0.19 | ) | | | — | |
From capital gains | | | — | | | | (0.67 | ) | | | (6.35 | ) | | | (3.68 | ) | | | — | | | | (0.41 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (0.89 | ) | | | (7.00 | ) | | | (4.02 | ) | | | (0.19 | ) | | | (0.41 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.04 | | | | 0.91 | | | | (11.55 | ) | | | (0.45 | ) | | | 9.36 | | | | (16.26 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 10.71 | | | $ | 10.67 | | | $ | 9.76 | | | $ | 21.31 | | | $ | 21.76 | | | $ | 12.40 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 0.38 | %(c) | | | 18.65 | % | | | (22.21 | )% | | | 17.12 | % | | | 76.94 | % | | | (55.19 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 5,199 | | | $ | 4,517 | | | $ | 31,484 | | | $ | 157,970 | | | $ | 291,105 | | | $ | 49,529 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 2.59 | %(d) | | | 1.25 | % | | | 0.76 | % | | | 0.62 | % | | | 0.36 | % | | | 1.76 | % |
Operating expenses including reimbursement/waiver | | | 1.39 | %(d) | | | 1.41 | %(e)(f) | | | 1.39 | % | | | 1.39 | % | | | 1.38 | % | | | 1.39 | % |
Operating expenses excluding reimbursement/waiver | | | 2.59 | %(d) | | | 2.22 | % | | | 1.76 | % | | | 1.59 | % | | | 1.53 | % | | | 1.77 | % |
Portfolio Turnover Rate | | | 41 | %(c) | | | 150 | % | | | 102 | % | | | 129 | % | | | 120 | % | | | 214 | % |
(a) Prior to May 1, 2008, the Forward Emerging Markets Fund was known as the Forward Global Emerging Markets Fund.
(b) Per share amounts are based upon average shares outstanding.
(c) Not Annualized.
(d) Annualized.
(e) Effective May 1, 2012, the net expense limitation changed from 1.39% to 1.49%.
(f) Effective September 1, 2012, the net expense limitation changed from 1.49% to 1.39%.
| | | | |
| See Notes to Financial Statements | | 129 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Emerging Markets Fund
| | | | | | | | | | | | | | | | |
| | | Advisor Class | |
| | | Six Months Ended June 30, 2013 (Unaudited)(a) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Period Ended
December 31,
2010(b) | |
Net Asset Value, Beginning of Period | | $ | 10.98 | | | $ | 9.86 | | | $ | 21.34 | | | $ | 20.49 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | |
Net investment income | | | 0.14 | (c) | | | 0.15 | (c) | | | 0.17 | (c) | | | 0.06 | |
Net realized and unrealized gain/(loss) on investments | | | (0.11 | ) | | | 1.67 | | | | (4.67 | ) | | | 4.78 | |
| | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.03 | | | | 1.82 | | | | (4.50 | ) | | | 4.84 | |
| | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | |
From investment income | | | — | | | | (0.03 | ) | | | (0.63 | ) | | | (0.31 | ) |
From capital gains | | | — | | | | (0.67 | ) | | | (6.35 | ) | | | (3.68 | ) |
| | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (0.70 | ) | | | (6.98 | ) | | | (3.99 | ) |
| | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.03 | | | | 1.12 | | | | (11.48 | ) | | | 0.85 | |
| | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 11.01 | | | $ | 10.98 | | | $ | 9.86 | | | $ | 21.34 | |
| | | | | | | | | | | | | | | | |
Total Return | | | 0.27 | %(d) | | | 18.71 | % | | | (21.96 | )% | | | 24.30 | %(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 1,129 | | | $ | 697 | | | $ | 180 | | | $ | 340 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 2.41 | %(e) | | | 1.42 | % | | | 0.86 | % | | | 0.35 | %(e) |
Operating expenses including reimbursement/waiver | | | 1.41 | %(e)(f) | | | 1.39 | %(g)(h) | | | 1.39 | % | | | 1.39 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 2.61 | %(e) | | | 2.72 | % | | | 1.74 | % | | | 1.64 | %(e) |
Portfolio Turnover Rate | | | 41 | %(d) | | | 150 | % | | | 102 | % | | | 129 | %(i) |
(a) Prior to May 1, 2013, the Forward Emerging Markets Fund Advisor Class was known as the Forward Emerging Markets Fund Class M.
(b) The Fund began offering Advisor Class shares on February 1, 2010.
(c) Per share amounts are based upon average shares outstanding.
(d) Not Annualized.
(e) Annualized.
(f) Effective May 1, 2013, the net expense limitation changed from 1.39% to 1.44%.
(g) Effective May 1, 2012, the net expense limitation changed from 1.39% to 1.49%.
(h) Effective September 1, 2012, the net expense limitation changed from 1.49% to 1.39%.
(i) Portfolio turnover rate is calculated at the Fund level and represents the year ended December 31, 2010.
| | | | |
| June 30, 2013 | | 130 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Endurance Long/Short Fund
| | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended June 30, 2013 (Unaudited) | | | Year Ended December 31, 2012(a) | |
Net Asset Value, Beginning of Period | | $ | 25.82 | | | $ | 25.00 | |
Income/(Loss) from Operations: | | | | | | | | |
Net investment loss(b) | | | (0.32 | ) | | | (0.50 | ) |
Net realized and unrealized gain on investments | | | 0.63 | | | | 1.32 | |
| | | | | | | | |
Total from Investment Operations | | | 0.31 | | | | 0.82 | |
| | | | | | | | |
Net Increase in Net Asset Value | | | 0.31 | | | | 0.82 | |
| | | | | | | | |
Net Asset Value, End of Period | | $ | 26.13 | | | $ | 25.82 | |
| | | | | | | | |
Total Return | | | 1.20 | %(c) | | | 3.28 | %(c) |
Ratios/Supplemental Data: | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 209 | | | $ | 206 | |
Ratios to Average Net Assets (excluding interest and dividends on short sales expense): | | | | | | | | |
Net investment loss including reimbursement/waiver | | | (1.83 | )%(d) | | | (1.44 | )%(d) |
Operating expenses including reimbursement/waiver | | | 2.34 | %(d) | | | 2.34 | %(d) |
Operating expenses excluding reimbursement/waiver | | | 2.93 | %(d) | | | 3.98 | %(d) |
Ratios to Average Net Assets (including interest and dividends on short sales expense): | | | | | | | | |
Net investment loss including reimbursement/waiver | | | (2.43 | )%(d) | | | (1.96 | )%(d) |
Operating expenses including reimbursement/waiver | | | 2.94 | %(d) | | | 2.85 | %(d) |
Operating expenses excluding reimbursement/waiver | | | 3.52 | %(d) | | | 4.49 | %(d) |
Portfolio Turnover Rate | | | 141 | %(c) | | | 283 | %(c) |
(a) The Fund began offering Investor Class shares on January 3, 2012.
(b) Per share amounts are based upon average shares outstanding.
(c) Not Annualized.
(d) Annualized.
| | | | |
| See Notes to Financial Statements | | 131 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Endurance Long/Short Fund
| | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended June 30, 2013
(Unaudited) | | | Year Ended
December 31, 2012(a) | |
Net Asset Value, Beginning of Period | | $ | 25.91 | | | $ | 25.00 | |
Income/(Loss) from Operations: | | | | | | | | |
Net investment loss(b) | | | (0.27 | ) | | | (0.43 | ) |
Net realized and unrealized gain on investments | | | 0.62 | | | | 1.34 | |
| | | | | | | | |
Total from Investment Operations | | | 0.35 | | | | 0.91 | |
| | | | | | | | |
Net Increase in Net Asset Value | | | 0.35 | | | | 0.91 | |
| | | | | | | | |
Net Asset Value, End of Period | | $ | 26.26 | | | $ | 25.91 | |
| | | | | | | | |
Total Return | | | 1.35 | %(c) | | | 3.64 | %(c) |
Ratios/Supplemental Data: | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 4,458 | | | $ | 4,652 | |
Ratios to Average Net Assets (excluding interest and dividends on short sales expense): | | | | | | | | |
Net investment loss including reimbursement/waiver | | | (1.48 | )%(d) | | | (1.16 | )%(d) |
Operating expenses including reimbursement/waiver | | | 1.99 | %(d) | | | 1.98 | %(d) |
Operating expenses excluding reimbursement/waiver | | | 2.57 | %(d) | | | 3.02 | %(d) |
Ratios to Average Net Assets (including interest and dividends on short sales expense): | | | | | | | | |
Net investment loss including reimbursement/waiver | | | (2.08 | )%(d) | | | (1.68 | )%(d) |
Operating expenses including reimbursement/waiver | | | 2.59 | %(d) | | | 2.50 | %(d) |
Operating expenses excluding reimbursement/waiver | | | 3.17 | %(d) | | | 3.53 | %(d) |
Portfolio Turnover Rate | | | 141 | %(c) | | | 283 | %(c) |
(a) The Fund began offering Institutional Class shares on January 3, 2012.
(b) Per share amounts are based upon average shares outstanding.
(c) Not Annualized.
(d) Annualized.
| | | | |
| June 30, 2013 | | 132 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Global Credit Long/Short Fund
| | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended June 30, 2013
(Unaudited) | | | Year Ended
December 31, 2012 | | | Period Ended
December 31, 2011(a) | |
Net Asset Value, Beginning of Period | | $ | 24.09 | | | $ | 24.16 | | | $ | 25.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | |
Net investment income(b) | | | 0.79 | | | | 2.32 | | | | 0.89 | |
Net realized and unrealized loss on investments | | | (1.95 | ) | | | (1.18 | ) | | | (0.92 | ) |
| | | | | | | | | | | | |
Total from Investment Operations | | | (1.16 | ) | | | 1.14 | | | | (0.03 | ) |
| | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | |
From investment income | | | (0.30 | ) | | | (0.78 | ) | | | (0.75 | ) |
From capital gains | | | — | | | | (0.43 | ) | | | (0.06 | ) |
| | | | | | | | | | | | |
Total Distributions | | | (0.30 | ) | | | (1.21 | ) | | | (0.81 | ) |
| | | | | | | | | | | | |
Net Decrease in Net Asset Value | | | (1.46 | ) | | | (0.07 | ) | | | (0.84 | ) |
| | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 22.63 | | | $ | 24.09 | | | $ | 24.16 | |
| | | | | | | | | | | | |
Total Return | | | (4.55 | )%(c) | | | 4.47 | % | | | (0.12 | )%(c) |
Ratios/Supplemental Data: | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 1,910 | | | $ | 1,916 | | | $ | 1,232 | |
Ratios to Average Net Assets (excluding interest and dividends on short sales expense): | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 7.57 | %(d) | | | 9.47 | % | | | 14.43 | %(d) |
Operating expenses including reimbursement/waiver | | | 2.39 | %(d) | | | 2.39 | % | | | 2.39 | %(d) |
Operating expenses excluding reimbursement/waiver | | | 3.51 | %(d) | | | 4.11 | % | | | 4.85 | %(d) |
Ratios to Average Net Assets (including interest and dividends on short sales expense): | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 6.70 | %(d) | | | 9.24 | % | | | 14.43 | %(d) |
Operating expenses including reimbursement/waiver | | | 3.25 | %(d) | | | 2.63 | % | | | 2.39 | %(d) |
Operating expenses excluding reimbursement/waiver | | | 4.38 | %(d) | | | 4.34 | % | | | 4.85 | %(d) |
Portfolio Turnover Rate | | | 117 | %(c) | | | 270 | % | | | 80 | %(c) |
(a) The Fund began offering Investor Class shares on October 3, 2011.
(b) Per share amounts are based upon average shares outstanding.
(c) Not Annualized.
(d) Annualized.
| | | | |
| See Notes to Financial Statements | | 133 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Global Credit Long/Short Fund
| | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended June 30, 2013
(Unaudited) | | | Year Ended
December 31, 2012 | | | Period Ended
December 31, 2011(a) | |
Net Asset Value, Beginning of Period | | $ | 24.23 | | | $ | 24.16 | | | $ | 25.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | |
Net investment income(b) | | | 0.81 | | | | 2.44 | | | | 0.91 | |
Net realized and unrealized loss on investments | | | (1.94 | ) | | | (1.20 | ) | | | (0.92 | ) |
| | | | | | | | | | | | |
Total from Investment Operations | | | (1.13 | ) | | | 1.24 | | | | (0.01 | ) |
| | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | |
From investment income | | | (0.35 | ) | | | (0.74 | ) | | | (0.77 | ) |
From capital gains | | | — | | | | (0.43 | ) | | | (0.06 | ) |
| | | | | | | | | | | | |
Total Distributions | | | (0.35 | ) | | | (1.17 | ) | | | (0.83 | ) |
| | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (1.48 | ) | | | 0.07 | | | | (0.84 | ) |
| | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 22.75 | | | $ | 24.23 | | | $ | 24.16 | |
| | | | | | | | | | | | |
Total Return | | | (4.38 | )%(c) | | | 4.87 | % | | | (0.02 | )%(c) |
Ratios/Supplemental Data: | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 2,542 | | | $ | 4,246 | | | $ | 1,242 | |
Ratios to Average Net Assets (excluding interest and dividends on short sales expense): | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 7.65 | %(d) | | | 10.00 | % | | | 14.83 | %(d) |
Operating expenses including reimbursement/waiver | | | 2.00 | %(d)(e) | | | 1.99 | % | | | 1.99 | %(d) |
Operating expenses excluding reimbursement/waiver | | | 3.11 | %(d) | | | 3.63 | % | | | 4.45 | %(d) |
Ratios to Average Net Assets (including interest and dividends on short sales expense): | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 6.78 | %(d) | | | 9.76 | % | | | 14.83 | %(d) |
Operating expenses including reimbursement/waiver | | | 2.87 | %(d)(e) | | | 2.23 | % | | | 1.99 | %(d) |
Operating expenses excluding reimbursement/waiver | | | 3.98 | %(d) | | | 3.86 | % | | | 4.45 | %(d) |
Portfolio Turnover Rate | | | 117 | %(c) | | | 270 | % | | | 80 | %(c) |
(a) The Fund began offering Institutional Class shares on October 3, 2011.
(b) Per share amounts are based upon average shares outstanding.
(c) Not Annualized.
(d) Annualized.
(e) Effective May 1, 2013, the net expense limitation changed from 1.99% to 2.04%.
| | | | |
| June 30, 2013 | | 134 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Global Credit Long/Short Fund
| | | | | | | | | | | | |
| | | Class C | |
| | | Six Months Ended June 30, 2013
(Unaudited) | | | Year Ended
December 31, 2012 | | | Period Ended
December 31, 2011(a) | |
Net Asset Value, Beginning of Period | | $ | 24.00 | | | $ | 24.16 | | | $ | 25.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | |
Net investment income(b) | | | 0.71 | | | | 2.10 | | | | 0.85 | |
Net realized and unrealized loss on investments | | | (1.94 | ) | | | (1.11 | ) | | | (0.92 | ) |
| | | | | | | | | | | | |
Total from Investment Operations | | | (1.23 | ) | | | 0.99 | | | | (0.07 | ) |
| | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | |
From investment income | | | (0.21 | ) | | | (0.72 | ) | | | (0.71 | ) |
From capital gains | | | — | | | | (0.43 | ) | | | (0.06 | ) |
| | | | | | | | | | | | |
Total Distributions | | | (0.21 | ) | | | (1.15 | ) | | | (0.77 | ) |
| | | | | | | | | | | | |
Net Decrease in Net Asset Value | | | (1.44 | ) | | | (0.16 | ) | | | (0.84 | ) |
| | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 22.56 | | | $ | 24.00 | | | $ | 24.16 | |
| | | | | | | | | | | | |
Total Return(c) | | | (4.81 | )%(d) | | | 3.80 | % | | | (0.27 | )%(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 1,128 | | | $ | 1,225 | | | $ | 1,208 | |
Ratios to Average Net Assets (excluding interest and dividends on short sales expense): | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 6.87 | %(e) | | | 8.62 | % | | | 13.78 | %(e) |
Operating expenses including reimbursement/waiver | | | 2.99 | %(e) | | | 2.99 | % | | | 2.99 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 4.13 | %(e) | | | 4.69 | % | | | 5.45 | %(e) |
Ratios to Average Net Assets (including interest and dividends on short sales expense): | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 6.00 | %(e) | | | 8.39 | % | | | 13.78 | %(e) |
Operating expenses including reimbursement/waiver | | | 3.85 | %(e) | | | 3.23 | % | | | 2.99 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 4.99 | %(e) | | | 4.93 | % | | | 5.45 | %(e) |
Portfolio Turnover Rate | | | 117 | %(d) | | | 270 | % | | | 80 | %(d) |
(a) The Fund began offering Class C shares on October 3, 2011.
(b) Per share amounts are based upon average shares outstanding.
(c) Total return does not reflect the effect of sales charges.
(d) Not Annualized.
(e) Annualized.
| | | | |
| See Notes to Financial Statements | | 135 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Global Credit Long/Short Fund
| | | | | | | | | | | | |
| | | Advisor Class | |
| | | Six Months Ended June 30, 2013
(Unaudited)(a) | | | Year Ended
December 31, 2012 | | | Period Ended
December 31, 2011(b) | |
Net Asset Value, Beginning of Period | | $ | 23.99 | | | $ | 24.16 | | | $ | 25.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | |
Net investment income(c) | | | 0.82 | | | | 2.36 | | | | 0.91 | |
Net realized and unrealized loss on investments | | | (1.94 | ) | | | (1.12 | ) | | | (0.92 | ) |
| | | | | | | | | | | | |
Total from Investment Operations | | | (1.12 | ) | | | 1.24 | | | | (0.01 | ) |
| | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | |
From investment income | | | (0.32 | ) | | | (0.98 | ) | | | (0.77 | ) |
From capital gains | | | — | | | | (0.43 | ) | | | (0.06 | ) |
| | | | | | | | | | | | |
Total Distributions | | | (0.32 | ) | | | (1.41 | ) | | | (0.83 | ) |
| | | | | | | | | | | | |
Net Decrease in Net Asset Value | | | (1.44 | ) | | | (0.17 | ) | | | (0.84 | ) |
| | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 22.55 | | | $ | 23.99 | | | $ | 24.16 | |
| | | | | | | | | | | | |
Total Return | | | (4.39 | )%(d) | | | 4.87 | % | | | (0.02 | )%(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 1,128 | | | $ | 1,200 | | | $ | 1,208 | |
Ratios to Average Net Assets (excluding interest and dividends on short sales expense): | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 7.84 | %(e) | | | 9.61 | % | | | 14.78 | %(e) |
Operating expenses including reimbursement/waiver | | | 2.02 | %(e)(f) | | | 1.99 | % | | | 1.99 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 3.16 | %(e) | | | 3.69 | % | | | 4.45 | %(e) |
Ratios to Average Net Assets (including interest and dividends on short sales expense): | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 6.98 | %(e) | | | 9.38 | % | | | 14.78 | %(e) |
Operating expenses including reimbursement/waiver | | | 2.88 | %(e)(f) | | | 2.23 | % | | | 1.99 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 4.03 | %(e) | | | 3.93 | % | | | 4.45 | %(e) |
Portfolio Turnover Rate | | | 117 | %(d) | | | 270 | % | | | 80 | %(d) |
(a) Prior to May 1, 2013, the Forward Global Credit Long/Short Fund Advisor Class was known as the Forward Global Credit Long/Short Fund Class M.
(b) The Fund began offering Advisor Class shares on October 3, 2011.
(c) Per share amounts are based upon average shares outstanding.
(d) Not Annualized.
(e) Annualized.
(f) Effective May 1, 2013, the net expense limitation changed from 1.99% to 2.09%.
| | | | |
| June 30, 2013 | | 136 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Global Dividend Fund
| | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended June 30, 2013
(Unaudited)(a) | | | Year Ended
December 31, 2012 | | | Period Ended
December 31, 2011(b) | |
Net Asset Value, Beginning of Period | | $ | 10.77 | | | $ | 10.37 | | | $ | 11.35 | |
Income/(Loss) from Operations: | | | | | | | | | | | | |
Net investment income(c) | | | 0.22 | | | | 0.43 | | | | 0.19 | |
Net realized and unrealized gain/(loss) on investments | | | 0.60 | | | | 0.49 | | | | (0.75 | ) |
| | | | | | | | | | | | |
Total from Investment Operations | | | 0.82 | | | | 0.92 | | | | (0.56 | ) |
| | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | |
From investment income | | | (0.25 | ) | | | (0.48 | ) | | | (0.42 | ) |
Tax return of capital | | | — | | | | (0.04 | ) | | | — | |
| | | | | | | | | | | | |
Total Distributions | | | (0.25 | ) | | | (0.52 | ) | | | (0.42 | ) |
| | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.57 | | | | 0.40 | | | | (0.98 | ) |
| | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 11.34 | | | $ | 10.77 | | | $ | 10.37 | |
| | | | | | | | | | | | |
Total Return | | | 7.56 | %(d) | | | 9.02 | % | | | (4.98 | )%(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 780 | | | $ | 3,266 | | | $ | 63 | |
Ratios to Average Net Assets: | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 3.81 | %(e) | | | 4.67 | % | | | 2.67 | %(e) |
Operating expenses including reimbursement/waiver | | | 1.26 | %(e)(f) | | | 1.26 | %(g) | | | 1.34 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 1.69 | %(e) | | | 1.96 | % | | | 1.95 | %(e) |
Portfolio Turnover Rate | | | 95 | %(d) | | | 53 | % | | | 101 | %(h) |
(a) Prior to February 20, 2013 the Forward Global Dividend Fund was known as the Forward Large Cap Dividend Fund.
(b) The Fund began offering Investor Class shares on May 2, 2011. Prior to November 1, 2011, the Forward Large Cap Dividend Fund was known as the Forward Large Cap Equity Fund.
(c) Per share amounts are based upon average shares outstanding.
(d) Not Annualized.
(e) Annualized.
(f) Effective May 1, 2013, the net expense limitation changed from 1.24% to 1.34%.
(g) Effective May 1, 2012, the net expense limitation changed from 1.34% to 1.24%.
(h) Portfolio turnover rate is calculated at the Fund level and represents the year ended December 31, 2011.
| | | | |
| See Notes to Financial Statements | | 137 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Global Dividend Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months
Ended June 30, 2013 (Unaudited)(a) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(b) | | | Year Ended
December 31,
2010 | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 10.62 | | | $ | 10.24 | | | $ | 10.21 | | | $ | 9.04 | | | $ | 7.44 | | | $ | 11.66 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.29 | (c) | | | 0.60 | (c) | | | 0.35 | (c) | | | 0.11 | (c) | | | 0.30 | | | | 0.08 | |
Net realized and unrealized gain/(loss) on investments | | | 0.55 | | | | 0.34 | | | | 0.13 | | | | 1.15 | | | | 1.51 | | | | (4.22 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.84 | | | | 0.94 | | | | 0.48 | | | | 1.26 | | | | 1.81 | | | | (4.14 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.27 | ) | | | (0.52 | ) | | | (0.45 | ) | | | (0.09 | ) | | | (0.21 | ) | | | (0.08 | ) |
Tax return of capital | | | — | | | | (0.04 | ) | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.27 | ) | | | (0.56 | ) | | | (0.45 | ) | | | (0.09 | ) | | | (0.21 | ) | | | (0.08 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.57 | | | | 0.38 | | | | 0.03 | | | | 1.17 | | | | 1.60 | | | | (4.22 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 11.19 | | | $ | 10.62 | | | $ | 10.24 | | | $ | 10.21 | | | $ | 9.04 | | | $ | 7.44 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 7.85 | %(d) | | | 9.35 | % | | | 4.64 | % | | | 13.98 | % | | | 24.34 | % | | | (35.48 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 10,153 | | | $ | 9,756 | | | $ | 4,895 | | | $ | 2,898 | | | $ | 990 | | | $ | 5,016 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 5.18 | %(e) | | | 5.65 | % | | | 3.33 | % | | | 1.22 | % | | | 1.14 | % | | | 0.91 | % |
Operating expenses including reimbursement/waiver | | | 0.93 | %(e)(f) | | | 0.91 | %(g) | | | 0.99 | % | | | 0.99 | % | | | 0.99 | % | | | 0.99 | % |
Operating expenses excluding reimbursement/waiver | | | 1.35 | %(e) | | | 1.44 | % | | | 1.40 | % | | | 1.35 | % | | | 1.67 | % | | | 1.29 | % |
Portfolio Turnover Rate | | | 95 | %(d) | | | 53 | % | | | 101 | % | | | 73 | % | | | 182 | % | | | 89 | % |
(a) Prior to February 20, 2013 the Forward Global Dividend Fund was known as the Forward Large Cap Dividend Fund.
(b) Prior to November 1, 2011, the Forward Large Cap Dividend Fund was known as the Forward Large Cap Equity Fund.
(c) Per share amounts are based upon average shares outstanding.
(d) Not Annualized.
(e) Annualized.
(f) Effective May 1, 2013, the net expense limitation changed from 0.89% to 0.99%.
(g) Effective May 1, 2012, the net expense limitation changed from 0.99% to 0.89%.
| | | | |
| June 30, 2013 | | 138 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Global Dividend Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | |
| | | Six Months
Ended June 30, 2013 (Unaudited)(a) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(b) | | | Year Ended
December 31,
2010 | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 10.77 | | | $ | 10.38 | | | $ | 10.34 | | | $ | 9.17 | | | $ | 7.45 | | | $ | 11.65 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.27 | (c) | | | 0.51 | (c) | | | 0.30 | (c) | | | 0.07 | | | | 0.04 | | | | 0.04 | |
Net realized and unrealized gain/(loss) on investments | | | 0.54 | | | | 0.39 | | | | 0.12 | | | | 1.16 | | | | 1.73 | | | | (4.20 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.81 | | | | 0.90 | | | | 0.42 | | | | 1.23 | | | | 1.77 | | | | (4.16 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.24 | ) | | | (0.48 | ) | | | (0.38 | ) | | | (0.06 | ) | | | (0.05 | ) | | | (0.04 | ) |
Tax return of capital | | | — | | | | (0.03 | ) | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.24 | ) | | | (0.51 | ) | | | (0.38 | ) | | | (0.06 | ) | | | (0.05 | ) | | | (0.04 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.57 | | | | 0.39 | | | | 0.04 | | | | 1.17 | | | | 1.72 | | | | (4.20 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 11.34 | | | $ | 10.77 | | | $ | 10.38 | | | $ | 10.34 | | | $ | 9.17 | | | $ | 7.45 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(d) | | | 7.49 | %(e) | | | 8.78 | % | | | 4.09 | % | | | 13.45 | % | | | 23.78 | % | | | (35.70 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 11,530 | | | $ | 10,451 | | | $ | 9,369 | | | $ | 15,266 | | | $ | 13,761 | | | $ | 8,102 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 4.72 | %(f) | | | 4.71 | % | | | 2.83 | % | | | 0.75 | % | | | 0.64 | % | | | 0.44 | % |
Operating expenses including reimbursement/waiver | | | 1.42 | %(f)(g) | | | 1.42 | %(h) | | | 1.49 | % | | | 1.49 | % | | | 1.49 | % | | | 1.44 | %(i) |
Operating expenses excluding reimbursement/waiver | | | 1.85 | %(f) | | | 1.93 | % | | | 1.87 | % | | | 1.85 | % | | | 2.01 | % | | | 1.73 | % |
Portfolio Turnover Rate | | | 95 | %(e) | | | 53 | % | | | 101 | % | | | 73 | % | | | 182 | % | | | 89 | % |
(a) Prior to February 20, 2013 the Forward Global Dividend Fund was known as the Forward Large Cap Dividend Fund.
(b) Prior to November 1, 2011, the Forward Large Cap Dividend Fund was known as the Forward Large Cap Equity Fund.
(c) Per share amounts are based upon average shares outstanding.
(d) Total return does not reflect the effect of sales charges.
(e) Not Annualized.
(f) Annualized.
(g) Effective May 1, 2013, the net expense limitation changed from 1.39% to 1.49%.
(h) Effective May 1, 2012, the net expense limitation changed from 1.49% to 1.39%.
(i) Effective May 1, 2008, the net expense limitation changed from 1.34% to 1.49%.
| | | | |
| See Notes to Financial Statements | | 139 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward International Dividend Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months
Ended
June 30, 2013
(unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(a) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 9.12 | | | $ | 7.86 | | | $ | 9.49 | | | $ | 8.48 | | | $ | 8.63 | | | $ | 19.40 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.25 | (c) | | | 0.60 | (c) | | | 0.47 | (c) | | | 0.20 | (c) | | | 0.27 | (b)(c) | | | 0.66 | |
Net realized and unrealized gain/(loss) on investments | | | (0.03 | ) | | | 1.07 | | | | (1.61 | ) | | | 1.32 | | | | 2.82 | | | | (11.00 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.22 | | | | 1.67 | | | | (1.14 | ) | | | 1.52 | | | | 3.09 | | | | (10.34 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.19 | ) | | | (0.41 | ) | | | (0.49 | ) | | | (0.51 | ) | | | (3.24 | ) | | | (0.12 | ) |
From capital gains | | | — | | | | — | | | | — | | | | — | | | | — | | | | (0.31 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.19 | ) | | | (0.41 | ) | | | (0.49 | ) | | | (0.51 | ) | | | (3.24 | ) | | | (0.43 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.03 | | | | 1.26 | | | | (1.63 | ) | | | 1.01 | | | | (0.15 | ) | | | (10.77 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 9.15 | | | $ | 9.12 | | | $ | 7.86 | | | $ | 9.49 | | | $ | 8.48 | | | $ | 8.63 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 2.43 | %(d) | | | 21.54 | % | | | (12.45 | )% | | | 17.97 | % | | | 35.88 | % | | | (53.22 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 104,544 | | | $ | 48,875 | | | $ | 3,170 | | | $ | 4,100 | | | $ | 4,954 | | | $ | 12,494 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 5.25 | %(e) | | | 7.01 | % | | | 5.26 | % | | | 2.31 | % | | | 2.97 | % | | | 2.32 | % |
Operating expenses including reimbursement/waiver | | | 1.34 | %(e) | | | 1.36 | %(f) | | | 1.49 | % | | | 1.51 | %(g) | | | 1.34 | % | | | 1.30 | %(h) |
Operating expenses excluding reimbursement/waiver | | | 1.47 | %(e) | | | 1.69 | % | | | 2.81 | % | | | 3.92 | % | | | 1.81 | % | | | 1.70 | % |
Ratios to Average Net Assets (including interest expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 5.22 | %(e) | | | n/a | | | | n/a | | | | n/a | | | | n/a | | | | n/a | |
Operating expenses including reimbursement/waiver | | | 1.37 | %(e) | | | n/a | | | | n/a | | | | n/a | | | | n/a | | | | n/a | |
Operating expenses excluding reimbursement/waiver | | | 1.49 | %(e) | | | n/a | | | | n/a | | | | n/a | | | | n/a | | | | n/a | |
Portfolio Turnover Rate | | | 55 | %(d) | | | 92 | % | | | 93 | % | | | 113 | % | | | 73 | % | | | 94 | % |
(a) Prior to May 1, 2010, the Forward International Dividend Fund was known as the Forward International Equity Fund.
(b) The amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and redemptions of Fund shares in relation to income earned and/or fluctuating market value of the investments of the Fund.
(c) Per share amounts are based upon average shares outstanding.
(d) Not Annualized.
(e) Annualized.
(f) Effective May 1, 2012, the net expense limitation changed from 1.49% to 1.34%.
(g) Effective May 1, 2010, the net expense limitation changed from 1.34% to 1.60%. Effective December 1, 2010, the net expense limitation changed from 1.60% to 1.49%.
(h) Effective May 1, 2008, the net expense limitation changed from 1.24% to 1.34%.
| | | | |
| June 30, 2013 | | 140 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward International Dividend Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months
Ended
June 30, 2013
(unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(a) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 7.70 | | | $ | 6.70 | | | $ | 8.12 | | | $ | 7.23 | | | $ | 8.62 | | | $ | 19.41 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.21 | (c) | | | 0.57 | (c) | | | 0.44 | (c) | | | 0.21 | (c) | | | 0.29 | (b)(c) | | | 0.43 | |
Net realized and unrealized gain/(loss) on investments | | | (0.01 | ) | | | 0.86 | | | | (1.37 | ) | | | 1.11 | | | | 2.79 | | | | (10.76 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.20 | | | | 1.43 | | | | (0.93 | ) | | | 1.32 | | | | 3.08 | | | | (10.33 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.20 | ) | | | (0.43 | ) | | | (0.49 | ) | | | (0.43 | ) | | | (4.47 | ) | | | (0.15 | ) |
From capital gains | | | — | | | | — | | | | — | | | | — | | | | — | | | | (0.31 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.20 | ) | | | (0.43 | ) | | | (0.49 | ) | | | (0.43 | ) | | | (4.47 | ) | | | (0.46 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.00 | | | | 1.00 | | | | (1.42 | ) | | | 0.89 | | | | (1.39 | ) | | | (10.79 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 7.70 | | | $ | 7.70 | | | $ | 6.70 | | | $ | 8.12 | | | $ | 7.23 | | | $ | 8.62 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 2.54 | %(d) | | | 21.90 | % | | | (12.01 | )% | | | 18.30 | % | | | 35.84 | % | | | (53.12 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 89,344 | | | $ | 82,719 | | | $ | 5,705 | | | $ | 1,721 | | | $ | 283 | | | $ | 13,036 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 5.39 | %(e) | | | 7.78 | % | | | 5.88 | % | | | 2.86 | % | | | 3.12 | % | | | 2.82 | % |
Operating expenses including reimbursement/waiver | | | 0.99 | %(e) | | | 1.01 | %(f) | | | 1.14 | % | | | 1.16 | %(g) | | | 0.99 | % | | | 0.99 | % |
Operating expenses excluding reimbursement/waiver | | | 1.11 | %(e) | | | 1.33 | % | | | 2.45 | % | | | 3.54 | % | | | 1.39 | % | | | 1.42 | % |
Ratios to Average Net Assets (including interest expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 5.36 | %(e) | | | n/a | | | | n/a | | | | n/a | | | | n/a | | | | n/a | |
Operating expenses including reimbursement/waiver | | | 1.02 | %(e) | | | n/a | | | | n/a | | | | n/a | | | | n/a | | | | n/a | |
Operating expenses excluding reimbursement/waiver | | | 1.14 | %(e) | | | n/a | | | | n/a | | | | n/a | | | | n/a | | | | n/a | |
Portfolio Turnover Rate | | | 55 | %(d) | | | 92 | % | | | 93 | % | | | 113 | % | | | 73 | % | | | 94 | % |
(a) Prior to May 1, 2010, the Forward International Dividend Fund was known as the Forward International Equity Fund.
(b) The amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and redemptions of Fund shares in relation to income earned and/or fluctuating market value of the investments of the Fund.
(c) Per share amounts are based upon average shares outstanding.
(d) Not Annualized.
(e) Annualized.
(f) Effective May 1, 2012, the net expense limitation changed from 1.14% to 0.99%.
(g) Effective May 1, 2010, the net expense limitation changed from 0.99% to 1.25%. Effective December 1, 2010, the net expense limitation changed from 1.25% to 1.14%.
| | | | |
| See Notes to Financial Statements | | 141 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward International Dividend Fund
| | | | |
| | | Class A | |
| | | Period Ended
June 30,
2013(a) | |
Net Asset Value, Beginning of Period | | $ | 9.95 | |
Income/(Loss) from Operations: | | | | |
Net investment income(b) | | | 0.09 | |
Net realized and unrealized loss on investments | | | (0.81 | ) |
| | | | |
Total from Investment Operations | | | (0.72 | ) |
| | | | |
Less Distributions: | | | | |
From investment income | | | (0.08 | ) |
| | | | |
Total Distributions | | | (0.08 | ) |
| | | | |
Net Decrease in Net Asset Value | | | (0.80 | ) |
| | | | |
Net Asset Value, End of Period | | $ | 9.15 | |
| | | | |
Total Return(c) | | | (7.27 | )%(d) |
Ratios/Supplemental Data: | | | | |
Net assets, End of Period (in 000s) | | $ | 1,654 | |
Ratios to Average Net Assets (excluding interest expense): | | | | |
Net investment income including reimbursement/waiver | | | 5.48 | %(e) |
Operating expenses including reimbursement/waiver | | | 1.49 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 1.60 | %(e) |
Ratios to Average Net Assets (including interest expense): | | | | |
Net investment income including reimbursement/waiver | | | 5.46 | %(e) |
Operating expenses including reimbursement/waiver | | | 1.52 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 1.63 | %(e) |
Portfolio Turnover Rate | | | 55 | %(d)(f) |
(a) The Fund began offering Class A shares on May 1, 2013.
(b) Per share amounts are based upon average shares outstanding.
(c) Total return does not reflect the effect of sales charges.
(d) Not Annualized.
(e) Annualized.
(f) Portfolio turnover rate is calculated at the fund level and represents the six months ended June 30, 2013.
| | | | |
| June 30, 2013 | | 142 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward International Dividend Fund
| | | | | | | | |
| | | Class C | |
| | | Six Months
Ended
June 30, 2013
(Unaudited) | | | Period Ended
December 31,
2012(a) | |
Net Asset Value, Beginning of Period | | $ | 9.11 | | | $ | 8.31 | |
Income/(Loss) from Operations: | | | | | | | | |
Net investment income(b) | | | 0.23 | | | | 0.21 | |
Net realized and unrealized gain/(loss) on investments | | | (0.05 | ) | | | 0.83 | |
| | | | | | | | |
Total from Investment Operations | | | 0.18 | | | | 1.04 | |
| | | | | | | | |
Less Distributions: | | | | | | | | |
From investment income | | | (0.16 | ) | | | (0.24 | ) |
| | | | | | | | |
Total Distributions | | | (0.16 | ) | | | (0.24 | ) |
| | | | | | | | |
Net Increase in Net Asset Value | | | 0.02 | | | | 0.80 | |
| | | | | | | | |
Net Asset Value, End of Period | | $ | 9.13 | | | $ | 9.11 | |
| | | | | | | | |
Total Return(c) | | | 2.06 | %(d) | | | 12.56 | %(d) |
Ratios/Supplemental Data: | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 3,250 | | | $ | 879 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | |
Net investment income including reimbursement/waiver | | | 4.98 | %(e) | | | 5.90 | %(e) |
Operating expenses including reimbursement/waiver | | | 1.94 | %(e) | | | 1.94 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 2.07 | %(e) | | | 2.30 | %(e) |
Ratios to Average Net Assets (including interest expense): | | | | | | | | |
Net investment income including reimbursement/waiver | | | 4.96 | %(e) | | | n/a | |
Operating expenses including reimbursement/waiver | | | 1.97 | %(e) | | | n/a | |
Operating expenses excluding reimbursement/waiver | | | 2.10 | %(e) | | | n/a | |
Portfolio Turnover Rate | | | 55 | %(d) | | | 92 | %(f) |
(a) The Fund began offering Class C shares on July 31, 2012.
(b) Per share amounts are based upon average shares outstanding.
(c) Total Return does not reflect the effect of sales charges.
(d) Not Annualized.
(e) Annualized.
(f) Portfolio turnover rate is calculated at the Fund level and represents the year ended December 31, 2012.
| | | | |
| See Notes to Financial Statements | | 143 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward International Dividend Fund
| | | | | | | | | | | | |
| | | Advisor Class | |
| | | Six Months
Ended
June 30, 2013
(Unaudited)(a) | | | Year Ended
December 31,
2012 | | | Period Ended
December 31,
2011(b) | |
Net Asset Value, Beginning of Period | | $ | 7.70 | | | $ | 6.70 | | | $ | 8.56 | |
Income/(Loss) from Operations: | | | | | | | | | | | | |
Net investment income(c) | | | 0.22 | | | | 0.61 | | | | 0.25 | |
Net realized and unrealized gain/(loss) on investments | | | (0.02 | ) | | | 0.82 | | | | (1.64 | ) |
| | | | | | | | | | | | |
Total from Investment Operations | | | 0.20 | | | | 1.43 | | | | (1.39 | ) |
| | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | |
From investment income | | | (0.20 | ) | | | (0.43) | | | | (0.47 | ) |
| | | | | | | | | | | | |
Total Distributions | | | (0.20 | ) | | | (0.43 | ) | | | (0.47 | ) |
| | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.00 | | | | 1.00 | | | | (1.86 | ) |
| | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 7.70 | | | $ | 7.70 | | | $ | 6.70 | |
| | | | | | | | | | | | |
Total Return | | | 2.53 | %(d) | | | 21.90 | % | | | (16.68 | )%(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 38,371 | | | $ | 19,269 | | | $ | 22 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 5.65 | %(e) | | | 8.25 | % | | | 5.48 | %(e) |
Operating expenses including reimbursement/waiver | | | 1.01 | %(e)(f) | | | 0.99 | %(g) | | | 1.14 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 1.14 | %(e) | | | 1.32 | % | | | 2.50 | %(e) |
Ratios to Average Net Assets (including interest expense): | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 5.62 | %(e) | | | n/a | | | | n/a | |
Operating expenses including reimbursement/waiver | | | 1.04 | %(e)(f) | | | n/a | | | | n/a | |
Operating expenses excluding reimbursement/waiver | | | 1.16 | %(e) | | | n/a | | | | n/a | |
Portfolio Turnover Rate | | | 55 | %(d) | | | 92 | % | | | 93 | %(h) |
(a) Prior to May 1, 2013, the Forward International Dividend Fund Advisor Class was known as the Forward International Dividend Fund Class M.
(b) The Fund began offering Advisor Class Shares on May 2, 2011.
(c) Per share amounts are based upon average shares outstanding.
(d) Not Annualized.
(e) Annualized.
(f) Effective May 1, 2013, the net expense limitation changed from 0.99% to 1.04%.
(g) Effective May 1, 2012, the net expense limitation changed from 1.14% to 0.99%.
(h) Portfolio turnover rate is calculated at the Fund level and represents the year ended December 31, 2011.
| | | | |
| June 30, 2013 | | 144 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward International Small Companies Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months
Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 13.85 | | | $ | 11.57 | | | $ | 14.54 | | | $ | 12.15 | | | $ | 9.51 | | | $ | 18.04 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.07 | (a) | | | 0.08 | (a) | | | 0.09 | (a) | | | 0.10 | | | | 0.12 | | | | 0.15 | |
Net realized and unrealized gain/(loss) on investments | | | 0.71 | | | | 2.43 | | | | (2.93 | ) | | | 2.41 | | | | 2.63 | | | | (8.56 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.78 | | | | 2.51 | | | | (2.84 | ) | | | 2.51 | | | | 2.75 | | | | (8.41 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | — | | | | (0.23 | ) | | | (0.13 | ) | | | (0.12 | ) | | | (0.11 | ) | | | (0.12 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (0.23 | ) | | | (0.13 | ) | | | (0.12 | ) | | | (0.11 | ) | | | (0.12 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.78 | | | | 2.28 | | | | (2.97 | ) | | | 2.39 | | | | 2.64 | | | | (8.53 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 14.63 | | | $ | 13.85 | | | $ | 11.57 | | | $ | 14.54 | | | $ | 12.15 | | | $ | 9.51 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 5.63 | %(b) | | | 21.70 | % | | | (19.49 | )% | | | 20.69 | % | | | 28.89 | % | | | (46.60 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 35,515 | | | $ | 37,843 | | | $ | 51,814 | | | $ | 95,936 | | | $ | 101,110 | | | $ | 108,661 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment income including reimbursement/waiver/repayment of previously waived fees | | | 0.89 | %(c) | | | 0.66 | % | | | 0.65 | % | | | 0.60 | % | | | 0.72 | % | | | 0.91 | % |
Operating expenses including reimbursement/waiver/repayment of previously waived fees | | | 1.73 | %(c) | | | 1.70 | %(d) | | | 1.62 | % | | | 1.64 | % | | | 1.62 | % | | | 1.58 | %(e) |
Operating expenses excluding reimbursement/waiver | | | n/a | | | | n/a | | | | n/a | | | | n/a | | | | n/a | | | | 1.61 | % |
Portfolio Turnover Rate | | | 53 | %(b) | | | 109 | % | | | 79 | % | | | 82 | % | | | 114 | % | | | 95 | % |
(a) Per share amounts are based upon average shares outstanding.
(b) Not Annualized.
(c) Annualized.
(d) Affiliated management fee waiver represents less than 0.005%.
(e) Effective February 1, 2008, the Advisor agreed not to limit the expenses.
| | | | |
| See Notes to Financial Statements | | 145 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward International Small Companies Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended June 30, 2013 (Unaudited) | | | Year Ended December 31, 2012 | | | Year Ended December 31, 2011 | | | Year Ended December 31, 2010 | | | Year Ended December 31, 2009 | | | Year Ended December 31, 2008 | |
Net Asset Value, Beginning of Period | | $ | 13.84 | | | $ | 11.57 | | | $ | 14.55 | | | $ | 12.16 | | | $ | 9.52 | | | $ | 18.10 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.10 | (a) | | | 0.15 | (a) | | | 0.13 | (a) | | | 0.12 | | | | 0.12 | | | | 0.18 | |
Net realized and unrealized gain/(loss) on investments | | | 0.70 | | | | 2.40 | | | | (2.92 | ) | | | 2.44 | | | | 2.68 | | | | (8.58 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.80 | | | | 2.55 | | | | (2.79 | ) | | | 2.56 | | | | 2.80 | | | | (8.40 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | — | | | | (0.28 | ) | | | (0.19 | ) | | | (0.17 | ) | | | (0.16 | ) | | | (0.18 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (0.28 | ) | | | (0.19 | ) | | | (0.17 | ) | | | (0.16 | ) | | | (0.18 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.80 | | | | 2.27 | | | | (2.98 | ) | | | 2.39 | | | | 2.64 | | | | (8.58 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 14.64 | | | $ | 13.84 | | | $ | 11.57 | | | $ | 14.55 | | | $ | 12.16 | | | $ | 9.52 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 5.78 | %(b) | | | 22.03 | % | | | (19.18 | )% | | | 21.10 | % | | | 29.37 | % | | | (46.42 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 133,348 | | | $ | 107,578 | | | $ | 280,888 | | | $ | 436,307 | | | $ | 431,875 | | | $ | 329,966 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment income including reimbursement/waiver/repayment of previously waived fees | | | 1.39 | %(c) | | | 1.14 | % | | | 0.94 | % | | | 0.94 | % | | | 1.10 | % | | | 1.26 | % |
Operating expenses including reimbursement/waiver/repayment of previously waived fees | | | 1.38 | %(c) | | | 1.34 | %(d) | | | 1.27 | % | | | 1.27 | % | | | 1.25 | % | | | 1.23 | %(e) |
Operating expenses excluding reimbursement/waiver | | | n/a | | | | n/a | | | | n/a | | | | n/a | | | | n/a | | | | 1.26 | % |
Portfolio Turnover Rate | | | 53 | %(b) | | | 109 | % | | | 79 | % | | | 82 | % | | | 114 | % | | | 95 | % |
(a) Per share amounts are based upon average shares outstanding.
(b) Not Annualized.
(c) Annualized.
(d) Affiliated management fee waiver represents less than 0.005%.
(e) Effective February 1, 2008, the Advisor agreed not to limit the expenses.
| | | | |
| June 30, 2013 | | 146 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward International Small Companies Fund
| | | | | | | | | | | | | | | | |
| | | Advisor Class | |
| | | Six Months Ended June 30, 2013 (Unaudited)(a) | | | Year Ended December 31, 2012 | | | Year Ended December 31, 2011 | | | Period Ended December 31, 2010(b) | |
Net Asset Value, Beginning of Period | | $ | 13.84 | | | $ | 11.57 | | | $ | 14.55 | | | $ | 12.04 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | |
Net investment income | | | 0.09 | (c) | | | 0.17 | (c) | | | 0.15 | (c) | | | 0.13 | |
Net realized and unrealized gain/(loss) on investments | | | 0.71 | | | | 2.38 | | | | (2.94 | ) | | | 2.55 | |
| | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.80 | | | | 2.55 | | | | (2.79 | ) | | | 2.68 | |
| | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | |
From investment income | | | — | | | | (0.28 | ) | | | (0.19 | ) | | | (0.17 | ) |
| | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (0.28 | ) | | | (0.19 | ) | | | (0.17 | ) |
| | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.80 | | | | 2.27 | | | | (2.98 | ) | | | 2.51 | |
| | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 14.64 | | | $ | 13.84 | | | $ | 11.57 | | | $ | 14.55 | |
| | | | | | | | | | | | | | | | |
Total Return | | | 5.85 | %(d) | | | 22.08 | % | | | (19.18 | )% | | | 22.30 | %(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 3,625 | | | $ | 9,698 | | | $ | 59 | | | $ | 72 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | |
Net investment income | | | 1.22 | %(e) | | | 1.32 | % | | | 1.09 | % | | | 1.19 | %(e) |
Operating expenses | | | 1.38 | %(e) | | | 1.37 | %(f) | | | 1.27 | % | | | 1.29 | %(e) |
Portfolio Turnover Rate | | | 53 | %(d) | | | 109 | % | | | 79 | % | | | 82 | %(g) |
(a) Prior to May 1, 2013, the Forward International Small Companies Fund Advisor Class was known as the Forward International Small Companies Fund Class M.
(b) The Fund began offering Advisor Class shares on February 1, 2010.
(c) Per share amounts are based upon average shares outstanding.
(d) Not Annualized.
(e) Annualized.
(f) Affiliated management fee waiver represents less than 0.005%.
(g) Portfolio turnover rate is calculated at the Fund level and represents the year ended December 31, 2010.
| | | | |
| See Notes to Financial Statements | | 147 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Select EM Dividend Fund
| | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended June 30, 2013 (Unaudited) | | | Year Ended December 31, 2012 | | | Period Ended December 31, 2011(a) | |
Net Asset Value, Beginning of Period | | $ | 23.70 | | | $ | 19.50 | | | $ | 25.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | |
Net investment income(b) | | | 0.70 | | | | 1.23 | | | | 0.58 | |
Net realized and unrealized gain/(loss) on investments | | | (0.89 | ) | | | 4.07 | | | | (5.52 | ) |
| | | | | | | | | | | | |
Total from Investment Operations | | | (0.19 | ) | | | 5.30 | | | | (4.94 | ) |
| | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | |
From investment income | | | (0.58 | ) | | | (1.09 | ) | | | (0.56 | ) |
Tax return of capital | | | — | | | | (0.01 | ) | | | (0.00 | )(c) |
| | | | | | | | | | | | |
Total Distributions | | | (0.58 | ) | | | (1.10 | ) | | | (0.56 | ) |
| | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.77 | ) | | | 4.20 | | | | (5.50 | ) |
| | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 22.93 | | | $ | 23.70 | | | $ | 19.50 | |
| | | | | | | | | | | | |
Total Return | | | (0.86 | )%(d) | | | 27.81 | % | | | (19.87 | )%(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 19,012 | | | $ | 13,591 | | | $ | 1,026 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 5.78 | %(e) | | | 5.58 | % | | | 4.12 | %(e) |
Operating expenses including reimbursement/waiver | | | 1.77 | %(e)(f) | | | 1.79 | % | | | 1.79 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 2.04 | %(e) | | | 2.52 | % | | | 2.96 | %(e) |
Ratios to Average Net Assets (including interest expense): | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 5.69 | %(e) | | | 5.52 | % | | | 4.12 | %(e) |
Operating expenses including reimbursement/waiver | | | 1.86 | %(e)(f) | | | 1.85 | % | | | 1.79 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 2.13 | %(e) | | | 2.59 | % | | | 2.96 | %(e) |
Portfolio Turnover Rate | | | 79 | %(d) | | | 103 | % | | | 147 | %(d) |
(a) The Fund began offering Investor Class shares on May 2, 2011.
(b) Per share amounts are based upon average shares outstanding.
(c) Amount represents less than $0.01 per share.
(d) Not Annualized.
(e) Annualized.
(f) Effective May 1, 2013, the net expense limitation changed from 1.79% to 1.74%.
| | | | |
| June 30, 2013 | | 148 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Select EM Dividend Fund
| | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended June 30, 2013 (Unaudited) | | | Year Ended December 31, 2012 | | | Period Ended December 31, 2011(a) | |
Net Asset Value, Beginning of Period | | $ | 23.68 | | | $ | 19.48 | | | $ | 24.37 | |
Income/(Loss) from Operations: | | | | | | | | | | | | |
Net investment income(b) | | | 0.55 | | | | 1.43 | | | | 0.76 | |
Net realized and unrealized gain/(loss) on investments | | | (0.68 | ) | | | 3.97 | | | | (5.03 | ) |
| | | | | | | | | | | | |
Total from Investment Operations | | | (0.13 | ) | | | 5.40 | | | | (4.27 | ) |
| | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | |
From investment income | | | (0.62 | ) | | | (1.19 | ) | | | (0.62 | ) |
Tax return of capital | | | — | | | | (0.01 | ) | | | (0.00 | )(c) |
| | | | | | | | | | | | |
Total Distributions | | | (0.62 | ) | | | (1.20 | ) | | | (0.62 | ) |
| | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.75 | ) | | | 4.20 | | | | (4.89 | ) |
| | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 22.93 | | | $ | 23.68 | | | $ | 19.48 | |
| | | | | | | | | | | | |
Total Return | | | (0.71 | )%(d) | | | 28.38 | % | | | (17.60 | )%(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 20,927 | | | $ | 32,070 | | | $ | 4,244 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 4.58 | %(e) | | | 6.45 | % | | | 5.23 | %(e) |
Operating expenses including reimbursement/waiver | | | 1.39 | %(e) | | | 1.39 | % | | | 1.39 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 1.63 | %(e) | | | 1.99 | % | | | 2.19 | %(e) |
Ratios to Average Net Assets (including interest expense): | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 4.50 | %(e) | | | 6.38 | % | | | 5.23 | %(e) |
Operating expenses including reimbursement/waiver | | | 1.48 | %(e) | | | 1.45 | % | | | 1.39 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 1.72 | %(e) | | | 2.05 | % | | | 2.19 | %(e) |
Portfolio Turnover Rate | | | 79 | %(d) | | | 103 | % | | | 147 | %(f) |
(a) The Fund began offering Institutional Class shares on May 3, 2011.
(b) Per share amounts are based upon average shares outstanding.
(c) Amount represents less than $0.01 per share.
(d) Not Annualized.
(e) Annualized.
(f) Portfolio turnover rate is calculated at the Fund level and represents the period of May 2, 2011 (inception) through December 31, 2011.
| | | | |
| See Notes to Financial Statements | | 149 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Select EM Dividend Fund
| | | | | | | | | | | | |
| | | Class C | |
| | | Six Months Ended June 30, 2013 (Unaudited) | | | Year Ended December 31, 2012 | | | Period Ended December 31, 2011(a) | |
Net Asset Value, Beginning of Period | | $ | 23.69 | | | $ | 19.49 | | | $ | 25.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | |
Net investment income(b) | | | 0.59 | | | | 1.18 | | | | 0.53 | |
Net realized and unrealized gain/(loss) on investments | | | (0.85 | ) | | | 4.00 | | | | (5.57 | ) |
| | | | | | | | | | | | |
Total from Investment Operations | | | (0.26 | ) | | | 5.18 | | | | (5.04 | ) |
| | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | |
From investment income | | | (0.52 | ) | | | (0.97 | ) | | | (0.47 | ) |
Tax return of capital | | | — | | | | (0.01 | ) | | | (0.00 | )(c) |
| | | | | | | | | | | | |
Total Distributions | | | (0.52 | ) | | | (0.98 | ) | | | (0.47 | ) |
| | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.78 | ) | | | 4.20 | | | | (5.51 | ) |
| | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 22.91 | | | $ | 23.69 | | | $ | 19.49 | |
| | | | | | | | | | | | |
Total Return(d) | | | (1.21 | )%(e) | | | 27.14 | % | | | (20.20 | )%(e) |
Ratios/Supplemental Data: | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 1,423 | | | $ | 709 | | | $ | 526 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 4.91 | %(f) | | | 5.43 | % | | | 3.72 | %(f) |
Operating expenses including reimbursement/waiver | | | 2.37 | %(f)(g) | | | 2.39 | % | | | 2.39 | %(f) |
Operating expenses excluding reimbursement/waiver | | | 2.66 | %(f) | | | 3.42 | % | | | 3.42 | %(f) |
Ratios to Average Net Assets (including interest expense): | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 4.82 | %(f) | | | 5.36 | % | | | 3.72 | %(f) |
Operating expenses including reimbursement/waiver | | | 2.46 | %(f)(g) | | | 2.45 | % | | | 2.39 | %(f) |
Operating expenses excluding reimbursement/waiver | | | 2.75 | %(f) | | | 3.48 | % | | | 3.42 | %(f) |
Portfolio Turnover Rate | | | 79 | %(e) | | | 103 | % | | | 147 | %(e) |
(a) The Fund began offering Class C shares on May 2, 2011.
(b) Per share amounts are based upon average shares outstanding.
(c) Amount represents less than $0.01 per share.
(d) Total return does not reflect the effect of sales charges.
(e) Not Annualized.
(f) Annualized.
(g) Effective May 1, 2013, the net expense limitation changed from 2.39% to 2.34%.
| | | | |
| June 30, 2013 | | 150 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Select EM Dividend Fund
| | | | | | | | | | | | |
| | | Advisor Class | |
| | | Six Months Ended June 30, 2013 (Unaudited)(a) | | | Year Ended December 31, 2012 | | | Period Ended December 31, 2011(b) | |
Net Asset Value, Beginning of Period | | $ | 23.69 | | | $ | 19.48 | | | $ | 25.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | |
Net investment income(c) | | | 0.65 | | | | 1.40 | | | | 0.66 | |
Net realized and unrealized gain/(loss) on investments | | | (0.80 | ) | | | 4.01 | | | | (5.56 | ) |
| | | | | | | | | | | | |
Total from Investment Operations | | | (0.15 | ) | | | 5.41 | | | | (4.90 | ) |
| | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | |
From investment income | | | (0.62 | ) | | | (1.19 | ) | | | (0.62 | ) |
Tax return of capital | | | — | | | | (0.01 | ) | | | (0.00 | )(d) |
| | | | | | | | | | | | |
Total Distributions | | | (0.62 | ) | | | (1.20 | ) | | | (0.62 | ) |
| | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.77 | ) | | | 4.21 | | | | (5.52 | ) |
| | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 22.92 | | | $ | 23.69 | | | $ | 19.48 | |
| | | | | | | | | | | | |
Total Return | | | (0.71 | )%(e) | | | 28.41 | % | | | (19.66 | )%(e) |
Ratios/Supplemental Data: | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 1,124 | | | $ | 1,214 | | | $ | 610 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 5.42 | %(f) | | | 6.43 | % | | | 4.60 | %(f) |
Operating expenses including reimbursement/waiver | | | 1.39 | %(f)(g) | | | 1.39 | % | | | 1.39 | %(f) |
Operating expenses excluding reimbursement/waiver | | | 1.68 | %(f) | | | 2.41 | % | | | 2.47 | %(f) |
Ratios to Average Net Assets (including interest expense): | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 5.34 | %(f) | | | 6.37 | % | | | 4.60 | %(f) |
Operating expenses including reimbursement/waiver | | | 1.48 | %(f)(g) | | | 1.45 | % | | | 1.39 | %(f) |
Operating expenses excluding reimbursement/waiver | | | 1.77 | %(f) | | | 2.47 | % | | | 2.47 | %(f) |
Portfolio Turnover Rate | | | 79 | %(e) | | | 103 | % | | | 147 | %(e) |
(a) Prior to May 1, 2013, the Forward Select EM Dividend Fund Advisor Class was known as the Forward Select EM Dividend Fund Class M.
(b) The Fund began offering Advisor Class Shares on May 2, 2011.
(c) Per share amounts are based upon average shares outstanding.
(d) Amount represents less than $0.01 per share.
(e) Not Annualized.
(f) Annualized.
(g) Effective May 1, 2013, the net expense limitation changed from 1.39% to 1.44%.
| | | | |
| See Notes to Financial Statements | | 151 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Small Cap Equity Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended June 30, 2013 (Unaudited) | | | Year Ended December 31, 2012 | | | Year Ended December 31, 2011 | | | Year Ended December 31, 2010 | | | Year Ended December 31, 2009 | | | Year Ended December 31, 2008(a) | |
Net Asset Value, Beginning of Period | | $ | 15.98 | | | $ | 14.40 | | | $ | 16.71 | | | $ | 14.45 | | | $ | 11.98 | | | $ | 19.71 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment loss | | | (0.07 | )(b) | | | (0.04 | )(b) | | | (0.14 | )(b) | | | (0.41 | ) | | | (0.17 | ) | | | (0.11 | ) |
Net realized and unrealized gain/(loss) on investments | | | 3.25 | | | | 1.62 | | | | (2.17 | ) | | | 2.67 | | | | 2.64 | | | | (7.58 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 3.18 | | | | 1.58 | | | | (2.31 | ) | | | 2.26 | | | | 2.47 | | | | (7.69 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | — | | | | — | | | | — | | | | — | | | | — | | | | (0.04 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | — | | | | — | | | | — | | | | — | | | | (0.04 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 3.18 | | | | 1.58 | | | | (2.31 | ) | | | 2.26 | | | | 2.47 | | | | (7.73 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 19.16 | | | $ | 15.98 | | | $ | 14.40 | | | $ | 16.71 | | | $ | 14.45 | | | $ | 11.98 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 19.90 | %(c) | | | 10.97 | % | | | (13.82 | )% | | | 15.64 | % | | | 20.62 | % | | | (39.02 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 24,845 | | | $ | 23,374 | | | $ | 29,976 | | | $ | 110,293 | | | $ | 194,146 | | | $ | 202,874 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment loss including reimbursement/waiver/recoupment of past waived fees by advisor | | | (0.78 | )%(d) | | | (0.27 | )% | | | (0.88 | )% | | | (1.13 | )% | | | (1.05 | )% | | | (0.60 | )% |
Operating expenses including reimbursement/waiver/recoupment of past waived fees by advisor | | | 1.41 | %(d)(e)(f) | | | 1.35 | %(e)(g) | | | 1.34 | %(h) | | | 1.69 | % | | | 1.70 | % | | | 1.65 | % |
Operating expenses excluding reimbursement/waiver | | | 1.76 | %(d) | | | 1.65 | % | | | 1.60 | % | | | n/a | | | | n/a | | | | n/a | |
Portfolio Turnover Rate | | | 66 | %(c) | | | 136 | % | | | 234 | % | | | 162 | % | | | 203 | % | | | 313 | % |
(a) Prior to May 1, 2008, the Forward Small Cap Equity Fund was known as the Forward Hoover Small Cap Equity Fund.
(b) Per share amounts are based upon average shares outstanding.
(c) Not Annualized.
(d) Annualized.
(e) Affiliated management fee waiver represents less than 0.005%.
(f) Effective May 1, 2013, the net expense limitation changed from 1.39% to 1.44%.
(g) Effective May 1, 2012, the net expense limitation changed from 1.29% to 1.39%.
(h) Effective February 1, 2011, the Advisor agreed to limit expenses at 1.29%.
| | | | |
| June 30, 2013 | | 152 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Small Cap Equity Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended June 30, 2013 (Unaudited) | | | Year Ended December 31, 2012 | | | Year Ended December 31, 2011 | | | Year Ended December 31, 2010 | | | Year Ended December 31, 2009 | | | Year Ended December 31, 2008(a) | |
Net Asset Value, Beginning of Period | | $ | 16.77 | | | $ | 15.07 | | | $ | 17.37 | | | $ | 14.98 | | | $ | 12.37 | | | $ | 20.27 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment loss | | | (0.04 | )(b) | | | (0.02 | )(b) | | | (0.11 | )(b) | | | (0.11 | ) | | | (0.12 | ) | | | (0.07 | ) |
Net realized and unrealized gain/(loss) on investments | | | 3.40 | | | | 1.72 | | | | (2.19 | ) | | | 2.50 | | | | 2.73 | | | | (7.79 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 3.36 | | | | 1.70 | | | | (2.30 | )�� | | | 2.39 | | | | 2.61 | | | | (7.86 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | — | | | | — | | | | — | | | | — | | | | — | | | | (0.04 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | — | | | | — | | | | — | | | | — | | | | (0.04 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 3.36 | | | | 1.70 | | | | (2.30 | ) | | | 2.39 | | | | 2.61 | | | | (7.90 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 20.13 | | | $ | 16.77 | | | $ | 15.07 | | | $ | 17.37 | | | $ | 14.98 | | | $ | 12.37 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 19.96 | %(c) | | | 11.35 | % | | | (13.24 | )% | | | 15.96 | % | | | 21.10 | % | | | (38.78 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 7,244 | | | $ | 7,397 | | | $ | 17,812 | | | $ | 229,643 | | | $ | 221,890 | | | $ | 141,442 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment loss including reimbursement/waiver/recoupment of past waived fees by advisor | | | (0.48 | )%(d) | | | (0.11 | )% | | | (0.62 | )% | | | (0.82 | )% | | | (0.72 | )% | | | (0.25 | )% |
Operating expenses including reimbursement/waiver/recoupment of past waived fees by advisor | | | 1.11 | %(d)(e)(f) | | | 1.04 | %(e)(g) | | | 1.03 | %(h) | | | 1.38 | % | | | 1.36 | % | | | 1.30 | % |
Operating expenses excluding reimbursement/waiver | | | 1.45 | %(d) | | | 1.35 | % | | | 1.32 | % | | | n/a | | | | n/a | | | | n/a | |
Portfolio Turnover Rate | | | 66 | %(c) | | | 136 | % | | | 234 | % | | | 162 | % | | | 203 | % | | | 313 | % |
(a) Prior to May 1, 2008, the Forward Small Cap Equity Fund was known as the Forward Hoover Small Cap Equity Fund.
(b) Per share amounts are based upon average shares outstanding.
(c) Not Annualized.
(d) Annualized.
(e) Affiliated management fee waiver represents less than 0.005%.
(f) Effective May 1, 2013, the net expense limitation changed from 1.09% to 1.14%.
(g) Effective May 1, 2012, the net expense limitation changed from 0.99% to 1.09%.
(h) Effective February 1, 2011, the Advisor agreed to limit expenses at 0.99%.
| | | | |
| See Notes to Financial Statements | | 153 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Small Cap Equity Fund
| | | | | | | | | | | | | | | | |
| | | Advisor Class | |
| | | Six Months
Ended
June 30, 2013 (Unaudited)(a) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Period Ended
December 31,
2010(b) | |
Net Asset Value, Beginning of Period | | $ | 16.70 | | | $ | 15.01 | | | $ | 17.37 | | | $ | 14.30 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | | (0.05 | )(c) | | | 0.03 | (c) | | | (0.09 | )(c) | | | (0.07 | ) |
Net realized and unrealized gain/(loss) on investments | | | 3.40 | | | | 1.66 | | | | (2.27 | ) | | | 3.14 | |
| | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 3.35 | | | | 1.69 | | | | (2.36 | ) | | | 3.07 | |
| | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 3.35 | | | | 1.69 | | | | (2.36 | ) | | | 3.07 | |
| | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 20.05 | | | $ | 16.70 | | | $ | 15.01 | | | $ | 17.37 | |
| | | | | | | | | | | | | | | | |
Total Return | | | 19.99 | %(d) | | | 11.33 | % | | | (13.59 | )% | | | 21.47 | %(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 3,037 | | | $ | 2,685 | | | $ | 154 | | | $ | 103 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | |
Net investment income/(loss) including reimbursement/waiver | | | (0.50 | )%(e) | | | 0.21 | % | | | (0.57 | )% | | | (0.80 | )%(e) |
Operating expenses including reimbursement/waiver | | | 1.12 | %(e)(f)(g) | | | 1.05 | %(f)(h) | | | 1.03 | %(i) | | | 1.41 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 1.48 | %(e) | | | 1.36 | % | | | 1.15 | % | | | n/a | |
Portfolio Turnover Rate | | | 66 | %(d) | | | 136 | % | | | 234 | % | | | 162 | %(j) |
(a) Prior to May 1, 2013, the Forward Small Cap Equity Fund Advisor Class was known as the Forward Small Cap Equity Fund Class M.
(b) The Fund began offering Advisor Class shares on February 1, 2010.
(c) Per share amounts are based upon average shares outstanding.
(d) Not Annualized.
(e) Annualized.
(f) Affiliated management fee waiver represents less than 0.005%.
(g) Effective May 1, 2013, the net expense limitation changed from 1.09% to 1.19%.
(h) Effective May 1, 2012, the net expense limitation changed from 0.99% to 1.09%.
(i) Effective February 1, 2011, the Advisor agreed to limit expenses at 0.99%.
(j) Portfolio turnover rate is calculated at the Fund level and represents the year ended December 31, 2010.
| | | | |
| June 30, 2013 | | 154 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Tactical Enhanced Fund
| | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended
June 30,
2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 (a) | |
Net Asset Value, Beginning of Period | | $ | 25.72 | | | $ | 24.04 | | | $ | 25.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | |
Net investment loss(b) | | | (0.23 | ) | | | (0.36 | ) | | | (0.66 | ) |
Net realized and unrealized gain/(loss) on investments | | | 0.57 | | | | 3.33 | | | | (0.25 | ) |
| | | | | | | | | | | | |
Total from Investment Operations | | | 0.34 | | | | 2.97 | | | | (0.91 | ) |
| | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | |
From capital gains | | | — | | | | (1.29 | ) | | | (0.05 | ) |
| | | | | | | | | | | | |
Total Distributions | | | — | | | | (1.29 | ) | | | (0.05 | ) |
| | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.34 | | | | 1.68 | | | | (0.96 | ) |
| | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 26.06 | | | $ | 25.72 | | | $ | 24.04 | |
| | | | | | | | | | | | |
Total Return | | | 1.32 | %(c) | | | 12.45 | % | | | (3.65 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 22,708 | | | $ | 16,949 | | | $ | 12,098 | |
Ratios to Average Net Assets: | | | | | | | | | | | | |
Net investment loss including reimbursement/waiver | | | (1.74 | )%(d) | | | (1.41 | )% | | | (2.69 | )% |
Operating expenses including reimbursement/waiver | | | 1.82 | %(d) | | | 2.25 | %(e) | | | 2.71 | %(f) |
Operating expenses excluding reimbursement/waiver | | | 1.85 | %(d) | | | 2.46 | % | | | 2.91 | % |
Portfolio Turnover Rate | | | 2,959 | %(c) | | | 6,025 | % | | | 0 | % |
(a) The Fund began offering Investor Class shares on January 3, 2011.
(b) Per share amounts are based upon average shares outstanding.
(c) Not Annualized.
(d) Annualized.
(e) Effective November 1, 2012, the net expense limitation changed from 2.34% to 1.84%.
(f) Effective October 1, 2011, the net expense limitation changed from 2.84% to 2.34%.
| | | | |
| See Notes to Financial Statements | | 155 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Tactical Enhanced Fund
| | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended June 30,
2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(a) | |
Net Asset Value, Beginning of Period | | $ | 25.83 | | | $ | 24.12 | | | $ | 25.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | |
Net investment loss(b) | | | (0.18 | ) | | | (0.23 | ) | | | (0.57 | ) |
Net realized and unrealized gain/(loss) on investments | | | 0.57 | | | | 3.30 | | | | (0.26 | ) |
| | | | | | | | | | | | |
Total from Investment Operations | | | 0.39 | | | | 3.07 | | | | (0.83 | ) |
| | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | |
From capital gains | | | — | | | | (1.36 | ) | | | (0.05 | ) |
| | | | | | | | | | | | |
Total Distributions | | | — | | | | (1.36 | ) | | | (0.05 | ) |
| | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.39 | | | | 1.71 | | | | (0.88 | ) |
| | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 26.22 | | | $ | 25.83 | | | $ | 24.12 | |
| | | | | | | | | | | | |
Total Return | | | 1.51 | %(c) | | | 12.79 | % | | | (3.29 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 33,751 | | | $ | 17,804 | | | $ | 11,816 | |
Ratios to Average Net Assets: | | | | | | | | | | | | |
Net investment loss including reimbursement/waiver | | | (1.38 | )%(d) | | | (0.89 | )% | | | (2.33 | )% |
Operating expenses including reimbursement/waiver | | | 1.47 | %(d) | | | 1.88 | %(e) | | | 2.36 | %(f) |
Operating expenses excluding reimbursement/waiver | | | 1.50 | %(d) | | | 2.11 | % | | | 2.71 | % |
Portfolio Turnover Rate | | | 2,959 | %(c) | | | 6,025 | % | | | 0 | % |
(a) The Fund began offering Institutional Class shares on January 3, 2011.
(b) Per share amounts are based upon average shares outstanding.
(c) Not Annualized.
(d) Annualized.
(e) Effective November 1, 2012, the net expense limitation changed from 1.99% to 1.49%.
(f) Effective October 1, 2011, the net expense limitation changed from 2.49% to 1.99%.
| | | | |
| June 30, 2013 | | 156 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Tactical Enhanced Fund
| | | | | | | | | | | | |
| | | Class A | |
| | | Six Months Ended June 30,
2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(a) | |
Net Asset Value, Beginning of Period | | $ | 25.66 | | | $ | 23.98 | | | $ | 25.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | |
Net investment loss(b) | | | (0.25 | ) | | | (0.41 | ) | | | (0.69 | ) |
Net realized and unrealized gain/(loss) on investments | | | 0.57 | | | | 3.34 | | | | (0.28 | ) |
| | | | | | | | | | | | |
Total from Investment Operations | | | 0.32 | | | | 2.93 | | | | (0.97 | ) |
| | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | |
From capital gains | | | — | | | | (1.25 | ) | | | (0.05 | ) |
| | | | | | | | | | | | |
Total Distributions | | | — | | | | (1.25 | ) | | | (0.05 | ) |
| | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.32 | | | | 1.68 | | | | (1.02 | ) |
| | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 25.98 | | | $ | 25.66 | | | $ | 23.98 | |
| | | | | | | | | | | | |
Total Return(c) | | | 1.25 | %(d) | | | 12.31 | % | | | (3.90 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 3,903 | | | $ | 3,602 | | | $ | 2,578 | |
Ratios to Average Net Assets: | | | | | | | | | | | | |
Net investment loss including reimbursement/waiver | | | (1.89 | )%(e) | | | (1.61 | )% | | | (2.83 | )% |
Operating expenses including reimbursement/waiver | | | 1.97 | %(e) | | | 2.40 | %(f) | | | 2.86 | %(g) |
Operating expenses excluding reimbursement/waiver | | | 2.00 | %(e) | | | 2.61 | % | | | 3.10 | % |
Portfolio Turnover Rate | | | 2,959 | %(d) | | | 6,025 | % | | | 0 | % |
(a) The Fund began offering Class A shares on January 3, 2011.
(b) Per share amounts are based upon average shares outstanding.
(c) Total return does not reflect the effect of sales charges.
(d) Not Annualized.
(e) Annualized.
(f) Effective November 1, 2012, the net expense limitation changed from 2.49% to 1.99%.
(g) Effective October 1, 2011, the net expense limitation changed from 2.99% to 2.49%.
| | | | |
| See Notes to Financial Statements | | 157 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Tactical Enhanced Fund
| | | | | | | | | | | | |
| | | Class C | |
| | | Six Months Ended June 30,
2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(a) | |
Net Asset Value, Beginning of Period | | $ | 25.51 | | | $ | 23.88 | | | $ | 25.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | |
Net investment loss(b) | | | (0.30 | ) | | | (0.51 | ) | | | (0.81 | ) |
Net realized and unrealized gain/(loss) on investments | | | 0.56 | | | | 3.30 | | | | (0.26 | ) |
| | | | | | | | | | | | |
Total from Investment Operations | | | 0.26 | | | | 2.79 | | | | (1.07 | ) |
| | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | |
From capital gains | | | — | | | | (1.16 | ) | | | (0.05 | ) |
| | | | | | | | | | | | |
Total Distributions | | | — | | | | (1.16 | ) | | | (0.05 | ) |
| | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.26 | | | | 1.63 | | | | (1.12 | ) |
| | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 25.77 | | | $ | 25.51 | | | $ | 23.88 | |
| | | | | | | | | | | | |
Total Return(c) | | | 1.02 | %(d) | | | 11.77 | % | | | (4.29 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 2,286 | | | $ | 3,247 | | | $ | 2,163 | |
Ratios to Average Net Assets: | | | | | | | | | | | | |
Net investment loss including reimbursement/waiver | | | (2.34 | )%(e) | | | (2.00 | )% | | | (3.29 | )% |
Operating expenses including reimbursement/waiver | | | 2.42 | %(e) | | | 2.84 | %(f) | | | 3.31 | %(g) |
Operating expenses excluding reimbursement/waiver | | | 2.45 | %(e) | | | 3.06 | % | | | 3.53 | % |
Portfolio Turnover Rate | | | 2,959 | %(d) | | | 6,025 | % | | | 0 | % |
(a) The Fund began offering Class C shares on January 3, 2011.
(b) Per share amounts are based upon average shares outstanding.
(c) Total return does not reflect the effect of sales charges.
(d) Not Annualized.
(e) Annualized.
(f) Effective November 1, 2012, the net expense limitation changed from 2.94% to 2.44%.
(g) Effective October 1, 2011, the next expense limitation change from 3.44% to 2.94%.
| | | | |
| June 30, 2013 | | 158 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Tactical Enhanced Fund
| | | | | | | | | | | | |
| | | Advisor Class | |
| | | Six Months Ended June 30,
2013
(Unaudited)(a) | | | Year Ended
December 31,
2012 | | | Period Ended
December 31,
2011(b) | |
Net Asset Value, Beginning of Period | | $ | 25.79 | | | $ | 24.12 | | | $ | 25.56 | |
Income/(Loss) from Operations: | | | | | | | | | | | | |
Net investment loss(c) | | | (0.18 | ) | | | (0.02 | ) | | | (0.40 | ) |
Net realized and unrealized gain/(loss) on investments | | | 0.58 | | | | 3.09 | | | | (0.99 | ) |
| | | | | | | | | | | | |
Total from Investment Operations | | | 0.40 | | | | 3.07 | | | | (1.39 | ) |
| | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | |
From capital gains | | | — | | | | (1.40 | ) | | | (0.05 | ) |
| | | | | | | | | | | | |
Total Distributions | | | — | | | | (1.40 | ) | | | (0.05 | ) |
| | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.40 | | | | 1.67 | | | | (1.44 | ) |
| | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 26.19 | | | $ | 25.79 | | | $ | 24.12 | |
| | | | | | | | | | | | |
Total Return | | | 1.55 | %(d) | | | 12.78 | % | | | (5.41 | )%(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 3,812 | | | $ | 91 | | | $ | 84 | |
Ratios to Average Net Assets: | | | | | | | | | | | | |
Net investment loss including reimbursement/waiver | | | (1.41 | )%(e) | | | (0.09 | )% | | | (2.28 | )%(e) |
Operating expenses including reimbursement/waiver | | | 1.49 | %(e)(f) | | | 1.79 | %(g) | | | 2.31 | %(e)(h) |
Operating expenses excluding reimbursement/waiver | | | 1.54 | %(e) | | | 1.98 | % | | | 2.38 | %(e) |
Portfolio Turnover Rate | | | 2,959 | %(d) | | | 6,025 | % | | | 0 | %(i) |
(a) Prior to May 1, 2013, the Forward Tactical Enhanced Fund Advisor Class was known as the Forward Tactical Enhanced Fund Class M.
(b) The Fund began offering Advisor Class shares on April 15, 2011.
(c) Per share amounts are based upon average shares outstanding.
(d) Not Annualized.
(e) Annualized.
(f) Effective May 1, 2013, the net expense limitation changed from 1.49% to 1.54%.
(g) Effective November 1, 2012, the net expense limitation changed from 1.99% to 1.49%.
(g) Effective October 1, 2011, the net expense limitation changed from 2.49% to 1.99%.
(i) Portfolio turnover rate is calculated at the Fund level and represents the year ended December 31, 2011.
| | | | |
| See Notes to Financial Statements | | 159 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Tactical Growth Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended June 30,
2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | | | Period Ended
December 31,
2009(a) | |
Net Asset Value, Beginning of Period | | $ | 25.06 | | | $ | 24.73 | | | $ | 26.26 | | | $ | 25.69 | | | $ | 25.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment loss | | | (0.22 | )(b) | | | (0.39 | )(b) | | | (0.38 | )(b) | | | (0.24 | ) | | | (0.05 | ) |
Net realized and unrealized gain/(loss) on investments | | | 1.56 | | | | 1.57 | | | | (1.02 | ) | | | 0.81 | | | | 0.74 | |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 1.34 | | | | 1.18 | | | | (1.40 | ) | | | 0.57 | | | | 0.69 | |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
From capital gains | | | — | | | | (0.85 | ) | | | (0.13 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (0.85 | ) | | | (0.13 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 1.34 | | | | 0.33 | | | | (1.53 | ) | | | 0.57 | | | | 0.69 | |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 26.40 | | | $ | 25.06 | | | $ | 24.73 | | | $ | 26.26 | | | $ | 25.69 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 5.35 | %(c) | | | 4.81 | % | | | (5.36 | )% | | | 2.22 | % | | | 2.76 | %(c) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 159,706 | | | $ | 187,066 | | | $ | 251,617 | | | $ | 313,875 | | | $ | 133,848 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | |
Net investment loss including reimbursement/waiver | | | (1.66 | )%(d) | | | (1.49 | )% | | | (1.44 | )% | | | (1.05 | )% | | | (1.28 | )%(d) |
Operating expenses including reimbursement/waiver | | | 1.74 | %(d) | | | 1.72 | % | | | 1.80 | %(e) | | | 1.80 | % | | | 1.82 | %(d) |
Operating expenses excluding reimbursement/waiver | | | 1.74 | %(d) | | | 1.72 | % | | | 1.80 | % | | | 1.80 | % | | | 1.82 | %(d) |
Portfolio Turnover Rate | | | 1,480 | %(c) | | | 574 | % | | | 387 | % | | | 762 | % | | | 758 | %(c) |
(a) The Fund began offering Investor Class shares on September 14, 2009.
(b) Per share amounts are based upon average shares outstanding.
(c) Not Annualized.
(d) Annualized.
(e) Effective May 1, 2011, the Advisor agreed not to limit expenses.
| | | | |
| June 30, 2013 | | 160 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Tactical Growth Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended June 30,
2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | | | Period Ended
December 31,
2009(a) | |
Net Asset Value, Beginning of Period | | $ | 25.34 | | | $ | 24.91 | | | $ | 26.37 | | | $ | 25.71 | | | $ | 25.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment loss | | | (0.17 | )(b) | | | (0.30 | )(b) | | | (0.30 | )(b) | | | (0.17 | ) | | | (0.01 | ) |
Net realized and unrealized gain/(loss) on investments | | | 1.57 | | | | 1.58 | | | | (1.03 | ) | | | 0.83 | | | | 0.72 | |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 1.40 | | | | 1.28 | | | | (1.33 | ) | | | 0.66 | | | | 0.71 | |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
From capital gains | | | — | | | | (0.85 | ) | | | (0.13 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (0.85 | ) | | | (0.13 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 1.40 | | | | 0.43 | | | | (1.46 | ) | | | 0.66 | | | | 0.71 | |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 26.74 | | | $ | 25.34 | | | $ | 24.91 | | | $ | 26.37 | | | $ | 25.71 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 5.52 | %(c) | | | 5.14 | % | | | (5.04 | )% | | | 2.57 | % | | | 2.84 | %(c) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 61,988 | | | $ | 61,602 | | | $ | 70,110 | | | $ | 151,485 | | | $ | 64,399 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | |
Net investment loss including reimbursement/waiver | | | (1.31 | )%(d) | | | (1.14 | )% | | | (1.14 | )% | | | (0.70 | )% | | | (0.36 | )%(d) |
Operating expenses including reimbursement/waiver | | | 1.39 | %(d) | | | 1.38 | % | | | 1.45 | %(e) | | | 1.44 | % | | | 1.50 | %(d) |
Operating expenses excluding reimbursement/waiver | | | 1.39 | %(d) | | | 1.38 | % | | | 1.45 | % | | | 1.44 | % | | | 1.53 | %(d) |
Portfolio Turnover Rate | | | 1,480 | %(c) | | | 574 | % | | | 387 | % | | | 762 | % | | | 758 | %(c) |
(a) The Fund began offering Institutional Class shares on September 14, 2009.
(b) Per share amounts are based upon average shares outstanding.
(c) Not Annualized.
(d) Annualized.
(e) Effective May 1, 2011, the Advisor agreed not to limit expenses.
| | | | |
| See Notes to Financial Statements | | 161 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Tactical Growth Fund
| | | | | | | | | | | | | | | | |
| | | Class A | |
| | | Six Months Ended June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Period Ended
December 31,
2010(a) | |
Net Asset Value, Beginning of Period | | $ | 24.92 | | | $ | 24.62 | | | $ | 26.19 | | | $ | 26.19 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | |
Net investment loss | | | (0.23 | )(b) | | | (0.43 | )(b) | | | (0.41 | )(b) | | | (0.10 | ) |
Net realized and unrealized gain/(loss) on investments | | | 1.54 | | | | 1.58 | | | | (1.03 | ) | | | 0.10 | |
| | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 1.31 | | | | 1.15 | | | | (1.44 | ) | | | 0.00 | |
| | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | |
From capital gains | | | — | | | | (0.85 | ) | | | (0.13 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (0.85 | ) | | | (0.13 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 1.31 | | | | 0.30 | | | | (1.57 | ) | | | 0.00 | |
| | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 26.23 | | | $ | 24.92 | | | $ | 24.62 | | | $ | 26.19 | |
| | | | | | | | | | | | | | | | |
Total Return(c) | | | 5.26 | %(d) | | | 4.67 | % | | | (5.49 | )% | | | 0.00 | %(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 103,323 | | | $ | 112,734 | | | $ | 161,901 | | | $ | 74,910 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | |
Net investment loss including reimbursement/waiver | | | (1.81 | )%(e) | | | (1.65 | )% | | | (1.58 | )% | | | (0.99 | )%(e) |
Operating expenses including reimbursement/waiver | | | 1.89 | %(e) | | | 1.88 | % | | | 1.94 | %(f) | | | 2.00 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 1.89 | %(e) | | | 1.88 | % | | | 1.94 | % | | | 2.00 | %(e) |
Portfolio Turnover Rate | | | 1,480 | %(d) | | | 574 | % | | | 387 | % | | | 762 | %(g) |
(a) The Fund began offering Class A shares on March 12, 2010.
(b) Per share amounts are based upon average shares outstanding.
(c) Total return does not reflect the effect of sales charges.
(d) Not Annualized.
(e) Annualized.
(f) Effective May 1, 2011, the Advisor agreed not to limit expenses.
(g) Portfolio turnover rate is calculated at the Fund level and represents the year ended December 31, 2010.
| | | | |
| June 30, 2013 | | 162 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Tactical Growth Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Class C | |
| | | Six Months
Ended June 30,
2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | | | Period Ended
December 31,
2009(a) | |
Net Asset Value, Beginning of Period | | $ | 24.55 | | | $ | 24.39 | | | $ | 26.06 | | | $ | 25.65 | | | $ | 25.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment loss | | | (0.29 | )(b) | | | (0.53 | )(b) | | | (0.53 | )(b) | | | (0.22 | ) | | | (0.06 | ) |
Net realized and unrealized gain/(loss) on investments | | | 1.53 | | | | 1.54 | | | | (1.01 | ) | | | 0.63 | | | | 0.71 | |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 1.24 | | | | 1.01 | | | | (1.54 | ) | | | 0.41 | | | | 0.65 | |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
From capital gains | | | — | | | | (0.85 | ) | | | (0.13 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (0.85 | ) | | | (0.13 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 1.24 | | | | 0.16 | | | | (1.67 | ) | | | 0.41 | | | | 0.65 | |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 25.79 | | | $ | 24.55 | | | $ | 24.39 | | | $ | 26.06 | | | $ | 25.65 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return(c) | | | 5.05 | %(d) | | | 4.14 | % | | | (5.90 | )% | | | 1.60 | % | | | 2.60 | %(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 94,629 | | | $ | 115,442 | | | $ | 139,604 | | | $ | 119,659 | | | $ | 23,250 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | |
Net investment loss including reimbursement/waiver | | | (2.26 | )%(e) | | | (2.09 | )% | | | (2.04 | )% | | | (1.57 | )% | | | (1.71 | )%(e) |
Operating expenses including reimbursement/waiver | | | 2.34 | %(e) | | | 2.32 | % | | | 2.39 | %(f) | | | 2.41 | % | | | 2.43 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 2.34 | %(e) | | | 2.32 | % | | | 2.39 | % | | | 2.41 | % | | | 2.44 | %(e) |
Portfolio Turnover Rate | | | 1,480 | %(d) | | | 574 | % | | | 387 | % | | | 762 | % | | | 758 | %(d) |
(a) The Fund began offering Class C shares on September 14, 2009.
(b) Per share amounts are based upon average shares outstanding.
(c) Total return does not reflect the effect of sales charges.
(d) Not Annualized.
(e) Annualized.
(f) Effective May 1, 2011, the Advisor agreed not to limit expenses.
| | | | |
| See Notes to Financial Statements | | 163 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Tactical Growth Fund
| | | | | | | | | | | | | | | | |
| | | Advisor Class | |
| | | Six Months
Ended June 30,
2013
(Unaudited)(a) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Period Ended
December 31,
2010(b) | |
Net Asset Value, Beginning of Period | | $ | 25.35 | | | $ | 24.92 | | | $ | 26.37 | | | $ | 25.58 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | |
Net investment loss | | | (0.17 | )(c) | | | (0.29 | )(c) | | | (0.28 | )(c) | | | (0.07 | ) |
Net realized and unrealized gain/(loss) on investments | | | 1.57 | | | | 1.57 | | | | (1.04 | ) | | | 0.86 | |
| | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 1.40 | | | | 1.28 | | | | (1.32 | ) | | | 0.79 | |
| | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | |
From capital gains | | | — | | | | (0.85 | ) | | | (0.13 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (0.85 | ) | | | (0.13 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 1.40 | | | | 0.43 | | | | (1.45 | ) | | | 0.79 | |
| | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 26.75 | | | $ | 25.35 | | | $ | 24.92 | | | $ | 26.37 | |
| | | | | | | | | | | | | | | | |
Total Return | | | 5.52 | %(d) | | | 5.13 | % | | | (5.00 | )% | | | 3.09 | %(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 466,351 | | | $ | 447,928 | | | $ | 288,948 | | | $ | 197,655 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | |
Net investment loss including reimbursement/waiver | | | (1.33 | )%(e) | | | (1.11 | )% | | | (1.08 | )% | | | (0.57 | )%(e) |
Operating expenses including reimbursement/waiver | | | 1.41 | %(e) | | | 1.37 | % | | | 1.44 | %(f) | | | 1.49 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 1.41 | %(e) | | | 1.37 | % | | | 1.44 | % | | | 1.49 | %(e) |
Portfolio Turnover Rate | | | 1,480 | %(d) | | | 574 | % | | | 387 | % | | | 762 | %(g) |
(a) Prior to May 1, 2013, the Forward Tactical Growth Fund Advisor Class was known as the Forward Tactical Growth Fund Class M.
(b) The Fund began offering Advisor Class shares on February 1, 2010.
(c) Per share amounts are based upon average shares outstanding.
(d) Not Annualized.
(e) Annualized.
(f) Effective May 1, 2011, the Advisor agreed not to limit expenses.
(g) Portfolio turnover rate is calculated at the Fund level and represents the year ended December 31, 2010.
| | | | |
| June 30, 2013 | | 164 | | See Notes to Financial Statements |
Consolidated Financial Highlights
For a share outstanding throughout the periods presented.
Forward Commodity Long/Short Strategy Fund
| | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months
Ended June 30,
2013
(Unaudited)(a) | | | Year Ended
December 31,
2012(a) | | | Year Ended
December 31,
2011(a)(b) | |
Net Asset Value, Beginning of Period | | $ | 20.21 | | | $ | 27.02 | | | $ | 25.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | |
Net investment loss(c) | | | (0.11 | ) | | | (0.23 | ) | | | (0.20 | ) |
Net realized and unrealized gain/(loss) on investments | | | 2.10 | | | | (6.58 | ) | | | 2.61 | |
| | | | | | | | | | | | |
Total from Investment Operations | | | 1.99 | | | | (6.81 | ) | | | 2.41 | |
| | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | |
From investment income | | | — | | | | — | | | | (0.39 | ) |
Tax return of capital | | | — | | | | — | | | | (0.00 | )(d) |
| | | | | | | | | | | | |
Total Distributions | | | — | | | | — | | | | (0.39 | ) |
| | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 1.99 | | | | (6.81 | ) | | | 2.02 | |
| | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 22.20 | | | $ | 20.21 | | | $ | 27.02 | |
| | | | | | | | | | | | |
Total Return | | | 9.85 | %(e) | | | (25.20 | )% | | | 9.66 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 24,125 | | | $ | 22,093 | | | $ | 48,141 | |
Ratios to Average Net Assets: | | | | | | | | | | | | |
Net investment loss including reimbursement/waiver | | | (1.05 | )%(f) | | | (0.93 | )% | | | (0.74 | )% |
Operating expenses including reimbursement/waiver | | | 1.78 | %(f) | | | 1.70 | %(g) | | | 1.87 | % |
Operating expenses excluding reimbursement/waiver | | | 1.78 | %(f) | | | 1.70 | % | | | 1.90 | % |
Portfolio Turnover Rate | | | 34 | %(e) | | | 90 | % | | | 39 | % |
(a) Per share amounts and ratios to average net assets include income and expenses of the Forward Commodity Long/Short Strategy (Cayman) Fund Ltd., a wholly-owned Cayman subsidiary, exclusive of the subsidiary’s management fee.
(b) The Fund began offering Investor Class shares on January 3, 2011.
(c) Per share amounts are based upon average shares outstanding.
(d) Amount represents less than $0.01 per share.
(e) Not Annualized.
(f) Annualized.
(g) Effective May 1, 2012, the Advisor agreed not to limit expenses.
| | | | |
| See Notes to Financial Statements | | 165 | | June 30, 2013 |
Consolidated Financial Highlights
For a share outstanding throughout the periods presented.
Forward Commodity Long/Short Strategy Fund
| | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months
Ended June 30,
2013
(Unaudited)(a) | | | Year Ended
December 31,
2012(a) | | | Year Ended
December 31,
2011(a)(b) | |
Net Asset Value, Beginning of Period | | $ | 20.33 | | | $ | 27.06 | | | $ | 25.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | |
Net investment loss(c) | | | (0.07 | ) | | | (0.14 | ) | | | (0.12 | ) |
Net realized and unrealized gain/(loss) on investments | | | 2.10 | | | | (6.59 | ) | | | 2.61 | |
| | | | | | | | | | | | |
Total from Investment Operations | | | 2.03 | | | | (6.73 | ) | | | 2.49 | |
| | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | |
From investment income | | | — | | | | — | | | | (0.43 | ) |
Tax return of capital | | | — | | | | — | | | | (0.00 | )(d) |
| | | | | | | | | | | | |
Total Distributions | | | — | | | | — | | | | (0.43 | ) |
| | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 2.03 | | | | (6.73 | ) | | | 2.06 | |
| | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 22.36 | | | $ | 20.33 | | | $ | 27.06 | |
| | | | | | | | | | | | |
Total Return | | | 9.98 | %(e) | | | (24.87 | )% | | | 9.97 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 52,367 | | | $ | 49,467 | | | $ | 66,255 | |
Ratios to Average Net Assets: | | | | | | | | | | | | |
Net investment loss including reimbursement/waiver | | | (0.70 | )%(f) | | | (0.57 | )% | | | (0.46 | )% |
Operating expenses including reimbursement/waiver | | | 1.43 | %(f) | | | 1.35 | %(g) | | | 1.52 | % |
Operating expenses excluding reimbursement/waiver | | | 1.43 | %(f) | | | 1.35 | % | | | 1.55 | % |
Portfolio Turnover Rate | | | 34 | %(e) | | | 90 | % | | | 39 | % |
(a) Per share amounts and ratios to average net assets include income and expenses of the Forward Commodity Long/Short Strategy (Cayman) Fund Ltd., a wholly-owned Cayman subsidiary, exclusive of the subsidiary’s management fee.
(b) The Fund began offering Institutional Class shares on January 3, 2011.
(c) Per share amounts are based upon average shares outstanding.
(d) Amount represents less than $0.01 per share.
(e) Not Annualized.
(f) Annualized.
(g) Effective May 1, 2012, the Advisor agreed not to limit expenses.
| | | | |
| June 30, 2013 | | 166 | | See Notes to Financial Statements |
Consolidated Financial Highlights
For a share outstanding throughout the periods presented.
Forward Commodity Long/Short Strategy Fund
| | | | | | | | | | | | |
| | | Class C | |
| | | Six Months
Ended June 30,
2013
(Unaudited)(a) | | | Year Ended
December 31,
2012(a) | | | Period Ended
December 31,
2011(a)(b) | |
Net Asset Value, Beginning of Period | | $ | 20.04 | | | $ | 26.95 | | | $ | 28.49 | |
Income/(Loss) from Operations: | | | | | | | | | | | | |
Net investment loss(c) | | | (0.17 | ) | | | (0.36 | ) | | | (0.25 | ) |
Net realized and unrealized gain/(loss) on investments | | | 2.08 | | | | (6.55 | ) | | | (0.97 | ) |
| | | | | | | | | | | | |
Total from Investment Operations | | | 1.91 | | | | (6.91 | ) | | | (1.22 | ) |
| | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | |
From investment income | | | — | | | | — | | | | (0.32 | ) |
Tax return of capital | | | — | | | | — | | | | (0.00 | )(d) |
| | | | | | | | | | | | |
Total Distributions | | | — | | | | — | | | | (0.32 | ) |
| | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 1.91 | | | | (6.91 | ) | | | (1.54 | ) |
| | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 21.95 | | | $ | 20.04 | | | $ | 26.95 | |
| | | | | | | | | | | | |
Total Return(e) | | | 9.53 | %(f) | | | (25.61 | )% | | | (4.32 | )%(f) |
Ratios/Supplemental Data: | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 4,864 | | | $ | 5,540 | | | $ | 5,180 | |
Ratios to Average Net Assets: | | | | | | | | | | | | |
Net investment loss including reimbursement/waiver | | | (1.64 | )%(g) | | | (1.52 | )% | | | (1.40 | )%(g) |
Operating expenses including reimbursement/waiver | | | 2.37 | %(g) | | | 2.31 | %(h) | | | 2.47 | %(g) |
Operating expenses excluding reimbursement/waiver | | | 2.37 | %(g) | | | 2.31 | % | | | 2.49 | %(g) |
Portfolio Turnover Rate | | | 34 | %(f) | | | 90 | % | | | 39 | %(i) |
(a) Per share amounts and ratios to average net assets include income and expenses of the Forward Commodity Long/Short Strategy (Cayman) Fund Ltd., a wholly-owned Cayman subsidiary, exclusive of the subsidiary’s management fee.
(b) The Fund began offering Class C shares on May 4, 2011.
(c) Per share amounts are based upon average shares outstanding.
(d) Amount represents less than $0.01 per share.
(e) Total return does not reflect the effect of sales charges.
(f) Not Annualized.
(g) Annualized.
(h) Effective May 1, 2012, the Advisor agreed not to limit expenses.
(i) Portfolio turnover rate is calculated at the Fund level and represents the year ended December 31, 2011.
| | | | |
| See Notes to Financial Statements | | 167 | | June 30, 2013 |
Consolidated Financial Highlights
For a share outstanding throughout the periods presented.
Forward Commodity Long/Short Strategy Fund
| | | | | | | | | | | | |
| | | Advisor Class | |
| | | Six Months
Ended June 30,
2013
(Unaudited)(a)(b) | | | Year Ended
December 31,
2012(a) | | | Period Ended
December 31,
2011(a)(c) | |
Net Asset Value, Beginning of Period | | $ | 20.27 | | | $ | 26.99 | | | $ | 26.66 | |
Income/(Loss) from Operations: | | | | | | | | | | | | |
Net investment loss(d) | | | (0.07 | ) | | | (0.13 | ) | | | (0.01 | ) |
Net realized and unrealized gain/(loss) on investments | | | 2.10 | | | | (6.59 | ) | | | 0.70 | |
| | | | | | | | | | | | |
Total from Investment Operations | | | 2.03 | | | | (6.72 | ) | | | 0.69 | |
| | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | |
From investment income | | | — | | | | — | | | | (0.36 | ) |
Tax return of capital | | | — | | | | — | | | | (0.00 | )(e) |
| | | | | | | | | | | | |
Total Distributions | | | — | | | | — | | | | (0.36 | ) |
| | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 2.03 | | | | (6.72 | ) | | | 0.33 | |
| | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 22.30 | | | $ | 20.27 | | | $ | 26.99 | |
| | | | | | | | | | | | |
Total Return | | | 10.01 | %(f) | | | (25.12 | )% | | | 2.91 | %(f) |
Ratios/Supplemental Data: | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 36,348 | | | $ | 34,297 | | | $ | 1,728 | |
Ratios to Average Net Assets: | | | | | | | | | | | | |
Net investment loss including reimbursement/waiver | | | (0.71 | )%(g) | | | (0.56 | )% | | | (0.27 | )%(g) |
Operating expenses including reimbursement/waiver | | | 1.44 | %(g) | | | 1.37 | %(h) | | | 1.52 | %(g) |
Operating expenses excluding reimbursement/waiver | | | 1.44 | %(g) | | | 1.37 | % | | | 3.19 | %(g) |
Portfolio Turnover Rate | | | 34 | %(f) | | | 90 | % | | | 39 | %(i) |
(a) Per share amounts and ratios to average net assets include income and expenses of the Forward Commodity Long/Short Strategy (Cayman) Fund Ltd., a wholly-owned Cayman subsidiary, exclusive of the subsidiary’s management fee.
(b) Prior to May 1, 2013, the Forward Commodity Long/Short Strategy Fund Advisor Class was known as the Forward Commodity Long/Short Strategy Fund Class M.
(c) The Fund began offering Advisor Class shares on December 7, 2011.
(d) Per share amounts are based upon average shares outstanding.
(e) Amount represents less than $0.01 per share.
(f) Not Annualized.
(g) Annualized.
(h) Effective May 1, 2012, the Advisor agreed not to limit expenses.
(i) Portfolio turnover rate is calculated at the Fund level and represents the year ended December 31, 2011.
| | | | |
| June 30, 2013 | | 168 | | See Notes to Financial Statements |
Consolidated Financial Highlights
For a share outstanding throughout the periods presented.
Forward Commodity Long/Short Strategy Fund
| | | | | | | | | | | | |
| | | Class Z | |
| | | Six Months
Ended June 30,
2013
(Unaudited)(a) | | | Year Ended
December 31,
2012(a) | | | Year Ended
December 31,
2011(a)(b) | |
Net Asset Value, Beginning of Period | | $ | 20.31 | | | $ | 27.03 | | | $ | 25.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | |
Net investment loss(c) | | | (0.07 | ) | | | (0.14 | ) | | | (0.02 | ) |
Net realized and unrealized gain/(loss) on investments | | | 2.11 | | | | (6.58 | ) | | | 2.49 | |
| | | | | | | | | | | | |
Total from Investment Operations | | | 2.04 | | | | (6.72 | ) | | | 2.47 | |
| | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | |
From investment income | | | — | | | | — | | | | (0.44 | ) |
Tax return of capital | | | — | | | | — | | | | (0.00 | )(d) |
| | | | | | | | | | | | |
Total Distributions | | | — | | | | — | | | | (0.44 | ) |
| | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 2.04 | | | | (6.72 | ) | | | 2.03 | |
| | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 22.35 | | | $ | 20.31 | | | $ | 27.03 | |
| | | | | | | | | | | | |
Total Return | | | 10.04 | %(e) | | | (24.86 | )% | | | 9.89 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 7,579 | | | $ | 5,756 | | | $ | 10,798 | |
Ratios to Average Net Assets: | | | | | | | | | | | | |
Net investment loss including reimbursement/waiver | | | (0.65 | )%(f) | | | (0.56 | )% | | | (0.06 | )% |
Operating expenses including reimbursement/waiver | | | 1.38 | %(f) | | | 1.33 | %(g) | | | 1.44 | % |
Operating expenses excluding reimbursement/waiver | | | 1.38 | %(f) | | | 1.33 | % | | | 1.45 | % |
Portfolio Turnover Rate | | | 34 | %(e) | | | 90 | % | | | 39 | % |
(a) Per share amounts and ratios to average net assets include income and expenses of the Forward Commodity Long/Short Strategy (Cayman) Fund Ltd., a wholly-owned Cayman subsidiary, exclusive of the subsidiary’s management fee.
(b) The Fund began offering Class Z shares on January 3, 2011.
(c) Per share amounts are based upon average shares outstanding.
(d) Amount represents less than $0.01 per share.
(e) Not Annualized.
(f) Annualized.
(g) Effective May 1, 2012, the Advisor agreed not to limit expenses.
| | | | |
| See Notes to Financial Statements | | 169 | | June 30, 2013 |
Consolidated Financial Highlights
For a share outstanding throughout the periods presented.
Forward Managed Futures Strategy Fund
| | | | | | | | |
| | | Investor Class | |
| | | Six Months
Ended June 30, 2013 (Unaudited)(a) | | | Period Ended December 31, 2012(a)(b) | |
Net Asset Value, Beginning of Period | | $ | 20.40 | | | $ | 25.00 | |
Income/(Loss) from Operations: | | | | | | | | |
Net investment loss(c) | | | (0.20 | ) | | | (0.38 | ) |
Net realized and unrealized gain/(loss) on investments | | | 0.71 | | | | (4.22 | ) |
| | | | | | | | |
Total from Investment Operations | | | 0.51 | | | | (4.60 | ) |
| | | | | | | | |
Less Distributions: | | | | | | | | |
From capital gains | | | — | | | | (0.00 | )(d) |
| | | | | | | | |
Total Distributions | | | — | | | | (0.00 | )(d) |
| | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.51 | | | | (4.60 | ) |
| | | | | | | | |
Net Asset Value, End of Period | | $ | 20.91 | | | $ | 20.40 | |
| | | | | | | | |
Total Return | | | 2.90 | %(e) | | | (18.71 | )%(e) |
Ratios/Supplemental Data: | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 1,130 | | | $ | 1,021 | |
Ratios to Average Net Assets: | | | | | | | | |
Net investment loss including reimbursement/waiver | | | (1.98 | )%(f) | | | (1.81 | )%(f) |
Operating expenses including reimbursement/waiver | | | 2.42 | %(f) | | | 2.53 | %(f) |
Operating expenses excluding reimbursement/waiver | | | 2.82 | %(f) | | | 3.26 | %(f) |
Portfolio Turnover Rate | | | 0 | %(e) | | | 6 | %(e) |
(a) Per share amounts and ratios to average net assets include income and expenses of the Forward Managed Futures Strategy (Cayman) Fund Ltd., a wholly-owned Cayman subsidiary, exclusive of the subsidiary’s management fees.
(b) The Fund began offering Investor Class on January 30, 2012.
(c) Per share amounts are based upon average shares outstanding.
(d) Amount represents less than $0.01 per share.
(e) Not Annualized.
(f) Annualized.
| | | | |
| June 30, 2013 | | 170 | | See Notes to Financial Statements |
Consolidated Financial Highlights
For a share outstanding throughout the periods presented.
Forward Managed Futures Strategy Fund
| | | | | | | | |
| | | Institutional Class | |
| | | Six Months
Ended June 30, 2013 (Unaudited)(a) | | | Period Ended December 31, 2012(a)(b) | |
Net Asset Value, Beginning of Period | | $ | 20.47 | | | $ | 25.00 | |
Income/(Loss) from Operations: | | | | | | | | |
Net investment loss(c) | | | (0.17 | ) | | | (0.31 | ) |
Net realized and unrealized gain/(loss) on investments | | | 0.71 | | | | (4.22 | ) |
| | | | | | | | |
Total from Investment Operations | | | 0.54 | | | | (4.53 | ) |
| | | | | | | | |
Less Distributions: | | | | | | | | |
From capital gains | | | — | | | | (0.00 | )(d) |
| | | | | | | | |
Total Distributions | | | — | | | | (0.00 | )(d) |
| | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.54 | | | | (4.53 | ) |
| | | | | | | | |
Net Asset Value, End of Period | | $ | 21.01 | | | $ | 20.47 | |
| | | | | | | | |
Total Return | | | 3.04 | %(e) | | | (18.43 | )%(e) |
Ratios/Supplemental Data: | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 909 | | | $ | 885 | |
Ratios to Average Net Assets: | | | | | | | | |
Net investment loss including reimbursement/waiver | | | (1.63 | )%(f) | | | (1.46 | )%(f) |
Operating expenses including reimbursement/waiver | | | 2.07 | %(f) | | | 2.18 | %(f) |
Operating expenses excluding reimbursement/waiver | | | 2.47 | %(f) | | | 2.91 | %(f) |
Portfolio Turnover Rate | | | 0 | %(e) | | | 6 | %(e) |
(a) Per share amounts and ratios to average net assets include income and expenses of the Forward Managed Futures Strategy (Cayman) Fund Ltd., a wholly-owned Cayman subsidiary, exclusive of the subsidiary’s management fees.
(b) The Fund began offering Institutional Class on January 30, 2012.
(c) Per share amounts are based upon average shares outstanding.
(d) Amount represents less than $0.01 per share.
(e) Not Annualized.
(f) Annualized.
| | | | |
| See Notes to Financial Statements | | 171 | | June 30, 2013 |
Consolidated Financial Highlights
For a share outstanding throughout the periods presented.
Forward Managed Futures Strategy Fund
| | | | | | | | |
| | | Class C | |
| | | Six Months
Ended June 30, 2013 (Unaudited)(a) | | | Period Ended December 31, 2012(a)(b) | |
Net Asset Value, Beginning of Period | | $ | 20.29 | | | $ | 25.00 | |
Income/(Loss) from Operations: | | | | | | | | |
Net investment loss(c) | | | (0.26 | ) | | | (0.51 | ) |
Net realized and unrealized gain/(loss) on investments | | | 0.71 | | | | (4.20 | ) |
| | | | | | | | |
Total from Investment Operations | | | 0.45 | | | | (4.71 | ) |
| | | | | | | | |
Less Distributions: | | | | | | | | |
From capital gains | | | — | | | | (0.00 | )(d) |
| | | | | | | | |
Total Distributions | | | — | | | | (0.00 | )(d) |
| | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.45 | | | | (4.71 | ) |
| | | | | | | | |
Net Asset Value, End of Period | | $ | 20.74 | | | $ | 20.29 | |
| | | | | | | | |
Total Return(e) | | | 2.62 | %(f) | | | (19.15 | )%(f) |
Ratios/Supplemental Data: | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 992 | | | $ | 936 | |
Ratios to Average Net Assets: | | | | | | | | |
Net investment loss including reimbursement/waiver | | | (2.58 | )%(g) | | | (2.41 | )%(g) |
Operating expenses including reimbursement/waiver | | | 3.02 | %(g) | | | 3.13 | %(g) |
Operating expenses excluding reimbursement/waiver | | | 3.42 | %(g) | | | 3.86 | %(g) |
Portfolio Turnover Rate | | | 0 | %(f) | | | 6 | %(f) |
(a) Per share amounts and ratios to average net assets include income and expenses of the Forward Managed Futures Strategy (Cayman) Fund Ltd., a wholly-owned Cayman subsidiary, exclusive of the subsidiary’s management fees.
(b) The Fund began offering Class C on January 30, 2012.
(c) Per share amounts are based upon average shares outstanding.
(d) Amount represents less than $0.01 per share.
(e) Total return does not reflect the effect of sales charges.
(f) Not Annualized.
(g) Annualized.
| | | | |
| June 30, 2013 | | 172 | | See Notes to Financial Statements |
Consolidated Financial Highlights
For a share outstanding throughout the periods presented.
Forward Managed Futures Strategy Fund
| | | | | | | | |
| | | Class Z | |
| | | Six Months
Ended June 30, 2013 (Unaudited)(a) | | | Period Ended December 31, 2012(a)(b) | |
Net Asset Value, Beginning of Period | | $ | 20.48 | | | $ | 25.25 | |
Income/(Loss) from Operations: | | | | | | | | |
Net investment loss(c) | | | (0.16 | ) | | | (0.29 | ) |
Net realized and unrealized gain/(loss) on investments | | | 0.71 | | | | (4.48 | ) |
| | | | | | | | |
Total from Investment Operations | | | 0.55 | | | | (4.77 | ) |
| | | | | | | | |
Less Distributions: | | | | | | | | |
From capital gains | | | — | | | | (0.00 | )(d) |
| | | | | | | | |
Total Distributions | | | — | | | | (0.00 | )(d) |
| | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.55 | | | | (4.77 | ) |
| | | | | | | | |
Net Asset Value, End of Period | | $ | 21.03 | | | $ | 20.48 | |
| | | | | | | | |
Total Return | | | 3.09 | %(e) | | | (19.20 | )%(e) |
Ratios/Supplemental Data: | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 7,782 | | | $ | 9,913 | |
Ratios to Average Net Assets: | | | | | | | | |
Net investment loss including reimbursement/waiver | | | (1.59 | )%(f) | | | (1.39 | )%(f) |
Operating expenses including reimbursement/waiver | | | 2.02 | %(f) | | | 2.13 | %(f) |
Operating expenses excluding reimbursement/waiver | | | 2.42 | %(f) | | | 2.80 | %(f) |
Portfolio Turnover Rate | | | 0 | %(e) | | | 6 | %(e) |
(a) Per share amounts and ratios to average net assets include income and expenses of the Forward Managed Futures Strategy (Cayman) Fund Ltd., a wholly-owned Cayman subsidiary, exclusive of the subsidiary’s management fees.
(b) The Fund began offering Class Z on January 31, 2012.
(c) Per share amounts are based upon average shares outstanding.
(d) Amount represents less than $0.01 per share.
(e) Not Annualized.
(f) Annualized.
| | | | |
| See Notes to Financial Statements | | 173 | | June 30, 2013 |
Notes to Financial Statements (Unaudited)
1. Organization
Forward Funds (the “Trust”), a Delaware statutory trust, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of June 30, 2013, the Trust has 32 registered funds. This annual report describes 14 funds offered by the Trust (each a “Fund” and, collectively, the “Funds”). The accompanying financial statements and financial highlights are those of the Forward Credit Analysis Long/Short Fund (“Credit Analysis Long/Short Fund”), the Forward EM Corporate Debt Fund (“EM Corporate Debt Fund”), the Forward Emerging Markets Fund (“Emerging Markets Fund”), the Forward Endurance Long/Short Fund (“Endurance Long/Short Fund”), the Forward Global Credit Long/Short Fund (“Global Credit Long/Short Fund”), the Forward Global Dividend Fund (“Global Dividend Fund”) (prior to February 20, 2013, known as the Forward Large Cap Dividend Fund), the Forward International Dividend Fund (“International Dividend Fund”), the Forward International Small Companies Fund (“International Small Companies Fund”), the Forward Select EM Dividend Fund (“Select EM Dividend Fund”), the Forward Small Cap Equity Fund (“Small Cap Equity Fund”), the Forward Tactical Enhanced Fund (“Tactical Enhanced Fund”), the Forward Tactical Growth Fund (“Tactical Growth Fund”), the Forward Commodity Long/Short Strategy Fund (“Commodity Long/Short Strategy Fund”), and the Forward Managed Futures Strategy Fund (“Managed Futures Strategy Fund”).
The Credit Analysis Long/Short Fund seeks to maximize total return (capital appreciation and income) by investing primarily in a portfolio of municipal bonds, corporate bonds, notes and other debentures, U.S. Treasury and Agency securities, sovereign debt, emerging markets debt, floating rate or zero coupon securities and non-convertible preferred securities that are actively traded in the public markets. The EM Corporate Debt Fund seeks to achieve high total return (capital appreciation and income) by investing primarily in a portfolio of fixed income securities of companies located in emerging market countries and seeks to capitalize on inefficiencies in the emerging market corporate bond market by seeking exposure primarily to euro- and U.S.-dollar-denominated fixed income securities of emerging market issuers, and related derivatives. The Emerging Markets Fund seeks to achieve long-term growth of capital and invests primarily in the equity securities of emerging market countries. The Endurance Long/Short Fund seeks to provide long-term growth of capital by investing in both long and short equity securities of U.S. and non-U.S. issuers, including issuers located in emerging and frontier markets. The Global Credit Long/Short Fund seeks to achieve high total return (capital appreciation and income) and invests in a portfolio of fixed income securities. The Global Dividend Fund seeks to achieve high total return (capital appreciation and income) and invests primarily in equity securities of dividend paying companies. The International Dividend Fund seeks to achieve high total return (capital appreciation and income) and invests primarily in the equity securities of dividend paying companies located outside of the U.S. The International Small Companies Fund seeks to achieve long-term growth of capital and invests in equity securities of companies with small market capitalizations
located outside the U.S. The Select EM Dividend Fund seeks to achieve high total return through capital appreciation and current income and invests primarily in equity securities of dividend paying companies located in emerging market countries. The Small Cap Equity Fund seeks to achieve high total return and invests in equity securities of small capitalization companies. The Tactical Enhanced Fund seeks to produce above-average, risk-adjusted returns, in any market environment, while exhibiting less downside volatility than the S&P 500 Index and invests primarily in a diversified portfolio of instruments providing exposure, both long and short, to the U.S. and non-U.S. equity markets, including exchange-traded funds (“ETFs”), futures and options on securities, securities indices and shares of ETFs. The Tactical Growth Fund seeks to produce above-average, risk-adjusted returns, in any market environment, while exhibiting less downside volatility than the S&P 500 Index and invests primarily in ETFs and instruments providing exposure to U.S and non-U.S. equity securities, which represent general asset classes (comprised of futures and options on securities, securities indices and shares of ETFs) including both U.S. and overseas equity markets. The Commodity Long/Short Strategy Fund seeks long term total return and seeks exposure to the commodity markets and returns that correspond to the Credit Suisse Momentum and Volatility Enhanced Return Strategy Index. The Managed Futures Strategy Fund seeks long term total return and seeks exposure to the futures markets by investing in futures-related instruments that track the performance of futures contracts included in the Credit Suisse Multi-Asset Futures Strategy Index.
Information presented in the accompanying Funds’ financial statements pertains to the Investor Class, Institutional Class, Class A, Class C, Advisor Class and Class Z shares offered by the Trust.
All classes of shares have identical rights to earnings, assets and voting privileges, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes.
Certain Funds invest a high percentage of their assets in specific sectors of the market. As a result, the economic and regulatory developments in a particular sector of the market, positive or negative, can have a greater impact on the relevant Fund’s net asset value and may cause its shares to fluctuate more than if the Fund did not concentrate its investments in a particular sector.
2. Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Funds. These policies are in conformity with U.S. generally accepted accounting principles (“GAAP”). The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements during the reporting period. Management believes the estimates and security valuations are appropriate; however, actual results may differ from those estimates, and the security valuations reflected in the
Notes to Financial Statements (Unaudited)
financial statements may differ from the value the Funds ultimately realize upon sale of the securities. The financial statements have been prepared as of the close of the New York Stock Exchange (“NYSE”) on June 30, 2013.
Portfolio Valuation: Portfolio securities or contracts that are listed or traded on a national securities exchange, contract market or over-the-counter market and that are freely transferable are valued at the last reported sale price or a market’s official closing price on the valuation day, If there have been no sales that day, such securities or contracts are valued at the average of the last reported bid and ask price on the valuation day for long positions or ask prices for short positions. If no bid or ask prices are quoted before closing, such securities or contracts are valued at either the last available sale price or at fair value in accordance with procedures established by, and under the general supervision of, the Board of Trustees.
Debt securities that have an original maturity date of more than 60 days or that are credit impaired for which market data is readily available, are valued on the basis of the average of the latest bid and ask price. Debt securities that mature in 60 days or less and that are not credit impaired, are valued at amortized cost, which approximates fair value, if their original maturity was 365 days or less, (unless the Board of Trustees determines that this method does not represent fair value).
Investments held by the Forward U.S. Government Money Fund are valued using the amortized cost method of valuation permitted in accordance with meeting certain conditions and regulations set forth under Rule 2a-7 of the 1940 Act. Under the amortized cost method, an investment is valued at its cost on the date of purchase and thereafter assumes a constant amortization to maturity of any discount or premium, regardless of the impact of fluctuations in general market rates of interest on the value of the investment.
The Funds’ independent pricing vendors (approved by the Board of Trustees) use multiple valuation techniques to determine fair value. In instances where sufficient market activity exists, the pricing vendors may utilize a market-based approach through which quotes from market makers are used to determine market value. In instances where sufficient market activity may not exist or is limited, the pricing vendors may also utilize proprietary valuation models which may consider market characteristics such as benchmark yield curves, option-adjusted spreads, credit spreads, estimated default rates, coupon rates, anticipated timing of principal repayments, underlying collateral, and other unique security features in order to estimate the relevant cash flows, which are then discounted to calculate the value.
In the event valuation information is not available from the Funds’ independent pricing vendors for a security held by a Fund, such security may be valued by alternate pricing methods, including the use of quotations obtained from dealers that make markets in such securities, or otherwise determined based on the fair value of such securities. Because long-term bonds and lower-rated bonds tend to be less liquid, their values may be determined based on alternate or fair valuation methods
(approved by the Board of Trustees) more frequently than portfolio holdings that are more frequently traded or that have relatively higher credit ratings.
If the Funds’ independent pricing vendors do not provide valuation information for swap contracts or structured notes held by a Fund, such swap contracts and structured notes may be valued by Forward Management, LLC, the Investment Advisor of the Funds (the “Advisor” or “Forward Management”) based on information from the structuring firm or issuer.
Futures and options on futures contracts that are listed or traded on a national securities exchange, commodities exchange, contract market or comparable over-the-counter market and that are freely transferable are valued at their closing settlement price on the exchange on which they are primarily traded or based upon the current settlement price for a like instrument acquired on the day on which the instrument is being valued. A settlement price may not be used if the market makes a limit move with respect to a particular commodity. Over-the-counter futures and options on futures contracts for which market quotations are readily available are valued based on quotes received from independent pricing vendors or one or more dealers that make markets in such securities. If market quotes are not available from an independent pricing vendor or dealers, over-the-counter futures and options on futures contracts are valued using fair valuation methodologies.
Options on securities and options on indices are valued using the last quoted sale price as of the close of the securities or commodities exchange on which they are traded. Certain investments including options may trade in the over-the-counter market and generally are valued based on quotes received from independent pricing vendors or one or more dealers that make markets in such securities.
Portfolio securities that are primarily traded on foreign securities exchanges are generally valued at the last reported trade or closing price of such securities on their respective exchanges, except when an occurrence subsequent to the time a value was so established is likely to have changed such value. In such an event, the fair value of those securities is determined in good faith through consideration of other factors in accordance with procedures established by, and under the general supervision of, the Board of Trustees. Certain Funds will use a fair valuation model provided by independent pricing vendors, which is intended to reflect fair value when a security’s value is believed to have been materially affected by a valuation event that has occurred between the close of the exchange or market on which the security is traded and the close of the regular trading day of the NYSE. The Funds’ valuation procedures set forth certain triggers that instruct when to use the fair valuation model. The value assigned to a security by the fair valuation model is a determination of fair value made under the Funds’ valuation procedures and under the supervision of the Board of Trustees. In such a case, a Fund’s value for a security may be different from the last sales price (or the latest closing price) and there is no guarantee that a fair valued security will be sold at the price at which a Fund is valuing the security.
Notes to Financial Statements (Unaudited)
Forward currency exchange contracts have a market value determined by the prevailing foreign currency exchange daily rates and current foreign currency exchange forward rates. The foreign currency exchange forward rates are calculated using an automated system that estimates rates on the basis of the current day foreign currency exchange rates and forward foreign currency exchange rates supplied by a pricing vendor. Foreign exchange rates and forward foreign currency exchange rates may generally be obtained at the close of the NYSE, normally 4:00 p.m. Eastern Time.
Redeemable securities issued by open-end registered investment companies and offshore affiliated subsidiaries are valued at the investment company’s or subsidiary’s applicable net asset value, with the exception of exchange-traded open-end investment companies, which are priced as equity securities.
All other securities and other assets are carried at their fair value as determined in good faith using methodologies approved by the Board of Trustees. The valuation methodologies include, but are not limited to, the analysis of the effect of any restrictions on the sale of the security, product development and trends of the security’s issuer, changes in the industry and other competing companies, significant changes in the issuer’s financial position and any other event that could have a significant impact on the value of the security.
Securities Transactions and Investment Income: Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales of securities are determined by the identified cost method. Interest income, adjusted for accretion of discounts and amortization of premiums, is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date, except that certain dividends from foreign securities where the ex-dividend date may have passed are recorded as soon as a Fund is informed of such dividends in the exercise of reasonable diligence. If applicable, any foreign capital gains taxes are accrued, net of unrealized gains, and are payable upon the sale of such investments.
Foreign Currency Translation: The books and records of the Funds are maintained in U.S. dollars. Investment valuations and other assets and liabilities initially expressed in foreign currencies are converted each business day into U.S. dollars based upon current exchange rates. Prevailing foreign exchange rates may generally be obtained at the close of the NYSE, normally 4:00 p.m. Eastern Time. The portion of realized and unrealized gains or losses on investments due to fluctuations in foreign currency exchange rates is not separately disclosed.
Collateralized Debt Obligations: Certain Funds may invest in collateralized debt obligations (“CDOs”), which include collateralized loan obligations (“CLOs”) and other similarly structured securities. CLOs are a type of asset-backed security. A CLO is a trust typically collateralized by a pool of loans, which may include, among others, domestic and foreign senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans. CDOs may charge management fees and administrative
expenses. For CDOs, the cash flows from the trust are split into two or more portions, called tranches, varying in risk and yield. The riskiest portion is the “equity” tranche which bears the bulk of defaults from the bonds or loans in the trust and serves to protect the other, more senior tranches from default in all but the most severe circumstances. Since it is partially protected from defaults, a senior tranche from a CDO trust typically has a higher rating and lower yield than its underlying securities and can be rated investment grade. Despite the protection from the equity tranche, CDO senior tranches can experience substantial losses due to actual defaults, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market anticipation of defaults, as well as aversion to CDO securities as a class. The risks of an investment in a CDO depend largely on the type of the collateral securities and the class of the CDO in which a Fund invests. Normally, CLOs and other CDOs are privately offered and sold, and thus, are not registered under the securities laws. As a result, investments in CDOs may be characterized by the Funds as illiquid securities; however, an active dealer market may exist for CDOs allowing a CDO to qualify for Rule 144A transactions under the Securities Act of 1933. In addition to the normal risks associated with fixed income securities (e.g., interest rate risk and default risk), CDOs carry additional risks including, but not limited to: (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the quality of the collateral may decline in value or default; (iii) the Funds may invest in CDOs that are subordinate to other classes; and (iv) the complex structure of the security may not be fully understood at the time of investment and may produce disputes with the issuer or unexpected investment results.
Exchange-Traded Funds (“ETFs”): Certain Funds may invest in ETFs, which are funds whose shares are traded on a national exchange. ETFs may be based on underlying equity or fixed income securities, as well as commodities or currencies. ETFs do not sell individual shares directly to investors and only issue their shares in large blocks known as “creation units.” The investor purchasing a creation unit then sells the individual shares on a secondary market. Although similar diversification benefits may be achieved through an investment in another investment company, ETFs generally offer greater liquidity and lower expenses. Because an ETF incurs its own fees and expenses, shareholders of a Fund investing in an ETF will indirectly bear those costs. Such Funds will also incur brokerage commissions and related charges when purchasing or selling shares of an ETF. Unlike typical investment company shares, which are valued once daily, shares in an ETF may be purchased or sold on a securities exchange throughout the trading day at market prices that are generally close to the net asset value of the ETF.
Foreign Securities: Each Fund may directly purchase securities of foreign issuers. Investing in securities of foreign issuers involves special risks not typically associated with investing in securities of U.S. issuers. The risks include possible revaluation of currencies, the inability to repatriate funds, less complete financial information
Notes to Financial Statements (Unaudited)
about companies and possible future adverse political and economic developments. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than those of securities of comparable U.S. issuers.
Government-Sponsored Enterprises (“GSEs”): Certain Funds may invest in GSEs. Certain GSEs (such as Freddie Mac, Fannie Mae, and FHLB), although sponsored or chartered by the U.S. Government, are not funded by the U.S. Government, and the securities they issue are not guaranteed by the U.S. Government. GSE debt is generally considered to be of high credit quality due to the implied backing of the U.S. Government, but ultimately it is the sole obligation of its issuer. For that reason, securities issued by GSEs are considered to carry somewhat greater credit risk than securities issued by the U.S. Treasury or government agencies that carry the full faith and credit of the U.S. Government.
Master Limited Partnerships (“MLPs”): Certain Funds may invest in MLPs, which are limited partnerships in which ownership units are publicly traded. MLPs often own interests in properties or businesses that are related to the oil and gas industries, although MLPs may invest in other types of investments. Generally, an MLP is operated under the supervision of one or more managing general partners. Limited partners (such as a Fund investing in an MLP) are not involved in the day-to-day management of the partnership.
Investments in MLPs are generally subject to many of the risks that apply to partnerships. For example, holders of the units of MLPs may have limited control and limited voting rights on matters affecting the partnership. There may be fewer corporate protections afforded investors in an MLP than investors in a corporation, and conflicts of interest may exist among unit holders and the general partner of an MLP. MLPs that concentrate in a particular industry or region are subject to risk associated with such industry or region. Investments held by MLPs may be illiquid. MLP unit prices may be more volatile than securities of larger or more broadly based companies.
Unlike most corporations, MLPs do not pay income tax but instead pass through their taxable income to unit holders who are required to report their allocable share of an MLP’s taxable income. An MLP’s distribution to unit holders may exceed the unit holder’s share of the MLP’s taxable income, and a portion of the distribution may represent a return of capital. If a Fund invests in an MLP that makes a return of capital, a portion of the Fund’s distribution to shareholders may also represent a return of capital.
Mortgage-Related and Other Asset-Backed Securities: Certain Funds may invest in mortgage-related and other asset-backed securities. A mortgage-backed security, which represents an interest in a pool of assets such as mortgage loans, will mature when all the mortgages in the pool mature or are paid. Therefore, mortgage-backed securities do not have a fixed maturity, and their expected maturities may vary when interest rates rise or fall.
Mortgage-backed securities are subject to extension risk, which is the risk that a Fund that holds mortgage-backed securities may exhibit additional volatility during periods of rising interest rates. Rising interest rates tend to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates. In addition, mortgage-backed securities are subject to prepayment risk. When interest rates decline, borrowers may pay off their mortgages sooner than expected. This can reduce the returns of the Fund because a Fund will have to reinvest that money at the lower prevailing interest rates.
A Fund’s investments in asset-backed securities are subject to risks similar to those associated with mortgage-related securities, as well as additional risks associated with the nature of the assets and the servicing of those assets. Asset-backed securities present credit risks that are not presented by mortgage-backed securities because asset-backed securities generally do not have the benefit of a security interest in collateral that is comparable in quality to mortgage assets. If the issuer of an asset-backed security defaults on its payment obligations, there is the possibility that, in some cases, a Fund will be unable to possess and sell the underlying collateral and that a Fund’s recoveries on repossessed collateral may not be available to support payments on the security. In the event of a default, a Fund may suffer a loss if it cannot sell collateral quickly and receive the amount it is owed.
Real Estate Investment Trusts (“REITs”): Certain Funds may invest a portion of their assets in REITs and are subject to certain risks associated with direct investments in REITs. REITs may be affected by changes in the value of their underlying properties and by defaults by borrowers or tenants. REITs depend generally on their ability to generate cash flow to make distributions to shareowners, and certain REITs have self-liquidation provisions by which mortgages held may be paid in full and distributions of capital returns may be made at any time. There is no guarantee that the REITs held by the Funds will continue to pay dividends. In addition, the performance of a REIT may be affected by its failure to qualify for tax-free pass-through of income under the Internal Revenue Code of 1986, as amended (the “Code”), or its failure to maintain exemption from registration under the 1940 Act.
Repurchase Agreements: Certain Funds may enter into repurchase agreements (agreements to purchase securities—generally securities of the U.S. Government, its agencies or instrumentalities—subject to the seller’s agreement to repurchase them at a specified time and price) with well established dealers or institutions that Forward Management, or the appropriate sub-advisor has determined to be creditworthy. Repurchase agreements subject the Fund to counterparty risk, meaning that a fund could lose money if the other party fails to perform under the terms of the agreement. The Fund mitigates this risk by ensuring that the Fund’s repurchase agreements are fully collateralized by cash or U.S. government and agency securities. It is the Funds’ policy to take possession of the underlying securities, held in safekeeping at the Fund’s custodian or designated sub-custodians for tri-party repurchase agreements, as collateral and, on a daily basis, mark-to-market such
Notes to Financial Statements (Unaudited)
securities to ensure that the market value including accrued interest is at least equal to the amount owed to the Funds under each repurchase agreement. As of June 30, 2013, the Tactical Enhanced Fund held repurchase agreements and has disclosed the details in the Portfolio of Investments. No other Funds held repurchase agreements at June 30, 2013.
Short Sales: Certain Funds may sell securities short. Short sales are transactions in which a Fund sells a security that it does not own in anticipation of a decline in the market value of that security. To complete such a transaction, a Fund must borrow the security to deliver to the buyer. The Fund is then obligated to replace the security borrowed by purchasing it in the open market at some later date. The Fund bears the risk of a loss if the market price of the security increases between the date of the short sale and the date on which the Fund replaces the borrowed security. The Fund will realize a gain if the security declines in value between those dates. There can be no assurance that securities necessary to cover a short position will be available for purchase. All short sales must be fully collateralized. The Fund maintains collateral consisting of cash, U.S. Government securities or other liquid assets in an amount at least equal to the market value of their respective short positions. The Fund is liable for any dividends or interest payable on securities while those securities are in a short position. The Fund typically intends to hold securities sold short for the short term; therefore, they are excluded from the purchase and sales of investments in Note 8 and the Fund’s Portfolio Turnover Calculation in the Financial Highlights. As of June 30, 2013, the Credit Analysis Long/Short Fund and the Endurance Long/Short Fund held securities sold short with a market value of $246,145,100 and $1,381,938, respectively. No other Funds held securities sold short at June 30, 2013.
Structured Notes: Certain Funds may invest in structured notes, which are debt obligations that also contain an embedded derivative component with characteristics that adjust the obligation’s risk/return profile. Generally, the performance of a structured note will track that of the underlying debt obligation and the derivative embedded within it. The Fund has the right to receive periodic interest payments from the issuer of the structured notes at an agreed-upon interest rate and a return of the principal at the maturity date.
Structured notes are typically privately negotiated transactions between two or more parties. The Fund also bears the risk that the issuer of the structured note will default or become bankrupt. The Fund bears the risk of the loss of its principal investment and periodic interest payments expected to be received for the duration of its investment in the structured notes.
In the case of structured notes on credit default swaps, the Fund is also subject to the credit risk of the corporate credits underlying the credit default swaps. If one of the underlying corporate credits defaults, the Fund may receive the security that has defaulted, or alternatively a cash settlement may occur, and the Fund’s principal investment in the structured note would be reduced by the corresponding face value of the defaulted security.
A highly liquid secondary market may not exist for the structured notes a Fund may invest in, and there can be no assurance that a highly liquid secondary market will develop. The lack of a highly liquid secondary market may make it difficult for a Fund to sell the structured notes it holds at an acceptable price or accurately value such notes. The market for structured notes may be, or suddenly can become, illiquid. The other parties to the transaction may be the only investors with sufficient understanding of the derivative to be interested in bidding for it. Changes in liquidity may result in significant, rapid, and unpredictable changes in the prices for structured notes. In certain cases, a market price for a credit-linked security may not be available.
Fair Value Measurements: A three-tier hierarchy has been established to classify fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability that are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability that are developed based on the best information available.
Various inputs are used in determining the value of each Fund’s investments as of the reporting period end. The designated input levels are not necessarily an indication of the risk or liquidity associated with these investments. These inputs are categorized in the following hierarchy under applicable financial accounting standards:
Level 1—Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities that a Fund has the ability to access at the measurement date.
Level 2—Quoted prices which are not active, quoted prices for similar assets or liabilities in active markets or inputs other than quoted prices that are observable (either directly or indirectly) for substantially the full term of the asset or liability. The Board of Trustees has approved independent pricing vendors that calculate fair valuations of international equity securities based on a number of factors that appear to correlate to the movements in the U.S. markets.
Level 3—Significant unobservable prices or inputs (including the Fund’s own assumptions in determining the fair value of investments) where there is little or no market activity for the asset or liability at the measurement date.
Notes to Financial Statements (Unaudited)
The following is a summary of the inputs used to value each Fund’s investments as of June 30, 2013:
| | | | | | | | | | | | | | | | |
| Investments In Securities | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Credit Analysis Long/Short Fund | | | | | | | | | | | | | | | | |
Preferred Stocks(a) | | | — | | | $ | 1,238,987 | | | | — | | | $ | 1,238,987 | |
Corporate Bonds(a) | | | — | | | | 8,593,827 | | | | — | | | | 8,593,827 | |
Municipal Bonds(a) | | | — | | | | 839,395,296 | | | | — | | | | 839,395,296 | |
| | | | | | | | | | | | | | | | |
Total | | | — | | | $ | 849,228,110 | | | | — | | | $ | 849,228,110 | |
| | | | | | | | | | | | | | | | |
EM Corporate Debt Fund | | | | | | | | | | | | | | | | |
Common Stocks(a) | | $ | 2,865,879 | | | | — | | | | — | | | $ | 2,865,879 | |
Foreign Government Obligations(a) | | | — | | | $ | 14,660,742 | | | | — | | | | 14,660,742 | |
Asset-Backed Securities(a) | | | — | | | | 6,721,825 | | | | — | | | | 6,721,825 | |
Convertible Corporate Bonds(a) | | | — | | | | 3,427,000 | | | | — | | | | 3,427,000 | |
Corporate Bonds(a) | | | — | | | | 239,143,914 | | | $ | 6,674,325 | | | | 245,818,239 | |
Credit-Linked Notes(a) | | | — | | | | 14,597,975 | | | | — | | | | 14,597,975 | |
U.S. Treasury Bonds & Notes(a) | | | — | | | | 9,360,160 | | | | — | | | | 9,360,160 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 2,865,879 | | | $ | 287,911,616 | | | $ | 6,674,325 | | | $ | 297,451,820 | |
| | | | | | | | | | | | | | | | |
| Emerging Markets Fund | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | |
Brazil | | $ | 483,802 | | | | — | | | | — | | | $ | 483,802 | |
Chile | | | 334,557 | | | | — | | | | — | | | | 334,557 | |
China | | | 482,600 | | | $ | 182,109 | | | | — | | | | 664,709 | |
Colombia | | | 128,575 | | | | — | | | | — | | | | 128,575 | |
Egypt | | | 147,144 | | | | — | | | | — | | | | 147,144 | |
Estonia | | | 163,358 | | | | — | | | | — | | | | 163,358 | |
Hong Kong | | | 515,292 | | | | 558,264 | | | | — | | | | 1,073,556 | |
Indonesia | | | 222,248 | | | | 1,389,849 | | | | — | | | | 1,612,097 | |
Italy | | | 348,996 | | | | — | | | | — | | | | 348,996 | |
Malaysia | | | 476,582 | | | | — | | | | — | | | | 476,582 | |
Mexico | | | 72,233 | | | | — | | | | — | | | | 72,233 | |
Nigeria | | | — | | | | 178,952 | | | | — | | | | 178,952 | |
Peru | | | 300,136 | | | | — | | | | — | | | | 300,136 | |
Russia | | | 319,022 | | | | — | | | | — | | | | 319,022 | |
Singapore | | | 437,224 | | | | 190,282 | | | | — | | | | 627,506 | |
South Africa | | | 352,967 | | | | — | | | | — | | | | 352,967 | |
South Korea | | | — | | | | 228,643 | | | | — | | | | 228,643 | |
Sri Lanka | | | 274,142 | | | | 95,418 | | | | — | | | | 369,560 | |
Taiwan | | | — | | | | 837,465 | | | | — | | | | 837,465 | |
Thailand | | | — | | | | 2,008,454 | | | | — | | | | 2,008,454 | |
Turkey | | | — | | | | 836,706 | | | | — | | | | 836,706 | |
Ukraine | | | 137,700 | | | | — | | | | — | | | | 137,700 | |
United Kingdom | | | — | | | | 383,431 | | | | — | | | | 383,431 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 5,196,578 | | | $ | 6,889,573 | | | | — | | | $ | 12,086,151 | |
| | | | | | | | | | | | | | | | |
| Endurance Long/Short Fund | | | | | | | | | | | | | | | | |
Common Stocks(a) | | $ | 4,070,040 | | | | — | | | | — | | | $ | 4,070,040 | |
Exchange-Traded Funds | | | 159,635 | | | | — | | | | — | | | | 159,635 | |
Options Purchased | | | 11,600 | | | | — | | | | — | | | | 11,600 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 4,241,275 | | | | — | | | | — | | | $ | 4,241,275 | |
| | | | | | | | | | | | | | | | |
Notes to Financial Statements (Unaudited)
| | | | | | | | | | | | | | | | |
| Investments In Securities | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Global Credit Long/Short Fund | | | | | | | | | | | | | | | | |
Common Stocks(a) | | $ | 284,643 | | | | — | | | | — | | | $ | 284,643 | |
Foreign Government Obligations(a) Asset-Backed Securities(a) | |
| —
— |
| | $
| 898,196
209,410 |
| |
| —
— |
| |
| 898,196
209,410 |
|
Convertible Corporate Bonds(a) | | | — | | | | 298,000 | | | | — | | | | 298,000 | |
Corporate Bonds(a) | | | — | | | | 3,065,859 | | | $ | 787,500 | | | | 3,853,359 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 284,643 | | | $ | 4,471,465 | | | $ | 787,500 | | | $ | 5,543,608 | |
| | | | | | | | | | | | | | | | |
| Global Dividend Fund | | | | | | | | | | | | | | | | |
Common Stocks(a) | | $ | 20,874,242 | | | | — | | | | — | | | $ | 20,874,242 | |
Convertible Preferred Stocks(a) | | | 300,120 | | | | — | | | | — | | | | 300,120 | |
Agency-Pass-Through Securities(a) | | | — | | | $ | 53,231 | | | | — | | | | 53,231 | |
Collateralized Mortgage Obligations(a) | | | — | | | | 385,826 | | | | — | | | | 385,826 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 21,174,362 | | | $ | 439,057 | | | | — | | | $ | 21,613,419 | |
| | | | | | | | | | | | | | | | |
| International Dividend Fund | | | | | | | | | | | | | | | | |
Common Stocks(a) | | $ | 228,013,836 | | | | — | | | | — | | | $ | 228,013,836 | |
Convertible Preferred Stocks(a) | | | 112,050 | | | | — | | | | — | | | | 112,050 | |
Loan Participation Notes(a) | | | — | | | $ | 1,437,157 | | | | — | | | | 1,437,157 | |
Warrants(a) | | | 1,128 | | | | — | | | | — | | | | 1,128 | |
Agency Pass-Through Securities(a) | | | — | | | | 545,945 | | | | — | | | | 545,945 | |
Collateralized Mortgage Obligations(a) | | | — | | | | 6,043,728 | | | | — | | | | 6,043,728 | |
Corporate Bonds(a) | | | — | | | | 975,000 | | | | — | | | | 975,000 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 228,127,014 | | | $ | 9,001,830 | | | | — | | | $ | 237,128,844 | |
| | | | | | | | | | | | | | | | |
| International Small Companies Fund | | | | | | | | | | | | | | | | |
Common Stocks(a) | | $ | 159,847,019 | | | | — | | | | — | | | $ | 159,847,019 | |
Exchange-Traded Funds(a) | | | 5,715,583 | | | | — | | | | — | | | | 5,715,583 | |
Preferred Stocks(a) | | | 1,977,819 | | | | — | | | | — | | | | 1,977,819 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 167,540,421 | | | | — | | | | — | | | $ | 167,540,421 | |
| | | | | | | | | | | | | | | | |
| Select EM Dividend Fund | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | |
Brazil | | $ | 931,837 | | | | — | | | | — | | | $ | 931,837 | |
Chile | | | 604,865 | | | | — | | | | — | | | | 604,865 | |
China | | | 1,671,085 | | | $ | 571,455 | | | | — | | | | 2,242,540 | |
Colombia | | | 369,467 | | | | — | | | | — | | | | 369,467 | |
Egypt | | | 387,510 | | | | — | | | | — | | | | 387,510 | |
Estonia | | | 113,131 | | | | 306,873 | | | | — | | | | 420,004 | |
France | | | — | | | | 7,478 | | | | — | | | | 7,478 | |
Hong Kong | | | 1,276,894 | | | | 874,472 | | | | — | | | | 2,151,366 | |
Indonesia | | | 675,292 | | | | 3,196,123 | | | | — | | | | 3,871,415 | |
Italy | | | — | | | | 878,640 | | | | — | | | | 878,640 | |
Malaysia | | | 940,841 | | | | — | | | | — | | | | 940,841 | |
Mexico | | | 423,079 | | | | — | | | | — | | | | 423,079 | |
Netherlands | | | 8,094 | | | | — | | | | — | | | | 8,094 | |
Nigeria | | | — | | | | 402,643 | | | | — | | | | 402,643 | |
Pakistan | | | 41,715 | | | | — | | | | — | | | | 41,715 | |
Peru | | | 881,538 | | | | — | | | | — | | | | 881,538 | |
Russia | | | 1,333,731 | | | | — | | | | — | | | | 1,333,731 | |
Singapore | | | 1,013,708 | | | | 627,467 | | | | ��— | | | | 1,641,175 | |
Notes to Financial Statements (Unaudited)
| | | | | | | | | | | | | | | | |
| Investments In Securities | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Select EM Dividend Fund (continued) | | | | | | | | | | | | | | | | |
South Africa | | $ | 572,180 | | | | — | | | | — | | | $ | 572,180 | |
South Korea | | | — | | | $ | 525,261 | | | | — | | | | 525,261 | |
Sri Lanka | | | 591,066 | | | | 303,414 | | | | — | | | | 894,480 | |
Taiwan | | | — | | | | 1,788,391 | | | | — | | | | 1,788,391 | |
Thailand | | | — | | | | 5,062,574 | | | | — | | | | 5,062,574 | |
Turkey | | | — | | | | 2,514,698 | | | | — | | | | 2,514,698 | |
Ukraine | | | 459,085 | | | | — | | | | — | | | | 459,085 | |
United Kingdom | | | 485,400 | | | | 826,473 | | | | — | | | | 1,311,873 | |
United States | | | 837,876 | | | | — | | | | — | | | | 837,876 | |
Vietnam | | | 261,448 | | | | 443,413 | | | | — | | | | 704,861 | |
Loan Participation Notes(a) | | | — | | | | 232,659 | | | | — | | | | 232,659 | |
Preferred Stocks(a) | | | 399,645 | | | | — | | | | — | | | | 399,645 | |
Warrants(a) | | | 2,303 | | | | — | | | | — | | | | 2,303 | |
Collateralized Mortgage Obligations(a) | | | — | | | | 1,730,585 | | | | — | | | | 1,730,585 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 14,281,790 | | | $ | 20,292,619 | | | | — | | | $ | 34,574,409 | |
| | | | | | | | | | | | | | | | |
| Small Cap Equity Fund | | | | | | | | | | | | | | | | |
Common Stocks(a) | | $ | 31,141,015 | | | | — | | | | — | | | $ | 31,141,015 | |
Affiliated Investment Companies | | | 350,051 | | | | — | | | | — | | | | 350,051 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 31,491,066 | | | | — | | | | — | | | $ | 31,491,066 | |
| | | | | | | | | | | | | | | | |
| Tactical Enhanced Fund | | | | | | | | | | | | | | | | |
Repurchase Agreements | | | — | | | $ | 41,650,000 | | | | — | | | $ | 41,650,000 | |
| | | | | | | | | | | | | | | | |
Total | | | — | | | $ | 41,650,000 | | | | — | | | $ | 41,650,000 | |
| | | | | | | | | | | | | | | | |
| Tactical Growth Fund | | | | | | | | | | | | | | | | |
Exchange-Traded Funds | | $ | 132,293,388 | | | | — | | | | — | | | $ | 132,293,388 | |
Short-Term Securities | | | — | | | $ | 682,888,207 | | | | — | | | | 682,888,207 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 132,293,388 | | | $ | 682,888,207 | | | | — | | | $ | 815,181,595 | |
| | | | | | | | | | | | | | | | |
| Commodity Long/Short Strategy Fund | | | | | | | | | | | | | | | | |
Agency Pass-Through Securities(a) | | | — | | | $ | 32,142,331 | | | | — | | | $ | 32,142,331 | |
Asset-Backed Securities | | | — | | | | 581,329 | | | | — | | | | 581,329 | |
Collateralized Mortgage Obligations(a) | | | — | | | | 1,457,343 | | | | — | | | | 1,457,343 | |
Corporate Bonds(a) | | | — | | | | 20,424,695 | | | | — | | | | 20,424,695 | |
Municipal Bonds | | | — | | | | 6,393,917 | | | | — | | | | 6,393,917 | |
U.S. Treasury Bonds & Notes | | | — | | | | 20,891,370 | | | | — | | | | 20,891,370 | |
| | | | | | | | | | | | | | | | |
Total | | | — | | | $ | 81,890,985 | | | | — | | | $ | 81,890,985 | |
| | | | | | | | | | | | | | | | |
| Managed Futures Strategy Fund | | | | | | | | | | | | | | | | |
Exchange-Traded Funds | | $ | 6,451,578 | | | | — | | | | — | | | $ | 6,451,578 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 6,451,578 | | | | — | | | | — | | | $ | 6,451,578 | |
| | | | | | | | | | | | | | | | |
(a) For detailed descriptions of sector, industry, country or state, see the accompanying Portfolio of Investments.
Notes to Financial Statements (Unaudited)
| | | | | | | | | | | | | | | | |
| Other Financial Instruments(a) | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Credit Analysis Long/Short Fund | | | | | | | | | | | | | | | | |
| Liabilities | | | | | | | | | | | | | | | | |
Securities Sold Short | | | | | | | | | | | | | | | | |
Corporate Bonds | | | — | | | $ | (6,661,412 | ) | | | — | | | $ | (6,661,412 | ) |
U.S. Treasury Bonds & Notes | | | — | | | | (239,483,688 | ) | | | — | | | | (239,483,688 | ) |
| | | | | | | | | | | | | | | | |
Total | | | — | | | $ | (246,145,100 | ) | | | — | | | $ | (246,145,100 | ) |
| | | | | | | | | | | | | | | | |
| EM Corporate Debt Fund | | | | | | | | | | | | | | | | |
| Assets | | | | | | | | | | | | | | | | |
Forward Foreign Currency Contracts | | | — | | | $ | 155,269 | | | | — | | | $ | 155,269 | |
| Liabilities | | | | | | | | | | | | | | | | |
Credit Default Swaps | | | — | | | | (111,431 | ) | | | — | | | | (111,431 | ) |
| | | | | | | | | | | | | | | | |
Total | | | — | | | $ | 43,838 | | | | — | | | $ | 43,838 | |
| | | | | | | | | | | | | | | | |
| Endurance Long/Short Fund | | | | | | | | | | | | | | | | |
Securities Sold Short | | | | | | | | | | | | | | | | |
Common Stocks | | $ | (1,381,938 | ) | | | — | | | | — | | | $ | (1,381,938 | ) |
Options Written | | | (6,400 | ) | | | — | | | | — | | | | (6,400 | ) |
| | | | | | | | | | | | | | | | |
Total | | $ | (1,388,338 | ) | | | — | | | | — | | | $ | (1,388,338 | ) |
| | | | | | | | | | | | | | | | |
| Global Credit Long/Short Fund | | | | | | | | | | | | | | | | |
| Assets | | | | | | | | | | | | | | | | |
Credit Default Swaps | | | — | | | $ | 17,315 | | | | — | | | $ | 17,315 | |
Forward Foreign Currency Contracts | | | — | | | | 6,470 | | | | — | | | | 6,470 | |
| | | | | | | | | | | | | | | | |
Total | | | — | | | $ | 23,785 | | | | — | | | $ | 23,785 | |
| | | | | | | | | | | | | | | | |
| Select EM Dividend Fund | | | | | | | | | | | | | | | | |
| Assets | | | | | | | | | | | | | | | | |
Futures Contracts | | $ | 131,279 | | | | — | | | | — | | | $ | 131,279 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 131,279 | | | | — | | | | — | | | $ | 131,279 | |
| | | | | | | | | | | | | | | | |
| Small Cap Equity Fund | | | | | | | | | | | | | | | | |
| Liabilities | | | | | | | | | | | | | | | | |
Futures Contracts | | $ | (53,802 | ) | | | — | | | | — | | | $ | (53,802 | ) |
| | | | | | | | | | | | | | | | |
Total | | $ | (53,802 | ) | | | — | | | | — | | | $ | (53,802 | ) |
| | | | | | | | | | | | | | | | |
| Tactical Growth Fund | | | | | | | | | | | | | | | | |
| Liabilities | | | | | | | | | | | | | | | | |
Futures Contracts | | $ | (1,094,124 | ) | | | — | | | | — | | | $ | (1,094,124 | ) |
| | | | | | | | | | | | | | | | |
Total | | $ | (1,094,124 | ) | | | — | | | | — | | | $ | (1,094,124 | ) |
| | | | | | | | | | | | | | | | |
| Commodity Long/Short Strategy Fund | | | | | | | | | | | | | | | | |
| Assets | | | | | | | | | | | | | | | | |
Total Return Swap Contracts | | | — | | | $ | 754,701 | | | | — | | | $ | 754,701 | |
| | | | | | | | | | | | | | | | |
Total | | | — | | | $ | 754,701 | | | | — | | | $ | 754,701 | |
| | | | | | | | | | | | | | | | |
| Managed Futures Strategy Fund | | | | | | | | | | | | | | | | |
| Assets | | | | | | | | | | | | | | | | |
Total Return Swap Contracts | | | — | | | $ | 358,554 | | | | — | | | $ | 358,554 | |
| Liabilities | | | | | | | | | | | | | | | | |
Total Return Swap Contracts | | | — | | | | (5,389 | ) | | | — | | | | (5,389 | ) |
| | | | | | | | | | | | | | | | |
Total | | | — | | | $ | 353,165 | | | | — | | | $ | 353,165 | |
| | | | | | | | | | | | | | | | |
(a) Other financial instruments are derivative instruments not reflected in the Portfolio of Investments, such as written options, short sales, swap contracts, forward foreign currency contracts and futures contracts.
Notes to Financial Statements (Unaudited)
The Funds recognize transfers between levels as of the beginning of the annual period in which the transfer occurred. During the six months ended June 30, 2013, the only transfers of securities from Level 2 to Level 1 were for the International Dividend Fund and the International Small Companies Fund due to the Funds’ utilization of a fair valuation model provided by the Funds’ independent pricing vendor at December 31, 2012. The Funds’ valuation procedures set forth certain triggers which instruct when to use the fair valuation model, and the value assigned to a security by the fair valuation model is a determination of fair value made under the Funds’ valuation procedures and under the supervision of the Board of Trustees. During the six months ended June 30, 2013 there were no other transfers between Level 1 and Level 2 securities in any other fund.
The following is a reconciliation of the investments in which significant unobservable inputs (Level 3) were used in determining fair value:
| | | | |
| EM Corporate Debt Fund | | Corporate Bonds | |
Balance as of December 31, 2012 | | | — | |
Accrued discounts/premiums | | $ | 351,432 | |
Realized gain/(loss)(a) | | | — | |
Change in unrealized depreciation(a) | | | (401,507 | ) |
Purchases | | | 6,724,400 | |
Sales proceeds | | | — | |
Transfers into Level 3 | | | — | |
Transfers out of Level 3 | | | — | |
| | | | |
Balance as of June 30, 2013 | | $ | 6,674,325 | |
| | | | |
Net change in unrealized depreciation included in the Statement of Operations attributable to Level 3 investments still held at June 30, 2013 | | $ | (401,507 | ) |
| | | | |
| | | | |
| Global Credit Long/Short Fund | | Corporate Bonds | |
Balance as of December 31, 2012 | | | — | |
Accrued discounts/premiums | | $ | 44,227 | |
Realized gain/(loss)(a) | | | — | |
Change in unrealized depreciation(a) | | | (44,766 | ) |
Purchases | | | 788,039 | |
Sales proceeds | | | — | |
Transfers into Level 3 | | | — | |
Transfers out of Level 3 | | | — | |
| | | | |
Balance as of June 30, 2013 | | $ | 787,500 | |
| | | | |
Net change in unrealized depreciation included in the Statement of Operations attributable to Level 3 investments still held at June 30, 2013 | | $ | (44,766 | ) |
| | | | |
(a) Net realized gain/(loss) and net unrealized depreciation are included in the related amounts on investments in the Statement of Operations, as applicable.
For the six months ended June 30, 2013, the other Funds did not have transfers between the fair value levels designated in the preceding table and unobservable
inputs (Level 3) used in determining fair value. Therefore, a reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining fair value is not applicable.
Derivative Instruments and Hedging Activities: The following discloses the Funds’ use of derivative instruments and hedging activities.
The Funds’ investment objectives not only permit the Funds to purchase investment securities but also allow certain Funds to enter into various types of derivative contracts, including, but not limited to, futures contracts, swap contracts, forward foreign currency exchange contracts, and purchased and written options. In doing so, the Funds will employ strategies in differing combinations to permit them to increase, decrease, or change the level or types of exposure to market factors. Central to those strategies are features inherent to derivatives that make them more attractive for this purpose than equity or debt securities: they require little or no initial cash investment, they can focus exposure on only certain selected risk factors, and they may not require the ultimate receipt or delivery of the underlying security (or securities) to the contract. This may allow the Funds to pursue their objectives more quickly and efficiently than if they were to make direct purchases or sales of securities capable of affecting a similar response to market factors.
Market Risk Factors: In pursuit of their investment objectives, certain Funds may seek to use derivatives to increase or decrease their exposure to the following market risk factors:
Credit Risk: Credit risk is the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations.
Equity Risk: Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market.
Foreign Exchange Rate Risk: Foreign exchange rate risk relates to the change in the U.S. dollar value of a security held that is denominated in a foreign currency. The value of a foreign currency denominated security will decrease as the dollar appreciates against the currency, while the value of the foreign currency denominated security will increase as the dollar depreciates against the currency.
Interest Rate Risk: Interest rate risk refers to the fluctuations in value of fixed-income securities resulting from the inverse relationship between price and yield. For example, an increase in general interest rates will tend to reduce the market value of already issued fixed-income investments, and a decline in general interest rates will tend to increase the value of such investments. In addition, debt securities with longer maturities, which tend to have higher yields, are subject to potentially greater fluctuations in value from changes in interest rates than obligations with shorter maturities.
Notes to Financial Statements (Unaudited)
Risk of Investing in Derivatives: The Funds’ use of derivatives can result in losses due to unanticipated changes in the market risk factors and the overall market. In instances where the Funds are using derivatives to decrease or hedge exposures to market risk factors for securities held by the Funds, there are also risks that those derivatives may not perform as expected, resulting in losses for the combined or hedged positions.
Derivatives may have little or no initial cash investment relative to their market value exposure and therefore can produce significant gains or losses in excess of their cost. This use of embedded leverage allows the Funds to increase their market value exposure relative to their net assets and can substantially increase the volatility of the Funds’ performance.
Additional associated risks from investing in derivatives also exist and potentially could have significant effects on the valuation of the derivative and the Funds. Typically, the associated risks are not the risks that the Funds are attempting to increase or decrease exposure to, per their investment objectives, but are the additional risks from investing in derivatives.
Examples of these associated risks are liquidity risk, which is the risk that the Funds will not be able to settle the derivative in the open market in a timely manner, and counterparty credit risk, which is the risk that the counterparty will not fulfill its obligation to the Funds. Associated risks can be different for each type of derivative and are discussed by each derivative type in the notes that follow.
Forward Foreign Currency Exchange Contracts: Certain Funds invest in foreign currency exchange contracts to reduce the risks of fluctuating exchange rates and to generate returns uncorrelated to the other strategies employed. A forward foreign currency exchange contract involves an obligation to purchase or sell a specific currency at a future date, which may be a fixed number of days from the date of the contract agreed upon by the parties, at a price set at the time of the contract. By entering into a forward foreign currency exchange contract, the Fund “locks in” the exchange rate between the currency it will deliver and the currency it will receive for the duration of the contract. As a result, the Fund reduces its exposure to changes in the value of the currency it will deliver and increases its exposure to changes in the value of the currency it will exchange into. The Fund may enter into these contracts for the purpose of hedging against foreign exchange risk arising from the Fund’s investment or anticipated investment in securities denominated in foreign currencies. The Fund also may enter into these contracts for purposes of increasing exposure to a foreign currency or to shift exposure to foreign currency fluctuations from one country to another. The Fund may use one currency (or a basket of currencies) to hedge against adverse changes in the value of another currency (or a basket of currencies) when exchange rates between the two currencies are positively correlated. The unrealized appreciation/(depreciation) is reported in the Statement of Assets and Liabilities as receivable or payable and in the Statement of Operations within the change in unrealized appreciation/(depreciation). At contract close, the difference between the original cost
of the contract and the value at the close date is recorded as a realized gain/(loss) in the Statement of Operations. As of June 30, 2013, the EM Corporate Debt Fund and the Global Credit Long/Short Fund held forward foreign currency exchange contracts with a market value of $11,844,731 and $493,530, respectively. No other Funds held forward foreign currency exchange contracts at June 30, 2013.
Futures: Certain Funds may invest in futures contracts in accordance with their investment objectives. Each Fund does so for a variety of reasons including for cash management, hedging or non-hedging purposes in an attempt to achieve investment returns consistent with the Fund’s investment objective. A futures contract provides for the future sale by one party and purchase by another party of a specified quantity of the security or other financial instrument at a specified price and time. A futures contract on an index is an agreement pursuant to which two parties agree to take or make delivery of an amount of cash equal to the difference between the value of the index at the close of the last trading day of the contract and the price at which the index contract was originally written. Futures transactions may result in losses in excess of the amount invested in the futures contract. There can be no guarantee that there will be a correlation between price movements in the hedging vehicle and in the portfolio securities being hedged. An incorrect correlation could result in a loss on both the hedged securities in a Fund and the hedging vehicle so that the portfolio return might have been greater had hedging not been attempted. There can be no assurance that a liquid market will exist at a time when a Fund seeks to close out a futures contract or a futures option position. Lack of a liquid market for any reason may prevent a Fund from liquidating an unfavorable position, and the Fund would remain obligated to meet margin requirements until the position is closed. In addition, a Fund could be exposed to risk if the counterparties to the contracts are unable to meet the terms of their contracts. With exchange-traded futures, there is minimal counterparty credit risk to the Funds since futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default.
When a purchase or sale of a futures contract is made by a Fund, the Fund is required to deposit with its custodian (or broker, if legally permitted) a specified amount of liquid assets (“initial margin”). The margin required for a futures contract is set by the exchange on which the contract is traded and may be modified during the term of the contract. The initial margin is in the nature of a performance bond or good faith deposit on the futures contract that is returned to a Fund upon termination of the contract, assuming all contractual obligations have been satisfied. Each day a Fund may pay or receive cash, called “variation margin,” equal to the daily change in value of the futures contract. Such payments or receipts are recorded for financial statement purposes as unrealized gains or losses by a Fund. Variation margin does not represent a borrowing or loan by a Fund but is instead a settlement between a Fund and the broker of the amount one would owe the other if the futures contract expired. When the contract is closed, a Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the
Notes to Financial Statements (Unaudited)
value at the time it was closed. As of June 30, 2013, the Select EM Dividend Fund, the Small Cap Equity Fund and the Tactical Growth Fund held futures contracts outstanding with an unrealized gain/(loss) of $131,279, $(53,802) and $(1,094,124), respectively. No other Funds held futures contracts at June 30, 2013.
Option Writing/Purchasing: Certain Funds may write or purchase option contracts to adjust risk and return of their overall investment positions. When a Fund writes or purchases an option, an amount equal to the premium received or paid by the Fund is recorded as a liability or an asset and is subsequently adjusted to the current market value of the option written or purchased. Premiums received or paid from writing or purchasing options that expire unexercised are treated by the Fund on the expiration date as realized gains or losses. The difference between the premium and the amount
paid or received on affecting a closing purchase or sale transaction, including brokerage commissions, is also treated as a realized gain or loss. If an option is exercised, the premium paid or received is added to the cost of the purchase or proceeds from the sale in determining whether the Fund has realized a gain or loss on investment transactions. Risks from entering into option transactions arise from the potential inability of counterparties to meet the terms of the contracts, the potential inability to enter into closing transactions because of an illiquid secondary market and unexpected movements in security values. As of June 30, 2013, the Endurance Long/Short Fund held written options with a market value of $(6,400). As of June 30, 2013, the Endurance Long/Short Fund held purchased options with a market value of $11,600. No other Funds held purchased or written options at June 30, 2013.
Written option activity for the six months ended June 30, 2013 was as follows:
| | | | | | | | | | | | | | | | |
| | | Written Call Options | | | Written Put Options | |
| | | Number of
Contracts | | | Contract
Premium | | | Number of
Contracts | | | Contract
Premium | |
| Endurance Long/Short Fund | | | | | | | | | | | | | | | | |
Outstanding, at beginning of year December 31, 2012 | | | 0 | | | $ | — | | | | 240 | | | $ | (49,671 | ) |
| | | | | | | | | | | | | | | | |
Options written | | | (431 | ) | | | (51,158 | ) | | | 0 | | | | — | |
Options exercised or closed | | | 251 | | | | 23,605 | | | | (120 | ) | | | 37,195 | |
Options expired | | | 100 | | | | 16,396 | | | | (120 | ) | | | 12,476 | |
| | | | | | | | | | | | | | | | |
Outstanding, June 30, 2013 | | | (80 | ) | | $ | (11,157 | ) | | | 0 | | | $ | — | |
| | | | | | | | | | | | | | | | |
| | | | | | | | |
| | | Written Put Options | |
| | | Number of Contracts | | | Contract
Premium | |
| Global Credit Long/Short Fund | | | | | | | | |
Outstanding, at beginning of year December 31, 2012 | | | 0 | | | $ | — | |
| | | | | | | | |
Options written | | | 174 | | | | (4,531 | ) |
Options exercised or closed | | | (174 | ) | | | 4,531 | |
Options expired | | | 0 | | | | — | |
| | | | | | | | |
Outstanding, June 30, 2013 | | | 0 | | | $ | — | |
| | | | | | | | |
Swap Agreements: Certain Funds may enter into interest rate, index, equity, currency exchange rate, total return and credit default swap agreements, as well as purchase and sell options to enter into such swap agreements, for hedging and non-hedging purposes. These transactions would be entered into in an attempt to obtain a particular return when it is considered desirable to do so, possibly at a lower cost to a Fund than if the Fund had invested directly in the asset that yielded the desired return. Swap agreements are two-party contracts entered into primarily by institutional investors for periods ranging from a few weeks to more than one year. In a standard swap transaction, two parties agree to exchange the returns (or differentials in rates of return) earned or realized on particular predetermined investments or instruments, which may be adjusted for an interest factor. The gross returns to be exchanged or “swapped” between the parties are generally calculated with respect to a “notional amount” (i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate, in a particular foreign currency, or in a “basket” of securities representing a particular index).
Forms of swap agreements include interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”; interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified level, or “floor”; and interest rate collars, under which a
party sells a cap and purchases a floor, or vice versa, in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels.
Credit default swaps are a type of swap agreement in which the protection “buyer” is generally obligated to pay the protection “seller” an upfront and/or a periodic stream of payments over the term of the contract provided that no credit event, such as a default, on a reference obligation has occurred. The credit default swap agreement may have as reference obligations one or more securities that are not currently held by a Fund. If a credit event occurs, the seller generally must pay the buyer the “par value” (full notional value) of the swap in exchange for an equal face amount of deliverable obligations of the reference entity described in the swap, or the seller may be required to deliver the related net cash amount if the swap is cash settled. A Fund may be either the buyer or seller in the transaction. If a Fund is a buyer and no credit event occurs, the Fund may recover nothing if the swap is held through its termination date. However, if a credit event occurs, the buyer generally may elect to receive the full notional value of the swap in exchange for an equal face amount of deliverable obligations of the reference entity whose value may have significantly decreased. As a seller, a Fund generally receives an upfront payment and/or a fixed rate of income throughout the term of the swap provided that there is no credit event. As the seller, a Fund would effectively add leverage to its portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on
Notes to Financial Statements (Unaudited)
the notional amount of the swap. Credit default swap agreements involve greater risks than if a Fund had invested in the reference obligation directly since, in addition to general market risks, credit default swaps are subject to illiquidity risk, counterparty risk and credit risk. A Fund will enter into credit default swap agreements only with counterparties that meet certain standards of creditworthiness.
Total return swap agreements are contracts in which one party agrees to make periodic payments based on the change in market value of underlying assets, which may include a specified security, basket of securities, defined portfolios of bonds, loans and mortgages, or securities indexes during the specified period, in return for periodic payments based on a fixed or variable interest rate or the total return from other underlying assets or indices. Total return swap agreements may be used to obtain exposure to a security or market index without owning or taking physical custody of such security or component securities of a market index. Total return swap agreements may effectively add leverage to a Fund’s portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the swap. Total return swaps are a mechanism for the user to accept the economic benefits of asset ownership without utilizing the balance sheet. The other leg of the swap, usually the London Interbank Offered Rate (“LIBOR”), is spread to reflect the non-balance sheet nature of the product. Total return swaps can be designed with any underlying asset agreed between two parties. Typically no notional amounts are exchanged with total return swaps. Total return swap agreements entail the risk that a party will default on its payment obligations to a Fund thereunder. Swap agreements also entail the risk that a Fund will not be able to meet its obligation to the counterparty. Generally, a Fund will enter into total return swaps on a net basis (i.e., the two payment streams are netted out with the Fund receiving or paying, as the case may be, only the net amount of the two payments).
Most swap agreements entered into by a Fund calculate the obligations of the parties to the agreement on a “net basis.” Consequently, a Fund’s current obligations (or rights) under a swap agreement will generally be equal only to the net present value of amounts to be paid or received under the agreement based on the relative values of the positions held by each party to the agreement (the “net amount”). A Fund’s current obligations under a swap agreement will be accrued daily (offset against amounts owed to the Fund), and any accrued but unpaid net amounts owed to a swap counterparty will be covered in accordance with applicable regulatory requirements to limit any potential leveraging of a Fund’s portfolio. The Fund’s maximum risk of loss from counterparty credit risk is generally limited to the net payment to be received by the Funds and/or the termination value at the end of the contract. Obligations under swap agreements so covered will not be construed to be “senior securities” for purposes of the Funds’ investment restriction concerning senior securities.
Whether a Fund’s use of swap agreements will be successful in furthering its investment objective will depend on Forward Management’s ability to correctly predict
whether certain types of investments are likely to produce greater returns than other investments. Because they are two-party contracts and because they may have terms of greater than seven days, swap agreements may be considered to be illiquid investments. Moreover, a Fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty. A Fund will enter into swap agreements only with counterparties that meet certain standards for creditworthiness (generally, such counterparties would have to be eligible counterparties under the terms of the Fund’s repurchase agreement guidelines). Certain restrictions imposed on the Funds by the Code may limit a Fund’s ability to use swap agreements. The swap market is a relatively new market and is largely unregulated. It is possible that developments in the swap market, including potential government regulation, could adversely affect a Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements.
International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreements”) govern OTC financial derivative transactions entered into by a Fund and those counterparties. The ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral and events of default or termination. Events of termination include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement. Any election to terminate early could be material to the financial statements.
During the six months ended June 30, 2013, the EM Corporate Debt Fund, the Global Credit Long/Short Fund, the International Small Companies Fund, the Commodity Long/Short Strategy Fund and the Managed Futures Strategy Fund invested in swap agreements consistent with the Funds’ investment strategies to gain exposure to certain markets or indices. Swap agreements held at June 30, 2013 are disclosed in the Portfolio of Investments. No other Funds held swap agreements at June 30, 2013.
The values in the tables on the next page exclude the effects of cash collateral received or posted pursuant to these derivative contracts, and therefore are not necessarily representative of the Funds’ net exposure. Cash held as collateral is in a segregated account with the Funds’ custodian and is reflected in the Statement of Assets and Liabilities.
Notes to Financial Statements (Unaudited)
Balance Sheet – Fair Value of Derivatives Instruments as of June 30, 2013 (a):
| | | | | | | | | | | | |
Derivatives not Accounted for as Hedging Instruments | | Asset Derivatives Balance Sheet Location | | Fair Value | | | Liabilities Derivatives Balance Sheet Location | | Fair Value | |
| EM Corporate Debt Fund | | | | | | | | | | |
Foreign Exchange Contracts (Forward Foreign Currency Hedge Contracts) | | Unrealized gain on forward contracts | | $ | 155,269 | | | | | | — | |
Credit Contracts (Credit Default Swaps) | | | | | — | | | Swap premiums received | | $ | 238,783 | |
Credit Contracts (Credit Default Swaps) | | | | | — | | | Unrealized loss on swap contracts | | | 111,431 | |
| | | | | | | | | | | | |
Total | | | | $ | 155,269 | | | | | $ | 350,214 | |
| | | | | | | | | | | | |
| Endurance Long/Short Fund | | | | | | | | | | | | |
Equity Contracts (Options Purchased/Options Written) | | Investments, at value | | $ | 11,600 | | | Options written, at value | | $ | 6,400 | |
| | | | | | | | | | | | |
Total | | | | $ | 11,600 | | | | | $ | 6,400 | |
| | | | | | | | | | | | |
| Global Credit Long/Short Fund | | | | | | | | | | | | |
Foreign Exchange Contracts (Forward Foreign Currency Hedge Contracts) | | Unrealized gain on forward contracts | | $ | 6,470 | | | | | | — | |
Credit Contracts (Credit Default Swaps) | | Swap premiums paid | | | 100,648 | | | | | | — | |
Credit Contracts (Credit Default Swaps) | | Unrealized gain on swap contracts | | | 17,315 | | | | | | — | |
| | | | | | | | | | | | |
Total | | | | $ | 124,433 | | | | | | — | |
| | | | | | | | | | | | |
| International Dividend Fund | | | | | | | | | | | | |
Equity Contracts (Warrants) | | Investments, at value | | $ | 1,128 | | | | | | — | |
| | | | | | | | | | | | |
Total | | | | $ | 1,128 | | | | | | — | |
| | | | | | | | | | | | |
| Select EM Dividend Fund | | | | | | | | | | | | |
Equity Contracts (Warrants) | | Investments, at value | | $ | 2,303 | | | | | | — | |
Equity Contracts (Futures Contracts) | | Variation margin receivable | | | 131,279 | | | | | | — | |
| | | | | | | | | | | | |
Total | | | | $ | 133,582 | | | | | | — | |
| | | | | | | | | | | | |
| Small Cap Equity Fund | | | | | | | | | | | | |
Equity Contracts (Futures Contracts) | | | | | — | | | Variation margin payable | | $ | 53,802 | |
| | | | | | | | | | | | |
Total | | | | | — | | | | | $ | 53,802 | |
| | | | | | | | | | | | |
| Tactical Growth Fund | | | | | | | | | | | | |
Equity Contracts (Futures Contracts) | | | | | — | | | Variation margin payable | | $ | 1,094,124 | |
| | | | | | | | | | | | |
Total | | | | | — | | | | | $ | 1,094,124 | |
| | | | | | | | | | | | |
| Commodity Long/Short Strategy Fund | | | | | | | | | | | | |
Equity Contracts (Total Return Swaps) | | Unrealized gain on swap contracts | | $ | 754,701 | | | Unrealized loss on swap contracts | | | — | |
| | | | | | | | | | | | |
Total | | | | $ | 754,701 | | | | | | — | |
| | | | | | | | | | | | |
| Managed Futures Strategy Fund | | | | | | | | | | | | |
Equity Contracts (Total Return Swaps) | | Unrealized gain on swap contracts | | $ | 358,554 | | | Unrealized loss on swap contracts | | $ | 5,389 | |
| | | | | | | | | | | | |
Total | | | | $ | 358,554 | | | | | $ | 5,389 | |
| | | | | | | | | | | | |
(a) For open derivative instruments as of June 30, 2013, see the Portfolio of Investments. The Portfolio of Investments is representative of the activity for the six months ended June 30, 2013 for all Funds.
Notes to Financial Statements (Unaudited)
The gains/(losses) in the table below are included in the “Net realized gain/(loss)” or “Net change in unrealized gain/(loss)” on the Statement of Operations.
The Effect of Derivatives Instruments on the Statement of Operations for the six months ended June 30, 2013:
| | | | | | | | | | |
Derivatives not Accounted for as Hedging Instruments | | Location of Gains/(Loss) on Derivatives Recognized in Income | | Realized
Gain/(Loss)
on Derivatives Recognized in Income | | | Change in
Unrealized
Gain/(Loss)
on Derivatives
Recognized in
Income | |
| EM Corporate Debt Fund | | | | | | | | | | |
Credit Contracts (Credit Default Swaps) | | Net realized loss on swap contracts/Net change in unrealized appreciation on swap contracts | | $ | (781,160 | ) | | $ | 359,218 | |
Foreign Exchange Contracts (Forward Foreign Currency Hedge Contracts) | | Net realized loss on foreign currency/Net unrealized appreciation/(depreciation) on translation of assets and liabilities in foreign currency transactions | | | 0 | | | | 155,269 | |
| | | | | | | | | | |
Total | | | | $ | (781,160 | ) | | $ | 514,487 | |
| | | | | | | | | | |
| Emerging Markets Fund | | | | | | | | | | |
Equity Contracts (Futures Contracts) | | Net realized loss on futures contracts | | $ | (37,736 | ) | | | — | |
| | | | | | | | | | |
Total | | | | $ | (37,736 | ) | | | — | |
| | | | | | | | | | |
| Endurance Long/Short Fund | | | | | | | | | | |
Equity Contracts (Options Purchased) | | Net realized gain on investments/Net change in unrealized appreciation/(depreciation) on investments | | $ | (94,119 | ) | | $ | 16,885 | |
Equity Contracts (Options Written) | | Net realized gain on written option contracts/Net change in unrealized appreciation on written option contracts | | | 74,024 | | | | (8,074 | ) |
| | | | | | | | | | |
Total | | | | $ | (20,095 | ) | | $ | 8,811 | |
| | | | | | | | | | |
| Global Credit Long/Short Fund | | | | | | | | | | |
Interest Rate Contracts (Purchased Options) | | Net realized gain on investments/Net change in unrealized appreciation/(deprecation) on investments | | $ | (7,375 | ) | | | — | |
Equity Contracts (Options Written) | | Net realized gain on written option contracts/Net change in unrealized appreciation/(depreciation) on written option contracts | | | 3,133 | | | | — | |
Credit Contracts (Credit Default Swaps) | | Net realized loss on swap contracts/Net change in unrealized appreciation on swap contracts | | | (413,736 | ) | | $ | 322,734 | |
Foreign Exchange Contracts (Forward Foreign Currency Hedge Contracts) | | Net realized loss on foreign currency/Net unrealized appreciation/(depreciation) on translation of assets and liabilities in foreign currency transactions | | | — | | | | 77,458 | |
| | | | | | | | | | |
Total | | | | $ | (417,978 | ) | | $ | 400,192 | |
| | | | | | | | | | |
| International Dividend Fund | | | | | | | | | | |
Equity Contracts (Warrants) | | Net realized gain on investments / Net change in unrealized depreciation on investments | | $ | 18,506 | | | $ | (9,271 | ) |
Equity Contracts (Futures Contracts) | | Net realized loss on futures contracts | | | (871,955 | ) | | | — | |
| | | | | | | | | | |
Total | | | | $ | (853,449 | ) | | $ | (9,271 | ) |
| | | | | | | | | | |
| Select EM Dividend Fund | | | | | | | | | | |
Equity Contracts (Warrants) | | Net realized gain on investments/Net change in unrealized appreciation/(depreciation) on investments | | $ | 3,202 | | | $ | (2,955 | ) |
Equity Contracts (Futures Contracts) | | Net realized gain/(loss) on futures contracts/Net change in unrealized appreciation/(depreciation) on futures contracts | | | (671,767 | ) | | | 131,279 | |
| | | | | | | | | | |
Total | | | | $ | (668,565 | ) | | $ | 128,324 | |
| | | | | | | | | | |
Notes to Financial Statements (Unaudited)
| | | | | | | | | | |
Derivatives not Accounted for as Hedging Instruments | | Location of Gains/(Loss) on Derivatives Recognized in Income | | Realized
Gain/(Loss)
on Derivatives Recognized in Income | | | Change in
Unrealized
Gain/(Loss)
on Derivatives
Recognized in
Income | |
| Small Cap Equity Fund | | | | | | | | | | |
Equity Contracts (Futures Contracts) | | Net realized gain/(loss) on futures contracts/Net change in unrealized appreciation/(depreciation) on futures contracts | | $ | 187,261 | | | $ | (93,821 | ) |
| | | | | | | | | | |
Total | | | | $ | 187,261 | | | $ | (93,821 | ) |
| | | | | | | | | | |
| Tactical Growth Fund | | | | | | | | | | |
Equity Contracts (Options Purchased) | | Net realized gain/(loss) on investments/Net change in unrealized depreciation on investments | | $ | (5,036,716 | ) | | $ | 1,234,562 | |
Equity Contracts (Futures Contracts) | | Net realized gain on futures contracts / Net change in unrealized depreciation on futures contracts | | | 66,189,268 | | | | (830,399 | ) |
| | | | | | | | | | |
Total | | | | $ | 61,152,552 | | | $ | 404,163 | |
| | | | | | | | | | |
| Commodity Long/Short Strategy Fund | | | | | | | | | | |
Equity Contracts (Total Return Swaps) | | Net realized gain on swap contracts/Net change in unrealized appreciation on swap contracts | | $ | 7,389,907 | | | $ | 5,032,269 | |
| | | | | | | | | | |
Total | | | | $ | 7,389,907 | | | $ | 5,032,269 | |
| | | | | | | | | | |
| Managed Futures Strategy Fund | | | | | | | | | | |
Equity Contracts (Total Return Swaps) | | Net realized gain on swap contracts/Net change in unrealized appreciation on swap contracts | | $ | 160,423 | | | $ | 308,672 | |
| | | | | | | | | | |
Total | | | | $ | 160,423 | | | $ | 308,672 | |
| | | | | | | | | | |
Certain derivative contracts and repurchase agreements are executed under either standardized netting agreements or, for exchange-traded derivatives, the relevant contracts for a particular exchange which contain enforceable netting provisions. A derivative netting arrangement creates an enforceable right of set-off that becomes effective, and affects the realization of settlement on individual assets, liabilities and collateral amounts, only following a specified event of default or early termination. Default events may include the failure to make payments or deliver securities timely, material adverse changes in financial condition or insolvency, the breach of minimum regulatory capital requirements, or loss of license, charter or other legal authorization necessary to perform under the contract.
Notes to Financial Statements (Unaudited)
The following table presents financial instruments that are subject to enforceable netting arrangements or other similar agreements as of June 30, 2013:
Offsetting of Financial Assets and Derivative Assets:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Gross Amounts
of Recognized
Assets | | | Gross
Amounts
Offset In the
Statement of
Assets and
Liabilities | | | Net Amounts
Presented in the
Statement of
Assets and
Liabilities | | | Gross Amounts Not Offset in the
Statement of Assets and Liabilities | |
| | | | | | Financial
Instruments(a) | | | Cash Collateral
Received(a) | | | Net Amount | |
| Global Credit Long/Short Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Credit Contracts (Credit Default Swaps) | | $ | 117,963 | | | $ | — | | | $ | 117,963 | | | $ | — | | | $ | — | | | $ | 117,963 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 117,963 | | | $ | — | | | $ | 117,963 | | | $ | — | | | $ | — | | | $ | 117,963 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Tactical Enhanced Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Repurchase Agreements | | $ | 41,650,000 | | | $ | — | | | $ | 41,650,000 | | | $ | (41,650,000 | ) | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 41,650,000 | | | $ | — | | | $ | 41,650,000 | | | $ | (41,650,000 | ) | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Commodity Long/Short Strategy Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Equity Contracts (Total Return Swaps) | | $ | 754,701 | | | $ | — | | | $ | 754,701 | | | $ | — | | | $ | — | | | $ | 754,701 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 754,701 | | | $ | — | | | $ | 754,701 | | | $ | — | | | $ | — | | | $ | 754,701 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Managed Futures Strategy Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Equity Contracts (Total Return Swaps) | | $ | 358,554 | | | $ | — | | | $ | 358,554 | | | $ | — | | | $ | — | | | $ | 358,554 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 358,554 | | | $ | — | | | $ | 358,554 | | | $ | — | | | $ | — | | | $ | 358,554 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Offsetting of Financial Liabilities and Derivative Liabilities: | |
| | | Gross Amounts
of Recognized
Liabilities | | | Gross
Amounts
Offset In the
Statement of
Assets and
Liabilities | | | Net Amounts
Presented in the
Statement of
Assets and
Liabilities | | | Gross Amounts Not Offset in the
Statement of Assets and Liabilities | |
| | | | | | Financial
Instruments(a) | | | Cash Collateral
Pledged(a) | | | Net Amount | |
| EM Corporate Debt Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Credit Contracts (Credit Default Swaps) | | $ | 350,214 | | | $ | — | | | $ | 350,214 | | | $ | — | | | $ | (350,214 | ) | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 350,214 | | | $ | — | | | $ | 350,214 | | | $ | — | | | $ | (350,214 | ) | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Managed Futures Strategy Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Equity Contracts (Total Return Swaps) | | $ | 5,389 | | | $ | — | | | $ | 5,389 | | | $ | — | | | $ | (5,389 | ) | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 5,389 | | | $ | — | | | $ | 5,389 | | | $ | — | | | $ | (5,389 | ) | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
(a) These amounts are limited to the derivative asset/liability balance and, accordingly, do not include excess collateral received/pledged.
Notes to Financial Statements (Unaudited)
Warrants: Certain Funds may invest in warrants. A Fund may purchase warrants issued by domestic and foreign companies to purchase newly created equity securities consisting of common and preferred stock. Warrants are securities that give the holder the right, but not the obligation, to purchase equity issues of the company issuing the warrants, or a related company, at a fixed price either on a certain date or during a set period. The equity security underlying a warrant is authorized at the time the warrant is issued or is issued together with the warrant.
Investing in warrants can provide a greater potential for profit or loss than an equivalent investment in the underlying security; and, thus, can be a speculative investment. At the time of issue, the cost of a warrant is substantially less than the cost of the underlying security itself, and price movements in the underlying security are generally magnified in the price movements of the warrant. This leveraging effect enables the investor to gain exposure to the underlying security with a relatively low capital investment.
This leveraging increases an investor’s risk, as a complete loss of the amount invested in the warrant may result in the event of a decline in the value of the underlying security. In addition, the price of a warrant tends to be more volatile than, and may not correlate exactly to, the price of the underlying security. If the market price of the underlying security is below the exercise price of the warrant on its expiration date, the warrant will generally expire without value. The value of a warrant may decline because of a decline in the value of the underlying security, the passage of time, changes in interest rates or in the dividend or other policies of the company whose equity underlies the warrant, a change in the perception as to the future price of the underlying security, or any combination thereof. Warrants generally pay no dividends and confer no voting or other rights other than to purchase the underlying security. As of June 30, 2013 the International Dividend Fund and the Select EM Dividend Fund held warrants with a market value of $1,128 and $2,303, respectively. No other Funds held warrants at June 30, 2013.
Cash Management Transactions: The Funds may hold cash balances in bank demand deposit accounts with the Funds’ custodian, Citibank, N.A. (“Citibank”). Such amounts are readily accessible to purchase investments or pay Fund expenses. The Funds consider liquid assets deposited in a bank demand deposit account to be cash equivalents. Cash and cash equivalents are valued at cost plus any accrued interest. The Funds may maintain demand deposit accounts that have an aggregate value in excess of Federal Deposit Insurance Corporation (FDIC) insurance limits. As a result, the Funds may be exposed to credit risk in the event of insolvency or other failure of Citibank to meet its obligations.
Leverage: The Global Credit Long/Short Fund, the International Dividend Fund and the Select EM Dividend Fund can purchase securities with borrowed money,
including bank overdrafts (a form of leverage). The Funds may borrow amounts up to one-third of the value of its assets. Leverage exaggerates the effect on the net asset value of any increase or decrease in the market value of the Funds’ portfolio securities. These borrowings will be subject to interest costs, which may or may not be recovered by appreciation of the securities purchased. In certain cases, interest costs may exceed the return received on the securities purchased.
The Global Credit Long/Short Fund, and the Select EM Dividend Fund maintain separate lines of credit with BNP Paribas (acting through its New York Branch). The Funds are charged interest of 1.20% above the one-month LIBOR rate for borrowing under the agreements. The International Dividend Fund and the Select EM Dividend Fund maintain separate lines of credit with Bank of America Merrill Lynch. The Funds are charged interest of 1.00% above the one-month LIBOR rate for borrowing under the agreements and are charged a commitment fee on the average daily undrawn balance of the line of credit at the rate of 0.45% per annum.
The Global Credit Long/Short Fund, the International Dividend Fund and the Select EM Dividend Fund have pledged a portion of its investment securities as the collateral for the line of credit. As of June 30, 2013, the market value of the investment securities pledged as collateral totaled $0, $98,259,468 and $10,534,146, respectively, and the borrowed amounts on the lines of credit are $0, $25,000,000, and $5,000,000, respectively. The average interest rate charged and the average outstanding demand loan payable for the six months ended June 30, 2013 were as follows:
| | | | | | | | |
| Fund | | Average
Interest Rate | | | Average Outstanding
Demand Loan Payable | |
Global Credit Long/Short Fund | | | 0.00 | % | | $ | 0 | |
International Dividend Fund | | | 1.19 | % | | $ | 25,000,000 | |
Select EM Dividend Fund | | | 1.36 | % | | $ | 3,257,203 | |
Investment in the Forward U.S. Government Money Fund: The Funds are permitted to invest daily available cash balances in an affiliated money market fund. The Funds may invest the available cash in Class Z shares of the Forward U.S. Government Money Fund (“U.S. Government Money Fund”) to seek current income while preserving liquidity. The U.S. Government Money Fund is a registered open-end management investment company, regulated as a money market fund under the 1940 Act. When applicable, the Funds’ investment in the U.S. Government Money Fund is included in the Portfolio of Investments. Shares of the U.S. Government Money Fund are valued at their net asset value per share. As a shareholder, the Funds are indirectly subject to the proportional share of the U.S. Government Money Fund Class Z expenses, including its management fee. The Advisor will waive fees and/or reimburse expenses in an amount equal to the indirect management fees incurred through the Funds’ investment in the U.S. Government Money Fund.
Notes to Financial Statements (Unaudited)
The Small Cap Equity Fund invested in Class Z shares of the U.S. Government Money Fund during the six months ended June 30, 2013, as follows:
| | | | | | | | | | | | | | | | | | | | | | |
Beginning
Shares | | | Gross
Purchases | | | Gross
Sales | | | Ending
Shares | | | Value
6/30/13 | | | Income | |
| | 900,051 | | | | — | | | | (550,000 | ) | | | 350,051 | | | $ | 350,051 | | | $ | 25 | |
During the six months ended June 30, 2013, the Advisor waived fees and/or reimbursed the Small Cap Equity Fund for the U.S. Government Money Fund management fees in the amount of $151.
Investments in a Wholly-Owned Subsidiary: The Commodity Long/Short Strategy Fund seeks exposure to the commodity markets primarily through investments in commodity-linked derivative instruments, including commodity index-linked notes (sometimes referred to as “structured notes”), swap agreements, commodity options, futures and options on futures, and through investments in the Forward Commodity Long/Short Strategy (Cayman) Fund Ltd., a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands. The Managed Futures Strategy Fund seeks exposure to the futures markets and will generally invest in futures-related instruments that track the performance of futures contracts included in the Credit Suisse Multi-Asset Futures Strategy Index and through investments in the Forward Managed Futures Strategy (Cayman) Fund Ltd., a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands (together with the Forward Commodity Long/Short Strategy (Cayman) Fund, Ltd., each a “Subsidiary” and collectively, the “Subsidiaries”). Forward Management acts as Investment Advisor to the Funds and to each Subsidiary. Each Fund is the sole shareholder of each respective Subsidiary, and it is intended that each Fund will remain the sole shareholder and will continue to control each respective Subsidiary.
Investments in each Subsidiary are expected to provide the Funds with exposure to the commodity markets within the limitations of Subchapter M of the Code, and recent IRS rulings. If the IRS were to change its position or otherwise determine that income derived from certain commodity-linked notes or from a Fund’s investment in its Subsidiary does not constitute qualifying income, and if such positions were upheld, or if future legislation or Treasury regulations were to adversely affect the tax treatment of such investments, a Fund might cease to qualify as a regulated investment company and would be required to reduce its exposure to such investments, which might result in difficulty in implementing its investment strategy.
Basis for Consolidation for the Commodity Long/Short Strategy Fund and the Managed Futures Strategy Fund: The Subsidiaries, which are Cayman Islands exempted companies, were incorporated on October 12, 2010 and October 27, 2011, respectively, as wholly owned subsidiaries acting as an investment vehicle for the Funds in order to effect certain investments for the Funds consistent with the Funds’ investment objectives. As wholly-owned subsidiaries of the Funds, all assets, liabilities, income and expenses of the portfolios are consolidated in the financial statements and
financial highlights of the Funds. As of June 30, 2013, net assets of the Commodity Long/Short Strategy Fund were $125,283,054 of which $30,547,601 or 24.38% represented the Fund’s ownership of all issued shares and voting rights of the Fund’s Subsidiary and net assets of the Managed Futures Strategy Fund were $10,813,387 of which $2,565,790 or 23.73% represented the Fund’s ownership of all issued shares and voting rights of the Fund’s Subsidiary.
Distributions to Shareholders: Dividends from net investment income, if any, are declared and paid annually for the Commodity Long/Short Strategy Fund, the Emerging Markets Fund, the Endurance Long/Short Strategy Fund, the International Small Companies Fund, the Managed Futures Strategy Fund, the Small Cap Equity Fund, the Tactical Enhanced Fund and the Tactical Growth Fund; quarterly for the Credit Analysis Long/Short Fund, the EM Corporate Debt Fund, and the Global Credit Long/Short Fund; and monthly for the Global Dividend Fund, the International Dividend Fund, and the Select EM Dividend Fund. Prior to May 1, 2013, dividends from net investment income, if any, were declared and paid annually for the Global Credit Long/Short Fund. For all Funds, net realized capital gains, if any, are distributed annually. There is no guarantee that the companies held by the Funds will continue paying dividends.
Income and capital gain distributions are determined in accordance with Federal income tax regulations, which may differ from GAAP. Therefore, the source of the Funds’ distributions may be shown in the accompanying financial statements as either from or in excess of net investment income or net realized gain or from paid-in-capital depending upon the type of book/tax differences that may exist.
Based on information provided by the REITs, the Funds recharacterize distributions received from REIT investments based on information provided by the REITs into the following categories: ordinary income, long-term capital gains, and return of capital. If information is not available on a timely basis from the REITs, the recharacterization will be estimated based on available information that may include the previous year’s allocation. If new or additional information becomes available from the REITs at a later date, a recharacterization will be made in the following annual financial reporting period. There is no guarantee that the REITS held by the Funds will continue to pay dividends. The Funds record as dividend income the amount recharacterized as ordinary income and as realized gain the amount recharacterized as long-term capital gain in the Statement of Operations, and the amount recharacterized as a return of capital as a reduction to the cost of investments in the Statement of Assets and Liabilities and in the Portfolio of Investments. These recharacterizations are reflected in the accompanying financial statements.
Federal Income Taxes: The Trust treats each Fund as a separate entity for Federal income tax purposes. Each Fund intends to continue to qualify each year as a “regulated investment company” under Subchapter M of the Code. By so qualifying, each Fund will not be subject to Federal income taxes to the extent that it distributes substantially all of its taxable or tax-exempt income, if any, for its tax year ending
Notes to Financial Statements (Unaudited)
December 31. In addition, by distributing in each calendar year substantially all of its net investment income, capital gains and certain other amounts, if any, each Fund will not be subject to a Federal excise tax. Therefore, no provision is made by the Funds for Federal income or excise taxes. Withholding taxes on foreign dividends are paid or provided for in accordance with the applicable country’s tax rules and rates. Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to differing treatment for items such as non-U.S. currency gains and losses, short-term capital gains and losses, capital losses related to wash sales, unrealized appreciation of certain investments in non-U.S. securities, and income on certain investments. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the Funds for financial reporting purposes. The Funds may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
The Forward Commodity Long/Short Strategy (Cayman) Fund Ltd. and the Forward Managed Futures Strategy (Cayman) Fund Ltd. (the “Subsidiaries”) are each classified as a controlled foreign corporation under the Code. Therefore, the Commodity Long/Short Strategy Fund and the Managed Futures Strategy Fund are required to increase its taxable income by its share of the Subsidiaries’ income. Net losses of the Subsidiaries cannot be deducted by their respective Funds in the current period nor carried forward to offset taxable income in future periods.
As of and during the six months ended June 30, 2013, and for all open tax years, the Funds did not have a liability for any unrecognized tax benefits in the accompanying financial statements. The Funds recognize the interest and penalties, if any, related to the unrecognized tax benefits as income tax expense in the Statement of Operations. During the period, the Funds did not incur any interest or penalties. Open tax years are those that remain subject to examination and are based on each tax jurisdiction statute of limitation.
Expenses: Expenses that are specific to a Fund or class of shares of a Fund are charged directly to that Fund or share class. Expenses that are common to all Funds generally are allocated among the Funds in proportion to their average daily net assets. For Funds offering multiple share classes, all of the realized and unrealized gains and losses and net investment income, other than class specific expenses, are allocated daily to each class in proportion to its average daily net assets. Fees provided under the distribution (Rule 12b-1) and/or shareholder services plans for a particular class of a Fund are charged to the operations of such class.
ReFlow Transactions: During the period from May 17, 2013 to June 30, 2013, certain Funds participated in ReFlow, a program designed to provide an alternative liquidity source for mutual funds experiencing redemptions of their shares. In order to pay cash to shareholders who redeem their shares on a given day, a mutual fund typically must hold cash in its portfolio, liquidate portfolio securities, or borrow money, all of which impose certain costs on the fund. ReFlow provides participating mutual funds with another source of cash by standing ready to purchase shares from a fund equal to the amount of the fund’s net redemptions on a given day. ReFlow then generally redeems those shares when the fund experiences net sales. In return for this service, the fund will pay a fee to ReFlow at a rate determined by a daily auction with other participating mutual funds. The costs to a Fund for participating in ReFlow are generally expected to be influenced by and comparable to the cost of other sources of liquidity, such as the Fund’s short-term lending arrangements or the costs of selling portfolio securities to meet redemptions. ReFlow is prohibited from acquiring more than 3% of the outstanding voting securities of any Fund, but in no case will ReFlow’s position in any fund exceed $15 million.
ReFlow Services, LLC (“ReFlow Services”), the entity which facilitates the day-to-day operations of ReFlow, is under common control with Forward Management. In light of this, the Board of Trustees has adopted certain procedures to govern the Funds’ participation in ReFlow. ReFlow fees that were incurred by the Funds during the period ended June 30, 2013 are recorded in the Statement of Operations.
Notes to Financial Statements (Unaudited)
3. Investment Management Services
The Trust has entered into an investment management agreement with Forward Management pursuant to which Forward Management provides investment management services to the Funds and is entitled to receive a fee calculated daily and payable monthly at the following annual rates, as of June 30, 2013, based on each Fund’s average daily net assets:
| | |
| Fund | | Advisory fee |
Credit Analysis Long/Short Fund | | 1.50% |
| |
EM Corporate Debt Fund | | 0.70% up to and including $500 million |
| | 0.64% over $500 million up to and including $1 billion |
| | 0.58% over $1 billion up to and including $5 billion |
| | 0.52% over $5 billion |
| |
Emerging Markets Fund | | 1.10% |
| |
Endurance Long/Short Fund | | 1.50% |
| |
Global Credit Long/Short Fund | | 1.50% |
| |
Global Dividend Fund | | 0.80% up to and including $500 million |
| | 0.725% over $500 million up to and including $1 billion |
| | 0.675% over $1 billion |
| |
International Dividend Fund | | 0.85% up to and including $250 million |
| | 0.75% over $250 million up to and including $1 billion |
| | 0.65% over $1 billion |
| |
International Small Companies Fund | | 1.00% up to and including $1 billion |
| | 0.95% over $1 billion |
| |
Select EM Dividend Fund | | 1.10% |
| |
Small Cap Equity Fund | | 0.85% |
| |
Tactical Enhanced Fund | | 1.15% |
| |
Tactical Growth Fund | | 1.15% up to and including $1 billion |
| | 1.05% over $1 billion |
| |
Commodity Long/Short Strategy Fund | | 1.00%(a) |
| |
Managed Futures Strategy Fund | | 1.00%(a) |
(a) The Commodity Long/Short Strategy Fund and the Managed Futures Strategy Fund may invest a portion of its assets in separate wholly-owned Cayman subsidiaries. The Subsidiaries have entered into separate advisory agreements with Forward Management for the management of the Subsidiaries portfolios’ pursuant to which each Subsidiary is obligated to pay Forward Management a management fee at the same rate that the Fund pays Forward Management for services provided to the Fund. Forward Management is contractually obligated to waive the management fee it receives from the Fund in an amount equal to the management fee paid to Forward Management by the Subsidiary. This waiver arrangement may not be terminated by Forward Management as long as its advisory agreement with the Subsidiary is in place.
The Trust and Forward Management have entered into investment sub-advisory agreements with Cedar Ridge Partners, LLC (“Cedar Ridge”) for the Credit Analysis Long/Short Fund; SW Asset Management, LLC (“SW”) for the EM Corporate Debt Fund and the Global Credit Long/Short Fund; Pictet Asset Management Limited (“PAM Ltd”) for the International Small Companies Fund and Broadmark Asset Management, LLC (“Broadmark”) for the Tactical Growth Fund (each a “Sub-Advisor” and, collectively, the
Notes to Financial Statements (Unaudited)
“Sub-Advisors”). Pursuant to these agreements, the Sub-Advisors provide investment sub-advisory services to the Funds and are entitled to receive a fee from Forward Management calculated daily and payable monthly at the following annual rates, as of June 30, 2013, based on each Fund’s average daily net assets:
| | |
| Fund | | Sub-Advisory Fee |
Credit Analysis Long/Short Fund | | 1.00% |
| |
EM Corporate Debt Fund | | 0.35% |
| |
Global Credit Long/Short Fund | | 1.00% |
| |
International Small Companies Fund | | 0.60% |
| |
Tactical Growth Fund | | 0.60% up to and including $1 billion 0.55% over $1 billion |
Expense Limitations: Forward Management has entered into Expense Limitation Agreements with certain Funds, which limits the total expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired fund fees and expenses, expenses of the subsidiary and extraordinary expenses) of certain classes of certain Funds, through a specified date. In addition, Forward Management may voluntarily reimburse additional expenses of certain classes of certain Funds. Following are the annual expense limitation rates and expiration dates for the Funds with an Expense Limitation Agreement:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Fund | | Investor
Class | | | Institutional
Class | | | Class A | | | Class C | | | Advisor
Class | | | Class Z | | | End Date | |
Credit Analysis Long/Short Fund(a) | | | 1.99 | % | | | 1.64 | % | | | 2.14 | % | | | 2.59 | % | | | 1.69 | % | | | N/A | | | | April 30, 2014 | |
EM Corporate Debt Fund(b) | | | 1.34 | % | | | 0.99 | % | | | N/A | | | | 1.94 | % | | | N/A | | | | N/A | | | | April 30, 2014 | |
Emerging Markets Fund(c) | | | 1.74 | % | | | 1.39 | % | | | N/A | | | | N/A | | | | 1.44 | % | | | N/A | | | | April 30, 2014 | |
Endurance Long/Short Fund | | | 2.34 | % | | | 1.99 | % | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | April 30, 2014 | |
Global Credit Long/Short Fund(d) | | | 2.39 | % | | | 2.04 | % | | | N/A | | | | 2.99 | % | | | 2.09 | % | | | N/A | | | | April 30, 2014 | |
Global Dividend Fund(e) | | | 1.34 | % | | | 0.99 | % | | | 1.49 | % | | | N/A | | | | N/A | | | | N/A | | | | April 30, 2014 | |
International Dividend Fund(f) | | | 1.34 | % | | | 0.99 | % | | | 1.49 | % | | | 1.94 | % | | | 1.04 | % | | | N/A | | | | April 30, 2014 | |
Managed Futures Strategy Fund | | | 1.70 | % | | | 1.35 | % | | | N/A | | | | 2.30 | % | | | N/A | | | | 1.30 | % | | | April 30, 2014 | |
Select EM Dividend Fund(g) | | | 1.74 | % | | | 1.39 | % | | | N/A | | | | 2.34 | % | | | 1.44 | % | | | N/A | | | | April 30, 2014 | |
Small Cap Equity Fund(h) | | | 1.44 | % | | | 1.14 | % | | | N/A | | | | N/A | | | | 1.19 | % | | | N/A | | | | April 30, 2014 | |
Tactical Enhanced Fund(i) | | | 1.84 | % | | | 1.49 | % | | | 1.99 | % | | | 2.44 | % | | | 1.54 | % | | | N/A | | | | April 30, 2014 | |
(a) From January 1, 2013 to April 30, 2013, Forward Management had a contractual obligation to waive any portion of its fees in amounts necessary to limit the Credit Analysis Long/Short Fund’s Advisor Class shares’ operating expenses to an annual rate of 1.64%.
(b) From January 1, 2013 to April 30, 2013, Forward Management had a contractual obligation to waive any portion of its fees in amounts necessary to limit the EM Corporate Debt Fund’s Investor Class shares’ operating expenses to an annual rate of 1.39%.
(c) From January 1, 2013 to April 30, 2013, Forward Management had a contractual obligation to waive any portion of its fees in amounts necessary to limit the Emerging Market Fund’s Investor Class and Advisor Class shares’ operating expenses to an annual rate of 1.79% and 1.39%, respectively.
(d) From January 1, 2013 to April 30, 2013, Forward Management had a contractual obligation to waive any portion of its fees in amounts necessary to limit the Global Credit Long/Short Fund’s Institutional Class and Advisor Class shares’ operating expenses to an annual rate of 1.99% and 1.99%, respectively.
(e) From January 1, 2013 to April 30, 2013, Forward Management had a contractual obligation to waive any portion of its fees in amounts necessary to limit the Global Dividend Fund’s Investor Class, Institutional Class and Class A shares’ operating expenses to an annual rate of 1.24%, 0.89% and 1.39%, respectively.
(f) From January 1, 2013 to April 30, 2013, Forward Management had a contractual obligation to waive any portion of its fees in amounts necessary to limit the International Dividend Fund’s Advisor Class shares’ operating expenses to an annual rate of 0.99%.
(g) From January 1, 2013 to April 30, 2013, Forward Management had a contractual obligation to waive any portion of its fees in amounts necessary to limit the Select EM Dividend Fund’s Investor Class, Class C and Advisor Class shares’ operating expenses to an annual rate of 1.79%, 2.39% and 1.39%, respectively.
Notes to Financial Statements (Unaudited)
(h) From January 1, 2013 to April 30, 2013, Forward Management had a contractual obligation to waive any portion of its fees in amounts necessary to limit the Small Cap Equity Fund’s Investor Class, Institutional Class and Advisor Class shares’ operating expenses to an annual rate of 1.39%, 1.09% and 1.09%, respectively.
(i) From January 1, 2013 to April 30, 2013, Forward Management had a contractual obligation to waive any portion of its fees in amounts necessary to limit the Tactical Enhanced Fund’s Advisor Class shares’ operating expenses to an annual rate of 1.49%.
Pursuant to the Expense Limitation Agreements, each Fund will reimburse Forward Management for any fee waivers and expense reimbursements made by Forward Management, provided that any such reimbursements made by a Fund to Forward Management will not cause the Fund’s expense limitation to exceed expense limitation rates in existence at the time the expense was incurred or at the time of the reimbursement, whichever expense limitation rate is lower, and the reimbursement is made within three years following the year in which the expenses were incurred.
For the six months ended June 30, 2013, the fee waivers and/or reimbursements were as follows:
| | | | | | | | | | | | |
| Fund | | Fees Waived/ Reimbursed by Advisor | | | Recoupment of Past Waived Fees by Advisor | | | Total | |
| Credit Analysis Long/Short Fund | | | | | | | | | | | | |
Investor Class | | $ | 139,570 | | | $ | 0 | | | $ | 139,570 | |
Institutional Class | | | 75,431 | | | | 0 | | | | 75,431 | |
Class A | | | 7,429 | | | | 0 | | | | 7,429 | |
Class C | | | 10,687 | | | | 0 | | | | 10,687 | |
Advisor Class | | | 39,318 | | | | 0 | | | | 39,318 | |
| EM Corporate Debt Fund | | | | | | | | | | | | |
Investor Class | | | 105,290 | | | | (14,704 | ) | | | 90,586 | |
Institutional Class | | | 10,967 | | | | (2,038 | ) | | | 8,929 | |
Class C | | | 750 | | | | (132 | ) | | | 618 | |
| Emerging Markets Fund | | | | | | | | | | | | |
Investor Class | | | 41,774 | | | | 0 | | | | 41,774 | |
Institutional Class | | | 33,025 | | | | 0 | | | | 33,025 | |
Advisor Class | | | 5,768 | | | | 0 | | | | 5,768 | |
| Endurance Long/Short Fund | | | | | | | | | | | | |
Investor Class | | | 615 | | | | 0 | | | | 615 | |
Institutional Class | | | 13,529 | | | | 0 | | | | 13,529 | |
| Global Credit Long/Short Fund | | | | | | | | | | | | |
Investor Class | | | 13,788 | | | | 0 | | | | 13,788 | |
Institutional Class | | | 18,746 | | | | 0 | | | | 18,746 | |
Class C | | | 6,825 | | | | 0 | | | | 6,825 | |
Advisor Class | | | 6,741 | | | | 0 | | | | 6,741 | |
| Global Dividend Fund | | | | | | | | | | | | |
Investor Class | | | 3,433 | | | | 0 | | | | 3,433 | |
Institutional Class | | | 20,536 | | | | 0 | | | | 20,536 | |
Class A | | | 24,354 | | | | 0 | | | | 24,354 | |
| International Dividend Fund | | | | | | | | | | | | |
Investor Class | | | 50,058 | | | | 0 | | | | 50,058 | |
Institutional Class | | | 54,020 | | | | 0 | | | | 54,020 | |
Class A | | | 269 | | | | 0 | | | | 269 | |
Class C | | | 1,232 | | | | 0 | | | | 1,232 | |
Advisor Class | | | 16,684 | | | | 0 | | | | 16,684 | |
| Select EM Dividend Fund | | | | | | | | | | | | |
Investor Class | | | 27,102 | | | | 0 | | | | 27,102 | |
Institutional Class | | | 24,024 | | | | 0 | | | | 24,024 | |
Class C | | | 1,479 | | | | 0 | | | | 1,479 | |
Advisor Class | | | 1,660 | | | | 0 | | | | 1,660 | |
Notes to Financial Statements (Unaudited)
| | | | | | | | | | | | |
| Fund | | Fees Waived/ Reimbursed by Advisor | | | Recoupment of Past Waived Fees by Advisor | | | Total | |
| Small Cap Equity Fund | | | | | | | | | | | | |
Investor Class | | $ | 42,192 | | | $ | 0 | | | $ | 42,192 | |
Institutional Class | | | 12,821 | | | | 0 | | | | 12,821 | |
Advisor Class | | | 4,970 | | | | 0 | | | | 4,970 | |
| Tactical Enhanced Fund | | | | | | | | | | | | |
Investor Class | | | 3,416 | | | | 0 | | | | 3,416 | |
Institutional Class | | | 4,321 | | | | 0 | | | | 4,321 | |
Class A | | | 577 | | | | 0 | | | | 577 | |
Class C | | | 343 | | | | 0 | | | | 343 | |
Advisor Class | | | 573 | | | | 0 | | | | 573 | |
| Managed Futures Strategy Fund | | | | | | | | | | | | |
Investor Class | | | 2,195 | | | | 0 | | | | 2,195 | |
Institutional Class | | | 1,789 | | | | 0 | | | | 1,789 | |
Class C | | | 1,886 | | | | 0 | | | | 1,886 | |
Class Z | | | 17,083 | | | | 0 | | | | 17,083 | |
As of June 30, 2013, the balances of recoupable expenses for each Fund were as follows:
| | | | | | | | | | | | | | | | | | | | |
| Fund | | 2010 | | | 2011 | | | 2012 | | | 2013 | | | Total | |
| Credit Analysis Long/Short Fund | | | | | | | | | | | | | | | | | | | | |
Investor Class | | $ | 224,852 | | | $ | 224,150 | | | $ | 228,708 | | | $ | 139,570 | | | $ | 817,280 | |
Institutional Class | | | 20,942 | | | | 46,411 | | | | 95,394 | | | | 75,431 | | | | 238,178 | |
Class A | | | 2,641 | | | | 3,274 | | | | 7,544 | | | | 7,429 | | | | 20,888 | |
Class C | | | 21,242 | | | | 23,909 | | | | 19,320 | | | | 10,687 | | | | 75,158 | |
Advisor Class | | | 4,306 | | | | 7,943 | | | | 45,632 | | | | 39,318 | | | | 97,199 | |
| EM Corporate Debt Fund | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | 14,954 | | | | 44,114 | | | | 11,751 | | | | 105,290 | | | | 176,109 | |
Institutional Class | | | 82,950 | | | | 50,200 | | | | 4,642 | | | | 10,967 | | | | 148,759 | |
Class C | | | 15,578 | | | | 11,700 | | | | 1,187 | | | | 750 | | | | 29,215 | |
| Emerging Markets Fund | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | 93,403 | | | | 180,588 | | | | 129,144 | | | | 41,774 | | | | 444,909 | |
Institutional Class | | | 489,489 | | | | 236,534 | | | | 141,303 | | | | 33,025 | | | | 900,351 | |
Advisor Class | | | 501 | | | | 873 | | | | 9,870 | | | | 5,768 | | | | 17,012 | |
| Endurance Long/Short Fund | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | — | | | | — | | | | 3,194 | | | | 615 | | | | 3,809 | |
Institutional Class | | | — | | | | — | | | | 35,482 | | | | 13,529 | | | | 49,011 | |
| Global Credit Long/Short Fund | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | — | | | | 7,653 | | | | 24,193 | | | | 13,788 | | | | 45,634 | |
Institutional Class | | | — | | | | 7,717 | | | | 33,679 | | | | 18,746 | | | | 60,142 | |
Class C | | | — | | | | 7,560 | | | | 21,382 | | | | 6,825 | | | | 35,767 | |
Advisor Class | | | — | | | | 7,569 | | | | 21,458 | | | | 6,741 | | | | 35,768 | |
| Global Dividend Fund | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | — | | | | 124 | | | | 906 | | | | 3,433 | | | | 4,463 | |
Institutional Class | | | 4,291 | | | | 20,022 | | | | 31,985 | | | | 20,536 | | | | 76,834 | |
Class A | | | 50,187 | | | | 50,269 | | | | 51,396 | | | | 24,354 | | | | 176,206 | |
Notes to Financial Statements (Unaudited)
| | | | | | | | | | | | | | | | | | | | |
| Fund | | 2010 | | | 2011 | | | 2012 | | | 2013 | | | Total | |
| International Dividend Fund | | | | | | | | | | | | | | | | | | | | |
Investor Class | | $ | 96,183 | | | $ | 49,213 | | | $ | 43,987 | | | $ | 50,058 | | | $ | 239,441 | |
Institutional Class | | | 23,105 | | | | 49,662 | | | | 142,684 | | | | 54,020 | | | | 269,471 | |
Class A | | | — | | | | — | | | | — | | | | 269 | | | | 269 | |
Class C | | | — | | | | — | | | | 438 | | | | 1,232 | | | | 1,670 | |
Advisor Class | | | — | | | | 201 | | | | 13,851 | | | | 16,684 | | | | 30,736 | |
| Select EM Dividend Fund | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | — | | | | 6,226 | | | | 25,105 | | | | 27,102 | | | | 58,433 | |
Institutional Class | | | — | | | | 45,397 | | | | 60,143 | | | | 24,024 | | | | 129,564 | |
Class C | | | — | | | | 3,980 | | | | 6,314 | | | | 1,479 | | | | 11,773 | |
Advisor Class | | | — | | | | 4,468 | | | | 8,873 | | | | 1,660 | | | | 15,001 | |
| Small Cap Equity Fund | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | — | | | | 200,205 | | | | 80,190 | | | | 42,192 | | | | 322,587 | |
Institutional Class | | | — | | | | 152,991 | | | | 36,194 | | | | 12,821 | | | | 202,006 | |
Advisor Class | | | — | | | | 212 | | | | 8,254 | | | | 4,970 | | | | 13,436 | |
| Tactical Enhanced Fund | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | — | | | | 14,764 | | | | 31,432 | | | | 3,416 | | | | 49,612 | |
Institutional Class | | | — | | | | 21,125 | | | | 28,004 | | | | 4,321 | | | | 53,450 | |
Class A | | | — | | | | 2,220 | | | | 6,916 | | | | 577 | | | | 9,713 | |
Class C | | | — | | | | 3,242 | | | | 5,849 | | | | 343 | | | | 9,434 | |
Advisor Class | | | — | | | | 32 | | | | 238 | | | | 573 | | | | 843 | |
| Commodity Long/Short Strategy Fund | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | — | | | | 4,817 | | | | — | | | | — | | | | 4,817 | |
Institutional Class | | | — | | | | 7,194 | | | | — | | | | — | | | | 7,194 | |
Class C | | | — | | | | 411 | | | | — | | | | — | | | | 411 | |
Advisor Class | | | — | | | | 356 | | | | — | | | | — | | | | 356 | |
Class Z | | | — | | | | 854 | | | | — | | | | — | | | | 854 | |
| Managed Futures Strategy Fund | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | — | | | | — | | | | 7,441 | | | | 2,195 | | | | 9,636 | |
Institutional Class | | | — | | | | — | | | | 6,519 | | | | 1,789 | | | | 8,308 | |
Class C | | | — | | | | — | | | | 6,513 | | | | 1,886 | | | | 8,399 | |
Class Z | | | — | | | | — | | | | 46,156 | | | | 17,083 | | | | 63,239 | |
4. Distribution and Shareholder Services Plans
The Funds have adopted Distribution Plans (the “Distribution Plans”) pursuant to Rule 12b-1 of the 1940 Act which allow each of the Funds to pay for the sale and distribution of its shares at an annual rate of up to 0.25% of the Fund’s average daily net assets attributable to Investor Class shares, up to 0.35% of the Fund’s average daily net assets attributable to Class A shares, and up to 0.75% of the Fund’s average daily net assets attributable to Class C shares.
The Funds have adopted a Shareholder Services Plan (the “Shareholder Services Plan”) that may be used to pay shareholder servicing fees at an annual rate of up to 0.15% of the Fund’s average daily net assets attributable to Investor Class shares, up to 0.05% of the Fund’s average daily net assets attributable to Institutional Class shares, up to 0.20% of the Fund’s average daily net assets attributable to Class A shares, up to 0.25% of the
Fund’s average daily net assets attributable to Class C shares and up to 0.10% of the Fund’s average daily net assets attributable to Advisor Class shares.
The expenses of the Distribution Plans and the Shareholder Services Plan are reflected as distribution and service fees in the Statement of Operations.
Distributor, Administrator, Transfer Agent & Custodian
Forward Securities, LLC (the “Distributor”) serves as the Funds’ distributor. The Distributor acts as an agent for the Funds and the distributor of their shares.
ALPS Fund Services, Inc. (“AFS”) serves as the Funds’ administrator, transfer agent and dividend paying agent.
Citibank is the Funds’ custodian.
Notes to Financial Statements (Unaudited)
5. Trustee and Officer Fees
The Funds do not pay any compensation directly to the officers or trustees who are also trustees, officers or employees of Forward Management or its affiliates, except as noted below. As of June 30, 2013, there were seven Trustees, six of whom are not “interested persons” of the Trust within the meaning of that term under the 1940 Act (each, an “Independent Trustee”). The Funds pay each Independent Trustee a retainer fee in the amount of $35,000 per year, $12,500 each per regular meeting for attendance in person, $9,000 each per regular meeting for attendance by telephone, $3,000 each for attendance in person at each special meeting that is not held in conjunction with a regular meeting, $2,250 each for attendance at a special telephonic meeting, and $1,000 each per day for participation in Trust-related meetings not held in conjunction with a meeting. The Chairman of the Board of Trustees, the Chairman of the Audit Committee and the Chairman of the Nominating Committee each receive a special retainer fee in the amount of $10,000, $10,000 and $7,500, respectively per year. The interested Trustee receives no compensation from the Funds. In addition, Independent Trustees receive reimbursements for reasonable out-of-pocket expenses incurred for their services as a Trustee.
The Funds’ Chief Compliance Officer is employed by Forward Management. The Funds pay an allocated portion of the Chief Compliance Officer’s compensation and other related expenses, subject to approval by the Board of Trustees.
6. Indemnifications
Under the Trust’s organizational documents, its officers and Trustees are indemnified against certain liability arising out of the performance of their duties with respect to the Funds. In addition, in the normal course of business, the Trust, on behalf of the Funds, enters into contracts with vendors and others that provide general indemnification. Each Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust and/or the Funds. Based on experience, however, the Funds expect the risk of loss to be remote.
7. Shares of Beneficial Interest
The capitalization of the Trust consists of an unlimited number of shares of beneficial interest with no par value per share. The Board of Trustees may establish additional Funds and classes of shares at any time in the future without shareholder approval. Holders of shares of the Funds of the Trust have one vote for each share held and a proportionate fraction of a vote for each fractional share. All shares issued and outstanding are fully paid and are non-assessable, transferable and redeemable at the option of the shareholder. Shares have no pre-emptive rights.
The following entities owned of record or beneficially, as of June 30, 2013, 5% or greater of any class of the Funds’ outstanding equity securities:
| | | | | | |
| Fund | | Name | | Percentage | |
Credit Analysis Long/Short Fund | |
Investor | | National Financial Services Corp. | | | 24.74 | % |
| | Charles Schwab & Co., Inc. | | | 20.80 | % |
| | LPL Financial Services | | | 13.61 | % |
| | Genworth Financial Trust | | | 5.73 | % |
| | |
Institutional Class | | National Financial Services Corp. | | | 28.86 | % |
| | Pershing LLC | | | 20.02 | % |
| | Charles Schwab & Co., Inc. | | | 19.42 | % |
| | MSCS Financial Services Trust | | | 6.47 | % |
| | TD Ameritrade, Inc. | | | 5.91 | % |
| | Forward Management, LLC | | | 5.38 | % |
| | |
Class A | | Merrill Lynch Pierce Fenner & Smith | | | 38.61 | % |
| | Pershing LLC | | | 17.41 | % |
| | Wells Fargo Investments, LLC | | | 10.77 | % |
| | National Financial Services Corp. | | | 8.11 | % |
| | |
Class C | | Wells Fargo Investments, LLC | | | 19.28 | % |
| | National Financial Services Corp. | | | 18.87 | % |
| | Merrill Lynch Pierce Fenner & Smith | | | 13.36 | % |
| | Pershing LLC | | | 12.65 | % |
| | |
Advisor Class | | Merrill Lynch Pierce Fenner & Smith | | | 56.87 | % |
| | Wells Fargo Investments, LLC | | | 22.07 | % |
| | National Financial Services Corp. | | | 9.28 | % |
| | | | | | |
| Fund | | Name | | Percentage | |
EM Corporate Debt Fund | |
Investor Class | | National Financial Services Corp. | | | 57.39 | % |
| | Genworth Financial Trust | | | 30.93 | % |
| | |
Institutional Class | | Gerlach & Co., LLC | | | 51.65 | % |
| | Genworth Financial Trust | | | 18.09 | % |
| | U.S. Bank NA | | | 13.23 | % |
| | National Financial Services Corp. | | | 5.11 | % |
| | |
Class C | | Forward Management, LLC | | | 54.63 | % |
| | Pershing LLC | | | 17.65 | % |
| | National Financial Services Corp. | | | 6.97 | % |
|
| Emerging Markets Fund | |
Investor Class | | National Financial Services Corp. | | | 28.09 | % |
| | Charles Schwab & Co., Inc. | | | 21.86 | % |
| | Lincoln Financial Advisors | | | 6.01 | % |
| | COR Clearing LLC (Legent) | | | 5.85 | % |
| | |
Institutional Class | | Gerlach & Co., LLC | | | 36.53 | % |
| | MSCS Financial Services Trust | | | 18.56 | % |
| | National Financial Services Corp. | | | 16.42 | % |
| | Charles Schwab & Co., Inc. | | | 7.72 | % |
| | |
Advisor Class | | Wells Fargo Investments, LLC | | | 51.71 | % |
| | Charles Schwab & Co., Inc. | | | 37.78 | % |
| | Pershing LLC | | | 6.40 | % |
Notes to Financial Statements (Unaudited)
| | | | | | |
| Fund | | Name | | Percentage | |
| Endurance Long/Short Fund | |
Investor Class | | Forward Management, LLC | | | 95.05 | % |
| | |
Institutional Class | | JP Morgan | | | 56.22 | % |
| | Forward Management, LLC | | | 23.58 | % |
| | Gerlach & Co., LLC | | | 14.82 | % |
|
| Global Credit Long/Short Fund | |
Investor Class | | Forward Management, LLC | | | 59.29 | % |
| | National Financial Services Corp. | | | 35.25 | % |
| | |
Institutional Class | | Gerlach & Co., LLC | | | 52.92 | % |
| | Forward Management, LLC | | | 44.77 | % |
| | |
Class C | | Forward Management, LLC | | | 100.00 | % |
| | |
Advisor Class | | Forward Management, LLC | | | 100.00 | % |
|
| Global Dividend Fund | |
Investor Class | | National Financial Services Corp. | | | 71.13 | % |
| | LPL Financial Services | | | 8.95 | % |
| | Pershing LLC | | | 5.97 | % |
| | JP Turner & Co., LLC | | | 5.96 | % |
| | |
Institutional Class | | MSCS Financial Services Trust | | | 29.48 | % |
| | Orrstown Bank | | | 23.22 | % |
| | HillsTrust | | | 21.92 | % |
| | SEI Private Trust Co. | | | 14.67 | % |
| | |
Class A | | Morgan Stanley | | | 81.09 | % |
|
| International Dividend Fund | |
Investor Class | | Genworth Financial Trust | | | 66.61 | % |
| | Pershing LLC | | | 14.19 | % |
| | TD Ameritrade, Inc. | | | 5.46 | % |
| | |
Institutional Class | | Gerlach & Co., LLC | | | 42.14 | % |
| | MSCS Financial Services Trust | | | 18.41 | % |
| | National Financial Services Corp. | | | 11.50 | % |
| | Pershing LLC | | | 5.49 | % |
| | Genworth Financial Trust | | | 5.15 | % |
| | |
Class A | | Forward Management, LLC | | | 76.59 | % |
| | Morgan Stanley | | | 19.51 | % |
| | |
Class C | | Morgan Stanley | | | 65.58 | % |
| | Pershing LLC | | | 17.75 | % |
| | LPL Financial Services | | | 7.82 | % |
| | Merrill Lynch Pierce Fenner & Smith | | | 5.50 | % |
| | |
Advisor Class | | Morgan Stanley | | | 95.68 | % |
| | | | | | |
| Fund | | Name | | Percentage | |
| International Small Companies Fund | |
Investor Class | | Charles Schwab & Co., Inc. | | | 25.05 | % |
| | National Financial Services Corp. | | | 17.49 | % |
| | E*Trade Clearing LLC | | | 17.47 | % |
| | Pershing LLC | | | 14.61 | % |
| | LPL Financial Services | | | 8.70 | % |
| | |
Institutional Class | | National Financial Services Corp. | | | 32.42 | % |
| | Charles Schwab & Co., Inc. | | | 25.44 | % |
| | Wells Fargo Investments, LLC | | | 23.27 | % |
| | Pershing LLC | | | 13.99 | % |
| | |
Advisor Class | | Wells Fargo Investments, LLC | | | 97.48 | % |
|
Select EM Dividend Fund | |
Investor Class | | Genworth Financial Trust | | | 33.03 | % |
| | Charles Schwab & Co., Inc. | | | 14.37 | % |
| | LPL Financial Services | | | 10.57 | % |
| | Pershing LLC | | | 9.00 | % |
| | National Financial Services Corp. | | | 8.79 | % |
| | TD Ameritrade, Inc. | | | 7.86 | % |
| | |
Institutional Class | | Gerlach & Co., LLC | | | 76.79 | % |
| | National Financial Services Corp. | | | 17.03 | % |
| | |
Class C | | Forward Management, LLC | | | 43.45 | % |
| | Pershing LLC | | | 20.82 | % |
| | National Financial Services Corp. | | | 17.23 | % |
| | LPL Financial Services | | | 16.41 | % |
| | |
Advisor Class | | Forward Management, LLC | | | 55.06 | % |
| | Charles Schwab & Co., Inc. | | | 37.09 | % |
|
| Small Cap Equity Fund | |
Investor Class | | National Financial Services Corp. | | | 26.07 | % |
| | Charles Schwab & Co., Inc. | | | 24.09 | % |
| | Pershing LLC | | | 8.50 | % |
| | Morgan Stanley | | | 6.49 | % |
| | |
Institutional Class | | Charles Schwab & Co., Inc. | | | 38.85 | % |
| | LPL Financial Services | | | 16.37 | % |
| | Wells Fargo Investments, LLC | | | 9.32 | % |
| | National Financial Services Corp. | | | 7.58 | % |
| | Pershing LLC | | | 6.99 | % |
| | HillsTrust | | | 5.88 | % |
| | |
Advisor Class | | Wells Fargo Investments, LLC | | | 86.51 | % |
| | Charles Schwab & Co., Inc. | | | 12.15 | % |
|
| Tactical Enhanced Fund | |
Investor Class | | National Financial Services Corp. | | | 62.19 | % |
| | Charles Schwab & Co., Inc. | | | 24.58 | % |
Notes to Financial Statements (Unaudited)
| | | | | | |
| Fund | | Name | | Percentage | |
Tactical Enhanced Fund (continued) | |
Institutional Class | | Charles Schwab & Co., Inc. | | | 51.81 | % |
| | National Financial Services Corp. | | | 20.03 | % |
| | Pershing LLC | | | 14.83 | % |
| | TD Ameritrade, Inc. | | | 6.48 | % |
| | Gerlach & Co., LLC | | | 5.92 | % |
| | |
Class A | | National Financial Services Corp. | | | 87.39 | % |
| | Pershing LLC | | | 10.37 | % |
| | |
Class C | | National Financial Services Corp. | | | 73.24 | % |
| | LPL Financial Services | | | 12.74 | % |
| | Pershing LLC | | | 7.07 | % |
| | |
Advisor Class | | LPL Financial Services | | | 99.08 | % |
|
Tactical Growth Fund | |
Investor Class | | National Financial Services Corp. | | | 57.40 | % |
| | Charles Schwab & Co., Inc. | | | 12.68 | % |
| | Pershing LLC | | | 11.20 | % |
| | LPL Financial Services | | | 6.82 | % |
| | |
Institutional Class | | Charles Schwab & Co., Inc. | | | 30.53 | % |
| | National Financial Services Corp. | | | 24.79 | % |
| | Pershing LLC | | | 13.20 | % |
| | Wells Fargo Investments, LLC | | | 8.01 | % |
| | |
Class A | | Morgan Stanley | | | 38.27 | % |
| | Pershing LLC | | | 7.64 | % |
| | |
Class C | | Morgan Stanley | | | 63.09 | % |
| | Pershing LLC | | | 7.29 | % |
| | National Financial Services Corp. | | | 5.35 | % |
| | Wells Fargo Investments, LLC | | | 5.34 | % |
| | | | | | |
| Fund | | Name | | Percentage | |
Tactical Growth Fund (continued) | |
Advisor Class | | Wells Fargo Investments, LLC | | | 49.88 | % |
| | Morgan Stanley | | | 44.40 | % |
|
| Commodity Long/Short Strategy Fund | |
Investor Class | | National Financial Services Corp. | | | 65.03 | % |
| | Pershing LLC | | | 13.60 | % |
| | TD Ameritrade, Inc. | | | 7.49 | % |
| | |
Institutional Class | | Charles Schwab & Co., Inc. | | | 62.21 | % |
| | National Financial Services Corp. | | | 26.69 | % |
| | MSCS Financial Services Trust | | | 7.46 | % |
| | |
Class C | | Morgan Stanley | | | 42.60 | % |
| | Pershing LLC | | | 21.88 | % |
| | National Financial Services Corp. | | | 14.51 | % |
| | |
Advisor Class | | Morgan Stanley | | | 96.68 | % |
| | |
Class Z | | Gerlach & Co., LLC | | | 100.00 | % |
|
| Managed Futures Strategy Fund | |
Investor Class | | Forward Management, LLC | | | 74.05 | % |
| | National Financial Services Corp. | | | 18.15 | % |
| | Charles Schwab & Co., Inc. | | | 6.05 | % |
Institutional Class | | Forward Management, LLC | | | 92.43 | % |
| | Charles Schwab & Co., Inc. | | | 7.57 | % |
| | |
Class C | | Forward Management, LLC | | | 83.61 | % |
| | National Financial Services Corp. | | | 7.55 | % |
| | Pershing LLC | | | 6.09 | % |
| | |
Class Z | | Gerlach & Co., LLC | | | 100.00 | % |
8. Purchases and Sales of Investments
Investment transactions for the six months ended June 30, 2013, excluding U.S. Government Obligations, short-term investments and short sales, were as follows:
| | | | | | | | |
| Fund | | Cost of
Investments
Purchased | | | Proceeds From
Investments
Sold | |
Credit Analysis Long/Short Fund | | $ | 507,562,770 | | | $ | 293,800,209 | |
EM Corporate Debt Fund | | | 217,798,123 | | | | 109,914,063 | |
Emerging Markets Fund | | | 6,655,332 | | | | 5,015,642 | |
Endurance Long/Short Fund | | | 6,007,429 | | | | 5,929,771 | |
Global Credit Long/Short Fund | | | 6,246,461 | | | | 7,253,687 | |
Global Dividend Fund | | | 20,446,113 | | | | 20,523,443 | |
International Dividend Fund | | | 207,431,805 | | | | 104,543,392 | |
International Small Companies Fund | | | 97,698,849 | | | | 89,750,017 | |
Select EM Dividend Fund | | | 33,291,746 | | | | 44,514,396 | |
Small Cap Equity Fund | | | 20,965,690 | | | | 28,308,727 | |
Tactical Enhanced Fund | | | 690,164,002 | | | | 732,059,149 | |
Tactical Growth Fund | | | 717,602,576 | | | | 685,143,002 | |
Commodity Long/Short Strategy Fund | | | 6,773,404 | | | | 14,530,791 | |
Managed Futures Strategy Fund | | | 0 | | | | 0 | |
Notes to Financial Statements (Unaudited)
Investment transactions in U.S. Government Obligations for the six months ended June 30, 2013 were as follows:
| | | | | | | | |
| Fund | | Cost of Investments Purchased | | | Proceeds from
Investments Sold | |
Credit Analysis Long/Short Fund | | $ | 5,944,717 | | | $ | 5,938,789 | |
EM Corporate Debt Fund | | | 26,956,813 | | | | 12,180,781 | |
Global Credit Long/Short Fund | | | 1,743,693 | | | | 1,300,709 | |
Commodity Long/Short Strategy Fund | | | 21,857,355 | | | | 20,126,493 | |
9. Tax Basis Information
Tax Basis of Investments: As of June 30, 2013, the aggregate cost of investments, gross unrealized appreciation/(depreciation) and net unrealized appreciation/(depreciation) for Federal tax purposes was as follows:
| | | | | | | | | | | | | | | | |
| Fund | | Cost of
Investments | | | Gross
Unrealized
Appreciation | | | Gross
Unrealized
Depreciation | | | Net Unrealized
Appreciation/
(Depreciation) | |
Credit Analysis Long/Short Fund | | $ | 878,299,836 | | | $ | 11,639,185 | | | $ | (40,710,911 | ) | | $ | (29,071,726 | ) |
EM Corporate Debt Fund | | | 311,008,652 | | | | 1,978,676 | | | | (15,535,508 | ) | | | (13,556,832 | ) |
Emerging Markets Fund | | | 11,848,590 | | | | 1,158,274 | | | | (920,713 | ) | | | 237,561 | |
Endurance Long/Short Fund | | | 3,969,262 | | | | 385,359 | | | | (113,346 | ) | | | 272,013 | |
Global Credit Long/Short Fund | | | 6,338,303 | | | | 66,224 | | | | (860,919 | ) | | | (794,695 | ) |
Global Dividend Fund | | | 19,621,336 | | | | 3,147,616 | | | | (1,155,533 | ) | | | 1,992,083 | |
International Dividend Fund | | | 231,272,930 | | | | 20,533,477 | | | | (14,677,563 | ) | | | 5,855,914 | |
International Small Companies Fund | | | 139,220,179 | | | | 34,173,355 | | | | (5,853,113 | ) | | | 28,320,242 | |
Select EM Dividend Fund | | | 34,069,762 | | | | 3,097,015 | | | | (2,592,368 | ) | | | 504,647 | |
Small Cap Equity Fund | | | 27,602,460 | | | | 5,270,306 | | | | (1,381,700 | ) | | | 3,888,606 | |
Tactical Enhanced Fund | | | 41,650,000 | | | | 0 | | | | 0 | | | | 0 | |
Tactical Growth Fund | | | 817,639,817 | | | | 0 | | | | (2,458,222 | ) | | | (2,458,222 | ) |
Commodity Long/Short Strategy Fund | | | 81,843,381 | | | | 423,632 | | | | (376,028 | ) | | | 47,604 | |
Managed Futures Strategy Fund | | | 6,512,718 | | | | 70,858 | | | | (131,998 | ) | | | (61,140 | ) |
Capital Losses: As of December 31, 2012, the following Funds had available for Federal income tax purposes unused capital losses as follows:
Pre-Enactment Capital Losses
| | | | | | | | | | | | |
| Fund | | Expiring in
2016 | | | Expiring in 2017 | | | | | |
EM Corporate Debt Fund | | | — | | | $ | 51,786 | | | | | |
Global Dividend Fund | | | — | | | | 1,991,198 | | | | | |
International Dividend Fund(a) | | | — | | | | 2,145,728 | | | | | |
International Small Companies Fund | | $ | 53,538,269 | | | | 179,253,577 | | | | | |
Small Cap Equity Fund(a) | | | 4,805,443 | | | | 32,891,767 | | | | | |
Capital loss carryovers used during the period ended December 31, 2012, were:
| | | | | | | | | | |
| Fund | | Amount | | | | | | | |
Small Cap Equity Fund | | $ | 1,347,188 | | | | | | | |
(a) Subject to limitations under §382 of the Code.
Notes to Financial Statements (Unaudited)
On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (“the Act”) was enacted. Certain of the enacted provisions include:
Post enactment losses may now be carried forward indefinitely, but must retain the character of the original loss. However, such losses must be utilized prior to the pre-enactment capital loss, which increases the likelihood that the pre-enactment capital losses will expire unused. Under the pre-enactment law, capital losses could be carried forward for eight years and carried forward as short-term capital losses irrespective of the character of the original loss. The Act contains simplification provisions, which are aimed at preventing disqualification of a Regulated Investment Company (“RIC”) for “inadvertent” failures of the asset diversification and/or qualifying income tests. Additionally, the Act exempts RICs from the preferential dividend rule and repeals the 60-day designation requirement for certain types of pay-through income and gains.
Finally, the Act contains several provisions aimed at preserving the character of distributions made by a fiscal year RIC during the portion of its taxable year ending after October 31 or December 31, reducing the circumstances under which a RIC might be required to file amended Forms 1099 to restate previously reported distributions.
The Funds have adopted the noted provisions of the Act for the period ending June 30, 2013.
Post-Enactment Capital Losses*
Capital losses deferred to the next tax year were as follows:
| | | | | | | | |
| Fund | | Short-Term | | | Long-Term | |
EM Corporate Debt Fund | | $ | 849,126 | | | $ | 387,263 | |
Emerging Markets Fund | | | 1,859,917 | | | | — | |
Endurance Long/Short Fund | | | 36,305 | | | | 4,179 | |
Global Dividend Fund | | | 324,809 | | | | 30,145 | |
International Dividend Fund | | | 2,057,084 | | | | 239,208 | |
International Small Companies Fund | | | 1,659,396 | | | | — | |
Select EM Dividend Fund | | | 1,799,005 | | | | 349,133 | |
Commodity Long/Short Strategy Fund | | | 362,380 | | | | 48,390 | |
The Funds elect to defer to the period ending December 31, 2013 capital losses recognized during the period November 1, 2012 to December 31, 2012 in the amount of:
| | | | |
| Fund | | Amount | |
Endurance Long/Short Fund | | $ | 48,047 | |
Global Credit Long/Short Fund | | | 242,873 | |
Global Dividend Fund | | | 189,721 | |
International Dividend Fund | | | 1,398,050 | |
Select EM Dividend Fund | | | 420,107 | |
Small Cap Equity Fund | | | 312,679 | |
Tactical Growth Fund | | | 8,646,916 | |
Commodity Long/Short Strategy Fund | | | 18,011 | |
The Funds elect to defer to the period ending December 31, 2013 late year ordinary losses recognized during the period November 1, 2012 to December 31, 2012 in the amount of:
| | | | |
| Fund | | Amount | |
Emerging Markets Fund | | $ | 668 | |
Endurance Long/Short Fund | | | 64 | |
Select EM Dividend Fund | | | 22,322 | |
*Post-Enactment Capital Losses arise in fiscal years beginning after December 22, 2010, and exclude any elective late-year capital losses (during the period November 1st to December 31st) deferred for the current fiscal year. As a result of the enactment of the Act, pre-enactment capital loss carry forwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term losses rather than being considered all short-term as under previous law.
Notes to Financial Statements (Unaudited)
Tax Basis of Distributions to Shareholders: Income and long-term capital gain distributions are determined in accordance with Federal income tax regulations, which may differ from GAAP. The amounts and characteristics of tax basis distributions and composition of distributable earnings/(accumulated losses) are finalized at fiscal year end. Accordingly, tax basis balances have not been determined as of June 30, 2013.
The tax character of distributions paid for the year ended December 31, 2012 were as follows:
| | | | | | | | | | | | |
| Fund | | Ordinary Income Total | | | Long-term Capital Total | | | Return of
Capital | |
Credit Analysis Long/Short Fund | | $ | 14,195,148 | | | $ | 2,445,869 | | | | — | |
EM Corporate Debt Fund | | | 6,374,095 | | | | — | | | | — | |
Emerging Markets Fund | | | 100,000 | | | | 662,659 | | | | — | |
Global Credit Long/Short Fund | | | 434,058 | | | | — | | | | — | |
Global Dividend Fund | | | 826,768 | | | | — | | | $ | 60,007 | |
International Dividend Fund | | | 4,986,870 | | | | — | | | | — | |
International Small Companies Fund | | | 2,949,998 | | | | — | | | | — | |
Select EM Dividend Fund | | | 922,606 | | | | — | | | | 8,580 | |
Tactical Enhanced Fund | | | 530,001 | | | | 1,465,343 | | | | — | |
Tactical Growth Fund | | | — | | | | 31,748,342 | | | | — | |
Managed Futures Strategy Fund | | | 1,571 | | | | — | | | | — | |
10. Portfolio of Investments
The investment categories used in this report may differ from the industry classification categories used for determining compliance with industry concentration restrictions and requirements applicable to each of the Funds.
11. Subsequent Events
The Funds have evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date the financial statements were issued. Based on this evaluation, no adjustments were required to the financial statements as of June 30, 2013. However, the following are details relating to the subsequent events through the date the financial statements were issued.
The following information applies to the Global Credit Long/Short Fund only:
Liquidation of the Global Credit Long/Short Fund: On June 5, 2013, the Board of Trustees, including all of the Trustees who are not “interested persons” of the Trust
(as that term is defined in the 1940 Act), approved the liquidation of the Global Credit Long/Short Fund. The Global Credit Long/Short Fund was liquidated pursuant to a Board approved Plan of Liquidation on July 26, 2013 (the “Liquidation Date”). On the Liquidation Date, the Global Credit Long/Short Fund distributed pro rata to its respective shareholders of record all of the assets of the Fund in complete cancellation and redemption of all of the outstanding shares of beneficial interest, except for cash, bank deposits or cash equivalents in an estimated amount necessary to (i) discharge any unpaid liabilities and obligations of the Fund on the Fund’s books on the Liquidation Date, including, but not limited to, income dividends and capital gains distributions, if any, payable through the Liquidation Date, and (ii) pay such contingent liabilities as the officers of the Trust deem appropriate subject to ratification by the Board.
The Funds file a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Form N-Q was filed for the quarter ended March 31, 2013. The Funds’ Form N-Q is available on the SEC’s website at www.sec.gov and may also be reviewed and copied at the Commission’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
A description of the Funds’ proxy voting policies and procedures and how the Funds voted proxies relating to portfolio securities during the most recent 12 month period ended June 30, 2013 are available (i) without charge, upon request, by calling 1-800-999-6809 and (ii) on the Securities and Exchange Commission’s website at www.sec.gov.
Investment Advisor
Forward Management, LLC
Administrator
ALPS Fund Services, Inc.
Distributor
Forward Securities, LLC
Counsel
Dechert LLP
Independent Registered Public Accounting Firm
PricewaterhouseCoopers LLP
Custodian
Citibank, N.A.
Transfer Agent
ALPS Fund Services, Inc.
Forward Funds
P.O. Box 1345
Denver, CO 80201
(800) 999-6809
www.forwardinvesting.com
Forward Commodity Long/Short Strategy Fund
Forward Credit Analysis Long/Short Fund
Forward EM Corporate Debt Fund
Forward Emerging Markets Fund
Forward Endurance Long/Short Fund
Forward Frontier Strategy Fund
Forward Global Credit Long/Short Fund
Forward Global Dividend Fund
Forward Global Infrastructure Fund
Forward High Yield Bond Fund
Forward International Dividend Fund
Forward International Real Estate Fund
Forward International Small Companies Fund
Forward Investment Grade Fixed-Income Fund
Forward Managed Futures Strategy Fund
Forward Real Estate Fund
Forward Real Estate Long/Short Fund
Forward Select EM Dividend Fund
Forward Select Income Fund
Forward Small Cap Equity Fund
Forward Tactical Enhanced Fund
Forward Tactical Growth Fund
Forward Total MarketPlus Fund
Forward U.S. Government Money Fund
Allocation Funds
Forward Balanced Allocation Fund
Forward Growth & Income Allocation Fund
Forward Growth Allocation Fund
Forward Income & Growth Allocation Fund
Forward Income Builder Fund
Forward Multi-Strategy Fund
| | | | |
| Printed on paper containing recycled content using soy-based inks. | | | SAR FSD000216 083114 | |
| | | | |
 | | | | Semi-Annual Report June 30, 2013 |
| | |
| | | | Forward Global Infrastructure Fund Forward International Real Estate Fund Forward Real Estate Fund Forward Real Estate Long/Short Fund Forward Select Income Fund |
| | |
FORWARD FUNDS: | | Table of Contents |
Forward Funds are distributed by Forward Securities, LLC.
101 California Street, 16th Floor, San Francisco, California 94111
The report has been prepared for the general information of Forward Funds’ shareholders. It is not authorized for distribution to prospective investors unless accompanied or proceeded by a current Forward Funds’ Prospectus, which contains more complete information about Forward Funds’ investment policies, management fees and expenses. Investors are reminded to read the Prospectus before investing or sending money.
June 30, 2013
| | |
| Shareholder Update | | June 30, 2013 |
| | |
A MESSAGE FROM: | | J. Alan Reid, Jr. Chief Executive Officer |
Dear Shareholder:
With today’s low yields, shifting interest rates and mixed global economic outlook, it’s a challenging time to be a long-term investor. We believe that investors who want to get ahead need to look beyond conventional broad market strategies and seek ways to build resilience into their portfolios.
If anything, the last five years have shown us that we cannot put all of our eggs in one basket. At Forward, we realize that we have to change and adapt with the markets to continue to help our clients build diversified portfolios. That means offering funds like our Forward Commodity Long/Short Strategy Fund that have had negative correlation to other asset classes1, or strategies that seek to provide income and growth, like Forward Income Builder Fund which offers asset class diversification in one fund. Or our two newest funds that launch on July 31 and focus on providing investors new income alternatives – Forward Dynamic Income Fund and Forward Select Income Opportunity Fund.
Forward will continue to research new ideas to identify solutions to help advisors and investors advance toward their financial goals. And our focus will remain on outcome-oriented, problem-solving strategies that seek to help our clients find alpha, diversify portfolios with low-correlation strategies, provide income and hedge against risks.
Unique income sources
In May 2012 we introduced Forward Income Builder Fund, an income strategy built for today’s low yield environment. The fund is an actively managed portfolio and invests across our diverse mix of traditional, alternative and global income-producing strategies, including our dividend strategies, international real estate, global infrastructure, high yield and emerging market (EM) corporate debt. As of June 30, the fund had a current yield of 5.15% and a 30-day SEC yield of 4.98%2.
Our Select Income Fund, which focuses on preferred real estate securities, also targets stable, reliable income. The fund delivered a 6.69% current yield and a 30-day SEC yield of 5.73% as of June 30.
Strategic access to overseas markets
After a long run of strong performance, EM index funds and exchange-traded funds dropped sharply in the first half of the year and as a result many investors have taken their EM exposure to a 12-year low3. In our view, a passive, broad-brush approach to EMs misses many opportunities to deliver low-correlation returns. Forward Emerging Markets Fund, Forward Select EM Dividend Fund and Forward EM Corporate Debt Fund are active strategies that seek to find opportunities away from the indices and take advantage of favorable valuations.
Meanwhile, many investors are paying attention to the frontier markets, which have performed strongly this year. Forward Frontier Strategy Fund provides exposure to these fast-growing markets and the fund’s Investor Class shares returned 9.29% in the first half of the year.
With our array of global and EM strategies, we remain strong believers in the growth and diversification potential of global strategies.
Tactical solutions
While the strong rally of the S&P 500 Index in the first half of the year buoyed stock portfolios, recent spikes in volatility and the phasing out of government stimulus programs have many wondering about downside risks. Forward’s two tactical equity strategies, Tactical Growth Fund and Tactical Enhanced Fund, seek to provide a backstop against market downturns by actively managing long and short market exposure.
Similarly, our Commodity Long/Short Strategy Fund and Managed Futures Strategy Fund systematically shift exposure to those markets as they move. Both funds help address inflation concerns with the Commodity Long/Short Strategy Fund’s Institutional Class shares returning 9.98% as of June 30.
| 1 | Morningstar, 12/31/10 – 06/30/13 |
| 2 | The performance quoted represents past performance, does not guarantee future results and current performance may be lower or higher than the data quoted. The investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance data current to the most recent month-end may be obtained at www.forwardinvesting.com. Investment performance may reflect fee waivers in effect. In the absence of fee waivers, total return would be lower. Total return is based on NAV, assuming reinvestment of all distributions. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. |
| 3 | Reuters, “Investors cut emerging market exposure to near 12-year low – poll,” July 16, 2013. |
The role of hard assets
Investors often look to real estate as an asset whose value endures through the markets’ ups and downs. Forward Real Estate Long/Short Fund is a value-focused, long/short strategy that distills the portfolio team’s best ideas with the goal of enhancing total return. Year to date, the fund’s Class A shares have returned 7.02%.
We hope that as you think about your investment challenges, you continue to look to Forward for new thinking and strategies designed to help meet your goals for returns, income, global exposure and portfolio diversification. We also invite you to explore www.forwardinvesting.com/fwd-thinking, where we regularly post our latest research publications and webcasts on timely investment topics. Our recent white paper, The 5% Problem: Double Jeopardy for Traditional Bond Investors, addresses some of the key issues facing investors today in the current market environment.
The team at Forward thanks you for your continued confidence and trust in us. We never forget that helping investors achieve their investment goals is what our business is really about, and we are privileged to be your partners in that effort.
Sincerely,
J. Alan Reid, Jr.
Chief Executive Officer
Forward
RISKS
There are risks involved with investing, including loss of principal. Past performance does not guarantee future results, share prices will fluctuate and you may have a gain or loss when you redeem shares.
Each allocation fund is a fund of funds, which invest in a mix of underlying Forward Funds. Shareholders of an allocation fund indirectly bear the expenses of the underlying funds. An allocation fund’s allocations may be changed at any time. Asset allocation does not assure profit or protect against risk. (Forward Income Builder Fund)
Borrowing for investment purposes creates leverage, which can increase the risk and volatility of a fund. (Forward Dynamic Income Fund, Forward EM Corporate Debt Fund, Forward Income Builder Fund, Forward Real Estate Long/Short Fund, Forward Select EM Dividend Fund, Forward Select Income Fund, Forward Select Income Opportunity Fund, Forward Tactical Enhanced Fund, Forward Tactical Growth Fund)
Exposure to the commodities markets may subject a fund to greater volatility than investing in traditional securities. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as natural disasters and international economic, political and regulatory developments. (Forward Commodity Long/Short Strategy Fund, Forward Managed Futures Strategy Fund)
Concentration in a particular industry will involve a greater degree of risk than a more diversified portfolio. (Forward Real Estate Long/Short Fund, Forward Select Income Fund)
Derivative instruments involve risks different from those associated with investing directly in securities and may cause, among other things, increased volatility and transaction costs or a fund to lose more than the amount invested. (Forward Commodity Long/Short Strategy Fund, Forward Dynamic Income Fund, Forward EM Corporate Debt Fund, Forward Emerging Markets Fund, Forward Frontier Strategy Fund, Forward Income Builder Fund, Forward Managed Futures Strategy Fund, Forward Real Estate Long/Short Fund, Forward Select EM Dividend Fund, Forward Select Income Fund, Forward Select Income Opportunity Fund, Forward Tactical Enhanced Fund, Forward Tactical Growth Fund)
Investing in exchange-traded funds (ETFs) will subject a fund to substantially the same risks as those associated with the direct ownership of the securities or other property held by the ETFs. (Forward Commodity Long/Short Strategy Fund, Forward Dynamic Income Fund, Forward EM Corporate Debt Fund, Forward Emerging Markets Fund, Forward Income Builder Fund, Forward Managed Futures Strategy Fund, Forward Tactical Enhanced Fund, Forward Tactical Growth Fund)
Foreign securities, especially emerging or frontier markets, will involve additional risks including exchange rate fluctuations, social and political instability, less liquidity, greater volatility and less regulation. (Forward Dynamic Income Fund, Forward EM Corporate Debt Fund, Forward Emerging Markets Fund, Forward Frontier Strategy Fund, Forward Income Builder Fund, Forward Real Estate Long/Short Fund, Forward Select EM Dividend Fund, Forward Select Income Opportunity Fund, Forward Tactical Enhanced Fund, Forward Tactical Growth Fund)
Investing in lower-rated (“high yield”) debt securities involves special risks in addition to those associated with investments in higher-rated debt securities, including a high degree of credit risk. (Forward EM Corporate Debt Fund, Forward Income Builder Fund)
Mortgage and asset-backed securities are debt instruments that are secured by interests in pools of mortgage loans or other financial instruments. Mortgage-backed securities are subject to, among other things, prepayment and extension risks. (Forward Commodity Long/Short Strategy Fund, Forward Income Builder Fund, Forward Managed Futures Strategy Fund)
June 30, 2013
Investing in a non-diversified fund involves the risk of greater price fluctuation than a more diversified portfolio. (Forward Commodity Long/Short Strategy Fund, Forward Dynamic Income Fund, Forward EM Corporate Debt Fund, Forward Endurance Long/Short Fund, Forward Frontier Strategy Fund, Forward Managed Futures Strategy Fund, Forward Real Estate Long/Short Fund, Forward Select Income Fund, Forward Select Income Opportunity Fund)
Higher portfolio turnover rates will involve greater transaction costs, and may increase the potential for taxable distributions being paid to shareholders. (Forward Tactical Enhanced Fund)
Investing in the real estate industry or in real estate-related securities involves the risks associated with direct ownership of real estate which include, among other things, changes in economic conditions (e.g., interest rates), the macro real estate development market, government intervention (e.g., property taxes) or environmental disasters. These risks may also affect the value of equities that service the real estate sector. (Forward Dynamic Income Fund, Forward Income Builder Fund, Forward Real Estate Long/Short Fund, Forward Select Income Fund, Forward Select Income Opportunity Fund)
Short selling involves additional investment risks and transaction costs, and creates leverage, which can increase the risk and volatility of a fund. (Forward Dynamic Income Fund, Forward Income Builder Fund, Forward Real Estate Long/Short Fund, Forward Select EM Dividend Fund, Forward Select Income Opportunity Fund, Forward Tactical Enhanced Fund, Forward Tactical Growth Fund)
Investing in smaller companies generally will present greater investment risks, including greater price volatility, greater sensitivity to changing economic conditions and less liquidity than investing in larger, more mature companies. (Forward Dynamic Income Fund)
Alternative strategies typically are subject to increased risk and loss of principal. Consequently, investments such as mutual funds which focus on alternative strategies are not suitable for all investors.
Diversification does not assure profit or protect against risk.
There is no guarantee the companies in our portfolio will continue to pay dividends.
Forward Dynamic Income Fund and Forward Select Income Opportunity Fund were launched on July 31, 2013, and each has a limited operating history.
Forward Commodity Long/Short Strategy Fund seeks long-term total return.
Forward Dynamic Income Fund seeks total return, with dividend and interest income being an important component of that return, while exhibiting less downside volatility than the S&P 500 Index.
Forward EM Corporate Debt Fund seeks to achieve high total return (capital appreciation and income).
Forward Emerging Markets Fund seeks to achieve long-term growth of capital.
Forward Frontier Strategy Fund seeks capital growth.
Forward Income Builder Fund seeks high current income and some stability of principal.
Forward Managed Futures Strategy Fund seeks long-term total return.
Forward Real Estate Long/Short Fund seeks total return through a combination of high current income relative to equity investment alternatives, plus long-term growth of capital.
Forward Select EM Dividend Fund seeks to achieve high total return through capital appreciation and current income.
Forward Select Income Fund seeks high current income and potential for modest long-term growth of capital.
Forward Select Income Opportunity Fund seeks total return through current income and long-term capital appreciation.
Forward Tactical Enhanced Fund’s investment objective is to produce above-average, risk-adjusted returns, in any market environment, while exhibiting less downside volatility than the S&P 500 Index.
Forward Tactical Growth Fund’s investment objective is to produce above-average, risk-adjusted returns, in any market environment, while exhibiting less downside volatility than the S&P 500 Index.
Alpha is a coefficient measuring risk-adjusted performance.
Correlation is a statistical measure of how two securities move in relation to each other.
S&P 500 Index is an unmanaged index of 500 common stocks chosen to reflect the industries in the U.S. economy. One cannot invest directly in an index.
Valuation is the process of determining the value of an asset or company based on earnings and the market value of assets.
Volatility is a statistical measure of the dispersion of returns for a given security or market index.
Alan Reid is a registered representative of Forward Securities, LLC.
| | |
| Shareholder Update | | June 30, 2013 |
| | |
A MESSAGE FROM: | | Jim O’Donnell, CFA Chief Investment Officer |
Dear Shareholder:
The first half of 2013 was a bit of a wild ride. Many asset classes and markets around the globe enjoyed an exhilarating rally in the first three months of the year only to relinquish a healthy portion of those gains in the months of May and June. Needless to say, this served to unnerve many investors and market participants as they were left to wonder what happened.
So, what happened? From our perspective, the lynchpin of the uncertainty which precipitated the market’s decline was the Federal Reserve’s indication that the days of their quantitative easing program of bond buying—which has artificially served to lower long-term interest rates—may indeed be numbered. The repercussions of this action by the Fed were far reaching—impacting stocks, bonds, real estate, currencies and commodities, and domestic and international investments.
Taking a step back, it is important to understand that the epicenter of this shock wave emanated from the credit markets. When investing in income and credit assets, we believe investors must always assess whether they are being compensated for these three primary risks:
1. Inflation
2. Credit
3. Liquidity
Inflation risk is when a future dollar repaid does not equal the value of a dollar today. We analyze this risk by looking at the sensitivity of prices of investments to changes in interest rates (which frequently move in response to changes in inflationary threats).
Credit risk is the risk of not being repaid. Analysis for this risk looks at fundamental factors related to the borrower including debt quality, how much debt is owed, capacity for repayment as well as the overall economic climate and default rates.
Liquidity risk is the risk that a security cannot be traded quickly enough in the market to prevent a loss or make a profit. While this risk is the toughest to gauge, many market players assess this by looking at valuations, sentiment, leverage levels of market participants, interest rate spreads and the direction of fund flows.
We reached a stage in early 2013 where inflation-adjusted interest rates went negative, interest rate spreads narrowed and valuations became elevated. At that point, many of Forward’s portfolio managers elected to reduce leverage, take profits in positions that had become overvalued and raise cash so they could be in a better position to buy new holdings. They believed risk levels needed to be reduced as investors were not being adequately compensated for the risks outlined above.
The sell-off in the credit markets also extended to other income-oriented equity asset classes and then radiated out to other asset classes and markets, and it was instructive in terms of illustrating the magnitude and dimensions of liquidity risk. One can make a persuasive argument to the effect that the landscape of liquidity risk has changed dramatically since 2008. Reform legislation—like the Volcker Rule and Basel III—encourages traditional liquidity providers in the credit markets to curtail market making activities. The constraints of the reform legislation have reduced the capital which traditionally provided liquidity to the markets, and have caused market makers—those who buy and sell securities from their own accounts in order to provide liquidity and reduce volatility in the markets—to redeploy capital for other purposes. The net effect is that credit market investments and income-oriented investments may tend to be more volatile on a going forward basis than investors have traditionally experienced in the past. We believe the impacts of liquidity risk are more temporary in nature and may present attractive buying opportunities.
As we look forward to the second half of 2013, there is intense focus on the slowing rate of China’s economic growth. As these concerns heighten, we believe that emerging market equities may present an attractive buying opportunity. Another way to capitalize on declining demand in China may be via strategies which can gain short exposure to the commodities demanded by Chinese firms.
As always, we remain committed to helping our shareholders attain true portfolio diversification and achieve their long-term financial goals. We also believe that transparent practices give our investors access to the information they need to make important investment decisions. I invite you to review the information in this report and the performance of the Forward Funds in the first half of 2013, and thank you for the continued confidence that you place in our funds.
Sincerely,
Jim O’Donnell, CFA
Chief Investment Officer
Forward
RISKS
There are risks involved with investing, including loss of principal. Past performance does not guarantee future results, share prices will fluctuate and you may have a gain or loss when you redeem shares.
Exposure to the commodities markets may subject a fund to greater volatility than investing in traditional securities. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as natural disasters and international economic, political and regulatory developments.
Foreign securities, especially emerging or frontier markets, will involve additional risks including exchange rate fluctuations, social and political instability, less liquidity, greater volatility and less regulation.
Diversification does not assure profit or protect against risk.
Basel III is a global, voluntary regulatory standard on bank capital adequacy, stress testing and market liquidity risk.
Leverage refers to the use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment.
Liquidity is the degree to which an asset or security can be bought or sold in the market without affecting the asset’s price.
Quantitative easing refers to a form of monetary policy used to stimulate an economy where interest rates are either at, or close to, zero.
Valuation is the process of determining the value of an asset or company based on earnings and the market value of assets.
Volatility is a statistical measure of the dispersion of returns for a given security or market index.
The Volcker Rule is a proposal by American economist and former Federal Reserve Chairman Paul Volcker to restrict banks from making certain kinds of speculative investments if they are not on behalf of their customers.
Jim O’Donnell has earned the right to use the Chartered Financial Analyst designation. CFA Institute marks are trademarks owned by the CFA Institute.
Forward Funds are distributed by Forward Securities, LLC.
Not FDIC Insured | No Bank Guarantee | May Lose Value
©Forward Management, LLC. All rights reserved.
The discussions concerning the funds included in this shareholder report may contain certain forward-looking statements about the factors that may affect performance of the funds in the future, including the portfolio managers’ outlook regarding economic, market, political and other factors relevant to investment performance. These statements are based on the portfolio managers’ expectations concerning certain future events and their expected impact on the funds, and are current only through the date on the cover of this report. Forward-looking statements are inherently uncertain and are not intended to predict the future performance of the funds. Actual events may cause adjustments in the portfolio managers’ strategies from those currently expected to be employed, and the outlook of the portfolio managers is subject to change.
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2013
See page 9 for important performance disclosure information about the Forward Funds.
The performance quoted represents past performance, does not guarantee future results and current performance may be lower or higher than the data quoted. The investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance data current to the most recent month-end may be obtained at www.forwardinvesting.com. Investment performance may reflect fee waivers in effect. In the absence of fee waivers, total return would be lower. Total return is based on NAV, assuming reinvestment of all distributions. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
| | | | | | | | | | | | | | | | |
| Forward Global Infrastructure Fund(a) | | 1 Year | | | 5 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | |
Investor Class | | | 10.33% | | | | N/A | | | | -1.78% | | | | 05/02/11 | |
Institutional Class | | | 10.68% | | | | -1.07% | | | | -0.63% | | | | 06/29/07 | |
Class A (load adjusted)(b) | | | 3.91% | | | | -2.52% | | | | -1.90% | | | | 06/29/07 | |
Class A (without load)(c) | | | 10.27% | | | | -1.36% | | | | -0.93% | | | | 06/29/07 | |
Class B (with CDSC)(d) | | | 4.65% | | | | -2.43% | | | | -1.64% | | | | 06/29/07 | |
Class B (without CDSC)(e) | | | 9.65% | | | | -2.06% | | | | -1.64% | | | | 06/29/07 | |
Class C (with CDSC)(f) | | | 8.59% | | | | -2.06% | | | | -1.64% | | | | 06/29/07 | |
Class C (without CDSC)(g) | | | 9.59% | | | | -2.06% | | | | -1.64% | | | | 06/29/07 | |
Advisor Class(h) | | | 10.67% | | | | N/A | | | | 5.86% | | | | 02/01/10 | |
| | | | | | | | | | | | | | | | |
| Forward International Real Estate Fund(i) | | 1 Year | | | 5 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | |
Investor Class | | | 10.75% | | | | N/A | | | | 6.85% | | | | 05/02/11 | |
Institutional Class | | | 11.12% | | | | 4.59% | | | | 2.51% | | | | 04/28/06 | |
Class A (load adjusted)(b) | | | 4.24% | | | | 3.06% | | | | 1.39% | | | | 04/28/06 | |
Class A (without load)(c) | | | 10.62% | | | | 4.28% | | | | 2.23% | | | | 04/28/06 | |
Class C (with CDSC)(f) | | | 9.00% | | | | 3.54% | | | | 1.50% | | | | 04/28/06 | |
Class C (without CDSC)(g) | | | 10.00% | | | | 3.54% | | | | 1.50% | | | | 04/28/06 | |
Advisor Class(h) | | | 11.07% | | | | N/A | | | | 7.27% | | | | 05/02/11 | |
| | | | | | | | | | | | | | | | | | | | |
| Forward Real Estate Fund(j) | | 1 Year | | | 5 Year | | | 10 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | 9.69% | | | | 4.80% | | | | 8.57% | | | | 8.93% | | | | 05/10/99 | |
Institutional Class | | | 10.11% | | | | 4.99% | | | | N/A | | | | 2.42% | | | | 05/01/08 | |
Class A (load adjusted)(b) | | | 3.33% | | | | N/A | | | | N/A | | | | 20.33% | | | | 06/12/09 | |
Class A (without load)(c) | | | 9.61% | | | | N/A | | | | N/A | | | | 22.12% | | | | 06/12/09 | |
Class C (with CDSC)(f) | | | 8.05% | | | | N/A | | | | N/A | | | | 21.26% | | | | 06/12/09 | |
Class C (without CDSC)(g) | | | 9.05% | | | | N/A | | | | N/A | | | | 21.26% | | | | 06/12/09 | |
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2013
See page 9 for important performance disclosure information about the Forward Funds.
| | | | | | | | | | | | | | | | | | | | |
| Forward Real Estate Long/Short Fund(k) | | 1 Year | | | 5 Year | | | 10 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | 13.25% | | | | N/A | | | | N/A | | | | 9.77% | | | | 05/02/11 | |
Institutional Class | | | 13.69% | | | | 4.10% | | | | N/A | | | | 0.83% | | | | 04/28/06 | |
Class A (load adjusted)(b) | | | 6.76% | | | | 2.08% | | | | 4.82% | | | | 10.26% | | | | 09/15/99 | |
Class A (without load)(c) | | | 13.26% | | | | 3.30% | | | | 5.45% | | | | 10.73% | | | | 09/15/99 | |
Class B (with CDSC)(d) | | | 7.59% | | | | 2.23% | | | | 4.68% | | | | 9.93% | | | | 09/15/99 | |
Class B (without CDSC)(e) | | | 12.59% | | | | 2.57% | | | | 4.68% | | | | 9.93% | | | | 09/15/99 | |
Class C (with CDSC)(f) | | | 11.62% | | | | 2.57% | | | | 4.68% | | | | 9.93% | | | | 09/15/99 | |
Class C (without CDSC)(g) | | | 12.62% | | | | 2.57% | | | | 4.68% | | | | 9.93% | | | | 09/15/99 | |
Advisor Class(h) | | | 13.75% | | | | N/A | | | | N/A | | | | 10.26% | | | | 05/02/11 | |
| | | | | | | | | | | | | | | | | | | | |
| Forward Select Income Fund(l) | | 1 Year | | | 5 Year | | | 10 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | 12.99% | | | | N/A | | | | N/A | | | | 16.82% | | | | 10/26/11 | |
Institutional Class | | | 13.43% | | | | 11.42% | | | | N/A | | | | 5.61% | | | | 04/28/06 | |
Class A (load adjusted)(b) | | | 6.50% | | | | 9.76% | | | | 5.35% | | | | 8.97% | | | | 03/30/01 | |
Class A (without load)(c) | | | 13.00% | | | | 11.06% | | | | 5.98% | | | | 9.50% | | | | 03/30/01 | |
Class B (with CDSC)(d)(m) | | | 7.31% | | | | 9.96% | | | | 5.18% | | | | 8.67% | | | | 03/30/01 | |
Class B (without CDSC)(e)(m) | | | 12.31% | | | | 10.24% | | | | 5.18% | | | | 8.67% | | | | 03/30/01 | |
Class C (with CDSC)(f)(m) | | | 11.31% | | | | 10.24% | | | | 5.17% | | | | 8.67% | | | | 03/30/01 | |
Class C (without CDSC)(g)(m) | | | 12.31% | | | | 10.24% | | | | 5.17% | | | | 8.67% | | | | 03/30/01 | |
Advisor Class(h) | | | 13.42% | | | | N/A | | | | N/A | | | | 15.18% | | | | 02/01/10 | |
(a) Prior to the close of business on June 12, 2009, the Forward Global Infrastructure Fund was known as the Kensington Global Infrastructure Fund.
(b) Includes the effect of the maximum 5.75% sales charge.
(c) Excludes sales charge.
(d) Includes the contingent deferred sales charge ("CDSC"), which declines from 5% beginning at time of purchase to 0% at the beginning of the seventh year.
(e) Excludes the contingent deferred sales charge ("CDSC"), which declines from 5% beginning at time of purchase to 0% at the beginning of the seventh year.
(f) Includes the 1.00% contingent deferred sales charge ("CDSC").
(g) Excludes the 1.00% contingent deferred sales charge ("CDSC").
(h) Prior to May 1, 2013, the Advisor Class was known as Class M.
(i) Prior to the close of business on June 12, 2009, the Forward International Real Estate Fund was known as the Kensington International Real Estate Fund.
(j) Prior to January 20, 2009, the Forward Real Estate Fund was known as the Forward Progressive Real Estate Fund. Prior to October 30, 2006, the Forward Progressive Real Estate Fund was known as the Forward Uniplan Real Estate Investment Fund.
(k) Prior to May 1, 2011 the Forward Real Estate Long/Short Fund was known as the Forward Strategic Realty Fund. Prior to the close of business on June 12, 2009, the Forward Strategic Realty Fund was known as the Kensington Strategic Realty Fund.
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2013
(l) Prior to the close of business on June 12, 2009, the Forward Select Income Fund was known as the Kensington Select Income Fund.
(m) While Class B and Class C shares were initially offered for purchase effective March 30, 2001, no shareholder activity occurred until April 13, 2001.
Risk Disclosures
There are risks involved with investing, including loss of principal. Past performance does not guarantee future results, share prices will fluctuate and you may have a gain or loss when you redeem shares.
Forward Global Infrastructure Fund
Concentration in a particular industry will involve a greater degree of risk than a more diversified portfolio.
Derivative instruments involve risks different from those associated with investing directly in securities and may cause, among other things, increased volatility and transaction costs or a fund to lose more than the amount invested.
Foreign securities, especially emerging or frontier markets, will involve additional risks including exchange rate fluctuations, social and political instability, less liquidity, greater volatility and less regulation.
Investing in a non-diversified fund involves the risk of greater price fluctuation than a more diversified portfolio.
Forward International Real Estate Fund
Borrowing for investment purposes creates leverage, which can increase the risk and volatility of a fund.
Concentration in a particular industry will involve a greater degree of risk than a more diversified portfolio.
Derivative instruments involve risks different from those associated with investing directly in securities and may cause, among other things, increased volatility and transaction costs or a fund to lose more than the amount invested.
Foreign securities, especially emerging or frontier markets, will involve additional risks including exchange rate fluctuations, social and political instability, less liquidity, greater volatility and less regulation.
Investing in a non-diversified fund involves the risk of greater price fluctuation than a more diversified portfolio.
Investing in the real estate industry or in real estate-related securities involves the risks associated with direct ownership of real estate which include, among other things, changes in economic conditions (e.g., interest rates), the macro real estate development market, government intervention (e.g., property taxes) or environmental disasters. These risks may also affect the value of equities that service the real estate sector.
Forward Real Estate Fund
Concentration in a particular industry will involve a greater degree of risk than a more diversified portfolio.
Investing in a non-diversified fund involves the risk of greater price fluctuation than a more diversified portfolio.
Investing in the real estate industry or in real estate-related securities involves the risks associated with direct ownership of real estate which include, among other things, changes in economic conditions (e.g., interest rates), the macro real estate development market, government intervention (e.g., property taxes) or environmental disasters. These risks may also affect the value of equities that service the real estate sector.
Forward Real Estate Long/Short Fund
Borrowing for investment purposes creates leverage, which can increase the risk and volatility of a fund.
Concentration in a particular industry will involve a greater degree of risk than a more diversified portfolio.
June 30, 2013
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2013
Derivative instruments involve risks different from those associated with investing directly in securities and may cause, among other things, increased volatility and transaction costs or a fund to lose more than the amount invested.
Foreign securities, especially emerging or frontier markets, will involve additional risks including exchange rate fluctuations, social and political instability, less liquidity, greater volatility and less regulation.
Investing in a non-diversified fund involves the risk of greater price fluctuation than a more diversified portfolio.
Investing in the real estate industry or in real estate-related securities involves the risks associated with direct ownership of real estate which include, among other things, changes in economic conditions (e.g., interest rates), the macro real estate development market, government intervention (e.g., property taxes) or environmental disasters. These risks may also affect the value of equities that service the real estate sector.
Short selling involves additional investment risks and transaction costs, and creates leverage, which can increase the risk and volatility of a fund.
Alternative strategies typically are subject to increased risk and loss of principal. Consequently, investments such as mutual funds which focus on alternative strategies are not suitable for all investors.
Forward Select Income Fund
Borrowing for investment purposes creates leverage, which can increase the risk and volatility of a fund.
Concentration in a particular industry will involve a greater degree of risk than a more diversified portfolio.
Derivative instruments involve risks different from those associated with investing directly in securities and may cause, among other things, increased volatility and transaction costs or a fund to lose more than the amount invested.
Investing in a non-diversified fund involves the risk of greater price fluctuation than a more diversified portfolio.
Investing in the real estate industry or in real estate-related securities involves the risks associated with direct ownership of real estate which include, among other things, changes in economic conditions (e.g., interest rates), the macro real estate development market, government intervention (e.g., property taxes) or environmental disasters. These risks may also affect the value of equities that service the real estate sector.
Disclosure of Fund Expenses (Unaudited)
For the Six Months Ended June 30, 2013
As a shareholder of the Forward Funds, you incur two types of costs: (1) transaction costs, including applicable sales charges (loads); and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, shareholder services fees and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the (six-month) period and held for the entire period January 1, 2013 through June 30, 2013.
Actual Expenses
The first line for each share class of each Fund in the table provides information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the applicable line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example For Comparison Purposes
The second line for each share class of each Fund in the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table on the next page are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees or exchange fees. Therefore, the second line for each share class of each Fund within the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If these transactional costs were included, your costs would have been higher.
Disclosure of Fund Expenses (Unaudited)
For the Six Months Ended June 30, 2013
| | | | | | | | | | | | | | | | |
| Forward Global Infrastructure Fund | | Beginning
Account Value
1/01/2013 | | | Ending
Account Value
6/30/2013 | | | Expense
Ratio(a) | | | Expenses Paid
During Period(b)
01/01/13-06/30/13 | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 997.30 | | | | 1.64% | | | $ | 8.12 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,016.66 | | | | 1.64% | | | $ | 8.20 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 998.60 | | | | 1.24% | | | $ | 6.14 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,018.65 | | | | 1.24% | | | $ | 6.21 | |
| Class A | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 996.50 | | | | 1.63% | | | $ | 8.07 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,016.71 | | | | 1.63% | | | $ | 8.15 | |
| Class B | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 994.10 | | | | 2.22% | | | $ | 10.98 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,013.79 | | | | 2.22% | | | $ | 11.08 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 993.80 | | | | 2.22% | | | $ | 10.97 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,013.79 | | | | 2.22% | | | $ | 11.08 | |
| Advisor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 998.50 | | | | 1.25% | | | $ | 6.19 | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,018.60 | | | | 1.25% | | | $ | 6.26 | |
| | | | |
| Forward International Real Estate Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 964.20 | | | | 1.70% | | | $ | 8.28 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,016.36 | | | | 1.70% | | | $ | 8.50 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 965.40 | | | | 1.33% | | | $ | 6.48 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,018.20 | | | | 1.33% | | | $ | 6.66 | |
| Class A | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 963.50 | | | | 1.71% | | | $ | 8.32 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,016.31 | | | | 1.71% | | | $ | 8.55 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 960.90 | | | | 2.31% | | | $ | 11.23 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,013.34 | | | | 2.31% | | | $ | 11.53 | |
| Advisor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 965.80 | | | | 1.34% | | | $ | 6.53 | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,018.15 | | | | 1.34% | | | $ | 6.71 | |
June 30, 2013
Disclosure of Fund Expenses (Unaudited)
For the Six Months Ended June 30, 2013
| | | | | | | | | | | | | | | | |
| Forward Real Estate Fund | | Beginning
Account Value
01/01/2013 | | | Ending
Account Value
06/30/2013 | | | Expense
Ratio(a) | | | Expenses Paid
During Period(b)
01/01/13-06/30/13 | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,066.30 | | | | 1.62% | | | $ | 8.30 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,016.76 | | | | 1.62% | | | $ | 8.10 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,067.50 | | | | 1.25% | | | $ | 6.41 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,018.60 | | | | 1.25% | | | $ | 6.26 | |
| Class A | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,066.00 | | | | 1.64% | | | $ | 8.40 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,016.66 | | | | 1.64% | | | $ | 8.20 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,062.70 | | | | 2.22% | | | $ | 11.35 | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,013.79 | | | | 2.22% | | | $ | 11.08 | |
| | | | |
| Forward Real Estate Long/Short Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,070.50 | | | | 1.77% | | | $ | 9.09 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,016.02 | | | | 1.77% | | | $ | 8.85 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,072.20 | | | | 1.39% | | | $ | 7.14 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.90 | | | | 1.39% | | | $ | 6.95 | |
| Class A | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,070.20 | | | | 1.78% | | | $ | 9.14 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,015.97 | | | | 1.78% | | | $ | 8.90 | |
| Class B | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,066.70 | | | | 2.36% | | | $ | 12.09 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,013.09 | | | | 2.36% | | | $ | 11.78 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,066.90 | | | | 2.36% | | | $ | 12.09 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,013.09 | | | | 2.36% | | | $ | 11.78 | |
| Advisor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,072.40 | | | | 1.39% | | | $ | 7.14 | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.90 | | | | 1.39% | | | $ | 6.95 | |
| | | | |
| Forward Select Income Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,054.30 | | | | 1.59% | | | $ | 8.10 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,016.91 | | | | 1.59% | | | $ | 7.95 | |
June 30, 2013
Disclosure of Fund Expenses (Unaudited)
For the Six Months Ended June 30, 2013
| | | | | | | | | | | | | | | | |
| Forward Select Income Fund (continued) | | Beginning
Account Value
01/01/2013 | | | Ending
Account Value
06/30/2013 | | | Expense
Ratio(a) | | | Expenses Paid
During Period(b)
01/01/13-06/30/13 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,056.30 | | | | 1.19% | | | $ | 6.07 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,018.89 | | | | 1.19% | | | $ | 5.96 | |
| Class A | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,054.50 | | | | 1.59% | | | $ | 8.10 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,016.91 | | | | 1.59% | | | $ | 7.95 | |
| Class B | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,051.40 | | | | 2.17% | | | $ | 11.04 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,014.03 | | | | 2.17% | | | $ | 10.84 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,051.30 | | | | 2.17% | | | $ | 11.04 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,014.03 | | | | 2.17% | | | $ | 10.84 | |
| Advisor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,056.70 | | | | 1.21% | | | $ | 6.17 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,018.79 | | | | 1.21% | | | $ | 6.06 | |
(a) Annualized, based on the Fund’s most recent fiscal half year expenses.
(b) Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year (181), then divided by 365.
June 30, 2013
Summary of Portfolio Holdings (Note 10) (Unaudited)
Under Securities and Exchange Commission Rules, all funds are required to include in their annual and semi-annual shareholder reports a presentation of portfolio holdings in a table, chart or graph by reasonably identifiable categories. The following tables which present portfolio holdings as a percent of total net assets are provided in compliance with such requirements.
| | | | |
| Forward Global Infrastructure Fund | | | | |
United States | | | 21.61% | |
China | | | 9.19% | |
Japan | | | 8.45% | |
Hong Kong | | | 6.93% | |
France | | | 6.73% | |
Indonesia | | | 6.53% | |
United Kingdom | | | 3.71% | |
Canada | | | 3.13% | |
Italy | | | 2.89% | |
Thailand | | | 2.62% | |
Turkey | | | 2.49% | |
Australia | | | 2.46% | |
Mexico | | | 2.13% | |
Malaysia | | | 1.69% | |
Philippines | | | 1.53% | |
Austria | | | 1.39% | |
Germany | | | 1.30% | |
Chile | | | 1.22% | |
Brazil | | | 1.13% | |
Norway | | | 1.09% | |
Poland | | | 1.03% | |
Switzerland | | | 1.00% | |
South Korea | | | 0.81% | |
Taiwan | | | 0.78% | |
Luxembourg | | | 0.69% | |
Israel | | | 0.67% | |
Czech Republic | | | 0.58% | |
Cyprus | | | 0.56% | |
Singapore | | | 0.54% | |
South Africa | | | 0.51% | |
Net Cash & Cash Equivalents | | | 4.61% | |
| | | 100.00% | |
| |
| Forward International Real Estate Fund | | | | |
Hong Kong | | | 36.15% | |
Canada | | | 33.06% | |
Australia | | | 10.61% | |
| | | | |
| |
Philippines | | | 3.64% | |
Malaysia | | | 3.37% | |
Singapore | | | 2.81% | |
Japan | | | 1.61% | |
Norway | | | 1.27% | |
Sweden | | | 0.79% | |
Netherlands | | | 0.74% | |
United Kingdom | | | 0.70% | |
Finland | | | 0.49% | |
France | | | 0.33% | |
Net Cash & Cash Equivalents | | | 4.43% | |
| | | 100.00% | |
| |
| Forward Real Estate Fund | | | | |
REITs-Apartments | | | 21.03% | |
REITs-Office Property | | | 13.72% | |
REITs-Diversified | | | 13.68% | |
REITs-Regional Malls | | | 11.05% | |
REITs-Health Care | | | 8.90% | |
REITs-Hotels | | | 8.18% | |
REITs-Shopping Centers | | | 4.95% | |
REITs-Warehouse/Industrial | | | 4.78% | |
REITs-Storage | | | 2.66% | |
Real Estate Operating/Development | | | 2.64% | |
Net Cash & Cash Equivalents | | | 8.41% | |
| | | 100.00% | |
| |
| Forward Real Estate Long/Short Fund* | | | | |
REITs-Apartments | | | 21.89% | |
REITs-Office Property | | | 20.66% | |
REITs-Hotels | | | 11.91% | |
REITs-Diversified | | | 11.23% | |
REITs-Shopping Centers | | | 8.49% | |
REITs-Regional Malls | | | 8.04% | |
REITs-Health Care | | | 6.45% | |
Real Estate Operating/Development | | | 6.35% | |
REITs-Mortgage | | | 6.30% | |
REITs-Warehouse/Industrial | | | 4.51% | |
June 30, 2013
Summary of Portfolio Holdings (Note 10) (Unaudited)
| | | | |
| Forward Real Estate Long/Short Fund* (continued) | | | | |
REITs-Storage | | | 2.62% | |
REITs-Specialized | | | 2.30% | |
Financials-Mortgage | | | 0.98% | |
Exchange-Traded Funds | | | 0.61% | |
Oil, Gas & Consumable Fuels | | | 0.37% | |
Hotels & Motels | | | 0.21% | |
Net Other Assets and Liabilities | | | -12.92% | |
| | | 100.00% | |
| |
| Forward Select Income Fund | | | | |
REITs-Hotels | | | 18.89% | |
REITs-Shopping Centers | | | 14.19% | |
REITs-Diversified | | | 12.12% | |
REITs-Office Property | | | 11.85% | |
REITs-Warehouse/Industrial | | | 9.07% | |
REITs-Mortgage | | | 8.70% | |
REITs-Apartments | | | 6.09% | |
REITs-Regional Malls | | | 5.66% | |
REITs-Health Care | | | 4.75% | |
Real Estate Operating/Development | | | 2.64% | |
REITs-Specialized | | | 2.43% | |
Retail-Toy Store | | | 2.37% | |
REITs-Manufactured Homes | | | 2.17% | |
Department Stores | | | 1.77% | |
Medical-Nursing Homes | | | 1.32% | |
REITs-Residential | | | 1.00% | |
Real Estate Management/Services | | | 0.95% | |
REITs-Industrial | | | 0.90% | |
Oil, Gas & Consumable Fuels | | | 0.34% | |
Other | | | 0.30% | |
Net Other Assets and Liabilities | | | -7.51% | |
| | | 100.00% | |
These allocations may not reflect the current or future position of the portfolios.
* Weightings reflect long positions and excludes securities sold short, short-term instruments and derivative instruments.
REIT — Real Estate Investment Trust
June 30, 2013
Portfolio of Investments (Note 10) (Unaudited)
Forward Global Infrastructure Fund
| | | | | | | | | | |
| Shares | | | | Value (Note 2) | |
| | |
| | Common Stocks: 95.39% | | | | | | |
| | Australia: 2.46% | | | | | | |
| | | |
| | 65,000 | | | Monadelphous Group, Ltd. | | | | $ | 959,458 | |
| | | |
| | 2,000,000 | | | NRW Holdings, Ltd. | | | | | 1,664,487 | |
| | | |
| | 310,000 | | | Transurban Group | | | | | 1,916,538 | |
| | | |
| | | | | | | | | 4,540,483 | |
| | | | | | | | | | |
| | Austria: 1.39% | | | | | | |
| | | |
| | 50,200 | | | Andritz AG | | | | | 2,576,127 | |
| | | | | | | | | | |
| | Brazil: 1.13% | | | | | | |
| | | |
| | 175,000 | | | Companhia de Concessoes Rodoviarias | | | | | 1,392,879 | |
| | | |
| | 100,000 | | | Ecorodovias Infraestrutura e Logistica SA | | | | | 699,576 | |
| | | |
| | | | | | | | | 2,092,455 | |
| | | | | | | | | | |
| | Canada: 3.13% | | | | | | |
| | | |
| | 47,000 | | | Black Diamond Group, Ltd. | | | | | 998,811 | |
| | | |
| | 51,500 | | | Potash Corp. of Saskatchewan, Inc. | | | | | 1,963,695 | |
| | | |
| | 96,000 | | | Suncor Energy, Inc. | | | | | 2,829,705 | |
| | | |
| | | | | | | | | 5,792,211 | |
| | | | | | | | | | |
| | Chile: 1.22% | | | | | | |
| | | |
| | 138,000 | | | Enersis SA, Sponsored ADR | | | | | 2,257,680 | |
| | | | | | | | | | |
| | China: 9.19% | | | | | | |
| | | |
| | 500,000 | | | China Shenhua Energy Co., Ltd., Class H | | | | | 1,276,423 | |
| | | |
| | 1,950,000 | | | CIMC Enric Holdings, Ltd. | | | | | 3,032,085 | |
| | | |
| | 861,000 | | | ENN Energy Holdings, Ltd. | | | | | 4,590,268 | |
| | | |
| | 1,300,000 | | | Harbin Electric Co., Ltd., Class H | | | | | 859,845 | |
| | | |
| | 2,800,000 | | | Hilong Holding, Ltd. | | | | | 1,646,199 | |
| | | |
| | 2,237,000 | | | Jiangsu Expressway Co., Ltd., Class H | | | | | 2,307,359 | |
| | | |
| | 900,000 | | | PetroChina Co., Ltd., Series H | | | | | 957,317 | |
| | | |
| | 2,324,000 | | | Shenzhen Expressway Co., Ltd., Class H | | | | | 853,966 | |
| | | |
| | 1,825,000 | | | Zhejiang Expressway Co., Ltd., Class H | | | | | 1,487,097 | |
| | | |
| | | | | | | | | 17,010,559 | |
| | | | | | | | | | |
| | Cyprus: 0.56% | | | | | | |
| | | |
| | 75,000 | | | Globaltrans Investment Plc, Sponsored GDR(a) | | | | | 1,030,500 | |
| | | | | | | | | | |
| | Czech Republic: 0.58% | | | | | | |
| | | |
| | 45,000 | | | CEZ AS | | | | | 1,078,516 | |
| | | | | | | | | | |
| | France: 6.73% | | | | | | |
| | | |
| | 10,500 | | | Aeroports de Paris | | | | | 1,021,080 | |
| | | | | | | | | | |
| Shares | | | | Value (Note 2) | |
| | | |
| | 385,000 | | | Groupe Eurotunnel SA | | | | $ | 2,928,618 | |
| | | |
| | 24,000 | | | Total SA | | | | | 1,171,635 | |
| | | |
| | 112,000 | | | Vinci SA | | | | | 5,620,701 | |
| | | |
| | 90,000 | | | Vivendi SA | | | | | 1,704,501 | |
| | | |
| | | | | | | | | 12,446,535 | |
| | | | | | | | | | |
| | Germany: 1.30% | | | | | | |
| | | |
| | 27,500 | | | Fraport AG Frankfurt Airport Services Worldwide | | | | | 1,663,759 | |
| | | |
| | 7,300 | | | Siemens AG | | | | | 737,830 | |
| | | |
| | | | | | | | | 2,401,589 | |
| | | | | | | | | | |
| | Hong Kong: 6.93% | | | | | | |
| | | |
| | 4,500,229 | | | China Water Affairs Group, Ltd. | | | | | 1,688,445 | |
| | | |
| | 3,301,104 | | | COSCO Pacific, Ltd. | | | | | 4,290,216 | |
| | | |
| | 1,545,750 | | | First Pacific Co., Ltd. | | | | | 1,656,150 | |
| | | |
| | 2,500,000 | | | Guangdong Investment, Ltd. | | | | | 2,166,051 | |
| | | |
| | 650,000 | | | SmarTone Telecommunications Holdings, Ltd. | | | | | 1,079,415 | |
| | | |
| | 3,847,000 | | | Yuexiu Transport Infrastructure, Ltd. | | | | | 1,944,320 | |
| | | |
| | | | | | | | | 12,824,597 | |
| | | | | | | | | | |
| | Indonesia: 6.53% | | | | | | |
| | | |
| | 29,300,000 | | | Bekasi Fajar Industrial Estate Tbk PT(b) | | | | | 2,332,191 | |
| | | |
| | 8,000,000 | | | Express Transindo Utama Tbk PT(b) | | | | | 1,088,161 | |
| | | |
| | 5,000,000 | | | Perusahaan Gas Negara Persero Tbk PT | | | | | 2,896,726 | |
| | | |
| | 950,000 | | | Semen Indonesia Persero Tbk PT | | | | | 1,636,776 | |
| | | |
| | 1,125,500 | | | Tambang Batubara Bukit Asam Persero Tbk PT | | | | | 1,508,227 | |
| | | |
| | 2,300,000 | | | Telekomunikasi Indonesia Persero Tbk PT | | | | | 2,607,053 | |
| | | |
| | | | | | | | | 12,069,134 | |
| | | | | | | | | | |
| | Israel: 0.67% | | | | | | |
| | | |
| | 25,000 | | | Check Point Software Technologies, Ltd.(b) | | | | | 1,242,000 | |
| | | | | | | | | | |
| | Italy: 2.89% | | | | | | |
| | | |
| | 165,000 | | | Ansaldo STS SpA | | | | | 1,596,822 | |
| | | |
| | 177,500 | | | Danieli & C. Officine Meccaniche SpA | | | | | 2,675,462 | |
| | | |
| | 131,274 | | | Societa Iniziative Autostradali Servizi SpA | | | | | 1,073,930 | |
| | | |
| | | | | | | | | 5,346,214 | |
| | | | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 17 | | June 30, 2013 |
Portfolio of Investments (Note 10) (Unaudited)
Forward Global Infrastructure Fund
| | | | | | | | | | |
| Shares | | | | Value (Note 2) | |
| | Japan: 8.45% | | | | | | |
| | | |
| | 12,000 | | | East Japan Railway Co. | | | | $ | 932,849 | |
| | | |
| | 140,000 | | | Fujitec Co., Ltd. | | | | | 1,403,105 | |
| | | |
| | 240,000 | | | Hitachi, Ltd. | | | | | 1,541,440 | |
| | | |
| | 225 | | | Inpex Corp. | | | | | 939,201 | |
| | | |
| | 38,000 | | | Itochu Techno-Solutions Corp. | | | | | 1,572,797 | |
| | | |
| | 87,600 | | | KDDI Corp. | | | | | 4,557,532 | |
| | | |
| | 75,000 | | | Kurita Water Industries, Ltd. | | | | | 1,588,778 | |
| | | |
| | 69,000 | | | Maeda Road Construction Co., Ltd. | | | | | 1,072,081 | |
| | | |
| | 374,000 | | | Sankyu, Inc. | | | | | 1,410,325 | |
| | | |
| | 110,000 | | | Tokyo Gas Co., Ltd. | | | | | 607,784 | |
| | | |
| | | | | | | | | 15,625,892 | |
| | | | | | | | | | |
| | Luxembourg: 0.69% | | | | | | |
| | | |
| | 31,800 | | | Tenaris SA, ADR | | | | | 1,280,586 | |
| | | | | | | | | | |
| | Malaysia: 1.69% | | | | | | |
| | | |
| | 545,000 | | | IJM Corp. Bhd | | | | | 974,600 | |
| | | |
| | 1,075,000 | | | Malaysia Airports Holdings Bhd | | | | | 2,146,938 | |
| | | |
| | | | | | | | | 3,121,538 | |
| | | | | | | | | | |
| | Mexico: 2.13% | | | | | | |
| | | |
| | 100,500 | | | America Movil SAB de CV, ADR, Series L | | | | | 2,185,875 | |
| | | |
| | 350,000 | | | OHL Mexico SAB de CV(b) | | | | | 831,954 | |
| | | |
| | 100,000 | | | Promotora Operador Infrastructure SAB de CV(b) | | | | | 918,313 | |
| | | |
| | | | | | | | | 3,936,142 | |
| | | | | | | | | | |
| | Norway: 1.09% | | | | | | |
| | | |
| | 2,335,000 | | | Vard Holdings, Ltd. | | | | | 2,008,008 | |
| | | | | | | | | | |
| | Philippines: 1.53% | | | | | | |
| | | |
| | 50,000 | | | Ayala Corp. | | | | | 671,296 | |
| | | |
| | 737,100 | | | International Container Terminal Services, Inc. | | | | | 1,484,437 | |
| | | |
| | 5,500,000 | | | Metro Pacific Investments Corp. | | | | | 672,223 | |
| | | |
| | | | | | | | | 2,827,956 | |
| | | | | | | | | | |
| | Poland: 1.03% | | | | | | |
| | | |
| | 160,000 | | | Enea SA | | | | | 637,554 | |
| | | |
| | 970,000 | | | Tauron Polska Energia SA | | | | | 1,258,224 | |
| | | |
| | | | | | | | | 1,895,778 | |
| | | | | | | | | | |
| | | | | | | | | | |
| Shares | | | | Value (Note 2) | |
| | Singapore: 0.54% | | | | | | |
| | | |
| | 255,000 | | | SembCorp Industries, Ltd. | | | | $ | 995,858 | |
| | | | | | | | | | |
| | South Africa: 0.51% | | | | | | |
| | | |
| | 51,000 | | | MTN Group, Ltd. | | | | | 949,312 | |
| | | | | | | | | | |
| | South Korea: 0.81% | | | | | | |
| | | |
| | 8,100 | | | SK Telecom Co., Ltd. | | | | | 1,489,427 | |
| | | | | | | | | | |
| | Switzerland: 1.00% | | | | | | |
| | | |
| | 62,000 | | | ABB, Ltd. | | | | | 1,346,270 | |
| | | |
| | 1,000 | | | Flughafen Zuerich AG | | | | | 502,356 | |
| | | |
| | | | | | | | | 1,848,626 | |
| | | | | | | | | | |
| | Taiwan: 0.78% | | | | | | |
| | | |
| | 190,000 | | | Cleanaway Co., Ltd.(b) | | | | | 1,451,737 | |
| | | | | | | | | | |
| | Thailand: 2.62% | | | | | | |
| | | |
| | 165,000 | | | Electricity Generating Pcl, Non-Voting Depositary Receipt | | | | | 718,201 | |
| | | |
| | 225,000 | | | Glow Energy Pcl, Non-Voting Depositary Receipt | | | | | 520,514 | |
| | | |
| | 518,358 | | | PTT Exploration & Production Pcl | | | | | 2,649,033 | |
| | | |
| | 22,200 | | | Shin Corp. Pcl | | | | | 62,273 | |
| | | |
| | 317,800 | | | Shin Corp. Pcl, Non-Voting Depositary Receipt | | | | | 891,459 | |
| | | |
| | | | | | | | | 4,841,480 | |
| | | | | | | | | | |
| | Turkey: 2.49% | | | | | | |
| | | |
| | 628,571 | | | Enka Insaat ve Sanayi AS | | | | | 1,580,635 | |
| | | |
| | 225,000 | | | Netas Telekomunikasyon AS | | | | | 1,056,930 | |
| | | |
| | 575,000 | | | Tekfen Holding AS | | | | | 1,967,646 | |
| | | |
| | | | | | | | | 4,605,211 | |
| | | | | | | | | | |
| | United Kingdom: 3.71% | | | | | | |
| | | |
| | 55,000 | | | AMEC Plc | | | | | 840,710 | |
| | | |
| | 320,000 | | | Centrica Plc | | | | | 1,753,118 | |
| | | |
| | 45,000 | | | Ensco Plc, Class A(c) | | | | | 2,615,400 | |
| | | |
| | 71,254 | | | Scottish & Southern Energy Plc | | | | | 1,650,542 | |
| | | |
| | | | | | | | | 6,859,770 | |
| | | | | | | | | | |
| | United States: 21.61% | | | | | | |
| | | |
| | 87,500 | | | AES Corp. | | | | | 1,049,125 | |
| | | |
| | 15,600 | | | CF Industries Holdings, Inc. | | | | | 2,675,400 | |
| | | |
| | 143,000 | | | Cisco Systems, Inc. | | | | | 3,476,330 | |
| | | |
| | 31,500 | | | CME Group, Inc. | | | | | 2,393,370 | |
| | | | |
| June 30, 2013 | | 18 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward Global Infrastructure Fund
| | | | | | | | | | |
| Shares | | | | Value (Note 2) | |
| | United States (continued): 21.61% | | | | | | |
| | | |
| | 120,000 | | | CSX Corp. | | | | $ | 2,782,800 | |
| | | |
| | 39,500 | | | Eaton Corp. Plc | | | | | 2,599,495 | |
| | | |
| | 101,500 | | | Freeport-McMoRan Copper & Gold, Inc. | | | | | 2,802,415 | |
| | | |
| | 73,500 | | | KBR, Inc. | | | | | 2,388,750 | |
| | | |
| | 330,000 | | | McDermott International, Inc.(b)(c) | | | | | 2,699,400 | |
| | | |
| | 23,000 | | | National Oilwell Varco, Inc. | | | | | 1,584,700 | |
| | | |
| | 54,200 | | | Norfolk Southern Corp. | | | | | 3,937,630 | |
| | | |
| | 5,500 | | | Oil States International, Inc.(b) | | | | | 509,520 | |
| | | |
| | 33,300 | | | Parker Hannifin Corp. | | | | | 3,176,820 | |
| | | |
| | 168,000 | | | Peabody Energy Corp. | | | | | 2,459,520 | |
| | | |
| | 61,500 | | | Schnitzer Steel Industries, Inc., Class A | | | | | 1,437,870 | |
| | | |
| | 29,500 | | | Targa Resources Corp. | | | | | 1,897,735 | |
| | | |
| | 64,934 | | | Williams Cos., Inc.(c) | | | | | 2,108,407 | |
| | | |
| | | | | | | | | 39,979,287 | |
| | | | | | | | | | |
| | | | Total Common Stocks
(Cost $173,017,125) | | | | | 176,425,208 | |
| | | |
| | | | Total Investments: 95.39% (Cost $173,017,125) | | | | | 176,425,208 | |
| | |
| | | | Net Other Assets and Liabilities: 4.61% | | | 8,522,781 | |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 184,947,989 | |
Percentages are stated as a percent of net assets.
(a) Securities were purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such securities cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. These securities have been deemed liquid under guidelines approved by the Fund’s Board of Trustees. At period end, the aggregate market value of those securities was $1,030,500 representing 0.56% of net assets.
(b) Non-income producing security.
(c) Security, or portion of security, is being held as collateral for potential transactions in options written. At period end, the aggregate market value of those securities was $3,147,517, representing 1.70% of net assets.
Investment Abbreviations:
ADR — American Depositary Receipt
GDR — Global Depositary Receipt
| | | | |
| See Notes to Financial Statements | | 19 | | June 30, 2013 |
Portfolio of Investments (Note 10) (Unaudited)
Forward International Real Estate Fund
| | | | | | | | | | |
| Shares | | | | | | | Value (Note 2) | |
|
| | Common Stocks: 95.57% | |
| | Australia: 10.61% | |
| | | |
| | 45,743 | | | Carindale Property Trust | | | | $ | 229,253 | |
| | | |
| | 850,000 | | | CFS Retail Property Trust Group | | | | | 1,554,741 | |
| | | |
| | 91,000 | | | Charter Hall Group | | | | | 322,078 | |
| | | |
| | 634,796 | | | Commonwealth Property Office Fund | | | | | 638,610 | |
| | | |
| | 500,000 | | | Dexus Property Group | | | | | 489,286 | |
| | | |
| | 500,000 | | | Federation Centres, Ltd. | | | | | 1,083,746 | |
| | | |
| | 300,000 | | | GPT Group | | | | | 1,053,565 | |
| | | |
| | 500,000 | | | Investa Office Fund | | | | | 1,330,675 | |
| | | |
| | 825,000 | | | Mirvac Group | | | | | 1,210,983 | |
| | | |
| | 300,644 | | | Westfield Group | | | | | 3,145,485 | |
| | | |
| | 1,800,000 | | | Westfield Retail Trust | | | | | 5,103,207 | |
| | | |
| | | | | | | | | 16,161,629 | |
| | | | | | | | | | |
| | Canada: 33.06% | |
| | | |
| | 154,750 | | | Allied Properties REIT | | | | | 4,710,038 | |
| | | |
| | 68,900 | | | Boardwalk REIT | | | | | 3,818,751 | |
| | | |
| | 109,580 | | | Brookfield Canada Office Properties | | | | | 2,718,401 | |
| | | |
| | 125,100 | | | Canadian Apartment Properties REIT | | | | | 2,694,224 | |
| | | |
| | 399,600 | | | Dundee Industrial REIT | | | | | 3,442,404 | |
| | | |
| | 442,100 | | | Dundee REIT, Class A | | | | | 13,720,780 | |
| | | |
| | 437,900 | | | H&R REIT | | | | | 9,176,872 | |
| | | |
| | 581,475 | | | Holloway Lodging Corp. | | | | | 1,946,175 | |
| | | |
| | 250,000 | | | Killam Properties, Inc. | | | | | 2,543,501 | |
| | | |
| | 21,400 | | | Northern Property REIT | | | | | 557,739 | |
| | | |
| | 638,800 | | | Pure Industrial Real Estate Trust | | | | | 2,794,029 | |
| | | |
| | 150,000 | | | Retrocom Mid-Market REIT | | | | | 740,230 | |
| | | |
| | 50,000 | | | RioCan REIT | | | | | 1,201,388 | |
| | | |
| | 56,700 | | | Temple Hotels, Inc. | | | | | 288,972 | |
| | | |
| | | | | | | | | 50,353,504 | |
| | | | | | | | | | |
| | Finland: 0.49% | |
| | | |
| | 241,826 | | | Citycon OYJ | | | | | 752,303 | |
| | | | | | | | | | |
| | France: 0.33% | |
| | | |
| | 9,987 | | | Societe Fonciere Lyonnaise SA | | | | | 506,981 | |
| | | | | | | | | | |
| | | | | | | | | | |
| Shares | | | | | | | Value (Note 2) | |
| | Hong Kong: 36.15% | |
| | | |
| | 5,784,000 | | | Asia Orient Holdings, Ltd.(a) | | | | $ | 1,163,355 | |
| | | |
| | 22,870,000 | | | Asia Standard Hotel(a) | | | | | 2,948,666 | |
| | | |
| | 16,894,000 | | | Asia Standard International Group, Ltd. | | | | | 3,637,545 | |
| | | |
| | 67,400 | | | China Motor Bus Co., Ltd. | | | | | 564,849 | |
| | | |
| | 4,888,000 | | | Chuang’s Consortium International, Ltd.(a) | | | | | 623,915 | |
| | | |
| | 343,114,116 | | | CSI Properties, Ltd. | | | | | 14,377,433 | |
| | | |
| | 5,471,000 | | | Dorsett Hospitality International, Ltd. | | | | | 1,269,693 | |
| | | |
| | 350,000 | | | Hang Lung Properties, Ltd. | | | | | 1,220,660 | |
| | | |
| | 300,000 | | | Hopewell Holdings, Ltd. | | | | | 999,865 | |
| | | |
| | 112,215 | | | Hysan Development Co., Ltd. | | | | | 486,850 | |
| | | |
| | 247,000 | | | ITC Properties Group, Ltd. | | | | | 103,181 | |
| | | |
| | 860,500 | | | Kerry Properties, Ltd. | | | | | 3,372,748 | |
| | | |
| | 42,119,000 | | | Lai Fung Holdings, Ltd. | | | | | 847,153 | |
| | | |
| | 176,881,000 | | | Lai Sun Development(a) | | | | | 4,629,527 | |
| | | |
| | 15,150,000 | | | Magnificent Estates | | | | | 732,493 | |
| | | |
| | 813,000 | | | New World Development Co., Ltd. | | | | | 1,125,782 | |
| | | |
| | 680,000 | | | Regal REIT | | | | | 206,033 | |
| | | |
| | 1,162,000 | | | Safety Godown Co., Ltd. | | | | | 1,573,095 | |
| | | |
| | 1,414,000 | | | Sino Land Co., Ltd. | | | | | 1,990,817 | |
| | | |
| | 2,528,000 | | | Soundwill Holdings, Ltd. | | | | | 5,201,988 | |
| | | |
| | 2,231,000 | | | Sunlight REIT | | | | | 911,839 | |
| | | |
| | 11,230,000 | | | Wing Tai Properties, Ltd. | | | | | 7,080,241 | |
| | | |
| | | | | | | | | 55,067,728 | |
| | | | | | | | | | |
| | Japan: 1.61% | | | | |
| | | |
| | 180 | | | Kenedix Realty Investment Corp. | | | | | 716,878 | |
| | | |
| | 177 | | | Nippon Accommodations Fund, Inc. | | | | | 1,158,228 | |
| | | |
| | 123 | | | Sekisui House SI Investment Co. | | | | | 584,740 | |
| | | |
| | | | | | | | | 2,459,846 | |
| | | | | | | | | | |
| | Malaysia: 3.37% | | | | |
| | | |
| | 734,925 | | | Hektar REIT | | | | | 365,195 | |
| | | |
| | 700,000 | | | KLCC Property Holdings Bhd | | | | | 1,506,567 | |
| | | |
| | 2,203,500 | | | Pavilion REIT | | | | | 1,053,105 | |
| | | |
| | 2,198,800 | | | Quill Capita Trust | | | | | 849,038 | |
| | | |
| | 1,800,000 | | | Starhill REIT | | | | | 603,893 | |
| | | |
| | 1,480,400 | | | Tower REIT | | | | | 749,688 | |
| | | |
| | | | | | | | | 5,127,486 | |
| | | | |
| June 30, 2013 | | 20 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward International Real Estate Fund
| | | | | | | | | | |
| Shares | | | | | | | Value (Note 2) | |
| | Netherlands: 0.74% | | | | |
| | | |
| | 28,446 | | | Corio NV | | | | $ | 1,131,716 | |
| | | | | | | | | | |
| | Norway: 1.27% | | | | |
| | | |
| | 1,530,342 | | | Norwegian Property ASA | | | | | 1,939,900 | |
| | | | | | | | | | |
| | Philippines: 3.64% | | | | |
| | | |
| | 16,563,000 | | | Empire East Land Holdings, Inc.(a) | | | | | 360,398 | |
| | | |
| | 15,750,000 | | | Filinvest Land, Inc. | | | | | 619,792 | |
| | | |
| | 3,100,000 | | | Global-Estate Resorts, Inc.(a) | | | | | 129,167 | |
| | | |
| | 5,000,000 | | | Megaworld Corp. | | | | | 381,944 | |
| | | |
| | 6,111,000 | | | Philippine Racing Club | | | | | 1,322,635 | |
| | | |
| | 11,000,000 | | | Rockwell Land Corp.(a) | | | | | 572,917 | |
| | | |
| | 4,509,000 | | | Shang Properties, Inc. | | | | | 354,875 | |
| | | |
| | 1,300,000 | | | Starmalls, Inc.(a) | | | | | 114,352 | |
| | | |
| | 13,000,000 | | | Vista Land & Lifescapes, Inc. | | | | | 1,691,204 | |
| | | |
| | | | | | | | | 5,547,284 | |
| | | | | | | | | | |
| | Singapore: 2.81% | | | | |
| | | |
| | 459,000 | | | Frasers Commercial Trust | | | | | 499,739 | |
| | | |
| | 1,380,000 | | | Sabana Shari’ah Compliant Industrial REIT | | | | | 1,257,515 | |
| | | |
| | 120,000 | | | Singapore Land, Ltd. | | | | | 849,231 | |
| | | |
| | 2,510,000 | | | Starhill Global REIT | | | | | 1,673,333 | |
| | | |
| | 2,700 | | | Wing Tai Holdings, Ltd. | | | | | 4,367 | |
| | | |
| | | | | | | | | 4,284,185 | |
| | | | | | | | | | |
| | Sweden: 0.79% | | | | |
| | | |
| | 100,000 | | | Hufvudstaden AB, Class A | | | | | 1,195,926 | |
| | | | | | | | | | |
| | United Kingdom: 0.70% | | | | |
| | | |
| | 143,000 | | | Hammerson Plc | | | | | 1,059,863 | |
| | |
| | | | Total Common Stocks
(Cost $152,529,955) | | | 145,588,351 | |
| | | | | | | | | | |
| | | | | | | | | | |
| Shares | | | | | | | Value (Note 2) | |
| |
| | Rights: 0.00% | | | | |
| | Hong Kong: 0.00% | | | | |
| | | |
| | 10,163 | | | New World Development Co., Ltd.(a) | | | | $ | 0 | |
| | |
| | | | Total Rights
(Cost $0) | | | 0 | |
| | |
| | | | Total Investments: 95.57%
(Cost $152,529,955) | | | 145,588,351 | |
| | |
| | | | Net Other Assets and Liabilities: 4.43% | | | 6,743,758 | |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 152,332,109 | |
Percentages are stated as a percent of net assets.
(a) Non-income producing security.
Investment Abbreviations:
REIT — Real Estate Investment Trust
| | | | |
| See Notes to Financial Statements | | 21 | | June 30, 2013 |
Portfolio of Investments (Note 10) (Unaudited)
Forward Real Estate Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | |
| | Common Stocks: 91.59% | | | | | | |
| | Real Estate Operating/Development: 2.64% | | | | | | |
| | | |
| | 51,877 | | | Forest City Enterprises, Inc., Class A(a) | | | | $ | 929,117 | |
| | | |
| | 98,952 | | | Thomas Properties Group, Inc. | | | | | 524,446 | |
| | | |
| | | | | | | | | 1,453,563 | |
| | | | | | | | | | |
| | REITs-Apartments: 21.03% | | | | | | |
| | | |
| | 15,200 | | | American Campus Communities, Inc. | | | | | 618,032 | |
| | | |
| | 7,500 | | | Apartment Investment & Management Co., Class A | | | | | 225,300 | |
| | | |
| | 14,066 | | | Associated Estates Realty Corp. | | | | | 226,181 | |
| | | |
| | 24,158 | | | AvalonBay Communities, Inc. | | | | | 3,259,156 | |
| | | |
| | 4,600 | | | BRE Properties, Inc. | | | | | 230,092 | |
| | | |
| | 6,633 | | | Camden Property Trust | | | | | 458,606 | |
| | | |
| | 44,223 | | | Campus Crest Communities, Inc. | | | | | 510,333 | |
| | | |
| | 50,300 | | | Equity Residential | | | | | 2,920,418 | |
| | | |
| | 3,000 | | | Essex Property Trust, Inc. | | | | | 476,760 | |
| | | |
| | 11,200 | | | Home Properties, Inc. | | | | | 732,144 | |
| | | |
| | 4,000 | | | Post Properties, Inc. | | | | | 197,960 | |
| | | |
| | 82,900 | | | Trade Street Residential, Inc. | | | | | 729,520 | |
| | | |
| | 38,100 | | | UDR, Inc. | | | | | 971,169 | |
| | | |
| | | | | | | | | 11,555,671 | |
| | | | | | | | | | |
| | REITs-Diversified: 13.68% | | | | | | |
| | | |
| | 42,700 | | | Armada Hoffler Properties, Inc. | | | | | 503,006 | |
| | | |
| | 24,092 | | | Cousins Properties, Inc. | | | | | 243,329 | |
| | | |
| | 37,200 | | | Digital Realty Trust, Inc. | | | | | 2,269,200 | |
| | | |
| | 70,861 | | | Investors Real Estate Trust | | | | | 609,405 | |
| | | |
| | 56,526 | | | Lexington Realty Trust | | | | | 660,224 | |
| | | |
| | 21,400 | | | Liberty Property Trust | | | | | 790,944 | |
| | | |
| | 17,172 | | | Vornado Realty Trust | | | | | 1,422,700 | |
| | | |
| | 5,279 | | | Washington REIT | | | | | 142,058 | |
| | | |
| | 73,204 | | | Winthrop Realty Trust | | | | | 880,644 | |
| | | |
| | | | | | | | | 7,521,510 | |
| | | | | | | | | | |
| | REITs-Health Care: 8.90% | | | | | | |
| | | |
| | 24,400 | | | HCP, Inc. | | | | | 1,108,736 | |
| | | |
| | 18,000 | | | Health Care REIT, Inc. | | | | | 1,206,540 | |
| | | |
| | 20,218 | | | Senior Housing Properties Trust | | | | | 524,253 | |
| | | |
| | 29,535 | | | Ventas, Inc. | | | | | 2,051,501 | |
| | | |
| | | | | | | | | 4,891,030 | |
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | REITs-Hotels: 8.18% | | | | | | |
| | | |
| | 11,315 | | | Chatham Lodging Trust | | | | $ | 194,392 | |
| | | |
| | 15,300 | | | Chesapeake Lodging Trust | | | | | 318,087 | |
| | | |
| | 81,244 | | | DiamondRock Hospitality Co. | | | | | 757,194 | |
| | | |
| | 25,800 | | | Hersha Hospitality Trust | | | | | 145,512 | |
| | | |
| | 71,158 | | | Host Hotels & Resorts, Inc. | | | | | 1,200,435 | |
| | | |
| | 10,400 | | | RLJ Lodging Trust | | | | | 233,896 | |
| | | |
| | 138,100 | | | Strategic Hotels & Resorts, Inc.(a) | | | | | 1,223,566 | |
| | | |
| | 44,695 | | | Summit Hotel Properties, Inc. | | | | | 422,368 | |
| | | |
| | | | | | | | | 4,495,450 | |
| | | | | | | | | | |
| | REITs-Office Property: 13.72% | | | | | | |
| | | |
| | 7,392 | | | Alexandria Real Estate Equities, Inc. | | | | | 485,802 | |
| | | |
| | 27,700 | | | BioMed Realty Trust, Inc. | | | | | 560,371 | |
| | | |
| | 16,094 | | | Boston Properties, Inc. | | | | | 1,697,434 | |
| | | |
| | 12,500 | | | Brandywine Realty Trust | | | | | 169,000 | |
| | | |
| | 5,800 | | | Corporate Office Properties Trust | | | | | 147,900 | |
| | | |
| | 5,700 | | | Douglas Emmett, Inc. | | | | | 142,215 | |
| | | |
| | 13,985 | | | DuPont Fabros Technology, Inc. | | | | | 337,738 | |
| | | |
| | 61,100 | | | Franklin Street Properties Corp. | | | | | 806,520 | |
| | | |
| | 18,800 | | | Government Properties Income Trust | | | | | 474,136 | |
| | | |
| | 7,150 | | | Hudson Pacific Properties, Inc. | | | | | 152,152 | |
| | | |
| | 3,400 | | | Kilroy Realty Corp. | | | | | 180,234 | |
| | | |
| | 29,100 | | | Mack-Cali Realty Corp. | | | | | 712,659 | |
| | | |
| | 195,787 | | | MPG Office Trust, Inc.(a) | | | | | 614,771 | |
| | | |
| | 5,882 | | | Parkway Properties, Inc. | | | | | 98,582 | |
| | | |
| | 10,899 | | | SL Green Realty Corp. | | | | | 961,183 | |
| | | |
| | | | | | | | | 7,540,697 | |
| | | | | | | | | | |
| | REITs-Regional Malls: 11.05% | | | | | | |
| | | |
| | 46,500 | | | General Growth Properties, Inc. | | | | | 923,955 | |
| | | |
| | 15,200 | | | Macerich Co. | | | | | 926,744 | |
| | | |
| | 26,747 | | | Simon Property Group, Inc. | | | | | 4,223,886 | |
| | | |
| | | | | | | | | 6,074,585 | |
| | | | | | | | | | |
| | REITs-Shopping Centers: 4.95% | | | | | | |
| | | |
| | 11,700 | | | Developers Diversified Realty Corp. | | | | | 194,805 | |
| | | |
| | 21,081 | | | Excel Trust, Inc. | | | | | 270,048 | |
| | | |
| | 7,946 | | | Federal Realty Investment Trust | | | | | 823,841 | |
| | | | |
| June 30, 2013 | | 22 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward Real Estate Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | REITs-Shopping Centers (continued): 4.95% | | | | | | |
| | | |
| | 34,203 | | | Kimco Realty Corp. | | | | $ | 732,970 | |
| | | |
| | 5,000 | | | Ramco-Gershenson Properties Trust | | | | | 77,650 | |
| | | |
| | 15,339 | | | Retail Opportunity Investments Corp. | | | | | 213,212 | |
| | | |
| | 5,100 | | | Tanger Factory Outlet Centers, Inc. | | | | | 170,646 | |
| | | |
| | 3,200 | | | Taubman Centers, Inc. | | | | | 240,480 | |
| | | |
| | | | | | | | | 2,723,652 | |
| | | | | | | | | | |
| | REITs-Storage: 2.66% | | | | | | |
| | | |
| | 7,300 | | | Public Storage, Inc. | | | | | 1,119,309 | |
| | | |
| | 5,300 | | | Sovran Self Storage, Inc. | | | | | 343,387 | |
| | | |
| | | | | | | | | 1,462,696 | |
| | | | | | | | | | |
| | REITs-Warehouse/Industrial: 4.78% | | | | | | |
| | | |
| | 7,423 | | | First Industrial Realty Trust, Inc. | | | | | 112,607 | |
| | | |
| | 30,593 | | | First Potomac Realty Trust | | | | | 399,545 | |
| | | |
| | 48,396 | | | ProLogis | | | | | 1,825,497 | |
| | | |
| | 7,900 | | | STAG Industrial, Inc. | | | | | 157,605 | |
| | | |
| | 7,200 | | | Terreno Realty Corp. | | | | | 133,416 | |
| | | |
| | | | | | | | | 2,628,670 | |
| | | |
| | | | Total Common Stocks
(Cost $39,330,939) | | | | | 50,347,524 | |
| | | |
| | | | Total Investments: 91.59%
(Cost $39,330,939) | | | | | 50,347,524 | |
| | | |
| | | | Net Other Assets and Liabilities: 8.41% | | | | | 4,624,118 | |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 54,971,642 | |
Percentages are stated as a percent of net assets.
(a) Non-income producing security.
Investment Abbreviations:
REIT — Real Estate Investment Trust
| | | | |
| See Notes to Financial Statements | | 23 | | June 30, 2013 |
Portfolio of Investments (Note 10) (Unaudited)
Forward Real Estate Long/Short Fund
| | | | | | | | | | |
| Shares | | | | Value
(Note 2) | |
| | |
| | Common Stocks: 101.72% | | | | | | |
| | Hotels & Motels: 0.21% | | | | | | |
| | | |
| | 75,000 | | | Overseas Union Enterprise, Ltd. | | | | $ | 168,047 | |
| | | | | | | | | | |
| | Oil, Gas & Consumable Fuels: 0.37% | | | | | | |
| | | |
| | 20,000 | | | Peabody Energy Corp. | | | | | 292,800 | |
| | | | | | | | | | |
| | Real Estate Operating/Development: 6.35% | | | | | | |
| | | |
| | 21,020,000 | | | CSI Properties, Ltd. | | | | | 880,796 | |
| | | |
| | 82,030 | | | Forest City Enterprises, Inc., Class A(a)(b) | | | | | 1,469,157 | |
| | | |
| | 81,000 | | | Global Logistic Properties, Ltd. | | | | | 175,740 | |
| | | |
| | 102,000 | | | Great Eagle Holdings, Ltd. | | | | | 389,928 | |
| | | |
| | 75,000 | | | Hysan Development Co., Ltd. | | | | | 325,391 | |
| | | |
| | 226,000 | | | Soundwill Holdings, Ltd. | | | | | 465,051 | |
| | | |
| | 12,020 | | | Terreno Realty Corp. | | | | | 222,731 | |
| | | |
| | 212,284 | | | Thomas Properties Group, Inc. | | | | | 1,125,105 | |
| | | |
| | | | | | | | | 5,053,899 | |
| | | | | | | | | | |
| | REITs-Apartments: 21.89% | | | | | | |
| | | |
| | 22,900 | | | American Campus Communities, Inc.(a) | | | | | 931,114 | |
| | | |
| | 14,500 | | | Apartment Investment & Management Co., Class A(a) | | | | | 435,580 | |
| | | |
| | 23,088 | | | Associated Estates Realty Corp. | | | | | 371,255 | |
| | | |
| | 32,042 | | | AvalonBay Communities, Inc.(a) | | | | | 4,322,787 | |
| | | |
| | 17,800 | | | Camden Property Trust(a) | | | | | 1,230,692 | |
| | | |
| | 76,008 | | | Campus Crest Communities, Inc.(a) | | | | | 877,132 | |
| | | |
| | 78,100 | | | Equity Residential(a) | | | | | 4,534,487 | |
| | | |
| | 5,000 | | | Essex Property Trust, Inc.(a) | | | | | 794,600 | |
| | | |
| | 20,500 | | | Home Properties, Inc.(a) | | | | | 1,340,085 | |
| | | |
| | 7,000 | | | Post Properties, Inc.(a) | | | | | 346,430 | |
| | | |
| | 87,000 | | | Trade Street Residential, Inc. | | | | | 765,600 | |
| | | |
| | 58,308 | | | UDR, Inc.(a) | | | | | 1,486,271 | |
| | | |
| | | | | | | | | 17,436,033 | |
| | | | | | | | | | |
| | REITs-Diversified: 10.64% | | | | | | |
| | | |
| | 64,200 | | | Armada Hoffler Properties, Inc. | | | | | 756,276 | |
| | | |
| | 16,000 | | | Astro Japan Property Group | | | | | 43,899 | |
| | | |
| | 41,008 | | | Cousins Properties, Inc. | | | | | 414,181 | |
| | | |
| | 104,634 | | | Investors Real Estate Trust | | | | | 899,852 | |
| | | |
| | 95,274 | | | Lexington Realty Trust(a) | | | | | 1,112,800 | |
| | | | | | | | | | |
| Shares | | | | Value
(Note 2) | |
| | | |
| | 21,400 | | | Liberty Property Trust | | | | $ | 790,944 | |
| | | |
| | 32,237 | | | Vornado Realty Trust(a) | | | | | 2,670,835 | |
| | | |
| | 8,900 | | | Washington Real Estate Investment Trust | | | | | 239,499 | |
| | | |
| | 128,332 | | | Winthrop Realty Trust(a) | | | | | 1,543,834 | |
| | | |
| | | | | | | | | 8,472,120 | |
| | | | | | | | | | |
| | REITs-Health Care: 5.43% | | | | | | |
| | | |
| | 32,900 | | | Health Care REIT, Inc.(a) | | | | | 2,205,288 | |
| | | |
| | 24,066 | | | Senior Housing Properties Trust(a) | | | | | 624,031 | |
| | | |
| | 21,464 | | | Ventas, Inc.(a) | | | | | 1,490,889 | |
| | | |
| | | | | | | | | 4,320,208 | |
| | | | | | | | | | |
| | REITs-Hotels: 8.75% | | | | | | |
| | | |
| | 10,960 | | | Chatham Lodging Trust(a) | | | | | 188,293 | |
| | | |
| | 31,100 | | | Chesapeake Lodging Trust(a) | | | | | 646,569 | |
| | | |
| | 112,256 | | | DiamondRock Hospitality Co.(a) | | | | | 1,046,226 | |
| | | |
| | 41,100 | | | Hersha Hospitality Trust | | | | | 231,804 | |
| | | |
| | 100,215 | | | Host Hotels & Resorts, Inc.(a) | | | | | 1,690,627 | |
| | | |
| | 9,500 | | | LaSalle Hotel Properties | | | | | 234,650 | |
| | | |
| | 17,900 | | | RLJ Lodging Trust | | | | | 402,571 | |
| | | |
| | 207,440 | | | Strategic Hotels & Resorts, Inc.(b) | | | | | 1,837,918 | |
| | | |
| | 73,206 | | | Summit Hotel Properties, Inc. | | | | | 691,797 | |
| | | |
| | | | | | | | | 6,970,455 | |
| | | | | | | | | | |
| | REITs-Mortgage: 3.93% | | | | | | |
| | | |
| | 116,620 | | | Arbor Realty Trust, Inc. | | | | | 732,374 | |
| | | |
| | 26,300 | | | Blackstone Mortgage Trust, Inc., Class A | | | | | 649,610 | |
| | | |
| | 86,232 | | | iStar Financial, Inc.(a)(b) | | | | | 973,559 | |
| | | |
| | 31,300 | | | Starwood Property Trust, Inc. | | | | | 774,675 | |
| | | |
| | | | | | | | | 3,130,218 | |
| | | | | | | | | | |
| | REITs-Office Property: 20.65% | | | | | | |
| | | |
| | 7,958 | | | Alexandria Real Estate Equities, Inc.(a) | | | | | 523,000 | |
| | | |
| | 12,300 | | | BioMed Realty Trust, Inc. | | | | | 248,829 | |
| | | |
| | 20,251 | | | Boston Properties, Inc.(a) | | | | | 2,135,873 | |
| | | |
| | 33,300 | | | Brandywine Realty Trust(a) | | | | | 450,216 | |
| | | |
| | 9,900 | | | Corporate Office Properties Trust | | | | | 252,450 | |
| | | |
| | 58,000 | | | Digital Realty Trust, Inc.(a) | | | | | 3,538,000 | |
| | | | |
| June 30, 2013 | | 24 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward Real Estate Long/Short Fund
| | | | | | | | | | |
| Shares | | | | Value
(Note 2) | |
| | REITs-Office Property (continued): 20.65% | | | | | | |
| | | |
| | 9,900 | | | Douglas Emmett, Inc.(a) | | | | $ | 247,005 | |
| | | |
| | 25,000 | | | Dundee REIT, Class A | | | | | 775,887 | |
| | | |
| | 23,500 | | | DuPont Fabros Technology, Inc. | | | | | 567,525 | |
| | | |
| | 94,300 | | | Franklin Street Properties Corp. | | | | | 1,244,760 | |
| | | |
| | 31,400 | | | Government Properties Income Trust(a) | | | | | 791,908 | |
| | | |
| | 23,500 | | | HCP, Inc.(a) | | | | | 1,067,840 | |
| | | |
| | 11,265 | | | Hudson Pacific Properties, Inc.(a) | | | | | 239,719 | |
| | | |
| | 7,800 | | | Kilroy Realty Corp.(a) | | | | | 413,478 | |
| | | |
| | 48,600 | | | Mack-Cali Realty Corp.(a) | | | | | 1,190,214 | |
| | | |
| | 276,000 | | | MPG Office Trust, Inc.(b) | | | | | 866,640 | |
| | | |
| | 14,118 | | | Parkway Properties, Inc. | | | | | 236,618 | |
| | | |
| | 18,801 | | | SL Green Realty Corp.(a) | | | | | 1,658,060 | |
| | | |
| | | | | | | | | 16,448,022 | |
| | | | | | | | | | |
| | REITs-Regional Malls: 7.84% | | | | | | |
| | | |
| | 75,900 | | | General Growth Properties, Inc.(a) | | | | | 1,508,133 | |
| | | |
| | 31,700 | | | Macerich Co.(a) | | | | | 1,932,749 | |
| | | |
| | 17,747 | | | Simon Property Group, Inc.(a) | | | | | 2,802,606 | |
| | | |
| | | | | | | | | 6,243,488 | |
| | | | | | | | | | |
| | REITs-Shopping Centers: 6.23% | | | | | | |
| | | |
| | 23,300 | | | DDR Corp.(a) | | | | | 387,945 | |
| | | |
| | 33,325 | | | Excel Trust, Inc. | | | | | 426,893 | |
| | | |
| | 13,989 | | | Federal Realty Investment Trust(a) | | | | | 1,450,379 | |
| | | |
| | 58,197 | | | Kimco Realty Corp.(a) | | | | | 1,247,162 | |
| | | |
| | 18,492 | | | Ramco-Gershenson Properties Trust(a) | | | | | 287,181 | |
| | | |
| | 26,261 | | | Retail Opportunity Investments Corp.(a) | | | | | 365,028 | |
| | | |
| | 10,600 | | | Tanger Factory Outlet Centers, Inc.(a) | | | | | 354,676 | |
| | | |
| | 42,700 | | | Westfield Group | | | | | 446,748 | |
| | | |
| | | | | | | | | 4,966,012 | |
| | | | | | | | | | |
| | REITs-Specialized: 2.30% | | | | | | |
| | | |
| | 25,000 | | | American Tower Corp.(a) | | | | | 1,829,250 | |
| | | | | | | | | | |
| | REITs-Storage: 2.62% | | | | | | |
| | | |
| | 13,600 | | | Public Storage(a) | | | | | 2,085,288 | |
| | | | | | | | | | |
| | REITs-Warehouse/Industrial: 4.51% | | | | | | |
| | | |
| | 12,850 | | | First Industrial Realty Trust, Inc.(a) | | | | | 194,935 | |
| | | | | | | | | | |
| Shares | | | | Value
(Note 2) | |
| | | |
| | 50,607 | | | First Potomac Realty Trust(a) | | | | $ | 660,927 | |
| | | |
| | 70,856 | | | ProLogis, Inc.(a) | | | | | 2,672,688 | |
| | | |
| | 3,195 | | | STAG Industrial, Inc. | | | | | 63,740 | |
| | | |
| | | | | | | | | 3,592,290 | |
| | | |
| | | | Total Common Stocks (Cost $62,424,672) | | | | | 81,008,130 | |
|
| | Exchange-Traded Funds: 0.61% | |
| | | |
| | 23,500 | | | iPath S&P 500® VIX Short-Term Futures ETN(b) | | | | | 487,390 | |
| | | |
| | | | Total Exchange-Traded Funds (Cost $761,895) | | | | | 487,390 | |
|
| | Convertible Preferred Stocks: 1.70% | |
| | REITs-Hotels: 1.70% | | | | | | |
| | | |
| | 55,000 | | | FelCor Lodging Trust, Inc. Series A, 1.950%(a) | | | | | 1,353,000 | |
| | | |
| | | | Total Convertible Preferred Stocks (Cost $943,873) | | | | | 1,353,000 | |
|
| | Preferred Stocks: 8.37% | |
| | Financials-Mortgage: 0.98% | | | | | | |
| | | |
| | 30,000 | | | KKR Financial Holdings Llc, Series A 7.375%(a) | | | | | 777,000 | |
| | | | | | | | | | |
| | REITs-Diversified: 0.59% | | | | | | |
| | | |
| | 18,571 | | | CapLease, Inc. Series A, 8.125%(a) | | | | | 466,504 | |
| | | | | | | | | | |
| | REITs-Health Care: 1.02% | | | | | | |
| | | |
| | 32,400 | | | Sabra Health Care REIT, Inc. Series A, 7.125% | | | | | 816,156 | |
| | | | | | | | | | |
| | REITs-Hotels: 1.46% | | | | | | |
| | | |
| | 25,700 | | | Ashford Hospitality Trust, Inc. Series D, 8.450%(a) | | | | | 649,696 | |
| | | |
| | 21,000 | | | Summit Hotel Properties, Inc.
7.125%(a) | | | | | 509,250 | |
| | | |
| | | | | | | | | 1,158,946 | |
| | | | | | | | | | |
| | REITs-Mortgage: 1.86% | | | | | | |
| | | |
| | 31,466 | | | iStar Financial, Inc. Series G, 7.650%(a) | | | | | 738,507 | |
| | | |
| | 30,000 | | | NorthStar Realty Finance Corp. Series D, 8.500%(a) | | | | | 744,000 | |
| | | |
| | | | | | | | | 1,482,507 | |
| | | | | | | | | | |
| | REITs-Regional Malls: 0.20% | | | | | | |
| | | |
| | 6,241 | | | Glimcher Realty Trust Series G, 8.125%(a) | | | | | 156,399 | |
| | | | | | | | | | |
| | REITs-Shopping Centers: 2.26% | | | | | | |
| | | |
| | 35,000 | | | Kite Realty Group Trust Series A, 8.250%(a) | | | | | 901,250 | |
| | | | |
| See Notes to Financial Statements | | 25 | | June 30, 2013 |
Portfolio of Investments (Note 10) (Unaudited)
Forward Real Estate Long/Short Fund
| | | | | | | | | | |
| Shares | | | | Value
(Note 2) | |
| | REITs-Shopping Centers (continued): 2.26% | | | | | | |
| | | |
| | 5,000 | | | Saul Centers, Inc. Series C, 6.875%(a) | | | | $ | 127,500 | |
| | | |
| | 30,000 | | | Urstadt Biddle Properties, Inc. Series F, 7.125% | | | | | 776,700 | |
| | | |
| | | | | | | | | 1,805,450 | |
| | | |
| | | | Total Preferred Stocks (Cost $4,905,118) | | | | | 6,662,962 | |
|
| | Rights: 0.00% | |
| | | |
| | 6,800 | | | Great Eagle Holdings, Ltd.(a) | | | | | 0 | |
| | | |
| | | | Total Rights (Cost $0) | | | | | 0 | |
| | | |
| Contracts | | | | | | | | |
|
| | Options Purchased: 0.01% | |
| | | |
| | 539 | | | CommonWealth REIT, Expires July 2013 at $20.00 Put | | | | | 5,390 | |
| | | |
| | 200 | | | iStar Financial, Inc., Expires July 2013 at $9.00 Put | | | | | 1,000 | |
| | | |
| | | | Total Options Purchased (Cost $93,682) | | | | | 6,390 | |
| | | |
Principal
Amount | | | | | | | | |
|
| | Corporate Bonds: 0.51% | |
| | REITs-Mortgage: 0.51% | | | | | | |
| | | |
| | $390,000 | | | iStar Financial, Inc., Sr. Unsec. Notes 7.125%, 02/15/18 | | | | | 406,575 | |
| | | |
| | | | Total Corporate Bonds (Cost $390,402) | | | | | 406,575 | |
| | | |
| | | | Total Investments: 112.92% (Cost $69,519,642) | | | | | 89,924,447 | |
| | | |
| | | | Net Other Assets and Liabilities: (12.92)% | | | | | (10,293,721 | ) |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 79,630,726 | |
Percentages are stated as a percent of net assets.
(a) Security, or portion of security, is being held as collateral for short sales, options written or the line of credit. At period end, the aggregate market value of those securities was $49,569,339, representing 62.25% of net assets.
(b) Non-income producing security.
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | |
| | Schedule of Securities Sold Short | | | | | | |
| | Common Stocks | | | | | | |
| | | |
| | (5,000) | | | American Realty Capital Properties, Inc. | | | | $ | (76,300 | ) |
| | | |
| | (35,000) | | | CBL & Associates Properties, Inc. | | | | | (749,700 | ) |
| | | |
| | (10,000) | | | CubeSmart | | | | | (159,800 | ) |
| | | |
| | (40,000) | | | Duke Realty Corp. | | | | | (623,600 | ) |
| | | |
| | (10,173) | | | Glimcher Realty Trust | | | | | (111,089 | ) |
| | | |
| | (10,000) | | | Hovnanian Enterprises, Inc., Class A | | | | | (56,100 | ) |
| | | |
| | (10,000) | | | Lennar Corp., Class A | | | | | (360,400 | ) |
| | | |
| | (10,000) | | | Marriott International, Inc., Class A | | | | | (403,700 | ) |
| | | |
| | (20,000) | | | Pennsylvania REIT | | | | | (377,600 | ) |
| | | |
| | (10,000) | | | Rayonier, Inc. | | | | | (553,900 | ) |
| | | |
| | (10,000) | | | Regency Centers Corp. | | | | | (508,100 | ) |
| | | |
| | (15,000) | | | SeaWorld Entertainment, Inc. | | | | | (526,500 | ) |
| | | |
| | (6,000) | | | Sherwin-Williams Co. | | | | | (1,059,600 | ) |
| | | |
| | (50,000) | | | Standard Pacific Corp. | | | | | (416,500 | ) |
| | | |
| | (10,000) | | | Taubman Centers, Inc. | | | | | (751,500 | ) |
| | | |
| | (30,000) | | | Wyndham Worldwide Corp. | | | | | (1,716,900 | ) |
| | | | | | | | | | |
| | Exchange-Traded Funds | | | | | | |
| | | |
| | (39,400) | | | iShares® Dow Jones U.S. Real Estate Index Fund | | | | | (2,615,766 | ) |
| | | |
| | (10,000) | | | SPDR® S&P® Homebuilders ETF | | | | | (294,200 | ) |
| | | |
| | | | Total Securities Sold Short
(Proceeds $9,253,851) | | | | $ | (11,361,255 | ) |
| | | | |
| June 30, 2013 | | 26 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward Real Estate Long/Short Fund
| | | | | | | | | | |
| Contracts | | | | | | | Value
(Note 2) | |
|
| | Schedule of Options Written | |
| | | |
| | (800) | | | iStar Financial, Inc., Expires January 2014 at $12.00 Call | | | | $ | (88,000 | ) |
| | | |
| | (36) | | | Public Storage, Expires September 2013 at $165.00 Call | | | | | (6,300 | ) |
| | | |
| | | | Total Options Written
(Proceeds $62,711) | | | | $ | (94,300 | ) |
Investment Abbreviations:
ETF — Exchange Traded Fund
ETN — Exchange Traded Note
REIT — Real Estate Investment Trust
S&P — Standard & Poor’s
SPDR — Standard & Poors Depositary Receipts
Sr. — Senior
Unsec. — Unsecured
| | | | |
| See Notes to Financial Statements | | 27 | | June 30, 2013 |
Portfolio of Investments (Note 10) (Unaudited)
Forward Select Income Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
|
| | Common Stocks: 32.33% | |
| | Medical-Nursing Homes: 1.32% | |
| | | |
| | 850,000 | | | Brookdale Senior Living, Inc.(a)(b) | | | | $ | 22,474,000 | |
| | | | | | | | | | |
| | Real Estate Operating/Development: 0.24% | |
| | | |
| | 200,000 | | | Brookfield Property Partners LP(b) | | | | | 4,060,000 | |
| | | | | | | | | | |
| | REITs-Apartments: 2.89% | |
| | | |
| | 1,200,000 | | | Associated Estates Realty Corp. | | | | | 19,296,000 | |
| | | |
| | 1,850,000 | | | Campus Crest Communities, Inc. | | | | | 21,349,000 | |
| | | |
| | 970,000 | | | Trade Street Residential, Inc. | | | | | 8,536,000 | |
| | | |
| | | | | | | | | 49,181,000 | |
| | | | | | | | | | |
| | REITs-Diversified: 5.62% | |
| | | |
| | 1,070,000 | | | Armada Hoffler Properties, Inc. | | | | | 12,604,600 | |
| | | |
| | 364,500 | | | First Potomac Realty Trust | | | | | 4,760,370 | |
| | | |
| | 2,710,000 | | | Lexington Realty Trust | | | | | 31,652,800 | |
| | | |
| | 242,050 | | | Liberty Property Trust | | | | | 8,946,168 | |
| | | |
| | 1,000,000 | | | Spirit Realty Capital, Inc. | | | | | 17,720,000 | |
| | | |
| | 645,200 | | | Whitestone REIT, Class B | | | | | 10,168,352 | |
| | | |
| | 790,000 | | | Winthrop Realty Trust(a) | | | | | 9,503,700 | |
| | | |
| | | | | | | | | 95,355,990 | |
| | | | | | | | | | |
| | REITs-Health Care: 2.88% | |
| | | |
| | 1,050,000 | | | Healthcare Realty Trust, Inc. | | | | | 26,775,000 | |
| | | |
| | 850,000 | | | Sabra Health Care REIT, Inc.(a) | | | | | 22,193,500 | |
| | | |
| | | | | | | | | 48,968,500 | |
| | | | | | | | | | |
| | REITs-Hotels: 5.45% | |
| | | |
| | 1,380,000 | | | Chatham Lodging Trust(a) | | | | | 23,708,400 | |
| | | |
| | 1,675,000 | | | Hospitality Properties Trust(a) | | | | | 44,019,000 | |
| | | |
| | 2,800,000 | | | Strategic Hotels & Resorts, Inc.(b) | | | | | 24,808,000 | |
| | | |
| | | | | | | | | 92,535,400 | |
| | | | | | | | | | |
| | REITs-Manufactured Homes: 1.17% | |
| | | |
| | 400,000 | | | Sun Communities, Inc. | | | | | 19,904,000 | |
| | | | | | | | | | |
| | REITs-Mortgage: 0.38% | |
| | | |
| | 500,700 | | | Ares Commercial Real Estate Corp. | | | | | 6,413,967 | |
| | | | | | | | | | |
| | REITs-Office Property: 3.93% | |
| | | |
| | 750,000 | | | BioMed Realty Trust, Inc. | | | | | 15,172,500 | |
| | | |
| | 1,454,600 | | | Franklin Street Properties Corp. | | | | | 19,200,720 | |
| | | |
| | 1,050,000 | | | Mack-Cali Realty Corp. | | | | | 25,714,500 | |
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | | |
| | 400,000 | | | Parkway Properties, Inc. | | | | $ | 6,704,000 | |
| | | |
| | | | | | | | | 66,791,720 | |
| | | | | | | | | | |
| | REITs-Residential: 0.56% | |
| | | |
| | 350,000 | | | American Homes 4Rent, Class A(b)(c) | | | | | 5,250,000 | |
| | | |
| | 250,000 | | | American Residential Properties, Inc.(b)(c)(d) | | | | | 4,300,000 | |
| | | |
| | | | | | | | | 9,550,000 | |
| | | | | | | | | | |
| | REITs-Shopping Centers: 3.86% | |
| | | |
| | 825,000 | | | AmREIT, Inc., Class B | | | | | 15,955,500 | |
| | | |
| | 1,230,000 | | | Excel Trust, Inc.(a) | | | | | 15,756,300 | |
| | | |
| | 875,000 | | | Retail Opportunity Investments Corp. | | | | | 12,162,500 | |
| | | |
| | 1,380,000 | | | Retail Properties of America, Inc., Class A | | | | | 19,706,400 | |
| | | |
| | 100,000 | | | Urstadt Biddle Properties, Inc., Class A | | | | | 2,017,000 | |
| | | |
| | | | | | | | | 65,597,700 | |
| | | | | | | | | | |
| | REITs-Warehouse/Industrial: 4.03% | |
| | | |
| | 2,195,000 | | | STAG Industrial, Inc.(a) | | | | | 43,790,250 | |
| | | |
| | 2,620,000 | | | Summit Hotel Properties, Inc.(a) | | | | | 24,759,000 | |
| | | |
| | | | | | | | | 68,549,250 | |
| | | |
| | | | Total Common Stocks
(Cost $494,474,516) | | | | | 549,381,527 | |
| | | | | | | | | | |
|
| | Convertible Preferred Stocks: 6.82% | |
| | REITs-Diversified: 0.87% | |
| | | |
| | 303,428 | | | Lexington Realty Trust
Series C, 6.500%(a) | | | | | 14,702,604 | |
| | | | | | | | | | |
| | REITs-Hotels: 1.70% | |
| | | |
| | 1,177,888 | | | FelCor Lodging Trust, Inc.
Series A, 1.950%(a) | | | | | 28,976,045 | |
| | | | | | | | | | |
| | REITs-Office Property: 1.24% | |
| | | |
| | 910,982 | | | CommonWealth REIT
Series D, 6.500%(a) | | | | | 20,998,135 | |
| | | | | | | | | | |
| | REITs-Shopping Centers: 1.46% | |
| | | |
| | 400,000 | | | Excel Trust, Inc.
Series A, 7.000%(a)(c) | | | | | 10,306,240 | |
| | | |
| | 245,700 | | | Ramco-Gershenson Properties Trust
Series D, 7.250%(a) | | | | | 14,452,074 | |
| | | |
| | | | | | | | | 24,758,314 | |
| | | | | | | | | | |
| | | | |
| June 30, 2013 | | 28 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward Select Income Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | REITs-Specialized: 1.55% | |
| | | |
| | 248,700 | | | EPR Properties
Series C, 5.750%(a) | | | | $ | 5,707,665 | |
| | | |
| | 644,101 | | | Series E, 9.000%(a) | | | | | 20,694,965 | |
| | | |
| | | | | | | | | 26,402,630 | |
| | | |
| | | | Total Convertible Preferred Stocks
(Cost $95,271,097) | | | | | 115,837,728 | |
| | | | | | | | | | |
| |
| | Preferred Stocks: 60.92% | | | | |
| | Oil, Gas & Consumable Fuels: 0.34% | | | | |
| | | |
| | 220,000 | | | TravelCenters of America Llc
8.250% | | | | | 5,764,000 | |
| | | | | | | | | | |
| | Other: 0.30% | | | | |
| | | |
| | 200,000 | | | Vanguard Natural Resources Llc
Series A, 7.875% | | | | | 5,038,000 | |
| | | | | | | | | | |
| | Real Estate Management/Services: 0.43% | | | | |
| | | |
| | 286,750 | | | Kennedy-Wilson, Inc.
7.750% | | | | | 7,346,535 | |
| | | | | | | | | | |
| | Real Estate Operating/Development: 1.99% | | | | |
| | | |
| | 1,320,323 | | | Forest City Enterprises, Inc.
7.375%(a) | | | | | 33,826,675 | |
| | | | | | | | | | |
| | REITs-Apartments: 3.20% | | | | |
| | |
| | 120,000 | | | Apartment Investment & Management Co.
Series Z, 7.000% | | | 3,108,000 | |
| | | |
| | 192,500 | | | Campus Crest Communities, Inc.
Series A, 8.000% | | | | | 5,074,300 | |
| | | |
| | 361,200 | | | Equity Residential
Series K, 8.290%(a) | | | | | 22,179,956 | |
| | | |
| | 277,795 | | | Essex Property Trust, Inc.
Series H, 7.125%(a) | | | | | 7,333,788 | |
| | | |
| | 630,000 | | | UMH Properties, Inc.
Series A, 8.250%(a) | | | | | 16,650,900 | |
| | | |
| | | | | | | | | 54,346,944 | |
| | | | | | | | | | |
| | REITs-Diversified: 5.63% | | | | |
| | | |
| | 371,097 | | | CapLease, Inc.
Series A, 8.125%(a) | | | | | 9,321,957 | |
| | | |
| | 608,900 | | | Series B, 8.375% | | | | | 15,374,725 | |
| | | |
| | 168,000 | | | Series C, 7.250% | | | | | 4,263,840 | |
| | | |
| | 332,989 | | | Cousins Properties, Inc.
Series B, 7.500%(a) | | | | | 8,431,281 | |
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | | |
| | 350,000 | | | Duke Realty Corp.
Series L, 6.600%(a) | | | | $ | 8,715,000 | |
| | | |
| | 412,000 | | | Investors Real Estate Trust
7.950% | | | | | 10,815,000 | |
| | | |
| | 520,000 | | | Winthrop Realty Trust
7.750% | | | | | 13,644,800 | |
| | | |
| | 950,000 | | | Series D, 9.250% | | | | | 25,127,500 | |
| | | |
| | | | | | | | | 95,694,103 | |
| | | | | | | | | | |
| | REITs-Health Care: 1.87% | | | | |
| | | |
| | 1,260,000 | | | Sabra Health Care REIT, Inc.
Series A, 7.125% | | | | | 31,739,400 | |
| | | | | | | | | | |
| | REITs-Hotels: 11.74% | | | | |
| | | |
| | 210,600 | | | Ashford Hospitality Trust, Inc.
Series A, 8.550%(a) | | | | | 5,338,710 | |
| | | |
| | 1,502,300 | | | Series D, 8.450%(a) | | | | | 37,978,144 | |
| | | |
| | 683,000 | | | Series E, 9.000%(a) | | | | | 17,990,220 | |
| | | |
| | 400,000 | | | Chesapeake Lodging Trust
7.750% | | | | | 10,260,000 | |
| | | |
| | 1,399,574 | | | FelCor Lodging Trust, Inc.
Series C, 8.000%(a) | | | | | 34,849,393 | |
| | | |
| | 722,589 | | | Hersha Hospitality Trust
Series B, 8.000%(a) | | | | | 18,538,021 | |
| | | |
| | 275,000 | | | Series C, 6.875% | | | | | 6,674,250 | |
| | | |
| | 344,070 | | | Hospitality Properties Trust
Series C, 7.000%(a) | | | | | 8,674,005 | |
| | | |
| | 242,652 | | | LaSalle Hotel Properties
Series G, 7.250%(a) | | | | | 6,027,476 | |
| | | |
| | 120,000 | | | Series H, 7.500% | | | | | 3,120,000 | |
| | | |
| | 471,979 | | | Pebblebrook Hotel Trust
Series A, 7.875%(a) | | | | | 12,195,937 | |
| | | |
| | 145,000 | | | Series B, 8.000%(a) | | | | | 3,774,350 | |
| | | |
| | 362,500 | | | Summit Hotel Properties, Inc.
7.125% | | | | | 8,790,625 | |
| | | |
| | 237,888 | | | Series B, 7.875% | | | | | 6,161,299 | |
| | | |
| | 727,592 | | | Sunstone Hotel Investors, Inc.
Series D, 8.000%(a) | | | | | 19,099,290 | |
| | | |
| | | | | | | | | 199,471,720 | |
| | | | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 29 | | June 30, 2013 |
Portfolio of Investments (Note 10) (Unaudited)
Forward Select Income Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | REITs-Industrial: 0.90% | | | | |
| | | |
| | 600,000 | | | Coresite Realty Corp.
Series A, 7.250% | | | | $ | 15,270,000 | |
| | | | | | | | | | |
| | REITs-Manufactured Homes: 1.00% | | | | |
| | | |
| | 657,290 | | | Equity Lifestyle Properties, Inc.
Series C, 6.750%(a) | | | | | 16,951,509 | |
| | | | | | | | | | |
| | REITs-Mortgage: 6.54% | | | | |
| | | |
| | 1,075,000 | | | Colony Financial, Inc.
Series A, 8.500% | | | | | 27,939,250 | |
| | | |
| | 484,011 | | | iStar Financial, Inc.
Series D, 8.000%(a) | | | | | 11,703,386 | |
| | | |
| | 961,299 | | | Series E, 7.875%(a) | | | | | 22,975,046 | |
| | | |
| | 642,811 | | | Series F, 7.800%(a) | | | | | 15,472,461 | |
| | | |
| | 848,247 | | | Series G, 7.650%(a) | | | | | 19,908,357 | |
| | | |
| | 566,552 | | | Series I, 7.500%(a) | | | | | 13,161,003 | |
| | | |
| | | | | | | | | 111,159,503 | |
| | | | | | | | | | |
| | REITs-Office Property: 6.68% | | | | |
| | | |
| | 102,798 | | | Alexandria Real Estate Equities, Inc.
Series D, 7.000%(a) | | | | | 2,661,440 | |
| | | |
| | 10,425 | | | Corporate Office Properties Trust
Series H, 7.500% | | | | | 264,691 | |
| | | |
| | 200,000 | | | Series L, 7.375% | | | | | 5,130,000 | |
| | | |
| | 118,000 | | | Digital Realty Trust, Inc.
Series E, 7.000% | | | | | 3,020,800 | |
| | | |
| | 1,257,000 | | | DuPont Fabros Technology, Inc.
Series A, 7.875%(a) | | | | | 32,242,049 | |
| | | |
| | 567,850 | | | Series B, 7.625%(a) | | | | | 14,451,783 | |
| | | |
| | 2,624 | | | Highwoods Properties, Inc.
Series A, 8.625% | | | | | 3,082,216 | |
| | | |
| | 935,686 | | | Hudson Pacific Properties, Inc.
Series B, 8.375%(a) | | | | | 24,748,895 | |
| | | |
| | 406,280 | | | Prologis, Inc.
Series Q, 8.540%(a) | | | | | 25,494,070 | |
| | | |
| | 100,000 | | | SL Green Realty Corp.
Series I, 6.500% | | | | | 2,466,000 | |
| | | |
| | | | | | | | | 113,561,944 | |
| | | | | | | | | | |
| | REITs-Regional Malls: 5.66% | | | | |
| | | |
| | 2,289,109 | | | CBL & Associates Properties, Inc.
Series D, 7.375%(a) | | | | | 57,914,458 | |
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | | |
| | 450,000 | | | Glimcher Realty Trust
6.875% | | | | $ | 11,088,000 | |
| | | |
| | 845,473 | | | Series G, 8.125%(a) | | | | | 21,187,553 | |
| | | |
| | 138,361 | | | Series H, 7.500% | | | | | 3,482,546 | |
| | | |
| | 100,000 | | | Taubman Centers, Inc.
Series K, 6.250% | | | | | 2,428,000 | |
| | | |
| | | | | | | | | 96,100,557 | |
| | | | | | | | | | |
| | REITs-Residential: 0.44% | | | | |
| | | |
| | 300,000 | | | Sun Communities, Inc.
Series A, 7.125% | | | | | 7,542,000 | |
| | | | | | | | | | |
| | REITs-Shopping Centers: 8.87% | | | | |
| | | |
| | 350,000 | | | Cedar Realty Trust, Inc.
Series B, 7.250% | | | | | 8,995,000 | |
| | | |
| | 420,710 | | | DDR Corp.
Series H, 7.375%(a) | | | | | 10,559,821 | |
| | | |
| | 755,500 | | | Excel Trust, Inc.
Series B, 8.125% | | | | | 19,280,360 | |
| | | |
| | 520,000 | | | Inland Real Estate Corp.
Series A, 8.125%(a) | | | | | 13,442,000 | |
| | | |
| | 565,000 | | | Kite Realty Group Trust
Series A, 8.250%(a) | | | | | 14,548,750 | |
| | | |
| | 200,000 | | | Pennsylvania REIT
Series A, 8.250% | | | | | 5,288,000 | |
| | | |
| | 28,000 | | | Series B, 7.375% | | | | | 717,080 | |
| | | |
| | 250,000 | | | Retail Properties of America, Inc.
7.000% | | | | | 6,232,500 | |
| | | |
| | 264,251 | | | Saul Centers, Inc.
Series A, 8.000%(a) | | | | | 6,849,386 | |
| | | |
| | 410,000 | | | Series C, 6.875% | | | | | 10,455,000 | |
| | | |
| | 481,400 | | | Urstadt Biddle Properties, Inc.
Series D, 7.500%(a) | | | | | 12,343,096 | |
| | | |
| | 810,000 | | | Series F, 7.125%(a) | | | | | 20,970,900 | |
| | | |
| | 250,000 | | | Weingarten Realty Investors
Senior Notes, 8.100%(a) | | | | | 5,495,000 | |
| | | |
| | 619,784 | | | Series F, 6.500%(a) | | | | | 15,562,776 | |
| | | |
| | | | | | | | | 150,739,669 | |
| | | | | | | | | | |
| | | | |
| June 30, 2013 | | 30 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward Select Income Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | REITs-Specialized: 0.29% | | | | |
| | | |
| | 200,000 | | | EPR Properties
Series F, 6.625% | | | | $ | 4,920,000 | |
| | | | | | | | | | |
| | REITs-Warehouse/Industrial: 5.04% | | | | |
| | | |
| | 13,600 | | | First Industrial Realty Trust, Inc.
Series F, 6.236% | | | | | 11,670,500 | |
| | | |
| | 142,740 | | | Series K, 7.250% | | | | | 3,574,210 | |
| | | |
| | 993,750 | | | First Potomac Realty Trust
Series A, 7.750%(a) | | | | | 26,215,124 | |
| | |
| | 473,028 | | | Monmouth Real Estate Investment Corp.
7.875% | | | 12,208,852 | |
| | | |
| | 432,050 | | | Series A, 7.625%(a) | | | | | 11,038,878 | |
| | | |
| | 275,000 | | | STAG Industrial, Inc.
Series A, 9.000% | | | | | 7,287,500 | |
| | | |
| | 200,000 | | | Series B, 6.625% | | | | | 4,768,000 | |
| | | |
| | 279,171 | | | Summit Hotel Properties, Inc.
Series A, 9.250% | | | | | 7,398,032 | |
| | | |
| | 60,000 | | | Terreno Realty Corp.
Series A, 7.750% | | | | | 1,535,100 | |
| | | |
| | | | | | | | | 85,696,196 | |
| | | |
| | | | Total Preferred Stocks (Cost $897,845,945) | | | | | 1,035,168,755 | |
| | | | | | | | | | |
| | | |
| Contracts | | | | | | | | |
| |
| | Options Purchased: 0.01% | | | | |
| | | |
| | 1,618 | | | JC Penney Co., Inc.,
Expires January 2015 at $10.00 Put | | | | | 228,138 | |
| | | |
| | | | Total Options Purchased
(Cost $246,280) | | | | | 228,138 | |
| | | | | | | | | | |
| | | |
Principal Amount | | | | | | | | |
| |
| | Corporate Bonds: 7.43% | | | | |
| | Department Stores: 1.76% | | | | |
| | | |
| | $3,000,000 | | | JC Penney Corp., Inc., Sr. Unsec. Notes
6.375%, 10/15/36 | | | | | 2,355,000 | |
| | | |
| | 13,750,000 | | | 7.400%, 04/01/37 | | | | | 11,240,625 | |
| | | |
| | 21,810,000 | | | 7.625%, 03/01/97 | | | | | 16,248,450 | |
| | | |
| | | | | | | | | 29,844,075 | |
| | | | | | | | | | |
| | | | | | | | | | |
Principal Amount | | | | | | | Value
(Note 2) | |
| | Real Estate Management/Services: 0.52% | | | | |
| | | |
| | $9,000,000 | | | BR Malls International Finance, Ltd., Gtd. Notes
8.500%, Perpetual Maturity (a)(c)(e) | | | | $ | 8,847,360 | |
| | | | | | | | | | |
| | Real Estate Operating/Development: 0.41% | | | | |
| | | |
| | 7,143,000 | | | Forest City Enterprises, Inc., Sr. Unsec. Notes
6.500%, 02/01/17 (a) | | | | | 7,035,855 | |
| | | | | | | | | | |
| | REITs-Mortgage: 1.78% | | | | |
| | | |
| | 10,500,000 | | | iStar Financial, Inc., Sr. Unsec. Notes
9.000%, 06/01/17 | | | | | 11,760,000 | |
| | | |
| | 17,810,000 | | | 7.125%, 02/15/18 | | | | | 18,566,925 | |
| | | |
| | | | | | | | | 30,326,925 | |
| | | | | | | | | | |
| | REITs-Specialized: 0.59% | | | | |
| | | |
| | 10,000,000 | | | CNL Lifestyle Properties, Inc., Sr. Unsec. Notes
7.250%, 04/15/19 | | | | | 10,025,000 | |
| | | | | | | | | | |
| | Retail-Toy Store: 2.37% | | | | |
| | | |
| | 10,910,000 | | | Toys R Us — Delaware, Inc., First Lien Notes
7.375%, 09/01/16(c) | | | | | 10,937,275 | |
| | |
| | 26,355,000 | | | Toys R Us Property Co., I Llc, Gtd. Notes
10.750%, 07/15/17(a) | | | 27,936,300 | |
| | | |
| | 1,285,000 | | | Toys R Us Property Co., II Llc, First Lien Notes
8.500%, 12/01/17 | | | | | 1,341,219 | |
| | | |
| | | | | | | | | 40,214,794 | |
| | | |
| | | | Total Corporate Bonds
(Cost $123,299,719) | | | | | 126,294,009 | |
| | | |
| | | | Total Investments: 107.51%
(Cost $1,611,137,557) | | | | | 1,826,910,157 | |
| | |
| | | | Net Other Assets and Liabilities: (7.51)% | | | (127,563,421 | ) |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 1,699,346,736 | |
| | | | |
| See Notes to Financial Statements | | 31 | | June 30, 2013 |
Portfolio of Investments (Note 10) (Unaudited)
Forward Select Income Fund
Percentages are stated as a percent of net assets.
(a) Security, or portion of security, is being held as collateral for purchased option contracts or the line of credit. At period end, the aggregate market value of those securities was $632,408,120, representing 37.21% of net assets.
(b) Non-income producing security.
(c) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in the ordinary course of business in transactions exempt from registration, normally to qualified institutional buyers. At period end, the aggregate market value of those securities was $39,640,875, representing 2.33% of net assets.
(d) Fair valued security under the procedures approved by the Fund’s Board of Trustees.
(e) This security has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest.
Investment Abbreviations:
Gtd. — Guaranteed
REIT — Real Estate Investment Trust
Sr. — Senior
Unsec. — Unsecured
| | | | |
| June 30, 2013 | | 32 | | See Notes to Financial Statements |
Statement of Assets and Liabilities (Unaudited)
| | | | | | | | | | | | |
| | | Forward
Global
Infrastructure
Fund | | | Forward
International
Real Estate
Fund | | | Forward
Real Estate
Fund | |
Assets: | | | | | | | | | | | | |
Investments, at value | | $ | 176,425,208 | | | $ | 145,588,351 | | | $ | 50,347,524 | |
Cash | | | 4,048,541 | | | | 6,228,504 | | | | 3,773,647 | |
Foreign currency, at value (Cost $4,105,530, $78,826 and $0, respectively) | | | 4,080,276 | | | | 78,824 | | | | 0 | |
Deposit with broker for written options | | | 150,000 | | | | 0 | | | | 0 | |
Receivable for investments sold | | | 2,508,082 | | | | 152,800 | | | | 0 | |
Receivable for shares sold | | | 281,886 | | | | 83,272 | | | | 732,706 | |
Interest and dividends receivable | | | 818,645 | | | | 491,625 | | | | 173,322 | |
Other assets | | | 58,916 | | | | 61,742 | | | | 33,074 | |
| | | | | | | | | | | | |
Total Assets | | | 188,371,554 | | | | 152,685,118 | | | | 55,060,273 | |
| | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | |
Payable for investments purchased | | | 2,689,087 | | | | 0 | | | | 0 | |
Payable for shares redeemed | | | 438,833 | | | | 122,675 | | | | 9,809 | |
Payable to advisor | | | 149,705 | | | | 99,696 | | | | 37,508 | |
Payable for distribution and service fees | | | 39,840 | | | | 37,065 | | | | 17,014 | |
Payable to trustees | | | 133 | | | | 970 | | | | 15 | |
Payable for chief compliance officer fee | | | 594 | | | | 865 | | | | 164 | |
Payable to ReFlow (Note 2) | | | 12,856 | | | | 13,106 | | | | 0 | |
Payable for legal and audit fees | | | 14,679 | | | | 7,895 | | | | 13,482 | |
Accrued expenses and other liabilities | | | 77,838 | | | | 70,737 | | | | 10,639 | |
| | | | | | | | | | | | |
Total Liabilities | | | 3,423,565 | | | | 353,009 | | | | 88,631 | |
| | | | | | | | | | | | |
Net Assets | | $ | 184,947,989 | | | $ | 152,332,109 | | | $ | 54,971,642 | |
| | | | | | | | | | | | |
Net Assets Consist of: | | | | | | | | | | | | |
Paid-in capital (Note 7) | | $ | 248,821,055 | | | $ | 288,256,146 | | | $ | 43,759,759 | |
Accumulated net investment income/(loss) | | | 314,422 | | | | (3,889,006 | ) | | | 341,534 | |
Accumulated net realized loss on investments, written option contracts and foreign currency transactions | | | (67,559,157 | ) | | | (125,089,530 | ) | | | (146,236 | ) |
Net unrealized appreciation/(depreciation) on investments, written option contracts and translation of assets and liabilities in foreign currencies | | | 3,371,669 | | | | (6,945,501 | ) | | | 11,016,585 | |
| | | | | | | | | | | | |
Total Net Assets | | $ | 184,947,989 | | | $ | 152,332,109 | | | $ | 54,971,642 | |
| | | | | | | | | | | | |
Investments, at Cost | | $ | 173,017,125 | | | $ | 152,529,955 | | | $ | 39,330,939 | |
| | | | |
| See Notes to Financial Statements | | 33 | | June 30, 2013 |
Statement of Assets and Liabilities (Unaudited)
| | | | | | | | | | | | |
| | | Forward
Global
Infrastructure
Fund
(continued) | | | Forward
International
Real Estate
Fund
(continued) | | | Forward
Real Estate
Fund
(continued) | |
Pricing of Shares | | | | | | | | | | | | |
Investor Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $20.76 | | | | $16.31 | | | | $15.93 | |
Net Assets | | $ | 60,280,741 | | | $ | 7,629,522 | | | $ | 37,463,010 | |
Shares of beneficial interest outstanding | | | 2,904,271 | | | | 467,707 | | | | 2,351,871 | |
Institutional Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $20.85 | | | | $16.26 | | | | $14.20 | |
Net Assets | | $ | 93,438,477 | | | $ | 82,424,351 | | | $ | 7,599,419 | |
Shares of beneficial interest outstanding | | | 4,481,609 | | | | 5,069,783 | | | | 535,339 | |
Class A: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $20.86 | | | | $16.32 | | | | $15.80 | |
Net Assets | | $ | 22,088,796 | | | $ | 41,921,150 | | | $ | 7,509,099 | |
Shares of beneficial interest outstanding | | | 1,058,766 | | | | 2,568,164 | | | | 475,224 | |
Maximum offering price per share (NAV/0.9425, based on maximum sales charge of 5.75% of the offering price) | | | $22.13 | | | | $17.32 | | | | $16.76 | |
Class B: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $20.86 | | | | — | | | | — | |
Net Assets | | $ | 1,316,336 | | | | — | | | | — | |
Shares of beneficial interest outstanding | | | 63,114 | | | | — | | | | — | |
Class C: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $20.89 | | | | $16.35 | | | | $15.93 | |
Net Assets | | $ | 7,341,739 | | | $ | 16,256,678 | | | $ | 2,400,114 | |
Shares of beneficial interest outstanding | | | 351,402 | | | | 994,356 | | | | 150,658 | |
Advisor Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $20.84 | | | | $16.25 | | | | — | |
Net Assets | | $ | 481,900 | | | $ | 4,100,408 | | | | — | |
Shares of beneficial interest outstanding | | | 23,128 | | | | 252,335 | | | | — | |
| | | | |
| June 30, 2013 | | 34 | | See Notes to Financial Statements |
Statement of Assets and Liabilities (Unaudited)
| | | | | | | | |
| | | Forward
Real Estate
Long/Short
Fund | | | Forward
Select Income
Fund | |
Assets: | | | | | | | | |
Investments, at value | | $ | 89,924,447 | | | $ | 1,826,910,157 | |
Cash | | | 59,182 | | | | 51,275,492 | |
Foreign currency, at value (Cost $53,659 and $0, respectively) | | | 51,850 | | | | 0 | |
Deposit with broker for securities sold short | | | 13,609,556 | | | | 8,456,961 | |
Receivable for investments sold | | | 1,066,796 | | | | 12,943,222 | |
Receivable for shares sold | | | 12,258 | | | | 1,533,542 | |
Interest and dividends receivable | | | 344,821 | | | | 18,055,712 | |
Other assets | | | 32,611 | | | | 160,840 | |
| | | | | | | | |
Total Assets | | | 105,101,521 | | | | 1,919,335,926 | |
| | | | | | | | |
Liabilities: | | | | | | | | |
Securities sold short (Proceeds $9,253,851 and $0, respectively) | | | 11,361,255 | | | | 0 | |
Options written, at value (Premiums received $62,711 and $0, respectively) | | | 94,300 | | | | 0 | |
Payable on loan (Note 2) | | | 13,799,095 | | | | 210,499,442 | |
Payable for interest due on loan (Note 2) | | | 7,469 | | | | 106,669 | |
Payable for dividend expense on short sales | | | 34,302 | | | | 0 | |
Payable for investments purchased | | | 0 | | | | 5,080,052 | |
Payable for shares redeemed | | | 30,576 | | | | 1,866,884 | |
Payable to advisor | | | 66,111 | | | | 1,480,923 | |
Payable for distribution and service fees | | | 33,216 | | | | 596,887 | |
Payable to trustees | | | 243 | | | | 6,655 | |
Payable for chief compliance officer fee | | | 323 | | | | 8,073 | |
Payable to ReFlow (Note 2) | | | 3,441 | | | | 5,350 | |
Payable for legal and audit fees | | | 16,537 | | | | 40,009 | |
Accrued expenses and other liabilities | | | 23,927 | | | | 298,246 | |
| | | | | | | | |
Total Liabilities | | | 25,470,795 | | | | 219,989,190 | |
| | | | | | | | |
Net Assets | | $ | 79,630,726 | | | $ | 1,699,346,736 | |
| | | | | | | | |
Net Assets Consist of: | | | | | | | | |
Paid-in capital (Note 7) | | $ | 234,744,543 | | | $ | 1,488,708,116 | |
Accumulated net investment income/(loss) | | | 249,260 | | | | (289,552 | ) |
Accumulated net realized loss on investments, securities sold short, written option contracts and foreign currency transactions | | | (173,627,062 | ) | | | (4,844,428 | ) |
Net unrealized appreciation on investments, securities sold short, written option contracts and translation of assets and liabilities in foreign currencies | | | 18,263,985 | | | | 215,772,600 | |
| | | | | | | | |
Total Net Assets | | $ | 79,630,726 | | | $ | 1,699,346,736 | |
| | | | | | | | |
Investments, at Cost | | $ | 69,519,642 | | | $ | 1,611,137,557 | |
| | | | |
| See Notes to Financial Statements | | 35 | | June 30, 2013 |
Statement of Assets and Liabilities (Unaudited)
| | | | | | | | |
| | | Forward
Real Estate
Long/Short
Fund
(continued) | | | Forward
Select
Income Fund
(continued) | |
Pricing of Shares | | | | | | | | |
Investor Class: | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $28.87 | | | | $24.97 | |
Net Assets | | $ | 2,761,987 | | | $ | 105,534,739 | |
Shares of beneficial interest outstanding | | | 95,676 | | | | 4,226,221 | |
Institutional Class: | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $29.74 | | | | $25.00 | |
Net Assets | | $ | 17,377,240 | | | $ | 563,838,621 | |
Shares of beneficial interest outstanding | | | 584,240 | | | | 22,549,448 | |
Class A: | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $28.94 | | | | $25.04 | |
Net Assets | | $ | 35,427,602 | | | $ | 699,267,668 | |
Shares of beneficial interest outstanding | | | 1,224,234 | | | | 27,925,861 | |
Maximum offering price per share (NAV/0.9425, based on maximum sales charge of 5.75% of the offering price) | | | $30.71 | | | | $26.57 | |
Class B: | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $28.77 | | | | $24.79 | |
Net Assets | | $ | 2,256,209 | | | $ | 10,203,270 | |
Shares of beneficial interest outstanding | | | 78,417 | | | | 411,571 | |
Class C: | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $28.71 | | | | $24.57 | |
Net Assets | | $ | 19,444,998 | | | $ | 308,537,801 | |
Shares of beneficial interest outstanding | | | 677,370 | | | | 12,556,671 | |
Advisor Class: | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $29.76 | | | | $25.00 | |
Net Assets | | $ | 2,362,690 | | | $ | 11,964,637 | |
Shares of beneficial interest outstanding | | | 79,403 | | | | 478,574 | |
| | | | |
| June 30, 2013 | | 36 | | See Notes to Financial Statements |
Statement of Operations
For the Six Months Ended June 30, 2013 (Unaudited)
| | | | | | | | | | | | |
| | | Forward
Global
Infrastructure
Fund | | | Forward
International
Real Estate
Fund | | | Forward
Real Estate
Fund | |
Investment Income: | | | | | | | | | | | | |
Interest | | $ | 3,196 | | | $ | 5,907 | | | $ | 2,056 | |
Dividends | | | 3,988,071 | | | | 3,258,558 | | | | 819,177 | |
Foreign taxes withheld | | | (389,600 | ) | | | (351,944 | ) | | | 0 | |
| | | | | | | | | | | | |
Total Investment Income | | | 3,601,667 | | | | 2,912,521 | | | | 821,233 | |
| | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | |
Investment advisory fee | | | 829,215 | | | | 908,100 | | | | 210,686 | |
Administration fee | | | 53,988 | | | | 54,322 | | | | 16,036 | |
Custodian fee | | | 34,084 | | | | 43,500 | | | | 2,013 | |
Legal and audit fees | | | 25,456 | | | | 28,307 | | | | 15,715 | |
Transfer agent fee | | | 83,360 | | | | 79,265 | | | | 24,224 | |
Trustees’ fees and expenses | | | 9,520 | | | | 10,489 | | | | 2,592 | |
Registration/filing fees | | | 36,929 | | | | 43,214 | | | | 22,533 | |
Reports to shareholder and printing fees | | | 25,703 | | | | 16,866 | | | | 5,402 | |
Recoupment of past waived fees by advisor (Note 3) | | | 4,060 | | | | 7,470 | | | | — | |
Distribution and service fees | | | | | | | | | | | | |
Investor Class | | | 89,194 | | | | 23,659 | | | | 67,707 | |
Institutional Class | | | 9,387 | | | | 7,111 | | | | 594 | |
Class A | | | 48,960 | | | | 138,864 | | | | 15,577 | |
Class B | | | 7,361 | | | | — | | | | — | |
Class C | | | 39,759 | | | | 80,564 | | | | 12,100 | |
Advisor Class | | | 346 | | | | 768 | | | | — | |
Chief compliance officer fee | | | 4,642 | | | | 5,121 | | | | 1,249 | |
ReFlow fees (Note 2) | | | 12,856 | | | | 13,106 | | | | — | |
Other | | | 10,303 | | | | 5,778 | | | | 2,391 | |
| | | | | | | | | | | | |
Total expenses before waiver | | | 1,325,123 | | | | 1,466,504 | | | | 398,819 | |
Less fees waived/reimbursed by investment advisor (Note 3) | | | 0 | | | | (30,349 | ) | | | 0 | |
| | | | | | | | | | | | |
Total Net Expenses | | | 1,325,123 | | | | 1,436,155 | | | | 398,819 | |
| | | | | | | | | | | | |
Net Investment Income: | | | 2,276,544 | | | | 1,476,366 | | | | 422,414 | |
| | | | | | | | | | | | |
Net realized gain on investments | | | 3,978,508 | | | | 14,111,737 | | | | 2,471,655 | |
Net realized gain on written option contracts | | | 115,390 | | | | 0 | | | | 0 | |
Net realized loss on foreign currency | | | (1,972,041 | ) | | | (3,338,146 | ) | | | 0 | |
Net change in unrealized depreciation on investments | | | (6,492,069 | ) | | | (18,056,351 | ) | | | (186,152 | ) |
Net change in unrealized depreciation on written option contracts | | | (107,375 | ) | | | 0 | | | | 0 | |
Net change in unrealized appreciation/(depreciation) on translation of assets and liabilities in foreign currency transactions | | | (27,574 | ) | | | 6,414 | | | | 0 | |
| | | | | | | | | | | | |
Net Realized and Unrealized Gain/(Loss) on Investments, Written Option Contracts and Foreign Currency Translations | | | (4,505,161 | ) | | | (7,276,346 | ) | | | 2,285,503 | |
| | | | | | | | | | | | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | $ | (2,228,617 | ) | | $ | (5,799,980 | ) | | $ | 2,707,917 | |
| | | | | | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 37 | | June 30, 2013 |
Statement of Operations
For the Six Months Ended June 30, 2013 (Unaudited)
| | | | | | | | |
| | | Forward
Real Estate
Long/Short
Fund | | | Forward
Select
Income
Fund | |
Investment Income: | | | | | | | | |
Interest | | $ | 28,014 | | | $ | 6,086,816 | |
Dividends | | | 1,755,684 | | | | 62,379,494 | |
Foreign taxes withheld | | | (1,671 | ) | | | (51,300 | ) |
| | | | | | | | |
Total Investment Income | | | 1,782,027 | | | | 68,415,010 | |
| | | | | | | | |
Expenses: | | | | | | | | |
Interest on loan | | | 137,934 | | | | 1,130,498 | |
Dividend expense on short sales | | | 147,934 | | | | — | |
Investment advisory fee | | | 407,420 | | | | 9,590,146 | |
Administration fee | | | 26,073 | | | | 403,636 | |
Custodian fee | | | 6,300 | | | | 21,051 | |
Legal and audit fees | | | 20,584 | | | | 154,082 | |
Transfer agent fee | | | 41,338 | | | | 644,037 | |
Trustees’ fees and expenses | | | 4,383 | | | | 104,647 | |
Registration/filing fees | | | 31,574 | | | | 75,363 | |
Reports to shareholder and printing fees | | | 8,157 | | | | 119,411 | |
Distribution and service fees | | | | | | | | |
Investor Class | | | 6,551 | | | | 147,509 | |
Institutional Class | | | 1,403 | | | | 59,458 | |
Class A | | | 77,103 | | | | 1,624,974 | |
Class B | | | 12,165 | | | | 55,255 | |
Class C | | | 99,268 | | | | 1,584,992 | |
Advisor Class | | | 531 | | | | 2,176 | |
Chief compliance officer fee | | | 2,136 | | | | 50,977 | |
ReFlow fees (Note 2) | | | 3,928 | | | | 5,350 | |
Other | | | 4,104 | | | | 61,319 | |
| | | | | | | | |
Total Expenses | | | 1,038,886 | | | | 15,834,881 | |
| | | | | | | | |
Net Investment Income: | | | 743,141 | | | | 52,580,129 | |
| | | | | | | | |
Net realized gain on investments | | | 7,800,777 | | | | 89,599,820 | |
Net realized gain/(loss) on securities sold short | | | (307,550 | ) | | | 513,704 | |
Net realized gain on written option contracts | | | 19,082 | | | | 0 | |
Net realized loss on foreign currency | | | (118,381 | ) | | | 0 | |
Net change in unrealized depreciation on investments | | | (2,806,039 | ) | | | (42,126,858 | ) |
Net change in unrealized appreciation/(depreciation) on securities sold short | | | (30,712 | ) | | | 8,183 | |
Net change in unrealized depreciation on written option contracts | | | (31,589 | ) | | | 0 | |
Net change in unrealized appreciation on translation of assets and liabilities in foreign currency transactions | | | 1,946 | | | | 0 | |
| | | | | | | | |
Net Realized and Unrealized Gain on Investments, Securities Sold Short, Written Option Contracts and Foreign Currency Translations | | | 4,527,534 | | | | 47,994,849 | |
| | | | | | | | |
Net Increase in Net Assets Resulting from Operations | | $ | 5,270,675 | | | $ | 100,574,978 | |
| | | | | | | | |
| | | | |
| June 30, 2013 | | 38 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Global Infrastructure Fund | |
| | | Six Months
Ended
June 30, 2013
(Unaudited)(a) | | | Year Ended
December 31, 2012 | |
Operations: | | | | | | | | |
Net investment income | | $ | 2,276,544 | | | $ | 1,778,477 | |
Net realized gain on investments | | | 3,978,508 | | | | 6,815,393 | |
Net realized gain on written option contracts | | | 115,390 | | | | 137,591 | |
Net realized loss on foreign currency transactions | | | (1,972,041 | ) | | | (25,124 | ) |
Net change in unrealized appreciation/(depreciation) on investments, written option contracts and translation of assets and liabilities in foreign currencies | | | (6,627,018 | ) | | | 8,926,055 | |
| | | | | | | | |
Net increase/(decrease) in net assets resulting from operations | | | (2,228,617 | ) | | | 17,632,392 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (562,593 | ) | | | (69,589 | ) |
Institutional Class | | | (940,950 | ) | | | (1,505,315 | ) |
Class A | | | (191,203 | ) | | | (356,743 | ) |
Class B | | | (7,069 | ) | | | (16,857 | ) |
Class C | | | (40,120 | ) | | | (74,664 | ) |
Advisor Class | | | (13,445 | ) | | | (27,416 | ) |
| | | | | | | | |
Total distributions | | | (1,755,380 | ) | | | (2,050,584 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 40,827,913 | | | | 33,296,444 | |
Issued to shareholders in reinvestment of distributions | | | 137,054 | | | | 69,536 | |
Cost of shares redeemed | | | (6,207,847 | ) | | | (6,933,048 | ) |
| | | | | | | | |
Net increase from share transactions | | | 34,757,120 | | | | 26,432,932 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 42,524,798 | | | | 40,841,664 | |
Issued to shareholders in reinvestment of distributions | | | 782,478 | | | | 1,501,404 | |
Cost of shares redeemed | | | (38,301,556 | ) | | | (34,801,268 | ) |
| | | | | | | | |
Net increase from share transactions | | | 5,005,720 | | | | 7,541,800 | |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | 1,550,536 | | | | 1,968,237 | |
Issued to shareholders in reinvestment of distributions | | | 160,237 | | | | 305,985 | |
Cost of shares redeemed | | | (3,257,394 | ) | | | (8,888,235 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (1,546,621 | ) | | | (6,614,013 | ) |
| | | | | | | | |
Class B | | | | | | | | |
Issued to shareholders in reinvestment of distributions | | | 6,307 | | | | 13,481 | |
Cost of shares redeemed | | | (290,360 | ) | | | (855,589 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (284,053 | ) | | | (842,108 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 262,900 | | | | 606,475 | |
Issued to shareholders in reinvestment of distributions | | | 37,220 | | | | 66,756 | |
Cost of shares redeemed | | | (1,116,521 | ) | | | (1,847,050 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (816,401 | ) | | | (1,173,819 | ) |
| | | | | | | | |
Advisor Class | | | | | | | | |
Proceeds from sale of shares | | | 351,018 | | | | 3,703,919 | |
Issued to shareholders in reinvestment of distributions | | | 5,041 | | | | 27,294 | |
Cost of shares redeemed | | | (3,547,029 | ) | | | (433,377 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (3,190,970 | ) | | | 3,297,836 | |
| | | | | | | | |
Net increase in net assets | | $ | 29,940,798 | | | $ | 44,224,436 | |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 155,007,191 | | | | 110,782,755 | |
| | | | | | | | |
End of period (including accumulated net investment income/(loss) of $314,422 and $(206,742), respectively) | | $ | 184,947,989 | | | $ | 155,007,191 | |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 39 | | June 30, 2013 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Global Infrastructure Fund (continued) | |
| | | Six Months
Ended
June 30, 2013
(Unaudited)(a) | | | Year Ended
December 31, 2012 | |
Other Information: | | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 1,892,052 | | | | 1,630,430 | |
Distributions reinvested | | | 6,832 | | | | 3,361 | |
Redeemed | | | (288,213 | ) | | | (341,314 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 1,610,671 | | | | 1,292,477 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 1,977,300 | | | | 2,035,059 | |
Distributions reinvested | | | 38,833 | | | | 80,110 | |
Redeemed | | | (1,820,019 | ) | | | (1,713,046 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 196,114 | | | | 402,123 | |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | 71,362 | | | | 97,956 | |
Distributions reinvested | | | 7,944 | | | | 16,569 | |
Redeemed | | | (149,916 | ) | | | (440,508 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (70,610 | ) | | | (325,983 | ) |
| | | | | | | | |
Class B | | | | | | | | |
Distributions reinvested | | | 313 | | | | 736 | |
Redeemed | | | (13,412 | ) | | | (42,136 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (13,099 | ) | | | (41,400 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 12,131 | | | | 30,009 | |
Distributions reinvested | | | 1,843 | | | | 3,638 | |
Redeemed | | | (51,581 | ) | | | (91,975 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (37,607 | ) | | | (58,328 | ) |
| | | | | | | | |
Advisor Class | | | | | | | | |
Sold | | | 16,210 | | | | 183,268 | |
Distributions reinvested | | | 250 | | | | 1,453 | |
Redeemed | | | (168,392 | ) | | | (21,586 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (151,932 | ) | | | 163,135 | |
| | | | | | | | |
(a) Prior to May 1, 2013, the Forward Global Infrastructure Fund Advisor Class was known as the Forward Global Infrastructure Fund Class M.
| | | | |
| June 30, 2013 | | 40 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward International Real Estate Fund | |
| | | Six Months
Ended
June 30, 2013
(Unaudited)(a) | | | Year Ended
December 31, 2012 | |
Operations: | | | | | | | | |
Net investment income | | $ | 1,476,366 | | | $ | 1,968,550 | |
Net realized gain on investments | | | 14,111,737 | | | | 9,473,739 | |
Net realized loss on foreign currency transactions | | | (3,338,146 | ) | | | (581,763 | ) |
Net change in unrealized appreciation/(depreciation) on investments and translation of assets and liabilities in foreign currencies | | | (18,049,937 | ) | | | 15,872,556 | |
| | | | | | | | |
Net increase/(decrease) in net assets resulting from operations | | | (5,799,980 | ) | | | 26,733,082 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (147,712 | ) | | | (460,498 | ) |
Institutional Class | | | (1,834,473 | ) | | | (3,266,599 | ) |
Class A | | | (812,420 | ) | | | (4,340,733 | ) |
Class C | | | (283,779 | ) | | | (826,301 | ) |
Advisor Class | | | (91,279 | ) | | | (80,026 | ) |
| | | | | | | | |
Total distributions | | | (3,169,663 | ) | | | (8,974,157 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 17,735,988 | | | | 12,588,677 | |
Issued to shareholders in reinvestment of distributions | | | 130,642 | | | | 429,541 | |
Cost of shares redeemed | | | (22,548,676 | ) | | | (1,123,674 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (4,682,046 | ) | | | 11,894,544 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 46,008,174 | | | | 62,066,246 | |
Issued to shareholders in reinvestment of distributions | | | 309,936 | | | | 905,353 | |
Cost of shares redeemed | | | (21,166,452 | ) | | | (8,181,501 | ) |
| | | | | | | | |
Net increase from share transactions | | | 25,151,658 | | | | 54,790,098 | |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | 28,017,522 | | | | 53,002,164 | |
Issued to shareholders in reinvestment of distributions | | | 759,300 | | | | 4,158,476 | |
Cost of shares redeemed | | | (59,380,199 | ) | | | (13,693,485 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (30,603,377 | ) | | | 43,467,155 | |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 6,705,635 | | | | 3,545,238 | |
Issued to shareholders in reinvestment of distributions | | | 254,943 | | | | 763,162 | |
Cost of shares redeemed | | | (2,318,132 | ) | | | (2,648,486 | ) |
| | | | | | | | |
Net increase from share transactions | | | 4,642,446 | | | | 1,659,914 | |
| | | | | | | | |
Advisor Class | | | | | | | | |
Proceeds from sale of shares | | | 10,088,045 | | | | 5,132,902 | |
Issued to shareholders in reinvestment of distributions | | | 45,982 | | | | 79,590 | |
Cost of shares redeemed | | | (7,257,460 | ) | | | (3,674,598 | ) |
| | | | | | | | |
Net increase from share transactions | | | 2,876,567 | | | | 1,537,894 | |
| | | | | | | | |
Net increase/(decrease) in net assets | | $ | (11,584,395 | ) | | $ | 131,108,530 | |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 163,916,504 | | | | 32,807,974 | |
| | | | | | | | |
End of period (including accumulated net investment loss of $(3,889,006) and $(2,195,709), respectively) | | $ | 152,332,109 | | | $ | 163,916,504 | |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 41 | | June 30, 2013 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward International Real Estate Fund (continued) | |
| | | Six Months
Ended
June 30, 2013
(Unaudited)(a) | | | Year Ended
December 31, 2012 | |
Other Information: | | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 1,001,012 | | | | 735,097 | |
Distributions reinvested | | | 8,321 | | | | 25,328 | |
Redeemed | | | (1,238,374 | ) | | | (66,159 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (229,041 | ) | | | 694,256 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 2,587,970 | | | | 3,767,088 | |
Distributions reinvested | | | 19,804 | | | | 54,882 | |
Redeemed | | | (1,192,034 | ) | | | (519,289 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 1,415,740 | | | | 3,302,681 | |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | 1,545,201 | | | | 3,208,348 | |
Distributions reinvested | | | 48,332 | | | | 252,372 | |
Redeemed | | | (3,333,170 | ) | | | (845,311 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (1,739,637 | ) | | | 2,615,409 | |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 371,985 | | | | 214,475 | |
Distributions reinvested | | | 16,197 | | | | 46,943 | |
Redeemed | | | (131,352 | ) | | | (172,895 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 256,830 | | | | 88,523 | |
| | | | | | | | |
Advisor Class | | | | | | | | |
Sold | | | 557,114 | | | | 299,958 | |
Distributions reinvested | | | 2,940 | | | | 4,736 | |
Redeemed | | | (405,395 | ) | | | (207,659 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 154,659 | | | | 97,035 | |
| | | | | | | | |
(a) Prior to May 1, 2013, the Forward International Real Estate Fund Advisor Class was known as the Forward International Real Estate Fund Class M.
| | | | |
| June 30, 2013 | | 42 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Real Estate Fund | |
| | | Six Months
Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31, 2012 | |
Operations: | | | | | | | | |
Net investment income | | $ | 422,414 | | | $ | 282,015 | |
Net realized gain on investments | | | 2,471,655 | | | | 3,715,280 | |
Net change in unrealized appreciation/(depreciation) on investments | | | (186,152 | ) | | | 2,205,349 | |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 2,707,917 | | | | 6,202,644 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (71,308 | ) | | | (190,470 | ) |
Institutional Class | | | (27,393 | ) | | | (25,408 | ) |
Class A | | | (14,037 | ) | | | (60,017 | ) |
Class C | | | — | | | | (3,793 | ) |
| | | | | | | | |
Total distributions | | | (112,738 | ) | | | (279,688 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 16,960,202 | | | | 5,172,720 | |
Issued to shareholders in reinvestment of distributions | | | 59,027 | | | | 185,136 | |
Cost of shares redeemed | | | (6,991,198 | ) | | | (7,996,659 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | 10,028,031 | | | | (2,638,803 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 4,164,421 | | | | 4,166,574 | |
Issued to shareholders in reinvestment of distributions | | | 14,383 | | | | 15,948 | |
Cost of shares redeemed | | | (1,215,553 | ) | | | (726,369 | ) |
| | | | | | | | |
Net increase from share transactions | | | 2,963,251 | | | | 3,456,153 | |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | 509,632 | | | | 180,846 | |
Issued to shareholders in reinvestment of distributions | | | 12,605 | | | | 53,478 | |
Cost of shares redeemed | | | (446,600 | ) | | | (1,603,671 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | 75,637 | | | | (1,369,347 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 238,707 | | | | 157,556 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 3,541 | |
Cost of shares redeemed | | | (169,474 | ) | | | (519,801 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | 69,233 | | | | (358,704 | ) |
| | | | | | | | |
Net increase in net assets | | $ | 15,731,331 | | | $ | 5,012,255 | |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 39,240,311 | | | | 34,228,056 | |
| | | | | | | | |
End of period (including accumulated net investment income of $341,534 and $31,858, respectively) | | $ | 54,971,642 | | | $ | 39,240,311 | |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 43 | | June 30, 2013 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Real Estate Fund (continued) | |
| | | Six Months
Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31, 2012 | |
Other Information: | | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 1,078,964 | | | | 365,834 | |
Distributions reinvested | | | 3,761 | | | | 12,912 | |
Redeemed | | | (440,508 | ) | | | (567,894 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | 642,217 | | | | (189,148 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 285,490 | | | | 321,428 | |
Distributions reinvested | | | 1,032 | | | | 1,242 | |
Redeemed | | | (84,892 | ) | | | (56,349 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 201,630 | | | | 266,321 | |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | 31,253 | | | | 12,960 | |
Distributions reinvested | | | 809 | | | | 3,770 | |
Redeemed | | | (27,727 | ) | | | (113,883 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | 4,335 | | | | (97,153 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 15,254 | | | | 10,988 | |
Distributions reinvested | | | — | | | | 252 | |
Redeemed | | | (10,694 | ) | | | (36,444 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | 4,560 | | | | (25,204 | ) |
| | | | | | | | |
| | | | |
| June 30, 2013 | | 44 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Real Estate Long/Short Fund | |
| | | Six Months
Ended
June 30, 2013
(Unaudited)(a) | | | Year Ended
December 31, 2012 | |
Operations: | | | | | | | | |
Net investment income | | $ | 743,141 | | | $ | 461,256 | |
Net realized gain on investments | | | 7,800,777 | | | | 7,948,894 | |
Net realized loss on securities sold short | | | (307,550 | ) | | | (316,139 | ) |
Net realized gain on written option contracts | | | 19,082 | | | | 159,116 | |
Net realized gain/(loss) on foreign currency transactions | | | (118,381 | ) | | | 93,152 | |
Net change in unrealized appreciation/(depreciation) on investments, securities sold short, written option contracts and translation of assets and liabilities in foreign currencies | | | (2,866,394 | ) | | | 6,285,415 | |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 5,270,675 | | | | 14,631,694 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (9,627 | ) | | | (33,552 | ) |
Institutional Class | | | (76,203 | ) | | | (292,286 | ) |
Class A | | | (100,948 | ) | | | (741,647 | ) |
Class B | | | (1,542 | ) | | | (43,721 | ) |
Class C | | | (15,123 | ) | | | (276,695 | ) |
Advisor Class | | | (12,008 | ) | | | (61,794 | ) |
| | | | | | | | |
Total distributions | | | (215,451 | ) | | | (1,449,695 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 2,677,523 | | | | 2,942,111 | |
Issued to shareholders in reinvestment of distributions | | | 9,627 | | | | 33,504 | |
Cost of shares redeemed | | | (1,896,720 | ) | | | (1,289,155 | ) |
| | | | | | | | |
Net increase from share transactions | | | 790,430 | | | | 1,686,460 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 4,406,146 | | | | 9,508,024 | |
Issued to shareholders in reinvestment of distributions | | | 68,295 | | | | 290,737 | |
Cost of shares redeemed | | | (1,644,918 | ) | | | (6,815,029 | ) |
| | | | | | | | |
Net increase from share transactions | | | 2,829,523 | | | | 2,983,732 | |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | 1,466,948 | | | | 4,440,798 | |
Issued to shareholders in reinvestment of distributions | | | 84,296 | | | | 604,562 | |
Cost of shares redeemed | | | (4,370,261 | ) | | | (9,411,355 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (2,819,017 | ) | | | (4,365,995 | ) |
| | | | | | | | |
Class B | | | | | | | | |
Issued to shareholders in reinvestment of distributions | | | 1,451 | | | | 40,399 | |
Cost of shares redeemed | | | (505,050 | ) | | | (2,559,685 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (503,599 | ) | | | (2,519,286 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 678,650 | | | | 1,255,387 | |
Issued to shareholders in reinvestment of distributions | | | 13,118 | | | | 239,564 | |
Cost of shares redeemed | | | (1,679,396 | ) | | | (5,252,048 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (987,628 | ) | | | (3,757,097 | ) |
| | | | | | | | |
Advisor Class | | | | | | | | |
Proceeds from sale of shares | | | 1,388,665 | | | | 5,149,397 | |
Issued to shareholders in reinvestment of distributions | | | 12,008 | | | | 61,794 | |
Cost of shares redeemed | | | (1,746,485 | ) | | | (2,860,466 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (345,812 | ) | | | 2,350,725 | |
| | | | | | | | |
Net increase in net assets | | $ | 4,019,121 | | | $ | 9,560,538 | |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 75,611,605 | | | | 66,051,067 | |
| | | | | | | | |
End of period (including accumulated net investment income/(loss) of $249,260 and $(278,430), respectively) | | $ | 79,630,726 | | | $ | 75,611,605 | |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 45 | | June 30, 2013 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Real Estate Long/Short Fund (continued) | |
| | | Six Months
Ended
June 30, 2013
(Unaudited)(a) | | | Year Ended
December 31, 2012 | |
Other Information: | | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 91,929 | | | | 113,293 | |
Distributions reinvested | | | 341 | | | | 1,268 | |
Redeemed | | | (66,609 | ) | | | (48,659 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 25,661 | | | | 65,902 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 148,896 | | | | 362,887 | |
Distributions reinvested | | | 2,340 | | | | 10,773 | |
Redeemed | | | (54,849 | ) | | | (262,018 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 96,387 | | | | 111,642 | |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | 50,392 | | | | 173,842 | |
Distributions reinvested | | | 2,978 | | | | 23,090 | |
Redeemed | | | (150,268 | ) | | | (369,434 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (96,898 | ) | | | (172,502 | ) |
| | | | | | | | |
Class B | | | | | | | | |
Distributions reinvested | | | 52 | | | | 1,552 | |
Redeemed | | | (17,711 | ) | | | (101,394 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (17,659 | ) | | | (99,842 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 23,166 | | | | 48,813 | |
Distributions reinvested | | | 470 | | | | 9,179 | |
Redeemed | | | (58,257 | ) | | | (208,778 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (34,621 | ) | | | (150,786 | ) |
| | | | | | | | |
Advisor Class | | | | | | | | |
Sold | | | 45,674 | | | | 195,755 | |
Distributions reinvested | | | 410 | | | | 2,283 | |
Redeemed | | | (57,287 | ) | | | (107,835 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (11,203 | ) | | | 90,203 | |
| | | | | | | | |
(a) Prior to May 1, 2013, the Forward Real Estate Long/Short Fund Advisor Class was known as the Forward Real Estate Long/Short Fund Class M.
| | | | |
| June 30, 2013 | | 46 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Select Income Fund | |
| | | Six Months
Ended
June 30, 2013
(Unaudited)(a) | | | Year Ended
December 31, 2012 | |
Operations: | | | | | | | | |
Net investment income | | $ | 52,580,129 | | | $ | 63,775,335 | |
Net realized gain on investments | | | 89,599,820 | | | | 42,991,555 | |
Net realized gain on securities sold short | | | 513,704 | | | | 231,977 | |
Net change in unrealized appreciation/(depreciation) on investments and securities sold short | | | (42,118,675 | ) | | | 161,279,282 | |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 100,574,978 | | | | 268,278,149 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (2,522,034 | ) | | | (965,137 | ) |
Institutional Class | | | (20,423,767 | ) | | | (39,422,684 | ) |
Class A | | | (21,160,319 | ) | | | (47,460,016 | ) |
Class B | | | (272,840 | ) | | | (821,445 | ) |
Class C | | | (8,120,683 | ) | | | (18,107,020 | ) |
Advisor Class | | | (370,038 | ) | | | (831,816 | ) |
From return of capital | | | | | | | | |
Investor Class | | | — | | | | (100,989 | ) |
Institutional Class | | | — | | | | (4,125,044 | ) |
Class A | | | — | | | | (4,966,041 | ) |
Class B | | | — | | | | (85,953 | ) |
Class C | | | — | | | | (1,894,652 | ) |
Advisor Class | | | — | | | | (87,038 | ) |
| | | | | | | | |
Total distributions | | | (52,869,681 | ) | | | (118,867,835 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 84,222,570 | | | | 47,148,201 | |
Issued to shareholders in reinvestment of distributions | | | 455,130 | | | | 1,064,367 | |
Cost of shares redeemed | | | (19,588,766 | ) | | | (7,249,529 | ) |
| | | | | | | | |
Net increase from share transactions | | | 65,088,934 | | | | 40,963,039 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 203,751,031 | | | | 414,716,743 | |
Issued to shareholders in reinvestment of distributions | | | 17,020,951 | | | | 38,225,274 | |
Cost of shares redeemed | | | (331,337,769 | ) | | | (208,914,172 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (110,565,787 | ) | | | 244,027,845 | |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | 101,846,800 | | | | 276,307,428 | |
Issued to shareholders in reinvestment of distributions | | | 17,395,737 | | | | 42,533,327 | |
Cost of shares redeemed | | | (195,488,107 | ) | | | (225,282,875 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (76,245,570 | ) | | | 93,557,880 | |
| | | | | | | | |
Class B | | | | | | | | |
Proceeds from sale of shares | | | — | | | | 30,310 | |
Issued to shareholders in reinvestment of distributions | | | 201,270 | | | | 675,261 | |
Cost of shares redeemed | | | (2,174,267 | ) | | | (6,550,227 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (1,972,997 | ) | | | (5,844,656 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 12,225,236 | | | | 47,417,841 | |
Issued to shareholders in reinvestment of distributions | | | 6,346,619 | | | | 15,040,736 | |
Cost of shares redeemed | | | (25,975,193 | ) | | | (45,593,459 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (7,403,338 | ) | | | 16,865,118 | |
| | | | | | | | |
Advisor Class | | | | | | | | |
Proceeds from sale of shares | | | 1,619,155 | | | | 14,534,585 | |
Issued to shareholders in reinvestment of distributions | | | 296,923 | | | | 667,068 | |
Cost of shares redeemed | | | (2,092,016 | ) | | | (7,242,217 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (175,938 | ) | | | 7,959,436 | |
| | | | | | | | |
Net increase/(decrease) in net assets | | $ | (83,569,399 | ) | | $ | 546,938,976 | |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 1,782,916,135 | | | | 1,235,977,159 | |
| | | | | | | | |
End of period (including accumulated net investment loss of $(289,552) and $0, respectively) | | $ | 1,699,346,736 | | | $ | 1,782,916,135 | |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 47 | | June 30, 2013 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Select Income Fund (continued) | |
| | | Six Months
Ended
June 30, 2013
(Unaudited)(a) | | | Year Ended
December 31, 2012 | |
Other Information: | | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 3,283,246 | | | | 1,943,568 | |
Distributions reinvested | | | 18,253 | | | | 44,115 | |
Redeemed | | | (777,770 | ) | | | (298,033 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 2,523,729 | | | | 1,689,650 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 7,942,962 | | | | 17,482,680 | |
Distributions reinvested | | | 676,519 | | | | 1,610,544 | |
Redeemed | | | (12,916,720 | ) | | | (8,740,849 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (4,297,239 | ) | | | 10,352,375 | |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | 3,983,970 | | | | 11,707,187 | |
Distributions reinvested | | | 691,997 | | | | 1,792,522 | |
Redeemed | | | (7,640,480 | ) | | | (9,444,898 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (2,964,513 | ) | | | 4,054,811 | |
| | | | | | | | |
Class B | | | | | | | | |
Sold | | | — | | | | 1,308 | |
Distributions reinvested | | | 8,090 | | | | 28,799 | |
Redeemed | | | (86,655 | ) | | | (280,556 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (78,565 | ) | | | (250,449 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 486,290 | | | | 2,048,668 | |
Distributions reinvested | | | 257,509 | | | | 645,260 | |
Redeemed | | | (1,033,537 | ) | | | (1,957,201 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (289,738 | ) | | | 736,727 | |
| | | | | | | | |
Advisor Class | | | | | | | | |
Sold | | | 63,263 | | | | 621,800 | |
Distributions reinvested | | | 11,842 | | | | 28,223 | |
Redeemed | | | (82,407 | ) | | | (307,792 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (7,302 | ) | | | 342,231 | |
| | | | | | | | |
(a) Prior to May 1, 2013, the Forward Select Income Fund Advisor Class was known as the Forward Select Income Fund Class M.
| | | | |
| June 30, 2013 | | 48 | | See Notes to Financial Statements |
Statement of Cash Flows
For the Six Months Ended June 30, 2013 (Unaudited)
| | | | | | | | |
| | | Forward Real
Estate Long/
Short Fund | | | Forward Select
Income Fund | |
Cash Flows From Operating Activities: | | | | | | | | |
Net increase in net assets resulting from operations | | $ | 5,270,675 | | | $ | 100,574,978 | |
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided/(used) in operating activities: | | | | | | | | |
Purchases of investment securities | | | (40,563,599 | ) | | | (688,391,532 | ) |
Proceeds from sale of investment securities | | | 41,362,951 | | | | 841,594,185 | |
Proceeds from securities sold short transactions | | | 4,284,430 | | | | 123,020,373 | |
Purchases to cover securities sold short transactions | | | (4,036,257 | ) | | | (145,150,024 | ) |
Premiums received from written options transactions | | | 108,218 | | | | — | |
Premiums paid from closing written options transactions | | | (26,425 | ) | | | — | |
Purchase of option contracts | | | (99,156 | ) | | | (246,280 | ) |
Discount and premiums amortized | | | (330 | ) | | | (124,573 | ) |
Net realized gain on investment securities | | | (7,800,777 | ) | | | (89,599,820 | ) |
Net realized (gain)/loss on securities sold short | | | 307,550 | | | | (513,704 | ) |
Net realized gain on written option contracts | | | (19,082 | ) | | | — | |
Net realized loss on foreign currency transactions | | | 118,381 | | | | — | |
Net change in unrealized depreciation on investments, securities sold short, written option contracts and translation of assets and liabilities in foreign currency | | | 2,866,394 | | | | 42,118,675 | |
Changes in assets and liabilities: | | | | | | | | |
Increase/(Decrease) in deposit with broker for securities sold short | | | (74,331 | ) | | | 19,139,210 | |
(Increase)/Decrease in interest and dividends receivable | | | 97,342 | | | | (723,753 | ) |
Increase in other assets | | | (7,245 | ) | | | (105,902 | ) |
Decrease in payable for interest payable | | | (396 | ) | | | (13,274 | ) |
Increase in payable for short sale dividends | | | 13,205 | | | | — | |
Increase/(Decrease) in payable for advisor | | | 2,558 | | | | (24,072 | ) |
Increase in payable for distribution and service fees | | | 2,374 | | | | 57,645 | |
Increase in payable to trustees | | | 213 | | | | 5,927 | |
Decrease in payable for chief compliance officer fee | | | (28 | ) | | | (391 | ) |
Decrease in payable for legal and audit fees | | | (7,881 | ) | | | (55,292 | ) |
Increase in payable for ReFlow fee (Note 2) | | | 3,441 | | | | 5,350 | |
Increase in accrued expenses and other liabilities | | | 1,596 | | | | 16,941 | |
| | | | | | | | |
Net cash provided by operating activities | | | 1,803,821 | | | | 201,584,667 | |
| | | | | | | | |
Cash Flows From Financing Activities: | | | | | | | | |
Cash provided/(used) by loan, net | | | (920,047 | ) | | | 8,847,876 | |
Proceeds from sale of shares | | | 10,653,464 | | | | 404,763,868 | |
Cost of shares redeemed | | | (11,908,438 | ) | | | (578,604,241 | ) |
Cash distributions paid | | | (26,656 | ) | | | (11,153,051 | ) |
| | | | | | | | |
Net cash used in financing activities | | | (2,201,677 | ) | | | (176,145,548 | ) |
| | | | | | | | |
Effect of Exchange Rates on Cash | | | 10,326 | | | | 0 | |
Net Change in Cash & Foreign Currency for the Period | | | (387,530 | ) | | | 25,439,119 | |
Cash & Foreign Currency, Beginning of Period | | | 498,562 | | | | 25,836,373 | |
| | | | | | | | |
Cash & Foreign Currency, End of Period | | $ | 111,032 | | | $ | 51,275,492 | |
| | | | | | | | |
Non-cash financing activities not included herein consist of reinvestment of distributions of $188,795 and $41,716,630, respectively. Cash paid for interest on loan during the period was $138,330 and $1,143,772, respectively.
| | | | |
| See Notes to Financial Statements | | 49 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Global Infrastructure Fund
| | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Period Ended
December 31,
2011(a) | |
Net Asset Value, Beginning of Period | | $ | 21.02 | | | $ | 18.68 | | | $ | 22.54 | |
Income/(Loss) from Operations: | | | | | | | | | | | | |
Net investment income(b) | | | 0.28 | | | | 0.04 | | | | 0.23 | |
Net realized and unrealized gain/(loss) on investments | | | (0.34 | ) | | | 2.62 | | | | (3.75 | ) |
| | | | | | | | | | | | |
Total from Investment Operations | | | (0.06 | ) | | | 2.66 | | | | (3.52 | ) |
| | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | |
From investment income | | | (0.20 | ) | | | (0.32 | ) | | | (0.34 | ) |
| | | | | | | | | | | | |
Total Distributions | | | (0.20 | ) | | | (0.32 | ) | | | (0.34 | ) |
| | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.26 | ) | | | 2.34 | | | | (3.86 | ) |
| | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 20.76 | | | $ | 21.02 | | | $ | 18.68 | |
| | | | | | | | | | | | |
Total Return | | | (0.27 | )%(c) | | | 14.48 | % | | | (15.74 | )%(c) |
Ratios/Supplemental Data: | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 60,281 | | | $ | 27,193 | | | $ | 21 | |
Ratios to Average Net Assets: | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 2.61 | %(d) | | | 0.18 | % | | | 1.83 | %(d) |
Operating expenses including reimbursement/waiver | | | n/a | | | | n/a | | | | 1.72 | %(d)(e) |
Operating expenses excluding reimbursement/waiver | | | 1.64 | %(d) | | | 1.66 | % | | | 1.73 | %(d) |
Portfolio Turnover Rate | | | 44 | %(c) | | | 74 | % | | | 88 | %(f) |
(a) The Fund began offering Investor Class shares on May 2, 2011.
(b) Per share amounts are based upon average shares outstanding.
(c) Not Annualized.
(d) Annualized.
(e) Effective July 1, 2011, the Advisor agreed not to limit expenses.
(f) Portfolio turnover rate is calculated at the Fund level and represents the year ended December 31, 2011.
| | | | |
| June 30, 2013 | | 50 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Global Infrastructure Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class(a) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | | | Year Ended
December 31,
2009(b) | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 21.10 | | | $ | 18.72 | | | $ | 20.27 | | | $ | 19.39 | | | $ | 15.37 | | | $ | 27.11 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.28 | (c) | | | 0.32 | (c) | | | 0.43 | (c) | | | 0.44 | | | | 0.45 | | | | 0.47 | (c) |
Net realized and unrealized gain/(loss) on investments | | | (0.31 | ) | | | 2.42 | | | | (1.60 | ) | | | 1.11 | | | | 4.08 | | | | (11.80 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.03 | ) | | | 2.74 | | | | (1.17 | ) | | | 1.55 | | | | 4.53 | | | | (11.33 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.22 | ) | | | (0.36 | ) | | | (0.38 | ) | | | (0.67 | ) | | | (0.51 | ) | | | (0.39 | ) |
From capital gains | | | — | | | | — | | | | — | | | | — | | | | — | | | | (0.04 | ) |
Tax return of capital | | | — | | | | — | | | | — | | | | — | | | | — | | | | (0.00 | )(d) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.22 | ) | | | (0.36 | ) | | | (0.38 | ) | | | (0.67 | ) | | | (0.51 | ) | | | (0.43 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Redemption Fees Added to Paid In Capital | | | — | | | | — | | | | — | | | | — | | | | 0.00 | (d) | | | 0.02 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.25 | ) | | | 2.38 | | | | (1.55 | ) | | | 0.88 | | | | 4.02 | | | | (11.74 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 20.85 | | | $ | 21.10 | | | $ | 18.72 | | | $ | 20.27 | | | $ | 19.39 | | | $ | 15.37 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | (0.14 | )%(e) | | | 14.95 | % | | | (5.92 | )% | | | 8.50 | % | | | 29.84 | % | | | (42.05 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 93,438 | | | $ | 90,441 | | | $ | 72,691 | | | $ | 37,217 | | | $ | 67,523 | | | $ | 32,664 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 2.60 | %(f) | | | 1.61 | % | | | 2.12 | % | | | 2.13 | % | | | 2.63 | % | | | 2.24 | % |
Operating expenses including reimbursement/waiver | | | n/a | | | | n/a | | | | 1.29 | %(g) | | | 1.25 | % | | | 1.24 | % | | | 1.26 | % |
Operating expenses excluding reimbursement/waiver | | | 1.24 | %(f) | | | 1.23 | % | | | 1.29 | % | | | 1.26 | % | | | 1.32 | % | | | 1.44 | % |
Portfolio Turnover Rate | | | 44 | %(e) | | | 74 | % | | | 88 | % | | | 85 | % | | | 61 | % | | | 123 | % |
(a) Prior to the close of business on June 12, 2009, the Institutional Class was known as Class Y.
(b) Prior to the close of business on June 12, 2009, the Forward Global Infrastructure Fund was known as the Kensington Global Infrastructure Fund.
(c) Per share amounts are based upon average shares outstanding.
(d) Amount represents less than $0.01 per share.
(e) Not Annualized.
(f) Annualized.
(g) Effective July 1, 2011, the Advisor agreed not to limit expenses.
| | | | |
| See Notes to Financial Statements | | 51 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Global Infrastructure Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | | | Year Ended
December 31,
2009(a) | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 21.12 | | | $ | 18.72 | | | $ | 20.28 | | | $ | 19.38 | | | $ | 15.35 | | | $ | 27.10 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.22 | (b) | | | 0.26 | (b) | | | 0.36 | (b) | | | 0.40 | | | | 0.40 | | | | 0.44 | (b) |
Net realized and unrealized gain/(loss) on investments | | | (0.30 | ) | | | 2.43 | | | | (1.60 | ) | | | 1.12 | | | | 4.08 | | | | (11.82 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.08 | ) | | | 2.69 | | | | (1.24 | ) | | | 1.52 | | | | 4.48 | | | | (11.38 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.18 | ) | | | (0.29 | ) | | | (0.32 | ) | | | (0.62 | ) | | | (0.45 | ) | | | (0.33 | ) |
From capital gains | | | — | | | | — | | | | — | | | | — | | | | — | | | | (0.04 | ) |
Tax return of capital | | | — | | | | — | | | | — | | | | — | | | | — | | | | (0.00 | )(c) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.18 | ) | | | (0.29 | ) | | | (0.32 | ) | | | (0.62 | ) | | | (0.45 | ) | | | (0.37 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Redemption Fees Added to Paid In Capital | | | — | | | | — | | | | — | | | | — | | | | 0.00 | (c) | | | 0.00 | (c) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.26 | ) | | | 2.40 | | | | (1.56 | ) | | | 0.90 | | | | 4.03 | | | | (11.75 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 20.86 | | | $ | 21.12 | | | $ | 18.72 | | | $ | 20.28 | | | $ | 19.38 | | | $ | 15.35 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(d) | | | (0.35 | )%(e) | | | 14.57 | % | | | (6.24 | )% | | | 8.29 | % | | | 29.53 | % | | | (42.28 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 22,089 | | | $ | 23,848 | | | $ | 27,248 | | | $ | 50,631 | | | $ | 73,490 | | | $ | 62,918 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 2.06 | %(f) | | | 1.31 | % | | | 1.75 | % | | | 1.85 | % | | | 2.42 | % | | | 1.99 | % |
Operating expenses including reimbursement/waiver | | | n/a | | | | n/a | | | | 1.52 | %(g) | | | 1.50 | % | | | 1.49 | % | | | 1.51 | % |
Operating expenses excluding reimbursement/waiver | | | 1.63 | %(f) | | | 1.58 | % | | | 1.52 | % | | | 1.51 | % | | | 1.57 | % | | | 1.69 | % |
Portfolio Turnover Rate | | | 44 | %(e) | | | 74 | % | | | 88 | % | | | 85 | % | | | 61 | % | | | 123 | % |
(a) Prior to the close of business on June 12, 2009, the Forward Global Infrastructure Fund was known as the Kensington Global Infrastructure Fund.
(b) Per share amounts are based upon average shares outstanding.
(c) Amount represents less than $0.01 per share.
(d) Total return does not reflect the effect of sales charges.
(e) Not Annualized.
(f) Annualized.
(g) Effective July 1, 2011, the Advisor agreed not to limit expenses.
| | | | |
| June 30, 2013 | | 52 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Global Infrastructure Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class B | |
| | | Six Months
Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | | | Year Ended
December 31,
2009(a) | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 21.10 | | | $ | 18.73 | | | $ | 20.28 | | | $ | 19.36 | | | $ | 15.30 | | | $ | 27.04 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.15 | (b) | | | 0.13 | (b) | | | 0.20 | (b) | | | 0.26 | | | | 0.27 | | | | 0.27 | (b) |
Net realized and unrealized gain/(loss) on investments | | | (0.28 | ) | | | 2.42 | | | | (1.59 | ) | | | 1.13 | | | | 4.05 | | | | (11.78 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.13 | ) | | | 2.55 | | | | (1.39 | ) | | | 1.39 | | | | 4.32 | | | | (11.51 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.11 | ) | | | (0.18 | ) | | | (0.16 | ) | | | (0.47 | ) | | | (0.26 | ) | | | (0.19 | ) |
From capital gains | | | — | | | | — | | | | — | | | | — | | | | — | | | | (0.04 | ) |
Tax return of capital | | | — | | | | — | | | | — | | | | — | | | | — | | | | (0.00 | )(c) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.11 | ) | | | (0.18 | ) | | | (0.16 | ) | | | (0.47 | ) | | | (0.26 | ) | | | (0.23 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Redemption Fees Added to Paid In Capital | | | — | | | | — | | | | — | | | | — | | | | 0.00 | (c) | | | 0.00 | (c) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.24 | ) | | | 2.37 | | | | (1.55 | ) | | | 0.92 | | | | 4.06 | | | | (11.74 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 20.86 | | | $ | 21.10 | | | $ | 18.73 | | | $ | 20.28 | | | $ | 19.36 | | | $ | 15.30 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(d) | | | (0.59 | )%(e) | | | 13.78 | % | | | (6.93 | )% | | | 7.50 | % | | | 28.52 | % | | | (42.73 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 1,316 | | | $ | 1,608 | | | $ | 2,203 | | | $ | 3,184 | | | $ | 4,140 | | | $ | 3,708 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 1.39 | %(f) | | | 0.65 | % | | | 0.98 | % | | | 1.17 | % | | | 1.66 | % | | | 1.24 | % |
Operating expenses including reimbursement/waiver | | | n/a | | | | n/a | | | | 2.27 | %(g) | | | 2.25 | % | | | 2.24 | % | | | 2.26 | % |
Operating expenses excluding reimbursement/waiver | | | 2.22 | %(f) | | | 2.23 | % | | | 2.28 | % | | | 2.26 | % | | | 2.32 | % | | | 2.44 | % |
Portfolio Turnover Rate | | | 44 | %(e) | | | 74 | % | | | 88 | % | | | 85 | % | | | 61 | % | | | 123 | % |
(a) Prior to the close of business on June 12, 2009, the Forward Global Infrastructure Fund was known as the Kensington Global Infrastructure Fund.
(b) Per share amounts are based upon average shares outstanding.
(c) Amount represents less than $0.01 per share.
(d) Total return does not reflect the effect of sales charges.
(e) Not Annualized.
(f) Annualized.
(g) Effective July 1, 2011, the Advisor agreed not to limit expenses.
| | | | |
| See Notes to Financial Statements | | 53 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Global Infrastructure Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class C | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | | | Year Ended
December 31,
2009(a) | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 21.14 | | | $ | 18.77 | | | $ | 20.32 | | | $ | 19.40 | | | $ | 15.32 | | | $ | 27.04 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.15 | (b) | | | 0.13 | (b) | | | 0.20 | (b) | | | 0.26 | | | | 0.28 | | | | 0.27 | (b) |
Net realized and unrealized gain/(loss) on investments | | | (0.29 | ) | | | 2.43 | | | | (1.58 | ) | | | 1.13 | | | | 4.05 | | | | (11.78 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.14 | ) | | | 2.56 | | | | (1.38 | ) | | | 1.39 | | | | 4.33 | | | | (11.51 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.11 | ) | | | (0.19 | ) | | | (0.17 | ) | | | (0.47 | ) | | | (0.25 | ) | | | (0.17 | ) |
From capital gains | | | — | | | | — | | | | — | | | | — | | | | — | | | | (0.04 | ) |
Tax return of capital | | | — | | | | — | | | | — | | | | — | | | | — | | | | (0.00 | )(c) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.11 | ) | | | (0.19 | ) | | | (0.17 | ) | | | (0.47 | ) | | | (0.25 | ) | | | (0.21 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Redemption Fees Added to Paid In Capital | | | — | | | | — | | | | — | | | | — | | | | 0.00 | (c) | | | 0.00 | (c) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.25 | ) | | | 2.37 | | | | (1.55 | ) | | | 0.92 | | | | 4.08 | | | | (11.72 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 20.89 | | | $ | 21.14 | | | $ | 18.77 | | | $ | 20.32 | | | $ | 19.40 | | | $ | 15.32 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(d) | | | (0.62 | )%(e) | | | 13.78 | % | | | (6.90 | )% | | | 7.51 | % | | | 28.54 | % | | | (42.76 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 7,342 | | | $ | 8,223 | | | $ | 8,397 | | | $ | 11,697 | | | $ | 15,035 | | | $ | 15,369 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 1.42 | %(f) | | | 0.63 | % | | | 0.99 | % | | | 1.14 | % | | | 1.66 | % | | | 1.24 | % |
Operating expenses including reimbursement/waiver | | | n/a | | | | n/a | | | | 2.28 | %(g) | | | 2.25 | % | | | 2.24 | % | | | 2.26 | % |
Operating expenses excluding reimbursement/waiver | | | 2.22 | %(f) | | | 2.23 | % | | | 2.28 | % | | | 2.26 | % | | | 2.32 | % | | | 2.44 | % |
Portfolio Turnover Rate | | | 44 | %(e) | | | 74 | % | | | 88 | % | | | 85 | % | | | 61 | % | | | 123 | % |
(a) Prior to the close of business on June 12, 2009, the Forward Global Infrastructure Fund was known as the Kensington Global Infrastructure Fund.
(b) Per share amounts are based upon average shares outstanding.
(c) Amount represents less than $0.01 per share.
(d) Total return does not reflect the effect of sales charges.
(e) Not Annualized.
(f) Annualized.
(g) Effective July 1, 2011, the Advisor agreed not to limit expenses.
| | | | |
| June 30, 2013 | | 54 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Global Infrastructure Fund
| | | | | | | | | | | | | | | | |
| | | Advisor Class | |
| | | Six Months Ended
June 30, 2013
(Unaudited)(a) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Period Ended
December 31,
2010(b) | |
Net Asset Value, Beginning of Period | | $ | 21.10 | | | $ | 18.72 | | | $ | 20.27 | | | $ | 18.70 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | |
Net investment income | | | 0.25 | (c) | | | 0.29 | (c) | | | 0.41 | (c) | | | 0.33 | |
Net realized and unrealized gain/(loss) on investments | | | (0.29 | ) | | | 2.45 | | | | (1.58 | ) | | | 1.91 | |
| | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.04 | ) | | | 2.74 | | | | (1.17 | ) | | | 2.24 | |
| | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | |
From investment income | | | (0.22 | ) | | | (0.36 | ) | | | (0.38 | ) | | | (0.67 | ) |
| | | | | | | | | | | | | | | | |
Total Distributions | | | (0.22 | ) | | | (0.36 | ) | | | (0.38 | ) | | | (0.67 | ) |
| | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.26 | ) | | | 2.38 | | | | (1.55 | ) | | | 1.57 | |
| | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 20.84 | | | $ | 21.10 | | | $ | 18.72 | | | $ | 20.27 | |
| | | | | | | | | | | | | | | | |
Total Return | | | (0.15 | )%(d) | | | 14.89 | % | | | (5.92 | )% | | | 12.49 | %(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 482 | | | $ | 3,694 | | | $ | 223 | | | $ | 168 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 2.32 | %(e) | | | 1.45 | % | | | 2.03 | % | | | 2.60 | %(e) |
Operating expenses including reimbursement/waiver | | | n/a | | | | n/a | | | | 1.28 | %(f) | | | 1.24 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 1.25 | %(e) | | | 1.24 | % | | | 1.29 | % | | | 1.26 | %(e) |
Portfolio Turnover Rate | | | 44 | %(d) | | | 74 | % | | | 88 | % | | | 85 | %(g) |
(a) Prior to May 1, 2013, the Forward Global Infrastructure Fund Advisor Class was known as the Forward Global Infrastructure Fund Class M.
(b) The Fund began offering Advisor Class shares on February 1, 2010.
(c) Per share amounts are based upon average shares outstanding.
(d) Not Annualized.
(e) Annualized.
(f) Effective July 1, 2011, the Advisor agreed not to limit expenses.
(g) Portfolio turnover rate is calculated at the Fund level and represents the Year Ended December 31, 2010.
| | | | |
| See Notes to Financial Statements | | 55 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward International Real Estate Fund
| | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Period Ended
December 31,
2011(a) | |
Net Asset Value, Beginning of Period | | $ | 17.26 | | | $ | 12.17 | | | $ | 17.58 | |
Income/(Loss) from Operations: | | | | | | | | | | | | |
Net investment income(b) | | | 0.12 | | | | 0.46 | | | | 0.17 | |
Net realized and unrealized gain/(loss) on investments | | | (0.75 | ) | | | 6.03 | | | | (4.05 | ) |
| | | | | | | | | | | | |
Total from Investment Operations | | | (0.63 | ) | | | 6.49 | | | | (3.88 | ) |
| | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | |
From investment income | | | (0.32 | ) | | | (1.40 | ) | | | (1.53 | ) |
| | | | | | | | | | | | |
Total Distributions | | | (0.32 | ) | | | (1.40 | ) | | | (1.53 | ) |
| | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.95 | ) | | | 5.09 | | | | (5.41 | ) |
| | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 16.31 | | | $ | 17.26 | | | $ | 12.17 | |
| | | | | | | | | | | | |
Total Return | | | (3.58 | )%(c) | | | 54.05 | % | | | (22.31 | )%(c) |
Ratios/Supplemental Data: | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 7,630 | | | $ | 12,027 | | | $ | 30 | |
Ratios to Average Net Assets: | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 1.34 | %(d) | | | 2.76 | % | | | 1.81 | %(d) |
Operating expenses including reimbursement/waiver/recoupment of past waived fees by advisor | | | 1.70 | %(d) | | | 1.80 | % | | | 1.80 | %(d) |
Operating expenses excluding reimbursement/waiver | | | 1.73 | %(d) | | | 1.84 | % | | | 2.34 | %(d) |
Portfolio Turnover Rate | | | 114 | %(c) | | | 209 | % | | | 309 | %(e) |
(a) The Fund began offering Investor Class shares on May 2, 2011.
(b) Per share amounts are based upon average shares outstanding.
(c) Not Annualized.
(d) Annualized.
(e) Portfolio turnover rate is calculated at the Fund level and represents the Year Ended December 31, 2011.
| | | | |
| June 30, 2013 | | 56 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward International Real Estate Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class(a) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | | | Year Ended
December 31,
2009(b) | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 17.24 | | | $ | 12.13 | | | $ | 15.97 | | | $ | 15.51 | | | $ | 12.89 | | | $ | 27.20 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.18 | (c) | | | 0.47 | (c) | | | 0.39 | (c) | | | 0.64 | | | | 0.47 | | | | 0.43 | (c) |
Net realized and unrealized gain/(loss) on investments | | | (0.79 | ) | | | 6.07 | | | | (2.66 | ) | | | 1.96 | | | | 4.18 | | | | (14.32 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.61 | ) | | | 6.54 | | | | (2.27 | ) | | | 2.60 | | | | 4.65 | | | | (13.89 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.37 | ) | | | (1.43 | ) | | | (1.57 | ) | | | (2.14 | ) | | | (2.03 | ) | | | (0.02 | ) |
Tax return of capital | | | — | | | | — | | | | — | | | | — | | | | — | | | | (0.40 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.37 | ) | | | (1.43 | ) | | | (1.57 | ) | | | (2.14 | ) | | | (2.03 | ) | | | (0.42 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Redemption Fees Added to Paid in Capital | | | — | | | | — | | | | — | | | | — | | | | 0.00 | (d) | | | 0.00 | (d) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.98 | ) | | | 5.11 | | | | (3.84 | ) | | | 0.46 | | | | 2.62 | | | | (14.31 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 16.26 | | | $ | 17.24 | | | $ | 12.13 | | | $ | 15.97 | | | $ | 15.51 | | | $ | 12.89 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | (3.46 | )%(e) | | | 54.75 | % | | | (14.56 | )% | | | 18.46 | % | | | 36.49 | % | | | (51.44 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 82,424 | | | $ | 62,978 | | | $ | 4,260 | | | $ | 3,187 | | | $ | 3,532 | | | $ | 5,420 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 2.03 | %(f) | | | 2.81 | % | | | 2.59 | % | | | 2.90 | % | | | 2.24 | % | | | 1.97 | % |
Operating expenses including reimbursement/waiver/recoupment of past waived fees by advisor | | | 1.33 | %(f)(g) | | | 1.40 | % | | | 1.40 | % | | | 1.40 | % | | | 1.40 | % | | | 1.41 | % |
Operating expenses excluding reimbursement/waiver | | | 1.37 | %(f) | | | 1.43 | % | | | 1.78 | % | | | 1.76 | % | | | 1.70 | % | | | 1.50 | % |
Portfolio Turnover Rate | | | 114 | %(e) | | | 209 | % | | | 309 | % | | | 285 | % | | | 143 | % | | | 110 | % |
(a) Prior to the close of business on June 12, 2009, the Institutional Class was known as Class Y.
(b) Prior to the close of business on June 12, 2009, the Forward International Real Estate Fund was known as the Kensington International Real Estate Fund.
(c) Per share amounts are based upon average shares outstanding.
(d) Amount represents less than $0.01 per share.
(e) Not Annualized.
(f) Annualized.
(g) Effective May 1, 2013, the net expense limitation changed from 1.40% to 1.45%.
| | | | |
| See Notes to Financial Statements | | 57 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward International Real Estate Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | | | Year Ended
December 31,
2009(a) | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 17.28 | | | $ | 12.17 | | | $ | 16.04 | | | $ | 15.54 | | | $ | 12.89 | | | $ | 27.17 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.12 | (b) | | | 0.41 | (b) | | | 0.34 | (b) | | | 0.07 | | | | 0.31 | | | | 0.37 | (b) |
Net realized and unrealized gain/(loss) on investments | | | (0.76 | ) | | | 6.09 | | | | (2.67 | ) | | | 2.52 | | | | 4.29 | | | | (14.29 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.64 | ) | | | 6.50 | | | | (2.33 | ) | | | 2.59 | | | | 4.60 | | | | (13.92 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.32 | ) | | | (1.39 | ) | | | (1.54 | ) | | | (2.09 | ) | | | (1.95 | ) | | | (0.02 | ) |
Tax return of capital | | | — | | | | — | | | | — | | | | — | | | | — | | | | (0.34 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.32 | ) | | | (1.39 | ) | | | (1.54 | ) | | | (2.09 | ) | | | (1.95 | ) | | | (0.36 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Redemption Fees Added to Paid in Capital | | | — | | | | — | | | | — | | | | — | | | | 0.00 | (c) | | | 0.00 | (c) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.96 | ) | | | 5.11 | | | | (3.87 | ) | | | 0.50 | | | | 2.65 | | | | (14.28 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 16.32 | | | $ | 17.28 | | | $ | 12.17 | | | $ | 16.04 | | | $ | 15.54 | | | $ | 12.89 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(d) | | | (3.65 | )%(e) | | | 54.06 | % | | | (14.80 | )% | | | 18.33 | % | | | 36.10 | % | | | (51.56 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 41,921 | | | $ | 74,449 | | | $ | 20,594 | | | $ | 29,007 | | | $ | 38,132 | | | $ | 43,311 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 1.31 | %(f) | | | 2.51 | % | | | 2.23 | % | | | 2.57 | % | | | 1.86 | % | | | 1.72 | % |
Operating expenses including reimbursement/waiver/recoupment of past waived fees by advisor | | | 1.71 | %(f)(g) | | | 1.77 | %(h) | | | 1.65 | % | | | 1.65 | % | | | 1.65 | % | | | 1.66 | % |
Operating expenses excluding reimbursement/waiver | | | 1.73 | %(f) | | | 1.83 | % | | | 1.99 | % | | | 2.01 | % | | | 1.92 | % | | | 1.75 | % |
Portfolio Turnover Rate | | | 114 | %(e) | | | 209 | % | | | 309 | % | | | 285 | % | | | 143 | % | | | 110 | % |
(a) Prior to the close of business on June 12, 2009, the Forward International Real Estate Fund was known as the Kensington International Real Estate Fund.
(b) Per share amounts are based upon average shares outstanding.
(c) Amount represents less than $0.01 per share.
(d) Total return does not reflect the effect of sales charges.
(e) Not Annualized.
(f) Annualized.
(g) Effective May 1, 2013, the net expense limitation changed from 1.80% to 1.85%.
(h) Effective May 1, 2012, the net expense limitation changed from 1.65% to 1.80%.
| | | | |
| June 30, 2013 | | 58 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward International Real Estate Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class C | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | | | Year Ended
December 31,
2009(a) | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 17.33 | | | $ | 12.20 | | | $ | 16.06 | | | $ | 15.56 | | | $ | 12.87 | | | $ | 27.04 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.10 | (b) | | | 0.29 | (b) | | | 0.22 | (b) | | | 0.32 | | | | 0.24 | | | | 0.21 | (b) |
Net realized and unrealized gain/(loss) on investments | | | (0.79 | ) | | | 6.12 | | | | (2.67 | ) | | | 2.15 | | | | 4.23 | | | | (14.20 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.69 | ) | | | 6.41 | | | | (2.45 | ) | | | 2.47 | | | | 4.47 | | | | (13.99 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.29 | ) | | | (1.28 | ) | | | (1.41 | ) | | | (1.97 | ) | | | (1.78 | ) | | | — | |
Tax return of capital | | | — | | | | — | | | | — | | | | — | | | | — | | | | (0.18 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.29 | ) | | | (1.28 | ) | | | (1.41 | ) | | | (1.97 | ) | | | (1.78 | ) | | | (0.18 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Redemption Fees Added to Paid in Capital | | | — | | | | — | | | | — | | | | — | | | | 0.00 | (c) | | | 0.00 | (c) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.98 | ) | | | 5.13 | | | | (3.86 | ) | | | 0.50 | | | | 2.69 | | | | (14.17 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 16.35 | | | $ | 17.33 | | | $ | 12.20 | | | $ | 16.06 | | | $ | 15.56 | | | $ | 12.87 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(d) | | | (3.91 | )%(e) | | | 53.13 | % | | | (15.42 | )% | | | 17.40 | % | | | 35.06 | % | | | (51.92 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 16,257 | | | $ | 12,780 | | | $ | 7,916 | | | $ | 11,489 | | | $ | 11,852 | | | $ | 12,935 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 1.08 | %(f) | | | 1.81 | % | | | 1.45 | % | | | 1.87 | % | | | 1.08 | % | | | 0.97 | % |
Operating expenses including reimbursement/waiver/recoupment of past waived fees by advisor | | | 2.31 | %(f) | | | 2.40 | % | | | 2.40 | % | | | 2.40 | % | | | 2.40 | % | | | 2.41 | % |
Operating expenses excluding reimbursement/waiver | | | 2.35 | %(f) | | | 2.48 | % | | | 2.74 | % | | | 2.76 | % | | | 2.67 | % | | | 2.50 | % |
Portfolio Turnover Rate | | | 114 | %(e) | | | 209 | % | | | 309 | % | | | 285 | % | | | 143 | % | | | 110 | % |
(a) Prior to the close of business on June 12, 2009, the Forward International Real Estate Fund was known as the Kensington International Real Estate Fund.
(b) Per share amounts are based upon average shares outstanding.
(c) Amount represents less than $0.01 per share.
(d) Total return does not reflect the effect of sales charges.
(e) Not Annualized.
(f) Annualized.
| | | | |
| See Notes to Financial Statements | | 59 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward International Real Estate Fund
| | | | | | | | | | | | |
| | | Advisor Class | |
| | | Six Months Ended
June 30, 2013
(Unaudited)(a) | | | Year Ended
December 31,
2012 | | | Period Ended
December 31,
2011(b) | |
Net Asset Value, Beginning of Period | | $ | 17.22 | | | $ | 12.12 | | | $ | 17.52 | |
Income/(Loss) from Operations: | | | | | | | | | | | | |
Net investment income(c) | | | 0.17 | | | | 0.25 | | | | 0.32 | |
Net realized and unrealized gain/(loss) on investments | | | (0.77 | ) | | | 6.29 | | | | (4.15 | ) |
| | | | | | | | | | | | |
Total from Investment Operations | | | (0.60 | ) | | | 6.54 | | | | (3.83 | ) |
| | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | |
From investment income | | | (0.37 | ) | | | (1.44 | ) | | | (1.57 | ) |
| | | | | | | | | | | | |
Total Distributions | | | (0.37 | ) | | | (1.44 | ) | | | (1.57 | ) |
| | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.97 | ) | | | 5.10 | | | | (5.40 | ) |
| | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 16.25 | | | $ | 17.22 | | | $ | 12.12 | |
| | | | | | | | | | | | |
Total Return | | | (3.42 | )%(d) | | | 54.68 | % | | | (22.10 | )%(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 4,100 | | | $ | 1,682 | | | $ | 8 | |
Ratios to Average Net Assets: | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 1.88 | %(e) | | | 1.46 | % | | | 3.32 | %(e) |
Operating expenses including reimbursement/waiver/recoupment of past waived fees by advisor | | | 1.34 | %(e)(f) | | | 1.38 | % | | | 1.40 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 1.37 | %(e) | | | 1.45 | % | | | 1.91 | %(e) |
Portfolio Turnover Rate | | | 114 | %(d) | | | 209 | % | | | 309 | %(g) |
(a) Prior to May 1, 2013, the Forward International Real Estate Fund Advisor Class was known as the Forward International Real Estate Fund Class M.
(b) The Fund began offering Advisor Class Shares on May 2, 2011.
(c) Per share amounts are based upon average shares outstanding.
(d) Not Annualized.
(e) Annualized.
(f) Effective May 1, 2013, the net expense limitation changed from 1.40% to 1.50%.
(g) Portfolio turnover rate is calculated at the Fund level and represents the Year Ended December 31, 2011.
| | | | |
| June 30, 2013 | | 60 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Real Estate Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | | | Year Ended
December 31,
2009(a) | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 14.97 | | | $ | 12.71 | | | $ | 12.33 | | | $ | 10.03 | | | $ | 8.35 | | | $ | 14.30 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.13 | (b) | | | 0.11 | (b) | | | 0.10 | (b) | | | 0.17 | | | | 0.21 | | | | 0.22 | |
Net realized and unrealized gain/(loss) on investments | | | 0.86 | | | | 2.26 | | | | 0.37 | | | | 2.36 | | | | 1.63 | | | | (5.88 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.99 | | | | 2.37 | | | | 0.47 | | | | 2.53 | | | | 1.84 | | | | (5.66 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.03 | ) | | | (0.11 | ) | | | (0.09 | ) | | | (0.23 | ) | | | (0.16 | ) | | | (0.19 | ) |
From capital gains | | | — | | | | — | | | | — | | | | — | | | | — | | | | (0.09 | ) |
Tax return of capital | | | — | | | | — | | | | — | | | | — | | | | — | | | | (0.01 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.03 | ) | | | (0.11 | ) | | | (0.09 | ) | | | (0.23 | ) | | | (0.16 | ) | | | (0.29 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.96 | | | | 2.26 | | | | 0.38 | | | | 2.30 | | | | 1.68 | | | | (5.95 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 15.93 | | | $ | 14.97 | | | $ | 12.71 | | | $ | 12.33 | | | $ | 10.03 | | | $ | 8.35 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 6.63 | %(c) | | | 18.69 | % | | | 3.84 | % | | | 25.40 | % | | | 22.44 | % | | | (39.88 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 37,463 | | | $ | 25,602 | | | $ | 24,126 | | | $ | 25,733 | | | $ | 22,199 | | | $ | 19,065 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 1.69 | %(d) | | | 0.78 | % | | | 0.78 | % | | | 1.48 | % | | | 2.44 | % | | | 1.53 | % |
Operating expenses including reimbursement/waiver | | | n/a | | | | n/a | | | | 1.65 | %(e) | | | 1.60 | % | | | 1.69 | %(f) | | | n/a | |
Operating expenses excluding reimbursement/waiver | | | 1.62 | %(d) | | | 1.67 | % | | | 1.68 | % | | | 1.87 | % | | | 1.74 | % | | | 1.47 | % |
Portfolio Turnover Rate | | | 33 | %(c) | | | 33 | % | | | 36 | % | | | 66 | % | | | 64 | % | | | 7 | % |
(a) Prior to January 20, 2009, the Forward Real Estate Fund was known as the Forward Progressive Real Estate Fund.
(b) Per share amounts are based upon average shares outstanding.
(c) Not Annualized.
(d) Annualized.
(e) Effective July 1, 2011, the Advisor agreed not to limit expenses.
(f) Effective May 1, 2009, the Advisor agreed to limit expenses at 1.60%.
| | | | |
| See Notes to Financial Statements | | 61 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Real Estate Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | | | Year Ended
December 31,
2009(a) | | | Period Ended
December 31,
2008(b) | |
Net Asset Value, Beginning of Period | | $ | 13.35 | | | $ | 11.34 | | | $ | 11.01 | | | $ | 8.98 | | | $ | 8.13 | | | $ | 15.39 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.15 | (c) | | | 0.17 | (c) | | | 0.14 | (c) | | | 0.08 | | | | 0.23 | (c) | | | 0.16 | |
Net realized and unrealized gain/(loss) on investments | | | 0.76 | | | | 2.01 | | | | 0.33 | | | | 2.22 | | | | 1.39 | | | | (6.92 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.91 | | | | 2.18 | | | | 0.47 | | | | 2.30 | | | | 1.62 | | | | (6.76 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.06 | ) | | | (0.17 | ) | | | (0.14 | ) | | | (0.27 | ) | | | (0.77 | ) | | | (0.38 | ) |
From capital gains | | | — | | | | — | | | | — | | | | — | | | | — | | | | (0.09 | ) |
Tax return of capital | | | — | | | | — | | | | — | | | | — | | | | — | | | | (0.03 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.06 | ) | | | (0.17 | ) | | | (0.14 | ) | | | (0.27 | ) | | | (0.77 | ) | | | (0.50 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.85 | | | | 2.01 | | | | 0.33 | | | | 2.03 | | | | 0.85 | | | | (7.26 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 14.20 | | | $ | 13.35 | | | $ | 11.34 | | | $ | 11.01 | | | $ | 8.98 | | | $ | 8.13 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 6.75 | %(d) | | | 19.28 | % | | | 4.25 | % | | | 25.91 | % | | | 21.62 | % | | | (44.33 | )%(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 7,599 | | | $ | 4,454 | | | $ | 764 | | | $ | 680 | | | $ | 583 | | | $ | 3,747 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 2.11 | %(e) | | | 1.30 | % | | | 1.23 | % | | | 1.86 | % | | | 3.29 | % | | | 2.05 | %(e) |
Operating expenses including reimbursement/waiver | | | n/a | | | | n/a | | | | 1.25 | %(f) | | | 1.20 | % | | | 1.43 | %(g) | | | n/a | |
Operating expenses excluding reimbursement/waiver | | | 1.25 | %(e) | | | 1.25 | % | | | 1.28 | % | | | 1.47 | % | | | 1.50 | % | | | 1.26 | %(e) |
Portfolio Turnover Rate | | | 33 | %(d) | | | 33 | % | | | 36 | % | | | 66 | % | | | 64 | % | | | 7 | %(h) |
(a) Prior to January 20, 2009, the Forward Real Estate Fund was known as the Forward Progressive Real Estate Fund.
(b) The Fund began offering Institutional Class shares on May 1, 2008.
(c) Per share amounts are based upon average shares outstanding.
(d) Not Annualized.
(e) Annualized.
(f) Effective July 1, 2011, the Advisor agreed not to limit expenses.
(g) Effective May 1, 2009, the Advisor agreed to limit expenses at 1.20%.
(h) Portfolio turnover rate is calculated at the Fund level and represents the Year Ended December 31, 2008.
| | | | |
| June 30, 2013 | | 62 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Real Estate Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Class A | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | | | Period Ended
December 31,
2009(a) | |
Net Asset Value, Beginning of Period | | $ | 14.85 | | | $ | 12.60 | | | $ | 12.22 | | | $ | 9.95 | | | $ | 7.48 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.13 | (b) | | | 0.12 | (b) | | | 0.12 | (b) | | | 0.15 | | | | 0.06 | |
Net realized and unrealized gain on investments | | | 0.85 | | | | 2.25 | | | | 0.37 | | | | 2.37 | | | | 2.60 | |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.98 | | | | 2.37 | | | | 0.49 | | | | 2.52 | | | | 2.66 | |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.03 | ) | | | (0.12 | ) | | | (0.11 | ) | | | (0.25 | ) | | | (0.19 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.03 | ) | | | (0.12 | ) | | | (0.11 | ) | | | (0.25 | ) | | | (0.19 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Increase in Net Asset Value | | | 0.95 | | | | 2.25 | | | | 0.38 | | | | 2.27 | | | | 2.47 | |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 15.80 | | | $ | 14.85 | | | $ | 12.60 | | | $ | 12.22 | | | $ | 9.95 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return(c) | | | 6.60 | %(d) | | | 18.83 | % | | | 4.01 | % | | | 25.49 | % | | | 35.84 | %(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 7,509 | | | $ | 6,994 | | | $ | 7,159 | | | $ | 8,571 | | | $ | 9,039 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 1.65 | %(e) | | | 0.82 | % | | | 0.92 | % | | | 1.62 | % | | | 1.39 | %(e) |
Operating expenses including reimbursement/waiver | | | n/a | | | | n/a | | | | 1.50 | %(f) | | | 1.45 | % | | | 1.45 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 1.64 | %(e) | | | 1.62 | % | | | 1.53 | % | | | 1.71 | % | | | 1.48 | %(e) |
Portfolio Turnover Rate | | | 33 | %(d) | | | 33 | % | | | 36 | % | | | 66 | % | | | 64 | %(g) |
(a) The Fund began offering Class A shares on June 12, 2009.
(b) Per share amounts are based upon average shares outstanding.
(c) Total return does not reflect the effect of sales charges.
(d) Not Annualized.
(e) Annualized.
(f) Effective July 1, 2011, the Advisor agreed not to limit expenses.
(g) Portfolio turnover rate is calculated at the Fund level and represents the Year Ended December 31, 2009.
| | | | |
| See Notes to Financial Statements | | 63 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Real Estate Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Class C | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | | | Period Ended
December 31,
2009(a) | |
Net Asset Value, Beginning of Period | | $ | 14.99 | | | $ | 12.72 | | | $ | 12.35 | | | $ | 10.04 | | | $ | 7.48 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.08 | (b) | | | 0.02 | (b) | | | 0.02 | (b) | | | 0.10 | | | | 0.03 | |
Net realized and unrealized gain on investments | | | 0.86 | | | | 2.27 | | | | 0.38 | | | | 2.37 | | | | 2.59 | |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.94 | | | | 2.29 | | | | 0.40 | | | | 2.47 | | | | 2.62 | |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
From investment income | | | — | | | | (0.02 | ) | | | (0.03 | ) | | | (0.16 | ) | | | (0.06 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (0.02 | ) | | | (0.03 | ) | | | (0.16 | ) | | | (0.06 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Increase in Net Asset Value | | | 0.94 | | | | 2.27 | | | | 0.37 | | | | 2.31 | | | | 2.56 | |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 15.93 | | | $ | 14.99 | | | $ | 12.72 | | | $ | 12.35 | | | $ | 10.04 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return(c) | | | 6.27 | %(d) | | | 18.04 | % | | | 3.21 | % | | | 24.71 | % | | | 35.18 | %(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 2,400 | | | $ | 2,190 | | | $ | 2,178 | | | $ | 2,656 | | | $ | 2,893 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 1.06 | %(e) | | | 0.17 | % | | | 0.17 | % | | | 0.88 | % | | | 0.65 | %(e) |
Operating expenses including reimbursement/waiver | | | n/a | | | | n/a | | | | 2.25 | %(f) | | | 2.20 | % | | | 2.20 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 2.22 | %(e) | | | 2.27 | % | | | 2.28 | % | | | 2.46 | % | | | 2.23 | %(e) |
Portfolio Turnover Rate | | | 33 | %(d) | | | 33 | % | | | 36 | % | | | 66 | % | | | 64 | %(g) |
(a) The Fund began offering Class C shares on June 12, 2009.
(b) Per share amounts are based upon average shares outstanding.
(c) Total return does not reflect the effect of sales charges.
(d) Not Annualized.
(e) Annualized.
(f) Effective July 1, 2011, the Advisor agreed not to limit expenses.
(g) Portfolio turnover rate is calculated at the Fund level and represents the Year Ended December 31, 2009.
| | | | |
| June 30, 2013 | | 64 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Real Estate Long/Short Fund
| | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Period Ended
December 31,
2011(a) | |
Net Asset Value, Beginning of Period | | $ | 27.05 | | | $ | 22.48 | | | $ | 24.62 | |
Income/(Loss) from Operations: | | | | | | | | | | | | |
Net investment income(b) | | | 0.27 | | | | 0.32 | | | | 0.31 | |
Net realized and unrealized gain/(loss) on investments | | | 1.63 | | | | 4.82 | | | | (2.06 | ) |
| | | | | | | | | | | | |
Total from Investment Operations | | | 1.90 | | | | 5.14 | | | | (1.75 | ) |
| | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | |
From investment income | | | (0.08 | ) | | | (0.57 | ) | | | (0.39 | ) |
| | | | | | | | | | | | |
Total Distributions | | | (0.08 | ) | | | (0.57 | ) | | | (0.39 | ) |
| | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 1.82 | | | | 4.57 | | | | (2.14 | ) |
| | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 28.87 | | | $ | 27.05 | | | $ | 22.48 | |
| | | | | | | | | | | | |
Total Return | | | 7.05 | %(c) | | | 22.98 | % | | | (7.09 | )%(c) |
Ratios/Supplemental Data: | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 2,762 | | | $ | 1,894 | | | $ | 92 | |
Ratios to Average Net Assets (excluding interest and dividends on short sales expense): | | | | | | | | | | | | |
Net investment income | | | 2.55 | %(d) | | | 1.91 | % | | | 2.51 | %(d) |
Operating expenses | | | 1.77 | %(d) | | | 1.73 | % | | | 1.98 | %(d) |
Ratios to Average Net Assets (including interest and dividends on short sales expense): | | | | | | | | | | | | |
Net investment income | | | 1.85 | %(d) | | | 1.24 | % | | | 2.08 | %(d) |
Operating expenses | | | 2.48 | %(d) | | | 2.40 | % | | | 2.42 | %(d) |
Portfolio Turnover Rate | | | 44 | %(c) | | | 53 | % | | | 78 | %(e) |
(a) The Fund began offering Investor Class shares on May 2, 2011.
(b) Per share amounts are based upon average shares outstanding.
(c) Not Annualized.
(d) Annualized.
(e) Portfolio turnover rate is calculated at the Fund level and represents the Year Ended December 31, 2011.
| | | | |
| See Notes to Financial Statements | | 65 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Real Estate Long/Short Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class(a) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(b) | | | Year Ended
December 31,
2010 | | | Year Ended
December 31,
2009(c) | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 27.87 | | | $ | 23.10 | | | $ | 23.42 | | | $ | 18.43 | | | $ | 13.35 | | | $ | 34.89 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.35 | (d) | | | 0.31 | (d) | | | 0.52 | (d) | | | 0.90 | | | | 0.81 | | | | 1.95 | (d) |
Net realized and unrealized gain/(loss) on investments | | | 1.66 | | | | 5.10 | | | | (0.27 | ) | | | 5.23 | | | | 5.27 | | | | (21.42 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 2.01 | | | | 5.41 | | | | 0.25 | | | | 6.13 | | | | 6.08 | | | | (19.47 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.14 | ) | | | (0.64 | ) | | | (0.57 | ) | | | (1.14 | ) | | | (1.00 | ) | | | (1.64 | ) |
From capital gains | | | — | | | | — | | | | — | | | | — | | | | — | | | | (0.10 | ) |
Tax return of capital | | | — | | | | — | | | | — | | | | — | | | | — | | | | (0.33 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.14 | ) | | | (0.64 | ) | | | (0.57 | ) | | | (1.14 | ) | | | (1.00 | ) | | | (2.07 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Redemption Fees Added to Paid in Capital | | | — | | | | — | | | | — | | | | — | | | | 0.00 | (e) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 1.87 | | | | 4.77 | | | | (0.32 | ) | | | 4.99 | | | | 5.08 | | | | (21.54 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 29.74 | | | $ | 27.87 | | | $ | 23.10 | | | $ | 23.42 | | | $ | 18.43 | | | $ | 13.35 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 7.22 | %(f) | | | 23.54 | % | | | 1.10 | % | | | 33.67 | % | | | 48.57 | % | | | (57.68 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 17,377 | | | $ | 13,598 | | | $ | 8,692 | | | $ | 3,287 | | | $ | 1,502 | | | $ | 711 | |
Ratios to Average Net Assets (excluding interest and dividends on short sales expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 3.05 | %(g) | | | 1.85 | % | | | 2.71 | % | | | 4.58 | % | | | 7.14 | % | | | 7.77 | % |
Operating expenses | | | 1.39 | %(g) | | | 1.37 | % | | | 1.46 | % | | | 1.34 | % | | | 0.84 | % | | | 0.46 | % |
Ratios to Average Net Assets (including interest and dividends on short sales expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 2.34 | %(g) | | | 1.18 | % | | | 2.27 | % | | | 4.33 | % | | | 7.14 | % | | | 6.68 | % |
Operating expenses | | | 2.09 | %(g) | | | 2.03 | % | | | 1.90 | % | | | 1.59 | % | | | 0.84 | % | | | 1.55 | % |
Portfolio Turnover Rate | | | 44 | %(f) | | | 53 | % | | | 78 | % | | | 95 | % | | | 291 | % | | | 189 | % |
(a) Prior to the close of business on June 12, 2009, the Institutional Class was known as Class Y.
(b) Prior to May 1, 2011, the Forward Real Estate Long/Short Fund was known as the Forward Strategic Realty Fund.
(c) Prior to the close of business on June 12, 2009, the Forward Strategic Realty Fund was known as the Kensington Strategic Realty Fund.
(d) Per share amounts are based upon average shares outstanding.
(e) Amount represents less than $0.01 per share.
(f) Not Annualized.
(g) Annualized.
| | | | |
| June 30, 2013 | | 66 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Real Estate Long/Short Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(a) | | | Year Ended
December 31,
2010 | | | Year Ended
December 31,
2009(b) | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 27.12 | | | $ | 22.50 | | | $ | 22.83 | | | $ | 17.99 | | | $ | 13.02 | | | $ | 34.88 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.27 | (c) | | | 0.19 | (c) | | | 0.35 | (c) | | | 0.77 | | | | 1.36 | | | | 1.92 | (c) |
Net realized and unrealized gain/(loss) on investments | | | 1.63 | | | | 4.98 | | | | (0.17 | ) | | | 5.16 | | | | 4.52 | | | | (21.78 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 1.90 | | | | 5.17 | | | | 0.18 | | | | 5.93 | | | | 5.88 | | | | (19.86 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.08 | ) | | | (0.55 | ) | | | (0.51 | ) | | | (1.09 | ) | | | (0.91 | ) | | | (1.58 | ) |
From capital gains | | | — | | | | — | | | | — | | | | — | | | | — | | | | (0.10 | ) |
Tax return of capital | | | — | | | | — | | | | — | | | | — | | | | — | | | | (0.32 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.08 | ) | | | (0.55 | ) | | | (0.51 | ) | | | (1.09 | ) | | | (0.91 | ) | | | (2.00 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Redemption Fees Added to Paid in Capital | | | — | | | | — | | | | — | | | | — | | | | 0.00 | (d) | | | 0.00 | (d) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 1.82 | | | | 4.62 | | | | (0.33 | ) | | | 4.84 | | | | 4.97 | | | | (21.86 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 28.94 | | | $ | 27.12 | | | $ | 22.50 | | | $ | 22.83 | | | $ | 17.99 | | | $ | 13.02 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(e) | | | 7.02 | %(f) | | | 23.07 | % | | | 0.82 | % | | | 33.34 | % | | | 48.18 | % | | | (58.78 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 35,428 | | | $ | 35,831 | | | $ | 33,601 | | | $ | 48,211 | | | $ | 36,323 | | | $ | 43,718 | |
Ratios to Average Net Assets (excluding interest and dividends on short sales expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 2.58 | %(g) | | | 1.40 | % | | | 1.97 | % | | | 4.11 | % | | | 6.58 | % | | | 7.52 | % |
Operating expenses | | | 1.78 | %(g) | | | 1.72 | % | | | 1.67 | % | | | 1.60 | % | | | 0.84 | % | | | 0.71 | % |
Ratios to Average Net Assets (including interest and dividends on short sales expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 1.88 | %(g) | | | 0.74 | % | | | 1.53 | % | | | 3.86 | % | | | 6.58 | % | | | 6.43 | % |
Operating expenses | | | 2.48 | %(g) | | | 2.39 | % | | | 2.11 | % | | | 1.85 | % | | | 0.84 | % | | | 1.80 | % |
Portfolio Turnover Rate | | | 44 | %(f) | | | 53 | % | | | 78 | % | | | 95 | % | | | 291 | % | | | 189 | % |
(a) Prior to May 1, 2011, the Forward Real Estate Long/Short Fund was known as the Forward Strategic Realty Fund.
(b) Prior to the close of business on June 12, 2009, the Forward Strategic Realty Fund was known as the Kensington Strategic Realty Fund.
(c) Per share amounts are based upon average shares outstanding.
(d) Amount represents less than $0.01 per share.
(e) Total return does not reflect the effect of sales charges.
(f) Not Annualized.
(g) Annualized.
| | | | |
| See Notes to Financial Statements | | 67 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Real Estate Long/Short Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class B | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(a) | | | Year Ended
December 31,
2010 | | | Year Ended
December 31,
2009(b) | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 26.98 | | | $ | 22.37 | | | $ | 22.70 | | | $ | 17.89 | | | $ | 12.83 | | | $ | 34.42 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | | 0.19 | (c) | | | (0.00 | )(c)(d) | | | 0.17 | (c) | | | 0.14 | | | | 0.37 | | | | 1.64 | (c) |
Net realized and unrealized gain/(loss) on investments | | | 1.62 | | | | 4.98 | | | | (0.17 | ) | | | 5.59 | | | | 5.33 | | | | (21.44 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 1.81 | | | | 4.98 | | | | 0.00 | | | | 5.73 | | | | 5.70 | | | | (19.80 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.02 | ) | | | (0.37 | ) | | | (0.33 | ) | | | (0.92 | ) | | | (0.64 | ) | | | (1.40 | ) |
From capital gains | | | — | | | | — | | | | — | | | | — | | | | — | | | | (0.10 | ) |
Tax return of capital | | | — | | | | — | | | | — | | | | — | | | | — | | | | (0.29 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.02 | ) | | | (0.37 | ) | | | (0.33 | ) | | | (0.92 | ) | | | (0.64 | ) | | | (1.79 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Redemption Fees Added to Paid in Capital | | | — | | | | — | | | | — | | | | — | | | | 0.00 | (d) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 1.79 | | | | 4.61 | | | | (0.33 | ) | | | 4.81 | | | | 5.06 | | | | (21.59 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 28.77 | | | $ | 26.98 | | | $ | 22.37 | | | $ | 22.70 | | | $ | 17.89 | | | $ | 12.83 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(e) | | | 6.67 | %(f) | | | 22.31 | % | | | 0.06 | % | | | 32.34 | % | | | 47.02 | % | | | (59.07 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 2,256 | | | $ | 2,593 | | | $ | 4,384 | | | $ | 7,755 | | | $ | 8,729 | | | $ | 9,597 | |
Ratios to Average Net Assets (excluding interest and dividends on short sales expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 1.99 | %(g) | | | 0.65 | % | | | 1.20 | % | | | 3.04 | % | | | 5.78 | % | | | 6.77 | % |
Operating expenses | | | 2.36 | %(g) | | | 2.38 | % | | | 2.42 | % | | | 2.36 | % | | | 1.62 | % | | | 1.46 | % |
Ratios to Average Net Assets (including interest and dividends on short sales expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | | 1.29 | %(g) | | | (0.02 | )% | | | 0.76 | % | | | 2.80 | % | | | 5.78 | % | | | 5.68 | % |
Operating expenses | | | 3.06 | %(g) | | | 3.05 | % | | | 2.86 | % | | | 2.60 | % | | | 1.62 | % | | | 2.55 | % |
Portfolio Turnover Rate | | | 44 | %(f) | | | 53 | % | | | 78 | % | | | 95 | % | | | 291 | % | | | 189 | % |
(a) Prior to May 1, 2011, the Forward Real Estate Long/Short Fund was known as the Forward Strategic Realty Fund.
(b) Prior to the close of business on June 12, 2009, the Forward Strategic Realty Fund was known as the Kensington Strategic Realty Fund.
(c) Per share amounts are based upon average shares outstanding.
(d) Amount represents less than $0.01 per share.
(e) Total return does not reflect the effect of sales charges.
(f) Not Annualized.
(g) Annualized.
| | | | |
| June 30, 2013 | | 68 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Real Estate Long/Short Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class C | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(a) | | | Year Ended
December 31,
2010 | | | Year Ended
December 31,
2009(b) | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 26.93 | | | $ | 22.34 | | | $ | 22.67 | | | $ | 17.87 | | | $ | 12.84 | | | $ | 34.41 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.19 | (c) | | | 0.02 | (c) | | | 0.19 | (c) | | | 0.47 | | | | 0.53 | | | | 1.64 | (c) |
Net realized and unrealized gain/(loss) on investments | | | 1.61 | | | | 4.95 | | | | (0.18 | ) | | | 5.26 | | | | 5.16 | | | | (21.43 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 1.80 | | | | 4.97 | | | | 0.01 | | | | 5.73 | | | | 5.69 | | | | (19.79 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.02 | ) | | | (0.38 | ) | | | (0.34 | ) | | | (0.93 | ) | | | (0.66 | ) | | | (1.39 | ) |
From capital gains | | | — | | | | — | | | | — | | | | — | | | | — | | | | (0.10 | ) |
Tax return of capital | | | — | | | | — | | | | — | | | | — | | | | — | | | | (0.29 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.02 | ) | | | (0.38 | ) | | | (0.34 | ) | | | (0.93 | ) | | | (0.66 | ) | | | (1.78 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Redemption Fees Added to Paid in Capital | | | — | | | | — | | | | — | | | | — | | | | 0.00 | (d) | | | 0.00 | (d) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 1.78 | | | | 4.59 | | | | (0.33 | ) | | | 4.80 | | | | 5.03 | | | | (21.57 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 28.71 | | | $ | 26.93 | | | $ | 22.34 | | | $ | 22.67 | | | $ | 17.87 | | | $ | 12.84 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(e) | | | 6.69 | %(f) | | | 22.30 | % | | | 0.04 | % | | | 32.35 | % | | | 47.03 | % | | | (59.08 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 19,445 | | | $ | 19,171 | | | $ | 19,272 | | | $ | 25,152 | | | $ | 23,191 | | | $ | 22,658 | |
Ratios to Average Net Assets (excluding interest and dividends on short sales expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 2.01 | %(g) | | | 0.74 | % | | | 1.27 | % | | | 3.16 | % | | | 5.77 | % | | | 6.77 | % |
Operating expenses | | | 2.36 | %(g) | | | 2.38 | % | | | 2.43 | % | | | 2.36 | % | | | 1.65 | % | | | 1.46 | % |
Ratios to Average Net Assets (including interest and dividends on short sales expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 1.31 | %(g) | | | 0.07 | % | | | 0.83 | % | | | 2.92 | % | | | 5.77 | % | | | 5.68 | % |
Operating expenses | | | 3.07 | %(g) | | | 3.04 | % | | | 2.87 | % | | | 2.60 | % | | | 1.65 | % | | | 2.55 | % |
Portfolio Turnover Rate | | | 44 | %(f) | | | 53 | % | | | 78 | % | | | 95 | % | | | 291 | % | | | 189 | % |
(a) Prior to May 1, 2011, the Forward Real Estate Long/Short Fund was known as the Forward Strategic Realty Fund.
(b) Prior to the close of business on June 12, 2009, the Forward Strategic Realty Fund was known as the Kensington Strategic Realty Fund.
(c) Per share amounts are based upon average shares outstanding.
(d) Amount represents less than $0.01 per share.
(e) Total return does not reflect the effect of sales charges.
(f) Not Annualized.
(g) Annualized.
| | | | |
| See Notes to Financial Statements | | 69 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Real Estate Long/Short Fund
| | | | | | | | | | | | |
| | | Advisor Class | |
| | | Six Months Ended
June 30, 2013
(Unaudited)(a) | | | Year Ended
December 31,
2012 | | | Period Ended
December 31,
2011(b) | |
Net Asset Value, Beginning of Period | | $ | 27.88 | | | $ | 23.10 | | | $ | 25.26 | |
Income/(Loss) from Operations: | | | | | | | | | | | | |
Net investment income(c) | | | 0.32 | | | | 0.40 | | | | 0.36 | |
Net realized and unrealized gain/(loss) on investments | | | 1.70 | | | | 5.02 | | | | (2.09 | ) |
| | | | | | | | | | | | |
Total from Investment Operations | | | 2.02 | | | | 5.42 | | | | (1.73 | ) |
| | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | |
From investment income | | | (0.14 | ) | | | (0.64 | ) | | | (0.43 | ) |
| | | | | | | | | | | | |
Total Distributions | | | (0.14 | ) | | | (0.64 | ) | | | (0.43 | ) |
| | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 1.88 | | | | 4.78 | | | | (2.16 | ) |
| | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 29.76 | | | $ | 27.88 | | | $ | 23.10 | |
| | | | | | | | | | | | |
Total Return | | | 7.24 | %(d) | | | 23.59 | % | | | (6.81 | )%(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 2,363 | | | $ | 2,526 | | | $ | 9 | |
Ratios to Average Net Assets (excluding interest and dividends on short sales expense): | | | | | | | | | | | | |
Net investment income | | | 2.88 | %(e) | | | 2.14 | % | | | 2.78 | %(e) |
Operating expenses | | | 1.39 | %(e) | | | 1.33 | % | | | 1.50 | %(e) |
Ratios to Average Net Assets (including interest and dividends on short sales expense): | | | | | | | | | | | | |
Net investment income | | | 2.18 | %(e) | | | 1.47 | % | | | 2.34 | %(e) |
Operating expenses | | | 2.09 | %(e) | | | 1.99 | % | | | 1.94 | %(e) |
Portfolio Turnover Rate | | | 44 | %(d) | | | 53 | % | | | 78 | %(f) |
(a) Prior to May 1, 2013, the Forward Real Estate Long/Short Fund Advisor Class was known as the Forward Real Estate Long/Short Fund Class M.
(b) The Fund began offering Advisor Class Shares on May 2, 2011.
(c) Per share amounts are based upon average shares outstanding.
(d) Not Annualized.
(e) Annualized.
(f) Portfolio turnover rate is calculated at the Fund level and represents the Year Ended December 31, 2011.
| | | | |
| June 30, 2013 | | 70 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Select Income Fund
| | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Period Ended
December 31,
2011(a) | |
Net Asset Value, Beginning of Period | | $ | 24.38 | | | $ | 22.01 | | | $ | 21.75 | |
Income/(Loss) from Operations: | | | | | | | | | | | | |
Net investment income(b) | | | 0.75 | | | | 1.18 | | | | 0.38 | |
Net realized and unrealized gain on investments | | | 0.57 | | | | 2.95 | | | | 0.33 | |
| | | | | | | | | | | | |
Total from Investment Operations | | | 1.32 | | | | 4.13 | | | | 0.71 | |
| | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | |
From investment income | | | (0.73 | ) | | | (1.59 | ) | | | (0.45 | ) |
Tax return of capital | | | — | | | | (0.17 | ) | | | — | |
| | | | | | | | | | | | |
Total Distributions | | | (0.73 | ) | | | (1.76 | ) | | | (0.45 | ) |
| | | | | | | | | | | | |
Net Increase in Net Asset Value | | | 0.59 | | | | 2.37 | | | | 0.26 | |
| | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 24.97 | | | $ | 24.38 | | | $ | 22.01 | |
| | | | | | | | | | | | |
Total Return | | | 5.43 | %(c) | | | 19.23 | % | | | 3.28 | %(c) |
Ratios/Supplemental Data: | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 105,535 | | | $ | 41,499 | | | $ | 283 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | | | | | |
Net investment income | | | 6.03 | %(d) | | | 5.16 | % | | | 10.11 | %(d) |
Operating expenses | | | 1.59 | %(d) | | | 1.59 | % | | | 1.67 | %(d) |
Ratios to Average Net Assets (including interest expense): | | | | | | | | | | | | |
Net investment income | | | 5.92 | %(d) | | | 4.92 | % | | | 9.77 | %(d) |
Operating expenses | | | 1.71 | %(d) | | | 1.83 | % | | | 2.01 | %(d) |
Portfolio Turnover Rate | | | 36 | %(c) | | | 53 | % | | | 73 | %(e) |
(a) The Fund began offering Investor Class shares on October 26, 2011.
(b) Per share amounts are based upon average shares outstanding.
(c) Not Annualized.
(d) Annualized.
(e) Portfolio turnover rate is calculated at the Fund level and represents the Year Ended December 31, 2011.
| | | | |
| See Notes to Financial Statements | | 71 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Select Income Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class(a) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | | | Year Ended
December 31,
2009(b) | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 24.40 | | | $ | 22.00 | | | $ | 23.24 | | | $ | 20.11 | | | $ | 13.14 | | | $ | 25.13 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.73 | (c) | | | 1.04 | (c) | | | 1.45 | (c) | | | 1.91 | | | | 1.91 | | | | 2.38 | (c) |
Net realized and unrealized gain/(loss) on investments | | | 0.64 | | | | 3.18 | | | | (0.70 | ) | | | 3.29 | | | | 7.29 | | | | (11.90 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 1.37 | | | | 4.22 | | | | 0.75 | | | | 5.20 | | | | 9.20 | | | | (9.52 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.77 | ) | | | (1.65 | ) | | | (1.99 | ) | | | (2.07 | ) | | | (1.73 | ) | | | (1.77 | ) |
Tax return of capital | | | — | | | | (0.17 | ) | | | — | | | | — | | | | (0.51 | ) | | | (0.71 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.77 | ) | | | (1.82 | ) | | | (1.99 | ) | | | (2.07 | ) | | | (2.24 | ) | | | (2.48 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Redemption Fees Added to Paid in Capital | | | — | | | | — | | | | — | | | | — | | | | 0.01 | | | | 0.01 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.60 | | | | 2.40 | | | | (1.24 | ) | | | 3.13 | | | | 6.97 | | | | (11.99 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 25.00 | | | $ | 24.40 | | | $ | 22.00 | | | $ | 23.24 | | | $ | 20.11 | | | $ | 13.14 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 5.63 | %(d) | | | 19.66 | % | | | 3.31 | % | | | 26.74 | % | | | 76.03 | % | | | (40.43 | )%(e)(f) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 563,839 | | | $ | 654,961 | | | $ | 362,894 | | | $ | 319,717 | | | $ | 139,624 | | | $ | 71,934 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 5.88 | %(g) | | | 4.59 | % | | | 6.64 | % | | | 8.98 | % | | | 11.43 | % | | | 12.54 | % |
Operating expenses | | | 1.19 | %(g) | | | 1.18 | % | | | 1.19 | % | | | 1.20 | % | | | 1.27 | % | | | 1.33 | % |
Ratios to Average Net Assets (including interest expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 5.77 | %(g) | | | 4.35 | % | | | 6.31 | % | | | 8.68 | % | | | 11.14 | % | | | 11.76 | % |
Operating expenses | | | 1.30 | %(g) | | | 1.42 | % | | | 1.52 | % | | | 1.50 | % | | | 1.56 | % | | | 2.11 | % |
Portfolio Turnover Rate | | | 36 | %(d) | | | 53 | % | | | 73 | % | | | 93 | % | | | 138 | % | | | 66 | % |
(a) Prior to the close of business on June 12, 2009, the Institutional Class was known as Class Y.
(b) Prior to the close of business on June 12, 2009, the Forward Select Income Fund was known as the Kensington Select Income Fund.
(c) Per share amounts are based upon average shares outstanding.
(d) Not Annualized.
(e) Total return includes an increase from payment by affiliates for net losses realized on investments not meeting investment restrictions. Excluding such item, the total return would have been decreased by 0.38%.
(f) Includes the effects of certain excess investments made by the Fund in the shares of other investment companies in the amount of $(0.02) per share.
(g) Annualized.
| | | | |
| June 30, 2013 | | 72 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Select Income Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | | | Year Ended
December 31,
2009(a) | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 24.43 | | | $ | 22.03 | | | $ | 23.26 | | | $ | 20.13 | | | $ | 13.17 | | | $ | 25.14 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.69 | (b) | | | 0.94 | (b) | | | 1.38 | (b) | | | 1.68 | | | | 1.70 | | | | 2.42 | (b) |
Net realized and unrealized gain/(loss) on investments | | | 0.64 | | | | 3.19 | | | | (0.67 | ) | | | 3.47 | | | | 7.42 | | | | (12.02 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 1.33 | | | | 4.13 | | | | 0.71 | | | | 5.15 | | | | 9.12 | | | | (9.60 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.72 | ) | | | (1.57 | ) | | | (1.94 | ) | | | (2.02 | ) | | | (1.68 | ) | | | (1.70 | ) |
Tax return of capital | | | — | | | | (0.16 | ) | | | — | | | | — | | | | (0.49 | ) | | | (0.71 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.72 | ) | | | (1.73 | ) | | | (1.94 | ) | | | (2.02 | ) | | | (2.17 | ) | | | (2.41 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Redemption Fees Added to Paid in Capital | | | — | | | | — | | | | — | | | | — | | | | 0.01 | | | | 0.04 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.61 | | | | 2.40 | | | | (1.23 | ) | | | 3.13 | | | | 6.96 | | | | (11.97 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 25.04 | | | $ | 24.43 | | | $ | 22.03 | | | $ | 23.26 | | | $ | 20.13 | | | $ | 13.17 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(c) | | | 5.45 | %(d) | | | 19.22 | % | | | 3.09 | % | | | 26.41 | % | | | 74.98 | % | | | (40.49 | )%(e)(f) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 699,268 | | | $ | 754,615 | | | $ | 591,167 | | | $ | 642,665 | | | $ | 442,444 | | | $ | 208,502 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 5.54 | %(g) | | | 4.19 | % | | | 6.33 | % | | | 8.38 | % | | | 11.36 | % | | | 12.28 | % |
Operating expenses | | | 1.59 | %(g) | | | 1.54 | % | | | 1.44 | % | | | 1.44 | % | | | 1.52 | % | | | 1.58 | % |
Ratios to Average Net Assets (including interest expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 5.42 | %(g) | | | 3.95 | % | | | 6.00 | % | | | 8.07 | % | | | 11.07 | % | | | 11.50 | % |
Operating expenses | | | 1.71 | %(g) | | | 1.77 | % | | | 1.77 | % | | | 1.75 | % | | | 1.81 | % | | | 2.36 | % |
Portfolio Turnover Rate | | | 36 | %(d) | | | 53 | % | | | 73 | % | | | 93 | % | | | 138 | % | | | 66 | % |
(a) Prior to the close of business on June 12, 2009, the Forward Select Income Fund was known as the Kensington Select Income Fund.
(b) Per share amounts are based upon average shares outstanding.
(c) Total return does not reflect the effect of sales charges.
(d) Not Annualized.
(e) Total return includes an increase from payment by affiliates for net losses realized on investments not meeting investment restrictions. Excluding such item, the total return would have been decreased by 0.30%.
(f) Includes the effects of certain excess investments made by the Fund in the shares of other investment companies in the amount of $(0.02) per share.
(g) Annualized.
| | | | |
| See Notes to Financial Statements | | 73 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Select Income Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class B | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | | | Year Ended
December 31,
2009(a) | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 24.19 | | | $ | 21.83 | | | $ | 23.06 | | | $ | 19.96 | | | $ | 12.98 | | | $ | 24.86 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.61 | (b) | | | 0.75 | (b) | | | 1.16 | (b) | | | 1.45 | | | | 1.65 | | | | 2.28 | (b) |
Net realized and unrealized gain/(loss) on investments | | | 0.63 | | | | 3.18 | | | | (0.63 | ) | | | 3.50 | | | | 7.19 | | | | (11.90 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 1.24 | | | | 3.93 | | | | 0.53 | | | | 4.95 | | | | 8.84 | | | | (9.62 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.64 | ) | | | (1.42 | ) | | | (1.76 | ) | | | (1.85 | ) | | | (1.44 | ) | | | (1.62 | ) |
Tax return of capital | | | — | | | | (0.15 | ) | | | — | | | | — | | | | (0.43 | ) | | | (0.64 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.64 | ) | | | (1.57 | ) | | | (1.76 | ) | | | (1.85 | ) | | | (1.87 | ) | | | (2.26 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Redemption Fees Added to Paid in Capital | | | — | | | | — | | | | — | | | | — | | | | 0.01 | | | | 0.00 | (c) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.60 | | | | 2.36 | | | | (1.23 | ) | | | 3.10 | | | | 6.98 | | | | (11.88 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 24.79 | | | $ | 24.19 | | | $ | 21.83 | | | $ | 23.06 | | | $ | 19.96 | | | $ | 12.98 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(d) | | | 5.14 | %(e) | | | 18.42 | % | | | 2.31 | % | | | 25.52 | % | | | 73.52 | % | | | (41.01 | )%(f)(g) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 10,203 | | | $ | 11,857 | | | $ | 16,165 | | | $ | 25,445 | | | $ | 29,667 | | | $ | 21,423 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 4.97 | %(h) | | | 3.44 | % | | | 5.42 | % | | | 7.23 | % | | | 10.60 | % | | | 11.53 | % |
Operating expenses | | | 2.17 | %(h) | | | 2.18 | % | | | 2.19 | % | | | 2.19 | % | | | 2.28 | % | | | 2.33 | % |
Ratios to Average Net Assets (including interest expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 4.85 | %(h) | | | 3.20 | % | | | 5.09 | % | | | 6.93 | % | | | 10.31 | % | | | 10.75 | % |
Operating expenses | | | 2.29 | %(h) | | | 2.42 | % | | | 2.52 | % | | | 2.50 | % | | | 2.57 | % | | | 3.11 | % |
Portfolio Turnover Rate | | | 36 | %(e) | | | 53 | % | | | 73 | % | | | 93 | % | | | 138 | % | | | 66 | % |
(a) Prior to the close of business on June 12, 2009, the Forward Select Income Fund was known as the Kensington Select Income Fund.
(b) Per share amounts are based upon average shares outstanding.
(c) Amount represents less than $0.01 per share.
(d) Total return does not reflect the effect of sales charges.
(e) Not Annualized.
(f) Total return includes an increase from payment by affiliates for net losses realized on investments not meeting investment restrictions. Excluding such item, the total return would have been decreased by 0.31%.
(g) Includes the effects of certain excess investments made by the Fund in the shares of other investment companies in the amount of $(0.02) per share.
(h) Annualized.
| | | | |
| June 30, 2013 | | 74 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Select Income Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class C | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | | | Year Ended
December 31,
2009(a) | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 23.99 | | | $ | 21.66 | | | $ | 22.91 | | | $ | 19.86 | | | $ | 12.95 | | | $ | 24.80 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.61 | (b) | | | 0.77 | (b) | | | 1.20 | (b) | | | 1.61 | | | | 1.75 | | | | 2.22 | (b) |
Net realized and unrealized gain/(loss) on investments | | | 0.62 | | | | 3.14 | | | | (0.68 | ) | | | 3.30 | | | | 7.07 | | | | (11.81 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 1.23 | | | | 3.91 | | | | 0.52 | | | | 4.91 | | | | 8.82 | | | | (9.59 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.65 | ) | | | (1.43 | ) | | | (1.77 | ) | | | (1.86 | ) | | | (1.48 | ) | | | (1.62 | ) |
Tax return of capital | | | — | | | | (0.15 | ) | | | — | | | | — | | | | (0.44 | ) | | | (0.64 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.65 | ) | | | (1.58 | ) | | | (1.77 | ) | | | (1.86 | ) | | | (1.92 | ) | | | (2.26 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Redemption Fees Added to Paid in Capital | | | — | | | | — | | | | — | | | | — | | | | 0.01 | | | | 0.00 | (c) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.58 | | | | 2.33 | | | | (1.25 | ) | | | 3.05 | | | | 6.91 | | | | (11.85 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 24.57 | | | $ | 23.99 | | | $ | 21.66 | | | $ | 22.91 | | | $ | 19.86 | | | $ | 12.95 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(d) | | | 5.13 | %(e) | | | 18.47 | % | | | 2.29 | % | | | 25.46 | % | | | 73.60 | % | | | (40.99 | )%(f)(g) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 308,538 | | | $ | 308,131 | | | $ | 262,310 | | | $ | 275,529 | | | $ | 210,227 | | | $ | 102,163 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 5.02 | %(h) | | | 3.53 | % | | | 5.63 | % | | | 7.60 | % | | | 10.65 | % | | | 11.53 | % |
Operating expenses | | | 2.17 | %(h) | | | 2.18 | % | | | 2.19 | % | | | 2.19 | % | | | 2.27 | % | | | 2.33 | % |
Ratios to Average Net Assets (including interest expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 4.90 | %(h) | | | 3.29 | % | | | 5.30 | % | | | 7.29 | % | | | 10.36 | % | | | 10.75 | % |
Operating expenses | | | 2.29 | %(h) | | | 2.42 | % | | | 2.52 | % | | | 2.50 | % | | | 2.56 | % | | | 3.11 | % |
Portfolio Turnover Rate | | | 36 | %(e) | | | 53 | % | | | 73 | % | | | 93 | % | | | 138 | % | | | 66 | % |
(a) Prior to the close of business on June 12, 2009, the Forward Select Income Fund was known as the Kensington Select Income Fund.
(b) Per share amounts are based upon average shares outstanding.
(c) Amount represents less than $0.01 per share.
(d) Total return does not reflect the effect of sales charges.
(e) Not Annualized.
(f) Total return includes an increase from payment by affiliates for net losses realized on investments not meeting investment restrictions. Excluding such item, the total return would have been decreased by 0.31%.
(g) Includes the effects of certain excess investments made by the Fund in the shares of other investment companies in the amount of $(0.02) per share.
(h) Annualized.
| | | | |
| See Notes to Financial Statements | | 75 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Select Income Fund
| | | | | | | | | | | | | | | | |
| | | Advisor Class | |
| | | Six Months Ended
June 30, 2013
(Unaudited)(a) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Period Ended
December 31,
2010(b) | |
Net Asset Value, Beginning of Period | | $ | 24.39 | | | $ | 22.00 | | | $ | 23.24 | | | $ | 20.56 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | |
Net investment income | | | 0.74 | (c) | | | 1.12 | (c) | | | 1.48 | (c) | | | 2.06 | |
Net realized and unrealized gain/(loss) on investments | | | 0.64 | | | | 3.09 | | | | (0.73 | ) | | | 2.69 | |
| | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 1.38 | | | | 4.21 | | | | 0.75 | | | | 4.75 | |
| | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | |
From investment income | | | (0.77 | ) | | | (1.65 | ) | | | (1.99 | ) | | | (2.07 | ) |
Tax return of capital | | | — | | | | (0.17 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total Distributions | | | (0.77 | ) | | | (1.82 | ) | | | (1.99 | ) | | | (2.07 | ) |
| | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.61 | | | | 2.39 | | | | (1.24 | ) | | | 2.68 | |
| | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 25.00 | | | $ | 24.39 | | | $ | 22.00 | | | $ | 23.24 | |
| | | | | | | | | | | | | | | | |
Total Return | | | 5.67 | %(d) | | | 19.62 | % | | | 3.31 | % | | | 23.96 | %(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 11,965 | | | $ | 11,852 | | | $ | 3,160 | | | $ | 2,212 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | | | | | | | | | |
Net investment income | | | 5.94 | %(e) | | | 4.97 | % | | | 6.81 | % | | | 11.92 | %(e) |
Operating expenses | | | 1.21 | %(e) | | | 1.19 | % | | | 1.20 | % | | | 1.23 | %(e) |
Ratios to Average Net Assets (including interest expense): | | | | | | | | | | | | | | | | |
Net investment income | | | 5.82 | %(e) | | | 4.73 | % | | | 6.48 | % | | | 11.62 | %(e) |
Operating expenses | | | 1.33 | %(e) | | | 1.43 | % | | | 1.53 | % | | | 1.53 | %(e) |
Portfolio Turnover Rate | | | 36 | %(d) | | | 53 | % | | | 73 | % | | | 93 | %(f) |
(a) Prior to May 1, 2013, the Forward Select Income Fund Advisor Class was known as the Forward Select Income Fund Class M.
(b) The Fund began offering Advisor Class shares on February 1, 2010.
(c) Per share amounts are based upon average shares outstanding.
(d) Not Annualized.
(e) Annualized.
(f) Portfolio turnover rate is calculated at the Fund level and represents the Year Ended December 31, 2010.
| | | | |
| June 30, 2013 | | 76 | | See Notes to Financial Statements |
Notes to Financial Statements (Unaudited)
1. Organization
Forward Funds (the “Trust”), a Delaware statutory trust, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of June 30, 2013, the Trust has 32 registered funds. This annual report describes 5 funds offered by the Trust (each a “Fund” and collectively, the “Funds”). The accompanying financial statements and financial highlights are those of the Forward Global Infrastructure Fund (“Global Infrastructure Fund”), the Forward International Real Estate Fund (“International Real Estate Fund”), the Forward Real Estate Fund (“Real Estate Fund”), the Forward Real Estate Long/Short Fund (“Real Estate Long/Short Fund”), and the Forward Select Income Fund (“Select Income Fund”).
The Global Infrastructure Fund seeks to achieve total return from both capital appreciation and current income through investing primarily in global infrastructure-related securities issued by companies involved in the construction, development, financing or operation of infrastructure assets. The International Real Estate Fund seeks to achieve total return from both capital appreciation and current income through investing primarily in a portfolio of non-U.S. securities of real estate and real estate-related companies, including real estate investment trusts (“REITs”). The Real Estate Fund seeks income with capital appreciation as a secondary goal through investing primarily in securities of real estate companies, including REITs. The Real Estate Long/Short Fund seeks total return through a combination of high current income relative to equity investment alternatives, plus long-term growth of capital through investing primarily in securities of issuers engaged primarily in the real estate industry such as REITs, master limited partnerships and other real estate firms. The Select Income Fund seeks high current income and potential for modest long-term growth of capital through investing primarily in securities of companies in the real estate industry, such as REITs, master limited partnerships and other real estate firms.
Information presented in the accompanying Funds’ financial statements pertains to the Investor Class, Institutional Class, Class A, Class B, Class C and Advisor Class shares offered by the Trust.
Effective May 1, 2009, the Funds no longer offer for sale Class B shares of the Funds; and shareholders are no longer able to make new or additional investments in Class B shares. As of May 1, 2009, the current holders of Class B shares of the Fund will continue to be permitted to: hold their Class B shares until they are converted to Class A shares; exchange their Class B shares for Class B shares of another Fund; automatically reinvest dividends in Class B shares; and make additional investments in other share classes of the Funds, subject to pricing and eligibility requirements of those other share classes.
All classes of shares have identical rights to earnings, assets and voting privileges, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes.
The International Real Estate Fund, the Real Estate Fund, the Real Estate Long/Short Fund, and the Select Income Fund invest a substantial portion of assets in the securities of issuers engaged in the real estate industry, including REITs. The Global Infrastructure Fund invests a substantial portion of its assets in securities of issuers engaged in the infrastructure industry. As a result, the Funds may be more affected by economic and regulatory developments in these industries than would a fund not concentrating its investments in a particular sector.
2. Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Funds. These policies are in conformity with U.S. generally accepted accounting principles (“GAAP”). The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements during the reporting period. Management believes the estimates and security valuations are appropriate; however, actual results may differ from those estimates, and the security valuations reflected in the financial statements may differ from the value the Funds ultimately realize upon sale of the securities. The financial statements have been prepared as of the close of the New York Stock Exchange (“NYSE”) on June 30, 2013.
Portfolio Valuation: Portfolio securities or contracts that are listed or traded on a national securities exchange, contract market or over-the-counter market and that are freely transferable are valued at the last reported sale price or a market’s official closing price on the valuation day. If there have been no sales that day, such securities or contracts are valued at the average of the last reported bid and ask price on the valuation day for long positions or ask prices for short positions. If no bid or ask prices are quoted before closing, such securities or contracts are valued at either the last available sale price or at fair value in accordance with procedures established by, and under the general supervision of, the Board of Trustees.
Debt securities that have an original maturity date of more than 60 days or that are credit impaired for which market data is readily available, are valued on the basis of the average of the latest bid and ask price. Debt securities that mature in 60 days or less and that are not credit impaired, are valued at amortized cost, which approximates fair value, if their original maturity was 365 days or less, (unless the Board of Trustees determines that this method does not represent fair value).
The Funds’ independent pricing vendors (approved by the Board of Trustees) use multiple valuation techniques to determine fair value. In instances where sufficient market activity exists, the pricing vendors may utilize a market-based approach through which quotes from market makers are used to determine market value. In instances where sufficient market activity may not exist or is limited, the pricing vendors may also utilize proprietary valuation models which may consider market characteristics such as benchmark yield curves, option-adjusted spreads, credit spreads, estimated default rates, coupon rates, anticipated timing of principal
Notes to Financial Statements (Unaudited)
repayments, underlying collateral, and other unique security features in order to estimate the relevant cash flows, which are then discounted to calculate the value.
In the event valuation information is not available from the Funds’ independent pricing vendors for a security held by a Fund, such security may be valued by alternate pricing methods, including the use of quotations obtained from dealers that make markets in such securities, or otherwise determined based on the fair value of such securities. Because long-term bonds and lower-rated bonds tend to be less liquid, their values may be determined based on alternate or fair valuation methods (approved by the Board of Trustees) more frequently than portfolio holdings that are more frequently traded or that have relatively higher credit ratings.
Futures and options on futures contracts that are listed or traded on a national securities exchange, commodities exchange, contract market or comparable over-the-counter market and that are freely transferable are valued at their closing settlement price on the exchange on which they are primarily traded or based upon the current settlement price for a like instrument acquired on the day on which the instrument is being valued. A settlement price may not be used if the market makes a limit move with respect to a particular commodity. Over-the-counter futures and options on futures contracts for which market quotations are readily available are valued based on quotes received from independent pricing vendors or one or more dealers that make markets in such securities. If quotes are not available from an independent pricing vendor or dealers, over-the-counter futures and options on futures contracts are valued using fair valuation methodologies.
Options on securities and options on indices are valued using the last quoted sale price as of the close of the securities or commodities exchange on which they are traded. Certain investments including options may trade in the over-the-counter market and generally are valued based on quotes received from independent pricing vendors or one or more dealers that make markets in such securities.
Portfolio securities that are primarily traded on foreign securities exchanges are generally valued at the last reported trade or closing price of such securities on their respective exchanges, except when an occurrence subsequent to the time a value was so established is likely to have changed such value. In such an event, the fair value of those securities is determined in good faith through consideration of other factors in accordance with procedures established by, and under the general supervision of, the Board of Trustees. Certain Funds will use a fair valuation model provided by independent pricing vendors, which is intended to reflect fair value when a security’s value is believed to have been materially affected by a valuation event that has occurred between the close of the exchange or market on which the security is traded and the close of the regular trading day of the NYSE. The Funds’ valuation procedures set forth certain triggers that instruct when to use the fair valuation model. The value assigned to a security by the fair valuation model is a determination of fair value made under the Funds’ valuation procedures and under the
supervision of the Board of Trustees. In such a case, a Fund’s value for a security may be different from the last sales price (or the latest closing price) and there is no guarantee that a fair valued security will be sold at the price at which a Fund is valuing the security.
Forward currency exchange contracts have a market value determined by the prevailing foreign currency exchange daily rates and current foreign currency exchange forward rates. The foreign currency exchange forward rates are calculated using an automated system that estimates rates on the basis of the current day foreign currency exchange rates and forward foreign currency exchange rates supplied by a pricing vendor. Foreign exchange rates and forward foreign currency exchange rates may generally be obtained at the close of the NYSE, normally 4:00 p.m. Eastern Time.
Redeemable securities issued by open-end registered investment companies are valued at the investment company’s applicable net asset value, with the exception of exchange-traded open-end investment companies, which are priced as equity securities.
All other securities and other assets are carried at their fair value as determined in good faith using methodologies approved by the Board of Trustees. The valuation methodologies include, but are not limited to, the analysis of the effect of any restrictions on the sale of the security, product development and trends of the security’s issuer, changes in the industry and other competing companies, significant changes in the issuer’s financial position and any other event that could have a significant impact on the value of the security.
Securities Transactions and Investment Income: Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales of securities are determined by the identified cost method. Interest income, adjusted for accretion of discounts and amortization of premiums, is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date, except that certain dividends from foreign securities where the ex-dividend date may have passed are recorded as soon as a Fund is informed of such dividends in the exercise of reasonable diligence. If applicable, any foreign capital gains taxes are accrued, net of unrealized gains, and are payable upon the sale of such investments.
Foreign Currency Translation: The books and records of the Funds are maintained in U.S. dollars. Investment valuations and other assets and liabilities initially expressed in foreign currencies are converted each business day into U.S. dollars based upon current exchange rates. Prevailing foreign exchange rates may generally be obtained at the close of the NYSE, normally 4:00 p.m. Eastern Time. The portion of realized and unrealized gains or losses on investments due to fluctuations in foreign currency exchange rates is not separately disclosed.
Exchange-Traded Funds (“ETFs”): Certain Funds may invest in ETFs, which are funds whose shares are traded on a national exchange. ETFs may be based on underlying equity or fixed income securities, as well as commodities or currencies. ETFs do not
Notes to Financial Statements (Unaudited)
sell individual shares directly to investors and only issue their shares in large blocks known as “creation units.” The investor purchasing a creation unit then sells the individual shares on a secondary market. Although similar diversification benefits may be achieved through an investment in another investment company, ETFs generally offer greater liquidity and lower expenses. Because an ETF incurs its own fees and expenses, shareholders of a Fund investing in an ETF will indirectly bear those costs. Such Funds will also incur brokerage commissions and related charges when purchasing or selling shares of an ETF. Unlike typical investment company shares, which are valued once daily, shares in an ETF may be purchased or sold on a securities exchange throughout the trading day at market prices that are generally close to the net asset value of the ETF.
Foreign Securities: Certain Funds may directly purchase securities of foreign issuers. Investing in securities of foreign issuers involves special risks not typically associated with investing in securities of U.S. issuers. The risks include possible revaluation of currencies, the inability to repatriate funds, less complete financial information about companies and possible future adverse political and economic developments. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than those of securities of comparable U.S. issuers.
Master Limited Partnerships (“MLPs”): Each Fund may invest in MLPs, which are limited partnerships in which ownership units are publicly traded. MLPs often own interests in properties or businesses that are related to the oil and gas industries, although MLPs may invest in other types of investments. Generally, an MLP is operated under the supervision of one or more managing general partners. Limited partners (such as a Fund investing in an MLP) are not involved in the day-to-day management of the partnership.
Investments in MLPs are generally subject to many of the risks that apply to partnerships. For example, holders of the units of MLPs may have limited control and limited voting rights on matters affecting the partnership. There may be fewer corporate protections afforded investors in an MLP than investors in a corporation, and conflicts of interest may exist among unit holders and the general partner of an MLP. MLPs that concentrate in a particular industry or region are subject to risk associated with such industry or region. Investments held by MLPs may be illiquid. MLP unit prices may be more volatile than securities of larger or more broadly based companies.
Unlike most corporations, MLPs do not pay income tax but instead pass through their taxable income to unit holders who are required to report their allocable share of an MLP’s taxable income. An MLP’s distribution to unit holders may exceed the unit holder’s share of the MLP’s taxable income, and a portion of the distribution may represent a return of capital. If a Fund invests in an MLP that makes a return of capital, a portion of the Fund’s distribution to shareholders may also represent a return of capital.
Real Estate Investment Trusts: Each Fund invests a substantial portion of its assets in REITs and is subject to certain risks associated with direct investments in REITs. REITs may be affected by changes in the value of their underlying properties and by defaults by borrowers or tenants. REITs depend generally on their ability to generate cash flow to make distributions to shareowners, and certain REITs have self-liquidation provisions by which mortgages held may be paid in full and distributions of capital returns may be made at any time. There is no guarantee that the REITs held by the Funds will continue to pay dividends. In addition, the performance of a REIT may be affected by its failure to qualify for tax-free pass-through of income under the Internal Revenue Code of 1986, as amended (the “Code”), or its failure to maintain exemption from registration under the 1940 Act.
Short Sales: Certain Funds may sell securities short. Short sales are transactions in which a Fund sells a security that it does not own in anticipation of a decline in the market value of that security. To complete such a transaction, a Fund must borrow the security to deliver to the buyer. The Fund is then obligated to replace the security borrowed by purchasing it in the open market at some later date. The Fund bears the risk of a loss if the market price of the security increases between the date of the short sale and the date on which the Fund replaces the borrowed security. The Fund will realize a gain if the security declines in value between those dates. There can be no assurance that securities necessary to cover a short position will be available for purchase. All short sales must be fully collateralized. The Fund maintains collateral consisting of cash, U.S. Government securities or other liquid assets in an amount at least equal to the market value of their respective short positions. The Fund is liable for any dividends or interest payable on securities while those securities are in a short position. The Fund typically intends to hold securities sold short for the short term; therefore, they are excluded from the purchase and sales of investments in Note 8 and the Fund’s Portfolio Turnover Calculation in the Financial Highlights. As of June 30, 2013, the Real Estate Long/Short Fund held securities sold short with a market value of $11,361,225. No other Funds held securities sold short at June 30, 2013.
Fair Value Measurements: A three-tier hierarchy has been established to classify fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability that are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability that are developed based on the best information available.
Various inputs are used in determining the value of each Fund’s investments as of the reporting period end. The designated input levels are not necessarily an
Notes to Financial Statements (Unaudited)
indication of the risk or liquidity associated with these investments. These inputs are categorized in the following hierarchy under applicable financial accounting standards:
Level 1—Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities that a Fund has the ability to access at the measurement date.
Level 2—Quoted prices which are not active, quoted prices for similar assets or liabilities in active markets or inputs other than quoted prices that are observable
(either directly or indirectly) for substantially the full term of the asset or liability. The Board of Trustees has approved independent pricing vendors that calculate fair valuations of international equity securities based on a number of factors that appear to correlate to the movements in the U.S. markets.
Level 3—Significant unobservable prices or inputs (including the Fund’s own assumptions in determining the fair value of investments) where there is little or no market activity for the asset or liability at the measurement date.
The following is a summary of the inputs used to value each Fund’s investments as of June 30, 2013:
| | | | | | | | | | | | | | | | |
| Investments In Securities | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Global Infrastructure Fund | |
Common Stocks(a) | | $ | 176,425,208 | | | | — | | | | — | | | $ | 176,425,208 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 176,425,208 | | | | — | | | | — | | | $ | 176,425,208 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| International Real Estate Fund | |
Common Stocks(a) | | $ | 145,588,351 | | | | — | | | | — | | | $ | 145,588,351 | |
Rights | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 145,588,351 | | | | — | | | | — | | | $ | 145,588,351 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Real Estate Fund | |
Common Stocks(a) | | $ | 50,347,524 | | | | — | | | | — | | | $ | 50,347,524 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 50,347,524 | | | | — | | | | — | | | $ | 50,347,524 | |
| | | | | | | | | | | | | | | | |
| Real Estate Long/Short Fund | |
Common Stocks(a) | | $ | 81,008,130 | | | | — | | | | — | | | $ | 81,008,130 | |
Exchange-Traded Funds | | | 487,390 | | | | — | | | | — | | | | 487,390 | |
Convertible Preferred Stocks(a) | | | 1,353,000 | | | | — | | | | — | | | | 1,353,000 | |
Preferred Stocks(a) | | | 6,662,962 | | | | — | | | | — | | | | 6,662,962 | |
Entitlement Rights | | | — | | | | — | | | | — | | | | — | |
Options Purchased | | | 6,390 | | | | — | | | | — | | | | 6,390 | |
Corporate Bonds(a) | | | — | | | $ | 406,575 | | | | — | | | | 406,575 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 89,517,872 | | | $ | 406,575 | | | | — | | | $ | 89,924,447 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Select Income Fund | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | |
REITs-Residential | | | — | | | $ | 9,550,000 | | | | — | | | $ | 9,550,000 | |
Other(a) | | $ | 539,831,527 | | | | — | | | | — | | | | 539,831,527 | |
Convertible Preferred Stocks(a) | | | 115,837,728 | | | | — | | | | — | | | | 115,837,728 | |
Preferred Stocks(a) | | | 1,035,168,755 | | | | — | | | | — | | | | 1,035,168,755 | |
Options Purchased | | | 228,138 | | | | — | | | | — | | | | 228,138 | |
Corporate Bonds(a) | | | — | | | | 126,294,009 | | | | — | | | | 126,294,009 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 1,691,066,148 | | | $ | 135,844,009 | | | | — | | | $ | 1,826,910,157 | |
| | | | | | | | | | | | | | | | |
(a) For detailed descriptions of industry or country see the accompanying Portfolio of Investments.
Notes to Financial Statements (Unaudited)
| | | | | | | | | | | | | | | | |
| Other Financial Instruments(a) | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Real Estate Long/Short Fund | | | | | | | | | | | | | | | | |
| Liabilities | | | | | | | | | | | | | | | | |
Securities Sold Short | | | | | | | | | | | | | | | | |
Common Stocks | | $ | (8,451,289 | ) | | | — | | | | — | | | $ | (8,451,289 | ) |
Exchange-Traded Funds | | | (2,909,966 | ) | | | — | | | | — | | | | (2,909,966 | ) |
Options Written | | | (94,300 | ) | | | — | | | | — | | | | (94,300 | ) |
| | | | | | | | | | | | | | | | |
Total | | $ | (11,455,555 | ) | | | — | | | | — | | | $ | (11,455,555 | ) |
| | | | | | | | | | | | | | | | |
(a) Other financial instruments are derivative instruments not reflected in the Portfolio of Investments, such as written options and short sales.
The Funds recognize transfers between levels as of the beginning of the annual period in which the transfer occurred. During the six months ended June 30, 2013, the only transfers of securities from Level 2 to Level 1 were for the Global Infrastructure Fund and the International Real Estate Fund due to the Funds’ utilization of a fair valuation model provided by the Funds’ independent pricing vendor at December 31, 2012. The Funds’ valuation procedures set forth certain triggers which instruct when to use the fair valuation model, and the value assigned to a security by the fair valuation model is a determination of fair value made under the Funds’ valuation procedures and under the supervision of the Board of Trustees. During the six months ended June 30, 2013 there were no other transfers between Level 1 and Level 2 securities in any other Fund.
For the six months ended June 30, 2013, the Funds did not have material transfers between the fair value levels designated in the preceding table and unobservable inputs (Level 3) used in determining fair value. Therefore, a reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining fair value is not applicable.
Derivative Instruments and Hedging Activities: The following discloses the Funds’ use of derivative instruments and hedging activities.
The Funds’ investment objectives not only permit the Funds to purchase investment securities but also allow certain Funds to enter into various types of derivative contracts, including, but not limited to, futures contracts, forward foreign currency exchange contracts, and purchased and written option contracts. In doing so, the Funds will employ strategies in differing combinations to permit them to increase, decrease, or change the level or types of exposure to market factors. Central to those strategies are features inherent to derivatives that make them more attractive for this purpose than equity or debt securities: they require little or no initial cash investment, they can focus exposure on only certain selected risk factors, and they may not require the ultimate receipt or delivery of the underlying security (or securities) to the contract. This may allow the Funds to pursue their objectives more quickly and efficiently than if they were to make direct purchases or sales of securities capable of affecting a similar response to market factors.
Market Risk Factors: In pursuit of their investment objectives, certain Funds may seek to use derivatives to increase or decrease their exposure to the following market risk factors:
Equity Risk: Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market.
Foreign Exchange Rate Risk: Foreign exchange rate risk relates to the change in the U.S. dollar value of a security held that is denominated in a foreign currency. The value of a foreign currency denominated security will decrease as the dollar appreciates against the currency, while the value of the foreign currency denominated security will increase as the dollar depreciates against the currency.
Interest Rate Risk: Interest rate risk refers to the fluctuations in value of fixed-income securities resulting from the inverse relationship between price and yield. For example, an increase in general interest rates will tend to reduce the market value of already issued fixed-income investments, and a decline in general interest rates will tend to increase the value of such investments. In addition, debt securities with longer maturities, which tend to have higher yields, are subject to potentially greater fluctuations in value from changes in interest rates than obligations with shorter maturities.
Risk of Investing in Derivatives: The Funds’ use of derivatives can result in losses due to unanticipated changes in the market risk factors and the overall market. In instances where the Funds are using derivatives to decrease or hedge exposures to market risk factors for securities held by the Funds, there are also risks that those derivatives may not perform as expected, resulting in losses for the combined or hedged positions.
Derivatives may have little or no initial cash investment relative to their market value exposure and therefore can produce significant gains or losses in excess of their cost. This use of embedded leverage allows the Funds to increase their market value exposure relative to their net assets and can substantially increase the volatility of the Funds’ performance.
Notes to Financial Statements (Unaudited)
Additional associated risks from investing in derivatives also exist and potentially could have significant effects on the valuation of the derivative and the Funds. Typically, the associated risks are not the risks that the Funds are attempting to increase or decrease exposure to, per their investment objectives, but are the additional risks from investing in derivatives.
Examples of these associated risks are liquidity risk, which is the risk that the Funds will not be able to settle the derivative in the open market in a timely manner, and counterparty credit risk, which is the risk that the counterparty will not fulfill its obligation to the Funds. Associated risks can be different for each type of derivative and are discussed by each derivative type in the notes that follow.
Option Writing/Purchasing: The Funds may write or purchase option contracts to adjust risk and return of their overall investment positions. When a Fund writes or purchases an option, an amount equal to the premium received or paid by the Fund is recorded as a liability or an asset and is subsequently adjusted to the current market value of the option written or purchased. Premiums received or paid from writing or purchasing options that expire unexercised are treated by the Fund on the expiration date as realized gains or losses. The difference between the premium and the amount paid or received on affecting a closing purchase or sale transaction, including brokerage commissions, is also treated as a realized gain or loss. If an option is exercised, the premium paid or received is added to the cost of the purchase or proceeds from the sale in determining whether the Fund has realized a gain or loss on investment transactions. Risks from entering into option transactions arise from the potential inability of counterparties to meet the terms of the contracts, the potential inability to enter into closing transactions because of an illiquid secondary market and unexpected movements in security values. As of June 30, 2013, the Real Estate Long/Short Fund held written options with a market value of $(94,300). As of
June 30, 2013, the Real Estate Long/Short Fund and the Select Income Fund held purchased options with a market value of $6,390 and $228,138, respectively. No other Funds held purchased or written options at June 30, 2013.
Written option activity for the six months ended June 30, 2013 was as follows:
| | | | | | | | |
| | | Written Call Options | |
| | | Number of
Contracts | | | Contract
Premium | |
| Global Infrastructure Fund | | | | | | | | |
Outstanding, at beginning of year December 31, 2012 | | | (1,403 | ) | | $ | (115,390 | ) |
| | | | | | | | |
Options written | | | (700 | ) | | | (127,878 | ) |
Options exercised or closed | | | 700 | | | | 127,878 | |
Options expired | | | 1,403 | | | | 115,390 | |
| | | | | | | | |
Outstanding, June 30, 2013 | | | 0 | | | $ | 0 | |
| | | | | | | | |
| Real Estate Long/Short Fund | | | | | | | | |
Outstanding, at beginning of year December 31, 2012 | | | 0 | | | $ | — | |
| | | | | | | | |
Options written | | | (1,100 | ) | | | (108,219 | ) |
Options exercised or closed | | | 164 | | | | 27,612 | |
Options expired | | | 100 | | | | 17,896 | |
| | | | | | | | |
Outstanding, June 30, 2013 | | | (836 | ) | | $ | (62,711 | ) |
| | | | | | | | |
The values in the tables below exclude the effects of cash collateral received or posted pursuant to these derivative contracts, and therefore are not necessarily representative of the Funds’ net exposure. Cash held as collateral is in a segregated account with the Funds’ custodian and is reflected in the Statement of Assets and Liabilities.
Balance Sheet – Fair Value of Derivatives Instruments as of June 30, 2013 (a):
| | | | | | | | | | | | |
Derivatives not Accounted
for as Hedging Instruments | | Asset Derivatives
Balance Sheet
Location | | Fair Value | | | Liabilities Derivatives
Balance Sheet
Location | | Fair Value | |
| Real Estate Long/Short Fund | | | | | | | | | | | | |
Equity Contracts (Options Written) | | | | | — | | | Options written, at value | | $ | 94,300 | |
| | | | | | | | | | | | |
Total | | | | | — | | | | | $ | 94,300 | |
| | | | | | | | | | | | |
(a) For open derivative instruments as of June 30, 2013, see the Portfolio of Investments. The Portfolio of Investments is representative of the activity for the six months ended June 30, 2013.
Notes to Financial Statements (Unaudited)
The gains/(losses) in the table below are included in the “Net realized gain/(loss)” or “Net change in unrealized gain/(loss)” on the Statement of Operations.
The Effect of Derivatives Instruments on the Statement of Operations for the six months ended June 30, 2013:
| | | | | | | | | | |
Derivatives not Accounted
for as Hedging Instruments | | Location of Gains/(Loss) on
Derivatives Recognized
in Income | | Realized Gain
on Derivatives
Recognized in
Income | | | Change in
Unrealized
Gain/(Loss)
on Derivatives
Recognized in
Income | |
| Global Infrastructure Fund | | | | | | | | | | |
Equity Contracts (Options Written) | | Net realized gain on written option contracts/Net change in unrealized depreciation on written option contracts | | $ | 115,390 | | | $ | (107,375 | ) |
| | | | | | | | | | |
Total | | | | $ | 115,390 | | | $ | (107,375 | ) |
| | | | | | | | | | |
| Real Estate Long/Short Fund | | | | | | | | | | |
Equity Contracts (Options Purchased) | | Net realized gain on investments/Net change in unrealized depreciation on investments | | $ | (246,579 | ) | | $ | (149,264 | ) |
Equity Contracts (Options Written) | | Net realized gain on written option contracts/Net change in unrealized depreciation on written option contracts | | | 19,082 | | | | (31,589 | ) |
| | | | | | | | | | |
Total | | | | $ | (227,497 | ) | | $ | (180,853 | ) |
| | | | | | | | | | |
Certain derivative contracts are executed under either standardized netting agreements or, for exchange-traded derivatives, the relevant contracts for a particular exchange which contain enforceable netting provisions. A derivative netting arrangement creates an enforceable right of set-off that becomes effective, and affects the realization of settlement on individual assets, liabilities and collateral amounts, only following a specified event of default or early termination. Default events may include the failure to make payments or deliver securities timely, material adverse changes in financial condition or insolvency, the breach of minimum regulatory capital requirements, or loss of license, charter or other legal authorization necessary to perform under the contract. There were no derivative financial instruments that are subject to enforceable netting arrangements or other similar agreements as of June 30, 2013.
Warrants: Certain Funds may invest in warrants. A Fund may purchase warrants issued by domestic and foreign companies to purchase newly created equity securities consisting of common and preferred stock. Warrants are securities that give the holder the right, but not the obligation, to purchase equity issues of the company issuing the warrants, or a related company, at a fixed price either on a certain date or during a set period. The equity security underlying a warrant is authorized at the time the warrant is issued or is issued together with the warrant.
Investing in warrants can provide a greater potential for profit or loss than an equivalent investment in the underlying security, and, thus, can be a speculative investment. At the time of issue, the cost of a warrant is substantially less than the cost of the underlying security itself, and price movements in the underlying security are
generally magnified in the price movements of the warrant. This leveraging effect enables the investor to gain exposure to the underlying security with a relatively low capital investment.
This leveraging increases an investor’s risk, as a complete loss of the amount invested in the warrant may result in the event of a decline in the value of the underlying security. In addition, the price of a warrant tends to be more volatile than, and may not correlate exactly to, the price of the underlying security. If the market price of the underlying security is below the exercise price of the warrant on its expiration date, the warrant will generally expire without value. The value of a warrant may decline because of a decline in the value of the underlying security, the passage of time, changes in interest rates or in the dividend or other policies of the company whose equity underlies the warrant, a change in the perception as to the future price of the underlying security, or any combination thereof. Warrants generally pay no dividends and confer no voting or other rights other than to purchase the underlying security. No Funds held warrants as of June 30, 2013.
Cash Management Transactions: The Funds may hold cash balances in bank demand deposit accounts with the Funds’ custodian, Citibank, N.A. (“Citibank”). Such amounts are readily accessible to purchase investments or pay Fund expenses. The Funds consider liquid assets deposited in a bank demand deposit account to be cash equivalents. Cash and cash equivalents are valued at cost plus any accrued interest. The Funds may maintain demand deposit accounts that have an aggregate value in excess of Federal Deposit Insurance Corporation (FDIC) insurance limits. As a result, the Funds may be exposed to credit risk in the event of insolvency or other failure of Citibank to meet its obligations.
Notes to Financial Statements (Unaudited)
Leverage: The Real Estate Long/Short Fund and the Select Income Fund can purchase securities with borrowed money, including bank overdrafts (a form of leverage). Each Fund may borrow amounts up to one-third of the value of its assets. Leverage exaggerates the effect on the net asset value of any increase or decrease in the market value of the Fund’s portfolio securities. These borrowings will be subject to interest costs, which may or may not be recovered by appreciation of the securities purchased. In certain cases, interest costs may exceed the return received on the securities purchased.
The Real Estate Long/Short Fund and the Select Income Fund maintain separate lines of credit with BNP Paribas (acting through its New York Branch). The Funds are charged interest of 1.20% above the one-month LIBOR rate for borrowing under these agreements.
The Real Estate Long/Short Fund and the Select Income Fund also maintain separate lines of credit with Bank of America Merrill Lynch. For borrowings under these agreements, the Real Estate Long/Short Fund and the Select Income Fund are charged a commitment fee on the average daily undrawn balance of the line of credit at the rate of 0.45% per annum and interest on the unpaid principal of the loan from the line of credit at the rate of 1.00% per annum above the one-month LIBOR. If the one-month LIBOR is unavailable, the Real Estate Long/Short Fund and the Select Income Fund are charged interest of 1.50% per annum above the Federal Funds rate.
The Real Estate Long/Short Fund and the Select Income Fund have pledged a portion of their investment securities as the collateral for their lines of credit. As of June 30, 2013, the market value of the investment securities pledged as collateral totaled $29,477,212 and $623,102,614, respectively, and the borrowed amounts on the lines of credit are $13,799,095 and $210,499,442, respectively. The average interest rate charged and the average outstanding demand loan payable for the six months ended June 30, 2013 were as follows:
| | | | | | | | |
| Fund | | Average
Interest Rate | | | Average Outstanding
Demand Loan Payable | |
Real Estate Long/Short Fund | | | 1.358 | % | | $ | 14,335,125 | |
Select Income Fund | | | 1.247 | % | | $ | 157,724,246 | |
Distributions to Shareholders: Dividends from net investment income, if any, are declared and paid semi-annually for the Global Infrastructure Fund and the International Real Estate Fund, and quarterly for the Real Estate Fund, the Real Estate Long/Short Fund and the Select Income Fund. For all Funds, net realized capital gains, if any, are distributed annually. There is no guarantee that the companies held by the Funds will continue paying dividends.
Income and capital gain distributions are determined in accordance with Federal income tax regulations, which may differ from GAAP. Therefore, the source of the Funds’ distributions may be shown in the accompanying financial statements as either from or in excess of net investment income or net realized gain or from paid-in-capital depending upon the type of book/tax differences that may exist.
Based on information provided by the REITs, the Funds recharacterize distributions received from REIT investments based on information provided by the REITs into the following categories: ordinary income, long-term capital gains, and return of capital. If information is not available on a timely basis from the REITs, the recharacterization will be estimated based on available information that may include the previous year’s allocation. If new or additional information becomes available from the REITs at a later date, a recharacterization will be made in the following annual financial reporting period. There is no guarantee that the REITS held by the Funds will continue to pay dividends. The Funds record as dividend income the amount recharacterized as ordinary income and as realized gain the amount recharacterized as long-term capital gain in the Statement of Operations, and the amount recharacterized as a return of capital as a reduction to the cost of investments in the Statement of Assets and Liabilities and in the Portfolio of Investments. These recharacterizations are reflected in the accompanying financial statements.
Federal Income Taxes: The Trust treats each Fund as a separate entity for Federal income tax purposes. Each Fund intends to continue to qualify each year as a “regulated investment company” under Subchapter M of the Code. By so qualifying, each Fund will not be subject to Federal income taxes to the extent that it distributes substantially all of its taxable or tax-exempt income, if any, for its tax year ending December 31. In addition, by distributing in each calendar year substantially all of its net investment income, capital gains and certain other amounts, if any, each Fund will not be subject to a Federal excise tax. Therefore, no provision is made by the Funds for Federal income or excise taxes. Withholding taxes on foreign dividends are paid or provided for in accordance with the applicable country’s tax rules and rates. Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to differing treatment for items such as non-U.S. currency gains and losses, short-term capital gains and losses, capital losses related to wash sales, unrealized appreciation of certain investments in non-U.S. securities, and income on certain investments. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the Funds for financial reporting purposes. The Funds may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
As of and during the six months ended June 30, 2013, and for all open tax years, the Funds did not have a liability for any unrecognized tax benefits in the accompanying financial statements. The Funds recognize the interest and penalties, if any, related to the unrecognized tax benefits as income tax expense in the Statement of Operations. During the period, the Funds did not incur any interest or penalties. Open tax years are those that remain subject to examination and are based on each tax jurisdiction statute of limitation.
Notes to Financial Statements (Unaudited)
Expenses: Expenses that are specific to a Fund or class of shares of a Fund are charged directly to that Fund or share class. Expenses that are common to all Funds generally are allocated among the Funds in proportion to their average daily net assets. For Funds offering multiple share classes, all of the realized and unrealized gains and losses and net investment income, other than class specific expenses, are allocated daily to each class in proportion to its average daily net assets. Fees provided under the distribution (Rule 12b-1) and/or shareholder services plans for a particular class of a Fund are charged to the operations of such class.
ReFlow Transactions: During the period from May 17, 2013 to June 30, 2013, certain Funds participated in ReFlow, a program designed to provide an alternative liquidity source for mutual funds experiencing redemptions of their shares. In order to pay cash to shareholders who redeem their shares on a given day, a mutual fund typically must hold cash in its portfolio, liquidate portfolio securities, or borrow money, all of which impose certain costs on the fund. ReFlow provides participating mutual funds with another source of cash by standing ready to purchase shares from a fund equal
to the amount of the fund’s net redemptions on a given day. ReFlow then generally redeems those shares when the fund experiences net sales. In return for this service, the fund will pay a fee to ReFlow at a rate determined by a daily auction with other participating mutual funds. The costs to a Fund for participating in ReFlow are generally expected to be influenced by and comparable to the cost of other sources of liquidity, such as the Fund’s short-term lending arrangements or the costs of selling portfolio securities to meet redemptions. ReFlow is prohibited from acquiring more than 3% of the outstanding voting securities of any Fund, but in no case will ReFlow’s position in any fund exceed $15 million.
ReFlow Services, LLC (“ReFlow Services”), the entity which facilitates the day-to-day operations of ReFlow, is under common control with Forward Management, the investment advisor to the Funds (the “Advisor” or “Forward Management”). In light of this, the Board of Trustees has adopted certain procedures to govern the Funds’ participation in ReFlow. ReFlow fees that were incurred by the Funds during the period ended June 30, 2013 are recorded in the Statement of Operations.
3. Investment Management Services
The Trust has entered into an investment management agreement with Forward Management pursuant to which Forward Management provides investment management services to the Funds and is entitled to receive a fee calculated daily and payable monthly at the following annual rates, as of June 30, 2013, based on each Fund’s average daily net assets:
| | |
| Fund | | Advisory Fee |
Global Infrastructure Fund | | 0.90% |
| |
International Real Estate Fund | | 1.00% |
| |
Real Estate Fund | | 0.85% up to and including $100 million 0.80% over $100 million up to and including $500 million 0.70% over $500 million |
| |
Real Estate Long/Short Fund | | 1.00% |
| |
Select Income Fund | | 1.00% |
Expense Limitations: Forward Management has entered into Expense Limitation Agreements with certain Funds, which limits the total expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired fund fees and expenses, and extraordinary expenses) of certain classes of certain Funds, through a specified date. In addition, Forward Management may voluntarily reimburse additional expenses of certain classes of certain Funds. Following is the annual expense limitation rate and expiration date for the Fund with an Expense Limitation Agreement:
| | | | | | | | | | | | | | | | | | | | | | | | |
| Fund | | Investor
Class | | | Institutional
Class | | | Class A | | | Class C | | | Advisor
Class | | | End Date | |
International Real Estate Fund (a) | | | 1.80 | % | | | 1.45 | % | | | 1.85 | % | | | 2.40 | % | | | 1.50 | % | | | April 30, 2014 | |
(a) From January 1, 2013 to April 30, 2013, Forward Management had a contractual obligation to waive any portion of its fees in amounts necessary to limit the International Real Estate Fund’s Institutional Class, Class A and Advisor Class shares’ operating expenses to an annual rate of 1.40%, 1.80% and 1.40%, respectively.
Pursuant to the Expense Limitation Agreements, each Fund will reimburse Forward Management for any fee waivers and expense reimbursements made by Forward Management, provided that any such reimbursements made by a Fund to Forward Management will not cause the Fund’s expense limitation to exceed expense limitation rates in existence at the time the expense was incurred or at the time of the reimbursement, whichever expense limitation rate is lower, and the reimbursement is made within three years following the year in which the expenses were incurred.
Notes to Financial Statements (Unaudited)
For the six months ended June 30, 2013, the fee waivers and/or reimbursements were as follows:
| | | | | | | | | | | | |
| Fund | | Fees Waived/
Reimbursed
by Advisor | | | Recoupment of
Past waived
Fees by Advisor | | | Total | |
| Global Infrastructure Fund | | | | | | | | | | | | |
Investor Class | | | 0 | | | | 0 | | | | 0 | |
Institutional Class | | | 0 | | | $ | (3,505 | ) | | $ | (3,505 | ) |
Class A | | | 0 | | | | 0 | | | | 0 | |
Class B | | | 0 | | | | (83 | ) | | | (83 | ) |
Class C | | | 0 | | | | (440 | ) | | | (440 | ) |
Advisor Class | | | 0 | | | | (32 | ) | | | (32 | ) |
| International Real Estate Fund | | | | | | | | | | | | |
Investor Class | | $ | 1,527 | | | | (368 | ) | | | 1,159 | |
Institutional Class | | | 16,059 | | | | (3,557 | ) | | | 12,502 | |
Class A | | | 8,728 | | | | (2,443 | ) | | | 6,285 | �� |
Class C | | | 3,208 | | | | (704 | ) | | | 2,504 | |
Advisor Class | | | 827 | | | | (398 | ) | | | 429 | |
As of June 30, 2013, the balances of recoupable expenses for each Fund were as follows:
| | | | | | | | | | | | | | | | | | | | |
| Fund | | 2010 | | | 2011 | | | 2012 | | | 2013 | | | TOTAL | |
| Global Infrastructure Fund | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | N/A | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | |
Institutional Class | | $ | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | |
Class A | | | 5,854 | | | | 1,092 | | | | 0 | | | | 0 | | | | 6,946 | |
Class B | | | 247 | | | | 66 | | | | 0 | | | | 0 | | | | 313 | |
Class C | | | 902 | | | | 278 | | | | 0 | | | | 0 | | | | 1,180 | |
Advisor Class | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | |
| International Real Estate Fund | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | N/A | | | | 0 | | | | 635 | | | | 1,527 | | | | 2,162 | |
Institutional Class | | | 7,491 | | | | 13,325 | | | | 7,899 | | | | 16,059 | | | | 44,774 | |
Class A | | | 118,453 | | | | 92,769 | | | | 20,945 | | | | 8,728 | | | | 240,895 | |
Class C | | | 39,161 | | | | 35,282 | | | | 7,702 | | | | 3,208 | | | | 85,353 | |
Advisor Class | | | N/A | | | | 0 | | | | 335 | | | | 827 | | | | 1,162 | |
| Real Estate Fund | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | 63,712 | | | | 8,810 | | | | 0 | | | | 0 | | | | 72,522 | |
Institutional Class | | | 1,677 | | | | 231 | | | | 0 | | | | 0 | | | | 1,908 | |
Class A | | | 22,792 | | | | 2,724 | | | | 0 | | | | 0 | | | | 25,516 | |
Class C | | | 7,171 | | | | 842 | | | | 0 | | | | 0 | | | | 8,013 | |
4. Distribution and Shareholder Services Plans
The Funds have adopted Distribution Plans (the “Distribution Plans”) pursuant to Rule 12b-1 of the 1940 Act which allow each of the Funds to pay for the sale and distribution of its shares at an annual rate of up to 0.25% of the Fund’s average daily net assets attributable to Investor Class shares, up to 0.35% of the Fund’s average daily net assets attributable to Class A shares, and up to 0.75% of the Fund’s average daily net assets attributable to Class B and Class C shares.
The Funds have adopted a Shareholder Services Plan (the “Shareholder Services Plan”) that may be used to pay shareholder servicing fees at an annual rate of up to
0.15% of the Fund’s average daily net assets attributable to Investor Class shares, up to 0.05% of the Fund’s average daily net assets attributable to Institutional Class shares, up to 0.20% of the Fund’s average daily net assets attributable to Class A shares, up to 0.25% of the Fund’s average daily net assets attributable to Class B and Class C shares, and up to 0.10% of the Fund’s average daily net assets attributable to Advisor Class shares.
The expenses of the Distribution Plans and the Shareholder Services Plan are reflected as distribution and service fees in the Statement of Operations.
Notes to Financial Statements (Unaudited)
Distributor, Administrator, Transfer Agent & Custodian
Forward Securities, LLC (the “Distributor”) serves as the Funds’ distributor. The Distributor acts as an agent for the Funds and the distributor of their shares.
ALPS Fund Services, Inc. (“AFS”) serves as the Funds’ administrator, transfer agent and dividend paying agent.
Citibank is the Funds’ custodian.
5. Trustee and Officer Fees
The Funds do not pay any compensation directly to the officers or trustees who are also trustees, officers or employees of Forward Management or its affiliates, except as noted below. As of June 30, 2013, there were seven Trustees, six of whom are not “interested persons” of the Trust within the meaning of that term under the 1940 Act (each, an “Independent Trustee”). The Funds pay each Independent Trustee a retainer fee in the amount of $35,000 per year, $12,500 each per regular meeting for attendance in person, $9,000 each per regular meeting for attendance by telephone, $3,000 each for attendance in person at each special meeting that is not held in conjunction with a regular meeting, $2,250 each for attendance at a special telephonic meeting, and $1,000 each per day for participation in Trust-related meetings not held in conjunction with a meeting. The Chairman of the Board of Trustees, the Chairman of the Audit Committee and the Chairman of the Nominating Committee each receive a special retainer fee in the amount of $10,000, $10,000 and $7,500, respectively per year. The interested Trustee receives no compensation from the Funds. In addition, Independent Trustees receive reimbursements for reasonable out-of-pocket expenses incurred for their services as a Trustee.
The Funds’ Chief Compliance Officer is employed by Forward Management. The Funds pay an allocated portion of the Chief Compliance Officer’s compensation and other related expenses, subject to approval by the Board of Trustees.
6. Indemnifications
Under the Trust’s organizational documents, its officers and Trustees are indemnified against certain liability arising out of the performance of their duties with respect to the Funds. In addition, in the normal course of business, the Trust, on behalf of the Funds, enters into contracts with vendors and others that provide general indemnification. Each Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust and/or the Funds. Based on experience, however, the Funds expect the risk of loss to be remote.
7. Shares of Beneficial Interest
The capitalization of the Trust consists of an unlimited number of shares of beneficial interest with no par value per share. The Board of Trustees may establish additional Funds and classes of shares at any time in the future without shareholder approval. Holders of shares of the Funds of the Trust have one vote for each share held and a proportionate fraction of a vote for each fractional share. All shares issued and outstanding are fully paid and are non-assessable, transferable and redeemable at the option of the shareholder. Shares have no pre-emptive rights.
The following entities owned of record or beneficially, as of June 30, 2013, 5% or greater of any class of the Funds’ outstanding equity securities:
| | | | | | |
Global Infrastructure Fund | | | | |
Investor Class | | Genworth Financial Trust | | | 75.57 | % |
| | Pershing LLC | | | 13.74 | % |
| | TD Ameritrade, Inc. | | | 6.74 | % |
| | |
Institutional Class | | LPL Financial Services | | | 57.97 | % |
| | Pershing LLC | | | 14.57 | % |
| | National Financial Services Corp. | | | 10.14 | % |
| | |
Class A | | Pershing LLC | | | 27.80 | % |
| | National Financial Services Corp. | | | 18.47 | % |
| | LPL Financial Services | | | 16.39 | % |
| | Charles Schwab & Co., Inc. | | | 12.86 | % |
| | Wells Fargo Investments, LLC | | | 7.78 | % |
| | |
Class B | | Pershing LLC | | | 31.69 | % |
| | Morgan Stanley | | | 16.69 | % |
| | National Financial Services Corp. | | | 13.93 | % |
| | LPL Financial Services | | | 9.25 | % |
| | Wells Fargo Investments, LLC | | | 5.52 | % |
| | | | | | |
Global Infrastructure Fund (continued) | | | | |
Class C | | Pershing LLC | | | 32.50 | % |
| | LPL Financial Services | | | 14.71 | % |
| | National Financial Services Corp. | | | 7.46 | % |
| | Wells Fargo Investments, LLC | | | 6.69 | % |
| | |
Advisor Class | | Charles Schwab & Co., Inc. | | | 57.87 | % |
| | Forward Management, LLC | | | 15.84 | % |
| | Wells Fargo Investments, LLC | | | 14.11 | % |
| | National Financial Services Corp. | | | 10.58 | % |
| |
| International Real Estate Fund | | | | |
Investor Class | | National Financial Services Corp. | | | 19.38 | % |
| | Charles Schwab & Co., Inc. | | | 17.19 | % |
| | Pershing LLC | | | 10.62 | % |
| | TD Ameritrade, Inc. | | | 6.42 | % |
| | |
Institutional Class | | National Financial Services Corp. | | | 78.49 | % |
| | Charles Schwab & Co., Inc. | | | 6.40 | % |
Notes to Financial Statements (Unaudited)
| | | | | | |
| International Real Estate Fund (continued) | | | | |
Class A | | Pershing LLC | | | 33.45 | % |
| | National Financial Services Corp. | | | 15.16 | % |
| | Charles Schwab & Co., Inc. | | | 9.18 | % |
| | LPL Financial Services | | | 8.25 | % |
| | |
Class C | | Pershing LLC | | | 24.42 | % |
| | National Financial Services Corp. | | | 14.40 | % |
| | LPL Financial Services | | | 11.32 | % |
| | Wells Fargo Investments, LLC | | | 6.06 | % |
| | |
Advisor Class | | Merrill Lynch Pierce Fenner & Smith | | | 48.34 | % |
| | Wells Fargo Investments, LLC | | | 30.08 | % |
| | Pershing LLC | | | 17.21 | % |
| |
| Real Estate Fund | | | | |
Investor Class | | Charles Schwab & Co., Inc. | | | 49.02 | % |
| | Genworth Financial Trust | | | 18.23 | % |
| | National Financial Services Corp. | | | 14.09 | % |
| | Pershing LLC | | | 8.42 | % |
| | |
Institutional Class | | Gerlach & Co., LLC | | | 31.80 | % |
| | LPL Financial Services | | | 29.37 | % |
| | Northern Trust Company | | | 13.58 | % |
| | Pershing LLC | | | 11.85 | % |
| | Genworth Financial Trust | | | 8.81 | % |
| | |
Class A | | Pershing LLC | | | 21.88 | % |
| | LPL Financial Services | | | 17.85 | % |
| | National Financial Services Corp. | | | 9.11 | % |
| | |
Class C | | Pershing LLC | | | 24.42 | % |
| | National Financial Services Corp. | | | 14.91 | % |
| | LPL Financial Services | | | 7.46 | % |
| | Morgan Stanley | | | 6.40 | % |
| | Investment Architects, Inc | | | 5.99 | % |
| |
| Real Estate Long/Short Fund | | | | |
Investor Class | | National Financial Services Corp. | | | 34.67 | % |
| | Charles Schwab & Co., Inc. | | | 11.56 | % |
| | |
Institutional Class | | Charles Schwab & Co., Inc. | | | 40.67 | % |
| | Pershing LLC | | | 38.97 | % |
| | Brown Brothers Harriman & Co. | | | 8.02 | % |
| | Gerlach & Co., LLC | | | 7.57 | % |
| | | | | | |
| Real Estate Long/Short Fund (continued) | | | | |
Class A | | Pershing LLC | | | 23.87 | % |
| | National Financial Services Corp. | | | 14.85 | % |
| | LPL Financial Services | | | 7.98 | % |
| | |
Class B | | Pershing LLC | | | 21.67 | % |
| | H. Beck, Inc (Broker Dealer) | | | 8.43 | % |
| | Stifel Nicolaus & Co. | | | 5.12 | % |
| | |
Class C | | Pershing LLC | | | 20.18 | % |
| | LPL Financial Services | | | 14.55 | % |
| | National Financial Services Corp. | | | 7.78 | % |
| | |
Advisor Class | | Wells Fargo Investments, LLC | | | 51.42 | % |
| | LPL Financial Services | | | 45.36 | % |
| |
| Select Income Fund | | | | |
Investor Class | | Genworth Financial Trust | | | 82.19 | % |
| | Pershing LLC | | | 12.36 | % |
| | |
Institutional Class | | Charles Schwab & Co., Inc. | | | 40.92 | % |
| | National Financial Services Corp. | | | 19.81 | % |
| | Pershing LLC | | | 15.63 | % |
| | LPL Financial Services | | | 8.19 | % |
| | |
Class A | | National Financial Services Corp. | | | 27.19 | % |
| | Pershing LLC | | | 25.82 | % |
| | Charles Schwab & Co., Inc. | | | 9.06 | % |
| | LPL Financial Services | | | 8.53 | % |
| | |
Class B | | Pershing LLC | | | 34.73 | % |
| | National Financial Services Corp. | | | 20.46 | % |
| | LPL Financial Services | | | 7.14 | % |
| | Stifel Nicolaus & Co. | | | 5.21 | % |
| | |
Class C | | Pershing LLC | | | 33.93 | % |
| | National Financial Services Corp. | | | 14.40 | % |
| | LPL Financial Services | | | 10.98 | % |
| | |
Advisor Class | | Wells Fargo Investments, LLC | | | 65.32 | % |
| | Merrill Lynch Pierce Fenner & Smith | | | 18.68 | % |
| | Pershing LLC | | | 8.36 | % |
| | Charles Schwab & Co., Inc. | | | 6.73 | % |
Notes to Financial Statements (Unaudited)
8. Purchases and Sales of Investments
Investment transactions for the six months ended June 30, 2013, excluding U.S. Government Obligations, short-term investments and short sales, were as follows:
| | | | | | | | |
| Fund | | Cost of
Investments
Purchased | | | Proceeds from
Investments
Sold | |
Global Infrastructure Fund | | $ | 113,909,385 | | | $ | 75,439,987 | |
International Real Estate Fund | | | 198,424,058 | | | | 203,784,171 | |
Real Estate Fund | | | 28,116,362 | | | | 14,956,780 | |
Real Estate Long/Short Fund | | | 40,454,080 | | | | 42,180,718 | |
Select Income Fund | | | 692,827,259 | | | | 853,751,791 | |
9. Tax Basis Information
Tax Basis of Investments: As of June 30, 2013, the aggregate cost of investments, gross unrealized appreciation/(depreciation) and net unrealized appreciation/(depreciation) for Federal tax purposes was as follows:
| | | | | | | | | | | | | | | | |
| Fund | | Cost of
Investments | | | Gross
Unrealized
Appreciation | | | Gross
Unrealized
Depreciation | | | Net Unrealized
Appreciation/
(Depreciation) | |
Global Infrastructure Fund | | $ | 174,204,113 | | | $ | 16,738,352 | | | $ | (14,517,257 | ) | | $ | 2,221,095 | |
International Real Estate Fund | | | 152,811,970 | | | | 7,002,016 | | | | (14,225,635 | ) | | | (7,223,619 | ) |
Real Estate Fund | | | 39,645,016 | | | | 11,208,326 | | | | (505,818 | ) | | | 10,702,508 | |
Real Estate Long/Short Fund | | | 73,587,698 | | | | 16,665,911 | | | | (329,162 | ) | | | 16,336,749 | |
Select Income Fund | | | 1,612,149,656 | | | | 214,760,501 | | | | 0 | | | | 214,760,501 | |
Capital Losses: As of December 31, 2012, the following Funds had available for Federal income tax purposes unused capital losses as follows:
Pre-Enactment Capital Losses
| | | | | | | | | | | | | | | | |
| Fund | | Expiring In
2015 | | | Expiring In
2016 | | | Expiring In
2017 | | | Expiring In
2018 | |
Global Infrastructure Fund | | | — | | | $ | 13,429,247 | | | $ | 30,182,432 | | | $ | 24,061,967 | |
International Real Estate Fund(a) | | $ | 2,652,205 | | | | 67,712,152 | | | | 60,639,639 | | | | 3,986,802 | |
Real Estate Fund(a) | | | — | | | | 2,246,666 | | | | — | | | | — | |
Real Estate Long/Short Fund | | | — | | | | 69,118,669 | | | | 107,182,629 | | | | — | |
Select Income Fund | | | — | | | | 63,095,326 | | | | 29,414,885 | | | | — | |
(a) Subject to limitations under §382 of the Code.
Capital loss carryovers used during the period ended December 31, 2012, were:
| | | | |
| Fund | | Amount | |
Global Infrastructure Fund | | $ | 4,012,479 | |
Real Estate Fund | | | 3,436,351 | |
Real Estate Long/Short Fund | | | 7,217,895 | |
Select Income Fund | | | 44,702,268 | |
On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (“the Act”) was enacted. Certain of the enacted provisions include:
Post enactment losses may now be carried forward indefinitely, but must retain the character of the original loss. However, such losses must be utilized prior to the pre-enactment capital loss, which increases the likelihood that the pre-enactment capital losses will expire unused. Under the pre-enactment law, capital losses could be carried forward for eight years and carried forward as short-term capital losses irrespective of the character of the original loss. The Act contains simplification provisions, which are aimed at preventing disqualification of a Regulated Investment Company (“RIC”) for “inadvertent” failures of the asset diversification and/or qualifying income tests. Additionally, the Act exempts RICs from the preferential dividend rule and repeals the 60-day designation requirement for certain types of pay-through income and gains.
Notes to Financial Statements (Unaudited)
Finally, the Act contains several provisions aimed at preserving the character of distributions made by a fiscal year RIC during the portion of its taxable year ending after October 31 or December 31, reducing the circumstances under which a RIC might be required to file amended Forms 1099 to restate previously reported distributions.
The Funds have adopted the noted provisions of the Act for the period ending June 30, 2013.
Post-Enactment Capital Losses*
Capital losses deferred to the next tax year were as follows:
| | | | | | | | | | | | |
| Fund | | Short-Term | | | Long-Term | | | | | |
International Real Estate Fund | | | — | | | $ | 785,729 | | | | | |
The Funds elect to defer to the period ending December 31, 2013, capital losses recognized during the period November 1, 2012 to December 31, 2012 in the amount of:
| | | | | | | | | | | | |
| Fund | | Amount | | | | | | | | | |
Select Income Fund | | $ | 37,381 | | | | | | | | | |
The Funds elect to defer to the period ending December 31, 2013, late year ordinary losses recognized during the period November 1, 2012 to December 31, 2012 in the amount of:
| | | | | | | | | | | | |
| Fund | | Amount | | | | | | | | | |
Global Infrastructure Fund | | $ | 280 | | | | | | | | | |
*Post-Enactment Capital Losses arise in fiscal years beginning after December 22, 2010, and exclude any elective late-year capital losses (during the period November 1st to December 31st) deferred for the current fiscal year. As a result of the enactment of the Act, pre-enactment capital loss carry forwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term losses rather than being considered all short-term as under previous law.
Tax Basis of Distributions to Shareholders: Income and long-term capital gain distributions are determined in accordance with Federal income tax regulations, which may differ from GAAP. The amounts and characteristics of tax basis distributions and composition of distributable earnings/(accumulated losses) are finalized at fiscal yearend. Accordingly, tax basis balances have not been determined as of June 30, 2013.
The tax character of distributions paid for the year ended December 31, 2012 were as follows:
| | | | | | | | | | | | | | | | |
| Fund | | Ordinary
Income Total | | | Long-Term
Capital Total | | | Foreign Taxes
Passed Through
Total | | | Return of
Capital Total | |
Global Infrastructure Fund | | $ | 2,050,584 | | | | — | | | $ | 218,948 | | | | — | |
International Real Estate Fund | | | 8,974,157 | | | | — | | | | 164,943 | | | | — | |
Real Estate Fund | | | 279,688 | | | | — | | | | — | | | | — | |
Real Estate Long/Short Fund | | | 1,449,695 | | | | — | | | | — | | | | — | |
Select Income Fund | | | 107,608,118 | | | | — | | | | — | | | $ | 11,259,717 | |
Notes to Financial Statements (Unaudited)
The Funds may own shares in certain foreign investment entities referred to under U.S. tax law, as “passive foreign investment companies” (PFICs). The Funds may elect to mark-to-market annually the shares of each PFIC and may be required to include in distributable income to shareholders any such mark-to-market gains.
10. Portfolio of Investments
The investment categories used in this report may differ from the industry classification categories used for determining compliance with industry concentration restrictions and requirements applicable to each of the Funds.
11. Subsequent Events
The Funds have evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date the financial statements were issued. Based on this evaluation, no adjustments were required to the financial statements as of June 30, 2013. However, the following are details relating to the subsequent events through the date the financial statements were issued.
The Funds file a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Form N-Q was filed for the quarter ended March 31, 2013. The Funds’ Form N-Q is available on the SEC’s website at www.sec.gov and may also be reviewed and copied at the Commission’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
A description of the Funds’ proxy voting policies and procedures and how the Funds voted proxies relating to portfolio securities during the most recent 12 month period ended June 30, 2013 are available (i) without charge, upon request, by calling 1-800-999-6809 and (ii) on the Securities and Exchange Commission’s website at www.sec.gov.
Investment Advisor
Forward Management, LLC
Administrator
ALPS Fund Services, Inc.
Distributor
Forward Securities, LLC
Counsel
Dechert LLP
Independent Registered Public Accounting Firm
PricewaterhouseCoopers LLP
Custodian
Citibank, N.A.
Transfer Agent
ALPS Fund Services, Inc.
Forward Funds
P.O. Box 1345
Denver, CO 80201
(800) 999-6809
www.forwardinvesting.com
Forward Commodity Long/Short Strategy Fund
Forward Credit Analysis Long/Short Fund
Forward EM Corporate Debt Fund
Forward Emerging Markets Fund
Forward Endurance Long/Short Fund
Forward Frontier Strategy Fund
Forward Global Credit Long/Short Fund
Forward Global Dividend Fund
Forward Global Infrastructure Fund
Forward High Yield Bond Fund
Forward International Dividend Fund
Forward International Real Estate Fund
Forward International Small Companies Fund
Forward Investment Grade Fixed-Income Fund
Forward Managed Futures Strategy Fund
Forward Real Estate Fund
Forward Real Estate Long/Short Fund
Forward Select EM Dividend Fund
Forward Select Income Fund
Forward Small Cap Equity Fund
Forward Tactical Enhanced Fund
Forward Tactical Growth Fund
Forward Total MarketPlus Fund
Forward U.S. Government Money Fund
Allocation Funds
Forward Balanced Allocation Fund
Forward Growth & Income Allocation Fund
Forward Growth Allocation Fund
Forward Income & Growth Allocation Fund
Forward Income Builder Fund
Forward Multi-Strategy Fund
| | | | |
| Printed on paper containing recycled content using soy-based inks. | | | SAR FSD000218 083114 | |
| | | | |
 | | | | Semi-Annual Report June 30, 2013 |
| | | | Forward Frontier Strategy Fund Forward High Yield Bond Fund Forward Investment Grade Fixed-Income Fund Forward Total MarketPlus Fund Forward U.S. Government Money Fund Forward Balanced Allocation Fund Forward Growth & Income Allocation Fund Forward Growth Allocation Fund Forward Income & Growth Allocation Fund Forward Income Builder Fund Forward Multi-Strategy Fund |
| | |
FORWARD FUNDS: | | Table of Contents |
Forward Funds are distributed by Forward Securities, LLC
101 California Street, 16th Floor, San Francisco, California 94111
The report has been prepared for the general information of Forward Funds’ shareholders. It is not authorized for distribution to prospective investors unless accompanied or proceeded by a current Forward Funds’ Prospectus, which contains more complete information about Forward Funds’ investment policies, management fees and expenses. Investors are reminded to read the Prospectus before investing or sending money.
June 30, 2013
| | |
| Shareholder Update | | June 30, 2013 |
| | |
A MESSAGE FROM: | | J. Alan Reid, Jr. Chief Executive Officer |
Dear Shareholder:
With today’s low yields, shifting interest rates and mixed global economic outlook, it’s a challenging time to be a long-term investor. We believe that investors who want to get ahead need to look beyond conventional broad market strategies and seek ways to build resilience into their portfolios.
If anything, the last five years have shown us that we cannot put all of our eggs in one basket. At Forward, we realize that we have to change and adapt with the markets to continue to help our clients build diversified portfolios. That means offering funds like our Forward Commodity Long/Short Strategy Fund that have had negative correlation to other asset classes1, or strategies that seek to provide income and growth, like Forward Income Builder Fund which offers asset class diversification in one fund. Or our two newest funds that launch on July 31 and focus on providing investors new income alternatives—Forward Dynamic Income Fund and Forward Select Income Opportunity Fund.
Forward will continue to research new ideas to identify solutions to help advisors and investors advance toward their financial goals. And our focus will remain on outcome-oriented, problem-solving strategies that seek to help our clients find alpha, diversify portfolios with low-correlation strategies, provide income and hedge against risks.
Unique income sources
In May 2012 we introduced Forward Income Builder Fund, an income strategy built for today’s low yield environment. The fund is an actively managed portfolio and invests across our diverse mix of traditional, alternative and global income-producing strategies, including our dividend strategies, international real estate, global infrastructure, high yield and emerging market (EM) corporate debt. As of June 30, the fund had a current yield of 5.15% and a 30-day SEC yield of 4.98%2.
Our Select Income Fund, which focuses on preferred real estate securities, also targets stable, reliable income. The fund delivered a 6.69% current yield and a 30-day SEC yield of 5.73% as of June 30.
Strategic access to overseas markets
After a long run of strong performance, EM index funds and exchange-traded funds dropped sharply in the first half of the year and as a result many investors have taken their EM exposure to a 12-year low3. In our view, a passive, broad-brush approach to EMs misses many opportunities to deliver low-correlation returns. Forward Emerging Markets Fund, Forward Select EM Dividend Fund and Forward EM Corporate Debt Fund are active strategies that seek to find opportunities away from the indices and take advantage of favorable valuations.
Meanwhile, many investors are paying attention to the frontier markets, which have performed strongly this year. Forward Frontier Strategy Fund provides exposure to these fast-growing markets and the fund’s Investor Class shares returned 9.29% in the first half of the year.
With our array of global and EM strategies, we remain strong believers in the growth and diversification potential of global strategies.
Tactical solutions
While the strong rally of the S&P 500 Index in the first half of the year buoyed stock portfolios, recent spikes in volatility and the phasing out of government stimulus programs have many wondering about downside risks. Forward’s two tactical equity strategies, Tactical Growth Fund and Tactical Enhanced Fund, seek to provide a backstop against market downturns by actively managing long and short market exposure.
Similarly, our Commodity Long/Short Strategy Fund and Managed Futures Strategy Fund systematically shift exposure to those markets as they move. Both funds help address inflation concerns with the Commodity Long/Short Strategy Fund’s Institutional Class shares returning 9.98% as of June 30.
| 1 | Morningstar, 12/31/10 – 06/30/13 |
| 2 | The performance quoted represents past performance, does not guarantee future results and current performance may be lower or higher than the data quoted. The investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance data current to the most recent month-end may be obtained at www.forwardinvesting.com. Investment performance may reflect fee waivers in effect. In the absence of fee waivers, total return would be lower. Total return is based on NAV, assuming reinvestment of all distributions. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. |
| 3 | Reuters, “Investors cut emerging market exposure to near 12-year low – poll,” July 16, 2013. |
The role of hard assets
Investors often look to real estate as an asset whose value endures through the markets’ ups and downs. Forward Real Estate Long/Short Fund is a value-focused, long/short strategy that distills the portfolio team’s best ideas with the goal of enhancing total return. Year to date, the fund’s Class A shares have returned 7.02%.
We hope that as you think about your investment challenges, you continue to look to Forward for new thinking and strategies designed to help meet your goals for returns, income, global exposure and portfolio diversification. We also invite you to explore www.forwardinvesting.com/fwd-thinking, where we regularly post our latest research publications and webcasts on timely investment topics. Our recent white paper, The 5% Problem: Double Jeopardy for Traditional Bond Investors, addresses some of the key issues facing investors today in the current market environment.
The team at Forward thanks you for your continued confidence and trust in us. We never forget that helping investors achieve their investment goals is what our business is really about, and we are privileged to be your partners in that effort.
Sincerely,
J. Alan Reid, Jr.
Chief Executive Officer
Forward
RISKS
There are risks involved with investing, including loss of principal. Past performance does not guarantee future results, share prices will fluctuate and you may have a gain or loss when you redeem shares.
Each allocation fund is a fund of funds, which invest in a mix of underlying Forward Funds. Shareholders of an allocation fund indirectly bear the expenses of the underlying funds. An allocation fund’s allocations may be changed at any time. Asset allocation does not assure profit or protect against risk. (Forward Income Builder Fund)
Borrowing for investment purposes creates leverage, which can increase the risk and volatility of a fund. (Forward Dynamic Income Fund, Forward EM Corporate Debt Fund, Forward Income Builder Fund, Forward Real Estate Long/Short Fund, Forward Select EM Dividend Fund, Forward Select Income Fund, Forward Select Income Opportunity Fund, Forward Tactical Enhanced Fund, Forward Tactical Growth Fund)
Exposure to the commodities markets may subject a fund to greater volatility than investing in traditional securities. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as natural disasters and international economic, political and regulatory developments. (Forward Commodity Long/Short Strategy Fund, Forward Managed Futures Strategy Fund)
Concentration in a particular industry will involve a greater degree of risk than a more diversified portfolio. (Forward Real Estate Long/Short Fund, Forward Select Income Fund)
Derivative instruments involve risks different from those associated with investing directly in securities and may cause, among other things, increased volatility and transaction costs or a fund to lose more than the amount invested. (Forward Commodity Long/Short Strategy Fund, Forward Dynamic Income Fund, Forward EM Corporate Debt Fund, Forward Emerging Markets Fund, Forward Frontier Strategy Fund, Forward Income Builder Fund, Forward Managed Futures Strategy Fund, Forward Real Estate Long/Short Fund, Forward Select EM Dividend Fund, Forward Select Income Fund, Forward Select Income Opportunity Fund, Forward Tactical Enhanced Fund, Forward Tactical Growth Fund)
Investing in exchange-traded funds (ETFs) will subject a fund to substantially the same risks as those associated with the direct ownership of the securities or other property held by the ETFs. (Forward Commodity Long/Short Strategy Fund, Forward Dynamic Income Fund, Forward EM Corporate Debt Fund, Forward Emerging Markets Fund, Forward Income Builder Fund, Forward Managed Futures Strategy Fund, Forward Tactical Enhanced Fund, Forward Tactical Growth Fund)
Foreign securities, especially emerging or frontier markets, will involve additional risks including exchange rate fluctuations, social and political instability, less liquidity, greater volatility and less regulation. (Forward Dynamic Income Fund, Forward EM Corporate Debt Fund, Forward Emerging Markets Fund, Forward Frontier Strategy Fund, Forward Income Builder Fund, Forward Real Estate Long/Short Fund, Forward Select EM Dividend Fund, Forward Select Income Opportunity Fund, Forward Tactical Enhanced Fund, Forward Tactical Growth Fund)
Investing in lower-rated (“high yield”) debt securities involves special risks in addition to those associated with investments in higher-rated debt securities, including a high degree of credit risk. (Forward EM Corporate Debt Fund, Forward Income Builder Fund)
Mortgage and asset-backed securities are debt instruments that are secured by interests in pools of mortgage loans or other financial instruments. Mortgage-backed securities are subject to, among other things, prepayment and extension risks. (Forward Commodity Long/Short Strategy Fund, Forward Income Builder Fund, Forward Managed Futures Strategy Fund)
June 30, 2013
Investing in a non-diversified fund involves the risk of greater price fluctuation than a more diversified portfolio. (Forward Commodity Long/Short Strategy Fund, Forward Dynamic Income Fund, Forward EM Corporate Debt Fund, Forward Endurance Long/Short Fund, Forward Frontier Strategy Fund, Forward Managed Futures Strategy Fund, Forward Real Estate Long/Short Fund, Forward Select Income Fund, Forward Select Income Opportunity Fund)
Higher portfolio turnover rates will involve greater transaction costs, and may increase the potential for taxable distributions being paid to shareholders. (Forward Tactical Enhanced Fund)
Investing in the real estate industry or in real estate-related securities involves the risks associated with direct ownership of real estate which include, among other things, changes in economic conditions (e.g., interest rates), the macro real estate development market, government intervention (e.g., property taxes) or environmental disasters. These risks may also affect the value of equities that service the real estate sector. (Forward Dynamic Income Fund, Forward Income Builder Fund, Forward Real Estate Long/Short Fund, Forward Select Income Fund, Forward Select Income Opportunity Fund)
Short selling involves additional investment risks and transaction costs, and creates leverage, which can increase the risk and volatility of a fund. (Forward Dynamic Income Fund, Forward Income Builder Fund, Forward Real Estate Long/Short Fund, Forward Select EM Dividend Fund, Forward Select Income Opportunity Fund, Forward Tactical Enhanced Fund, Forward Tactical Growth Fund)
Investing in smaller companies generally will present greater investment risks, including greater price volatility, greater sensitivity to changing economic conditions and less liquidity than investing in larger, more mature companies. (Forward Dynamic Income Fund)
Alternative strategies typically are subject to increased risk and loss of principal. Consequently, investments such as mutual funds which focus on alternative strategies are not suitable for all investors.
Diversification does not assure profit or protect against risk.
There is no guarantee the companies in our portfolio will continue to pay dividends.
Forward Dynamic Income Fund and Forward Select Income Opportunity Fund were launched on July 31, 2013, and each has a limited operating history.
Forward Commodity Long/Short Strategy Fund seeks long-term total return.
Forward Dynamic Income Fund seeks total return, with dividend and interest income being an important component of that return, while exhibiting less downside volatility than the S&P 500 Index.
Forward EM Corporate Debt Fund seeks to achieve high total return (capital appreciation and income).
Forward Emerging Markets Fund seeks to achieve long-term growth of capital.
Forward Frontier Strategy Fund seeks capital growth.
Forward Income Builder Fund seeks high current income and some stability of principal.
Forward Managed Futures Strategy Fund seeks long-term total return.
Forward Real Estate Long/Short Fund seeks total return through a combination of high current income relative to equity investment alternatives, plus long-term growth of capital.
Forward Select EM Dividend Fund seeks to achieve high total return through capital appreciation and current income.
Forward Select Income Fund seeks high current income and potential for modest long-term growth of capital.
Forward Select Income Opportunity Fund seeks total return through current income and long-term capital appreciation.
Forward Tactical Enhanced Fund’s investment objective is to produce above-average, risk-adjusted returns, in any market environment, while exhibiting less downside volatility than the S&P 500 Index.
Forward Tactical Growth Fund’s investment objective is to produce above-average, risk-adjusted returns, in any market environment, while exhibiting less downside volatility than the S&P 500 Index.
Alpha is a coefficient measuring risk-adjusted performance.
Correlation is a statistical measure of how two securities move in relation to each other.
S&P 500 Index is an unmanaged index of 500 common stocks chosen to reflect the industries in the U.S. economy. One cannot invest directly in an index.
Valuation is the process of determining the value of an asset or company based on earnings and the market value of assets.
Volatility is a statistical measure of the dispersion of returns for a given security or market index.
Alan Reid is a registered representative of Forward Securities, LLC.
| | |
| Shareholder Update | | June 30, 2013 |
| | |
A MESSAGE FROM: | | Jim O’Donnell, CFA Chief Investment Officer |
Dear Shareholder:
The first half of 2013 was a bit of a wild ride. Many asset classes and markets around the globe enjoyed an exhilarating rally in the first three months of the year only to relinquish a healthy portion of those gains in the months of May and June. Needless to say, this served to unnerve many investors and market participants as they were left to wonder what happened.
So, what happened? From our perspective, the lynchpin of the uncertainty which precipitated the market’s decline was the Federal Reserve’s indication that the days of their quantitative easing program of bond buying—which has artificially served to lower long-term interest rates—may indeed be numbered. The repercussions of this action by the Fed were far reaching—impacting stocks, bonds, real estate, currencies and commodities, and domestic and international investments.
Taking a step back, it is important to understand that the epicenter of this shock wave emanated from the credit markets. When investing in income and credit assets, we believe investors must always assess whether they are being compensated for these three primary risks:
1. Inflation
2. Credit
3. Liquidity
Inflation risk is when a future dollar repaid does not equal the value of a dollar today. We analyze this risk by looking at the sensitivity of prices of investments to changes in interest rates (which frequently move in response to changes in inflationary threats).
Credit risk is the risk of not being repaid. Analysis for this risk looks at fundamental factors related to the borrower including debt quality, how much debt is owed, capacity for repayment as well as the overall economic climate and default rates.
Liquidity risk is the risk that a security cannot be traded quickly enough in the market to prevent a loss or make a profit. While this risk is the toughest to gauge, many market players assess this by looking at valuations, sentiment, leverage levels of market participants, interest rate spreads and the direction of fund flows.
We reached a stage in early 2013 where inflation-adjusted interest rates went negative, interest rate spreads narrowed and valuations became elevated. At that point, many of Forward’s portfolio managers elected to reduce leverage, take profits in positions that had become overvalued and raise cash so they could be in a better position to buy new holdings. They believed risk levels needed to be reduced as investors were not being adequately compensated for the risks outlined above.
The sell-off in the credit markets also extended to other income-oriented equity asset classes and then radiated out to other asset classes and markets, and it was instructive in terms of illustrating the magnitude and dimensions of liquidity risk. One can make a persuasive argument to the effect that the landscape of liquidity risk has changed dramatically since 2008. Reform legislation—like the Volcker Rule and Basel III—encourages traditional liquidity providers in the credit markets to curtail market making activities. The constraints of the reform legislation have reduced the capital which traditionally provided liquidity to the markets, and have caused market makers—those who buy and sell securities from their own accounts in order to provide liquidity and reduce volatility in the markets—to redeploy capital for other purposes. The net effect is that credit market investments and income-oriented investments may tend to be more volatile on a going forward basis than investors have traditionally experienced in the past. We believe the impacts of liquidity risk are more temporary in nature and may present attractive buying opportunities.
As we look forward to the second half of 2013, there is intense focus on the slowing rate of China’s economic growth. As these concerns heighten, we believe that emerging market equities may present an attractive buying opportunity. Another way to capitalize on declining demand in China may be via strategies which can gain short exposure to the commodities demanded by Chinese firms.
As always, we remain committed to helping our shareholders attain true portfolio diversification and achieve their long-term financial goals. We also believe that transparent practices give our investors access to the information they need to make important investment decisions. I invite you to review the information in this report and the performance of the Forward Funds in the first half of 2013, and thank you for the continued confidence that you place in our funds.
Sincerely,
Jim O’Donnell, CFA
Chief Investment Officer
Forward
RISKS
There are risks involved with investing, including loss of principal. Past performance does not guarantee future results, share prices will fluctuate and you may have a gain or loss when you redeem shares.
Exposure to the commodities markets may subject a fund to greater volatility than investing in traditional securities. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as natural disasters and international economic, political and regulatory developments.
Foreign securities, especially emerging or frontier markets, will involve additional risks including exchange rate fluctuations, social and political instability, less liquidity, greater volatility and less regulation.
Diversification does not assure profit or protect against risk.
Basel III is a global, voluntary regulatory standard on bank capital adequacy, stress testing and market liquidity risk.
Leverage refers to the use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment.
Liquidity is the degree to which an asset or security can be bought or sold in the market without affecting the asset’s price.
Quantitative easing refers to a form of monetary policy used to stimulate an economy where interest rates are either at, or close to, zero.
Valuation is the process of determining the value of an asset or company based on earnings and the market value of assets.
Volatility is a statistical measure of the dispersion of returns for a given security or market index.
The Volcker Rule is a proposal by American economist and former Federal Reserve Chairman Paul Volcker to restrict banks from making certain kinds of speculative investments if they are not on behalf of their customers.
Jim O’Donnell has earned the right to use the Chartered Financial Analyst designation. CFA Institute marks are trademarks owned by the CFA Institute.
Forward Funds are distributed by Forward Securities, LLC.
Not FDIC Insured | No Bank Guarantee | May Lose Value
© Forward Management, LLC. All rights reserved.
The discussions concerning the funds included in this shareholder report may contain certain forward-looking statements about the factors that may affect performance of the funds in the future, including the portfolio managers’ outlook regarding economic, market, political and other factors relevant to investment performance. These statements are based on the portfolio managers’ expectations concerning certain future events and their expected impact on the funds, and are current only through the date on the cover of this report. Forward-looking statements are inherently uncertain and are not intended to predict the future performance of the funds. Actual events may cause adjustments in the portfolio managers’ strategies from those currently expected to be employed, and the outlook of the portfolio managers is subject to change.
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2013
See page 10 for important performance disclosure information about the Forward Funds.
The performance quoted represents past performance, does not guarantee future results and current performance may be lower or higher than the data quoted. The investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance data current to the most recent month-end may be obtained at www.forwardinvesting.com. Investment performance may reflect fee waivers in effect. In the absence of fee waivers, total return would be lower. Total return is based on NAV, assuming reinvestment of all distributions. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
| | | | | | | | | | | | |
| Forward Frontier Strategy Fund(a) | | 1 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | |
Investor Class | | | 18.58% | | | | 3.10% | | | | 12/31/08 | |
Institutional Class | | | 18.97% | | | | 3.28% | | | | 12/31/08 | |
Advisor Class(b) | | | 18.98% | | | | -3.26% | | | | 05/02/11 | |
Class Z | | | 18.93% | | | | 6.19% | | | | 05/05/09 | |
| | | | | | | | | | | | | | | | | | | | |
| Forward High Yield Bond Fund(c) | | 1 Year | | | 5 Year | | | 10 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | 8.28% | | | | 8.46% | | | | 7.30% | | | | 6.76% | | | | 05/01/00 | |
Institutional Class | | | 8.70% | | | | 8.94% | | | | 7.69% | | | | 7.18% | | | | 05/01/00 | |
Class C (with CDSC)(d) | | | 6.74% | | | | 7.93% | | | | 6.67% | | | | 7.58% | | | | 12/30/02 | |
Class C (without CDSC)(e) | | | 7.74% | | | | 7.93% | | | | 6.67% | | | | 7.58% | | | | 12/30/02 | |
Class Z | | | 8.82% | | | | N/A | | | | N/A | | | | 13.45% | | | | 05/05/09 | |
| | | | | | | | | | | | | | | | | | | | |
| Forward Investment Grade Fixed-Income Fund(f) | | 1 Year | | | 5 Year | | | 10 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | -0.68% | | | | 6.48% | | | | 3.79% | | | | 4.76% | | | | 07/14/98 | |
Institutional Class | | | -0.17% | | | | 6.97% | | | | 4.25% | | | | 5.64% | | | | 06/15/92 | |
Class Z | | | -0.16% | | | | N/A | | | | N/A | | | | 7.80% | | | | 05/05/09 | |
| | | | | | | | | | | | | | | | | | | | |
| Forward Total MarketPlus Fund(g) | | 1 Year | | | 5 Year | | | 10 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | 21.98% | | | | 5.95% | | | | 8.04% | | | | 4.52% | | | | 06/24/98 | |
Institutional Class | | | 22.35% | | | | 6.39% | | | | 8.50% | | | | 9.38% | | | | 08/24/92 | |
Class Z | | | 22.60% | | | | N/A | | | | N/A | | | | 17.79% | | | | 05/05/09 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Forward U.S. Government Money Fund(h) | | 7-Day Current
Yield(i) | | | 1 Year | | | 5 Year | | | 10 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | 0.01% | | | | 0.03% | | | | 0.19% | | | | 1.32% | | | | 1.94% | | | | 07/29/98 | |
Institutional Class | | | 0.01% | | | | 0.03% | | | | 0.26% | | | | 1.57% | | | | 2.87% | | | | 04/09/92 | |
Class A | | | 0.01% | | | | 0.03% | | | | 0.22% | | | | N/A | | | | 1.46% | | | | 09/29/03 | |
Class C (with CDSC)(d) | | | 0.01% | | | | -0.97% | | | | 0.14% | | | | 1.13% | | | | 1.10% | | | | 12/30/02 | |
Class C (without CDSC)(e) | | | 0.01% | | | | 0.03% | | | | 0.14% | | | | 1.13% | | | | 1.10% | | | | 12/30/02 | |
Class Z | | | 0.01% | | | | 0.03% | | | | 0.33% | | | | N/A | | | | 1.22% | | | | 01/04/07 | |
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2013
See page 10 for important performance disclosure information about the Forward Funds.
| | | | | | | | | | | | | | | | | | | | |
| Forward Balanced Allocation Fund(j) | | 1 Year | | | 5 Year | | | 10 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | 6.76% | | | | 2.88% | | | | 4.32% | | | | 2.93% | | | | 12/27/00 | |
Institutional Class | | | 7.29% | | | | 3.39% | | | | 4.84% | | | | 3.45% | | | | 12/27/00 | |
Class A (load adjusted)(k) | | | 0.80% | | | | 1.82% | | | | N/A | | | | 3.65% | | | | 09/29/03 | |
Class A (without load)(l) | | | 6.93% | | | | 3.03% | | | | N/A | | | | 4.28% | | | | 09/29/03 | |
Class C (with CDSC)(d) | | | 5.23% | | | | 2.36% | | | | 3.79% | | | | 4.38% | | | | 12/30/02 | |
Class C (without CDSC)(e) | | | 6.23% | | | | 2.36% | | | | 3.79% | | | | 4.38% | | | | 12/30/02 | |
| | | | | | | | | | | | | | | | | | | | |
| Forward Growth & Income Allocation Fund(m) | | 1 Year | | | 5 Year | | | 10 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | 8.42% | | | | 2.52% | | | | 4.49% | | | | 2.66% | | | | 12/27/00 | |
Institutional Class | | | 9.00% | | | | 3.05% | | | | 5.01% | | | | 3.17% | | | | 12/27/00 | |
Class A (load adjusted)(k) | | | 2.35% | | | | 1.48% | | | | N/A | | | | 3.76% | | | | 09/29/03 | |
Class A (without load)(l) | | | 8.57% | | | | 2.69% | | | | N/A | | | | 4.39% | | | | 09/29/03 | |
Class C (with CDSC)(d) | | | 6.83% | | | | 2.01% | | | | 3.95% | | | | 4.58% | | | | 12/30/02 | |
Class C (without CDSC)(e) | | | 7.83% | | | | 2.01% | | | | 3.95% | | | | 4.58% | | | | 12/30/02 | |
| | | | | | | | | | | | | | | | | | | | |
| Forward Growth Allocation Fund(n) | | 1 Year | | | 5 Year | | | 10 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | 10.36% | | | | 1.39% | | | | 4.70% | | | | 2.06% | | | | 12/27/00 | |
Institutional Class | | | 11.06% | | | | 1.91% | | | | 5.22% | | | | 2.57% | | | | 12/27/00 | |
Class A (load adjusted)(k) | | | 4.22% | | | | 0.35% | | | | N/A | | | | 3.87% | | | | 09/29/03 | |
Class A (without load)(l) | | | 10.59% | | | | 1.54% | | | | N/A | | | | 4.50% | | | | 09/29/03 | |
Class C (with CDSC)(d) | | | 8.91% | | | | 0.90% | | | | 4.18% | | | | 4.97% | | | | 12/30/02 | |
Class C (without CDSC)(e) | | | 9.91% | | | | 0.90% | | | | 4.18% | | | | 4.97% | | | | 12/30/02 | |
| | | | | | | | | | | | | | | | | | | | |
| Forward Income & Growth Allocation Fund(o) | | 1 Year | | | 5 Year | | | 10 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | 4.77% | | | | 3.67% | | | | 3.88% | | | | 3.27% | | | | 12/27/00 | |
Institutional Class | | | 5.25% | | | | 4.18% | | | | 4.39% | | | | 3.78% | | | | 12/27/00 | |
Class A (load adjusted)(k) | | | -1.12% | | | | 2.61% | | | | N/A | | | | 3.32% | | | | 09/29/03 | |
Class A (without load)(l) | | | 4.89% | | | | 3.83% | | | | N/A | | | | 3.95% | | | | 09/29/03 | |
Class C (with CDSC)(d) | | | 3.25% | | | | 3.16% | | | | 3.36% | | | | 3.79% | | | | 12/30/02 | |
Class C (without CDSC)(e) | | | 4.25% | | | | 3.16% | | | | 3.36% | | | | 3.79% | | | | 12/30/02 | |
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2013
See page 10 for important performance disclosure information about the Forward Funds.
| | | | | | | | | | | | | | | | | | | | |
| Forward Income Builder Fund(p) | | 1 Year | | | 5 Year | | | 10 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | 9.45% | | | | 6.54% | | | | 4.06% | | | | 4.37% | | | | 12/27/00 | |
Institutional Class | | | 10.02% | | | | 7.08% | | | | 4.58% | | | | 4.89% | | | | 12/27/00 | |
Class A (load adjusted)(q) | | | 5.64% | | | | 6.00% | | | | N/A | | | | 4.02% | | | | 09/29/03 | |
Class A (without load)(l) | | | 9.72% | | | | 6.80% | | | | N/A | | | | 4.43% | | | | 09/29/03 | |
Class C (with CDSC)(d) | | | 7.92% | | | | 6.01% | | | | 3.54% | | | | 3.67% | | | | 12/30/02 | |
Class C (without CDSC)(e) | | | 8.92% | | | | 6.01% | | | | 3.54% | | | | 3.67% | | | | 12/30/02 | |
| | | | | | | | | | | | | | | | | | | | |
| Forward Multi-Strategy Fund(r) | | 1 Year | | | 5 Year | | | 10 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | 11.65% | | | | -0.05% | | | | 4.42% | | | | 1.02% | | | | 12/27/00 | |
Institutional Class | | | 12.30% | | | | 0.48% | | | | 4.96% | | | | 1.54% | | | | 12/27/00 | |
Class A (load adjusted)(k) | | | 5.50% | | | | -1.04% | | | | N/A | | | | 3.55% | | | | 09/29/03 | |
Class A (without load)(l) | | | 11.93% | | | | 0.13% | | | | N/A | | | | 4.18% | | | | 09/29/03 | |
Class C (with CDSC)(d) | | | 10.19% | | | | -0.52% | | | | 3.90% | | | | 4.71% | | | | 12/30/02 | |
Class C (without CDSC)(e) | | | 11.19% | | | | -0.52% | | | | 3.90% | | | | 4.71% | | | | 12/30/02 | |
(a) Prior to May 1, 2011 the Forward Frontier Strategy Fund was known as the Forward Frontier MarketStrat Fund. Prior to September 20, 2010 the Forward Frontier MarketStrat Fund was know as the Forward Frontier Markets Fund. Prior to May 1, 2010, the Forward Frontier Markets Fund was known as the Accessor Frontier Markets Fund.
(b) Prior to May 1, 2013, the Advisor Class was known as Class M.
(c) Prior to May 1, 2010, the Forward High Yield Bond Fund was known as the Accessor High Yield Bond Fund.
(d) Includes the 1.00% contingent deferred sales charge.
(e) Excludes the 1.00% contingent deferred sales charge.
(f) Prior to May 1, 2010, the Forward Investment Grade Fixed-Income Fund was known as the Accessor Investment Grade Fixed-Income Fund.
(g) Prior to May 1, 2013 the Forward Total MarketPlus Fund was known as the Forward Extended MarketPlus Fund. Prior to May 1, 2011 the Forward Extended MarketPlus Fund was known as the Forward SMIDPlus Fund. Prior to September 20, 2010 the Forward SMIDPlus Fund was known as the Forward Small to Mid Cap Fund. Prior to May 1, 2010, the Forward Small to Mid Cap Fund was known as the Accessor Small to Mid Cap Fund.
(h) Prior to May 1, 2010, the Forward U.S. Government Money Fund was known as the Accessor U.S. Government Money Fund.
(i) The 7-Day Current Yield is the simple average of each of the last seven day’s daily yields.
(j) Prior to May 1, 2010, the Forward Balanced Allocation Fund was known as the Accessor Balanced Allocation Fund.
(k) Includes the effect of the maximum 5.75% sales charge.
(l) Excludes sales charge.
(m) Prior to May 1, 2010, the Forward Growth & Income Allocation Fund was known as the Accessor Growth & Income Allocation Fund.
(n) Prior to May 1, 2010, the Forward Growth Allocation Fund was known as the Accessor Growth Allocation Fund.
(o) Prior to May 1, 2010, the Forward Income & Growth Allocation Fund was known as the Accessor Income & Growth Allocation Fund.
(p) Prior to May 1, 2012, the Forward Income Builder Fund was known as the Forward Income Allocation Fund. Prior to May 1, 2010, the Forward Income Allocation Fund was known as the Accessor Income Allocation Fund.
(q) Includes the effect of the maximum 3.75% sales charge.
(r) Prior to December 3, 2012, the Forward Multi-Strategy Fund was known as the Forward Aggressive Growth Allocation Fund. Prior to May 1, 2010, the Forward Aggressive Growth Allocation Fund was known as the Accessor Aggressive Growth Allocation Fund.
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2013
Risk Disclosures
There are risks involved with investing, including loss of principal. Past performance does not guarantee future results, share prices will fluctuate and you may have a gain or loss when you redeem shares.
Forward Frontier Strategy Fund
Derivative instruments involve risks different from those associated with investing directly in securities and may cause, among other things, increased volatility and transaction costs or a fund to lose more than the amount invested.
Foreign securities, especially emerging or frontier markets, will involve additional risks including exchange rate fluctuations, social and political instability, less liquidity, greater volatility and less regulation.
Investing in a non-diversified fund involves the risk of greater price fluctuation than a more diversified portfolio.
Forward High Yield Bond Fund
Derivative instruments involve risks different from those associated with investing directly in securities and may cause, among other things, increased volatility and transaction costs or a fund to lose more than the amount invested.
Investing in lower-rated (“high yield”) debt securities involves special risks in addition to those associated with investments in higher-rated debt securities, including a high degree of credit risk.
Forward Investment Grade Fixed-Income Fund
Derivative instruments involve risks different from those associated with investing directly in securities and may cause, among other things, increased volatility and transaction costs or a fund to lose more than the amount invested.
Mortgage and asset-backed securities are debt instruments that are secured by interests in pools of mortgage loans or other financial instruments. Mortgage-backed securities are subject to, among other things, prepayment and extension risks.
Forward Total MarketPlus Fund
Exposure to the commodities markets may subject a fund to greater volatility than investing in traditional securities. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as natural disasters and international economic, political and regulatory developments.
Derivative instruments involve risks different from those associated with investing directly in securities and may cause, among other things, increased volatility and transaction costs or a fund to lose more than the amount invested.
Mortgage and asset-backed securities are debt instruments that are secured by interests in pools of mortgage loans or other financial instruments. Mortgage-backed securities are subject to, among other things, prepayment and extension risks.
Investing in smaller companies generally will present greater investment risks, including greater price volatility, greater sensitivity to changing economic conditions and less liquidity than investing in larger, more mature companies.
Forward U.S. Government Money Fund
An investment in the Forward U.S. Government Money Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in this fund.
Forward Balanced Allocation Fund
Each allocation fund is a fund of funds, which invest in a mix of underlying Forward Funds. Shareholders of an allocation fund indirectly bear the expenses of the underlying funds. An allocation fund’s allocations may be changed at any time. Asset allocation does not assure profit or protect against risk.
Borrowing for investment purposes creates leverage, which can increase the risk and volatility of a fund. (Forward EM Corporate Debt Fund, Forward International Dividend Fund, Forward International Real Estate Fund, Forward Select EM Dividend Fund)
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2013
Exposure to the commodities markets may subject a fund to greater volatility than investing in traditional securities. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as natural disasters and international economic, political and regulatory developments. (Forward Commodity Long/Short Strategy Fund, Forward Managed Futures Strategy Fund, Forward Total MarketPlus Fund)
Concentration in a particular industry will involve a greater degree of risk than a more diversified portfolio. (Forward International Real Estate Fund, Forward Real Estate Fund)
Derivative instruments involve risks different from those associated with investing directly in securities and may cause, among other things, increased volatility and transaction costs or a fund to lose more than the amount invested. (Forward Commodity Long/Short Strategy Fund, Forward EM Corporate Debt Fund, Forward Frontier Strategy Fund, Forward High Yield Bond Fund, Forward International Dividend Fund, Forward International Real Estate Fund, Forward Investment Grade Fixed-Income Fund, Forward Managed Futures Strategy Fund, Forward Select EM Dividend Fund, Forward Total MarketPlus Fund)
Investing in exchange-traded funds (ETFs) will subject a fund to substantially the same risks as those associated with the direct ownership of the securities or other property held by the ETFs. (Forward Commodity Long/Short Strategy Fund, Forward EM Corporate Debt Fund, Forward Managed Futures Strategy Fund)
Foreign securities, especially emerging or frontier markets, will involve additional risks including exchange rate fluctuations, social and political instability, less liquidity, greater volatility and less regulation. (Forward EM Corporate Debt Fund, Forward Frontier Strategy Fund, Forward International Dividend Fund, Forward International Real Estate Fund, Forward Select EM Dividend Fund)
Investing in lower-rated (“high yield”) debt securities involves special risks in addition to those associated with investments in higher-rated debt securities, including a high degree of credit risk. (Forward EM Corporate Debt Fund, Forward High Yield Bond Fund)
Mortgage and asset-backed securities are debt instruments that are secured by interests in pools of mortgage loans or other financial instruments. Mortgage-backed securities are subject to, among other things, prepayment and extension risks. (Forward Commodity Long/Short Strategy Fund, Forward Investment Grade Fixed-Income Fund, Forward Managed Futures Strategy Fund, Forward Total MarketPlus Fund)
Investing in a non-diversified fund involves the risk of greater price fluctuation than a more diversified portfolio. (Forward Commodity Long/Short Strategy Fund, Forward EM Corporate Debt Fund, Forward Frontier Strategy Fund, Forward International Real Estate Fund, Forward Managed Futures Strategy Fund, Forward Real Estate Fund)
Investing in the real estate industry or in real estate-related securities involves the risks associated with direct ownership of real estate which include, among other things, changes in economic conditions (e.g., interest rates), the macro real estate development market, government intervention (e.g., property taxes) or environmental disasters. These risks may also affect the value of equities that service the real estate sector. (Forward International Real Estate Fund, Forward Real Estate Fund)
Short selling involves additional investment risks and transaction costs, and creates leverage, which can increase the risk and volatility of a fund. (Forward Select EM Dividend Fund)
Investing in smaller companies generally will present greater investment risks, including greater price volatility, greater sensitivity to changing economic conditions and less liquidity than investing in larger, more mature companies. (Forward Total MarketPlus Fund)
Alternative strategies typically are subject to increased risk and loss of principal. Consequently, investments such as mutual funds which focus on alternative strategies are not suitable for all investors. (Forward Commodity Long/Short Strategy Fund, Forward Managed Futures Strategy Fund)
There is no guarantee the companies in our portfolio will continue to pay dividends. (Forward International Dividend Fund, Forward Select EM Dividend Fund)
June 30, 2013
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2013
Forward Growth & Income Allocation Fund
Each allocation fund is a fund of funds, which invest in a mix of underlying Forward Funds. Shareholders of an allocation fund indirectly bear the expenses of the underlying funds. An allocation fund’s allocations may be changed at any time. Asset allocation does not assure profit or protect against risk.
Borrowing for investment purposes creates leverage, which can increase the risk and volatility of a fund. (Forward EM Corporate Debt Fund, Forward International Dividend Fund, Forward International Real Estate Fund, Forward Select EM Dividend Fund)
Exposure to the commodities markets may subject a fund to greater volatility than investing in traditional securities. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as natural disasters and international economic, political and regulatory developments. (Forward Commodity Long/Short Strategy Fund, Forward Managed Futures Strategy Fund, Forward Total MarketPlus Fund)
Concentration in a particular industry will involve a greater degree of risk than a more diversified portfolio. (Forward International Real Estate Fund, Forward Real Estate Fund)
Derivative instruments involve risks different from those associated with investing directly in securities and may cause, among other things, increased volatility and transaction costs or a fund to lose more than the amount invested. (Forward Commodity Long/Short Strategy Fund, Forward EM Corporate Debt Fund, Forward Frontier Strategy Fund, Forward High Yield Bond Fund, Forward International Dividend Fund, Forward International Real Estate Fund, Forward Investment Grade Fixed-Income Fund, Forward Managed Futures Strategy Fund, Forward Select EM Dividend Fund, Forward Total MarketPlus Fund)
Investing in exchange-traded funds (ETFs) will subject a fund to substantially the same risks as those associated with the direct ownership of the securities or other property held by the ETFs. (Forward Commodity Long/Short Strategy Fund, Forward EM Corporate Debt Fund, Forward Managed Futures Strategy Fund)
Foreign securities, especially emerging or frontier markets, will involve additional risks including exchange rate fluctuations, social and political instability, less liquidity, greater volatility and less regulation. (Forward EM Corporate Debt Fund, Forward Frontier Strategy Fund, Forward International Dividend Fund, Forward International Real Estate Fund, Forward Select EM Dividend Fund)
Investing in lower-rated (“high yield”) debt securities involves special risks in addition to those associated with investments in higher-rated debt securities, including a high degree of credit risk. (Forward EM Corporate Debt Fund, Forward High Yield Bond Fund)
Mortgage and asset-backed securities are debt instruments that are secured by interests in pools of mortgage loans or other financial instruments. Mortgage-backed securities are subject to, among other things, prepayment and extension risks. (Forward Commodity Long/Short Strategy Fund, Forward Investment Grade Fixed-Income Fund, Forward Managed Futures Strategy Fund, Forward Total MarketPlus Fund)
Investing in a non-diversified fund involves the risk of greater price fluctuation than a more diversified portfolio. (Forward Commodity Long/Short Strategy Fund, Forward EM Corporate Debt Fund, Forward Frontier Strategy Fund, Forward International Real Estate Fund, Forward Managed Futures Strategy Fund, Forward Real Estate Fund)
Investing in the real estate industry or in real estate-related securities involves the risks associated with direct ownership of real estate which include, among other things, changes in economic conditions (e.g., interest rates), the macro real estate development market, government intervention (e.g., property taxes) or environmental disasters. These risks may also affect the value of equities that service the real estate sector. (Forward International Real Estate Fund, Forward Real Estate Fund)
Short selling involves additional investment risks and transaction costs, and creates leverage, which can increase the risk and volatility of a fund. (Forward Select EM Dividend Fund)
Investing in smaller companies generally will present greater investment risks, including greater price volatility, greater sensitivity to changing economic conditions and less liquidity than investing in larger, more mature companies. (Forward Total MarketPlus Fund)
Alternative strategies typically are subject to increased risk and loss of principal. Consequently, investments such as mutual funds which focus on alternative strategies are not suitable for all investors. (Forward Commodity Long/Short Strategy Fund, Forward Managed Futures Strategy Fund)
There is no guarantee the companies in our portfolio will continue to pay dividends. (Forward International Dividend Fund, Forward Select EM Dividend Fund)
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2013
Forward Growth Allocation Fund
Each allocation fund is a fund of funds, which invest in a mix of underlying Forward Funds. Shareholders of an allocation fund indirectly bear the expenses of the underlying funds. An allocation fund’s allocations may be changed at any time. Asset allocation does not assure profit or protect against risk.
Borrowing for investment purposes creates leverage, which can increase the risk and volatility of a fund. (Forward EM Corporate Debt Fund, Forward International Dividend Fund, Forward International Real Estate Fund, Forward Select EM Dividend Fund)
Exposure to the commodities markets may subject a fund to greater volatility than investing in traditional securities. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as natural disasters and international economic, political and regulatory developments. (Forward Commodity Long/Short Strategy Fund, Forward Managed Futures Strategy Fund, Forward Total MarketPlus Fund)
Concentration in a particular industry will involve a greater degree of risk than a more diversified portfolio. (Forward International Real Estate Fund, Forward Real Estate Fund)
Derivative instruments involve risks different from those associated with investing directly in securities and may cause, among other things, increased volatility and transaction costs or a fund to lose more than the amount invested. (Forward Commodity Long/Short Strategy Fund, Forward EM Corporate Debt Fund, Forward Frontier Strategy Fund, Forward High Yield Bond Fund, Forward International Dividend Fund, Forward International Real Estate Fund, Forward Investment Grade Fixed-Income Fund, Forward Managed Futures Strategy Fund, Forward Select EM Dividend Fund, Forward Total MarketPlus Fund)
Investing in exchange-traded funds (ETFs) will subject a fund to substantially the same risks as those associated with the direct ownership of the securities or other property held by the ETFs. (Forward Commodity Long/Short Strategy Fund, Forward EM Corporate Debt Fund, Forward Managed Futures Strategy Fund)
Foreign securities, especially emerging or frontier markets, will involve additional risks including exchange rate fluctuations, social and political instability, less liquidity, greater volatility and less regulation. (Forward EM Corporate Debt Fund, Forward Frontier Strategy Fund, Forward International Dividend Fund, Forward International Real Estate Fund, Forward Select EM Dividend Fund)
Investing in lower-rated (“high yield”) debt securities involves special risks in addition to those associated with investments in higher-rated debt securities, including a high degree of credit risk. (Forward EM Corporate Debt Fund, Forward High Yield Bond Fund)
Mortgage and asset-backed securities are debt instruments that are secured by interests in pools of mortgage loans or other financial instruments. Mortgage-backed securities are subject to, among other things, prepayment and extension risks. (Forward Commodity Long/Short Strategy Fund, Forward Investment Grade Fixed-Income Fund, Forward Managed Futures Strategy Fund, Forward Total MarketPlus Fund)
Investing in a non-diversified fund involves the risk of greater price fluctuation than a more diversified portfolio. (Forward Commodity Long/Short Strategy Fund, Forward EM Corporate Debt Fund, Forward Frontier Strategy Fund, Forward International Real Estate Fund, Forward Managed Futures Strategy Fund, Forward Real Estate Fund)
Investing in the real estate industry or in real estate-related securities involves the risks associated with direct ownership of real estate which include, among other things, changes in economic conditions (e.g., interest rates), the macro real estate development market, government intervention (e.g., property taxes) or environmental disasters. These risks may also affect the value of equities that service the real estate sector. (Forward International Real Estate Fund, Forward Real Estate Fund)
Short selling involves additional investment risks and transaction costs, and creates leverage, which can increase the risk and volatility of a fund. (Forward Select EM Dividend Fund)
Investing in smaller companies generally will present greater investment risks, including greater price volatility, greater sensitivity to changing economic conditions and less liquidity than investing in larger, more mature companies. (Forward Total MarketPlus Fund)
Alternative strategies typically are subject to increased risk and loss of principal. Consequently, investments such as mutual funds which focus on alternative strategies are not suitable for all investors. (Forward Commodity Long/Short Strategy Fund, Forward Managed Futures Strategy Fund)
There is no guarantee the companies in our portfolio will continue to pay dividends. (Forward International Dividend Fund, Forward Select EM Dividend Fund)
June 30, 2013
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2013
Forward Income & Growth Allocation Fund
Each allocation fund is a fund of funds, which invest in a mix of underlying Forward Funds. Shareholders of an allocation fund indirectly bear the expenses of the underlying funds. An allocation fund’s allocations may be changed at any time. Asset allocation does not assure profit or protect against risk.
Borrowing for investment purposes creates leverage, which can increase the risk and volatility of a fund. (Forward EM Corporate Debt Fund, Forward International Dividend Fund, Forward International Real Estate Fund, Forward Select EM Dividend Fund)
Exposure to the commodities markets may subject a fund to greater volatility than investing in traditional securities. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as natural disasters and international economic, political and regulatory developments. (Forward Commodity Long/Short Strategy Fund, Forward Managed Futures Strategy Fund, Forward Total MarketPlus Fund)
Concentration in a particular industry will involve a greater degree of risk than a more diversified portfolio. (Forward International Real Estate Fund, Forward Real Estate Fund)
Derivative instruments involve risks different from those associated with investing directly in securities and may cause, among other things, increased volatility and transaction costs or a fund to lose more than the amount invested. (Forward Commodity Long/Short Strategy Fund, Forward EM Corporate Debt Fund, Forward Frontier Strategy Fund, Forward High Yield Bond Fund, Forward International Dividend Fund, Forward International Real Estate Fund, Forward Investment Grade Fixed-Income Fund, Forward Managed Futures Strategy Fund, Forward Select EM Dividend Fund, Forward Total MarketPlus Fund)
Investing in exchange-traded funds (ETFs) will subject a fund to substantially the same risks as those associated with the direct ownership of the securities or other property held by the ETFs. (Forward Commodity Long/Short Strategy Fund, Forward EM Corporate Debt Fund, Forward Managed Futures Strategy Fund)
Foreign securities, especially emerging or frontier markets, will involve additional risks including exchange rate fluctuations, social and political instability, less liquidity, greater volatility and less regulation. (Forward EM Corporate Debt Fund, Forward Frontier Strategy Fund, Forward International Dividend Fund, Forward International Real Estate Fund, Forward Select EM Dividend Fund)
Investing in lower-rated (“high yield”) debt securities involves special risks in addition to those associated with investments in higher-rated debt securities, including a high degree of credit risk. (Forward EM Corporate Debt Fund, Forward High Yield Bond Fund)
Mortgage and asset-backed securities are debt instruments that are secured by interests in pools of mortgage loans or other financial instruments. Mortgage-backed securities are subject to, among other things, prepayment and extension risks. (Forward Commodity Long/Short Strategy Fund, Forward Investment Grade Fixed-Income Fund, Forward Managed Futures Strategy Fund, Forward Total MarketPlus Fund)
Investing in a non-diversified fund involves the risk of greater price fluctuation than a more diversified portfolio. (Forward Commodity Long/Short Strategy Fund, Forward EM Corporate Debt Fund, Forward Frontier Strategy Fund, Forward International Real Estate Fund, Forward Managed Futures Strategy Fund, Forward Real Estate Fund)
Investing in the real estate industry or in real estate-related securities involves the risks associated with direct ownership of real estate which include, among other things, changes in economic conditions (e.g., interest rates), the macro real estate development market, government intervention (e.g., property taxes) or environmental disasters. These risks may also affect the value of equities that service the real estate sector. (Forward International Real Estate Fund, Forward Real Estate Fund)
Short selling involves additional investment risks and transaction costs, and creates leverage, which can increase the risk and volatility of a fund. (Forward Select EM Dividend Fund)
Investing in smaller companies generally will present greater investment risks, including greater price volatility, greater sensitivity to changing economic conditions and less liquidity than investing in larger, more mature companies. (Forward Total MarketPlus Fund)
Alternative strategies typically are subject to increased risk and loss of principal. Consequently, investments such as mutual funds which focus on alternative strategies are not suitable for all investors. (Forward Commodity Long/Short Strategy Fund, Forward Managed Futures Strategy Fund)
There is no guarantee the companies in our portfolio will continue to pay dividends. (Forward International Dividend Fund, Forward Select EM Dividend Fund)
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2013
Forward Income Builder Fund
Each allocation fund is a fund of funds, which invest in a mix of underlying Forward Funds. Shareholders of an allocation fund indirectly bear the expenses of the underlying funds. An allocation fund’s allocations may be changed at any time. Asset allocation does not assure profit or protect against risk.
Borrowing for investment purposes creates leverage, which can increase the risk and volatility of a fund. (Forward EM Corporate Debt Fund, Forward International Dividend Fund, Forward Select Income Fund)
Concentration in a particular industry will involve a greater degree of risk than a more diversified portfolio. (Forward Global Infrastructure Fund, Forward Select Income Fund)
Derivative instruments involve risks different from those associated with investing directly in securities and may cause, among other things, increased volatility and transaction costs or a fund to lose more than the amount invested. (Forward EM Corporate Debt Fund, Forward Global Infrastructure Fund, Forward High Yield Bond Fund, Forward International Dividend Fund, Forward Select Income Fund)
Investing in exchange-traded funds (ETFs) will subject a fund to substantially the same risks as those associated with the direct ownership of the securities or other property held by the ETFs. (Forward EM Corporate Debt Fund)
Foreign securities, especially emerging or frontier markets, will involve additional risks including exchange rate fluctuations, social and political instability, less liquidity, greater volatility and less regulation. (Forward EM Corporate Debt Fund, Forward Global Infrastructure Fund, Forward International Dividend Fund)
Investing in lower-rated (“high yield”) debt securities involves special risks in addition to those associated with investments in higher-rated debt securities, including a high degree of credit risk. (Forward EM Corporate Debt Fund, Forward High Yield Bond Fund)
Mortgage and asset-backed securities are debt instruments that are secured by interests in pools of mortgage loans or other financial instruments. Mortgage-backed securities are subject to, among other things, prepayment and extension risks.
Investing in a non-diversified fund involves the risk of greater price fluctuation than a more diversified portfolio. (Forward EM Corporate Debt Fund, Forward Global Infrastructure Fund, Forward Select Income Fund)
Investing in the real estate industry or in real estate-related securities involves the risks associated with direct ownership of real estate which include, among other things, changes in economic conditions (e.g., interest rates), the macro real estate development market, government intervention (e.g., property taxes) or environmental disasters. These risks may also affect the value of equities that service the real estate sector. (Forward Select Income Fund)
There is no guarantee the companies in our portfolio will continue to pay dividends. (Forward International Dividend Fund)
Forward Multi-Strategy Fund
Each allocation fund is a fund of funds, which invest in a mix of underlying Forward Funds. Shareholders of an allocation fund indirectly bear the expenses of the underlying funds. An allocation fund’s allocations may be changed at any time. Asset allocation does not assure profit or protect against risk.
Borrowing for investment purposes creates leverage, which can increase the risk and volatility of a fund. (Forward Global Credit Long/Short Fund, Forward International Dividend Fund, Forward International Real Estate Fund, Forward Real Estate Long/Short Fund, Forward Select Income Fund, Forward Tactical Enhanced Fund)
Exposure to the commodities markets may subject a fund to greater volatility than investing in traditional securities. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as natural disasters and international economic, political and regulatory developments. (Forward Managed Futures Strategy Fund, Forward Total MarketPlus Fund)
Concentration in a particular industry will involve a greater degree of risk than a more diversified portfolio. (Forward Global Infrastructure Fund, Forward International Real Estate Fund, Forward Real Estate Long/Short Fund, Forward Select Income Fund)
Derivative instruments involve risks different from those associated with investing directly in securities and may cause, among other things, increased volatility and transaction costs or a fund to lose more than the amount invested. (Forward Emerging Markets Fund, Forward Endurance Long/Short Fund, Forward Frontier Strategy Fund, Forward Global Credit Long/Short Fund, Forward Global Infrastructure Fund, Forward International Dividend Fund, Forward International Real Estate Fund, Forward International Small Companies Fund, Forward Managed Futures Strategy Fund, Forward Real Estate Long/Short Fund, Forward Select Income Fund, Forward Tactical Enhanced Fund, Forward Total MarketPlus Fund)
June 30, 2013
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2013
Investing in exchange-traded funds (ETFs) will subject a fund to substantially the same risks as those associated with the direct ownership of the securities or other property held by the ETFs. (Forward Emerging Markets Fund, Forward Endurance Long/Short Fund Forward, Forward Global Credit Long/Short Fund, Forward International Small Companies Fund, Forward Managed Futures Strategy Fund, Forward Tactical Enhanced Fund)
Foreign securities, especially emerging or frontier markets, will involve additional risks including exchange rate fluctuations, social and political instability, less liquidity, greater volatility and less regulation. (Forward Emerging Markets Fund, Forward Endurance Long/Short Fund, Forward Frontier Strategy Fund, Forward Global Credit Long/Short Fund, Forward Global Infrastructure Fund, Forward International Dividend Fund, Forward International Real Estate Fund, Forward International Small Companies Fund, Forward Real Estate Long/Short Fund, Forward Tactical Enhanced Fund)
Investing in lower-rated (“high yield”) debt securities involves special risks in addition to those associated with investments in higher-rated debt securities, including a high degree of credit risk. (Forward Global Credit Long/Short Fund)
Mortgage and asset-backed securities are debt instruments that are secured by interests in pools of mortgage loans or other financial instruments. Mortgage-backed securities are subject to, among other things, prepayment and extension risks. (Forward Managed Futures Strategy Fund, Forward Total MarketPlus Fund)
Investing in a non-diversified fund involves the risk of greater price fluctuation than a more diversified portfolio. (Forward Endurance Long/Short Fund, Forward Frontier Strategy Fund, Forward Global Credit Long/Short Fund, Forward Global Infrastructure Fund, Forward International Real Estate Fund, Forward Managed Futures Strategy Fund, Forward Real Estate Long/Short Fund, Forward Select Income Fund)
Higher portfolio turnover rates will involve greater transaction costs, and may increase the potential for taxable distributions being paid to shareholders. (Forward Tactical Enhanced Fund)
Investing in the real estate industry or in real estate-related securities involves the risks associated with direct ownership of real estate which include, among other things, changes in economic conditions (e.g., interest rates), the macro real estate development market, government intervention (e.g., property taxes) or environmental disasters. These risks may also affect the value of equities that service the real estate sector. (Forward International Real Estate Fund, Forward Real Estate Long/Short Fund, Forward Select Income Fund)
Short selling involves additional investment risks and transaction costs, and creates leverage, which can increase the risk and volatility of a fund. (Forward Endurance Long/Short Fund, Forward Global Credit Long/Short Fund, Forward Real Estate Long/Short Fund, Forward Tactical Enhanced Fund)
Investing in smaller companies generally will present greater investment risks, including greater price volatility, greater sensitivity to changing economic conditions and less liquidity than investing in larger, more mature companies. (Forward Endurance Long/Short Fund, Forward International Small Companies Fund)
Alternative strategies typically are subject to increased risk and loss of principal. Consequently, investments such as mutual funds which focus on alternative strategies are not suitable for all investors. (Forward Endurance Long/Short Fund, Forward Global Credit Long/Short Fund, Forward Managed Futures Strategy Fund, Forward Real Estate Long/Short Fund, Forward Tactical Enhanced Fund)
There is no guarantee the companies in our portfolio will continue to pay dividends. (Forward Emerging Markets Fund, Forward International Dividend Fund)
Disclosure of Fund Expenses (Unaudited)
For the Six Months Ended June 30, 2013
As a shareholder of the Forward Funds, you incur two types of costs: (1) transaction costs, including applicable sales charges (loads); and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, shareholder services fees and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the (six-month) period and held for the entire period January 1, 2013 through June 30, 2013.
Actual Expenses
The first line for each share class of each Fund in the table provides information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the applicable line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example For Comparison Purposes
The second line for each share class of each Fund in the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table below are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees or exchange fees. Therefore, the second line for each share class of each Fund within the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If these transactional costs were included, your costs would have been higher.
| | | | | | | | | | | | | | | | |
| Forward Frontier Strategy Fund | | Beginning
Account Value
01/01/13 | | | Ending
Account Value
06/30/13 | | | Expense
Ratio(a) | | | Expenses Paid
During Period(b)
01/01/13-06/30/13 | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,092.90 | | | | 1.41% | | | $ | 7.32 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.80 | | | | 1.41% | | | $ | 7.05 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,094.70 | | | | 1.12% | | | $ | 5.82 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,019.24 | | | | 1.12% | | | $ | 5.61 | |
| Advisor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,094.70 | | | | 1.12% | | | $ | 5.82 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,019.24 | | | | 1.12% | | | $ | 5.61 | |
| Class Z | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,094.50 | | | | 1.02% | | | $ | 5.30 | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,019.74 | | | | 1.02% | | | $ | 5.11 | |
| | | | |
| Forward High Yield Bond Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,014.00 | | | | 1.22% | | | $ | 6.09 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,018.74 | | | | 1.22% | | | $ | 6.11 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,015.80 | | | | 0.81% | | | $ | 4.05 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,020.78 | | | | 0.81% | | | $ | 4.06 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,011.40 | | | | 1.71% | | | $ | 8.53 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,016.31 | | | | 1.71% | | | $ | 8.55 | |
Disclosure of Fund Expenses (Unaudited)
For the Six Months Ended June 30, 2013
| | | | | | | | | | | | | | | | |
Forward High Yield Bond Fund (continued) | | Beginning
Account Value
01/01/13 | | | Ending
Account Value
06/30/13 | | | Expense
Ratio(a) | | | Expenses Paid
During Period(b)
01/01/13-06/30/13 | |
| Class Z | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,016.30 | | | | 0.70% | | | $ | 3.50 | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,021.32 | | | | 0.70% | | | $ | 3.51 | |
| | | | |
| Forward Investment Grade Fixed-Income Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 969.40 | | | | 1.38% | | | $ | 6.74 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.95 | | | | 1.38% | | | $ | 6.90 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 972.30 | | | | 0.99% | | | $ | 4.84 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,019.89 | | | | 0.99% | | | $ | 4.96 | |
| Class Z | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 972.70 | | | | 0.87% | | | $ | 4.26 | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,020.48 | | | | 0.87% | | | $ | 4.36 | |
| | | | |
| Forward Total MarketPlus Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,123.50 | | | | 1.25% | | | $ | 6.58 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,018.60 | | | | 1.25% | | | $ | 6.26 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,124.70 | | | | 0.85% | | | $ | 4.48 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,020.58 | | | | 0.85% | | | $ | 4.26 | |
| Class Z | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,126.30 | | | | 0.75% | | | $ | 3.95 | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,021.08 | | | | 0.75% | | | $ | 3.76 | |
| | | | |
| Forward U.S. Government Money Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,000.00 | | | | 0.27% | | | $ | 1.34 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,023.46 | | | | 0.27% | | | $ | 1.35 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,000.00 | | | | 0.27% | | | $ | 1.34 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,023.46 | | | | 0.27% | | | $ | 1.35 | |
| Class A | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,000.00 | | | | 0.27% | | | $ | 1.34 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,023.46 | | | | 0.27% | | | $ | 1.35 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,000.00 | | | | 0.27% | | | $ | 1.34 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,023.46 | | | | 0.27% | | | $ | 1.35 | |
Disclosure of Fund Expenses (Unaudited)
For the Six Months Ended June 30, 2013
| | | | | | | | | | | | | | | | |
Forward U.S. Government Money Fund (continued) | | Beginning
Account Value
01/01/13 | | | Ending
Account Value
06/30/13 | | | Expense
Ratio(a) | | | Expenses Paid
During Period(b)
01/01/13-06/30/13 | |
| Class Z | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,000.00 | | | | 0.27% | | | $ | 1.34 | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,023.46 | | | | 0.27% | | | $ | 1.35 | |
| | | | |
| Forward Balanced Allocation Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,016.80 | | | | 0.78% | | | $ | 3.90 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,020.93 | | | | 0.78% | | | $ | 3.91 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,019.30 | | | | 0.28% | | | $ | 1.40 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,023.41 | | | | 0.28% | | | $ | 1.40 | |
| Class A | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,017.60 | | | | 0.63% | | | $ | 3.15 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,021.67 | | | | 0.63% | | | $ | 3.16 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,014.30 | | | | 1.28% | | | $ | 6.39 | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,018.45 | | | | 1.28% | | | $ | 6.41 | |
| | | | |
| Forward Growth & Income Allocation Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,026.90 | | | | 0.80% | | | $ | 4.02 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,020.83 | | | | 0.80% | | | $ | 4.01 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,029.50 | | | | 0.30% | | | $ | 1.51 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,023.31 | | | | 0.30% | | | $ | 1.51 | |
| Class A | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,027.80 | | | | 0.65% | | | $ | 3.27 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,021.57 | | | | 0.65% | | | $ | 3.26 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,024.30 | | | | 1.30% | | | $ | 6.52 | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,018.35 | | | | 1.30% | | | $ | 6.51 | |
| | | | |
| Forward Growth Allocation Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,029.00 | | | | 0.84% | | | $ | 4.23 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,020.63 | | | | 0.84% | | | $ | 4.21 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,032.20 | | | | 0.34% | | | $ | 1.71 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,023.11 | | | | 0.34% | | | $ | 1.71 | |
June 30, 2013
Disclosure of Fund Expenses (Unaudited)
For the Six Months Ended June 30, 2013
| | | | | | | | | | | | | | | | |
Forward Growth Allocation Fund (continued) | | Beginning
Account Value
01/01/13 | | | Ending
Account Value
06/30/13 | | | Expense
Ratio(a) | | | Expenses Paid
During Period(b)
01/01/13-06/30/13 | |
| Class A | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,030.50 | | | | 0.69% | | | $ | 3.47 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,021.37 | | | | 0.69% | | | $ | 3.46 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,027.20 | | | | 1.34% | | | $ | 6.74 | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,018.15 | | | | 1.34% | | | $ | 6.71 | |
| | | | |
| Forward Income & Growth Allocation Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,001.00 | | | | 0.86% | | | $ | 4.27 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,020.53 | | | | 0.86% | | | $ | 4.31 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,002.80 | | | | 0.30% | | | $ | 1.49 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,023.31 | | | | 0.30% | | | $ | 1.51 | |
| Class A | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,001.80 | | | | 0.72% | | | $ | 3.57 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,021.22 | | | | 0.72% | | | $ | 3.61 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 999.00 | | | | 1.35% | | | $ | 6.69 | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,018.10 | | | | 1.35% | | | $ | 6.76 | |
| | | | |
| Forward Income Builder Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,006.00 | | | | 0.98% | | | $ | 4.87 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,019.93 | | | | 0.98% | | | $ | 4.91 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,008.60 | | | | 0.48% | | | $ | 2.39 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,022.41 | | | | 0.48% | | | $ | 2.41 | |
| Class A | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,007.70 | | | | 0.73% | | | $ | 3.63 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,021.17 | | | | 0.73% | | | $ | 3.66 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,004.00 | | | | 1.48% | | | $ | 7.35 | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.46 | | | | 1.48% | | | $ | 7.40 | |
| | | | |
| Forward Multi-Strategy Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,018.40 | | | | 1.23% | | | $ | 6.16 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,018.70 | | | | 1.23% | | | $ | 6.16 | |
Disclosure of Fund Expenses (Unaudited)
For the Six Months Ended June 30, 2013
| | | | | | | | | | | | | | | | |
Forward Multi-Strategy Fund (continued) | | Beginning
Account Value
01/01/13 | | | Ending
Account Value
06/30/13 | | | Expense
Ratio(a) | | | Expenses Paid
During Period(b)
01/01/13-06/30/13 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,021.60 | | | | 0.72% | | | $ | 3.61 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,021.22 | | | | 0.72% | | | $ | 3.61 | |
| Class A | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,020.20 | | | | 1.08% | | | $ | 5.41 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,019.44 | | | | 1.08% | | | $ | 5.41 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,016.10 | | | | 1.73% | | | $ | 8.65 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,016.22 | | | | 1.73% | | | $ | 8.65 | |
(a) Annualized, based on the Fund’s most recent fiscal half year expenses.
(b) Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year (181), then divided by 365.
June 30, 2013
Summary of Portfolio Holdings (Note 11) (Unaudited)
Under Securities and Exchange Commission Rules, all funds are required to include in their annual and semi-annual shareholder reports a presentation of portfolio holdings in a table, chart or graph by reasonably identifiable categories. The following tables which present portfolio holdings as a percent of total net assets are provided in compliance with such requirements.
| | | | | | |
| Forward Frontier Strategy Fund* | | | | | | |
Agency Pass-Through Securities | | | | | 29.82% | |
Corporate Bonds | | | | | 18.58% | |
U.S. Treasury Bonds & Notes | | | | | 17.41% | |
Municipal Bonds | | | | | 5.79% | |
Exchange-Traded Funds | | | | | 2.57% | |
Net Cash & Cash Equivalents | | | | | 25.83% | |
| | | | | 100.00% | |
| | |
| Forward High Yield Bond Fund | | | | | | |
Energy | | | | | 19.22% | |
Consumer Non-Cyclical | | | | | 18.65% | |
Consumer Cyclical | | | | | 16.84% | |
Communications | | | | | 13.17% | |
Industrials | | | | | 11.66% | |
Financials | | | | | 10.20% | |
Basic Materials | | | | | 2.73% | |
Utilities | | | | | 1.25% | |
Technology | | | | | 1.01% | |
Municipal Bonds | | | | | 0.80% | |
Net Cash & Cash Equivalents | | | | | 4.47% | |
| | | | | 100.00% | |
| | |
| Forward Investment Grade Fixed-Income Fund* | | | | | | |
U.S. Government Agency Securities | | | | | 52.26% | |
Corporate Bonds | | | | | 21.56% | |
Agency Pass-Through Securities | | | | | 6.48% | |
Municipal Bonds | | | | | 5.56% | |
Asset-Backed Securities | | | | | 5.24% | |
Collateralized Mortgage Obligations | | | | | 4.42% | |
Foreign Government Obligations | | | | | 3.11% | |
Net Cash & Cash Equivalents | | | | | 1.37% | |
| | | | | 100.00% | |
| | |
| Forward Total MarketPlus Fund* | | | | | | |
Exchange-Traded Funds | | | | | 45.07% | |
Agency Pass-Through Securities | | | | | 14.73% | |
Corporate Bonds | | | | | 5.13% | |
Net Cash & Cash Equivalents | | | | | 35.07% | |
| | | | | 100.00% | |
| | | | | | | | |
| Forward U.S. Government Money Fund | | | | | |
Repurchase Agreements | | | | | | | 83.66% | |
U.S. Agency Bonds | | | | | | | 8.38% | |
Other Commercial Paper | | | | | | | 5.10% | |
Net Cash & Cash Equivalents | | | | | | | 2.86% | |
| | | | | | | 100.00% | |
|
| Forward Balanced Allocation Fund | |
Underlying Forward Fund and Fund
Advisor or Sub-advisor | | # of Issues | | | Allocation | |
Forward Investment Grade Fixed-Income Fund — Pacific Investment Management Co. | | | 75 | | | | 19.72% | |
Forward International Dividend Fund — Forward Management | | | 134 | | | | 18.35% | (a) |
Forward Total MarketPlus Fund — Forward Management | | | 151 | | | | 9.62% | |
Forward Select EM Dividend Fund — Forward Management | | | 92 | | | | 9.50% | (a) |
Forward EM Corporate Debt Fund — SW Asset Management, LLC | | | 109 | | | | 8.62% | (a) |
Forward Commodity Long/Short Strategy Fund — Forward Management | | | 350 | | | | 7.40% | (a) |
Forward Managed Futures Strategy Fund — Forward Management | | | 4 | | | | 5.37% | (a) |
Forward High Yield Bond Fund — First Western Capital Management Co. | | | 83 | | | | 4.04% | |
Forward Frontier Strategy Fund — Forward Management | | | 140 | | | | 3.18% | |
Forward International Real Estate Fund — Forward Management | | | 77 | | | | 1.67% | (a) |
Forward Real Estate Fund — Forward Management | | | 69 | | | | 1.23% | (a) |
Net Cash & Cash Equivalents | | | | | | | 11.30% | |
| | | | | | | 100.00% | |
|
| Forward Growth & Income Allocation Fund | |
Underlying Forward Fund and Fund
Advisor or Sub-advisor | | # of Issues | | | Allocation | |
Forward International Dividend Fund — Forward Management | | | 134 | | | | 25.65% | (a) |
Summary of Portfolio Holdings (Note 11) (Unaudited)
| | | | | | | | |
| Forward Growth & Income Allocation Fund (continued) | |
Underlying Forward Fund and Fund
Advisor or Sub-advisor | | # of Issues | | | Allocation | |
Forward Select EM Dividend Fund — Forward Management | | | 92 | | | | 13.53% | (a) |
Forward Total MarketPlus Fund — Forward Management | | | 151 | | | | 13.10% | |
Forward Investment Grade Fixed-Income Fund — Pacific Investment Management Co. | | | 75 | | | | 11.78% | |
Forward Commodity Long/Short Strategy Fund — Forward Management | | | 350 | | | | 7.08% | (a) |
Forward EM Corporate Debt Fund — SW Asset Management, LLC | | | 109 | | | | 5.28% | (a) |
Forward Managed Futures Strategy Fund — Forward Management | | | 4 | | | | 5.22% | (a) |
Forward Frontier Strategy Fund — Forward Management | | | 140 | | | | 4.15% | |
Forward High Yield Bond Fund — First Western Capital Management Co. | | | 83 | | | | 2.31% | |
Forward International Real Estate Fund — Forward Management | | | 77 | | | | 1.64% | (a) |
Forward Real Estate Fund — Forward Management | | | 69 | | | | 1.21% | (a) |
Net Cash & Cash Equivalents | | | | | | | 9.05% | |
| | | | | | | 100.00% | |
|
| Forward Growth Allocation Fund | |
Underlying Forward Fund and Fund
Advisor or Sub-advisor | | # of Issues | | | Allocation | |
Forward International Dividend Fund — Forward Management | | | 134 | | | | 30.78% | (a) |
Forward Select EM Dividend Fund — Forward Management | | | 92 | | | | 15.99% | (a) |
Forward Total MarketPlus Fund — Forward Management | | | 151 | | | | 15.62% | |
Forward Investment Grade Fixed-Income Fund — Pacific Investment Management Co. | | | 75 | | | | 6.47% | |
Forward Managed Futures Strategy Fund — Forward Management | | | 4 | | | | 5.23% | (a) |
Forward Frontier Strategy Fund — Forward Management | | | 140 | | | | 5.07% | |
Forward International Real Estate Fund — Forward Management | | | 77 | | | | 3.76% | (a) |
| | | | | | | | |
Forward Real Estate Fund — Forward Management | | | 69 | | | | 3.63% | (a) |
Forward EM Corporate Debt Fund — SW Asset Management, LLC | | | 109 | | | | 2.96% | (a) |
Forward Commodity Long/Short Strategy Fund — Forward Management | | | 350 | | | | 2.62% | (a) |
Forward High Yield Bond Fund — First Western Capital Management Co. | | | 83 | | | | 1.36% | |
Net Cash & Cash Equivalents | | | | | | | 6.51% | |
| | | | | | | 100.00% | |
|
| Forward Income & Growth Allocation Fund | |
Underlying Forward Fund and Fund
Advisor or Sub-advisor | | # of Issues | | | Allocation | |
Forward Investment Grade Fixed-Income Fund — Pacific Investment Management Co. | | | 75 | | | | 29.56% | |
Forward EM Corporate Debt Fund — SW Asset Management, LLC | | | 109 | | | | 12.92% | (a) |
Forward International Dividend Fund — Forward Management | | | 134 | | | | 11.18% | (a) |
Forward High Yield Bond Fund — First Western Capital Management Co. | | | 83 | | | | 6.13% | |
Forward Total MarketPlus Fund — Forward Management | | | 151 | | | | 5.89% | |
Forward Select EM Dividend Fund — Forward Management | | | 92 | | | | 5.76% | (a) |
Forward Commodity Long/Short Strategy Fund — Forward Management | | | 350 | | | | 5.55% | (a) |
Forward Managed Futures Strategy Fund — Forward Management | | | 4 | | | | 5.50% | (a) |
Forward Frontier Strategy Fund — Forward Management | | | 140 | | | | 1.84% | |
Forward International Real Estate Fund — Forward Management | | | 77 | | | | 0.90% | (a) |
Forward Real Estate Fund — Forward Management | | | 69 | | | | 0.69% | (a) |
Net Cash & Cash Equivalents | | | | | | | 14.08% | |
| | | | | | | 100.00% | |
|
| Forward Income Builder Fund | |
Underlying Forward Fund and Fund
Advisor or Sub-advisor | | # of Issues | | | Allocation | |
Forward Select Income Fund — Forward Management | | | 132 | | | | 24.52% | (a) |
Summary of Portfolio Holdings (Note 11) (Unaudited)
| | | | | | | | |
| Forward Income Builder Fund (continued) | |
Underlying Forward Fund and Fund
Advisor or Sub-advisor | | # of Issues | | | Allocation | |
Forward EM Corporate Debt Fund — SW Asset Management, LLC | | | 109 | | | | 24.31% | (a) |
Forward International Dividend Fund — Forward Management | | | 134 | | | | 24.03% | (a) |
Forward Global Infrastructure Fund — Forward Management | | | 101 | | | | 14.73% | (a) |
Forward High Yield Bond Fund — First Western Capital Management Co. | | | 83 | | | | 9.88% | |
Net Cash & Cash Equivalents | | | | | | | 2.53% | |
| | | | | | | 100.00% | |
|
| Forward Multi-Strategy Fund | |
Underlying Forward Fund and Fund
Advisor or Sub-advisor | | # of Issues | | | Allocation | |
Forward Tactical Enhanced Fund — Forward Management | | | 1 | | | | 15.44% | (a) |
Forward International Dividend Fund — Forward Management | | | 134 | | | | 14.82% | (a) |
Forward Emerging Markets Fund — Forward Management | | | 64 | | | | 14.75% | (a) |
Forward Global Credit Long/Short Fund — SW Asset Management, LLC | | | 24 | | | | 10.41% | (a) |
Forward Real Estate Long/Short Fund — Forward Management | | | 119 | | | | 10.12% | (a) |
Forward Frontier Strategy Fund — Forward Management | | | 140 | | | | 7.40% | |
Forward Select Income Fund — Forward Management | | | 132 | | | | 7.12% | (a) |
Forward Managed Futures Strategy Fund — Forward Management | | | 4 | | | | 5.24% | (a) |
Forward Endurance Long/Short Fund — Forward Management | | | 53 | | | | 5.11% | (a) |
Forward Global Infrastructure Fund — Forward Management | | | 101 | | | | 3.04% | (a) |
Forward International Small Companies Fund — Pictet Asset Management | | | 109 | | | | 2.65% | (a) |
Forward International Real Estate Fund — Forward Management | | | 77 | | | | 1.76% | (a) |
Forward Total MarketPlus Fund — Forward Management | | | 151 | | | | 1.69% | |
Net Cash & Cash Equivalents | | | | | | | 0.45% | |
| | | | | | | 100.00% | |
These allocations may not reflect the current or future position of the portfolios.
* Weightings reflect long positions and excludes securities sold short, short-term instruments and derivative instruments.
(a) The Forward Commodity Long/Short Strategy Fund, the Forward EM Corporate Debt Fund, the Forward Emerging Markets Fund, the Forward Endurance Long/Short Fund, the Forward Global Credit Long/Short Fund, the Forward Global Infrastructure Fund, the Forward International Dividend Fund, the Forward International Real Estate Fund, the Forward International Small Companies Fund, the Forward Managed Futures Strategy Fund, the Forward Real Estate Fund, the Forward Real Estate Long/Short Fund, the Forward Select EM Dividend Fund, the Forward Select Income Fund and the Forward Tactical Enhanced Fund’s June 30, 2013 Semi-Annual Report may be obtained at www.forwardinvesting.com.
Portfolio of Investments (Note 11) (Unaudited)
Forward Frontier Strategy Fund
| | | | | | | | | | |
| Shares | | | | | | | Value (Note 2) | |
| | |
| | Exchange-Traded Funds: 2.57% | | | | | | |
| | | |
| | 71,400 | | | iShares® MSCI Frontier 100 Index Fund | | | | $ | 2,096,304 | |
| | | |
| | | | Total Exchange-Traded Funds
(Cost $2,052,280) | | | | | 2,096,304 | |
| |
Principal
Amount | | | |
| | |
| | Agency Pass-Through Securities: 29.82% | | | | | | |
| | Federal Home Loan Bank (FHLB): 1.92% | | | | | | |
| | | |
| | $ 100,000 | | | FHLB
4.750%, 11/14/14 | | | | | 106,125 | |
| | | |
| | 1,400,000 | | | 5.250%, 06/18/14 | | | | | 1,468,584 | |
| | | |
| | | | | | | | | 1,574,709 | |
| | | | | | | | | | |
| | Federal Home Loan Mortgage Corp (FHLMC): 10.14% | |
| | | |
| | 500,000 | | | FHLMC
0.450%, 11/24/15 | | | | | 498,861 | |
| | | |
| | 250,000 | | | 0.625%, 03/06/15 | | | | | 250,753 | |
| | | |
| | 500,000 | | | 0.750%, 09/28/15 | | | | | 501,804 | |
| | | |
| | 250,000 | | | 0.850%, 02/24/16 | | | | | 250,510 | |
| | | |
| | 486,351 | | | 0.860%, 03/01/30(a) | | | | | 499,805 | |
| | | |
| | 568,476 | | | 0.871%, 02/01/30(a) | | | | | 584,273 | |
| | | |
| | 389,039 | | | 0.946%, 04/01/30(a) | | | | | 401,842 | |
| | | |
| | 2,000,000 | | | 1.200%, 11/19/18 | | | | | 1,936,110 | |
| | | |
| | 57,260 | | | 2.157%, 08/01/19(a) | | | | | 61,020 | |
| | | |
| | 71,410 | | | 2.231%, 06/01/30(a) | | | | | 75,897 | |
| | | |
| | 26,059 | | | 2.259%, 01/01/36(a) | | | | | 27,511 | |
| | | |
| | 36,106 | | | 2.260%, 09/01/28(a) | | | | | 38,429 | |
| | | |
| | 25,863 | | | 2.321%, 12/01/30(a) | | | | | 27,165 | |
| | | |
| | 21,463 | | | 2.349%, 11/01/32(a) | | | | | 22,732 | |
| | | |
| | 15,137 | | | 2.349%, 05/01/31(a) | | | | | 16,147 | |
| | | |
| | 31,695 | | | 2.360%, 08/01/37(a) | | | | | 33,677 | |
| | | |
| | 17,768 | | | 2.385%, 07/01/31(a) | | | | | 19,025 | |
| | | |
| | 218,275 | | | 2.396%, 05/01/35(a) | | | | | 232,480 | |
| | | |
| | 41,171 | | | 2.429%, 02/01/34(a) | | | | | 43,811 | |
| | | |
| | 49,516 | | | 2.455%, 04/01/32(a) | | | | | 49,721 | |
| | | |
| | 12,564 | | | 2.500%, 08/01/31(a) | | | | | 12,626 | |
| | | |
| | 2,995 | | | 2.501%, 03/01/18(a) | | | | | 3,033 | |
| | | |
| | 59,661 | | | 2.519%, 08/01/17(a) | | | | | 60,218 | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
| | | |
| | $ 35,649 | | | 2.525%, 06/01/36(a) | | | | $ | 38,098 | |
| | | |
| | 3,805 | | | 2.526%, 07/01/29(a) | | | | | 4,031 | |
| | | |
| | 42,649 | | | 2.590%, 12/01/36(a) | | | | | 45,394 | |
| | | |
| | 19,854 | | | 2.625%, 04/01/33(a) | | | | | 21,130 | |
| | | |
| | 43,055 | | | 2.654%, 08/01/36(a) | | | | | 43,550 | |
| | | |
| | 44,676 | | | 2.678%, 01/01/37(a) | | | | | 47,682 | |
| | | |
| | 14,806 | | | 2.718%, 03/01/36(a) | | | | | 15,767 | |
| | | |
| | 64,556 | | | 2.750%, 05/01/33(a) | | | | | 68,794 | |
| | | |
| | 27,534 | | | 2.903%, 08/01/35(a) | | | | | 29,204 | |
| | | |
| | 5,878 | | | 2.942%, 12/01/18(a) | | | | | 5,872 | |
| | | |
| | 25,324 | | | 2.975%, 06/01/37(a) | | | | | 26,364 | |
| | | |
| | 16,327 | | | 3.033%, 08/01/31(a) | | | | | 16,570 | |
| | | |
| | 951,231 | | | 3.500%, 10/01/32 | | | | | 983,658 | |
| | | |
| | 1,049,678 | | | 3.500%, 04/01/32 | | | | | 1,085,541 | |
| | | |
| | 169,106 | | | 5.433%, 11/01/19(a) | | | | | 177,777 | |
| | | |
| | | | | | | | | 8,256,882 | |
| | | | | | | | | | |
| | Federal National Mortgage Association (FNMA): 12.69% | |
| | | |
| | 1,400,000 | | | FNMA
0.375%, 03/16/15 | | | | | 1,400,750 | |
| | | |
| | 500,000 | | | 0.580%, 02/26/16 | | | | | 498,158 | |
| | | |
| | 1,000,000 | | | 1.375%, 11/15/16 | | | | | 1,014,247 | |
| | | |
| | 266,782 | | | 1.378%, 09/01/44(a) | | | | | 271,256 | |
| | | |
| | 87,991 | | | 1.378%, 10/01/44(a) | | | | | 89,801 | |
| | | |
| | 104,266 | | | 1.578%, 06/01/40(a) | | | | | 108,420 | |
| | | |
| | 25,697 | | | 1.875%, 07/01/21(a) | | | | | 26,094 | |
| | | |
| | 11,060 | | | 1.875%, 01/01/20(a) | | | | | 11,506 | |
| | | |
| | 80,653 | | | 1.910%, 08/01/34(a) | | | | | 84,112 | |
| | | |
| | 903,639 | | | 1.941%, 01/01/34(a) | | | | | 941,838 | |
| | | |
| | 164,070 | | | 2.031%, 06/01/34(a) | | | | | 171,082 | |
| | | |
| | 23,851 | | | 2.038%, 11/01/18(a) | | | | | 25,181 | |
| | | |
| | 37,121 | | | 2.147%, 03/01/18(a) | | | | | 37,752 | |
| | | |
| | 129,753 | | | 2.153%, 11/01/35(a) | | | | | 136,541 | |
| | | |
| | 795,508 | | | 2.202%, 03/01/36(a) | | | | | 839,626 | |
| | | |
| | 37,821 | | | 2.210%, 05/01/25(a) | | | | | 38,318 | |
| | | |
| | 14,404 | | | 2.212%, 08/01/30(a) | | | | | 15,312 | |
| | | | |
| See Notes to Financial Statements | | 25 | | June 30, 2013 |
Portfolio of Investments (Note 11) (Unaudited)
Forward Frontier Strategy Fund
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
| | Federal National Mortgage Association (FNMA) (continued): 12.69% | |
| | | |
| | $ 10,178 | | | 2.249%, 05/01/18(a) | | | | $ | 10,216 | |
| | | |
| | 2,000,000 | | | 2.250%, 03/15/16 | | | | | 2,084,399 | |
| | | |
| | 39,404 | | | 2.294%, 05/01/36(a) | | | | | 41,831 | |
| | | |
| | 67,994 | | | 2.318%, 06/01/29(a) | | | | | 68,810 | |
| | | |
| | 52,037 | | | 2.320%, 06/01/32(a) | | | | | 55,420 | |
| | | |
| | 5,586 | | | 2.335%, 02/01/37(a) | | | | | 5,970 | |
| | | |
| | 41,503 | | | 2.410%, 01/01/35(a) | | | | | 44,757 | |
| | | |
| | 15,253 | | | 2.414%, 11/01/29(a) | | | | | 16,264 | |
| | | |
| | 121,403 | | | 2.445%, 08/01/33(a) | | | | | 128,756 | |
| | | |
| | 430,275 | | | 2.480%, 05/01/34(a) | | | | | 457,852 | |
| | | |
| | 13,211 | | | 2.490%, 09/01/33(a) | | | | | 14,159 | |
| | | |
| | 93,907 | | | 2.595%, 06/01/34(a) | | | | | 94,332 | |
| | | |
| | 16,769 | | | 2.625%, 08/01/23(a) | | | | | 17,849 | |
| | | |
| | 22,216 | | | 2.637%, 10/01/34(a) | | | | | 23,698 | |
| | | |
| | 73,162 | | | 2.646%, 11/01/33(a) | | | | | 73,315 | |
| | | |
| | 34,222 | | | 2.685%, 03/01/19(a) | | | | | 34,252 | |
| | | |
| | 136,336 | | | 2.700%, 07/01/35(a) | | | | | 145,613 | |
| | | |
| | 1,810 | | | 2.705%, 03/01/15(a) | | | | | 1,830 | |
| | | |
| | 66,716 | | | 2.706%, 10/01/33(a) | | | | | 70,975 | |
| | | |
| | 71,712 | | | 2.741%, 08/01/24(a) | | | | | 75,729 | |
| | | |
| | 33,055 | | | 2.779%, 03/01/36(a) | | | | | 34,151 | |
| | | |
| | 22,653 | | | 2.809%, 06/01/34(a) | | | | | 24,264 | |
| | | |
| | 119,558 | | | 2.918%, 10/01/34(a) | | | | | 127,690 | |
| | | |
| | 827,429 | | | 3.000%, 03/01/27 | | | | | 853,225 | |
| | | |
| | 34,216 | | | 3.245%, 08/01/18(a) | | | | | 35,976 | |
| | | |
| | 22,003 | | | 3.266%, 05/01/19(a) | | | | | 22,384 | |
| | | |
| | 52,970 | | | 3.890%, 11/01/21(a) | | | | | 53,392 | |
| | | |
| | | | | | | | | 10,327,103 | |
| | | | | | | | | | |
| | Government National Mortgage Association (GNMA): 5.07% | |
| | | |
| | 207,255 | | | GNMA
1.625%, 10/20/33(a) | | | | | 216,332 | |
| | | |
| | 212,313 | | | 1.750%, 05/20/31(a) | | | | | 221,671 | |
| | | |
| | 139,141 | | | 1.750%, 05/20/36(a) | | | | | 145,279 | |
| | | |
| | 189,432 | | | 1.750%, 05/20/34(a) | | | | | 197,785 | |
| | | |
| | 389,675 | | | 1.750%, 04/20/34(a) | | | | | 406,859 | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
| | | |
| | $ 67,830 | | | 1.750%, 08/20/25(a) | | | | $ | 70,907 | |
| | | |
| | 77,414 | | | 1.750%, 09/20/21(a) | | | | | 79,420 | |
| | | |
| | 59,120 | | | 2.000%, 11/20/36(a) | | | | | 61,908 | |
| | | |
| | 80,468 | | | 2.125%, 01/20/37(a) | | | | | 84,056 | |
| | | |
| | 982,762 | | | 2.500%, 12/15/27 | | | | | 994,048 | |
| | | |
| | 768,738 | | | 3.000%, 10/20/26 | | | | | 798,882 | |
| | | |
| | 805,463 | | | 3.500%, 07/20/27 | | | | | 846,771 | |
| | | |
| | 6,106 | | | 4.253%, 10/16/30 | | | | | 6,101 | |
| | | |
| | | | | | | | | 4,130,019 | |
| | | |
| | | | Total Agency Pass-Through Securities
(Cost $24,333,462) | | | | | 24,288,713 | |
| | |
| | Corporate Bonds: 18.58% | | | | | | |
| | Basic Materials: 1.27% | | | | | | |
| | | |
| | 1,000,000 | | | Dow Chemical Co., Sr. Unsec. Notes
2.500%, 02/15/16 | | | | | 1,031,822 | |
| | | | | | | | | | |
| | Consumer Non-Cyclical: 1.14% | | | | | | |
| | | |
| | 500,000 | | | Genzyme Corp., Sr. Unsec. Notes
3.625%, 06/15/15 | | | | | 528,642 | |
| | | |
| | 100,000 | | | Johns Hopkins Health System Corp., Sr. Unsec. Notes
1.424%, 05/15/18 | | | | | 97,158 | |
| | | |
| | 300,000 | | | Quest Diagnostics, Inc., Gtd. Notes
1.134%, 03/24/14(a) | | | | | 301,206 | |
| | | |
| | | | | | | | | 927,006 | |
| | | | | | | | | | |
| | Consumer Cyclical: 1.49% | | | | | | |
| | | |
| | 1,200,000 | | | Daimler Finance North America Llc, Sr. Unsec. Notes
1.650%, 04/10/15(b) | | | | | 1,210,614 | |
| | | | | | | | | | |
| | Energy: 1.58% | | | | | | |
| | | |
| | 345,000 | | | Dominion Resources, Inc., Sr. Unsec. Notes
1.950%, 08/15/16 | | | | | 352,095 | |
| | | |
| | 500,000 | | | Noble Holding International, Ltd., Sr. Unsec. Notes
3.450%, 08/01/15 | | | | | 518,583 | |
| | | |
| | 400,000 | | | Total Capital SA, Sr. Unsec. Notes
3.125%, 10/02/15 | | | | | 418,936 | |
| | |
| | | | | | 1,289,614 | |
| | | | |
| June 30, 2013 | | 26 | | See Notes to Financial Statements |
Portfolio of Investments (Note 11) (Unaudited)
Forward Frontier Strategy Fund
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
| | Financials: 7.14% | | | | | | |
| | | |
| | $ 500,000 | | | Caterpillar Financial Services Corp., Sr. Unsec. Notes
2.050%, 08/01/16 | | | | $ | 511,815 | |
| | | |
| | 1,500,000 | | | ING Bank NV, Sr. Notes
1.597%, 10/18/13(a)(b) | | | | | 1,504,911 | |
| | | |
| | 1,450,000 | | | Merrill Lynch & Co. Inc., Sr. Unsec. Medium-Term Notes
0.737%, 01/15/15(a) | | | | | 1,434,307 | |
| | | |
| | 650,000 | | | MetLife Institutional Funding II, Sec. Notes
1.182%, 04/04/14(a)(b) | | | | | 654,186 | |
| | | |
| | 1,700,000 | | | National Australia Bank, Ltd., Sr. Unsec. Notes
0.998%, 04/11/14(a)(b) | | | | | 1,709,510 | |
| | | |
| | | | | | | | | 5,814,729 | |
| | | | | | | | | | |
| | Industrials: 1.79% | | | | | | |
| | | |
| | 100,000 | | | Emerson Electric Co., Sr. Unsec. Notes
5.000%, 12/15/14 | | | | | 106,262 | |
| | | |
| | 1,350,000 | | | United Technologies Corp., Sr. Unsec. Notes
1.800%, 06/01/17 | | | | | 1,355,796 | |
| | | |
| | | | | | | | | 1,462,058 | |
| | | | | | | | | | |
| | Technology: 2.19% | | | | | | |
| | |
| | 1,300,000 | | | Dell, Inc., Sr. Unsec. Notes
0.884%, 04/01/14(a) | | | 1,296,394 | |
| | |
| | 500,000 | | | Intel Corp., Sr. Unsec. Notes
1.350%, 12/15/17 | | | 489,661 | |
| | | |
| | | | | | | | | 1,786,055 | |
| | |
| | Telecommunication Services: 1.98% | | | | | | |
| | | |
| | 500,000 | | | AT&T, Inc., Sr. Unsec. Notes
0.660%, 02/12/16(a) | | | | | 497,563 | |
| | | |
| | 1,000,000 | | | 5.625%, 06/15/16 | | | | | 1,119,371 | |
| | | |
| | | | | | | | | 1,616,934 | |
| | |
| | | | Total Corporate Bonds
(Cost $15,202,094) | | | 15,138,832 | |
| | | | | | | | | | |
| | |
| | Municipal Bonds: 5.79% | | | | | | |
| | | |
| | 500,000 | | | City of Houston, Texas, General Obligation Taxable Refunding Bonds, Public Improvment, Series B
1.140%, 03/01/16 | | | | | 501,175 | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
| | | |
| | $ 500,000 | | | City of Montgomery, Alabama, General Obligation Taxable Unlimited Warrants, Series B
1.070%, 04/01/16 | | | | $ | 499,595 | |
| | | |
| | 750,000 | | | County of Loudoun Virginia, General Obligation Taxable Refunding Bonds, Series B
0.895%, 12/01/16 | | | | | 744,862 | |
| | | |
| | 250,000 | | | County of Milwaukee Wisconsin, General Obligation Taxable Unlimited Pension Refunding Bonds, Series B
1.282%, 12/01/16 | | | | | 249,768 | |
| | | |
| | 300,000 | | | Georgia Municipal Gas Authority, Taxable, Revenue Bonds, Gas Portfolio III
1.770%, 10/01/13 | | | | | 300,480 | |
| | | |
| | 500,000 | | | Maine State Housing Authority, Taxable, Revenue Bonds, Series A
1.190%, 11/15/16 | | | | | 498,520 | |
| | | |
| | 250,000 | | | Pequea Valley School District, Taxable General Obligation Unlimited Bonds, Series B
0.948%, 02/01/16 | | | | | 248,720 | |
| | | |
| | 500,000 | | | State of California, Taxable Various Purpose General Obligation Unlimited Bonds
1.050%, 02/01/16 | | | | | 500,505 | |
| | | |
| | 250,000 | | | Texas State Department of Housing & Community Affairs, Taxable Revenue Bonds, Series A
2.800%, 03/01/36 | | | | | 244,073 | |
| | | |
| | 455,000 | | | Virginia State Housing Development Authority, Taxable Revenue Bonds, Series B
2.000%, 04/01/19 | | | | | 440,749 | |
| | | |
| | 500,000 | | | Wise County, Virginia, Industrial Development Authority Facilities Lease, Taxable Revenue Bonds 1.700%, 02/01/17 | | | | | 491,440 | |
| | | |
| | | | Total Municipal Bonds
(Cost $4,761,077) | | | | | 4,719,887 | |
| | |
| | U.S. Treasury Bonds & Notes: 17.41% | | | | | | |
| | | |
| | 3,500,000 | | | U.S. Treasury Notes
0.250%, 04/15/16 | | | | | 3,465,956 | |
| | | |
| | 3,750,000 | | | 0.250%, 05/15/15 | | | | | 3,743,554 | |
| | | | |
| See Notes to Financial Statements | | 27 | | June 30, 2013 |
Portfolio of Investments (Note 11) (Unaudited)
Forward Frontier Strategy Fund
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
|
| | U.S. Treasury Bonds & Notes: 17.41% (continued) | |
| | | |
| | $3,000,000 | | | 0.375%, 06/15/15 | | | | $ | 3,000,702 | |
| | | |
| | 4,000,000 | | | 0.375%, 03/15/16 | | | | | 3,978,123 | |
| | | |
| | | | Total U.S. Treasury Bonds & Notes
(Cost $14,241,950) | | | | | 14,188,335 | |
| | | |
| | | | Total Investments: 74.17%
(Cost $60,590,863) | | | | | 60,432,071 | |
| | |
| | | | Net Other Assets and Liabilities: 25.83% | | | 21,044,224 | (c) |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 81,476,295 | |
Percentages are stated as a percent of net assets.
(a) Interest rate will change at a future date. Interest rate shown reflects the rate in effect at June 30, 2013.
(b) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in the ordinary course of business in transactions exempt from registration, normally to qualified institutional buyers. At period end, the aggregate market value of those securities was $5,079,221, representing 6.23% of net assets.
(c) Includes cash which is being held as collateral for swap contracts.
Total Return Swap Contracts
| | | | | | | | | | | | | | | | | | | | |
| Counter Party | | Reference Entry/Obligation | | Fund Pays | | Fund
Receives | | | Termination
Date | | | Notional
Amount | | | Net
Unrealized
Gain/(Loss) | |
Barclays Capital | | MSCI Frontier NR USD | | 3-month LIBOR plus 110 Bps | | | Total Return | | | | 12/23/13 | | | $ | 10,000,000 | | | $ | 988,910 | |
Barclays Capital | | MSCI Frontier NR USD | | 3-month LIBOR plus 110 Bps | | | Total Return | | | | 04/24/14 | | | | 10,000,154 | | | | 276,018 | |
Barclays Capital | | MSCI Frontier NR USD | | 3-month LIBOR plus 110 Bps | | | Total Return | | | | 07/28/14 | | | | 8,397,155 | | | | 7,090 | |
Goldman Sachs | | MSCI FM Daily Net Total Return Index | | 3-month LIBOR plus 95 Bps | | | Total Return | | | | 07/26/13 | | | | 6,462,467 | | | | 33,638 | |
Goldman Sachs | | MSCI FM Daily Net Total Return Index | | 3-month LIBOR plus 95 Bps | | | Total Return | | | | 05/27/14 | | | | 19,650,720 | | | | 102,286 | |
Goldman Sachs | | MSCI FM Daily Net Total Return Index | | 3-month LIBOR plus 95 Bps | | | Total Return | | | | 08/26/14 | | | | 19,650,720 | | | | 102,286 | |
Goldman Sachs | | MSCI FM Daily Net Total Return Index | | 3-month LIBOR plus 95 Bps | | | Total Return | | | | 06/25/14 | | | | 2,500,631 | | | | (150,681) | |
Goldman Sachs | | MSCI FM Daily Net Total Return Index | | 3-month LIBOR plus 105 Bps | | | Total Return | | | | 06/25/14 | | | | 1,339,841 | | | | (75,649) | |
| Total of Total Return Swap Contracts | | | | | | | | | | | | $ | 78,001,688 | | | $ | 1,283,898 | |
Investment Abbreviations:
Bps — Basis Points
Gtd. — Guaranteed
LIBOR — London Interbank Offered Rate
MSCI — Morgan Stanley Capital International
Sec. — Secured
Sr. — Senior
Unsec. — Unsecured
| | | | |
| June 30, 2013 | | 28 | | See Notes to Financial Statements |
Portfolio of Investments (Note 11) (Unaudited)
Forward High Yield Bond Fund
| | | | | | | | | | |
Principal Amount | | | | | | | Value (Note 2) | |
| | |
| | Corporate Bonds: 94.73% | | | | | | |
| | Basic Materials: 2.73% | | | | | | |
| | | |
| | $1,500,000 | | | ArcelorMittal, Sr. Unsec. Notes
6.125%, 06/01/18 | | | | $ | 1,550,625 | |
| | | |
| | 1,875,000 | | | Cornerstone Chemical Co., Sec. Notes
9.375%, 03/15/18(a) | | | | | 1,978,125 | |
| | | |
| | | | | | | | | 3,528,750 | |
| | | | | | | | | | |
| | Communications: 13.17% | | | | | | |
| | | |
| | 1,500,000 | | | Cablevision Systems Corp., Sr. Unsec. Notes
7.750%, 04/15/18 | | | | | 1,619,999 | |
| | |
| | 1,525,000 | | | CCO Holdings Llc/CCO Holdings Capital Corp., Sr.
Unsec. Notes 5.750%, 09/01/23(a) | | | 1,483,063 | |
| | | |
| | 1,640,000 | | | CenturyLink, Inc., Sr. Unsec. Notes, Series V
5.625%, 04/01/20 | | | | | 1,664,600 | |
| | | |
| | 1,275,000 | | | Cogent Communications Group, Inc., Sr. Sec. Notes 8.375%, 02/15/18(a) | | | | | 1,396,125 | |
| | | |
| | 1,500,000 | | | Digicel, Ltd., Sr. Unsec. Notes
6.000%, 04/15/21(a) | | | | | 1,421,250 | |
| | | |
| | 1,365,000 | | | DISH DBS Corp., Sr. Unsec. Notes
4.250%, 04/01/18(a) | | | | | 1,344,525 | |
| | | |
| | 1,290,000 | | | Gray Television, Inc., Sr. Unsec. Notes
7.500%, 10/01/20 | | | | | 1,322,250 | |
| | | |
| | 1,500,000 | | | GXS Worldwide, Inc., Sr. Sec. Notes
9.750%, 06/15/15 | | | | | 1,530,000 | |
| | | |
| | 1,125,000 | | | Level 3 Financing, Inc., Sr. Unsec. Notes
7.000%, 06/01/20 | | | | | 1,127,813 | |
| | | |
| | 1,400,000 | | | Nara Cable Funding, Ltd., First Lien Notes
8.875%, 12/01/18(a) | | | | | 1,442,000 | |
| | | |
| | 1,200,000 | | | Sinclair Television Group, Inc., Sr. Unsec. Notes
5.375%, 04/01/21 | | | | | 1,158,000 | |
| | | |
| | 1,500,000 | | | Windstream Corp., Sr. Unsec. Notes
7.500%, 06/01/22 | | | | | 1,537,500 | |
| | | |
| | | | | | | | | 17,047,125 | |
| | | | | | | | | | |
| | Consumer Cyclical: 16.84% | | | | | | |
| | |
| | 1,657,000 | | | Air Canada 2013-1 Class B Pass Through Trust,
Second Lien Notes
5.375%, 05/15/21(a) | | | 1,652,858 | |
| | |
| | 1,440,000 | | | Ashton Woods USA Llc/Ashton Woods Finance Co.,
Sr. Unsec. Notes
6.875%, 02/15/21(a) | | | 1,458,000 | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
| | | |
| | $1,698,000 | | | Express Llc/Express Finance Corp., Sr. Unsec. Notes
8.750%, 03/01/18 | | | | $ | 1,825,350 | |
| | | |
| | 1,500,000 | | | Fiesta Restaurant Group, Inc., Second Lien Notes
8.875%, 08/15/16 | | | | | 1,605,000 | |
| | | |
| | 1,650,000 | | | Hawaiian Airlines Pass Through Certificates, Second Lien Notes, Series B
4.950%, 01/15/22 | | | | | 1,563,375 | |
| | | |
| | 1,425,000 | | | KB Home, Sr. Unsec. Notes
9.100%, 09/15/17 | | | | | 1,603,125 | |
| | | |
| | 1,500,000 | | | Landry’s Holdings II, Inc., Sr. Unsec. Notes
10.250%, 01/01/18(a) | | | | | 1,560,000 | |
| | | |
| | 1,500,000 | | | Lennar Corp., Sr. Unsec. Notes
4.125%, 12/01/18(a) | | | | | 1,428,750 | |
| | | |
| | 1,500,000 | | | MGM Resorts International, Sr. Unsec. Notes
6.625%, 12/15/21 | | | | | 1,548,750 | |
| | | |
| | 1,500,000 | | | Pantry, Inc., Sr. Unsec. Notes
8.375%, 08/01/20 | | | | | 1,618,125 | |
| | | |
| | 1,490,000 | | | Penske Automotive Group, Inc., Sr. Sub. Notes
5.750%, 10/01/22 | | | | | 1,527,250 | |
| | | |
| | 1,600,000 | | | Rite Aid Corp., Sr. Unsec. Notes
9.250%, 03/15/20 | | | | | 1,774,000 | |
| | | |
| | 1,125,000 | | | Tops Holding II Corp., Sr. Unsec. PIK Notes
8.750%, 06/15/18(a) | | | | | 1,109,531 | |
| | |
| | 1,500,000 | | | Wynn Las Vegas Llc/Wynn Las Vegas Capital Corp., Sec. Notes
5.375%, 03/15/22 | | | 1,522,500 | |
| | | |
| | | | | | | | | 21,796,614 | |
| | | | | | | | | | |
| | Consumer Non-Cyclical: 18.65% | | | | | | |
| | | |
| | 1,550,000 | | | 313 Group, Inc., Sr. Unsec. Notes
8.750%, 12/01/20(a) | | | | | 1,484,125 | |
| | | |
| | 1,475,000 | | | Beverages & More, Inc., Sr. Sec. Notes
9.625%, 10/01/14(a) | | | | | 1,493,438 | |
| | | |
| | 1,054,000 | | | Bumble Bee Acquisition Corp., First Lien Notes
9.000%, 12/15/17(a) | | | | | 1,125,145 | |
| | | |
| | 1,292,000 | | | C&S Group Enterprises Llc, Notes
8.375%, 05/01/17(a) | | | | | 1,375,980 | |
| | | |
| | 1,500,000 | | | Capella Healthcare, Inc., Sr. Unsec. Notes
9.250%, 07/01/17 | | | | | 1,601,250 | |
| | | | |
| See Notes to Financial Statements | | 29 | | June 30, 2013 |
Portfolio of Investments (Note 11) (Unaudited)
Forward High Yield Bond Fund
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
|
| | |
| | Consumer Non-Cyclical (continued): 18.65% | | | | | | |
| | | |
| | $1,500,000 | | | DaVita HealthCare Partners, Inc., Sr. Unsec. Notes 5.750%, 08/15/22 | | | | $ | 1,503,750 | |
| | | |
| | 1,500,000 | | | Fresenius Medical Care US Finance II, Inc., Sr. Unsec. Notes
5.625%, 07/31/19(a) | | | | | 1,567,500 | |
| | | |
| | 1,262,000 | | | Harmony Foods Corp., Sr. Sec. Notes
10.000%, 05/01/16(a) | | | | | 1,334,565 | |
| | | |
| | 1,500,000 | | | HCA Holdings, Inc., Sr. Unsec.
Notes 7.750%, 05/15/21 | | | | | 1,623,750 | |
| | | |
| | 1,500,000 | | | HealthSouth Corp., Gtd. Notes
7.750%, 09/15/22 | | | | | 1,605,000 | |
| | | |
| | 1,500,000 | | | Prospect Medical Holdings, Inc., Sec. Notes
8.375%, 05/01/19(a) | | | | | 1,575,000 | |
| | | |
| | 1,500,000 | | | Reynolds Group Issuer, Inc./Reynolds Group Issuer Llc/Reynolds Group Issuer Lu, First Lien Notes
5.750%, 10/15/20 | | | | | 1,515,000 | |
| | | |
| | 1,575,000 | | | Sunstate Equipment Co. Llc/Sunstate Equipment Co., Inc., Sec. PIK Notes
12.000%, 06/15/16(a) | | | | | 1,732,500 | |
| | | |
| | 1,500,000 | | | Tenet Healthcare Corp., Sr. Unsec. Notes
6.750%, 02/01/20 | | | | | 1,460,625 | |
| | | |
| | 400,000 | | | VPII Escrow Corp., Sr. Unsec. Notes
6.750%, 08/15/18(a) | | | | | 410,500 | |
| | | |
| | 1,500,000 | | | Wells Enterprises, Inc., Sec. Notes
6.750%, 02/01/20(a) | | | | | 1,575,000 | |
| | |
| | 1,115,000 | | | YCC Holdings Llc/Yankee Finance, Inc., Sr. Unsec. PIK Notes
10.250%, 02/15/16 | | | 1,148,450 | |
| | | |
| | | | | | | | | 24,131,578 | |
| | | | | | | | | | |
| | Energy: 19.22% | | | | | | |
| | | |
| | 1,450,000 | | | Approach Resources, Inc., Sr. Unsec. Notes
7.000%, 06/15/21 | | | | | 1,468,125 | |
| | | |
| | 2,000,000 | | | Atlas Energy Holdings Operating Co. Llc/Atlas Resource Finance Corp., Sr. Unsec. Notes
7.750%, 01/15/21(a) | | | | | 1,919,999 | |
| | | |
| | 1,500,000 | | | Chaparral Energy, Inc., Sr. Unsec. Notes
7.625%, 11/15/22 | | | | | 1,537,500 | |
| | | |
| | 1,500,000 | | | Continental Resources, Inc., Sr. Unsec. Notes
5.000%, 09/15/22 | | | | | 1,533,750 | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
| | |
| | | | | | | | |
| | | |
| | $1,564,343 | | | EPE Holdings Llc/EP Energy Bond Co., Inc., Sr. Unsec. PIK Notes
8.125%, 12/15/17(a) | | | | $ | 1,603,452 | |
| | | |
| | 1,500,000 | | | Frontier Oil Corp., Sr. Unsec. Notes
6.875%, 11/15/18 | | | | | 1,616,250 | |
| | | |
| | 1,500,000 | | | Inergy Mid LP, Sr. Unsec. Notes
6.000%, 12/15/20(a) | | | | | 1,455,000 | |
| | |
| | 1,800,000 | | | ION Geophysical Corp., Second Lien Notes
8.125%, 05/15/18(a) | | | 1,746,000 | |
| | | |
| | 1,500,000 | | | Kinder Morgan Finance Co. Llc, Sr. Sec. Notes
6.000%, 01/15/18(a) | | | | | 1,581,830 | |
| | | |
| | 1,250,000 | | | Murray Energy Corp., Sec. Notes
8.625%, 06/15/21(a) | | | | | 1,256,250 | |
| | | |
| | 1,500,000 | | | Parker Drilling Co., Gtd. Notes
9.125%, 04/01/18 | | | | | 1,593,750 | |
| | | |
| | 1,240,000 | | | SESI Llc, Sr. Unsec. Notes
7.125%, 12/15/21 | | | | | 1,345,400 | |
| | | |
| | 1,500,000 | | | Shelf Drilling Holdings, Ltd., Sec. Notes
8.625%, 11/01/18(a) | | | | | 1,567,500 | |
| | | |
| | 1,500,000 | | | Tesoro Corp., Sr. Unsec. Notes
5.375%, 10/01/22 | | | | | 1,526,250 | |
| | |
| | 1,500,000 | | | Vanguard Natural Resources Llc/VNR Finance Corp., Sr. Unsec. Notes
7.875%, 04/01/20 | | | 1,545,000 | |
| | | |
| | | | Whiting Petroleum Corp., Sr. Sub. Notes | | | | | | |
| | | |
| | 1,500,000 | | | 6.500%, 10/01/18 | | | | | 1,593,750 | |
| | | |
| | | | | | | | | 24,889,806 | |
| | | | | | | | | | |
| | Financials: 10.20% | | | | | | |
| | | |
| | 1,500,000 | | | AerCap Aviation Solutions BV, Sr. Unsec. Notes
6.375%, 05/30/17 | | | | | 1,582,500 | |
| | | |
| | 1,475,000 | | | Aircastle, Ltd. Sr. Unsec. Notes
7.625%, 04/15/20 | | | | | 1,629,875 | |
| | | |
| | 1,000,000 | | | Ally Financial, Inc., Sr. Unsec. Notes
0.000%, 06/15/15 | | | | | 927,700 | |
| | | |
| | 1,000,000 | | | CIT Group, Inc., Sr. Unsec. Notes
5.000%, 08/15/22 | | | | | 996,948 | |
| | | |
| | 1,500,000 | | | EPR Properties, Sr. Unsec. Notes
7.750%, 07/15/20 | | | | | 1,710,006 | |
| | | | |
| June 30, 2013 | | 30 | | See Notes to Financial Statements |
Portfolio of Investments (Note 11) (Unaudited)
Forward High Yield Bond Fund
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
| | Financials (continued): 10.20% | | | | | | |
| | | |
| | $1,500,000 | | | General Motors Financial Co., Inc., Sr. Unsec. Notes 3.250%, 05/15/18(a) | | | | $ | 1,462,500 | |
| | | |
| | 1,500,000 | | | International Lease Finance Corp., Sr. Unsec. Notes 5.875%, 04/01/19 | | | | | 1,522,500 | |
| | | |
| | 1,500,000 | | | Kennedy-Wilson, Inc., Sr. Unsec. Notes
8.750%, 04/01/19 | | | | | 1,620,000 | |
| | | |
| | 1,570,000 | | | Provident Funding Associates LP/PFG Finance Corp., Sr. Notes
10.125%, 02/15/19(a) | | | | | 1,742,700 | |
| | | |
| | | | | | | | | 13,194,729 | |
| | | | | | | | | | |
| | Industrials: 11.66% | | | | | | |
| | | |
| | 1,500,000 | | | AEP Industries, Inc., Sr. Unsec. Notes
8.250%, 04/15/19 | | | | | 1,621,875 | |
| | | |
| | 1,500,000 | | | Aviation Capital Group Corp., Sr. Unsec. Notes
4.625%, 01/31/18(a) | | | | | 1,477,709 | |
| | | |
| | 1,500,000 | | | Griffon Corp., Gtd. Notes
7.125%, 04/01/18 | | | | | 1,578,750 | |
| | | |
| | 1,525,000 | | | Iracore International Holdings, Inc., Sec. Notes
9.500%, 06/01/18(a) | | | | | 1,553,594 | |
| | | |
| | 1,625,000 | | | Liberty Tire Recycling, Gtd. Notes
11.000%, 10/01/16(a) | | | | | 1,633,125 | |
| | | |
| | 1,250,000 | | | Martin Midstream Partners LP/Martin Midstream Finance Corp., Gtd. Notes
8.875%, 04/01/18 | | | | | 1,321,875 | |
| | | |
| | 1,575,000 | | | Maxim Crane Works LP, Sr. Sec. Notes
12.250%, 04/15/15(a) | | | | | 1,661,624 | |
| | | |
| | 1,500,000 | | | Packaging Dynamics Corp., First Lien Notes
8.750%, 02/01/16(a) | | | | | 1,522,500 | |
| | | |
| | 1,116,000 | | | SPL Logistics Escrow Llc, Sec. Notes
8.875%, 08/01/20(a) | | | | | 1,166,220 | |
| | | |
| | 1,500,000 | | | Zachry Holdings, Inc., Sr. Unsec. Notes
7.500%, 02/01/20(a) | | | | | 1,552,500 | |
| | | |
| | | | | | | | | 15,089,772 | |
| | | | | | | | | | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
| | Technology: 1.01% | | | | | | |
| | | |
| | $1,250,000 | | | iGate Corp., Sr. Unsec. Notes
9.000%, 05/01/16 | | | | $ | 1,306,250 | |
| | | | | | | | | | |
| | Utilities: 1.25% | | | | | | |
| | | |
| | 1,500,000 | | | NRG Energy, Inc., Sr. Unsec. Notes
7.625%, 01/15/18 | | | | | 1,612,500 | |
| | | |
| | | | Total Corporate Bonds
(Cost $121,889,163) | | | | | 122,597,124 | |
| | |
| | Municipal Bonds: 0.80% | | | | | | |
| | | |
| | 1,000,000 | | | Dallas-Fort Worth, Texas International Airport Facilities Improvement Corp., Revenue Bonds, Taxable Series 2001-B-1
7.000%, 01/01/16(b) | | | | | 1,035,690 | |
| | | |
| | | | Total Municipal Bonds (Cost $1,032,076) | | | | | 1,035,690 | |
| | | |
| | | | Total Investments: 95.53%
(Cost $122,921,239) | | | | | 123,632,814 | |
| | | |
| | | | Net Other Assets and Liabilities: 4.47% | | | | | 5,784,549 | |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 129,417,363 | |
Percentages are stated as a percent of net assets.
(a) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in the ordinary course of business in transactions exempt from registration, normally to qualified institutional buyers. At period end, the aggregate market value of those securities was $54,850,483, representing 42.38% of net assets.
(b) Security determined to be illiquid under the procedures approved by the Fund’s Board of Trustees.
Security determined to be illiquid under the procedures approved by the Fund’s Board of Trustees is as follows:
| | | | | | | | | | | | | | |
| Date of Purchase | | Security | | Cost | | | Market
Value | | | % of Net
Assets | |
| 03/01/12 | | Dallas-Fort Worth, Texas International Airport Facilities Improvement Corp.,
Revenue Bonds, Taxable Series 2001- B-1
7.000%, 01/01/16(b) | | $ | 1,032,076 | | | $ | 1,035,690 | | | | 0.80% | |
| | | | |
| See Notes to Financial Statements | | 31 | | June 30, 2013 |
Portfolio of Investments (Note 11) (Unaudited)
Forward High Yield Bond Fund
Investment Abbreviations:
Gtd. — Guaranteed
PIK — Payment in-kind
Sec. — Secured
Sr. — Senior
Sub. — Subordinated
Unsec. — Unsecured
| | | | |
| June 30, 2013 | | 32 | | See Notes to Financial Statements |
Portfolio of Investments (Note 11) (Unaudited)
Forward Investment Grade Fixed-Income Fund
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
|
| | Agency Pass-Through Securities: 6.48% | |
| | Federal National Mortgage Association (FNMA): 2.26% | |
| | | |
| | $ 179,009 | | | FNMA
2.700%, 05/01/34(a) | | | | $ | 181,460 | |
| | | |
| | 363,338 | | | 3.500%, 09/01/41 | | | | | 369,279 | |
| | | |
| | 188,320 | | | 6.000%, 03/01/33 | | | | | 205,036 | |
| | | |
| | | | | | | | | 755,775 | |
| | | | | | | | | | |
| | Government National Mortgage Association (GNMA): 4.22% | |
| | | |
| | 197,686 | | | GNMA
2.500%, 04/20/28 | | | | | 199,780 | |
| | | |
| | 1,178,934 | | | 2.500%, 03/20/28 | | | | | 1,208,564 | |
| | | |
| | | | | | | | | 1,408,344 | |
| | | |
| | | | Total Agency Pass-Through Securities
(Cost $2,175,559) | | | | | 2,164,119 | |
| | | | | | | | | | |
| | Asset-Backed Securities: 5.24% | |
| | | |
| | 379,602 | | | ACE Securities Corp., Series 2004-HE4, Class M1
1.093%, 12/25/34(a) | | | | | 328,625 | |
| | | |
| | 69,657 | | | Bear Stearns Asset Backed Securities Trust, Series 2005-SD3, Class 1A
0.683%, 07/25/35(a) | | | | | 68,075 | |
| | | |
| | 63,543,001 | | | Bear Stearns Commercial Mortgage Securities, Series 2004-PWR6, Class X1
0.818%, 11/11/41(a)(b)(c)(d) | | | | | 688,679 | |
| | | |
| | 13,442 | | | Chec Loan Trust, Series 2004-1, Class B2
3.693%, 07/25/34(a)(c) | | | | | 13,033 | |
| | | |
| | 250,000 | | | Falcon Franchise Loan Llc, Series 2003-1, Class C
4.100%, 01/05/25(b)(c)(e) | | | | | 8,509 | |
| | | |
| | 169,674 | | | Home Equity Mortgage Trust, Series 2006-2, Class 1A1
5.367%, 07/25/36(f) | | | | | 42,124 | |
| | | |
| | 700,000 | | | Merrill Lynch Mortgage Investors, Inc.,
Series 2005-A6, Class 2A3
0.573%, 08/25/35(a) | | | | | 601,006 | |
| | | |
| | | | Total Asset-Backed Securities
(Cost $2,170,783) | | | | | 1,750,051 | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
| | Collateralized Mortgage Obligations: 4.42% | |
| | | |
| | $ 154,173 | | | Capco America Securitization Corp.,
Series 1998-D7, Class PS1
1.500%, 10/15/30(a)(b)(c)(d) | | | | $ | 83 | |
| | | |
| | 3,857 | | | Collateralized Mortgage Securities Corp.,
Series I, Class 3
9.450%, 02/01/17 | | | | | 4,174 | |
| | | |
| | 591,462 | | | Countrywide Alternative Loan Trust,
Series 2006-12CB, Class A6
6.000%, 05/25/36 | | | | | 476,505 | |
| | | |
| | 195,172 | | | FHLMC, Series 2887, Class JD
4.500%, 03/15/19 | | | | | 207,017 | |
| | | |
| | 5,612,989 | | | GNMA, Series 2002-28, Class IO
0.234%, 01/16/42(a)(b)(d) | | | | | 37,669 | |
| | | |
| | 3,463,572 | | | GNMA, Series 2003-64, Class XA
0.000%, 08/16/43(a)(b)(d) | | | | | 426 | |
| | | |
| | 5,278 | | | Harborview Mortgage Loan Trust,
Series 2004-4, Class 3A
1.323%, 06/19/34(a) | | | | | 5,217 | |
| | | |
| | 64,665 | | | JP Morgan Chase Commercial Mortgage Securities Corp., Series 2004-LN2, Class A1
4.475%, 01/15/14 | | | | | 64,591 | |
| | | |
| | 38,269 | | | LB Commercial Conduit Mortgage Trust,
Series 1996-C2, Class IO
0.900%, 04/25/19(b)(d) | | | | | 3 | |
| | | |
| | 247,252,639 | | | LB-UBS Commercial Mortgage Trust,
Series 2006-C4, Class X
0.020%, 06/15/38(a)(b)(c)(d) | | | | | 109,533 | |
| | | |
| | 12,577,292 | | | Merrill Lynch Mortgage Investors,
Series 1998-C1, Class IO
0.680%, 11/15/26(a)(b)(d) | | | | | 277,820 | |
| | | |
| | 673,993 | | | Preferred Term Securities XIII, Inc.
1.843%, 03/24/34(a)(b)(c)(e) | | | | | 255,958 | |
| | | |
| | 3,603,357 | | | Salomon Brothers Mortgage Securities VII, Inc., Series 2001-C2, Class X1
1.257%, 11/13/36(a)(b)(c)(d) | | | | | 4,605 | |
| | | |
| | 336,029 | | | Washington Mutual, Series 2005-AR18, Class 3A2
4.964%, 01/25/36(a) | | | | | 33,211 | |
| | | |
| | | | Total Collateralized Mortgage Obligations
(Cost $6,115,893) | | | | $ | 1,476,812 | |
| | | | |
| See Notes to Financial Statements | | 33 | | June 30, 2013 |
Portfolio of Investments (Note 11) (Unaudited)
Forward Investment Grade Fixed-Income Fund
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
|
| | Corporate Bonds: 21.56% | |
| | Banks: 3.48% | |
| | | |
| | $ 400,000 | | | Bank of America Corp., Sr. Unsec. Notes
5.650%, 05/01/18 | | | | $ | 444,708 | |
| | | |
| | 170,000 | | | Citigroup, Inc., Sr. Unsec. Notes
6.125%, 11/21/17 | | | | | 193,339 | |
| | | |
| | 200,000 | | | HSBC Bank Plc, Sr. Unsec. Notes
0.750%, Perpetual Maturity(a)(g) | | | | | 121,000 | |
| | | |
| | 100,000 | | | Royal Bank of Scotland Group Plc, Jr. Sub. Notes
7.648%, Perpetual Maturity(a)(g) | | | | | 92,500 | |
| | | |
| | 300,000 | | | VEB Finance Plc, Sr. Unsec. Notes
5.375%, 02/13/17(c) | | | | | 312,375 | |
| | | |
| | | | | | | | | 1,163,922 | |
| | | | | | | | | | |
| | Brokerage: 5.32% | | | | | | |
| | | |
| | 300,000 | | | Goldman Sachs Group, Inc., Sr. Unsec. Notes
6.150%, 04/01/18 | | | | | 338,286 | |
| | | |
| | 1,300,000 | | | Lehman Brothers Holdings, Sr. Unsec.
Medium-Term Notes
0.000%, 05/02/18(h) | | | | | 323,375 | |
| | | |
| | 695,000 | | | 0.000%, 12/30/16(h) | | | | | 171,144 | |
| | | |
| | 400,000 | | | Morgan Stanley, Sr. Unsec. Medium-Term Notes
6.625%, 04/01/18 | | | | | 453,694 | |
| | | |
| | 500,000 | | | Morgan Stanley, Sr. Unsec. Notes
0.757%, 10/15/15(a) | | | | | 490,546 | |
| | | |
| | | | | | | | | 1,777,045 | |
| | | | | | | | | | |
| | Finance-Other: 2.61% | |
| | | |
| | 250,000 | | | NLV Financial Corp., Sr. Notes
7.500%, 08/15/33(b)(c) | | | | | 261,386 | |
| | | |
| | 300,000 | | | TNK-BP Finance SA, Co., Gtd. Notes
6.625%, 03/20/17(i) | | | | | 327,000 | |
| | | |
| | 240,000 | | | Transneft Via TransCapitalInvest Ltd., Sec. Notes
8.700%, 08/07/18(i) | | | | | 283,500 | |
| | | |
| | | | | | | | | 871,886 | |
| | | | | | | | | | |
| | Financials: 4.51% | |
| | | |
| | 100,000 | | | Ally Financial, Inc., Gtd. Notes
3.672%, 06/20/14(a) | | | | | 101,384 | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
| | | |
| | $ 200,000 | | | American International Group, Inc., Sr. Unsec. Notes
4.250%, 09/15/14 | | | | $ | 207,516 | |
| | | |
| | 600,000 | | | Ford Motor Credit Co. Llc
1.373%, 08/28/14(a) | | | | | 600,656 | |
| | | |
| | 600,000 | | | JPMorgan Chase & Co., Sr. Unsec. Medium-Term Notes
0.893%, 02/26/16(a) | | | | | 599,152 | |
| | | |
| | | | | | | | | 1,508,708 | |
| | | | | | | | | | |
| | Industrial-Energy: 3.68% | |
| | | |
| | 400,000 | | | BP Capital Markets Plc, Gtd. Notes
4.500%, 10/01/20 | | | | | 434,429 | |
| | | |
| | 300,000 | | | Gazprom OAO Via Gaz Capital SA, Sr. Unsec. Notes
5.999%, 01/23/21(c) | | | | | 312,000 | |
| | | |
| | 480,000 | | | Petrobras International Finance Co., Sr. Unsec. Notes
5.375%, 01/27/21 | | | | | 484,432 | |
| | | |
| | | | | | | | | 1,230,861 | |
| | | | | | | | | | |
| | Industrial-Other: 0.18% | |
| | | |
| | 1,609,624 | | | Canal Point II, Ltd., Sec. Note, Series AI
0.000%, 06/25/14(b)(e) | | | | | 59,106 | |
| | | | | | | | | | |
| | Non-Captive Diversified: 1.09% | |
| | | |
| | 325,000 | | | General Electric Capital Corp., Sr. Unsec. Medium-Term Notes
6.900%, 09/15/15 | | | | | 363,408 | |
| | | | | | | | | | |
| | Utilities: 0.69% | |
| | | |
| | 225,901 | | | MP Environmental Funding Llc, Series A1
4.982%, 07/15/14 | | | | | 230,156 | |
| | | |
| | | | Total Corporate Bonds (Cost $9,267,089) | | | | | 7,205,092 | |
| | | | | | | | | | |
| | Foreign Government Obligations: 3.11% | |
| | | |
| | 1,000,000 | | | Province of Ontario Canada, Sr. Unsec. Notes
2.700%, 06/16/15 | | | | | 1,040,053 | |
| | | |
| | | | Total Foreign Government Obligations (Cost $998,714) | | | | | 1,040,053 | |
| | | | |
| June 30, 2013 | | 34 | | See Notes to Financial Statements |
Portfolio of Investments (Note 11) (Unaudited)
Forward Investment Grade Fixed-Income Fund
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
|
| | Municipal Bonds: 5.56% | |
| | | |
| | $ 500,000 | | | Buckeye Tobacco Settlement Financing Authority, Sr. Turbo Revenue Bonds, Series A-2
6.500%, 06/01/47 | | | | $ | 441,535 | |
| | | |
| | 200,000 | | | Los Angeles California Community College District, General Obligation Unlimited, Build America Bonds
6.750%, 08/01/49 | | | | | 249,864 | |
| | | |
| | 400,000 | | | Texas State Transportation Commission, Taxable Revenue Bonds, First Tier, Series B
5.178%, 04/01/30 | | | | | 447,972 | |
| | | |
| | 600,000 | | | University of California Regents Medical Center Pooled Revenue, Build America Bonds
6.548%, 05/15/48 | | | | | 716,856 | |
| | | |
| | | | Total Municipal Bonds (Cost $1,565,710) | | | | | 1,856,227 | |
|
| | U.S. Government Agency Securities: 52.26% | |
| | Department of Housing & Urban Development (HUD): 0.20% | |
| | | |
| | 66,000 | | | US Department of Housing and Urban Development, Gtd., Series 99-A
6.330%, 08/01/13 | | | | | 66,342 | |
| | | | | | | | | | |
| | Small Business Administration-Pass-Through-Agency: 1.44% | |
| | | |
| | 442,900 | | | Small Business Administration Participation Certificates, Series 2003-20E, Class 1
4.640%, 05/01/23 | | | | | 480,701 | |
| | | | | | | | | | |
| | U.S. Treasury Bonds & Notes: 50.62% | |
| | | |
| | 1,000,000 | | | U.S. Treasury Bonds
1.750%, 05/15/23 | | | | | 936,016 | |
| | | |
| | 1,100,000 | | | 2.750%, 11/15/42(j) | | | | | 949,953 | |
| | | |
| | 100,000 | | | 6.250%, 08/15/23 | | | | | 134,141 | |
| | | |
| | 36 | | | U.S. Treasury Bonds STRIP Coupon
0.000%, 11/15/17(b)(k) | | | | | 34 | |
| | | |
| | 910,080 | | | U.S. Treasury Inflation Indexed Bonds
0.125%, 07/15/22 | | | | | 889,461 | |
| | | |
| | 100,744 | | | 0.125%, 01/15/23 | | | | | 97,611 | |
| | | |
| | 702,966 | | | 2.000%, 01/15/26 | | | | | 811,734 | |
| | | |
| | 123,365 | | | 2.375%, 01/15/25 | | | | | 146,949 | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
| | | |
| | $ 200,000 | | | U.S. Treasury Notes
0.250%, 03/31/14 | | | | $ | 200,141 | |
| | | |
| | 1,200,000 | | | 0.250%, 04/30/14 | | | | | 1,200,821 | |
| | | |
| | 200,000 | | | 1.125%, 12/31/19 | | | | | 191,539 | |
| | | |
| | 500,000 | | | 1.625%, 11/15/22 | | | | | 466,484 | |
| | | |
| | 7,400,000 | | | 1.625%, 08/15/22 | | | | | 6,939,232 | |
| | | |
| | 1,900,000 | | | 1.750%, 05/15/22 | | | | | 1,810,715 | |
| | | |
| | 700,000 | | | 2.125%, 08/15/21 | | | | | 696,801 | |
| | | |
| | 1,300,000 | | | 3.625%, 02/15/21 | | | | | 1,444,473 | |
| | | |
| | | | | | | | | 16,916,105 | |
| | | |
| | | | Total U.S. Government Agency Securities
(Cost $18,320,029) | | | | | 17,463,148 | |
| | | |
Par
Value | | | | | | | | |
|
| | Short-Term Securities: 0.08% | |
| | | |
| | $ 26,000 | | | U.S. Treasury Bills, Discount Notes(l)(j)
0.135%, due 01/09/14 | | | | | 25,992 | |
| | |
| | | | Total Short-Term Securities
(Cost $25,981) | | | 25,992 | |
| | | |
| | | | Total Investments: 98.71%
(Cost $40,639,758) | | | | | 32,981,494 | |
| | |
| | | | Net Other Assets and Liabilities: 1.29% | | | 432,075 | (m) |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 33,413,569 | |
Percentages are stated as a percent of net assets.
(a) Interest rate will change at a future date. Interest rate shown reflects the rate in effect at June 30, 2013.
(b) Security determined to be illiquid under the procedures approved by the Fund’s Board of Trustees.
(c) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in the ordinary course of business in transactions exempt from registration, normally to qualified institutional buyers. At period end, the aggregate market value of those securities was $1,966,161, representing 5.88% of net assets.
(d) Interest only security.
(e) Fair valued security under the procedures approved by the Fund’s Board of Trustees.
| | | | |
| See Notes to Financial Statements | | 35 | | June 30, 2013 |
Portfolio of Investments (Note 11) (Unaudited)
Forward Investment Grade Fixed-Income Fund
(f) Represents a step-up bond. Rate disclosed is as of June 30, 2013.
(g) This security has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest.
(h) Security in default on interest payments.
(i) Securities were purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such securities cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. These securities have been deemed
liquid under guidelines approved by the Fund’s Board of Trustees. At period end, the aggregate market value of those securities was $610,500 representing 1.83% of net assets.
(j) Security, or portion of security, is being held as collateral for futures contracts. At period end, the aggregate market value of those securities was $52,763, representing 0.16% of net assets.
(k) Principal only security.
(l) Rate shown represents the bond equivalent yield to maturity at date of purchase.
(m) Includes cash which is being held as collateral for futures contracts.
Securities determined to be illiquid under the procedures approved by the Fund’s Board of Trustees is as follows:
| | | | | | | | | | | | | | |
| Date(s) of Purchase | | Security | | Cost | | | Market
Value | | | % of Net
Assets | |
| 03/23/07 - 04/25/07 | | Bear Stearns Commercial Mortgage Securities, Series 2004-PWR6, Class X1
0.818%, 11/11/41(a)(b)(c)(d) | | $ | 1,077,093 | | | $ | 688,679 | | | | 2.06% | |
| 10/03/07 - 04/10/08 | | Canal Point II, Ltd., Sec. Note, Series AI
0.000%, 06/25/14(b)(e) | | | 1,536,721 | | | | 59,106 | | | | 0.18% | |
| 03/29/06 | | Capco America Securitization Corp., Series 1998-D7, Class PS1
1.500%, 10/15/30(a)(b)(c)(d) | | | 98,427 | | | | 83 | | | | 0.00% | (n) |
| 12/29/11 | | Falcon Franchise Loan Llc, Series 2003-1, Class C
4.100%, 01/05/25(b)(c)(e) | | | 0 | | | | 8,509 | | | | 0.03% | |
| 07/24/06 - 08/01/06 | | GNMA, Series 2002-28, Class IO
0.234%, 01/16/42(a)(b)(d) | | | 898,733 | | | | 37,669 | | | | 0.11% | |
| 05/17/07 | | GNMA, Series 2003-64, Class XA
0.000%, 08/16/43(a)(b)(d) | | | 452,229 | | | | 426 | | | | 0.00% | (n) |
| 03/30/06 | | LB Commercial Conduit Mortgage Trust, Series 1996-C2, Class IO
0.900%, 04/25/19(b)(d) | | | 75,800 | | | | 3 | | | | 0.00% | (n) |
| 03/05/07 | | LB-UBS Commercial Mortgage Trust, Series 2006-C4, Class X
0.020%, 06/15/38(a)(b)(c)(d) | | | 499,141 | | | | 109,533 | | | | 0.33% | |
| 03/29/06 | | Merrill Lynch Mortgage Investors, Series 1998-C1, Class IO
0.680%, 11/15/26(a)(b)(d) | | | 593,987 | | | | 277,820 | | | | 0.83% | |
| 01/18/07 | | NLV Financial Corp., Sr. Notes
7.500%, 08/15/33(b)(c) | | | 275,214 | | | | 261,386 | | | | 0.78% | |
| 10/03/06 - 3/27/13 | | Preferred Term Securities XIII, Inc.
1.843%, 03/24/34(a)(b)(c)(e) | | | 663,810 | | | | 255,958 | | | | 0.77% | |
| 11/07/06 - 03/29/07 | | Salomon Brothers Mortgage Securities VII, Inc., Series 2001-C2, Class X1
1.257%, 11/13/36(a)(b)(c)(d) | | | 1,641,392 | | | | 4,605 | | | | 0.01% | |
| 11/17/08 | | U.S. Treasury Bonds STRIP Coupon
0.000%, 11/15/17(b)(k) | | | 30 | | | | 34 | | | | 0.00% | (n) |
| | | | $ | 7,812,577 | | | $ | 1,703,811 | | | | 5.10% | |
(n) Less than 0.005%
Futures Contracts
| | | | | | | | | | | | | | | | | | |
| Description | | Position | | Contracts | | | Expiration
Date | | | Value | | | Unrealized
Gain | |
U.S. 5 Year Treasury Note Future | | Short | | | (63) | | | | 10/01/13 | | | $ | (7,625,955) | | | $ | 96,649 | |
| Total Futures Contracts (Short) | | | | | | | | | | $ | (7,625,955) | | | $ | 96,649 | |
| | | | |
| June 30, 2013 | | 36 | | See Notes to Financial Statements |
Portfolio of Investments (Note 11) (Unaudited)
Forward Investment Grade Fixed-Income Fund
| | | | | | | | | | | | | | | | | | |
Futures Contracts (continued) | |
| Description | | Position | | Contracts | | | Expiration
Date | | | Value | | | Unrealized
Loss | |
U.S. 10 Year Treasury Note Future | | Long | | | 28 | | | | 09/20/13 | | | $ | 3,543,750 | | | $ | (106,568) | |
| Total Futures Contracts (Long) | | | | | | | | | | $ | 3,543,750 | | | $ | (106,568) | |
Investment Abbreviations:
FHLMC — Federal Home Loan Mortgage Corporation
Gtd. — Guaranteed
IO — Interest Only
Jr. — Junior
Sec. — Secured
Sr. — Senior
STRIP — Separate Trading of Registered Interest and Principal of Securities
Sub. — Subordinated
Unsec. — Unsecured
| | | | |
| See Notes to Financial Statements | | 37 | | June 30, 2013 |
Portfolio of Investments (Note 11) (Unaudited)
Forward Total MarketPlus Fund
| | | | | | | | | | |
| Shares | | | | | | | Value (Note 2) | |
|
| | Exchange-Traded Funds: 45.07% | |
| | | |
| | 8,600 | | | iShares Russell 3000® Index Fund | | | | $ | 829,040 | |
| | | |
| | 68,300 | | | Vanguard Short-Term Corporate Bond ETF | | | | | 5,402,530 | |
| | | |
| | 180,500 | | | Vanguard Short-Term Government Bond ETF | | | | | 10,978,010 | |
| | | |
| | | | Total Exchange-Traded Funds
(Cost $17,322,278) | | | | | 17,209,580 | |
| | | |
Principal
Amount | | | | | | | | |
|
| | Agency Pass-Through Securities: 14.73% | |
| | Federal Home Loan Mortgage Corp (FHLMC): 4.38% | |
| | | |
| | $ 2,316 | | | FHLMC
1.500%, 12/01/17(a) | | | | | 2,332 | |
| | | |
| | 16,111 | | | 1.854%, 06/01/20(a) | | | | | 16,734 | |
| | | |
| | 23,912 | | | 2.005%, 10/01/28(a) | | | | | 25,383 | |
| | | |
| | 3,825 | | | 2.012%, 01/01/26(a) | | | | | 3,942 | |
| | | |
| | 79,812 | | | 2.025%, 12/01/35(a) | | | | | 84,193 | |
| | | |
| | 110,799 | | | 2.100%, 08/01/33(a) | | | | | 115,627 | |
| | | |
| | 91,438 | | | 2.114%, 02/01/36(a) | | | | | 96,694 | |
| | | |
| | 83,971 | | | 2.140%, 12/01/35(a) | | | | | 88,336 | |
| | | |
| | 90,315 | | | 2.216%, 01/01/37(a) | | | | | 96,291 | |
| | | |
| | 4,082 | | | 2.250%, 11/01/22(a) | | | | | 4,156 | |
| | | |
| | 11,897 | | | 2.252%, 03/01/19(a) | | | | | 12,200 | |
| | | |
| | 3,264 | | | 2.253%, 10/01/22(a) | | | | | 3,489 | |
| | | |
| | 43,734 | | | 2.260%, 09/01/28(a) | | | | | 46,548 | |
| | | |
| | 3,341 | | | 2.262%, 09/01/30(a) | | | | | 3,575 | |
| | | |
| | 12,607 | | | 2.265%, 11/01/26(a) | | | | | 13,249 | |
| | | |
| | 101,958 | | | 2.288%, 07/01/30(a) | | | | | 108,935 | |
| | | |
| | 6,033 | | | 2.290%, 09/01/27(a) | | | | | 6,470 | |
| | | |
| | 5,437 | | | 2.313%, 12/01/27(a) | | | | | 5,791 | |
| | | |
| | 21,941 | | | 2.343%, 02/01/35(a) | | | | | 22,825 | |
| | | |
| | 6,573 | | | 2.350%, 12/01/27(a) | | | | | 6,996 | |
| | | |
| | 33,018 | | | 2.369%, 11/01/28(a) | | | | | 35,205 | |
| | | |
| | 9,617 | | | 2.373%, 02/01/32(a) | | | | | 10,236 | |
| | | |
| | 11,630 | | | 2.375%, 04/01/32(a) | | | | | 11,935 | |
| | | |
| | 14,224 | | | 2.375%, 08/01/32(a) | | | | | 15,085 | |
| | | |
| | 60,832 | | | 2.375%, 08/01/35(a) | | | | | 64,102 | |
| | | |
| | 40,505 | | | 2.375%, 04/01/18(a) | | | | | 42,367 | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
| | | |
| | $ 4,532 | | | 2.376%, 10/01/32(a) | | | | $ | 4,582 | |
| | | |
| | 21,521 | | | 2.385%, 07/01/31(a) | | | | | 23,044 | |
| | | |
| | 33,196 | | | 2.397%, 02/01/34(a) | | | | | 35,298 | |
| | | |
| | 8,549 | | | 2.413%, 03/01/33(a) | | | | | 8,886 | |
| | | |
| | 7,540 | | | 2.423%, 10/01/31(a) | | | | | 7,618 | |
| | | |
| | 984 | | | 2.433%, 03/01/24(a) | | | | | 991 | |
| | | |
| | 19,440 | | | 2.443%, 02/01/35(a) | | | | | 19,873 | |
| | | |
| | 5,854 | | | 2.445%, 01/01/24(a) | | | | | 6,003 | |
| | | |
| | 15,927 | | | 2.467%, 05/01/33(a) | | | | | 16,841 | |
| | | |
| | 137,117 | | | 2.520%, 03/01/32(a) | | | | | 146,748 | |
| | | |
| | 35,027 | | | 2.625%, 02/01/33(a) | | | | | 37,144 | |
| | | |
| | 14,803 | | | 2.631%, 09/01/30(a) | | | | | 15,799 | |
| | | |
| | 9,947 | | | 2.634%, 05/01/35(a) | | | | | 10,597 | |
| | | |
| | 33,572 | | | 2.639%, 05/01/36(a) | | | | | 35,992 | |
| | | |
| | 12,137 | | | 2.659%, 01/01/37(a) | | | | | 12,813 | |
| | | |
| | 20,044 | | | 2.718%, 06/01/37(a) | | | | | 21,453 | |
| | | |
| | 11,772 | | | 2.721%, 09/01/36(a) | | | | | 12,606 | |
| | | |
| | 7,441 | | | 2.830%, 02/01/31(a) | | | | | 7,962 | |
| | | |
| | 44,455 | | | 2.901%, 01/01/29(a) | | | | | 47,437 | |
| | | |
| | 2,066 | | | 2.940%, 06/01/19(a) | | | | | 2,082 | |
| | | |
| | 14,445 | | | 3.600%, 06/01/35(a) | | | | | 14,494 | |
| | | |
| | 57,178 | | | 5.621%, 11/01/30(a) | | | | | 59,857 | |
| | | |
| | 57,372 | | | FHLMC, Gold
1.873%, 07/01/29(a) | | | | | 60,426 | |
| | | |
| | 5,931 | | | 2.125%, 07/01/19(a) | | | | | 6,091 | |
| | | |
| | 33,075 | | | 2.250%, 10/01/26(a) | | | | | 35,279 | |
| | | |
| | 16,507 | | | 2.257%, 01/01/31(a) | | | | | 16,651 | |
| | | |
| | 2,696 | | | 2.276%, 12/01/22(a) | | | | | 2,805 | |
| | | |
| | 1,866 | | | 2.280%, 03/01/17(a) | | | | | 1,872 | |
| | | |
| | 17,568 | | | 2.378%, 09/01/30(a) | | | | | 18,595 | |
| | | |
| | 3,506 | | | 2.521%, 01/01/28(a) | | | | | 3,764 | |
| | | |
| | 27,367 | | | 3.263%, 10/01/20(a) | | | | | 28,980 | |
| | | |
| | 5,571 | | | 5.501%, 08/01/24(a) | | | | | 6,015 | |
| | | |
| | | | | | | | | 1,671,294 | |
| | | | | | | | | | |
| | | | |
| June 30, 2013 | | 38 | | See Notes to Financial Statements |
Portfolio of Investments (Note 11) (Unaudited)
Forward Total MarketPlus Fund
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
| | Federal National Mortgage Association (FNMA): 10.35% | |
| | | |
| | $ 4,404 | | | FNMA
1.335%, 06/01/21(a) | | | | $ | 4,439 | |
| | | |
| | 29,258 | | | 1.573%, 01/01/31(a) | | | | | 30,408 | |
| | | |
| | 53,958 | | | 1.578%, 11/01/40(a) | | | | | 56,057 | |
| | | |
| | 7,210 | | | 1.578%, 07/01/40(a) | | | | | 7,511 | |
| | | |
| | 174,693 | | | 1.578%, 06/01/40(a) | | | | | 181,654 | |
| | | |
| | 9,537 | | | 1.697%, 09/01/33(a) | | | | | 9,949 | |
| | | |
| | 16,832 | | | 1.759%, 03/01/28(a) | | | | | 17,638 | |
| | | |
| | 6,940 | | | 1.786%, 11/01/33(a) | | | | | 7,288 | |
| | | |
| | 17,611 | | | 1.789%, 09/01/27(a) | | | | | 18,506 | |
| | | |
| | 8,721 | | | 1.795%, 12/01/24(a) | | | | | 8,914 | |
| | | |
| | 13,961 | | | 1.833%, 11/01/33(a) | | | | | 14,691 | |
| | | |
| | 52,548 | | | 1.875%, 10/01/34(a) | | | | | 55,575 | |
| | | |
| | 10,849 | | | 1.875%, 01/01/20(a) | | | | | 11,287 | |
| | | |
| | 22,855 | | | 1.889%, 01/01/23(a) | | | | | 24,062 | |
| | | |
| | 16,247 | | | 1.917%, 05/01/32(a) | | | | | 16,973 | |
| | | |
| | 21,287 | | | 1.920%, 08/01/33(a) | | | | | 22,203 | |
| | | |
| | 39,138 | | | 2.005%, 01/01/35(a) | | | | | 41,110 | |
| | | |
| | 57,224 | | | 2.010%, 05/01/36(a) | | | | | 59,771 | |
| | | |
| | 9,229 | | | 2.013%, 04/01/18(a) | | | | | 9,708 | |
| | | |
| | 17,634 | | | 2.017%, 11/01/33(a) | | | | | 18,519 | |
| | | |
| | 164,455 | | | 2.017%, 02/01/33(a) | | | | | 172,943 | |
| | | |
| | 25,752 | | | 2.029%, 04/01/36(a) | | | | | 27,163 | |
| | | |
| | 179,897 | | | 2.035%, 06/01/35(a) | | | | | 188,126 | |
| | | |
| | 27,337 | | | 2.050%, 03/01/36(a) | | | | | 28,849 | |
| | | |
| | 14,041 | | | 2.050%, 04/01/36(a) | | | | | 14,788 | |
| | | |
| | 89,144 | | | 2.064%, 05/01/29(a) | | | | | 89,508 | |
| | | |
| | 101,553 | | | 2.065%, 11/01/34(a) | | | | | 106,747 | |
| | | |
| | 49,903 | | | 2.071%, 11/01/35(a) | | | | | 52,365 | |
| | | |
| | 25,166 | | | 2.076%, 01/01/35(a) | | | | | 26,618 | |
| | | |
| | 8,558 | | | 2.078%, 08/01/29(a) | | | | | 9,047 | |
| | | |
| | 50,753 | | | 2.083%, 11/01/35(a) | | | | | 53,468 | |
| | | |
| | 44,182 | | | 2.101%, 02/01/25(a) | | | | | 46,636 | |
| | | |
| | 40,409 | | | 2.103%, 05/01/35(a) | | | | | 42,564 | |
| | | |
| | 69,351 | | | 2.136%, 06/01/35(a) | | | | | 73,063 | |
| | | |
| | 353,934 | | | 2.155%, 11/01/35(a) | | | | | 373,337 | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
| | | |
| | $ 83,427 | | | 2.157%, 05/01/33(a) | | | | $ | 86,668 | |
| | | |
| | 8,698 | | | 2.163%, 04/01/18(a) | | | | | 8,744 | |
| | | |
| | 30,617 | | | 2.193%, 10/01/32(a) | | | | | 32,465 | |
| | | |
| | 6,618 | | | 2.205%, 11/01/17(a) | | | | | 7,026 | |
| | | |
| | 57,244 | | | 2.208%, 04/01/36(a) | | | | | 60,552 | |
| | | |
| | 51,518 | | | 2.245%, 02/01/35(a) | | | | | 54,438 | |
| | | |
| | 128,537 | | | 2.250%, 12/01/34(a) | | | | | 136,067 | |
| | | |
| | 3,239 | | | 2.250%, 09/01/17(a) | | | | | 3,251 | |
| | | |
| | 6,521 | | | 2.251%, 05/01/32(a) | | | | | 6,766 | |
| | | |
| | 44,701 | | | 2.273%, 07/01/33(a) | | | | | 47,659 | |
| | | |
| | 39,701 | | | 2.273%, 04/01/40(a) | | | | | 42,280 | |
| | | |
| | 5,078 | | | 2.279%, 07/01/29(a) | | | | | 5,144 | |
| | | |
| | 109,459 | | | 2.291%, 11/01/34(a) | | | | | 116,109 | |
| | | |
| | 13,411 | | | 2.320%, 06/01/32(a) | | | | | 14,284 | |
| | | |
| | 86,629 | | | 2.321%, 04/01/34(a) | | | | | 87,801 | |
| | | |
| | 32,047 | | | 2.327%, 01/01/33(a) | | | | | 33,702 | |
| | | |
| | 115,019 | | | 2.335%, 07/01/34(a) | | | | | 121,017 | |
| | | |
| | 48,690 | | | 2.360%, 07/01/33(a) | | | | | 49,160 | |
| | | |
| | 46,911 | | | 2.361%, 03/01/38(a) | | | | | 49,881 | |
| | | |
| | 126,877 | | | 2.370%, 02/01/37(a) | | | | | 135,293 | |
| | | |
| | 4,527 | | | 2.371%, 05/01/33(a) | | | | | 4,827 | |
| | | |
| | 37,419 | | | 2.375%, 10/01/17(a) | | | | | 37,580 | |
| | | |
| | 52,432 | | | 2.375%, 04/01/32(a) | | | | | 52,944 | |
| | | |
| | 7,680 | | | 2.383%, 04/01/33(a) | | | | | 8,122 | |
| | | |
| | 13,037 | | | 2.386%, 04/01/33(a) | | | | | 13,788 | |
| | | |
| | 89,407 | | | 2.394%, 02/01/33(a) | | | | | 91,670 | |
| | | |
| | 10,720 | | | 2.428%, 10/01/35(a) | | | | | 11,379 | |
| | | |
| | 7,170 | | | 2.429%, 01/01/25(a) | | | | | 7,492 | |
| | | |
| | 28,887 | | | 2.444%, 04/01/33(a) | | | | | 30,650 | |
| | | |
| | 75,817 | | | 2.460%, 07/01/28(a) | | | | | 80,535 | |
| | | |
| | 43,398 | | | 2.480%, 01/01/33(a) | | | | | 46,077 | |
| | | |
| | 55,716 | | | 2.482%, 12/01/32(a) | | | | | 56,806 | |
| | | |
| | 16,002 | | | 2.490%, 09/01/33(a) | | | | | 17,150 | |
| | | |
| | 18,337 | | | 2.500%, 03/01/35(a) | | | | | 19,550 | |
| | | |
| | 12,428 | | | 2.504%, 07/01/28(a) | | | | | 13,289 | |
| | | |
| | 71,680 | | | 2.534%, 07/01/35(a) | | | | | 76,045 | |
| | | | |
| See Notes to Financial Statements | | 39 | | June 30, 2013 |
Portfolio of Investments (Note 11) (Unaudited)
Forward Total MarketPlus Fund
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
| | Federal National Mortgage Association (FNMA) (continued): 10.35% | |
| | | |
| | $ 15,726 | | | 2.534%, 12/01/32(a) | | | | $ | 16,715 | |
| | | |
| | 25,340 | | | 2.536%, 12/01/35(a) | | | | | 26,067 | |
| | | |
| | 14,404 | | | 2.541%, 09/01/39(a) | | | | | 15,413 | |
| | | |
| | 55,364 | | | 2.574%, 02/01/35(a) | | | | | 59,101 | |
| | | |
| | 41,082 | | | 2.587%, 03/01/35(a) | | | | | 43,660 | |
| | | |
| | 53,630 | | | 2.609%, 01/01/28(a) | | | | | 57,630 | |
| | | |
| | 13,849 | | | 2.629%, 12/01/32(a) | | | | | 14,010 | |
| | | |
| | 32,449 | | | 2.676%, 12/01/30(a) | | | | | 34,734 | |
| | | |
| | 11,002 | | | 2.682%, 07/01/34(a) | | | | | 11,902 | |
| | | |
| | 50,258 | | | 2.703%, 11/01/34(a) | | | | | 53,544 | |
| | | |
| | 6,177 | | | 3.171%, 04/01/33(a) | | | | | 6,577 | |
| | | |
| | 3,277 | | | 3.862%, 10/01/27(a) | | | | | 3,304 | |
| | | |
| | 1,634 | | | 4.297%, 02/01/18(a) | | | | | 1,649 | |
| | | |
| | 19,828 | | | 5.230%, 06/01/17(a) | | | | | 20,759 | |
| | | |
| | | | | | | | | 3,952,761 | |
| | | |
| | | | Total Agency Pass-Through Securities
(Cost $5,474,585) | | | | | 5,624,055 | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value (Note 2) | |
| | |
| | Corporate Bonds: 5.13% | | | | | | |
| | Financials: 5.13% | | | | | | |
| | | |
| | $2,000,000 | | | Bank of America Corp., Sr. Unsec. Notes
0.193%, 03/13/14(a)(b) | | | | $ | 1,959,262 | |
| | | |
| | | | Total Corporate Bonds
(Cost $2,000,000) | | | | | 1,959,262 | |
| | | |
| | | | Total Investments: 64.93%
(Cost $24,796,863) | | | | | 24,792,897 | |
| | | |
| | | | Net Other Assets and Liabilities: 35.07% | | | | | 13,393,201 | (c) |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 38,186,098 | |
Percentages are stated as a percent of net assets.
(a) Interest rate will change at a future date. Interest rate shown reflects the rate in effect at June 30, 2013.
(b) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in the ordinary course of business in transactions exempt from registration, normally to qualified institutional buyers. At period end, the aggregate market value of those securities was $1,959,262, representing 5.13% of net assets.
(c) Includes cash which is being held as collateral for swap contracts.
Total Return Swap Contracts
| | | | | | | | | | | | | | | | | | | | |
| Counter Party | | Reference Entry/Obligation | | Fund Pays/Receives | | Fund
Receives | | | Termination
Date | | | Notional Amount | | | Net
Unrealized
Gain/(Loss) | |
Barclays Capital | | The Barclays AIMS Alternative Roll Index | | 100 Bps | | | Total Return | | | | 01/29/14 | | | $ | 8,000,000 | | | $ | (290,565) | |
Barclays Capital | | The Barclays TrendSTAR+ Index | | 65 Bps | | | Total Return | | | | 01/29/14 | | | | 8,000,000 | | | | 346,909 | |
Credit Suisse | | Credit Suisse Tail Risk Overlay Protection Strategy(d) | | 75 Bps | | | Total Return | | | | 01/29/14 | | | | 4,000,000 | | | | (64,349) | |
Goldman Sachs | | Russell 3000® Total Return Index | | 1-month LIBOR plus 29 Bps | | | Total Return | | | | 02/06/14 | | | | 34,776,869 | | | | 2,503,389 | |
| Total of Total Return Swap Contracts | | | | | | | | | | | | $ | 54,776,869 | | | $ | 2,495,384 | |
(d) Fair valued security under the procedures approved by the Fund’s Board of Trustees.
Investment Abbreviations:
Bps — Basis Points
ETF — Exchange-Traded Fund
LIBOR — London Interbank Offered Rate
Sr. — Senior
Unsec. — Unsecured
| | | | |
| June 30, 2013 | | 40 | | See Notes to Financial Statements |
Portfolio of Investments (Note 11) (Unaudited)
Forward U.S. Government Money Fund
| | | | | | | | |
Principal Amount | | | | | Value (Note 2) | |
|
| | U.S. Agency Bonds: 8.38% | |
| | Federal Home Loan Bank (FHLB): 2.77% | |
| | |
| | $ 920,000 | | | Federal Home Loan Bank 4.000%, 09/06/13 | | $ | 926,260 | |
| | |
| | 720,000 | | | Federal Home Loan Bank 3.625%, 10/18/13 | | | 727,308 | |
| | |
| | 790,000 | | | Federal Home Loan Bank 5.250%, 06/18/14 | | | 828,302 | |
| | |
| | 225,000 | | | Federal Home Loan Bank 4.875%, 06/13/14 | | | 234,953 | |
| | |
| | | | | | | 2,716,823 | |
| | | | | | | | |
| | Federal Home Loan Mortgage Corporation (FHLMC): 0.55% | |
| | |
| | 530,000 | | | Federal Home Loan Mortgage Corporation 4.125%, 09/27/13 | | | 534,902 | |
| | | | | | | | |
| | Federal National Mortgage Association (FNMA): 5.06% | |
| | |
| | 3,000,000 | | | Federal National Mortgage Association
1.000%, 09/23/13 | | | 3,005,244 | |
| | |
| | 381,000 | | | Federal National Mortgage Association
1.125%, 09/30/13 | | | 381,833 | |
| | |
| | 1,555,000 | | | Federal National Mortgage Association
4.625%, 10/15/13 | | | 1,574,898 | |
| | |
| | | | | | | 4,961,975 | |
| | |
| | | | Total U.S. Agency Bonds
(Cost $8,213,700) | | | 8,213,700 | |
|
| | Other Commercial Paper: 5.10% | |
| | Short-Term Securities: 5.10% | |
| | |
| | 5,000,000 | | | Westpac Banking Corp., Variable Rate
0.300%, 06/29/13, 11/01/13(a)(b)(c) | | | 5,000,000 | |
| | |
| | | | Total Other Commercial Paper
(Cost $5,000,000) | | | 5,000,000 | |
|
| | Repurchase Agreements: 83.66% | |
| | |
| | 20,000,000 | | | G.X. Clarke & Co., 0.210%, dated 06/30/13 and maturing 07/03/13 with a repurchase amount of $20,000,350, collateralized by several FHLMC, FNMA, FFCB, and U.S. Government Agency Securities with rates ranging from 0.000% to 9.000% and with maturity dates ranging from 10/10/13 to 11/08/32 with a collateral value of $21,325,865. | | | 20,000,000 | |
| | | | | | | | |
Principal Amount | | | | | Value (Note 2) | |
| | |
| | $18,000,000 | | | G.X. Clarke & Co., 0.300%, dated 06/30/13 and maturing 07/05/13 with a repurchase amount of $18,000,750, collateralized by several FHLMC and GNMA Securities with rates ranging from 0.500% to 10.000% and with maturity dates ranging from 11/25/14 to 03/15/40 with a collateral value of $18,361,569. | | $ | 18,000,000 | |
| | |
| | 18,000,000 | | | G.X. Clarke & Co., 0.300%, dated 06/30/13 and maturing 07/02/13 with a repurchase amount of $18,000,300, collateralized by several FHLMC and FNMA Securities with rates ranging from 0.375% to 6.750% and with maturity dates ranging from 03/16/15 to 03/15/31 with a collateral value of $18,364,039. | | | 18,000,000 | |
| | |
| | 6,000,000 | | | G.X. Clarke & Co., 0.130%, dated 06/30/13 and maturing 07/01/13 with a repurchase amount of $6,000,022, collateralized by several FHLMC and FNMA Securities with rates ranging from 0.625% to 5.000% and with maturity dates ranging from 12/29/14 to 03/15/16 with a collateral value of $6,124,452. | | | 6,000,000 | |
| | |
| | 20,000,000 | | | G.X. Clarke & Co., 0.200%, dated 06/30/13 and maturing 07/01/13 with a repurchase amount of $20,000,111, collateralized by several FFCB Securities with rates ranging from 0.000% to 1.600% and with maturity dates ranging from 09/23/13 to 05/13/20 with a collateral value of $20,400,037. | | | 20,000,000 | |
| | |
| | | | Total Repurchase Agreements
(Cost $82,000,000) | | | 82,000,000 | |
| | |
| | | | Total Investments: 97.14%
(Cost $95,213,700) | | | 95,213,700 | |
| | |
| | | | Net Other Assets and Liabilities: 2.86% | | | 2,798,363 | |
| | |
| | | | Net Assets: 100.00% | | $ | 98,012,063 | |
Percentages are stated as a percent of net assets.
(a) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in the ordinary course of business in transactions exempt from registration, normally to qualified institutional buyers. At period end, the aggregate market value of those securities was $5,000,000, representing 5.10% of net assets.
| | | | |
| See Notes to Financial Statements | | 41 | | June 30, 2013 |
Portfolio of Investments (Note 11) (Unaudited)
Forward U.S. Government Money Fund
(b) Rate shown represents the bond equivalent yield to maturity at date of purchase.
(c) Interest rate will change at a future date. Interest rate shown reflects the rate in effect at June 30, 2013. The first maturity date shown is the next interest rate change date. The second maturity date shown is the final legal maturity.
Investment Abbreviations:
FFCB — Federal Farm Credit Bank
GNMA — Government National Mortgage Association
| | | | |
| June 30, 2013 | | 42 | | See Notes to Financial Statements |
Portfolio of Investments (Note 11) (Unaudited)
Forward Balanced Allocation Fund
| | | | | | | | | | | | |
| Shares | | | | | Allocation | | | Value
(Note 2) | |
|
| | Affiliated Investment Companies: 88.70% | |
| | | |
| | 110,793 | | | Forward Commodity Long/Short Strategy
Fund — Class Z(a) | | | 7.40 | % | | $ | 2,476,208 | |
| | | |
| | 308,007 | | | Forward EM Corporate Debt
Fund — Institutional Class(a) | | | 8.62 | % | | | 2,882,943 | |
| | | |
| | 98,644 | | | Forward Frontier Strategy
Fund — Class Z | | | 3.18 | % | | | 1,062,399 | |
| | | |
| | 131,815 | | | Forward High Yield Bond Fund — Class Z | | | 4.04 | % | | | 1,351,108 | |
| | | |
| | 796,751 | | | Forward International Dividend
Fund — Institutional Class(a) | | | 18.35 | % | | | 6,134,980 | |
| | | |
| | 34,440 | | | Forward International Real Estate
Fund — Institutional Class(a) | | | 1.67 | % | | | 559,994 | |
| | | |
| | 591,142 | | | Forward Investment Grade Fixed-Income
Fund — Class Z | | | 19.72 | % | | | 6,597,140 | |
| | | |
| | 85,446 | | | Forward Managed Futures Strategy
Fund — Class Z(a) | | | 5.37 | % | | | 1,796,960 | |
| | | |
| | 29,025 | | | Forward Real Estate Fund — Institutional Class(a) | | | 1.23 | % | | | 411,866 | |
| | | |
| | 138,705 | | | Forward Select EM Dividend
Fund — Institutional Class(a) | | | 9.50 | % | | | 3,179,120 | |
| | | |
| | 100,159 | | | Forward Total MarketPlus Fund — Class Z | | | 9.62 | % | | | 3,216,095 | |
| | | |
| | | | Total Affiliated Investment Companies (Cost $28,669,954) | | | | | | | 29,668,813 | |
| | | |
| | | | Total Investments: 88.70%
(Cost $28,669,954) | | | | | | | 29,668,813 | |
| | |
| | | | Net Other Assets and Liabilities: 11.30% | | | | 3,779,743 | |
| | | |
| | | | Net Assets: 100.00% | | | | | | $ | 33,448,556 | |
Percentages are stated as a percent of net assets.
(a) The Forward Commodity Long/Short Strategy Fund, the Forward EM Corporate Debt Fund, the Forward International Dividend Fund, the Forward International Real Estate Fund, the Forward Managed Futures Strategy Fund, the Forward Real Estate Fund, and the Forward Select EM Dividend Fund’s June 30, 2013 Semi-Annual Report may be obtained at www.forwardinvesting.com.
| | | | |
| See Notes to Financial Statements | | 43 | | June 30, 2013 |
Portfolio of Investments (Note 11) (Unaudited)
Forward Growth & Income Allocation Fund
| | | | | | | | | | | | |
| Shares | | | | | Allocation | | | Value
(Note 2) | |
|
| | Affiliated Investment Companies: 90.95% | |
| | | |
| | 132,027 | | | Forward Commodity Long/Short Strategy Fund — Class Z(a) | | | 7.08 | % | | $ | 2,950,796 | |
| | | |
| | 235,140 | | | Forward EM Corporate Debt
Fund — Institutional Class(a) | | | 5.28 | % | | | 2,200,906 | |
| | | |
| | 160,504 | | | Forward Frontier Strategy
Fund — Class Z | | | 4.15 | % | | | 1,728,624 | |
| | | |
| | 94,087 | | | Forward High Yield Bond
Fund — Class Z | | | 2.31 | % | | | 964,394 | |
| | | |
| | 1,388,368 | | | Forward International Dividend
Fund — Institutional Class(a) | | | 25.65 | % | | | 10,690,432 | |
| | | |
| | 42,116 | | | Forward International Real Estate
Fund — Institutional Class(a) | | | 1.64 | % | | | 684,812 | |
| | | |
| | 439,850 | | | Forward Investment Grade Fixed-Income Fund — Class Z | | | 11.78 | % | | | 4,908,729 | |
| | | |
| | 103,471 | | | Forward Managed Futures Strategy Fund — Class Z(a) | | | 5.22 | % | | | 2,175,988 | |
| | | |
| | 35,493 | | | Forward Real Estate
Fund — Institutional Class(a) | | | 1.21 | % | | | 503,644 | |
| | | |
| | 246,083 | | | Forward Select EM Dividend
Fund — Institutional Class(a) | | | 13.53 | % | | | 5,640,223 | |
| | | |
| | 170,013 | | | Forward Total MarketPlus
Fund — Class Z | | | 13.10 | % | | | 5,459,128 | |
| | |
| | | | Total Affiliated Investment Companies
(Cost $37,167,660) | | | | 37,907,676 | |
| | | |
| | | | Total Investments: 90.95%
(Cost $37,167,660) | | | | | | | 37,907,676 | |
| | |
| | | | Net Other Assets and Liabilities: 9.05% | | | | 3,773,893 | |
| | | |
| | | | Net Assets: 100.00% | | | | | | $ | 41,681,569 | |
Percentages are stated as a percent of net assets.
(a) The Forward Commodity Long/Short Strategy Fund, the Forward EM Corporate Debt Fund, the Forward International Dividend Fund, the Forward International Real Estate Fund, the Forward Managed Futures Strategy Fund, the Forward Real Estate Fund, and the Forward Select EM Dividend Fund’s June 30, 2013 Semi-Annual Report may be obtained at www.forwardinvesting.com.
| | | | |
| June 30, 2013 | | 44 | | See Notes to Financial Statements |
Portfolio of Investments (Note 11) (Unaudited)
Forward Growth Allocation Fund
| | | | | | | | | | | | |
| Shares | | | | | Allocation | | | Value
(Note 2) | |
|
| | Affiliated Investment Companies: 93.49% | |
| | | |
| | 44,665 | | | Forward Commodity Long/Short Strategy Fund — Class Z(a) | | | 2.62 | % | | $ | 998,266 | |
| | | |
| | 120,510 | | | Forward EM Corporate Debt
Fund — Institutional Class(a) | | | 2.96 | % | | | 1,127,977 | |
| | | |
| | 179,056 | | | Forward Frontier Strategy
Fund — Class Z | | | 5.07 | % | | | 1,928,435 | |
| | | |
| | 50,378 | | | Forward High Yield Bond
Fund — Class Z | | | 1.36 | % | | | 516,373 | |
| | | |
| | 1,522,145 | | | Forward International Dividend
Fund — Institutional Class(a) | | | 30.78 | % | | | 11,720,520 | |
| | | |
| | 88,028 | | | Forward International Real Estate
Fund — Institutional Class(a) | | | 3.76 | % | | | 1,431,328 | |
| | | |
| | 220,736 | | | Forward Investment Grade Fixed-Income Fund — Class Z | | | 6.47 | % | | | 2,463,415 | |
| | | |
| | 94,589 | | | Forward Managed Futures Strategy Fund — Class Z(a) | | | 5.23 | % | | | 1,989,204 | |
| | | |
| | 97,276 | | | Forward Real Estate
Fund — Institutional Class(a) | | | 3.63 | % | | | 1,380,351 | |
| | | |
| | 265,521 | | | Forward Select EM Dividend
Fund — Institutional Class(a) | | | 15.99 | % | | | 6,085,747 | |
| | | |
| | 185,322 | | | Forward Total MarketPlus
Fund — Class Z | | | 15.62 | % | | | 5,950,678 | |
| | |
| | | | Total Affiliated Investment Companies
(Cost $35,040,501) | | | | 35,592,294 | |
| | | |
| | | | Total Investments: 93.49%
(Cost $35,040,501) | | | | | | | 35,592,294 | |
| | |
| | | | Net Other Assets and Liabilities: 6.51% | | | | 2,476,824 | |
| | | |
| | | | Net Assets: 100.00% | | | | | | $ | 38,069,118 | |
Percentages are stated as a percent of net assets.
(a) The Forward Commodity Long/Short Strategy Fund, the Forward EM Corporate Debt Fund, the Forward International Dividend Fund, the Forward International Real Estate Fund, the Forward Managed Futures Strategy Fund, the Forward Real Estate Fund, and the Forward Select EM Dividend Fund’s June 30, 2013 Semi-Annual Report may be obtained at www.forwardinvesting.com.
| | | | |
| See Notes to Financial Statements | | 45 | | June 30, 2013 |
Portfolio of Investments (Note 11) (Unaudited)
Forward Income & Growth Allocation Fund
| | | | | | | | | | | | |
| Shares | | | | | Allocation | | | Value
(Note 2) | |
|
| | Affiliated Investment Companies: 85.92% | |
| | | |
| | 51,653 | | | Forward Commodity Long/Short Strategy Fund — Class Z(a) | | | 5.55 | % | | $ | 1,154,454 | |
| | | |
| | 286,961 | | | Forward EM Corporate Debt
Fund — Institutional Class(a) | | | 12.92 | % | | | 2,685,953 | |
| | | |
| | 35,435 | | | Forward Frontier Strategy
Fund — Class Z | | | 1.84 | % | | | 381,637 | |
| | | |
| | 124,299 | | | Forward High Yield Bond Fund — Class Z | | | 6.13 | % | | | 1,274,060 | |
| | | |
| | 301,909 | | | Forward International Dividend
Fund — Institutional Class(a) | | | 11.18 | % | | | 2,324,701 | |
| | | |
| | 11,508 | | | Forward International Real Estate
Fund — Institutional Class(a) | | | 0.90 | % | | | 187,117 | |
| | | |
| | 550,630 | | | Forward Investment Grade Fixed-Income Fund — Class Z | | | 29.56 | % | | | 6,145,027 | |
| | | |
| | 54,383 | | | Forward Managed Futures Strategy
Fund — Class Z(a) | | | 5.50 | % | | | 1,143,665 | |
| | | |
| | 10,089 | | | Forward Real Estate
Fund — Institutional Class(a) | | | 0.69 | % | | | 143,165 | |
| | | |
| | 52,244 | | | Forward Select EM Dividend
Fund — Institutional Class(a) | | | 5.76 | % | | | 1,197,429 | |
| | | |
| | 38,155 | | | Forward Total MarketPlus Fund — Class Z | | | 5.89 | % | | | 1,225,150 | |
| | | |
| | | | Total Affiliated Investment Companies
(Cost $16,970,286) | | | | | | | 17,862,358 | |
| | | |
| | | | Total Investments: 85.92%
(Cost $16,970,286) | | | | | | | 17,862,358 | |
| | |
| | | | Net Other Assets and Liabilities: 14.08% | | | | 2,926,994 | |
| | | |
| | | | Net Assets: 100.00% | | | | | | $ | 20,789,352 | |
Percentages are stated as a percent of net assets.
(a) The Forward Commodity Long/Short Strategy Fund, the Forward EM Corporate Debt Fund, the Forward International Dividend Fund, the Forward International Real Estate Fund, the Forward Managed Futures Strategy Fund, the Forward Real Estate Fund, and the Forward Select EM Dividend Fund’s June 30, 2013 Semi-Annual Report may be obtained at www.forwardinvesting.com.
| | | | |
| June 30, 2013 | | 46 | | See Notes to Financial Statements |
Portfolio of Investments (Note 11) (Unaudited)
Forward Income Builder Fund
| | | | | | | | | | | | |
| Shares | | | | | Allocation | | | Value
(Note 2) | |
|
| | Affiliated Investment Companies: 97.47% | |
| | | |
| | 549,405 | | | Forward EM Corporate Debt
Fund — Institutional Class(a) | | | 24.31 | % | | $ | 5,142,433 | |
| | | |
| | 149,393 | | | Forward Global Infrastructure
Fund — Institutional Class(a) | | | 14.73 | % | | | 3,114,851 | |
| | | |
| | 203,786 | | | Forward High Yield Bond Fund — Class Z | | | 9.88 | % | | | 2,088,802 | |
| | | |
| | 660,086 | | | Forward International Dividend
Fund — Institutional Class(a) | | | 24.03 | % | | | 5,082,665 | |
| | | |
| | 207,425 | | | Forward Select Income
Fund — Institutional Class(a) | | | 24.52 | % | | | 5,185,622 | |
| | | |
| | | | Total Affiliated Investment Companies
(Cost $20,474,810) | | | | | | | 20,614,373 | |
| | | |
| | | | Total Investments: 97.47%
(Cost $20,474,810) | | | | | | | 20,614,373 | |
| | |
| | | | Net Other Assets and Liabilities: 2.53% | | | | 536,129 | |
| | | |
| | | | Net Assets: 100.00% | | | | | | $ | 21,150,502 | |
Percentages are stated as a percent of net assets.
(a) The Forward EM Corporate Debt Fund, the Forward Global Infrastructure Fund, the Forward International Dividend Fund, and the Forward Select Income Fund’s June 30, 2013 Semi-Annual Report may be obtained at www.forwardinvesting.com.
| | | | |
| See Notes to Financial Statements | | 47 | | June 30, 2013 |
Portfolio of Investments (Note 11) (Unaudited)
Forward Multi-Strategy Fund
| | | | | | | | | | | | |
| Shares | | | | | Allocation | | | Value
(Note 2) | |
|
| | Affiliated Investment Companies: 99.55% | |
| | | |
| | 177,819 | | | Forward Emerging Markets
Fund — Institutional Class(a) | | | 14.75 | % | | $ | 1,904,436 | |
| | | |
| | 25,160 | | | Forward Endurance Long/Short
Fund — Institutional Class(a) | | | 5.11 | % | | | 660,711 | |
| | | |
| | 88,812 | | | Forward Frontier Strategy
Fund — Class Z | | | 7.40 | % | | | 956,503 | |
| | | |
| | 59,102 | | | Forward Global Credit Long/Short
Fund — Institutional Class(a) | | | 10.41 | % | | | 1,344,580 | |
| | | |
| | 18,852 | | | Forward Global Infrastructure
Fund — Institutional Class(a) | | | 3.04 | % | | | 393,069 | |
| | | |
| | 248,562 | | | Forward International Dividend
Fund — Institutional Class(a) | | | 14.82 | % | | | 1,913,927 | |
| | | |
| | 14,020 | | | Forward International Real Estate
Fund — Institutional Class(a) | | | 1.76 | % | | | 227,969 | |
| | | |
| | 23,403 | | | Forward International Small Companies Fund — Institutional Class(a) | | | 2.65 | % | | | 342,625 | |
| | | |
| | 32,164 | | | Forward Managed Futures Strategy
Fund — Class Z(a) | | | 5.24 | % | | | 676,400 | |
| | | |
| | 43,971 | | | Forward Real Estate Long/Short
Fund — Institutional Class(a) | | | 10.12 | % | | | 1,307,699 | |
| | | |
| | 36,818 | | | Forward Select Income
Fund — Institutional Class(a) | | | 7.12 | % | | | 920,460 | |
| | | |
| | 76,058 | | | Forward Tactical Enhanced
Fund — Institutional Class(a) | | | 15.44 | % | | | 1,994,234 | |
| | | |
| | 6,810 | | | Forward Total MarketPlus Fund — Class Z | | | 1.69 | % | | | 218,683 | |
| | | |
| | | | Total Affiliated Investment Companies
(Cost $12,990,871) | | | | | | | 12,861,296 | |
| | | |
| | | | Total Investments: 99.55%
(Cost $12,990,871) | | | | | | | 12,861,296 | |
| | |
| | | | Net Other Assets and Liabilities: 0.45% | | | | 58,285 | |
| | | |
| | | | Net Assets: 100.00% | | | | | | $ | 12,919,581 | |
Percentages are stated as a percent of net assets.
(a) The Forward Emerging Markets Fund, the Forward Endurance Long/Short Fund, the Forward Global Credit Long/Short Fund, the Forward Global Infrastructure Fund, the Forward International Dividend Fund, the Forward International Real Estate Fund, the Forward International Small Companies Fund, the Forward Managed Futures Strategy Fund, the Forward Real Estate Long/Short Fund, the Forward Select Income Fund and the Forward Tactical Enhanced Fund’s June 30, 2013 Semi-Annual Report may be obtained at www.forwardinvesting.com.
| | | | |
| June 30, 2013 | | 48 | | See Notes to Financial Statements |
Statement of Assets and Liabilities (Unaudited)
| | | | | | | | | | | | |
| | | Forward Frontier
Strategy
Fund | | | Forward High Yield
Bond Fund | | | Forward
Investment
Grade
Fixed-Income Fund | |
Assets: | | | | | | | | | | | | |
Investments, at value | | $ | 60,432,071 | | | $ | 123,632,814 | | | $ | 32,981,494 | |
Cash | | | 19,752,066 | | | | 2,988,787 | | | | 172,584 | |
Deposit with broker for swap contracts | | | 280,035 | | | | 0 | | | | 0 | |
Deposit with broker for futures contracts | | | 0 | | | | 0 | | | | 6,252 | |
Unrealized gain on swap contracts | | | 1,510,228 | | | | 0 | | | | 0 | |
Receivable for investments sold | | | 42,050 | | | | 3,462,913 | | | | 0 | |
Receivable for shares sold | | | 78,336 | | | | 83,728 | | | | 20,171 | |
Interest and dividends receivable | | | 156,437 | | | | 2,242,907 | | | | 270,205 | |
Other assets | | | 23,748 | | | | 42,411 | | | | 17,408 | |
| | | | | | | | | | | | |
Total Assets | | | 82,274,971 | | | | 132,453,560 | | | | 33,468,114 | |
| | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | |
Variation margin payable | | | 0 | | | | 0 | | | | 9,919 | |
Unrealized loss on swap contracts | | | 226,330 | | | | 0 | | | | 0 | |
Payable for investments purchased | | | 0 | | | | 2,625,000 | | | | 0 | |
Payable for shares redeemed | | | 280,757 | | | | 279,142 | | | | 12,261 | |
Payable to advisor | | | 35,293 | | | | 28,772 | | | | 7,050 | |
Payable to sub-advisor | | | 0 | | | | 28,772 | | | | 7,050 | |
Payable for distribution and service fees | | | 7,467 | | | | 30,837 | | | | 1,730 | |
Payable to trustees | | | 219 | | | | 301 | | | | 300 | |
Payable for chief compliance officer fee | | | 317 | | | | 584 | | | | 222 | |
Interest payable on swap contracts | | | 206,456 | | | | 0 | | | | 0 | |
Payable to ReFlow (Note 2) | | | 2,522 | | | | 0 | | | | 0 | |
Payable for legal and audit fees | | | 23,718 | | | | 15,471 | | | | 2,779 | |
Accrued expenses and other liabilities | | | 15,597 | | | | 27,318 | | | | 13,234 | |
| | | | | | | | | | | | |
Total Liabilities | | | 798,676 | | | | 3,036,197 | | | | 54,545 | |
| | | | | | | | | | | | |
Net Assets | | $ | 81,476,295 | | | $ | 129,417,363 | | | $ | 33,413,569 | |
| | | | | | | | | | | | |
Net Assets Consist of: | | | | | | | | | | | | |
Paid-in capital (Note 7) | | $ | 79,984,040 | | | $ | 126,947,102 | | | $ | 48,588,910 | |
Accumulated net investment income/(loss) | | | (66,389 | ) | | | 125,877 | | | | (615,553 | ) |
Accumulated net realized gain/(loss) on investments, futures contracts and swap contracts | | | 433,538 | | | | 1,632,809 | | | | (6,891,605 | ) |
Net unrealized appreciation/(depreciation) on investments, futures contracts and swap contracts | | | 1,125,106 | | | | 711,575 | | | | (7,668,183 | ) |
| | | | | | | | | | | | |
Total Net Assets | | $ | 81,476,295 | | | $ | 129,417,363 | | | $ | 33,413,569 | |
| | | | | | | | | | | | |
| | | |
Investments, at Cost | | $ | 60,590,863 | | | $ | 122,921,239 | | | $ | 40,639,758 | |
| | | |
Pricing of Shares | | | | | | | | | | | | |
Investor Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $10.71 | | | | $10.29 | | | | $11.18 | |
Net Assets | | $ | 3,986,231 | | | $ | 56,079,788 | | | $ | 1,628,117 | |
Shares of beneficial interest outstanding | | | 372,030 | | | | 5,450,439 | | | | 145,687 | |
Institutional Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $10.75 | | | | $10.26 | | | | $11.18 | |
Net Assets | | $ | 71,420,635 | | | $ | 65,934,009 | | | $ | 11,672,782 | |
Shares of beneficial interest outstanding | | | 6,644,773 | | | | 6,425,966 | | | | 1,044,462 | |
| | | | |
| See Notes to Financial Statements | | 49 | | June 30, 2013 |
Statement of Assets and Liabilities (Unaudited)
| | | | | | | | | | | | |
| | | Forward Frontier
Strategy
Fund (continued) | | | Forward High Yield
Bond Fund (continued) | | | Forward
Investment
Grade
Fixed-Income Fund (continued) | |
Class C: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | — | | | | $10.26 | | | | — | |
Net Assets | | | — | | | $ | 1,209,383 | | | | — | |
Shares of beneficial interest outstanding | | | — | | | | 117,871 | | | | — | |
Advisor Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $10.75 | | | | — | | | | — | |
Net Assets | | $ | 9,525 | | | | — | | | | — | |
Shares of beneficial interest outstanding | | | 886 | | | | — | | | | — | |
Class Z: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $10.77 | | | | $10.25 | | | | $11.16 | |
Net Assets | | $ | 6,059,904 | | | $ | 6,194,183 | | | $ | 20,112,670 | |
Shares of beneficial interest outstanding | | | 562,451 | | | | 604,365 | | | | 1,802,358 | |
| | | | |
| June 30, 2013 | | 50 | | See Notes to Financial Statements |
Statement of Assets and Liabilities (Unaudited)
| | | | | | | | |
| | | Forward Total
MarketPlus Fund | | | Forward U.S. Government Money Fund | |
Assets: | | | | | | | | |
Investments, at value | | $ | 24,792,897 | | | $ | 13,213,700 | |
Repurchase agreements, at value | | | 0 | | | | 82,000,000 | |
Cash | | | 10,725,317 | | | | 2,748,227 | |
Deposit with broker for swap contracts | | | 310,070 | | | | 0 | |
Unrealized gain on swap contracts | | | 2,850,298 | | | | 0 | |
Receivable for investments sold | | | 14,746 | | | | 0 | |
Receivable for shares sold | | | 75 | | | | 0 | |
Interest and dividends receivable | | | 25,497 | | | | 54,433 | |
Other assets | | | 17,464 | | | | 24,864 | |
| | | | | | | | |
Total Assets | | | 38,736,364 | | | | 98,041,224 | |
| | | | | | | | |
Liabilities: | | | | | | | | |
Unrealized loss on swap contracts | | | 354,914 | | | | 0 | |
Payable for shares redeemed | | | 14,842 | | | | 0 | |
Payable for fund distribution | | | 0 | | | | 744 | |
Payable to advisor | | | 7,666 | | | | 2,144 | |
Payable for distribution and service fees | | | 2,744 | | | | 205 | |
Payable to trustees | | | 205 | | | | 1,948 | |
Payable for chief compliance officer fee | | | 174 | | | | 202 | |
Interest payable on swap contracts | | | 135,555 | | | | 0 | |
Payable for legal and audit fees | | | 18,888 | | | | 9,029 | |
Accrued expenses and other liabilities | | | 15,278 | | | | 14,889 | |
| | | | | | | | |
Total Liabilities | | | 550,266 | | | | 29,161 | |
| | | | | | | | |
Net Assets | | $ | 38,186,098 | | | $ | 98,012,063 | |
| | | | | | | | |
Net Assets Consist of: | | | | | | | | |
Paid-in capital (Note 7) | | $ | 42,262,211 | | | $ | 98,013,929 | |
Accumulated net investment loss | | | (5,807 | ) | | | 0 | |
Accumulated net realized loss on investments and swap contracts | | | (6,561,724 | ) | | | (1,866 | ) |
Net unrealized appreciation on investments and swap contracts | | | 2,491,418 | | | | 0 | |
| | | | | | | | |
Total Net Assets | | $ | 38,186,098 | | | $ | 98,012,063 | |
| | | | | | | | |
| | |
Investments, at Cost | | $ | 24,796,863 | | | $ | 13,213,700 | |
| | |
Repurchase Agreements, at Cost | | $ | 0 | | | $ | 82,000,000 | |
| | |
Pricing of Shares | | | | | | | | |
Investor Class: | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $30.02 | | | | $1.00 | |
Net Assets | | $ | 1,360,887 | | | $ | 1,593,488 | |
Shares of beneficial interest outstanding | | | 45,335 | | | | 1,592,781 | |
Institutional Class: | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $32.02 | | | | $1.00 | |
Net Assets | | $ | 20,756,481 | | | $ | 91,104,970 | |
Shares of beneficial interest outstanding | | | 648,148 | | | | 91,107,848 | |
Class A: | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | — | | | | $1.00 | |
Net Assets | | | — | | | $ | 1,542,821 | |
Shares of beneficial interest outstanding | | | — | | | | 1,543,153 | |
| | | | |
| See Notes to Financial Statements | | 51 | | June 30, 2013 |
Statement of Assets and Liabilities (Unaudited)
| | | | | | | | |
| | | Forward Total
MarketPlus Fund (continued) | | | Forward U.S. Government Money Fund (continued) | |
Class C: | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | — | | | | $1.00 | |
Net Assets | | | — | | | $ | 2,149,992 | |
Shares of beneficial interest outstanding | | | — | | | | 2,150,127 | |
Class Z: | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $32.11 | | | | $1.00 | |
Net Assets | | $ | 16,068,730 | | | $ | 1,620,792 | |
Shares of beneficial interest outstanding | | | 500,460 | | | | 1,621,051 | |
| | | | |
| June 30, 2013 | | 52 | | See Notes to Financial Statements |
Statement of Assets and Liabilities (Unaudited)
| | | | | | | | | | | | |
| | | Forward Balanced
Allocation
Fund | | | Forward Growth & Income
Allocation Fund | | | Forward
Growth
Allocation
Fund | |
Assets: | | | | | | | | | | | | |
Investments in affiliates, at value | | $ | 29,668,813 | | | $ | 37,907,676 | | | $ | 35,592,294 | |
Cash | | | 3,868,175 | | | | 3,832,449 | | | | 2,515,767 | |
Receivable for shares sold | | | 14,220 | | | | 9,049 | | | | 22,084 | |
Other assets | | | 22,438 | | | | 25,270 | | | | 22,587 | |
| | | | | | | | | | | | |
Total Assets | | | 33,573,646 | | | | 41,774,444 | | | | 38,152,732 | |
| | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | |
Payable for shares redeemed | | | 95,591 | | | | 50,212 | | | | 37,708 | |
Payable for distribution and service fees | | | 9,669 | | | | 16,536 | | | | 15,939 | |
Payable for chief compliance officer fee | | | 223 | | | | 229 | | | | 221 | |
Payable for legal and audit fees | | | 8,492 | | | | 8,523 | | | | 8,516 | |
Accrued expenses and other liabilities | | | 11,115 | | | | 17,375 | | | | 21,230 | |
| | | | | | | | | | | | |
Total Liabilities | | | 125,090 | | | | 92,875 | | | | 83,614 | |
| | | | | | | | | | | | |
Net Assets | | $ | 33,448,556 | | | $ | 41,681,569 | | | $ | 38,069,118 | |
| | | | | | | | | | | | |
Net Assets Consist of: | | | | | | | | | | | | |
Paid-in capital (Note 7) | | $ | 36,145,060 | | | $ | 46,917,587 | | | $ | 45,422,240 | |
Accumulated net investment loss | | | (2,770 | ) | | | (4,094 | ) | | | (3,928 | ) |
Accumulated net realized loss on investments | | | (3,692,593 | ) | | | (5,971,940 | ) | | | (7,900,987 | ) |
Net unrealized appreciation on investments | | | 998,859 | | | | 740,016 | | | | 551,793 | |
| | | | | | | | | | | | |
Total Net Assets | | $ | 33,448,556 | | | $ | 41,681,569 | | | $ | 38,069,118 | |
| | | | | | | | | | | | |
| | | |
Investments in Affiliates, at Cost | | $ | 28,669,954 | | | $ | 37,167,660 | | | $ | 35,040,501 | |
| | | |
Pricing of Shares | | | | | | | | | | | | |
Investor Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $15.02 | | | | $15.25 | | | | $14.33 | |
Net Assets | | $ | 3,114,398 | | | $ | 4,110,673 | | | $ | 3,591,015 | |
Shares of beneficial interest outstanding | | | 207,415 | | | | 269,559 | | | | 250,517 | |
Institutional Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $15.03 | | | | $15.27 | | | | $14.34 | |
Net Assets | | $ | 17,652,892 | | | $ | 13,753,619 | | | $ | 12,535,010 | |
Shares of beneficial interest outstanding | | | 1,174,381 | | | | 900,853 | | | | 874,029 | |
Class A: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $15.01 | | | | $15.22 | | | | $14.33 | |
Net Assets | | $ | 5,561,638 | | | $ | 11,399,785 | | | $ | 10,128,576 | |
Shares of beneficial interest outstanding | | | 370,519 | | | | 749,072 | | | | 706,792 | |
Maximum offering price per share (NAV/0.9425, based on maximum sales charge of 5.75% of the offering price) | | | $15.93 | | | | $16.15 | | | | $15.20 | |
Class C: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $14.99 | | | | $15.21 | | | | $14.21 | |
Net Assets | | $ | 7,119,628 | | | $ | 12,417,492 | | | $ | 11,814,517 | |
Shares of beneficial interest outstanding | | | 474,870 | | | | 816,250 | | | | 831,445 | |
| | | | |
| See Notes to Financial Statements | | 53 | | June 30, 2013 |
Statement of Assets and Liabilities (Unaudited)
| | | | | | | | | | | | |
| | | Forward
Income &
Growth
Allocation Fund | | | Forward
Income
Builder Fund | | | Forward
Multi-Strategy
Fund | |
Assets: | | | | | | | | | | | | |
Investments in affiliates, at value | | $ | 17,862,358 | | | $ | 20,614,373 | | | $ | 12,861,296 | |
Cash | | | 2,990,850 | | | | 598,156 | | | | 95,390 | |
Receivable for shares sold | | | 5,321 | | | | 21,023 | | | | 13,020 | |
Receivable due from advisor | | | 0 | | | | 312 | | | | 0 | |
Other assets | | | 26,180 | | | | 21,790 | | | | 19,184 | |
| | | | | | | | | | | | |
Total Assets | | | 20,884,709 | | | | 21,255,654 | | | | 12,988,890 | |
| | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | |
Payable for shares redeemed | | | 76,699 | | | | 85,522 | | | | 42,422 | |
Payable for distribution and service fees | | | 3,445 | | | | 6,212 | | | | 5,671 | |
Payable for chief compliance officer fee | | | 207 | | | | 87 | | | | 90 | |
Payable to ReFlow (Note 2) | | | 0 | | | | 0 | | | | 24 | |
Payable for legal and audit fees | | | 8,326 | | | | 8,383 | | | | 8,289 | |
Accrued expenses and other liabilities | | | 6,680 | | | | 4,948 | | | | 12,813 | |
| | | | | | | | | | | | |
Total Liabilities | | | 95,357 | | | | 105,152 | | | | 69,309 | |
| | | | | | | | | | | | |
Net Assets | | $ | 20,789,352 | | | $ | 21,150,502 | | | $ | 12,919,581 | |
| | | | | | | | | | | | |
Net Assets Consist of: | | | | | | | | | | | | |
Paid-in capital (Note 7) | | $ | 18,680,168 | | | $ | 21,100,785 | | | $ | 16,699,327 | |
Accumulated net investment loss | | | (1,618 | ) | | | (2,384 | ) | | | (1,945 | ) |
Accumulated net realized gain/(loss) on investments | | | 1,218,730 | | | | (87,462 | ) | | | (3,648,226 | ) |
Net unrealized appreciation/(depreciation) on investments | | | 892,072 | | | | 139,563 | | | | (129,575 | ) |
| | | | | | | | | | | | |
Total Net Assets | | $ | 20,789,352 | | | $ | 21,150,502 | | | $ | 12,919,581 | |
| | | | | | | | | | | | |
| | | |
Investments in Affiliates, at Cost | | $ | 16,970,286 | | | $ | 20,474,810 | | | $ | 12,990,871 | |
| | | |
Pricing of Shares | | | | | | | | | | | | |
Investor Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $15.08 | | | | $15.14 | | | | $14.15 | |
Net Assets | | $ | 1,014,236 | | | $ | 1,582,974 | | | $ | 2,320,396 | |
Shares of beneficial interest outstanding | | | 67,267 | | | | 104,526 | | | | 163,980 | |
Institutional Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $15.08 | | | | $15.16 | | | | $14.64 | |
Net Assets | | $ | 16,481,749 | | | $ | 10,570,116 | | | $ | 4,071,092 | |
Shares of beneficial interest outstanding | | | 1,093,254 | | | | 697,068 | | | | 278,031 | |
Class A: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $15.07 | | | | $15.15 | | | | $14.43 | |
Net Assets | | $ | 1,056,213 | | | $ | 3,299,901 | | | $ | 3,869,429 | |
Shares of beneficial interest outstanding | | | 70,096 | | | | 217,751 | | | | 268,152 | |
Maximum offering price per share | | | $15.99 | (a) | | | $15.74 | (b) | | | $15.31 | (a) |
Class C: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $15.03 | | | | $15.10 | | | | $13.77 | |
Net Assets | | $ | 2,237,154 | | | $ | 5,697,511 | | | $ | 2,658,664 | |
Shares of beneficial interest outstanding | | | 148,894 | | | | 377,239 | | | | 193,011 | |
(a) Maximum offering price per share (NAV/0.9425, based on maximum sales charge of 5.75% of the offering price)
(b) Maximum offering price per share (NAV/0.9625, based on maximum sales charge of 3.75% of the offering price)
| | | | |
| June 30, 2013 | | 54 | | See Notes to Financial Statements |
Statement of Operations
For the Six Months Ended June 30, 2013 (Unaudited)
| | | | | | | | | | | | |
| | | Forward
Frontier
Strategy
Fund | | | Forward
High Yield
Bond Fund | | | Forward
Investment
Grade
Fixed-Income
Fund | |
Investment Income: | | | | | | | | | | | | |
Interest | | $ | 247,880 | | | $ | 4,721,328 | | | $ | 226,831 | |
Dividends | | | 21,950 | | | | — | | | | — | |
Foreign taxes withheld | | | (1,740 | ) | | | 0 | | | | 0 | |
| | | | | | | | | | | | |
Total Investment Income | | | 268,090 | | | | 4,721,328 | | | | 226,831 | |
| | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | |
Investment advisory fee | | | 323,647 | | | | 180,908 | | | | 48,119 | |
Investment sub-advisory fee | | | — | | | | 180,908 | | | | 48,119 | |
Administration fee | | | 27,366 | | | | 41,171 | | | | 18,834 | |
Custodian fee | | | 4,468 | | | | 9,125 | | | | 4,804 | |
Legal and audit fees | | | 25,433 | | | | 22,575 | | | | 16,925 | |
Transfer agent fee | | | 15,542 | | | | 18,820 | | | | 7,518 | |
Trustees’ fees and expenses | | | 4,035 | | | | 7,877 | | | | 2,165 | |
Registration/filing fees | | | 15,145 | | | | 32,523 | | | | 13,539 | |
Reports to shareholder and printing fees | | | 5,584 | | | | 11,672 | | | | 5,136 | |
Distribution and service fees | | | | | | | | | | | | |
Investor Class | | | 6,483 | | | | 110,514 | | | | 5,361 | |
Institutional Class | | | 33,287 | | | | 45,445 | | | | 5,470 | |
Class C | | | — | | | | 6,871 | | | | — | |
Advisor Class | | | 5 | | | | — | | | | — | |
Chief compliance officer fee | | | 1,965 | | | | 3,832 | | | | 1,056 | |
ReFlow fees (Note 2) | | | 6,170 | | | | — | | | | — | |
Other | | | 7,292 | | | | 5,218 | | | | 2,927 | |
| | | | | | | | | | | | |
Total expenses before waiver | | | 476,422 | | | | 677,459 | | | | 179,973 | |
Less fees waived/reimbursed by investment advisor (Note 3) | | | (49,594 | ) | | | 0 | | | | 0 | |
| | | | | | | | | | | | |
Total Net Expenses | | | 426,828 | | | | 677,459 | | | | 179,973 | |
| | | | | | | | | | | | |
Net Investment Income/(Loss): | | | (158,738 | ) | | | 4,043,869 | | | | 46,858 | |
| | | | | | | | | | | | |
Net realized gain/(loss) on investments | | | (29,754 | ) | | | 1,977,427 | | | | 1,944,153 | |
Net realized gain on futures contracts | | | 0 | | | | 0 | | | | 49,689 | |
Net realized gain on swap contracts | | | 6,091,511 | | | | 0 | | | | 0 | |
Net change in unrealized depreciation on investments | | | (245,368 | ) | | | (4,034,992 | ) | | | (3,010,325 | ) |
Net change in unrealized depreciation on futures contracts | | | 0 | | | | 0 | | | | (3,271 | ) |
Net change in unrealized appreciation on swap contracts | | | 537,747 | | | | 0 | | | | 0 | |
| | | | | | | | | | | | |
Net Realized and Unrealized Gain/(Loss) on Investments, Futures Contracts and Swap Contracts | | | 6,354,136 | | | | (2,057,565 | ) | | | (1,019,754 | ) |
| | | | | | | | | | | | |
Net Increase/(Decrease) in Net Assets Resulting From Operations | | $ | 6,195,398 | | | $ | 1,986,304 | | | $ | (972,896 | ) |
| | | | | | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 55 | | June 30, 2013 |
Statement of Operations
For the Six Months Ended June 30, 2013 (Unaudited)
| | | | | | | | |
| | | Forward
Total
MarketPlus
Fund | | | Forward
U.S. Government
Money Fund | |
Investment Income: | | | | | | | | |
Interest | | $ | 58,204 | | | $ | 122,923 | |
Dividends | | | 101,985 | | | | — | |
| | | | | | | | |
Total Investment Income | | | 160,189 | | | | 122,923 | |
| | | | | | | | |
Expenses: | | | | | | | | |
Investment advisory fee | | | 100,116 | | | | 35,583 | |
Administration fee | | | 22,149 | | | | 30,276 | |
Legal and audit fees | | | 23,342 | | | | 16,214 | |
Transfer agent fee | | | 10,955 | | | | 11,130 | |
Trustees’ fees and expenses | | | 2,230 | | | | 4,231 | |
Registration/filing fees | | | 15,554 | | | | 22,425 | |
Reports to shareholder and printing fees | | | 12,430 | | | | 4,897 | |
Distribution and service fees | | | | | | | | |
Investor Class | | | 4,257 | | | | 3,724 | |
Institutional Class | | | 11,565 | | | | — | |
Class A | | | — | | | | 1,575 | |
Class C | | | — | | | | 6,799 | |
Administrative services fees-Investor Class, Institutional Class, Class A and Class C | | | — | | | | 108,241 | |
Chief compliance officer fee | | | 1,062 | | | | 2,073 | |
ReFlow fees (Note 2) | | | 411 | | | | — | |
Other | | | 1,836 | | | | 4,802 | |
| | | | | | | | |
Total expenses before waiver | | | 205,907 | | | | 251,970 | |
Less fees waived/reimbursed by investment advisor (Note 3) | | | (39,911 | ) | | | (13,554 | ) |
Distribution and service fees | | | | | | | | |
Investor Class | | | — | | | | (3,724 | ) |
Class A | | | — | | | | (1,575 | ) |
Class C | | | — | | | | (6,799 | ) |
Administrative services fees - Investor Class, Institutional Class, Class A and Class C | | | — | | | | (108,241 | ) |
| | | | | | | | |
Total Net Expenses | | | 165,996 | | | | 118,077 | |
| | | | | | | | |
Net Investment Income/(Loss): | | | (5,807 | ) | | | 4,846 | |
| | | | | | | | |
Net realized loss on investments | | | (99,034 | ) | | | (1,521 | ) |
Net realized gain on swap contracts | | | 6,674,052 | | | | 0 | |
Net change in unrealized depreciation on investments | | | (129,571 | ) | | | 0 | |
Net change in unrealized depreciation on swap contracts | | | (1,666,818 | ) | | | 0 | |
| | | | | | | | |
Net Realized and Unrealized Gain/(Loss) on Investments and Swap Contracts | | | 4,778,629 | | | | (1,521 | ) |
| | | | | | | | |
Net Increase in Net Assets Resulting From Operations | | $ | 4,772,822 | | | $ | 3,325 | |
| | | | | | | | |
| | | | |
| June 30, 2013 | | 56 | | See Notes to Financial Statements |
Statement of Operations
For the Six Months Ended June 30, 2013 (Unaudited)
| | | | | | | | | | | | |
| | | Forward
Balanced
Allocation
Fund | | | Forward
Growth &
Income
Allocation Fund | | | Forward
Growth
Allocation
Fund | |
Investment Income: | | | | | | | | | | | | |
Interest | | $ | 1,142 | | | $ | 1,081 | | | $ | 804 | |
Dividends from affiliated investment company shares | | | 590,710 | | | | 663,088 | | | | 620,747 | |
| | | | | | | | | | | | |
Total Investment Income | | | 591,852 | | | | 664,169 | | | | 621,551 | |
| | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | |
Investment advisory fee | | | 20,366 | | | | 23,037 | | | | 20,969 | |
Administration fee | | | 8,455 | | | | 8,989 | | | | 8,575 | |
Custodian fee | | | 175 | | | | 237 | | | | — | |
Legal and audit fees | | | 11,067 | | | | 11,144 | | | | 11,066 | |
Transfer agent fee | | | 5,908 | | | | 13,336 | | | | 15,239 | |
Registration/filing fees | | | 18,913 | | | | 19,551 | | | | 18,885 | |
Reports to shareholder and printing fees | | | 5,844 | | | | 8,904 | | | | 11,485 | |
Distribution and service fees | | | | | | | | | | | | |
Investor Class | | | 9,276 | | | | 11,255 | | | | 10,208 | |
Class A | | | 10,113 | | | | 21,028 | | | | 18,715 | |
Class C | | | 44,567 | | | | 69,776 | | | | 68,015 | |
Chief compliance officer fee | | | 1,151 | | | | 1,261 | | | | 1,152 | |
Other | | | 4,962 | | | | 5,236 | | | | 4,971 | |
| | | | | | | | | | | | |
Total expenses before waiver | | | 140,797 | | | | 193,754 | | | | 189,280 | |
Less fees waived/reimbursed by investment advisor (Note 3) | | | (20,366 | ) | | | (23,037 | ) | | | (20,969 | ) |
| | | | | | | | | | | | |
Total Net Expenses | | | 120,431 | | | | 170,717 | | | | 168,311 | |
| | | | | | | | | | | | |
Net Investment Income: | | | 471,421 | | | | 493,452 | | | | 453,240 | |
| | | | | | | | | | | | |
Net realized gain on affiliated investments | | | 874,163 | | | | 364,786 | | | | 588,317 | |
Net realized gain on investments | | | 64,510 | | | | 97,242 | | | | 105,076 | |
Net change in unrealized appreciation/(depreciation) on affiliated investments | | | (337,813 | ) | | | 467,566 | | | | 274,328 | |
Net change in unrealized depreciation on investments | | | (2,057 | ) | | | (3,103 | ) | | | (3,355 | ) |
| | | | | | | | | | | | |
Net Realized and Unrealized Gain on Investments | | | 598,803 | | | | 926,491 | | | | 964,366 | |
| | | | | | | | | | | | |
Net Increase in Net Assets Resulting From Operations | | $ | 1,070,224 | | | $ | 1,419,943 | | | $ | 1,417,606 | |
| | | | | | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 57 | | June 30, 2013 |
Statement of Operations
For the Six Months Ended June 30, 2013 (Unaudited)
| | | | | | | | | | | | |
| | | Forward
Income &
Growth
Allocation Fund | | | Forward
Income
Builder
Fund | | | Forward
Multi-Strategy
Fund | |
Investment Income: | | | | | | | | | | | | |
Interest | | $ | 1,003 | | | $ | 449 | | | $ | 206 | |
Dividends from affiliated investment company shares | | | 416,925 | | | | 490,169 | | | | 138,097 | |
| | | | | | | | | | | | |
Total Investment Income | | | 417,928 | | | | 490,618 | | | | 138,303 | |
| | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | |
Investment advisory fee | | | 15,818 | | | | 9,903 | | | | 7,846 | |
Administration fee | | | 7,541 | | | | 6,335 | | | | 5,921 | |
Custodian fee | | | 74 | | | | — | | | | 331 | |
Legal and audit fees | | | 10,989 | | | | 10,596 | | | | 10,594 | |
Transfer agent fee | | | 2,315 | | | | 3,506 | | | | 7,461 | |
Registration/filing fees | | | 18,870 | | | | 18,868 | | | | 20,847 | |
Reports to shareholder and printing fees | | | 3,285 | | | | 3,526 | | | | 7,248 | |
Distribution and service fees | | | | | | | | | | | | |
Investor Class | | | 3,342 | | | | 4,255 | | | | 6,711 | |
Class A | | | 1,885 | | | | 2,710 | | | | 7,151 | |
Class C | | | 16,738 | | | | 29,435 | | | | 16,364 | |
Chief compliance officer fee | | | 960 | | | | 521 | | | | 448 | |
ReFlow fees (Note 2) | | | — | | | | — | | | | 135 | |
Other | | | 5,113 | | | | 3,750 | | | | 3,984 | |
| | | | | | | | | | | | |
Total expenses before waiver | | | 86,930 | | | | 93,405 | | | | 95,041 | |
Less fees waived/reimbursed by investment advisor (Note 3) | | | (15,818 | ) | | | (9,440 | ) | | | (7,846 | ) |
| | | | | | | | | | | | |
Total Net Expenses | | | 71,112 | | | | 83,965 | | | | 87,195 | |
| | | | | | | | | | | | |
Net Investment Income: | | | 346,816 | | | | 406,653 | | | | 51,108 | |
| | | | | | | | | | | | |
Net realized gain on affiliated investments | | | 1,374,799 | | | | 274,866 | | | | 656,970 | |
Net realized gain on investments | | | 63,493 | | | | 0 | | | | 0 | |
Net change in unrealized depreciation on affiliated investments | | | (959,072 | ) | | | (634,610 | ) | | | (232,430 | ) |
Net change in unrealized depreciation on investments | | | (2,030 | ) | | | 0 | | | | 0 | |
| | | | | | | | | | | | |
Net Realized and Unrealized Gain/(Loss) on Investments | | | 477,190 | | | | (359,744 | ) | | | 424,540 | |
| | | | | | | | | | | | |
Net Increase in Net Assets Resulting From Operations | | $ | 824,006 | | | $ | 46,909 | | | $ | 475,648 | |
| | | | | | | | | | | | |
| | | | |
| June 30, 2013 | | 58 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Frontier Strategy Fund | |
| | | Six Months Ended June 30, 2013 (Unaudited)(a) | | | Year Ended December 31, 2012 | |
Operations: | | | | | | | | |
Net investment loss | | $ | (158,738 | ) | | $ | (178,382 | ) |
Net realized loss on investments | | | (29,754 | ) | | | (3,255,327 | ) |
Net realized gain on swap contracts | | | 6,091,511 | | | | 4,218,261 | |
Net change in unrealized appreciation on investments and swap contracts | | | 292,379 | | | | 3,654,747 | |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 6,195,398 | | | | 4,439,299 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | — | | | | (204,257 | ) |
Institutional Class | | | — | | | | (3,924,968 | ) |
Advisor Class | | | — | | | | (609 | ) |
Class Z | | | — | | | | (370,167 | ) |
| | | | | | | | |
Total distributions | | | — | | | | (4,500,001 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 3,855,122 | | | | 2,541,791 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 83,404 | |
Cost of shares redeemed | | | (2,879,078 | ) | | | (2,798,585 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | 976,044 | | | | (173,390 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 17,222,806 | | | | 42,884,283 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 3,181,441 | |
Cost of shares redeemed | | | (7,522,602 | ) | | | (46,135,335 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | 9,700,204 | | | | (69,611 | ) |
| | | | | | | | |
Advisor Class | | | | | | | | |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | — | | | | — | |
| | | | | | | | |
Class Z | | | | | | | | |
Proceeds from sale of shares | | | 2,351,262 | | | | 500,000 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 370,167 | |
Cost of shares redeemed | | | (2,475,000 | ) | | | (9,100,000 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (123,738 | ) | | | (8,229,833 | ) |
| | | | | | | | |
Net increase/(decrease) in net assets | | $ | 16,747,908 | | | $ | (8,533,536 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 64,728,387 | | | | 73,261,923 | |
| | | | | | | | |
End of period (including accumulated net investment income/(loss) of $(66,389) and $92,349, respectively) | | $ | 81,476,295 | | | $ | 64,728,387 | |
| | | | | | | | |
Other Information: | | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 348,471 | | | | 256,866 | |
Distributions reinvested | | | — | | | | 8,537 | |
Redeemed | | | (265,082 | ) | | | (282,836 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | 83,389 | | | | (17,433 | ) |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 59 | | June 30, 2013 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Frontier Strategy Fund (continued) | |
| | | Six Months Ended June 30, 2013 (Unaudited)(a) | | | Year Ended December 31, 2012 | |
Institutional Class | | | | | | | | |
Sold | | | 1,593,457 | | | | 4,252,609 | |
Distributions reinvested | | | — | | | | 324,968 | |
Redeemed | | | (683,721 | ) | | | (4,568,426 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 909,736 | | | | 9,151 | |
| | | | | | | | |
Advisor Class | | | | | | | | |
| | | | | | | | |
Net increase in shares outstanding | | | — | | | | — | |
| | | | | | | | |
Class Z | | | | | | | | |
Sold | | | 223,694 | | | | 49,059 | |
Distributions reinvested | | | — | | | | 37,734 | |
Redeemed | | | (229,069 | ) | | | (887,442 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (5,375 | ) | | | (800,649 | ) |
| | | | | | | | |
(a) Prior to May 1, 2013, the Forward Frontier Strategy Fund Advisor Class was known as the Forward Frontier Strategy Fund Class M.
| | | | |
| June 30, 2013 | | 60 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward High Yield Bond Fund | |
| | | Six Months Ended June 30, 2013 (Unaudited) | | | Year Ended December 31, 2012 | |
Operations: | | | | | | | | |
Net investment income | | $ | 4,043,869 | | | $ | 8,990,746 | |
Net realized gain on investments | | | 1,977,427 | | | | 4,058,451 | |
Net change in unrealized appreciation/(depreciation) on investments | | | (4,034,992 | ) | | | 4,906,986 | |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 1,986,304 | | | | 17,956,183 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (1,192,671 | ) | | | (721,569 | ) |
Institutional Class | | | (2,483,906 | ) | | | (6,460,696 | ) |
Class C | | | (31,937 | ) | | | (61,809 | ) |
Class Z | | | (221,647 | ) | | | (1,755,215 | ) |
| | | | | | | | |
Total distributions | | | (3,930,161 | ) | | | (8,999,289 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 43,611,036 | | | | 42,505,341 | |
Issued to shareholders in reinvestment of distributions | | | 246,063 | | | | 719,289 | |
Cost of shares redeemed | | | (12,047,094 | ) | | | (20,263,615 | ) |
| | | | | | | | |
Net increase from share transactions | | | 31,810,005 | | | | 22,961,015 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 41,090,632 | | | | 85,744,027 | |
Issued to shareholders in reinvestment of distributions | | | 1,716,586 | | | | 4,452,127 | |
Cost of shares redeemed | | | (71,357,976 | ) | | | (98,798,891 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (28,550,758 | ) | | | (8,602,737 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 248,164 | | | | 598,167 | |
Issued to shareholders in reinvestment of distributions | | | 24,066 | | | | 41,923 | |
Cost of shares redeemed | | | (288,919 | ) | | | (497,811 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (16,689 | ) | | | 142,279 | |
| | | | | | | | |
Class Z | | | | | | | | |
Proceeds from sale of shares | | | 1,375,000 | | | | 15,000,000 | |
Cost of shares redeemed | | | (10,375,000 | ) | | | (48,150,000 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (9,000,000 | ) | | | (33,150,000 | ) |
| | | | | | | | |
Net decrease in net assets | | $ | (7,701,299 | ) | | $ | (9,692,549 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 137,118,662 | | | | 146,811,211 | |
| | | | | | | | |
End of period (including accumulated net investment income of $125,877 and $12,169, respectively) | | $ | 129,417,363 | | | $ | 137,118,662 | |
| | | | | | | | |
Other Information: | | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 4,120,489 | | | | 4,147,146 | |
Distributions reinvested | | | 23,332 | | | | 70,088 | |
Redeemed | | | (1,140,334 | ) | | | (1,968,184 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 3,003,487 | | | | 2,249,050 | |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 61 | | June 30, 2013 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward High Yield Bond Fund (continued) | |
| | | Six Months Ended June 30, 2013 (Unaudited) | | | Year Ended December 31, 2012 | |
Institutional Class | | | | | | | | |
Sold | | | 3,878,629 | | | | 8,449,031 | |
Distributions reinvested | | | 163,307 | | | | 440,719 | |
Redeemed | | | (6,786,121 | ) | | | (9,793,467 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (2,744,185 | ) | | | (903,717 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 23,643 | | | | 58,496 | |
Distributions reinvested | | | 2,293 | | | | 4,148 | |
Redeemed | | | (27,568 | ) | | | (49,201 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (1,632 | ) | | | 13,443 | |
| | | | | | | | |
Class Z | | | | | | | | |
Sold | | | 130,923 | | | | 1,478,564 | |
Redeemed | | | (990,379 | ) | | | (4,775,810 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (859,456 | ) | | | (3,297,246 | ) |
| | | | | | | | |
| | | | |
| June 30, 2013 | | 62 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Investment Grade Fixed-Income Fund | |
| | | Six Months Ended June 30, 2013 (Unaudited) | | | Year Ended December 31, 2012 | |
Operations: | | | | | | | | |
Net investment income | | $ | 46,858 | | | $ | 1,437,550 | |
Net realized gain on investments | | | 1,944,153 | | | | 2,680,667 | |
Net realized gain/(loss) on futures contracts | | | 49,689 | | | | (16,648 | ) |
Net change in unrealized appreciation/(depreciation) on investments and futures contracts | | | (3,013,596 | ) | | | 1,205,467 | |
| | | | | | | | |
Net increase/(decrease) in net assets resulting from operations | | | (972,896 | ) | | | 5,307,036 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (31,424 | ) | | | (71,102 | ) |
Institutional Class | | | (194,104 | ) | | | (486,079 | ) |
Class Z | | | (441,288 | ) | | | (1,703,791 | ) |
| | | | | | | | |
Total distributions | | | (666,816 | ) | | | (2,260,972 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 146,255 | | | | 2,223,886 | |
Issued to shareholders in reinvestment of distributions | | | 31,338 | | | | 70,949 | |
Cost of shares redeemed | | | (1,244,238 | ) | | | (2,682,510 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (1,066,645 | ) | | | (387,675 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 3,998,136 | | | | 6,508,561 | |
Issued to shareholders in reinvestment of distributions | | | 192,358 | | | | 476,106 | |
Cost of shares redeemed | | | (1,550,309 | ) | | | (15,330,661 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | 2,640,185 | | | | (8,345,994 | ) |
| | | | | | | | |
Class Z | | | | | | | | |
Proceeds from sale of shares | | | 775,000 | | | | 36,050,000 | |
Cost of shares redeemed | | | (15,500,000 | ) | | | (61,925,840 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (14,725,000 | ) | | | (25,875,840 | ) |
| | | | | | | | |
Net decrease in net assets | | $ | (14,791,172 | ) | | $ | (31,563,445 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 48,204,741 | | | | 79,768,186 | |
| | | | | | | | |
End of period (including accumulated net investment income/(loss) of $(615,553) and $4,405, respectively) | | $ | 33,413,569 | | | $ | 48,204,741 | |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 63 | | June 30, 2013 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Investment Grade Fixed-Income Fund (continued) | |
| | | Six Months Ended June 30, 2013 (Unaudited) | | | Year Ended December 31, 2012 | |
Other Information: | | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 12,533 | | | | 191,164 | |
Distributions reinvested | | | 2,705 | | | | 6,128 | |
Redeemed | | | (107,369 | ) | | | (232,232 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (92,131 | ) | | | (34,940 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 343,653 | | | | 556,357 | |
Distributions reinvested | | | 16,629 | | | | 41,177 | |
Redeemed | | | (133,480 | ) | | | (1,312,762 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | 226,802 | | | | (715,228 | ) |
| | | | | | | | |
Class Z | | | | | | | | |
Sold | | | 66,906 | | | | 3,149,337 | |
Redeemed | | | (1,335,395 | ) | | | (5,339,394 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (1,268,489 | ) | | | (2,190,057 | ) |
| | | | | | | | |
| | | | |
| June 30, 2013 | | 64 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Total MarketPlus Fund | |
| | | Six Months Ended June 30, 2013 (Unaudited)(a) | | | Year Ended December 31, 2012(b) | |
Operations: | | | | | | | | |
Net investment loss | | $ | (5,807 | ) | | $ | (119,059 | ) |
Net realized loss on investments | | | (99,034 | ) | | | (740,648 | ) |
Net realized gain on futures contracts | | | — | | | | 151,451 | |
Net realized gain on swap contracts | | | 6,674,052 | | | | 16,771,159 | |
Net change in unrealized depreciation on investments and swap contracts | | | (1,796,389 | ) | | | (2,458,486 | ) |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 4,772,822 | | | | 13,604,417 | |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 324,226 | | | | 447,779 | |
Cost of shares redeemed | | | (1,131,659 | ) | | | (1,027,700 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (807,433 | ) | | | (579,921 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 1,262,880 | | | | 2,702,017 | |
Cost of shares redeemed | | | (8,851,535 | ) | | | (87,432,830 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (7,588,655 | ) | | | (84,730,813 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Cost of shares redeemed | | | — | | | | (326,358 | ) |
| | | | | | | | |
Net decrease from share transactions | | | — | | | | (326,358 | ) |
| | | | | | | | |
Class Z | | | | | | | | |
Proceeds from sale of shares | | | 27,275,000 | | | | 4,360,000 | |
Cost of shares redeemed | | | (14,900,000 | ) | | | (13,971,322 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | 12,375,000 | | | | (9,611,322 | ) |
| | | | | | | | |
Net increase/(decrease) in net assets | | $ | 8,751,734 | | | $ | (81,643,997 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 29,434,364 | | | | 111,078,361 | |
| | | | | | | | |
End of period (including accumulated net investment loss of $(5,807) and $0, respectively) | | $ | 38,186,098 | | | $ | 29,434,364 | |
| | | | | | | | |
Other Information: | | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 11,720 | | | | 17,345 | |
Redeemed | | | (39,335 | ) | | | (40,402 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (27,615 | ) | | | (23,057 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 40,355 | | | | 101,343 | |
Redeemed | | | (285,043 | ) | | | (3,213,735 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (244,688 | ) | | | (3,112,392 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Redeemed | | | — | | | | (12,891 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | — | | | | (12,891 | ) |
| | | | | | | | |
Class Z | | | | | | | | |
Sold | | | 893,203 | | | | 157,374 | |
Redeemed | | | (465,231 | ) | | | (509,687 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | 427,972 | | | | (352,313 | ) |
| | | | | | | | |
(a) Prior to May 1, 2013, the Forward Total MarketPlus Fund was known as the Forward Extended MarketPlus Fund.
(b) Effective November 30, 2012, the Class C shares of the Forward Total MarketPlus Fund were terminated and converted to Investor Class shares.
| | | | |
| See Notes to Financial Statements | | 65 | | June 30, 2013 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward U.S. Government Money Fund | |
| | | Six Months Ended June 30, 2013 (Unaudited) | | | Year Ended December 31, 2012 | |
Operations: | | | | | | | | |
Net investment income | | $ | 4,846 | | | $ | 64,087 | |
Net realized gain/(loss) on investments | | | (1,521 | ) | | | 12,427 | |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 3,325 | | | | 76,514 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (81 | ) | | | (626 | ) |
Institutional Class | | | (4,492 | ) | | | (50,360 | ) |
Class A | | | (69 | ) | | | (505 | ) |
Class C | | | (74 | ) | | | (915 | ) |
Class Z | | | (130 | ) | | | (12,582 | ) |
| | | | | | | | |
Total distributions | | | (4,846 | ) | | | (64,988 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 1,019,493 | | | | 1,731,322 | |
Issued to shareholders in reinvestment of distributions | | | 81 | | | | 517 | |
Cost of shares redeemed | | | (1,121,852 | ) | | | (1,134,323 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (102,278 | ) | | | 597,516 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 16,516,060 | | | | 139,544,177 | |
Issued to shareholders in reinvestment of distributions | | | 354 | | | | 6,663 | |
Cost of shares redeemed | | | (21,199,640 | ) | | | (233,225,247 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (4,683,226 | ) | | | (93,674,407 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | 699,376 | | | | 2,667,575 | |
Issued to shareholders in reinvestment of distributions | | | 69 | | | | 417 | |
Cost of shares redeemed | | | (569,616 | ) | | | (2,831,357 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | 129,829 | | | | (163,365 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 1,678,599 | | | | 1,786,730 | |
Issued to shareholders in reinvestment of distributions | | | 74 | | | | 755 | |
Cost of shares redeemed | | | (1,006,215 | ) | | | (5,468,943 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | 672,458 | | | | (3,681,458 | ) |
| | | | | | | | |
Class Z | | | | | | | | |
Proceeds from sale of shares | | | — | | | | 108,641,378 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 337 | |
Cost of shares redeemed | | | (1,550,000 | ) | | | (363,381,241 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (1,550,000 | ) | | | (254,739,526 | ) |
| | | | | | | | |
Net decrease in net assets | | $ | (5,534,738 | ) | | $ | (351,649,714 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 103,546,801 | | | | 455,196,515 | |
| | | | | | | | |
End of period (including accumulated net investment income of $0 and $0, respectively) | | $ | 98,012,063 | | | $ | 103,546,801 | |
| | | | | | | | |
| | | | |
| June 30, 2013 | | 66 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward U.S. Government Money Fund (continued) | |
| | | Six Months Ended June 30, 2013 (Unaudited) | | | Year Ended December 31, 2012 | |
Other Information: | | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 1,019,493 | | | | 1,731,322 | |
Distributions reinvested | | | 81 | | | | 517 | |
Redeemed | | | (1,121,852 | ) | | | (1,134,323 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (102,278 | ) | | | 597,516 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 16,516,060 | | | | 139,544,177 | |
Distributions reinvested | | | 354 | | | | 6,663 | |
Redeemed | | | (21,199,640 | ) | | | (233,225,247 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (4,683,226 | ) | | | (93,674,407 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | 699,376 | | | | 2,667,575 | |
Distributions reinvested | | | 69 | | | | 417 | |
Redeemed | | | (569,616 | ) | | | (2,831,357 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | 129,829 | | | | (163,365 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 1,678,599 | | | | 1,786,730 | |
Distributions reinvested | | | 74 | | | | 755 | |
Redeemed | | | (1,006,215 | ) | | | (5,468,943 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | 672,458 | | | | (3,681,458 | ) |
| | | | | | | | |
Class Z | | | | | | | | |
Sold | | | — | | | | 108,641,378 | |
Distributions reinvested | | | — | | | | 337 | |
Redeemed | | | (1,550,000 | ) | | | (363,381,241 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (1,550,000 | ) | | | (254,739,526 | ) |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 67 | | June 30, 2013 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Balanced Allocation Fund | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31, 2012 | |
Operations: | | | | | | | | |
Net investment income | | $ | 471,421 | | | $ | 1,347,972 | |
Net realized gain on investments transactions and gain distributions of affiliated investment companies | | | 874,163 | | | | 5,611,952 | |
Net realized gain on investments | | | 64,510 | | | | 2,445 | |
Net change in unrealized depreciation on affiliated investment companies and investments | | | (339,870 | ) | | | (1,731,447 | ) |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 1,070,224 | | | | 5,230,922 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (40,747 | ) | | | (134,145 | ) |
Institutional Class | | | (299,704 | ) | | | (853,542 | ) |
Class A | | | (69,583 | ) | | | (158,122 | ) |
Class C | | | (74,376 | ) | | | (200,340 | ) |
| | | | | | | | |
Total distributions | | | (484,410 | ) | | | (1,346,149 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 87,069 | | | | 378,619 | |
Issued to shareholders in reinvestment of distributions | | | 40,747 | | | | 134,145 | |
Cost of shares redeemed | | | (1,206,269 | ) | | | (5,331,072 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (1,078,453 | ) | | | (4,818,308 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 1,586,019 | | | | 17,232,810 | |
Issued to shareholders in reinvestment of distributions | | | 297,556 | | | | 828,481 | |
Cost of shares redeemed | | | (8,813,480 | ) | | | (32,012,109 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (6,929,905 | ) | | | (13,950,818 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | 73,534 | | | | 217,081 | |
Issued to shareholders in reinvestment of distributions | | | 67,703 | | | | 155,576 | |
Cost of shares redeemed | | | (520,559 | ) | | | (1,122,313 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (379,322 | ) | | | (749,656 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 380,235 | | | | 628,074 | |
Issued to shareholders in reinvestment of distributions | | | 61,283 | | | | 173,103 | |
Cost of shares redeemed | | | (3,331,983 | ) | | | (3,678,690 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (2,890,465 | ) | | | (2,877,513 | ) |
| | | | | | | | |
Net decrease in net assets | | $ | (10,692,331 | ) | | $ | (18,511,522 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 44,140,887 | | | | 62,652,409 | |
| | | | | | | | |
End of period (including accumulated net investment income/(loss) of $(2,770) and $10,219, respectively) | | $ | 33,448,556 | | | $ | 44,140,887 | |
| | | | | | | | |
| | | | |
| June 30, 2013 | | 68 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Balanced Allocation Fund (continued) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31, 2012 | |
Other Information: | | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 5,677 | | | | 25,855 | |
Distributions reinvested | | | 2,666 | | | | 9,101 | |
Redeemed | | | (78,473 | ) | | | (366,520 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (70,130 | ) | | | (331,564 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 103,145 | | | | 1,176,251 | |
Distributions reinvested | | | 19,422 | | | | 56,204 | |
Redeemed | | | (567,157 | ) | | | (2,186,202 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (444,590 | ) | | | (953,747 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | 4,838 | | | | 14,775 | |
Distributions reinvested | | | 4,431 | | | | 10,556 | |
Redeemed | | | (34,139 | ) | | | (76,604 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (24,870 | ) | | | (51,273 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 24,831 | | | | 42,643 | |
Distributions reinvested | | | 4,017 | | | | 11,747 | |
Redeemed | | | (216,750 | ) | | | (251,911 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (187,902 | ) | | | (197,521 | ) |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 69 | | June 30, 2013 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Growth & Income Allocation Fund | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31, 2012 | |
Operations: | | | | | | | | |
Net investment income | | $ | 493,452 | | | $ | 1,340,645 | |
Net realized gain on investments transactions and gain distributions of affiliated investment companies | | | 364,786 | | | | 4,234,073 | |
Net realized gain on investments | | | 97,242 | | | | 2,650 | |
Net change in unrealized appreciation on affiliated investment companies and investments | | | 464,463 | | | | 646,936 | |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 1,419,943 | | | | 6,224,304 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (48,135 | ) | | | (126,533 | ) |
Institutional Class | | | (201,822 | ) | | | (577,394 | ) |
Class A | | | (140,333 | ) | | | (331,289 | ) |
Class C | | | (113,925 | ) | | | (304,839 | ) |
| | | | | | | | |
Total distributions | | | (504,215 | ) | | | (1,340,055 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 95,184 | | | | 605,817 | |
Issued to shareholders in reinvestment of distributions | | | 48,135 | | | | 126,534 | |
Cost of shares redeemed | | | (654,894 | ) | | | (4,254,920 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (511,575 | ) | | | (3,522,569 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 605,165 | | | | 17,247,992 | |
Issued to shareholders in reinvestment of distributions | | | 195,001 | | | | 553,000 | |
Cost of shares redeemed | | | (3,663,886 | ) | | | (28,165,402 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (2,863,720 | ) | | | (10,364,410 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | 143,818 | | | | 564,735 | |
Issued to shareholders in reinvestment of distributions | | | 137,435 | | | | 324,376 | |
Cost of shares redeemed | | | (1,312,627 | ) | | | (2,316,350 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (1,031,374 | ) | | | (1,427,239 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 352,057 | | | | 1,378,329 | |
Issued to shareholders in reinvestment of distributions | | | 109,445 | | | | 293,894 | |
Cost of shares redeemed | | | (2,790,312 | ) | | | (11,397,506 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (2,328,810 | ) | | | (9,725,283 | ) |
| | | | | | | | |
Net decrease in net assets | | $ | (5,819,751 | ) | | $ | (20,155,252 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 47,501,320 | | | | 67,656,572 | |
| | | | | | | | |
End of period (including accumulated net investment income/(loss) of $(4,094) and $6,669, respectively) | | $ | 41,681,569 | | | $ | 47,501,320 | |
| | | | | | | | |
| | | | |
| June 30, 2013 | | 70 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Growth & Income Allocation Fund (continued) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31, 2012 | |
Other Information: | | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 6,105 | | | | 41,415 | |
Distributions reinvested | | | 3,146 | | | | 8,524 | |
Redeemed | | | (41,907 | ) | | | (287,797 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (32,656 | ) | | | (237,858 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 38,799 | | | | 1,171,610 | |
Distributions reinvested | | | 12,713 | | | | 37,232 | |
Redeemed | | | (232,516 | ) | | | (1,911,109 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (181,004 | ) | | | (702,267 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | 9,252 | | | | 38,352 | |
Distributions reinvested | | | 9,001 | | | | 21,875 | |
Redeemed | | | (84,305 | ) | | | (156,902 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (66,052 | ) | | | (96,675 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 22,494 | | | | 94,312 | |
Distributions reinvested | | | 7,175 | | | | 19,822 | |
Redeemed | | | (178,622 | ) | | | (769,908 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (148,953 | ) | | | (655,774 | ) |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 71 | | June 30, 2013 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Growth Allocation Fund | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31, 2012 | |
Operations: | | | | | | | | |
Net investment income | | $ | 453,240 | | | $ | 1,471,308 | |
Net realized gain on investments transactions and gain distributions of affiliated investment companies | | | 588,317 | | | | 3,106,968 | |
Net realized gain on investments | | | 105,076 | | | | 2,445 | |
Net change in unrealized appreciation on affiliated investment companies and investments | | | 270,973 | | | | 2,215,657 | |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 1,417,606 | | | | 6,796,378 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (44,783 | ) | | | (159,648 | ) |
Institutional Class | | | (182,750 | ) | | | (599,635 | ) |
Class A | | | (127,130 | ) | | | (335,857 | ) |
Class C | | | (113,024 | ) | | | (374,780 | ) |
| | | | | | | | |
Total distributions | | | (467,687 | ) | | | (1,469,920 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 136,204 | | | | 448,741 | |
Issued to shareholders in reinvestment of distributions | | | 44,593 | | | | 159,193 | |
Cost of shares redeemed | | | (1,106,103 | ) | | | (4,720,405 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (925,306 | ) | | | (4,112,471 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 996,272 | | | | 16,183,111 | |
Issued to shareholders in reinvestment of distributions | | | 175,298 | | | | 558,343 | |
Cost of shares redeemed | | | (2,569,501 | ) | | | (29,625,381 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (1,397,931 | ) | | | (12,883,927 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | 136,366 | | | | 314,137 | |
Issued to shareholders in reinvestment of distributions | | | 124,835 | | | | 329,075 | |
Cost of shares redeemed | | | (898,030 | ) | | | (3,855,204 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (636,829 | ) | | | (3,211,992 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 546,672 | | | | 1,090,493 | |
Issued to shareholders in reinvestment of distributions | | | 98,832 | | | | 341,168 | |
Cost of shares redeemed | | | (3,176,472 | ) | | | (9,373,526 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (2,530,968 | ) | | | (7,941,865 | ) |
| | | | | | | | |
Net decrease in net assets | | $ | (4,541,115 | ) | | $ | (22,823,797 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 42,610,233 | | | | 65,434,030 | |
| | | | | | | | |
End of period (including accumulated net investment income/(loss) of $(3,928) and $10,519, respectively) | | $ | 38,069,118 | | | $ | 42,610,233 | |
| | | | | | | | |
| | | | |
| June 30, 2013 | | 72 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Growth Allocation Fund (continued) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31, 2012 | |
Other Information: | | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 9,228 | | | | 32,649 | |
Distributions reinvested | | | 3,098 | | | | 11,616 | |
Redeemed | | | (74,699 | ) | | | (338,402 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (62,373 | ) | | | (294,137 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 67,161 | | | | 1,179,420 | |
Distributions reinvested | | | 12,171 | | | | 40,702 | |
Redeemed | | | (172,519 | ) | | | (2,149,850 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (93,187 | ) | | | (929,728 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | 9,255 | | | | 22,898 | |
Distributions reinvested | | | 8,688 | | | | 23,914 | |
Redeemed | | | (60,572 | ) | | | (279,721 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (42,629 | ) | | | (232,909 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 37,646 | | | | 80,215 | |
Distributions reinvested | | | 6,944 | | | | 25,055 | |
Redeemed | | | (217,089 | ) | | | (685,137 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (172,499 | ) | | | (579,867 | ) |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 73 | | June 30, 2013 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Income & Growth Allocation Fund | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31, 2012 | |
Operations: | | | | | | | | |
Net investment income | | $ | 346,816 | | | $ | 2,084,157 | |
Net realized gain on investments transactions and gain distributions of affiliated investment companies | | | 1,374,799 | | | | 2,283,298 | |
Net realized gain on investments | | | 63,493 | | | | 0 | |
Net change in unrealized appreciation/(depreciation) on affiliated investment companies and investments | | | (961,102 | ) | | | 2,029,803 | |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 824,006 | | | | 6,397,258 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (15,443 | ) | | | (58,626 | ) |
Institutional Class | | | (298,287 | ) | | | (1,899,904 | ) |
Class A | | | (13,269 | ) | | | (32,307 | ) |
Class C | | | (27,752 | ) | | | (96,996 | ) |
| | | | | | | | |
Total distributions | | | (354,751 | ) | | | (2,087,833 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 370,712 | | | | 345,043 | |
Issued to shareholders in reinvestment of distributions | | | 15,137 | | | | 58,626 | |
Cost of shares redeemed | | | (595,489 | ) | | | (2,282,967 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (209,640 | ) | | | (1,879,298 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 1,719,784 | | | | 21,437,675 | |
Issued to shareholders in reinvestment of distributions | | | 294,605 | | | | 1,881,783 | |
Cost of shares redeemed | | | (45,671,370 | ) | | | (21,578,983 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (43,656,981 | ) | | | 1,740,475 | |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | 17,430 | | | | 50,260 | |
Issued to shareholders in reinvestment of distributions | | | 13,044 | | | | 31,782 | |
Cost of shares redeemed | | | (47,578 | ) | | | (281,160 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (17,104 | ) | | | (199,118 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 17,764 | | | | 535,082 | |
Issued to shareholders in reinvestment of distributions | | | 26,817 | | | | 94,713 | |
Cost of shares redeemed | | | (1,879,775 | ) | | | (2,494,674 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (1,835,194 | ) | | | (1,864,879 | ) |
| | | | | | | | |
Net increase/(decrease) in net assets | | $ | (45,249,664 | ) | | $ | 2,106,605 | |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 66,039,016 | | | | 63,932,411 | |
| | | | | | | | |
End of period (including accumulated net investment income/(loss) of $(1,618) and $6,317, respectively) | | $ | 20,789,352 | | | $ | 66,039,016 | |
| | | | | | | | |
| | | | |
| June 30, 2013 | | 74 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Income & Growth Allocation Fund (continued) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31, 2012 | |
Other Information: | | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 24,193 | | | | 23,156 | |
Distributions reinvested | | | 984 | | | | 3,913 | |
Redeemed | | | (38,232 | ) | | | (151,327 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (13,055 | ) | | | (124,258 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 111,291 | | | | 1,434,046 | |
Distributions reinvested | | | 19,143 | | | | 125,157 | |
Redeemed | | | (2,949,555 | ) | | | (1,445,481 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (2,819,121 | ) | | | 113,722 | |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | 1,129 | | | | 3,319 | |
Distributions reinvested | | | 850 | | | | 2,117 | |
Redeemed | | | (3,114 | ) | | | (18,820 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (1,135 | ) | | | (13,384 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 1,152 | | | | 35,728 | |
Distributions reinvested | | | 1,751 | | | | 6,323 | |
Redeemed | | | (121,804 | ) | | | (168,104 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (118,901 | ) | | | (126,053 | ) |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 75 | | June 30, 2013 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Income Builder Fund | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31, 2012 | |
Operations: | | | | | | | | |
Net investment income | | $ | 406,653 | | | $ | 887,693 | |
Net realized gain on investments transactions of affiliated investment companies | | | 274,866 | | | | 687,346 | |
Net change in unrealized appreciation/(depreciation) on affiliated investment companies | | | (634,610 | ) | | | 379,310 | |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 46,909 | | | | 1,954,349 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (31,666 | ) | | | (100,738 | ) |
Institutional Class | | | (217,098 | ) | | | (548,582 | ) |
Class A | | | (61,270 | ) | | | (22,799 | ) |
Class C | | | (99,003 | ) | | | (240,453 | ) |
| | | | | | | | |
Total distributions | | | (409,037 | ) | | | (912,572 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 975,478 | | | | 254,076 | |
Issued to shareholders in reinvestment of distributions | | | 31,666 | | | | 100,738 | |
Cost of shares redeemed | | | (784,545 | ) | | | (1,385,752 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | 222,599 | | | | (1,030,938 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 4,336,388 | | | | 5,643,036 | |
Issued to shareholders in reinvestment of distributions | | | 216,078 | | | | 483,708 | |
Cost of shares redeemed | | | (3,318,396 | ) | | | (8,770,921 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | 1,234,070 | | | | (2,644,177 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | 2,981,898 | | | | 558,908 | |
Issued to shareholders in reinvestment of distributions | | | 47,878 | | | | 21,872 | |
Cost of shares redeemed | | | (289,378 | ) | | | (184,431 | ) |
| | | | | | | | |
Net increase from share transactions | | | 2,740,398 | | | | 396,349 | |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 2,502,663 | | | | 1,355,026 | |
Issued to shareholders in reinvestment of distributions | | | 83,829 | | | | 208,697 | |
Cost of shares redeemed | | | (2,616,290 | ) | | | (1,443,063 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (29,798 | ) | | | 120,660 | |
| | | | | | | | |
Net increase/(decrease) in net assets | | $ | 3,805,141 | | | $ | (2,116,329 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 17,345,361 | | | | 19,461,690 | |
| | | | | | | | |
End of period (including accumulated net investment loss of $(2,384) and $0, respectively) | | $ | 21,150,502 | | | $ | 17,345,361 | |
| | | | | | | | |
| | | | |
| June 30, 2013 | | 76 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Income Builder Fund (continued) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31, 2012 | |
Other Information: | | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 61,753 | | | | 17,124 | |
Distributions reinvested | | | 2,053 | | | | 6,781 | |
Redeemed | | | (49,361 | ) | | | (91,669 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | 14,445 | | | | (67,764 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 273,607 | | | | 380,849 | |
Distributions reinvested | | | 14,009 | | | | 32,539 | |
Redeemed | | | (209,291 | ) | | | (590,090 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | 78,325 | | | | (176,702 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | 188,079 | | | | 37,130 | |
Distributions reinvested | | | 3,114 | | | | 1,462 | |
Redeemed | | | (18,590 | ) | | | (12,313 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 172,603 | | | | 26,279 | |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 159,540 | | | | 91,224 | |
Distributions reinvested | | | 5,469 | | | | 14,059 | |
Redeemed | | | (165,148 | ) | | | (97,793 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (139 | ) | | | 7,490 | |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 77 | | June 30, 2013 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Multi-Strategy Fund | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31, 2012 | |
Operations: | | | | | | | | |
Net investment income | | $ | 51,108 | | | $ | 655,585 | |
Net realized gain on investments transactions and gain distributions of affiliated investment companies | | | 656,970 | | | | 2,175,718 | |
Net change in unrealized appreciation/(depreciation) on affiliated investment companies | | | (232,430 | ) | | | 370,679 | |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 475,648 | | | | 3,201,982 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (12,165 | ) | | | (117,220 | ) |
Institutional Class | | | (34,503 | ) | | | (275,259 | ) |
Class A | | | (20,969 | ) | | | (137,734 | ) |
Class C | | | (5,724 | ) | | | (109,445 | ) |
| | | | | | | | |
Total distributions | | | (73,361 | ) | | | (639,658 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 223,731 | | | | 344,964 | |
Issued to shareholders in reinvestment of distributions | | | 11,928 | | | | 115,645 | |
Cost of shares redeemed | | | (990,369 | ) | | | (2,755,730 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (754,710 | ) | | | (2,295,121 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 501,163 | | | | 6,021,583 | |
Issued to shareholders in reinvestment of distributions | | | 33,658 | | | | 269,892 | |
Cost of shares redeemed | | | (3,214,995 | ) | | | (12,331,492 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (2,680,174 | ) | | | (6,040,017 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | 63,891 | | | | 177,271 | |
Issued to shareholders in reinvestment of distributions | | | 20,968 | | | | 136,113 | |
Cost of shares redeemed | | | (434,721 | ) | | | (1,460,672 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (349,862 | ) | | | (1,147,288 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 149,777 | | | | 394,386 | |
Issued to shareholders in reinvestment of distributions | | | 5,593 | | | | 108,061 | |
Cost of shares redeemed | | | (1,128,266 | ) | | | (1,797,171 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (972,896 | ) | | | (1,294,724 | ) |
| | | | | | | | |
Net decrease in net assets | | $ | (4,355,355 | ) | | $ | (8,214,826 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 17,274,936 | | | | 25,489,762 | |
| | | | | | | | |
End of period (including accumulated net investment income/(loss) of $(1,945) and $20,308, respectively) | | $ | 12,919,581 | | | $ | 17,274,936 | |
| | | | | | | | |
| | | | |
| June 30, 2013 | | 78 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Multi-Strategy Fund (continued) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31, 2012 | |
Other Information: | | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 15,211 | | | | 25,636 | |
Distributions reinvested | | | 837 | | | | 8,535 | |
Redeemed | | | (67,775 | ) | | | (201,131 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (51,727 | ) | | | (166,960 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 33,201 | | | | 432,799 | |
Distributions reinvested | | | 2,276 | | | | 19,379 | |
Redeemed | | | (212,082 | ) | | | (887,780 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (176,605 | ) | | | (435,602 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | 4,306 | | | | 12,925 | |
Distributions reinvested | | | 1,445 | | | | 9,827 | |
Redeemed | | | (29,321 | ) | | | (105,068 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (23,570 | ) | | | (82,316 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 10,573 | | | | 30,607 | |
Distributions reinvested | | | 406 | | | | 8,168 | |
Redeemed | | | (79,729 | ) | | | (136,275 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (68,750 | ) | | | (97,500 | ) |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 79 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Frontier Strategy Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(a) | | | Year Ended
December 31,
2010(b) | | | Year Ended
December 31,
2009(c) | |
Net Asset Value, Beginning of Period | | $ | 9.80 | | | $ | 9.87 | | | $ | 12.43 | | | $ | 11.32 | | | $ | 12.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(d) | | | (0.04 | ) | | | (0.06 | ) | | | 0.03 | | | | 0.04 | | | | (0.08 | ) |
Net realized and unrealized gain/(loss) on investments | | | 0.95 | | | | 0.65 | | | | (2.57 | ) | | | 2.29 | | | | 0.45 | |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.91 | | | | 0.59 | | | | (2.54 | ) | | | 2.33 | | | | 0.37 | |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
From investment income | | | — | | | | (0.66 | ) | | | — | | | | (1.09 | ) | | | (0.86 | ) |
From capital gains | | | — | | | | — | | | | (0.02 | ) | | | (0.13 | ) | | | (0.19 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (0.66 | ) | | | (0.02 | ) | | | (1.22 | ) | | | (1.05 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.91 | | | | (0.07 | ) | | | (2.56 | ) | | | 1.11 | | | | (0.68 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 10.71 | | | $ | 9.80 | | | $ | 9.87 | | | $ | 12.43 | | | $ | 11.32 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 9.29 | %(e) | | | 5.98 | % | | | (20.40 | )% | | | 20.76 | % | | | 3.03 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 3,986 | | | $ | 2,829 | | | $ | 3,021 | | | $ | 4,267 | | | $ | 1,124 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) including reimbursement/waiver | | | (0.75 | )%(f) | | | (0.55 | )% | | | 0.23 | % | | | 0.30 | % | | | (0.67 | )% |
Operating expenses including reimbursement/waiver | | | 1.41 | %(f)(g) | | | 1.56 | %(h) | | | n/a | | | | n/a | | | | n/a | |
Operating expenses excluding reimbursement/waiver | | | 1.56 | %(f) | | | 1.57 | % | | | 1.54 | % | | | 1.44 | % | | | 1.38 | % |
Portfolio Turnover Rate | | | 30 | %(e) | | | 69 | % | | | 116 | % | | | 50 | % | | | 79 | % |
(a) Prior to May 1, 2011, the Forward Frontier Strategy Fund was known as the Forward Frontier MarketStrat Fund.
(b) Prior to September 20, 2010, the Forward Frontier MarketStrat Fund was known as the Forward Frontier Markets Fund. Prior to May 1, 2010, the Forward Frontier Markets Fund was known as the Accessor Frontier Markets Fund.
(c) Commenced operations on December 31, 2008.
(d) Per share amounts are based upon average shares outstanding.
(e) Not Annualized.
(f) Annualized.
(g) Effective May 1, 2013, the net expense limitation changed from 1.49% to 1.29%.
(h) Effective June 8, 2012, the Advisor agreed to limit expense at 1.49%.
| | | | |
| June 30, 2013 | | 80 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Frontier Strategy Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended
June 30, 2013 (Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(a) | | | Year Ended
December 31,
2010(b) | | | Year Ended
December 31,
2009(c) | |
Net Asset Value, Beginning of Period | | $ | 9.82 | | | $ | 9.90 | | | $ | 12.43 | | | $ | 11.31 | | | $ | 12.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(d) | | | (0.02 | ) | | | (0.03 | ) | | | 0.06 | | | | 0.04 | | | | (0.08 | ) |
Net realized and unrealized gain/(loss) on investments | | | 0.95 | | | | 0.64 | | | | (2.57 | ) | | | 2.32 | | | | 0.43 | |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.93 | | | | 0.61 | | | | (2.51 | ) | | | 2.36 | | | | 0.35 | |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
From investment income | | | — | | | | (0.69 | ) | | | — | | | | (1.11 | ) | | | (0.85 | ) |
From capital gains | | | — | | | | — | | | | (0.02 | ) | | | (0.13 | ) | | | (0.19 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (0.69 | ) | | | (0.02 | ) | | | (1.24 | ) | | | (1.04 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.93 | | | | (0.08 | ) | | | (2.53 | ) | | | 1.12 | | | | (0.69 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 10.75 | | | $ | 9.82 | | | $ | 9.90 | | | $ | 12.43 | | | $ | 11.31 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 9.47 | %(e) | | | 6.15 | % | | | (20.16 | )% | | | 21.11 | % | | | 2.89 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 71,421 | | | $ | 56,305 | | | $ | 56,664 | | | $ | 65,985 | | | $ | 13,105 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) including reimbursement/waiver | | | (0.41 | )%(f) | | | (0.26 | )% | | | 0.51 | % | | | 0.34 | % | | | (0.69 | )% |
Operating expenses including reimbursement/waiver | | | 1.12 | %(f)(g) | | | 1.25 | %(h) | | | n/a | | | | n/a | | | | n/a | |
Operating expenses excluding reimbursement/waiver | | | 1.25 | %(f) | | | 1.27 | % | | | 1.24 | % | | | 1.21 | % | | | 1.39 | % |
Portfolio Turnover Rate | | | 30 | %(e) | | | 69 | % | | | 116 | % | | | 50 | % | | | 79 | % |
(a) Prior to May 1, 2011, the Forward Frontier Strategy Fund was known as the Forward Frontier MarketStrat Fund.
(b) Prior to September 20, 2010, the Forward Frontier MarketStrat Fund was known as the Forward Frontier Markets Fund. Prior to May 1, 2010, the Forward Frontier Markets Fund was known as the Accessor Frontier Markets Fund.
(c) Commenced operations on December 31, 2008.
(d) Per share amounts are based upon average shares outstanding.
(e) Not Annualized.
(f) Annualized.
(g) Effective May 1, 2013, the net expense limitation changed from 1.19% to 0.99%.
(h) Effective June 8, 2012, the Advisor agreed to limit expense at 1.19%.
| | | | |
| See Notes to Financial Statements | | 81 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Frontier Strategy Fund
| | | | | | | | | | | | |
| | | Advisor Class | |
| | | Six Months Ended
June 30, 2013
(Unaudited)(a) | | | Year Ended
December 31,
2012 | | | Period Ended
December 31,
2011(b) | |
Net Asset Value, Beginning of Period | | $ | 9.82 | | | $ | 9.90 | | | $ | 12.39 | |
Income/(Loss) from Operations: | | | | | | | | | | | | |
Net investment income/(loss)(c) | | | (0.02 | ) | | | (0.02 | ) | | | 0.02 | |
Net realized and unrealized gain/(loss) on investments | | | 0.95 | | | | 0.63 | | | | (2.49 | ) |
| | | | | | | | | | | | |
Total from Investment Operations | | | 0.93 | | | | 0.61 | | | | (2.47 | ) |
| | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | |
From investment income | | | — | | | | (0.69 | ) | | | — | |
From capital gains | | | — | | | | — | | | | (0.02 | ) |
| | | | | | | | | | | | |
Total Distributions | | | — | | | | (0.69 | ) | | | (0.02 | ) |
| | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.93 | | | | (0.08 | ) | | | (2.49 | ) |
| | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 10.75 | | | $ | 9.82 | | | $ | 9.90 | |
| | | | | | | | | | | | |
Total Return | | | 9.47 | %(d) | | | 6.16 | % | | | (19.90 | )%(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 10 | | | $ | 9 | | | $ | 9 | |
Ratios to Average Net Assets: | | | | | | | | | | | | |
Net investment income/(loss) including reimbursement/waiver | | | (0.43 | )%(e) | | | (0.25 | )% | | | 0.30 | %(e) |
Operating expenses including reimbursement/waiver | | | 1.12 | %(e)(f) | | | 1.25 | %(g) | | | n/a | |
Operating expenses excluding reimbursement/waiver | | | 1.26 | %(e) | | | 1.26 | % | | | 1.25 | %(e) |
Portfolio Turnover Rate | | | 30 | %(d) | | | 69 | % | | | 116 | %(h) |
(a) Prior to May 1, 2013, the Forward Frontier Strategy Fund Advisor Class was known as the Forward Frontier Strategy Fund Class M.
(b) The Fund began offering Advisor Class Shares on May 2, 2011.
(c) Per share amounts are based upon average shares outstanding.
(d) Not Annualized.
(e) Annualized.
(f) Effective May 1, 2013, the net expense limitation changed from 1.19% to 0.99%.
(g) Effective June 8, 2012, the Advisor agreed to limit expense at 1.19%.
(h) Portfolio turnover rate is calculated at the Fund level and represents the year ended December 31, 2011.
| | | | |
| June 30, 2013 | | 82 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Frontier Strategy Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Class Z | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(a) | | | Year Ended
December 31,
2010(b) | | | Period Ended
December 31,
2009(c) | |
Net Asset Value, Beginning of Period | | $ | 9.84 | | | $ | 9.92 | | | $ | 12.43 | | | $ | 11.31 | | | $ | 10.85 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(d) | | | (0.02 | ) | | | (0.01 | ) | | | 0.06 | | | | 0.08 | | | | (0.03 | ) |
Net realized and unrealized gain/(loss) on investments | | | 0.95 | | | | 0.63 | | | | (2.55 | ) | | | 2.29 | | | | 1.54 | |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.93 | | | | 0.62 | | | | (2.49 | ) | | | 2.37 | | | | 1.51 | |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
From investment income | | | — | | | | (0.70 | ) | | | — | | | | (1.12 | ) | | | (0.86 | ) |
From capital gains | | | — | | | | — | | | | (0.02 | ) | | | (0.13 | ) | | | (0.19 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (0.70 | ) | | | (0.02 | ) | | | (1.25 | ) | | | (1.05 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.93 | | | | (0.08 | ) | | | (2.51 | ) | | | 1.12 | | | | 0.46 | |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 10.77 | | | $ | 9.84 | | | $ | 9.92 | | | $ | 12.43 | | | $ | 11.31 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 9.45 | %(e) | | | 6.25 | % | | | (20.00 | )% | | | 21.17 | % | | | 13.86 | %(e) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 6,060 | | | $ | 5,586 | | | $ | 13,569 | | | $ | 70,578 | | | $ | 23,531 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) including reimbursement/waiver | | | (0.30 | )%(f) | | | (0.10 | )% | | | 0.51 | % | | | 0.64 | % | | | (0.38 | )%(f) |
Operating expenses including reimbursement/waiver | | | 1.02 | %(f)(g) | | | 1.18 | %(h) | | | n/a | | | | n/a | | | | n/a | |
Operating expenses excluding reimbursement/waiver | | | 1.14 | %(f) | | | 1.19 | % | | | 1.13 | % | | | 1.13 | % | | | 1.15 | %(f) |
Portfolio Turnover Rate | | | 30 | %(e) | | | 69 | % | | | 116 | % | | | 50 | % | | | 79 | %(i) |
(a) Prior to May 1, 2011, the Forward Frontier Strategy Fund was known as the Forward Frontier MarketStrat Fund.
(b) Prior to September 20, 2010, the Forward Frontier MarketStrat Fund was known as the Forward Frontier Markets Fund. Prior to May 1, 2010, the Forward Frontier Markets Fund Class Z was known as the Accessor Frontier Markets Fund Z Class.
(c) Commenced operations on May 5, 2009.
(d) Per share amounts are based upon average shares outstanding.
(e) Not Annualized.
(f) Annualized.
(g) Effective May 1, 2013, the net expense limitation changed from 1.09% to 0.89%.
(h) Effective June 8, 2012, the Advisor agreed to limit expense at 1.09%.
(i) Portfolio turnover rate is calculated at the Fund level and represents the year ended December 31, 2009.
| | | | |
| See Notes to Financial Statements | | 83 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward High Yield Bond Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Investor Class(a) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(b) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 10.41 | | | $ | 9.73 | | | $ | 10.04 | | | $ | 9.53 | | | $ | 7.45 | | | $ | 10.45 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.28 | | | | 0.63 | | | | 0.69 | | | | 0.76 | | | | 0.80 | | | | 0.71 | |
Net realized and unrealized gain/(loss) on investments | | | (0.13 | ) | | | 0.72 | | | | (0.33 | ) | | | 0.51 | | | | 2.06 | | | | (2.98 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.15 | | | | 1.35 | | | | 0.36 | | | | 1.27 | | | | 2.86 | | | | (2.27 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.27 | ) | | | (0.67 | ) | | | (0.67 | ) | | | (0.76 | ) | | | (0.78 | ) | | | (0.73 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.27 | ) | | | (0.67 | ) | | | (0.67 | ) | | | (0.76 | ) | | | (0.78 | ) | | | (0.73 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.12 | ) | | | 0.68 | | | | (0.31 | ) | | | 0.51 | | | | 2.08 | | | | (3.00 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 10.29 | | | $ | 10.41 | | | $ | 9.73 | | | $ | 10.04 | | | $ | 9.53 | | | $ | 7.45 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 1.40 | %(d) | | | 14.24 | % | | | 3.61 | % | | | 13.85 | % | | | 39.61 | % | | | (22.54 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 56,080 | | | $ | 25,482 | | | $ | 1,925 | | | $ | 8,105 | | | $ | 4,390 | | | $ | 486 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 5.30 | %(e) | | | 6.15 | % | | | 6.90 | % | | | 7.77 | % | | | 8.97 | % | | | 7.32 | % |
Operating expenses | | | 1.22 | %(e) | | | 1.22 | % | | | 1.28 | % | | | 1.37 | % | | | 1.41 | % | | | 1.45 | %(f) |
Portfolio Turnover Rate | | | 108 | %(d) | | | 210 | % | | | 320 | % | | | 296 | % | | | 202 | % | | | 110 | % |
(a) The information provided below for the fiscal years ended December 31, 2009 and after have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The information for prior periods has been audited by predecessor independent registered public accounting firms.
(b) Prior to May 1, 2010, the Forward High Yield Bond Fund was known as the Accessor High Yield Bond Fund.
(c) Per share amounts are based upon average shares outstanding.
(d) Not Annualized.
(e) Annualized.
(f) The effect of any custody credits on the ratio is less than 0.01%.
| | | | |
| June 30, 2013 | | 84 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward High Yield Bond Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class(a) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(b) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 10.38 | | | $ | 9.70 | | | $ | 10.03 | | | $ | 9.53 | | | $ | 7.45 | | | $ | 10.44 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.30 | | | | 0.70 | | | | 0.73 | | | | 0.81 | | | | 0.83 | | | | 0.77 | |
Net realized and unrealized gain/(loss) on investments | | | (0.13 | ) | | | 0.68 | | | | (0.33 | ) | | | 0.50 | | | | 2.07 | | | | (2.98 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.17 | | | | 1.38 | | | | 0.40 | | | | 1.31 | | | | 2.90 | | | | (2.21 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.29 | ) | | | (0.70 | ) | | | (0.73 | ) | | | (0.81 | ) | | | (0.82 | ) | | | (0.78 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.29 | ) | | | (0.70 | ) | | | (0.73 | ) | | | (0.81 | ) | | | (0.82 | ) | | | (0.78 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Redemption Fees Added to Paid In Capital | | | — | | | | — | | | | — | | | | — | | | | — | | | | 0.00 | (d) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.12 | ) | | | 0.68 | | | | (0.33 | ) | | | 0.50 | | | | 2.08 | | | | (2.99 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 10.26 | | | $ | 10.38 | | | $ | 9.70 | | | $ | 10.03 | | | $ | 9.53 | | | $ | 7.45 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 1.58 | %(e) | | | 14.71 | % | | | 4.06 | % | | | 14.31 | % | | | 40.36 | % | | | (22.16 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 65,934 | | | $ | 95,212 | | | $ | 97,719 | | | $ | 71,182 | | | $ | 76,640 | | | $ | 50,902 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 5.72 | %(f) | | | 6.88 | % | | | 7.30 | % | | | 8.29 | % | | | 9.64 | % | | | 8.16 | % |
Operating expenses | | | 0.81 | %(f) | | | 0.83 | % | | | 0.85 | % | | | 0.97 | % | | | 0.99 | % | | | 0.96 | %(g) |
Portfolio Turnover Rate | | | 108 | %(e) | | | 210 | % | | | 320 | % | | | 296 | % | | | 202 | % | | | 110 | % |
(a) The information provided below for the fiscal years ended December 31, 2009 and after have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The information for prior periods has been audited by predecessor independent registered public accounting firms.
(b) Prior to May 1, 2010, the Forward High Yield Bond Fund was known as the Accessor High Yield Bond Fund.
(c) Per share amounts are based upon average shares outstanding.
(d) Amount represents less than $0.01 per share.
(e) Not Annualized.
(f) Annualized.
(g) The effect of any custody credits on the ratio is less than 0.01%.
| | | | |
| See Notes to Financial Statements | | 85 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward High Yield Bond Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class C(a) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(b) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 10.38 | | | $ | 9.70 | | | $ | 10.03 | | | $ | 9.52 | | | $ | 7.44 | | | $ | 10.43 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.25 | | | | 0.60 | | | | 0.64 | | | | 0.72 | | | | 0.74 | | | | 0.67 | |
Net realized and unrealized gain/(loss) on investments | | | (0.13 | ) | | | 0.69 | | | | (0.33 | ) | | | 0.49 | | | | 2.08 | | | | (2.98 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.12 | | | | 1.29 | | | | 0.31 | | | | 1.21 | | | | 2.82 | | | | (2.31 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.24 | ) | | | (0.61 | ) | | | (0.64 | ) | | | (0.70 | ) | | | (0.74 | ) | | | (0.68 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.24 | ) | | | (0.61 | ) | | | (0.64 | ) | | | (0.70 | ) | | | (0.74 | ) | | | (0.68 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.12 | ) | | | 0.68 | | | | (0.33 | ) | | | 0.51 | | | | 2.08 | | | | (2.99 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 10.26 | | | $ | 10.38 | | | $ | 9.70 | | | $ | 10.03 | | | $ | 9.52 | | | $ | 7.44 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(d) | | | 1.14 | %(e) | | | 13.69 | % | | | 3.13 | % | | | 13.18 | % | | | 39.12 | % | | | (22.97 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 1,209 | | | $ | 1,241 | | | $ | 1,029 | �� | | $ | 950 | | | $ | 760 | | | $ | 623 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 4.82 | %(f) | | | 5.96 | % | | | 6.40 | % | | | 7.37 | % | | | 8.66 | % | | | 7.03 | % |
Operating expenses | | | 1.71 | %(f) | | | 1.73 | % | | | 1.76 | % | | | 1.87 | % | | | 1.92 | % | | | 1.96 | %(g) |
Portfolio Turnover Rate | | | 108 | %(e) | | | 210 | % | | | 320 | % | | | 296 | % | | | 202 | % | | | 110 | % |
(a) The information provided below for the fiscal years ended December 31, 2009 and after have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The information for prior periods has been audited by predecessor independent registered public accounting firms.
(b) Prior to May 1, 2010, the Forward High Yield Bond Fund Class C was known as the Accessor High Yield Bond Fund C Class.
(c) Per share amounts are based upon average shares outstanding.
(d) Total return does not reflect the effect of sales charges.
(e) Not Annualized.
(f) Annualized.
(g) The effect of any custody credits on the ratio is less than 0.01%.
| | | | |
| June 30, 2013 | | 86 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward High Yield Bond Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Class Z | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(a) | | | Period Ended
December 31,
2009(b) | |
Net Asset Value, Beginning of Period | | $ | 10.37 | | | $ | 9.69 | | | $ | 10.02 | | | $ | 9.53 | | | $ | 8.35 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.31 | | | | 0.71 | | | | 0.74 | | | | 0.82 | | | | 0.55 | |
Net realized and unrealized gain/(loss) on investments | | | (0.14 | ) | | | 0.69 | | | | (0.33 | ) | | | 0.49 | | | | 1.20 | |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.17 | | | | 1.40 | | | | 0.41 | | | | 1.31 | | | | 1.75 | |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.29 | ) | | | (0.72 | ) | | | (0.74 | ) | | | (0.82 | ) | | | (0.57 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.29 | ) | | | (0.72 | ) | | | (0.74 | ) | | | (0.82 | ) | | | (0.57 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.12 | ) | | | 0.68 | | | | (0.33 | ) | | | 0.49 | | | | 1.18 | |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 10.25 | | | $ | 10.37 | | | $ | 9.69 | | | $ | 10.02 | | | $ | 9.53 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 1.63 | %(d) | | | 14.84 | % | | | 4.16 | % | | | 14.34 | % | | | 21.52 | %(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 6,194 | | | $ | 15,184 | | | $ | 46,138 | | | $ | 27,913 | | | $ | 25,288 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 5.81 | %(e) | | | 7.07 | % | | | 7.37 | % | | | 8.38 | % | | | 9.37 | %(e) |
Operating expenses | | | 0.70 | %(e) | | | 0.73 | % | | | 0.75 | % | | | 0.87 | % | | | 0.90 | %(e) |
Portfolio Turnover Rate | | | 108 | %(d) | | | 210 | % | | | 320 | % | | | 296 | % | | | 202 | %(f) |
(a) Prior to May 1, 2010, the Forward High Yield Bond Fund Class Z was known as the Accessor High Yield Bond Fund Z Class.
(b) Commenced operations on May 5, 2009.
(c) Per share amounts are based upon average shares outstanding.
(d) Not Annualized.
(e) Annualized.
(f) Portfolio turnover rate is calculated at the Fund level and represents the year ended December 31, 2009.
| | | | |
| See Notes to Financial Statements | | 87 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Investment Grade Fixed-Income Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Investor Class(a) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(b) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 11.70 | | | $ | 11.30 | | | $ | 10.80 | | | $ | 10.40 | | | $ | 9.99 | | | $ | 10.85 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(c) | | | (0.01 | )(d) | | | 0.17 | | | | 0.38 | | | | 0.32 | | | | 0.55 | | | | 0.51 | |
Net realized and unrealized gain/(loss) on investments | | | (0.33 | ) | | | 0.53 | | | | 0.52 | | | | 0.46 | | | | 0.42 | | | | (0.83 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.34 | ) | | | 0.70 | | | | 0.90 | | | | 0.78 | | | | 0.97 | | | | (0.32 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.18 | ) | | | (0.30 | ) | | | (0.40 | ) | | | (0.38 | ) | | | (0.52 | ) | | | (0.54 | ) |
From capital gains | | | — | | | | — | | | | — | | | | — | | | | (0.04 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.18 | ) | | | (0.30 | ) | | | (0.40 | ) | | | (0.38 | ) | | | (0.56 | ) | | | (0.54 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.52 | ) | | | 0.40 | | | | 0.50 | | | | 0.40 | | | | 0.41 | | | | (0.86 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 11.18 | | | $ | 11.70 | | | $ | 11.30 | | | $ | 10.80 | | | $ | 10.40 | | | $ | 9.99 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | (3.06 | )%(e) | | | 6.21 | % | | | 8.55 | % | | | 7.59 | % | | | 10.12 | % | | | (2.85 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 1,628 | | | $ | 2,781 | | | $ | 3,082 | | | $ | 3,150 | | | $ | 1,027 | | | $ | 1,260 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | | (0.20 | )%(f) | | | 1.48 | % | | | 3.41 | % | | | 2.95 | % | | | 5.47 | % | | | 4.91 | % |
Operating expenses | | | 1.38 | %(f) | | | 1.23 | % | | | 1.28 | % | | | 1.29 | % | | | 1.45 | % | | | 1.33 | %(g) |
Portfolio Turnover Rate | | | 92 | %(e) | | | 149 | % | | | 157 | % | | | 133 | % | | | 463 | % | | | 260 | % |
(a) The information provided below for the fiscal years ended December 31, 2009 and after have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The information for prior periods has been audited by predecessor independent registered public accounting firms.
(b) Prior to May 1, 2010, the Forward Investment Grade Fixed-Income Fund was known as the Accessor Investment Grade Fixed-Income Fund.
(c) Per share amounts are based upon average shares outstanding.
(d) The amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and redemptions of Fund shares in relation to income earned and/or fluctuating market value of the investments of the Fund.
(e) Not Annualized.
(f) Annualized.
(g) The effect of any custody credits on the ratio is less than 0.01% .
| | | | |
| June 30, 2013 | | 88 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Investment Grade Fixed-Income Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class(a) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(b) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 11.70 | | | $ | 11.30 | | | $ | 10.80 | | | $ | 10.41 | | | $ | 9.99 | | | $ | 10.86 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.01 | | | | 0.22 | | | | 0.40 | | | | 0.34 | | | | 0.59 | | | | 0.56 | |
Net realized and unrealized gain/(loss) on investments | | | (0.33 | ) | | | 0.52 | | | | 0.55 | | | | 0.49 | | | | 0.44 | | | | (0.84 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.32 | ) | | | 0.74 | | | | 0.95 | | | | 0.83 | | | | 1.03 | | | | (0.28 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.20 | ) | | | (0.34 | ) | | | (0.45 | ) | | | (0.44 | ) | | | (0.57 | ) | | | (0.59 | ) |
From capital gains | | | — | | | | — | | | | — | | | | — | | | | (0.04 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.20 | ) | | | (0.34 | ) | | | (0.45 | ) | | | (0.44 | ) | | | (0.61 | ) | | | (0.59 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.52 | ) | | | 0.40 | | | | 0.50 | | | | 0.39 | | | | 0.42 | | | | (0.87 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 11.18 | | | $ | 11.70 | | | $ | 11.30 | | | $ | 10.80 | | | $ | 10.41 | | | $ | 9.99 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | (2.77 | )%(d) | | | 6.64 | % | | | 8.98 | % | | | 8.03 | % | | | 10.69 | % | | | (2.43 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 11,673 | | | $ | 9,563 | | | $ | 17,316 | | | $ | 12,220 | | | $ | 18,176 | | | $ | 63,900 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.22 | %(e) | | | 1.86 | % | | | 3.66 | % | | | 3.11 | % | | | 5.90 | % | | | 5.49 | % |
Operating expenses | | | 0.99 | %(e) | | | 0.83 | % | | | 0.88 | % | | | 0.91 | % | | | 1.04 | % | | | 0.88 | %(f) |
Portfolio Turnover Rate | | | 92 | %(d) | | | 149 | % | | | 157 | % | | | 133 | % | | | 463 | % | | | 260 | % |
(a) The information provided below for the fiscal years ended December 31, 2009 and after have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The information for prior periods has been audited by predecessor independent registered public accounting firms.
(b) Prior to May 1, 2010, the Forward Investment Grade Fixed-Income Fund was known as the Accessor Investment Grade Fixed-Income Fund.
(c) Per share amounts are based upon average shares outstanding.
(d) Not Annualized.
(e) Annualized.
(f) The effect of any custody credits on the ratio is less than 0.01%.
| | | | |
| See Notes to Financial Statements | | 89 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Investment Grade Fixed-Income Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Class Z | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(a) | | | Period Ended
December 31,
2009(b) | |
Net Asset Value, Beginning of Period | | $ | 11.68 | | | $ | 11.29 | | | $ | 10.79 | | | $ | 10.40 | | | $ | 9.65 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.02 | | | | 0.22 | | | | 0.42 | | | | 0.35 | | | | 0.31 | |
Net realized and unrealized gain/(loss) on investments | | | (0.33 | ) | | | 0.52 | | | | 0.54 | | | | 0.49 | | | | 0.79 | |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.31 | ) | | | 0.74 | | | | 0.96 | | | | 0.84 | | | | 1.10 | |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.21 | ) | | | (0.35 | ) | | | (0.46 | ) | | | (0.45 | ) | | | (0.35 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.21 | ) | | | (0.35 | ) | | | (0.46 | ) | | | (0.45 | ) | | | (0.35 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.52 | ) | | | 0.39 | | | | 0.50 | | | | 0.39 | | | | 0.75 | |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 11.16 | | | $ | 11.68 | | | $ | 11.29 | | | $ | 10.79 | | | $ | 10.40 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | (2.73 | )%(d) | | | 6.67 | % | | | 9.10 | % | | | 8.17 | % | | | 11.56 | %(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 20,113 | | | $ | 35,860 | | | $ | 59,371 | | | $ | 88,997 | | | $ | 90,944 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.29 | %(e) | | | 1.93 | % | | | 3.84 | % | | | 3.26 | % | | | 4.60 | %(e) |
Operating expenses | | | 0.87 | %(e) | | | 0.73 | % | | | 0.77 | % | | | 0.80 | % | | | 0.89 | %(e) |
Portfolio Turnover Rate | | | 92 | %(d) | | | 149 | % | | | 157 | % | | | 133 | % | | | 463 | %(f) |
(a) Prior to May 1, 2010, the Forward Investment Grade Fixed-Income Fund Class Z was known as the Accessor Investment Grade Fixed-Income Fund Z Class.
(b) Commenced operations on May 5, 2009.
(c) Per share amounts are based upon average shares outstanding.
(d) Not Annualized.
(e) Annualized.
(f) Portfolio turnover rate is calculated at the Fund level and represents the year ended December 31, 2009.
| | | | |
| June 30, 2013 | | 90 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Total MarketPlus Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Investor Class(a) | |
| | | Six Months Ended
June 30, 2013
(Unaudited)(b) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(c) | | | Year Ended
December 31,
2010(d) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 26.74 | | | $ | 23.09 | | | $ | 24.50 | | | $ | 23.19 | | | $ | 17.58 | | | $ | 29.76 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(e) | | | (0.05 | ) | | | (0.14 | ) | | | 0.05 | | | | 0.06 | | | | 0.04 | | | | (0.11 | ) |
Net realized and unrealized gain/(loss) on investments | | | 3.33 | | | | 3.79 | | | | (1.35 | ) | | | 5.63 | | | | 5.63 | | | | (11.94 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 3.28 | | | | 3.65 | | | | (1.30 | ) | | | 5.69 | | | | 5.67 | | | | (12.05 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | — | | | | — | | | | — | | | | (4.38 | ) | | | (0.06 | ) | | | — | |
From capital gains | | | — | | | | — | | | | — | | | | — | | | | — | | | | (0.13 | ) |
From return of capital | | | — | | | | — | | | | (0.11 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | — | | | | (0.11 | ) | | | (4.38 | ) | | | (0.06 | ) | | | (0.13 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 3.28 | | | | 3.65 | | | | (1.41 | ) | | | 1.31 | | | | 5.61 | | | | (12.18 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 30.02 | | | $ | 26.74 | | | $ | 23.09 | | | $ | 24.50 | | | $ | 23.19 | | | $ | 17.58 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 12.35 | %(f) | | | 15.72 | % | | | (5.37 | )% | | | 24.60 | % | | | 32.32 | % | | | (40.63 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 1,361 | | | $ | 1,950 | | | $ | 2,217 | | | $ | 2,627 | | | $ | 1,490 | | | $ | 1,744 | |
Ratios to Average Net Assets (excluding dividend expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(g) | | | (0.35 | )%(h) | | | (0.56 | )% | | | 0.21 | % | | | 0.24 | % | | | 0.23 | % | | | (0.26 | )% |
Operating expenses including reimbursement/waiver(g) | | | 1.25 | %(h) | | | 1.38 | %(i)(j) | | | n/a | | | | n/a | | | | n/a | | | | n/a | |
Operating expenses excluding reimbursement/waiver(g) | | | 1.46 | %(h) | | | 1.38 | % | | | 1.34 | % | | | 1.65 | % | | | 1.77 | % | | | 1.84 | %(k) |
Ratios to Average Net Assets (including dividend expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(g) | | | (0.35 | )%(h) | | | (0.56 | )% | | | 0.21 | % | | | 0.24 | % | | | 0.23 | % | | | (0.44 | )% |
Operating expenses including reimbursement/waiver(g) | | | 1.25 | %(h) | | | 1.38 | %(i)(j) | | | n/a | | | | n/a | | | | n/a | | | | n/a | |
Operating expenses excluding reimbursement/waiver(g) | | | 1.46 | %(h) | | | 1.38 | % | | | 1.34 | % | | | 1.65 | % | | | 1.77 | % | | | 2.02 | %(k) |
Portfolio Turnover Rate | | | 170 | %(f) | | | 154 | % | | | 40 | % | | | 169 | % | | | 84 | % | | | 140 | % |
(a) The information provided below for the fiscal years ended December 31, 2009 and after have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The information for prior periods has been audited by predecessor independent registered public accounting firms.
(b) Prior to May 1, 2013, the Forward Total MarketPlus Fund was known as the Forward Extended MarketPlus Fund.
(c) Prior to May 1, 2011, the Forward Extended MarketPlus Fund was known as the Forward SMIDPlus Fund.
(d) Prior to September 20, 2010, the Forward SMIDPlus Fund was known as the Forward Small to Mid Cap Fund. Prior to May 1, 2010, the Forward Small to Mid Cap Fund was known as the Accessor Small to Mid Cap Fund.
(e) Per share amounts are based upon average shares outstanding.
(f) Not Annualized.
(g) Dividend expense totaled 0.00%, of average net assets for the six months ended June 30, 2013, and 0.00%, 0.00%, 0.00%, 0.00% and 0.18% of average net assets for the years ended December 31, 2012, 2011, 2010, 2009 and 2008, respectively.
(h) Annualized.
(i) Affiliated management fee waiver represents less than 0.005%.
(j) Effective November 1, 2012, the Advisor agreed to limit expenses at 1.25%.
(k) The effect of any custody credits on the ratio is less than 0.01%.
| | | | |
| See Notes to Financial Statements | | 91 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Total MarketPlus Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class(a) | |
| | | Six Months Ended
June 30, 2013
(Unaudited)(b) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(c) | | | Year Ended
December 31,
2010(d) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 28.47 | | | $ | 24.51 | | | $ | 25.93 | | | $ | 24.32 | | | $ | 18.42 | | | $ | 31.02 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(e) | | | (0.00 | )(f) | | | (0.04 | ) | | | 0.16 | | | | 0.15 | | | | 0.13 | | | | 0.03 | |
Net realized and unrealized gain/(loss) on investments | | | 3.55 | | | | 4.00 | | | | (1.42 | ) | | | 5.94 | | | | 5.90 | | | | (12.50 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 3.55 | | | | 3.96 | | | | (1.26 | ) | | | 6.09 | | | | 6.03 | | | | (12.47 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | — | | | | — | | | | — | | | | (4.48 | ) | | | (0.13 | ) | | | — | |
From capital gains | | | — | | | | — | | | | — | | | | — | | | | — | | | | (0.13 | ) |
From return of capital | | | — | | | | — | | | | (0.16 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | — | | | | (0.16 | ) | | | (4.48 | ) | | | (0.13 | ) | | | (0.13 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Redemption Fees Added to Paid In Capital | | | — | | | | — | | | | — | | | | — | | | | — | | | | 0.00 | (f) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 3.55 | | | | 3.96 | | | | (1.42 | ) | | | 1.61 | | | | 5.90 | | | | (12.60 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 32.02 | | | $ | 28.47 | | | $ | 24.51 | | | $ | 25.93 | | | $ | 24.32 | | | $ | 18.42 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 12.47 | %(g) | | | 16.16 | % | | | (4.94 | )% | | | 25.13 | % | | | 32.90 | % | | | (40.33 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 20,756 | | | $ | 25,416 | | | $ | 98,153 | | | $ | 116,005 | | | $ | 126,090 | | | $ | 138,263 | |
Ratios to Average Net Assets (excluding dividend expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(h) | | | (0.02 | )%(i) | | | (0.15 | )% | | | 0.62 | % | | | 0.58 | % | | | 0.68 | % | | | 0.28 | % |
Operating expenses including reimbursement/waiver(h) | | | 0.85 | %(i) | | | 0.99 | %(j)(k) | | | n/a | | | | n/a | | | | n/a | | | | n/a | |
Operating expenses excluding reimbursement/waiver(h) | | | 1.06 | %(i) | | | 0.99 | % | | | 0.94 | % | | | 1.26 | % | | | 1.33 | % | | | 1.34 | %(l) |
Ratios to Average Net Assets (including dividend expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(h) | | | (0.02 | )%(i) | | | (0.15 | )% | | | 0.62 | % | | | 0.58 | % | | | 0.68 | % | | | 0.10 | % |
Operating expenses including reimbursement/waiver(h) | | | 0.85 | %(i) | | | 0.99 | %(j)(k) | | | n/a | | | | n/a | | | | n/a | | | | n/a | |
Operating expenses excluding reimbursement/waiver(h) | | | 1.06 | %(i) | | | 0.99 | % | | | 0.94 | % | | | 1.26 | % | | | 1.33 | % | | | 1.52 | %(l) |
Portfolio Turnover Rate | | | 170 | %(g) | | | 154 | % | | | 40 | % | | | 169 | % | | | 84 | % | | | 140 | % |
(a) The information provided below for the fiscal years ended December 31, 2009 and after have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The information for prior periods has been audited by predecessor independent registered public accounting firms.
(b) Prior to May 1, 2013, the Forward Total MarketPlus Fund was known as the Forward Extended MarketPlus Fund.
(c) Prior to May 1, 2011, the Forward Extended MarketPlus Fund was known as the Forward SMIDPlus Fund.
(d) Prior to September 20, 2010, the Forward SMIDPlus Fund was known as the Forward Small to Mid Cap Fund. Prior to May 1, 2010, the Forward Small to Mid Cap Fund was known as the Accessor Small to Mid Cap Fund.
(e) Per share amounts are based upon average shares outstanding.
(f) Amount represents less than $0.01 per share.
(g) Not Annualized.
(h) Dividend expense totaled 0.00%, of average net assets for the six months ended June 30, 2013, and 0.00%, 0.00%, 0.00%, 0.00% and 0.18% of average net assets for the years ended December 31, 2012, 2011, 2010, 2009 and 2008, respectively.
(i) Annualized.
(j) Affiliated management fee waiver represents less than 0.005%.
(k) Effective November 1, 2012, the Advisor agreed to limit expenses at 0.85%.
(l) The effect of any custody credits on the ratio is less than 0.01%.
| | | | |
| June 30, 2013 | | 92 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Total MarketPlus Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Class Z | |
| | | Six Months Ended
June 30, 2013
(Unaudited)(a) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(b) | | | Year Ended
December 31,
2010(c) | | | Period Ended
December 31,
2009(d) | |
Net Asset Value, Beginning of Period | | $ | 28.53 | | | $ | 24.52 | | | $ | 25.93 | | | $ | 24.31 | | | $ | 19.31 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(e) | | | (0.00 | )(f) | | | (0.01 | ) | | | 0.22 | | | | 0.17 | | | | 0.09 | |
Net realized and unrealized gain/(loss) on investments | | | 3.58 | | | | 4.02 | | | | (1.46 | ) | | | 5.96 | | | | 5.00 | |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 3.58 | | | | 4.01 | | | | (1.24 | ) | | | 6.13 | | | | 5.09 | |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
From investment income | | | — | | | | — | | | | — | | | | (4.51 | ) | | | (0.09 | ) |
From return of capital | | | — | | | | — | | | | (0.17 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | — | | | | (0.17 | ) | | | (4.51 | ) | | | (0.09 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 3.58 | | | | 4.01 | | | | (1.41 | ) | | | 1.62 | | | | 5.00 | |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 32.11 | | | $ | 28.53 | | | $ | 24.52 | | | $ | 25.93 | | | $ | 24.31 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 12.63 | %(g) | | | 16.27 | % | | | (4.85 | )% | | | 25.32 | % | | | 26.43 | %(g) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 16,069 | | | $ | 2,068 | | | $ | 10,416 | | | $ | 42,067 | | | $ | 41,580 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | | (0.01 | )%(h) | | | (0.03 | )% | | | 0.82 | % | | | 0.67 | % | | | 0.60 | %(h) |
Operating expenses including reimbursement/waiver | | | 0.75 | %(h) | | | 0.89 | %(i)(j) | | | n/a | | | | n/a | | | | n/a | |
Operating expenses excluding reimbursement/waiver | | | 0.94 | %(h) | | | 0.90 | % | | | 0.83 | % | | | 1.17 | % | | | 1.24 | %(h) |
Portfolio Turnover Rate | | | 170 | %(g) | | | 154 | % | | | 40 | % | | | 169 | % | | | 84 | %(k) |
(a) Prior to May 1, 2013, the Forward Total MarketPlus Fund was known as the Forward Extended MarketPlus Fund.
(b) Prior to May 1, 2011, the Forward Extended MarketPlus Fund was known as the Forward SMIDPlus Fund.
(c) Prior to September 20, 2010, the Forward SMIDPlus Fund was known as the Forward Small to Mid Cap Fund. Prior to May 1, 2010, the Forward Small to Mid Cap Fund Class Z was known as the Accessor Small to Mid Cap Fund Z Class.
(d) Commenced operations on May 5, 2009.
(e) Per share amounts are based upon average shares outstanding.
(f) Amount represents less than $0.01 per share.
(g) Not Annualized.
(h) Annualized.
(i) Effective November 1, 2012, the Advisor agreed to limit expenses at 0.75%.
(j) Affiliated management fee waiver represents less than 0.005%.
(k) Portfolio turnover rate is calculated at the Fund level and represents the year ended December 31, 2009.
| | | | |
| See Notes to Financial Statements | | 93 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward U.S. Government Money Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Investor Class(a) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(b) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.02 | |
Net realized and unrealized gain/(loss) on investments | | | (0.00 | )(d) | | | 0.00 | (d) | | | — | | | | — | | | | 0.00 | (d) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.02 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.00 | )(d) | | | (0.00 | )(d) | | | (0.00 | )(d) | | | (0.00 | )(d)(e) | | | (0.00 | )(d) | | | (0.02 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.00 | )(d) | | | (0.00 | )(d) | | | (0.00 | )(d) | | | (0.00 | )(d) | | | (0.00 | )(d) | | | (0.02 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase in Net Asset Value | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 0.00 | %(f)(i) | | | 0.04 | % | | | 0.01 | % | | | 0.05 | %(e) | | | 0.18 | % | | | 1.79 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 1,593 | | | $ | 1,696 | | | $ | 1,098 | | | $ | 2,419 | | | $ | 3,948 | | | $ | 10,697 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including waiver | | | 0.01 | %(g) | | | 0.04 | % | | | 0.02 | % | | | 0.05 | % | | | 0.21 | % | | | 1.84 | % |
Operating expenses including waiver | | | 0.27 | %(g) | | | 0.25 | % | | | 0.18 | % | | | 0.24 | % | | | 0.57 | % | | | 0.99 | %(h) |
Net investment income/(loss) excluding waiver | | | (0.76 | )%(g) | | | (0.69 | )% | | | (0.70 | )% | | | (0.69 | )% | | | (0.22 | )% | | | 1.84 | % |
Operating expenses excluding waiver | | | 1.04 | %(g) | | | 0.98 | % | | | 0.90 | % | | | 0.98 | % | | | 1.00 | % | | | 0.99 | %(h) |
(a) The information provided below for the fiscal years ended December 31, 2009 and after have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The information for prior periods has been audited by predecessor independent registered public accounting firms.
(b) Prior to May 1, 2010, the Forward U.S. Government Money Fund was known as the Accessor U.S. Government Money Fund.
(c) Per share amounts are based upon average shares outstanding.
(d) Amount represents less than $0.01 per share.
(e) These amounts include a prior year undistributed income amount that was required to be distributed in the current year to meet tax requirements. The effect on the distributions from net investment income and total return was less than $0.005 and 0.01%, respectively.
(f) Not Annualized.
(g) Annualized.
(h) The effect of any custody credits on the ratio is less than 0.01%.
(i) Amount represents less than 0.01%.
| | | | |
| June 30, 2013 | | 94 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward U.S. Government Money Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class(a) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(b) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.03 | |
Net realized and unrealized gain/(loss) on investments | | | (0.00 | )(d) | | | 0.00 | (d) | | | — | | | | — | | | | 0.00 | (d) | | | (0.01 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.02 | |
| | | | | | | | | | | | | | | | | | | | | �� | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.00 | )(d) | | | (0.00 | )(d) | | | (0.00 | )(d) | | | (0.00 | )(d)(e) | | | (0.00 | )(d) | | | (0.02 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.00 | )(d) | | | (0.00 | )(d) | | | (0.00 | )(d) | | | (0.00 | )(d) | | | (0.00 | )(d) | | | (0.02 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase in Net Asset Value | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 0.00 | %(f)(i) | | | 0.04 | % | | | 0.01 | % | | | 0.05 | %(e) | | | 0.26 | % | | | 2.30 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 91,105 | | | $ | 95,796 | | | $ | 189,465 | | | $ | 221,270 | | | $ | 275,448 | | | $ | 392,599 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including waiver | | | 0.01 | %(g) | | | 0.04 | % | | | 0.01 | % | | | 0.05 | % | | | 0.28 | % | | | 2.53 | % |
Operating expenses including waiver | | | 0.27 | %(g) | | | 0.25 | % | | | 0.18 | % | | | 0.24 | % | | | 0.44 | % | | | 0.49 | %(h) |
Net investment income/(loss) excluding waiver | | | (0.27 | )%(g) | | | (0.18 | )% | | | (0.21 | )% | | | (0.19 | )% | | | 0.22 | % | | | 2.53 | % |
Operating expenses excluding waiver | | | 0.55 | %(g) | | | 0.47 | % | | | 0.40 | % | | | 0.48 | % | | | 0.50 | % | | | 0.49 | %(h) |
(a) The information provided below for the fiscal years ended December 31, 2009 and after have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The information for prior periods has been audited by predecessor independent registered public accounting firms.
(b) Prior to May 1, 2010, the Forward U.S. Government Money Fund was known as the Accessor U.S. Government Money Fund.
(c) Per share amounts are based upon average shares outstanding.
(d) Amount represents less than $0.01 per share.
(e) These amounts include a prior year undistributed income amount that was required to be distributed in the current year to meet tax requirements. The effect on the distributions from net investment income and total return was less than $0.005 and 0.01%, respectively.
(f) Not Annualized.
(g) Annualized.
(h) The effect of any custody credits on the ratio is less than 0.01%.
(i) Amount represents less than 0.01%.
| | | | |
| See Notes to Financial Statements | | 95 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward U.S. Government Money Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A(a) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(b) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.02 | |
Net realized and unrealized gain/(loss) on investments | | | (0.00 | )(d) | | | 0.00 | (d) | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.02 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.00 | )(d) | | | (0.00 | )(d) | | | (0.00 | )(d) | | | (0.00 | )(d)(e) | | | (0.00 | )(d) | | | (0.02 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.00 | )(d) | | | (0.00 | )(d) | | | (0.00 | )(d) | | | (0.00 | )(d) | | | (0.00 | )(d) | | | (0.02 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase in Net Asset Value | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 0.00 | %(f)(i) | | | 0.04 | % | | | 0.01 | % | | | 0.05 | %(e) | | | 0.20 | % | | | 2.05 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 1,543 | | | $ | 1,413 | | | $ | 1,576 | | | $ | 1,529 | | | $ | 594 | | | $ | 708 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including waiver | | | 0.01 | %(g) | | | 0.04 | % | | | 0.01 | % | | | 0.05 | % | | | 0.22 | % | | | 2.22 | % |
Operating expenses including waiver | | | 0.27 | %(g) | | | 0.25 | % | | | 0.18 | % | | | 0.22 | % | | | 0.52 | % | | | 0.74 | %(h) |
Net investment income/(loss) excluding waiver | | | (0.51 | )%(g) | | | (0.43 | )% | | | (0.46 | )% | | | (0.46 | )% | | | (0.02 | )% | | | 2.22 | % |
Operating expenses excluding waiver | | | 0.79 | %(g) | | | 0.72 | % | | | 0.65 | % | | | 0.73 | % | | | 0.75 | % | | | 0.74 | %(h) |
(a) The information provided below for the fiscal years ended December 31, 2009 and after have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The information for prior periods has been audited by predecessor independent registered public accounting firms.
(b) Prior to May 1, 2010, the Forward U.S. Government Money Fund Class A was known as the Accessor U.S. Government Money Fund A Class.
(c) Per share amounts are based upon average shares outstanding.
(d) Amount represents less than $0.01 per share.
(e) These amounts include a prior year undistributed income amount that was required to be distributed in the current year to meet tax requirements. The effect on the distributions from net investment income and total return was less than $0.005 and 0.01%, respectively.
(f) Not Annualized.
(g) Annualized.
(h) The effect of any custody credits on the ratio is less than 0.01%.
(i) Amount represents less than 0.01%.
| | | | |
| June 30, 2013 | | 96 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward U.S. Government Money Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class C(a) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(b) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.01 | |
Net realized and unrealized gain/(loss) on investments | | | (0.00 | )(d) | | | 0.00 | (d) | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.01 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.00 | )(d) | | | (0.00 | )(d) | | | (0.00 | )(d) | | | (0.00 | )(d)(e) | | | (0.00 | )(d) | | | (0.01 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.00 | )(d) | | | (0.00 | )(d) | | | (0.00 | )(d) | | | (0.00 | )(d) | | | (0.00 | )(d) | | | (0.01 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase in Net Asset Value | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(f) | | | 0.00 | %(g)(j) | | | 0.04 | % | | | 0.01 | % | | | 0.05 | %(e) | | | 0.16 | % | | | 1.29 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 2,150 | | | $ | 1,478 | | | $ | 5,159 | | | $ | 993 | | | $ | 1,252 | | | $ | 1,937 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including waiver | | | 0.01 | %(h) | | | 0.03 | % | | | 0.01 | % | | | 0.05 | % | | | 0.17 | % | | | 1.24 | % |
Operating expenses including waiver | | | 0.27 | %(h) | | | 0.25 | % | | | 0.17 | % | | | 0.24 | % | | | 0.56 | % | | | 1.50 | %(i) |
Net investment income/(loss) excluding waiver | | | (1.27 | )%(h) | | | (1.18 | )% | | | (1.21 | )% | | | (1.19 | )% | | | (0.77 | )% | | | 1.24 | % |
Operating expenses excluding waiver | | | 1.55 | %(h) | | | 1.46 | % | | | 1.39 | % | | | 1.48 | % | | | 1.50 | % | | | 1.50 | %(i) |
(a) The information provided below for the fiscal years ended December 31, 2009 and after have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The information for prior periods has been audited by predecessor independent registered public accounting firms.
(b) Prior to May 1, 2010, the Forward U.S. Government Money Fund Class C was known as the Accessor U.S. Government Money Fund C Class.
(c) Per share amounts are based upon average shares outstanding.
(d) Amount represents less than $0.01 per share.
(e) These amounts include a prior year undistributed income amount that was required to be distributed in the current year to meet tax requirements. The effect on the distributions from net investment income and total return was less than $0.005 and 0.01%, respectively.
(f) Total return does not reflect the effect of sales charges.
(g) Not Annualized.
(h) Annualized.
(i) The effect of any custody credits on the ratio is less than 0.01%.
(j) Amount represents less than 0.01%.
| | | | |
| See Notes to Financial Statements | | 97 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward U.S. Government Money Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class Z(a) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(b) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.02 | |
Net realized and unrealized gain/(loss) on investments | | | (0.00 | )(d) | | | 0.00 | (d) | | | — | | | | — | | | | 0.00 | (d) | | | 0.01 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.00 | (d) | | | 0.03 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.00 | )(d) | | | (0.00 | )(d) | | | (0.00 | )(d) | | | (0.00 | )(d)(e) | | | (0.00 | )(d) | | | (0.03 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.00 | )(d) | | | (0.00 | )(d) | | | (0.00 | )(d) | | | (0.00 | )(d) | | | (0.00 | )(d) | | | (0.03 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase in Net Asset Value | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 0.00 | %(f)(i) | | | 0.04 | % | | | 0.01 | % | | | 0.08 | %(e) | | | 0.45 | % | | | 2.55 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 1,621 | | | $ | 3,164 | | | $ | 257,898 | | | $ | 307,986 | | | $ | 435,856 | | | $ | 746,292 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including waiver | | | 0.01 | %(g) | | | 0.02 | % | | | 0.02 | % | | | 0.08 | % | | | 0.51 | % | | | 2.31 | % |
Operating expenses including waiver | | | 0.27 | %(g) | | | 0.24 | % | | | 0.18 | % | | | 0.21 | % | | | 0.25 | % | | | 0.24 | %(h) |
Net investment income/(loss) excluding waiver | | | (0.02 | )%(g) | | | 0.00 | %(i) | | | (0.01 | )% | | | 0.06 | % | | | 0.50 | % | | | 2.31 | % |
Operating expenses excluding waiver | | | 0.30 | %(g) | | | 0.26 | % | | | 0.21 | % | | | 0.23 | % | | | 0.25 | % | | | 0.24 | %(h) |
(a) The information provided below for the fiscal years ended December 31, 2009 and after have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The information for prior periods has been audited by predecessor independent registered public accounting firms.
(b) Prior to May 1, 2010, the Forward U.S. Government Money Fund Class Z was known as the Accessor U.S. Government Money Fund Z Class.
(c) Per share amounts are based upon average shares outstanding.
(d) Amount represents less than $0.01 per share.
(e) These amounts include a prior year undistributed income amount that was required to be distributed in the current year to meet tax requirements. The effect on the distributions from net investment income and total return was less than $0.005 and 0.01%, respectively.
(f) Not Annualized.
(g) Annualized.
(h) The effect of any custody credits on the ratio is less than 0.01%.
(i) Amount represents less than 0.01%.
| | | | |
| June 30, 2013 | | 98 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Balanced Allocation Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Investor Class(a) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(b) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 14.94 | | | $ | 13.96 | | | $ | 15.18 | | | $ | 14.56 | | | $ | 12.47 | | | $ | 17.28 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.16 | | | | 0.33 | | | | 0.33 | | | | 0.69 | | | | 0.41 | | | | 0.34 | |
Net realized and unrealized gain/(loss) on investments | | | 0.09 | | | | 1.02 | | | | (0.83 | ) | | | 0.61 | | | | 2.09 | | | | (4.61 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.25 | | | | 1.35 | | | | (0.50 | ) | | | 1.30 | | | | 2.50 | | | | (4.27 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.17 | ) | | | (0.37 | ) | | | (0.34 | ) | | | (0.68 | ) | | | (0.41 | ) | | | (0.40 | ) |
From capital gains | | | — | | | | — | | | | (0.38 | ) | | | — | | | | — | | | | (0.14 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.17 | ) | | | (0.37 | ) | | | (0.72 | ) | | | (0.68 | ) | | | (0.41 | ) | | | (0.54 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.08 | | | | 0.98 | | | | (1.22 | ) | | | 0.62 | | | | 2.09 | | | | (4.81 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 15.02 | | | $ | 14.94 | | | $ | 13.96 | | | $ | 15.18 | | | $ | 14.56 | | | $ | 12.47 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 1.68 | %(d) | | | 9.71 | % | | | (3.34 | )% | | | 9.05 | % | | | 20.38 | % | | | (25.12 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 3,114 | | | $ | 4,146 | | | $ | 8,503 | | | $ | 12,898 | | | $ | 13,137 | | | $ | 10,243 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including expense paid directly by the advisor | | | 2.12 | %(e) | | | 2.23 | % | | | 2.15 | % | | | 4.64 | % | | | 3.07 | % | | | 2.24 | % |
Operating expenses including expense paid directly by the advisor(f) | | | 0.78 | %(e) | | | 0.75 | % | | | 0.68 | % | | | 0.63 | % | | | 0.67 | % | | | 0.70 | % |
Net investment income excluding expense paid directly by the advisor | | | 2.02 | %(e) | | | 2.12 | % | | | 2.04 | % | | | 4.53 | % | | | 2.99 | % | | | 2.24 | % |
Operating expenses excluding expense paid directly by the advisor(f) | | | 0.88 | %(e) | | | 0.86 | % | | | 0.79 | % | | | 0.74 | % | | | 0.75 | % | | | 0.70 | % |
Portfolio Turnover Rate | | | 22 | %(d) | | | 81 | % | | | 78 | % | | | 55 | % | | | 28 | % | | | 26 | % |
(a) The information provided below for the fiscal years ended December 31, 2009 and after have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The information for prior periods has been audited by predecessor independent registered public accounting firms.
(b) Prior to May 1, 2010, the Forward Balanced Allocation Fund was known as the Accessor Balanced Allocation Fund.
(c) Per share amounts are based upon average shares outstanding.
(d) Not Annualized.
(e) Annualized.
(f) Excludes expenses of the affiliated funds in which the Fund invests.
| | | | |
| See Notes to Financial Statements | | 99 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Balanced Allocation Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class(a) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(b) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 14.95 | | | $ | 13.97 | | | $ | 15.19 | | | $ | 14.57 | | | $ | 12.48 | | | $ | 17.29 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.20 | | | | 0.41 | | | | 0.39 | | | | 0.70 | | | | 0.48 | | | | 0.42 | |
Net realized and unrealized gain/(loss) on investments | | | 0.09 | | | | 1.01 | | | | (0.81 | ) | | | 0.68 | | | | 2.09 | | | | (4.62 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.29 | | | | 1.42 | | | | (0.42 | ) | | | 1.38 | | | | 2.57 | | | | (4.20 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.21 | ) | | | (0.44 | ) | | | (0.42 | ) | | | (0.76 | ) | | | (0.48 | ) | | | (0.47 | ) |
From capital gains | | | — | | | | — | | | | (0.38 | ) | | | — | | | | — | | | | (0.14 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.21 | ) | | | (0.44 | ) | | | (0.80 | ) | | | (0.76 | ) | | | (0.48 | ) | | | (0.61 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.08 | | | | 0.98 | | | | (1.22 | ) | | | 0.62 | | | | 2.09 | | | | (4.81 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 15.03 | | | $ | 14.95 | | | $ | 13.97 | | | $ | 15.19 | | | $ | 14.57 | | | $ | 12.48 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 1.93 | %(d) | | | 10.26 | % | | | (2.84 | )% | | | 9.59 | % | | | 20.97 | % | | | (24.73 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 17,653 | | | $ | 24,207 | | | $ | 35,935 | | | $ | 70,749 | | | $ | 76,923 | | | $ | 52,881 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including expense paid directly by the advisor | | | 2.63 | %(e) | | | 2.78 | % | | | 2.55 | % | | | 4.74 | % | | | 3.58 | % | | | 2.79 | % |
Operating expenses including expense paid directly by the advisor(f) | | | 0.28 | %(e) | | | 0.25 | % | | | 0.17 | % | | | 0.13 | % | | | 0.17 | % | | | 0.20 | % |
Net investment income excluding expense paid directly by the advisor | | | 2.53 | %(e) | | | 2.67 | % | | | 2.44 | % | | | 4.63 | % | | | 3.50 | % | | | 2.79 | % |
Operating expenses excluding expense paid directly by the advisor(f) | | | 0.38 | %(e) | | | 0.36 | % | | | 0.28 | % | | | 0.24 | % | | | 0.25 | % | | | 0.20 | % |
Portfolio Turnover Rate | | | 22 | %(d) | | | 81 | % | | | 78 | % | | | 55 | % | | | 28 | % | | | 26 | % |
(a) The information provided below for the fiscal years ended December 31, 2009 and after have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The information for prior periods has been audited by predecessor independent registered public accounting firms.
(b) Prior to May 1, 2010, the Forward Balanced Allocation Fund was known as the Accessor Balanced Allocation Fund.
(c) Per share amounts are based upon average shares outstanding.
(d) Not Annualized.
(e) Annualized.
(f) Excludes expenses of the affiliated funds in which the Fund invests.
| | | | |
| June 30, 2013 | | 100 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Balanced Allocation Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A(a) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(b) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 14.93 | | | $ | 13.95 | | | $ | 15.17 | | | $ | 14.56 | | | $ | 12.46 | | | $ | 17.27 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.18 | | | | 0.38 | | | | 0.30 | | | | 0.67 | | | | 0.42 | | | | 0.36 | |
Net realized and unrealized gain/(loss) on investments | | | 0.09 | | | | 0.99 | | | | (0.78 | ) | | | 0.64 | | | | 2.11 | | | | (4.61 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.27 | | | | 1.37 | | | | (0.48 | ) | | | 1.31 | | | | 2.53 | | | | (4.25 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.19 | ) | | | (0.39 | ) | | | (0.36 | ) | | | (0.70 | ) | | | (0.43 | ) | | | (0.42 | ) |
From capital gains | | | — | | | | — | | | | (0.38 | ) | | | — | | | | — | | | | (0.14 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.19 | ) | | | (0.39 | ) | | | (0.74 | ) | | | (0.70 | ) | | | (0.43 | ) | | | (0.56 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.08 | | | | 0.98 | | | | (1.22 | ) | | | 0.61 | | | | 2.10 | | | | (4.81 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 15.01 | | | $ | 14.93 | | | $ | 13.95 | | | $ | 15.17 | | | $ | 14.56 | | | $ | 12.46 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(d) | | | 1.76 | %(e) | | | 9.89 | % | | | (3.21 | )% | | | 9.14 | % | | | 20.66 | % | | | (25.02 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 5,562 | | | $ | 5,904 | | | $ | 6,230 | | | $ | 20,392 | | | $ | 21,999 | | | $ | 19,506 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including expense paid directly by the advisor | | | 2.34 | %(f) | | | 2.60 | % | | | 1.93 | % | | | 4.55 | % | | | 3.17 | % | | | 2.40 | % |
Operating expenses including expense paid directly by the advisor(g) | | | 0.63 | %(f) | | | 0.60 | % | | | 0.51 | % | | | 0.48 | % | | | 0.52 | % | | | 0.55 | % |
Net investment income excluding expense paid directly by the advisor | | | 2.24 | %(f) | | | 2.50 | % | | | 1.82 | % | | | 4.44 | % | | | 3.09 | % | | | 2.40 | % |
Operating expenses excluding expense paid directly by the advisor(g) | | | 0.73 | %(f) | | | 0.70 | % | | | 0.62 | % | | | 0.59 | % | | | 0.60 | % | | | 0.55 | % |
Portfolio Turnover Rate | | | 22 | %(e) | | | 81 | % | | | 78 | % | | | 55 | % | | | 28 | % | | | 26 | % |
(a) The information provided below for the fiscal years ended December 31, 2009 and after have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The information for prior periods has been audited by predecessor independent registered public accounting firms.
(b) Prior to May 1, 2010, the Forward Balanced Allocation Fund Class A was known as the Accessor Balanced Allocation Fund A Class.
(c) Per share amounts are based upon average shares outstanding.
(d) Total return does not reflect the effect of sales charges.
(e) Not Annualized.
(f) Annualized.
(g) Excludes expenses of the affiliated funds in which the Fund invests.
| | | | |
| See Notes to Financial Statements | | 101 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Balanced Allocation Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class C(a) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(b) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 14.91 | | | $ | 13.93 | | | $ | 15.15 | | | $ | 14.54 | | | $ | 12.45 | | | $ | 17.25 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.12 | | | | 0.28 | | | | 0.25 | | | | 0.62 | | | | 0.35 | | | | 0.26 | |
Net realized and unrealized gain/(loss) on investments | | | 0.09 | | | | 0.99 | | | | (0.83 | ) | | | 0.60 | | | | 2.09 | | | | (4.60 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.21 | | | | 1.27 | | | | (0.58 | ) | | | 1.22 | | | | 2.44 | | | | (4.34 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.13 | ) | | | (0.29 | ) | | | (0.26 | ) | | | (0.61 | ) | | | (0.35 | ) | | | (0.32 | ) |
From capital gains | | | — | | | | — | | | | (0.38 | ) | | | — | | | | — | | | | (0.14 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.13 | ) | | | (0.29 | ) | | | (0.64 | ) | | | (0.61 | ) | | | (0.35 | ) | | | (0.46 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.08 | | | | 0.98 | | | | (1.22 | ) | | | 0.61 | | | | 2.09 | | | | (4.80 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 14.99 | | | $ | 14.91 | | | $ | 13.93 | | | $ | 15.15 | | | $ | 14.54 | | | $ | 12.45 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(d) | | | 1.43 | %(e) | | | 9.18 | % | | | (3.84 | )% | | | 8.45 | % | | | 19.82 | % | | | (25.49 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 7,120 | | | $ | 9,884 | | | $ | 11,984 | | | $ | 17,005 | | | $ | 15,548 | | | $ | 12,770 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including expense paid directly by the advisor | | | 1.59 | %(f) | | | 1.89 | % | | | 1.68 | % | | | 4.17 | % | | | 2.64 | % | | | 1.72 | % |
Operating expenses including expense paid directly by the advisor(g) | | | 1.28 | %(f) | | | 1.25 | % | | | 1.18 | % | | | 1.13 | % | | | 1.17 | % | | | 1.20 | % |
Net investment income excluding expense paid directly by the advisor | | | 1.49 | %(f) | | | 1.79 | % | | | 1.57 | % | | | 4.06 | % | | | 2.56 | % | | | 1.72 | % |
Operating expenses excluding expense paid directly by the advisor(g) | | | 1.38 | %(f) | | | 1.35 | % | | | 1.29 | % | | | 1.24 | % | | | 1.25 | % | | | 1.20 | % |
Portfolio Turnover Rate | | | 22 | %(e) | | | 81 | % | | | 78 | % | | | 55 | % | | | 28 | % | | | 26 | % |
(a) The information provided below for the fiscal years ended December 31, 2009 and after have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The information for prior periods has been audited by predecessor independent registered public accounting firms.
(b) Prior to May 1, 2010, the Forward Balanced Allocation Fund Class C was known as the Accessor Balanced Allocation Fund C Class.
(c) Per share amounts are based upon average shares outstanding.
(d) Total return does not reflect the effect of sales charges.
(e) Not Annualized.
(f) Annualized.
(g) Excludes expenses of the affiliated funds in which the Fund invests.
| | | | |
| June 30, 2013 | | 102 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Growth & Income Allocation Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Investor Class(a) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(b) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 15.02 | | | $ | 13.94 | | | $ | 14.82 | | | $ | 14.15 | | | $ | 11.95 | | | $ | 17.70 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.16 | | | | 0.30 | | | | 0.24 | | | | 0.70 | | | | 0.35 | | | | 0.27 | |
Net realized and unrealized gain/(loss) on investments | | | 0.24 | | | | 1.15 | | | | (0.79 | ) | | | 0.67 | | | | 2.23 | | | | (5.41 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.40 | | | | 1.45 | | | | (0.55 | ) | | | 1.37 | | | | 2.58 | | | | (5.14 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.17 | ) | | | (0.37 | ) | | | (0.27 | ) | | | (0.70 | ) | | | (0.38 | ) | | | (0.35 | ) |
From capital gains | | | — | | | | — | | | | (0.06 | ) | | | — | | | | — | | | | (0.26 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.17 | ) | | | (0.37 | ) | | | (0.33 | ) | | | (0.70 | ) | | | (0.38 | ) | | | (0.61 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.23 | | | | 1.08 | | | | (0.88 | ) | | | 0.67 | | | | 2.20 | | | | (5.75 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 15.25 | | | $ | 15.02 | | | $ | 13.94 | | | $ | 14.82 | | | $ | 14.15 | | | $ | 11.95 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 2.69 | %(d) | | | 10.46 | % | | | (3.74 | )% | | | 9.76 | % | | | 21.84 | % | | | (29.56 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 4,111 | | | $ | 4,540 | | | $ | 7,527 | | | $ | 13,031 | | | $ | 12,083 | | | $ | 11,049 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including expense paid directly by the advisor | | | 2.11 | %(e) | | | 2.04 | % | | | 1.63 | % | | | 4.86 | % | | | 2.80 | % | | | 1.81 | % |
Operating expenses including expense paid directly by the advisor(f) | | | 0.80 | %(e) | | | 0.75 | % | | | 0.71 | % | | | 0.66 | % | | | 0.68 | % | | | 0.70 | % |
Net investment income excluding expense paid directly by the advisor | | | 2.01 | %(e) | | | 1.92 | % | | | 1.50 | % | | | 4.73 | % | | | 2.70 | % | | | 1.81 | % |
Operating expenses excluding expense paid directly by the advisor(f) | | | 0.90 | %(e) | | | 0.87 | % | | | 0.84 | % | | | 0.79 | % | | | 0.78 | % | | | 0.70 | % |
Portfolio Turnover Rate | | | 34 | %(d) | | | 84 | % | | | 79 | % | | | 47 | % | | | 28 | % | | | 35 | % |
(a) The information provided below for the fiscal years ended December 31, 2009 and after have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The information for prior periods has been audited by predecessor independent registered public accounting firms.
(b) Prior to May 1, 2010, the Forward Growth & Income Allocation Fund was known as the Accessor Growth & Income Allocation Fund.
(c) Per share amounts are based upon average shares outstanding.
(d) Not Annualized.
(e) Annualized.
(f) Excludes expenses of the affiliated funds in which the Fund invests.
| | | | |
| See Notes to Financial Statements | | 103 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Growth & Income Allocation Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class(a) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(b) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 15.04 | | | $ | 13.96 | | | $ | 14.84 | | | $ | 14.17 | | | $ | 11.97 | | | $ | 17.72 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.20 | | | | 0.39 | | | | 0.31 | | | | 0.69 | | | | 0.44 | | | | 0.35 | |
Net realized and unrealized gain/(loss) on investments | | | 0.24 | | | | 1.14 | | | | (0.78 | ) | | | 0.75 | | | | 2.20 | | | | (5.41 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.44 | | | | 1.53 | | | | (0.47 | ) | | | 1.44 | | | | 2.64 | | | | (5.06 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.21 | ) | | | (0.45 | ) | | | (0.35 | ) | | | (0.77 | ) | | | (0.44 | ) | | | (0.43 | ) |
From capital gains | | | — | | | | — | | | | (0.06 | ) | | | — | | | | — | | | | (0.26 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.21 | ) | | | (0.45 | ) | | | (0.41 | ) | | | (0.77 | ) | | | (0.44 | ) | | | (0.69 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.23 | | | | 1.08 | | | | (0.88 | ) | | | 0.67 | | | | 2.20 | | | | (5.75 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 15.27 | | | $ | 15.04 | | | $ | 13.96 | | | $ | 14.84 | | | $ | 14.17 | | | $ | 11.97 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 2.95 | %(d) | | | 11.05 | % | | | (3.22 | )% | | | 10.28 | % | | | 22.39 | % | | | (29.16 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 13,754 | | | $ | 16,273 | | | $ | 24,909 | | | $ | 43,690 | | | $ | 51,974 | | | $ | 40,382 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including expense paid directly by the advisor | | | 2.56 | %(e) | | | 2.65 | % | | | 2.08 | % | | | 4.74 | % | | | 3.43 | % | | | 2.28 | % |
Operating expenses including expense paid directly by the advisor(f) | | | 0.30 | %(e) | | | 0.25 | % | | | 0.21 | % | | | 0.16 | % | | | 0.18 | % | | | 0.20 | % |
Net investment income excluding expense paid directly by the advisor | | | 2.46 | %(e) | | | 2.53 | % | | | 1.95 | % | | | 4.61 | % | | | 3.33 | % | | | 2.28 | % |
Operating expenses excluding expense paid directly by the advisor(f) | | | 0.40 | %(e) | | | 0.37 | % | | | 0.34 | % | | | 0.29 | % | | | 0.29 | % | | | 0.20 | % |
Portfolio Turnover Rate | | | 34 | %(d) | | | 84 | % | | | 79 | % | | | 47 | % | | | 28 | % | | | 35 | % |
(a) The information provided below for the fiscal years ended December 31, 2009 and after have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The information for prior periods has been audited by predecessor independent registered public accounting firms.
(b) Prior to May 1, 2010, the Forward Growth & Income Allocation Fund was known as the Accessor Growth & Income Allocation Fund.
(c) Per share amounts are based upon average shares outstanding.
(d) Not Annualized.
(e) Annualized.
(f) Excludes expenses of the affiliated funds in which the Fund invests.
| | | | |
| June 30, 2013 | | 104 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Growth & Income Allocation Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A(a) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(b) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 14.99 | | | $ | 13.92 | | | $ | 14.80 | | | $ | 14.13 | | | $ | 11.93 | | | $ | 17.67 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.17 | | | | 0.37 | | | | 0.28 | | | | 0.68 | | | | 0.37 | | | | 0.30 | |
Net realized and unrealized gain/(loss) on investments | | | 0.25 | | | | 1.10 | | | | (0.81 | ) | | | 0.71 | | | | 2.23 | | | | (5.41 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.42 | | | | 1.47 | | | | (0.53 | ) | | | 1.39 | | | | 2.60 | | | | (5.11 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.19 | ) | | | (0.40 | ) | | | (0.29 | ) | | | (0.72 | ) | | | (0.40 | ) | | | (0.37 | ) |
From capital gains | | | — | | | | — | | | | (0.06 | ) | | | — | | | | — | | | | (0.26 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.19 | ) | | | (0.40 | ) | | | (0.35 | ) | | | (0.72 | ) | | | (0.40 | ) | | | (0.63 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.23 | | | | 1.07 | | | | (0.88 | ) | | | 0.67 | | | | 2.20 | | | | (5.74 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 15.22 | | | $ | 14.99 | | | $ | 13.92 | | | $ | 14.80 | | | $ | 14.13 | | | $ | 11.93 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(d) | | | 2.78 | %(e) | | | 10.62 | % | | | (3.59 | )% | | | 9.92 | % | | | 22.04 | % | | | (29.44 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 11,400 | | | $ | 12,222 | | | $ | 12,691 | | | $ | 17,864 | | | $ | 19,428 | | | $ | 20,190 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including expense paid directly by the advisor | | | 2.26 | %(f) | | | 2.53 | % | | | 1.87 | % | | | 4.69 | % | | | 2.95 | % | | | 1.96 | % |
Operating expenses including expense paid directly by the advisor(g) | | | 0.65 | %(f) | | | 0.60 | % | | | 0.56 | % | | | 0.51 | % | | | 0.53 | % | | | 0.55 | % |
Net investment income excluding expense paid directly by the advisor | | | 2.16 | %(f) | | | 2.42 | % | | | 1.74 | % | | | 4.56 | % | | | 2.85 | % | | | 1.96 | % |
Operating expenses excluding expense paid directly by the advisor(g) | | | 0.75 | %(f) | | | 0.71 | % | | | 0.69 | % | | | 0.64 | % | | | 0.63 | % | | | 0.55 | % |
Portfolio Turnover Rate | | | 34 | %(e) | | | 84 | % | | | 79 | % | | | 47 | % | | | 28 | % | | | 35 | % |
(a) The information provided below for the fiscal years ended December 31, 2009 and after have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The information for prior periods has been audited by predecessor independent registered public accounting firms.
(b) Prior to May 1, 2010, the Forward Growth & Income Allocation Fund Class A was known as the Accessor Growth & Income Allocation Fund A Class.
(c) Per share amounts are based upon average shares outstanding.
(d) Total return does not reflect the effect of sales charges.
(e) Not Annualized.
(f) Annualized.
(g) Excludes expenses of the affiliated funds in which the Fund invests.
| | | | |
| See Notes to Financial Statements | | 105 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Growth & Income Allocation Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class C(a) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(b) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 14.99 | | | $ | 13.90 | | | $ | 14.77 | | | $ | 14.11 | | | $ | 11.91 | | | $ | 17.64 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.12 | | | | 0.23 | | | | 0.17 | | | | 0.60 | | | | 0.29 | | | | 0.20 | |
Net realized and unrealized gain/(loss) on investments | | | 0.23 | | | | 1.15 | | | | (0.79 | ) | | | 0.68 | | | | 2.22 | | | | (5.40 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.35 | | | | 1.38 | | | | (0.62 | ) | | | 1.28 | | | | 2.51 | | | | (5.20 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.13 | ) | | | (0.29 | ) | | | (0.19 | ) | | | (0.62 | ) | | | (0.31 | ) | | | (0.27 | ) |
From capital gains | | | — | | | | — | | | | (0.06 | ) | | | — | | | | — | | | | (0.26 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.13 | ) | | | (0.29 | ) | | | (0.25 | ) | | | (0.62 | ) | | | (0.31 | ) | | | (0.53 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.22 | | | | 1.09 | | | | (0.87 | ) | | | 0.66 | | | | 2.20 | | | | (5.73 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 15.21 | | | $ | 14.99 | | | $ | 13.90 | | | $ | 14.77 | | | $ | 14.11 | | | $ | 11.91 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(d) | | | 2.43 | %(e) | | | 9.89 | % | | | (4.19 | )% | | | 9.16 | % | | | 21.20 | % | | | (29.86 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 12,417 | | | $ | 14,466 | | | $ | 22,529 | | | $ | 32,334 | | | $ | 33,843 | | | $ | 31,953 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including expense paid directly by the advisor | | | 1.58 | %(f) | | | 1.57 | % | | | 1.18 | % | | | 4.20 | % | | | 2.32 | % | | | 1.29 | % |
Operating expenses including expense paid directly by the advisor(g) | | | 1.30 | %(f) | | | 1.25 | % | | | 1.21 | % | | | 1.16 | % | | | 1.18 | % | | | 1.20 | % |
Net investment income excluding expense paid directly by the advisor | | | 1.48 | %(f) | | | 1.45 | % | | | 1.05 | % | | | 4.07 | % | | | 2.22 | % | | | 1.29 | % |
Operating expenses excluding expense paid directly by the advisor(g) | | | 1.40 | %(f) | | | 1.37 | % | | | 1.34 | % | | | 1.29 | % | | | 1.28 | % | | | 1.20 | % |
Portfolio Turnover Rate | | | 34 | %(e) | | | 84 | % | | | 79 | % | | | 47 | % | | | 28 | % | | | 35 | % |
(a) The information provided below for the fiscal years ended December 31, 2009 and after have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The information for prior periods has been audited by predecessor independent registered public accounting firms.
(b) Prior to May 1, 2010, the Forward Growth & Income Allocation Fund Class C was known as the Accessor Growth & Income Allocation Fund C Class.
(c) Per share amounts are based upon average shares outstanding.
(d) Total return does not reflect the effect of sales charges.
(e) Not Annualized.
(f) Annualized.
(g) Excludes expenses of the affiliated funds in which the Fund invests.
| | | | |
| June 30, 2013 | | 106 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Growth Allocation Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Investor Class(a) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(b) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 14.09 | | | $ | 12.94 | | | $ | 14.71 | | | $ | 13.99 | | | $ | 11.61 | | | $ | 18.66 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.15 | | | | 0.33 | | | | 0.12 | | | | 0.69 | | | | 0.28 | | | | 0.13 | |
Net realized and unrealized gain/(loss) on investments | | | 0.26 | | | | 1.22 | | | | (0.98 | ) | | | 0.74 | | | | 2.41 | | | | (6.61 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.41 | | | | 1.55 | | | | (0.86 | ) | | | 1.43 | | | | 2.69 | | | | (6.48 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.17 | ) | | | (0.40 | ) | | | (0.13 | ) | | | (0.71 | ) | | | (0.31 | ) | | | (0.23 | ) |
From capital gains | | | — | | | | — | | | | (0.78 | ) | | | — | | | | — | | | | (0.34 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.17 | ) | | | (0.40 | ) | | | (0.91 | ) | | | (0.71 | ) | | | (0.31 | ) | | | (0.57 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.24 | | | | 1.15 | | | | (1.77 | ) | | | 0.72 | | | | 2.38 | | | | (7.05 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 14.33 | | | $ | 14.09 | | | $ | 12.94 | | | $ | 14.71 | | | $ | 13.99 | | | $ | 11.61 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 2.90 | %(d) | | | 12.09 | % | | | (5.82 | )% | | | 10.25 | % | | | 23.35 | % | | | (35.30 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 3,591 | | | $ | 4,408 | | | $ | 7,853 | | | $ | 12,728 | | | $ | 12,610 | | | $ | 12,597 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including expense paid directly by the advisor | | | 2.09 | %(e) | | | 2.37 | % | | | 0.86 | % | | | 4.87 | % | | | 2.26 | % | | | 0.86 | % |
Operating expenses including expense paid directly by the advisor(f) | | | 0.84 | %(e) | | | 0.76 | % | | | 0.71 | % | | | 0.68 | % | | | 0.68 | % | | | 0.70 | % |
Net investment income excluding expense paid directly by the advisor | | | 1.99 | %(e) | | | 2.26 | % | | | 0.72 | % | | | 4.73 | % | | | 2.16 | % | | | 0.86 | % |
Operating expenses excluding expense paid directly by the advisor(f) | | | 0.94 | %(e) | | | 0.87 | % | | | 0.85 | % | | | 0.82 | % | | | 0.78 | % | | | 0.70 | % |
Portfolio Turnover Rate | | | 41 | %(d) | | | 89 | % | | | 84 | % | | | 70 | % | | | 32 | % | | | 31 | % |
(a) The information provided below for the fiscal years ended December 31, 2009 and after have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The information for prior periods has been audited by predecessor independent registered public accounting firms.
(b) Prior to May 1, 2010, the Forward Growth Allocation Fund was known as the Accessor Growth Allocation Fund.
(c) Per share amounts are based upon average shares outstanding.
(d) Not Annualized.
(e) Annualized.
(f) Excludes expenses of the affiliated funds in which the Fund invests.
| | | | |
| See Notes to Financial Statements | | 107 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Growth Allocation Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class(a) | |
| | | Six Months Ended June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(b) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 14.09 | | | $ | 12.94 | | | $ | 14.72 | | | $ | 14.00 | | | $ | 11.61 | | | $ | 18.68 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.19 | | | | 0.39 | | | | 0.19 | | | | 0.72 | | | | 0.36 | | | | 0.21 | |
Net realized and unrealized gain/(loss) on investments | | | 0.26 | | | | 1.24 | | | | (0.98 | ) | | | 0.78 | | | | 2.40 | | | | (6.64 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.45 | | | | 1.63 | | | | (0.79 | ) | | | 1.50 | | | | 2.76 | | | | (6.43 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.20 | ) | | | (0.48 | ) | | | (0.21 | ) | | | (0.78 | ) | | | (0.37 | ) | | | (0.30 | ) |
From capital gains | | | — | | | | — | | | | (0.78 | ) | | | — | | | | — | | | | (0.34 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.20 | ) | | | (0.48 | ) | | | (0.99 | ) | | | (0.78 | ) | | | (0.37 | ) | | | (0.64 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.25 | | | | 1.15 | | | | (1.78 | ) | | | 0.72 | | | | 2.39 | | | | (7.07 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 14.34 | | | $ | 14.09 | | | $ | 12.94 | | | $ | 14.72 | | | $ | 14.00 | | | $ | 11.61 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 3.22 | %(d) | | | 12.73 | % | | | (5.39 | )% | | | 10.79 | % | | | 24.04 | % | | | (35.05 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 12,535 | | | $ | 13,631 | | | $ | 24,550 | | | $ | 44,027 | | | $ | 50,952 | | | $ | 39,210 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including expense paid directly by the advisor | | | 2.64 | %(e) | | | 2.85 | % | | | 1.28 | % | | | 5.06 | % | | | 2.95 | % | | | 1.35 | % |
Operating expenses including expense paid directly by the advisor(f) | | | 0.34 | %(e) | | | 0.26 | % | | | 0.21 | % | | | 0.18 | % | | | 0.18 | % | | | 0.20 | % |
Net investment income excluding expense paid directly by the advisor | | | 2.54 | %(e) | | | 2.73 | % | | | 1.14 | % | | | 4.92 | % | | | 2.85 | % | | | 1.35 | % |
Operating expenses excluding expense paid directly by the advisor(f) | | | 0.44 | %(e) | | | 0.38 | % | | | 0.35 | % | | | 0.32 | % | | | 0.28 | % | | | 0.20 | % |
Portfolio Turnover Rate | | | 41 | %(d) | | | 89 | % | | | 84 | % | | | 70 | % | | | 32 | % | | | 31 | % |
(a) The information provided below for the fiscal years ended December 31, 2009 and after have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The information for prior periods has been audited by predecessor independent registered public accounting firms.
(b) Prior to May 1, 2010, the Forward Growth Allocation Fund was known as the Accessor Growth Allocation Fund.
(c) Per share amounts are based upon average shares outstanding.
(d) Not Annualized.
(e) Annualized.
(f) Excludes expenses of the affiliated funds in which the Fund invests.
| | | | |
| June 30, 2013 | | 108 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Growth Allocation Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A(a) | |
| | | Six Months Ended June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(b) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 14.08 | | | $ | 12.94 | | | $ | 14.72 | | | $ | 13.99 | | | $ | 11.61 | | | $ | 18.67 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.17 | | | | 0.38 | | | | 0.17 | | | | 0.66 | | | | 0.31 | | | | 0.15 | |
Net realized and unrealized gain/(loss) on investments | | | 0.26 | | | | 1.19 | | | | (1.01 | ) | | | 0.80 | | | | 2.40 | | | | (6.62 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.43 | | | | 1.57 | | | | (0.84 | ) | | | 1.46 | | | | 2.71 | | | | (6.47 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.18 | ) | | | (0.43 | ) | | | (0.16 | ) | | | (0.73 | ) | | | (0.33 | ) | | | (0.25 | ) |
From capital gains | | | — | | | | — | | | | (0.78 | ) | | | — | | | | — | | | | (0.34 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.18 | ) | | | (0.43 | ) | | | (0.94 | ) | | | (0.73 | ) | | | (0.33 | ) | | | (0.59 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.25 | | | | 1.14 | | | | (1.78 | ) | | | 0.73 | | | | 2.38 | | | | (7.06 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 14.33 | | | $ | 14.08 | | | $ | 12.94 | | | $ | 14.72 | | | $ | 13.99 | | | $ | 11.61 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(d) | | | 3.05 | %(e) | | | 12.25 | % | | | (5.73 | )% | | | 10.48 | % | | | 23.53 | % | | | (35.25 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 10,129 | | | $ | 10,553 | | | $ | 12,709 | | | $ | 17,670 | | | $ | 20,268 | | | $ | 17,808 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including expense paid directly by the advisor | | | 2.31 | %(f) | | | 2.78 | % | | | 1.14 | % | | | 4.61 | % | | | 2.52 | % | | | 0.99 | % |
Operating expenses including expense paid directly by the advisor(g) | | | 0.69 | %(f) | | | 0.61 | % | | | 0.56 | % | | | 0.53 | % | | | 0.53 | % | | | 0.55 | % |
Net investment income excluding expense paid directly by the advisor | | | 2.21 | %(f) | | | 2.67 | % | | | 1.00 | % | | | 4.47 | % | | | 2.42 | % | | | 0.99 | % |
Operating expenses excluding expense paid directly by the advisor(g) | | | 0.79 | %(f) | | | 0.72 | % | | | 0.70 | % | | | 0.67 | % | | | 0.63 | % | | | 0.55 | % |
Portfolio Turnover Rate | | | 41 | %(e) | | | 89 | % | | | 84 | % | | | 70 | % | | | 32 | % | | | 31 | % |
(a) The information provided below for the fiscal years ended December 31, 2009 and after have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The information for prior periods has been audited by predecessor independent registered public accounting firms.
(b) Prior to May 1, 2010, the Forward Growth Allocation Fund Class A was known as the Accessor Growth Allocation Fund A Class.
(c) Per share amounts are based upon average shares outstanding.
(d) Total return does not reflect the effect of sales charges.
(e) Not Annualized.
(f) Annualized.
(g) Excludes expenses of the affiliated funds in which the Fund invests.
| | | | |
| See Notes to Financial Statements | | 109 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Growth Allocation Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class C(a) | |
| | | Six Months Ended June 30, 2013
(unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(b) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 13.96 | | | $ | 12.83 | | | $ | 14.63 | | | $ | 13.92 | | | $ | 11.55 | | | $ | 18.57 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.12 | | | | 0.27 | | | | 0.07 | | | | 0.56 | | | | 0.23 | | | | 0.05 | |
Net realized and unrealized gain/(loss) on investments | | | 0.26 | | | | 1.21 | | | | (0.99 | ) | | | 0.78 | | | | 2.39 | | | | (6.58 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.38 | | | | 1.48 | | | | (0.92 | ) | | | 1.34 | | | | 2.62 | | | | (6.53 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.13 | ) | | | (0.35 | ) | | | (0.10 | ) | | | (0.63 | ) | | | (0.25 | ) | | | (0.15 | ) |
From capital gains | | | — | | | | — | | | | (0.78 | ) | | | — | | | | — | | | | (0.34 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.13 | ) | | | (0.35 | ) | | | (0.88 | ) | | | (0.63 | ) | | | (0.25 | ) | | | (0.49 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.25 | | | | 1.13 | | | | (1.80 | ) | | | 0.71 | | | | 2.37 | | | | (7.02 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 14.21 | | | $ | 13.96 | | | $ | 12.83 | | | $ | 14.63 | | | $ | 13.92 | | | $ | 11.55 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(d) | | | 2.72 | %(e) | | | 11.57 | % | | | (6.31 | )% | | | 9.67 | % | | | 22.79 | % | | | (35.66 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 11,815 | | | $ | 14,018 | | | $ | 20,321 | | | $ | 27,871 | | | $ | 30,775 | | | $ | 26,814 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including expense paid directly by the advisor | | | 1.59 | %(f) | | | 2.00 | % | | | 0.50 | % | | | 3.97 | % | | | 1.88 | % | | | 0.34 | % |
Operating expenses including expense paid directly by the advisor(g) | | | 1.34 | %(f) | | | 1.26 | % | | | 1.21 | % | | | 1.18 | % | | | 1.18 | % | | | 1.20 | % |
Net investment income excluding expense paid directly by the advisor | | | 1.49 | %(f) | | | 1.89 | % | | | 0.36 | % | | | 3.83 | % | | | 1.78 | % | | | 0.34 | % |
Operating expenses excluding expense paid directly by the advisor(g) | | | 1.44 | %(f) | | | 1.37 | % | | | 1.35 | % | | | 1.32 | % | | | 1.28 | % | | | 1.20 | % |
Portfolio Turnover Rate | | | 41 | %(e) | | | 89 | % | | | 84 | % | | | 70 | % | | | 32 | % | | | 31 | % |
(a) The information provided below for the fiscal years ended December 31, 2009 and after have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The information for prior periods has been audited by predecessor independent registered public accounting firms.
(b) Prior to May 1, 2010, the Forward Growth Allocation Fund Class C was known as the Accessor Growth Allocation Fund C Class.
(c) Per share amounts are based upon average shares outstanding.
(d) Total return does not reflect the effect of sales charges.
(e) Not Annualized.
(f) Annualized.
(g) Excludes expenses of the affiliated funds in which the Fund invests.
| | | | |
| June 30, 2013 | | 110 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Income & Growth Allocation Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Investor Class(a) | |
| | | Six Months Ended June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(b) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 15.24 | | | $ | 14.26 | | | $ | 14.93 | | | $ | 14.39 | | | $ | 12.60 | | | $ | 16.21 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.17 | | | | 0.35 | | | | 0.41 | | | | 0.58 | | | | 0.45 | | | | 0.44 | |
Net realized and unrealized gain/(loss) on investments | | | (0.15 | ) | | | 1.05 | | | | (0.58 | ) | | | 0.55 | | | | 1.80 | | | | (3.47 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.02 | | | | 1.40 | | | | (0.17 | ) | | | 1.13 | | | | 2.25 | | | | (3.03 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.18 | ) | | | (0.42 | ) | | | (0.45 | ) | | | (0.59 | ) | | | (0.46 | ) | | | (0.49 | ) |
From capital gains | | | — | | | | — | | | | (0.05 | ) | | | (0.00 | )(d) | | | — | | | | (0.09 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.18 | ) | | | (0.42 | ) | | | (0.50 | ) | | | (0.59 | ) | | | (0.46 | ) | | | (0.58 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.16 | ) | | | 0.98 | | | | (0.67 | ) | | | 0.54 | | | | 1.79 | | | | (3.61 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 15.08 | | | $ | 15.24 | | | $ | 14.26 | | | $ | 14.93 | | | $ | 14.39 | | | $ | 12.60 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 0.10 | %(e) | | | 9.88 | % | | | (1.17 | )% | | | 7.96 | % | | | 18.08 | % | | | (18.97 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 1,014 | | | $ | 1,224 | | | $ | 2,918 | | | $ | 4,821 | | | $ | 4,725 | | | $ | 3,445 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including expense paid directly by the advisor | | | 2.23 | %(f) | | | 2.33 | % | | | 2.73 | % | | | 3.96 | % | | | 3.40 | % | | | 3.00 | % |
Operating expenses including expense paid directly by the advisor(g) | | | 0.86 | %(f) | | | 0.69 | % | | | 0.68 | % | | | 0.69 | % | | | 0.75 | % | | | 0.78 | % |
Net investment income excluding expense paid directly by the advisor | | | 2.13 | %(f) | | | 2.23 | % | | | 2.63 | % | | | 3.86 | % | | | 3.32 | % | | | 3.00 | % |
Operating expenses excluding expense paid directly by the advisor(g) | | | 0.96 | %(f) | | | 0.79 | % | | | 0.78 | % | | | 0.79 | % | | | 0.83 | % | | | 0.78 | % |
Portfolio Turnover Rate | | | 10 | %(e) | | | 83 | % | | | 95 | % | | | 53 | % | | | 25 | % | | | 20 | % |
(a) The information provided below for the fiscal years ended December 31, 2009 and after have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The information for prior periods has been audited by predecessor independent registered public accounting firms.
(b) Prior to May 1, 2010 the Forward Income & Growth Fund was known as the Accessor Income & Growth Allocation Fund.
(c) Per share amounts are based upon average shares outstanding.
(d) Amount represents less than $0.01 per share.
(e) Not Annualized.
(f) Annualized.
(g) Excludes expenses of the affiliated funds in which the Fund invests.
| | | | |
| See Notes to Financial Statements | | 111 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Income & Growth Allocation Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class(a) | |
| | | Six Months Ended June 30, 2013
(unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(b) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 15.25 | | | $ | 14.27 | | | $ | 14.94 | | | $ | 14.41 | | | $ | 12.61 | | | $ | 16.22 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.17 | | | | 0.50 | | | | 0.54 | | | | 0.68 | | | | 0.52 | | | | 0.52 | |
Net realized and unrealized gain/(loss) on investments | | | (0.12 | ) | | | 0.98 | | | | (0.63 | ) | | | 0.51 | | | | 1.80 | | | | (3.47 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.05 | | | | 1.48 | | | | (0.09 | ) | | | 1.19 | | | | 2.32 | | | | (2.95 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.22 | ) | | | (0.50 | ) | | | (0.53 | ) | | | (0.66 | ) | | | (0.52 | ) | | | (0.57 | ) |
From capital gains | | | — | | | | — | | | | (0.05 | ) | | | (0.00 | )(d) | | | — | | | | (0.09 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.22 | ) | | | (0.50 | ) | | | (0.58 | ) | | | (0.66 | ) | | | (0.52 | ) | | | (0.66 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.17 | ) | | | 0.98 | | | | (0.67 | ) | | | 0.53 | | | | 1.80 | | | | (3.61 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 15.08 | | | $ | 15.25 | | | $ | 14.27 | | | $ | 14.94 | | | $ | 14.41 | | | $ | 12.61 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 0.28 | %(e) | | | 10.45 | % | | | (0.66 | )% | | | 8.42 | % | | | 18.83 | % | | | (18.61 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 16,482 | | | $ | 59,663 | | | $ | 54,211 | | | $ | 49,947 | | | $ | 40,855 | | | $ | 24,869 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including expense paid directly by the advisor | | | 2.26 | %(f) | | | 3.32 | % | | | 3.64 | % | | | 4.60 | % | | | 3.90 | % | | | 3.63 | % |
Operating expenses including expense paid directly by the advisor(g) | | | 0.30 | %(f) | | | 0.19 | % | | | 0.18 | % | | | 0.19 | % | | | 0.25 | % | | | 0.29 | % |
Net investment income excluding expense paid directly by the advisor | | | 2.16 | %(f) | | | 3.22 | % | | | 3.53 | % | | | 4.50 | % | | | 3.82 | % | | | 3.63 | % |
Operating expenses excluding expense paid directly by the advisor(g) | | | 0.40 | %(f) | | | 0.29 | % | | | 0.29 | % | | | 0.29 | % | | | 0.33 | % | | | 0.29 | % |
Portfolio Turnover Rate | | | 10 | %(e) | | | 83 | % | | | 95 | % | | | 53 | % | | | 25 | % | | | 20 | % |
(a) The information provided below for the fiscal years ended December 31, 2009 and after have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The information for prior periods has been audited by predecessor independent registered public accounting firms.
(b) Prior to May 1, 2010 the Forward Income & Growth Fund was known as the Accessor Income & Growth Allocation Fund.
(c) Per share amounts are based upon average shares outstanding.
(d) Amount represents less than $0.01 per share.
(e) Not Annualized.
(f) Annualized.
(g) Excludes expenses of the affiliated funds in which the Fund invests.
| | | | |
| June 30, 2013 | | 112 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Income & Growth Allocation Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A(a) | |
| | | Six Months Ended June 30, 2013
(unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(b) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 15.23 | | | $ | 14.25 | | | $ | 14.92 | | | $ | 14.39 | | | $ | 12.60 | | | $ | 16.20 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.18 | | | | 0.43 | | | | 0.42 | | | | 0.58 | | | | 0.46 | | | | 0.48 | |
Net realized and unrealized gain/(loss) on investments | | | (0.15 | ) | | | 0.99 | | | | (0.57 | ) | | | 0.56 | | | | 1.81 | | | | (3.48 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.03 | | | | 1.42 | | | | (0.15 | ) | | | 1.14 | | | | 2.27 | | | | (3.00 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.19 | ) | | | (0.44 | ) | | | (0.47 | ) | | | (0.61 | ) | | | (0.48 | ) | | | (0.51 | ) |
From capital gains | | | — | | | | — | | | | (0.05 | ) | | | (0.00 | )(d) | | | — | | | | (0.09 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.19 | ) | | | (0.44 | ) | | | (0.52 | ) | | | (0.61 | ) | | | (0.48 | ) | | | (0.60 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.16 | ) | | | 0.98 | | | | (0.67 | ) | | | 0.53 | | | | 1.79 | | | | (3.60 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 15.07 | | | $ | 15.23 | | | $ | 14.25 | | | $ | 14.92 | | | $ | 14.39 | | | $ | 12.60 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(e) | | | 0.18 | %(f) | | | 10.07 | % | | | (1.02 | )% | | | 8.05 | % | | | 18.35 | % | | | (18.86 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 1,056 | | | $ | 1,085 | | | $ | 1,206 | | | $ | 2,745 | | | $ | 3,118 | | | $ | 2,590 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including expense paid directly by the advisor | | | 2.41 | %(g) | | | 2.88 | % | | | 2.80 | % | | | 3.96 | % | | | 3.48 | % | | | 3.28 | % |
Operating expenses including expense paid directly by the advisor(h) | | | 0.72 | %(g) | | | 0.54 | % | | | 0.53 | % | | | 0.53 | % | | | 0.61 | % | | | 0.63 | % |
Net investment income excluding expense paid directly by the advisor | | | 2.31 | %(g) | | | 2.78 | % | | | 2.70 | % | | | 3.85 | % | | | 3.41 | % | | | 3.28 | % |
Operating expenses excluding expense paid directly by the advisor(h) | | | 0.82 | %(g) | | | 0.64 | % | | | 0.63 | % | | | 0.64 | % | | | 0.68 | % | | | 0.63 | % |
Portfolio Turnover Rate | | | 10 | %(f) | | | 83 | % | | | 95 | % | | | 53 | % | | | 25 | % | | | 20 | % |
(a) The information provided below for the fiscal years ended December 31, 2009 and after have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The information for prior periods has been audited by predecessor independent registered public accounting firms.
(b) Prior to May 1, 2010 the Forward Income & Growth Fund Class A was known as the Accessor Income & Growth Allocation Fund A Class.
(c) Per share amounts are based upon average shares outstanding.
(d) Amount represents less than $0.01 per share.
(e) Total return does not reflect the effect of sales charges.
(f) Not Annualized.
(g) Annualized.
(h) Excludes expenses of the affiliated funds in which the Fund invests.
| | | | |
| See Notes to Financial Statements | | 113 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Income & Growth Allocation Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class C(a) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(b) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 15.18 | | | $ | 14.21 | | | $ | 14.88 | | | $ | 14.35 | | | $ | 12.57 | | | $ | 16.16 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.12 | | | | 0.32 | | | | 0.37 | | | | 0.50 | | | | 0.37 | | | | 0.38 | |
Net realized and unrealized gain/(loss) on investments | | | (0.13 | ) | | | 0.99 | | | | (0.61 | ) | | | 0.54 | | | | 1.80 | | | | (3.46 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.01 | ) | | | 1.31 | | | | (0.24 | ) | | | 1.04 | | | | 2.17 | | | | (3.08 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.14 | ) | | | (0.34 | ) | | | (0.38 | ) | | | (0.51 | ) | | | (0.39 | ) | | | (0.42 | ) |
From capital gains | | | — | | | | — | | | | (0.05 | ) | | | (0.00 | )(d) | | | — | | | | (0.09 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.14 | ) | | | (0.34 | ) | | | (0.43 | ) | | | (0.51 | ) | | | (0.39 | ) | | | (0.51 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.15 | ) | | | 0.97 | | | | (0.67 | ) | | | 0.53 | | | | 1.78 | | | | (3.59 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 15.03 | | | $ | 15.18 | | | $ | 14.21 | | | $ | 14.88 | | | $ | 14.35 | | | $ | 12.57 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(e) | | | (0.10 | )%(f) | | | 9.31 | % | | | (1.65 | )% | | | 7.37 | % | | | 17.54 | % | | | (19.38 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 2,237 | | | $ | 4,066 | | | $ | 5,597 | | | $ | 6,744 | | | $ | 6,387 | | | $ | 6,258 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including expense paid directly by the advisor | | | 1.58 | %(g) | | | 2.14 | % | | | 2.51 | % | | | 3.44 | % | | | 2.82 | % | | | 2.60 | % |
Operating expenses including expense paid directly by the advisor(h) | | | 1.35 | %(g) | | | 1.19 | % | | | 1.18 | % | | | 1.19 | % | | | 1.26 | % | | | 1.28 | % |
Net investment income excluding expense paid directly by the advisor | | | 1.48 | %(g) | | | 2.04 | % | | | 2.40 | % | | | 3.34 | % | | | 2.75 | % | | | 2.60 | % |
Operating expenses excluding expense paid directly by the advisor(h) | | | 1.45 | %(g) | | | 1.29 | % | | | 1.29 | % | | | 1.29 | % | | | 1.33 | % | | | 1.28 | % |
Portfolio Turnover Rate | | | 10 | %(f) | | | 83 | % | | | 95 | % | | | 53 | % | | | 25 | % | | | 20 | % |
(a) The information provided below for the fiscal years ended December 31, 2009 and after have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The information for prior periods has been audited by predecessor independent registered public accounting firms.
(b) Prior to May 1, 2010 the Forward Income & Growth Fund Class C was known as the Accessor Income & Growth Allocation Fund C Class.
(c) Per share amounts are based upon average shares outstanding.
(d) Amount represents less than $0.01 per share.
(e) Total return does not reflect the effect of sales charges.
(f) Not Annualized.
(g) Annualized.
(h) Excludes expenses of the affiliated funds in which the Fund invests.
| | | | |
| June 30, 2013 | | 114 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Income Builder Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Investor Class(a) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012(b) | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(c) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 15.33 | | | $ | 14.50 | | | $ | 14.39 | | | $ | 13.99 | | | $ | 12.76 | | | $ | 14.43 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(d) | | | 0.29 | | | | 0.67 | | | | 0.62 | | | | 0.50 | | | | 0.60 | | | | 0.63 | |
Net realized and unrealized gain/(loss) on investments | | | (0.19 | ) | | | 0.88 | | | | 0.12 | | | | 0.40 | | | | 1.23 | | | | (1.66 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.10 | | | | 1.55 | | | | 0.74 | | | | 0.90 | | | | 1.83 | | | | (1.03 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.29 | ) | | | (0.72 | ) | | | (0.63 | ) | | | (0.50 | ) | | | (0.60 | ) | | | (0.64 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.29 | ) | | | (0.72 | ) | | | (0.63 | ) | | | (0.50 | ) | | | (0.60 | ) | | | (0.64 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.19 | ) | | | 0.83 | | | | 0.11 | | | | 0.40 | | | | 1.23 | | | | (1.67 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 15.14 | | | $ | 15.33 | | | $ | 14.50 | | | $ | 14.39 | | | $ | 13.99 | | | $ | 12.76 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 0.60 | %(e) | | | 11.04 | % | | | 5.26 | % | | | 6.48 | % | | | 14.58 | % | | | (7.20 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 1,583 | | | $ | 1,381 | | | $ | 2,289 | | | $ | 2,423 | | | $ | 2,040 | | | $ | 2,035 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including waiver and expense paid directly by the advisor | | | 3.71 | %(f) | | | 4.53 | % | | | 4.30 | % | | | 3.51 | % | | | 4.45 | % | | | 4.62 | % |
Operating expenses including waiver and expense paid directly by the advisor(g) | | | 0.98 | %(f)(h) | | | 1.07 | % | | | 0.97 | % | | | 0.91 | % | | | 0.97 | % | | | 0.95 | % |
Net investment income excluding waiver and expense paid directly by the advisor | | | 3.62 | %(f) | | | 4.43 | % | | | 4.19 | % | | | 3.39 | % | | | 4.37 | % | | | 4.62 | % |
Operating expenses excluding waiver and expense paid directly by the advisor(g) | | | 1.07 | %(f) | | | 1.17 | % | | | 1.08 | % | | | 1.02 | % | | | 1.05 | % | | | 0.95 | % |
Portfolio Turnover Rate | | | 52 | %(e) | | | 135 | % | | | 38 | % | | | 33 | % | | | 27 | % | | | 46 | % |
(a) The information provided below for the fiscal years ended December 31, 2009 and after have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The information for prior periods has been audited by predecessor independent registered public accounting firms.
(b) Prior to May 1, 2012, the Forward Income Builder Fund was known as the Forward Income Allocation Fund.
(c) Prior to May 1, 2010, the Forward Income Allocation Fund was known as the Accessor Income Allocation Fund.
(d) Per share amounts are based upon average shares outstanding.
(e) Not Annualized.
(f) Annualized.
(g) Excludes expenses of the affiliated funds in which the Fund invests.
(h) Effective May 1, 2013, the Advisor agreed to limit expenses at 0.99%.
| | | | |
| See Notes to Financial Statements | | 115 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Income Builder Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class(a) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012(b) | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(c) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 15.35 | | | $ | 14.51 | | | $ | 14.40 | | | $ | 14.00 | | | $ | 12.77 | | | $ | 14.45 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(d) | | | 0.34 | | | | 0.75 | | | | 0.70 | | | | 0.57 | | | | 0.66 | | | | 0.69 | |
Net realized and unrealized gain/(loss) on investments | | | (0.20 | ) | | | 0.89 | | | | 0.12 | | | | 0.40 | | | | 1.24 | | | | (1.66 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.14 | | | | 1.64 | | | | 0.82 | | | | 0.97 | | | | 1.90 | | | | (0.97 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.33 | ) | | | (0.80 | ) | | | (0.71 | ) | | | (0.57 | ) | | | (0.67 | ) | | | (0.71 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.33 | ) | | | (0.80 | ) | | | (0.71 | ) | | | (0.57 | ) | | | (0.67 | ) | | | (0.71 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.19 | ) | | | 0.84 | | | | 0.11 | | | | 0.40 | | | | 1.23 | | | | (1.68 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 15.16 | | | $ | 15.35 | | | $ | 14.51 | | | $ | 14.40 | | | $ | 14.00 | | | $ | 12.77 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 0.86 | %(e) | | | 11.59 | % | | | 5.79 | % | | | 7.01 | % | | | 15.14 | % | | | (6.79 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 10,570 | | | $ | 9,497 | | | $ | 11,545 | | | $ | 14,772 | | | $ | 13,880 | | | $ | 10,464 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including waiver and expense paid directly by the advisor | | | 4.36 | %(f) | | | 5.06 | % | | | 4.81 | % | | | 3.98 | % | | | 4.91 | % | | | 5.09 | % |
Operating expenses including waiver and expense paid directly by the advisor(g) | | | 0.48 | %(f)(h) | | | 0.57 | % | | | 0.47 | % | | | 0.40 | % | | | 0.46 | % | | | 0.46 | % |
Net investment income excluding waiver and expense paid directly by the advisor | | | 4.26 | %(f) | | | 4.96 | % | | | 4.69 | % | | | 3.86 | % | | | 4.83 | % | | | 5.09 | % |
Operating expenses excluding waiver and expense paid directly by the advisor(g) | | | 0.58 | %(f) | | | 0.67 | % | | | 0.59 | % | | | 0.52 | % | | | 0.55 | % | | | 0.46 | % |
Portfolio Turnover Rate | | | 52 | %(e) | | | 135 | % | | | 38 | % | | | 33 | % | | | 27 | % | | | 46 | % |
(a) The information provided below for the fiscal years ended December 31, 2009 and after have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The information for prior periods has been audited by predecessor independent registered public accounting firms.
(b) Prior to May 1, 2012, the Forward Income Builder Fund was known as the Forward Income Allocation Fund.
(c) Prior to May 1, 2010, the Forward Income Allocation Fund was known as the Accessor Income Allocation Fund.
(d) Per share amounts are based upon average shares outstanding.
(e) Not Annualized.
(f) Annualized.
(g) Excludes expenses of the affiliated funds in which the Fund invests.
(h) Effective May 1, 2013, the Advisor agreed to limit expenses at 0.49%.
| | | | |
| June 30, 2013 | | 116 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Income Builder Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A(a) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012(b) | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(c) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 15.34 | | | $ | 14.51 | | | $ | 14.39 | | | $ | 13.99 | | | $ | 12.77 | | | $ | 14.44 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(d) | | | 0.44 | | | | 0.85 | | | | 0.66 | | | | 0.54 | | | | 0.63 | | | | 0.69 | |
Net realized and unrealized gain/(loss) on investments | | | (0.32 | ) | | | 0.74 | | | | 0.13 | | | | 0.39 | | | | 1.22 | | | | (1.68 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.12 | | | | 1.59 | | | | 0.79 | | | | 0.93 | | | | 1.85 | | | | (0.99 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.31 | ) | | | (0.76 | ) | | | (0.67 | ) | | | (0.53 | ) | | | (0.63 | ) | | | (0.68 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.31 | ) | | | (0.76 | ) | | | (0.67 | ) | | | (0.53 | ) | | | (0.63 | ) | | | (0.68 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.19 | ) | | | 0.83 | | | | 0.12 | | | | 0.40 | | | | 1.22 | | | | (1.67 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 15.15 | | | $ | 15.34 | | | $ | 14.51 | | | $ | 14.39 | | | $ | 13.99 | | | $ | 12.77 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(e) | | | 0.77 | %(f) | | | 11.25 | % | | | 5.59 | % | | | 6.75 | % | | | 14.86 | % | | | (7.03 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 3,300 | | | $ | 693 | | �� | $ | 274 | | | $ | 830 | | | $ | 726 | | | $ | 997 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including waiver and expense paid directly by the advisor | | | 5.71 | %(g) | | | 5.73 | % | | | 4.50 | % | | | 3.79 | % | | | 4.69 | % | | | 5.03 | % |
Operating expenses including waiver and expense paid directly by the advisor(h) | | | 0.73 | %(g)(i) | | | 0.77 | % | | | 0.70 | % | | | 0.66 | % | | | 0.71 | % | | | 0.71 | % |
Net investment income excluding waiver and expense paid directly by the advisor | | | 5.62 | %(g) | | | 5.62 | % | | | 4.38 | % | | | 3.67 | % | | | 4.62 | % | | | 5.03 | % |
Operating expenses excluding waiver and expense paid directly by the advisor(h) | | | 0.82 | %(g) | | | 0.88 | % | | | 0.82 | % | | | 0.77 | % | | | 0.79 | % | | | 0.71 | % |
Portfolio Turnover Rate | | | 52 | %(f) | | | 135 | % | | | 38 | % | | | 33 | % | | | 27 | % | | | 46 | % |
(a) The information provided below for the fiscal years ended December 31, 2009 and after have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The information for prior periods has been audited by predecessor independent registered public accounting firms.
(b) Prior to May 1, 2012, the Forward Income Builder Fund was known as the Forward Income Allocation Fund.
(c) Prior to May 1, 2010, the Forward Income Allocation Fund Class A was known as the Accessor Income Allocation Fund A Class.
(d) Per share amounts are based upon average shares outstanding.
(e) Total return does not reflect the effect of sales charges.
(f) Not Annualized.
(g) Annualized.
(h) Excludes expenses of the affiliated funds in which the Fund invests.
(i) Effective May 1, 2013, the Advisor agreed to limit expenses at 0.74%.
| | | | |
| See Notes to Financial Statements | | 117 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Income Builder Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class C(a) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012(b) | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(c) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 15.30 | | | $ | 14.47 | | | $ | 14.36 | | | $ | 13.96 | | | $ | 12.74 | | | $ | 14.41 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(d) | | | 0.25 | | | | 0.62 | | | | 0.57 | | | | 0.43 | | | | 0.54 | | | | 0.57 | |
Net realized and unrealized gain/(loss) on investments | | | (0.19 | ) | | | 0.86 | | | | 0.10 | | | | 0.40 | | | | 1.21 | | | | (1.67 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.06 | | | | 1.48 | | | | 0.67 | | | | 0.83 | | | | 1.75 | | | | (1.10 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.26 | ) | | | (0.65 | ) | | | (0.56 | ) | | | (0.43 | ) | | | (0.53 | ) | | | (0.57 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.26 | ) | | | (0.65 | ) | | | (0.56 | ) | | | (0.43 | ) | | | (0.53 | ) | | | (0.57 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.20 | ) | | | 0.83 | | | | 0.11 | | | | 0.40 | | | | 1.22 | | | | (1.67 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 15.10 | | | $ | 15.30 | | | $ | 14.47 | | | $ | 14.36 | | | $ | 13.96 | | | $ | 12.74 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(e) | | | 0.40 | %(f) | | | 10.45 | % | | | 4.76 | % | | | 5.97 | % | | | 13.97 | % | | | (7.68 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 5,698 | | | $ | 5,775 | | | $ | 5,354 | | | $ | 4,653 | | | $ | 3,839 | | | $ | 2,474 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including waiver and expense paid directly by the advisor | | | 3.20 | %(g) | | | 4.22 | % | | | 3.95 | % | | | 3.02 | % | | | 3.99 | % | | | 4.18 | % |
Operating expenses including waiver and expense paid directly by the advisor(h) | | | 1.48 | %(g)(i) | | | 1.56 | % | | | 1.48 | % | | | 1.41 | % | | | 1.47 | % | | | 1.46 | % |
Net investment income excluding waiver and expense paid directly by the advisor | | | 3.10 | %(g) | | | 4.12 | % | | | 3.83 | % | | | 2.91 | % | | | 3.91 | % | | | 4.18 | % |
Operating expenses excluding waiver and expense paid directly by the advisor(h) | | | 1.58 | %(g) | | | 1.66 | % | | | 1.60 | % | | | 1.52 | % | | | 1.55 | % | | | 1.46 | % |
Portfolio Turnover Rate | | | 52 | %(f) | | | 135 | % | | | 38 | % | | | 33 | % | | | 27 | % | | | 46 | % |
(a) The information provided below for the fiscal years ended December 31, 2009 and after have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The information for prior periods has been audited by predecessor independent registered public accounting firms.
(b) Prior to May 1, 2012, the Forward Income Builder Fund was known as the Forward Income Allocation Fund.
(c) Prior to May 1, 2010, the Forward Income Allocation Fund Class C was known as the Accessor Income Allocation Fund C Class.
(d) Per share amounts are based upon average shares outstanding.
(e) Total return does not reflect the effect of sales charges.
(f) Not Annualized.
(g) Annualized.
(h) Excludes expenses of the affiliated funds in which the Fund invests.
(i) Effective May 1, 2013, the Advisor agreed to limit expenses at 1.49%.
| | | | |
| June 30, 2013 | | 118 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Multi-Strategy Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Investor Class(a) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012(b) | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(c) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 13.95 | | | $ | 12.54 | | | $ | 14.01 | | | $ | 13.38 | | | $ | 10.93 | | | $ | 19.06 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(d) | | | 0.04 | | | | 0.37 | | | | 0.03 | | | | 0.61 | | | | 0.19 | | | | (0.01 | ) |
Net realized and unrealized gain/(loss) on investments | | | 0.23 | | | | 1.49 | | | | (1.12 | ) | | | 0.64 | | | | 2.50 | | | | (7.64 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.27 | | | | 1.86 | | | | (1.09 | ) | | | 1.25 | | | | 2.69 | | | | (7.65 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.07 | ) | | | (0.45 | ) | | | (0.05 | ) | | | (0.62 | ) | | | (0.24 | ) | | | (0.11 | ) |
From capital gains | | | — | | | | — | | | | (0.33 | ) | | | — | | | | — | | | | (0.37 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.07 | ) | | | (0.45 | ) | | | (0.38 | ) | | | (0.62 | ) | | | (0.24 | ) | | | (0.48 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.20 | | | | 1.41 | | | | (1.47 | ) | | | 0.63 | | | | 2.45 | | | | (8.13 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 14.15 | | | $ | 13.95 | | | $ | 12.54 | | | $ | 14.01 | | | $ | 13.38 | | | $ | 10.93 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 1.84 | %(e) | | | 15.05 | % | | | (7.72 | )% | | | 9.28 | % | | | 24.67 | % | | | (40.77 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 2,320 | | | $ | 3,009 | | | $ | 4,800 | | | $ | 7,995 | | | $ | 7,255 | | | $ | 6,920 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) including expense paid directly by the advisor | | | 0.59 | %(f) | | | 2.74 | % | | | 0.20 | % | | | 4.52 | % | | | 1.61 | % | | | (0.09 | )% |
Operating expenses including expense paid directly by the advisor(g) | | | 1.23 | %(f) | | | 1.00 | % | | | 0.85 | % | | | 0.78 | % | | | 0.75 | % | | | 0.75 | % |
Net investment income/(loss) excluding expense paid directly by the advisor | | | 0.49 | %(f) | | | 2.62 | % | | | 0.06 | % | | | 4.38 | % | | | 1.51 | % | | | (0.09 | )% |
Operating expenses excluding expense paid directly by the advisor(g) | | | 1.33 | %(f) | | | 1.12 | % | | | 0.99 | % | | | 0.92 | % | | | 0.85 | % | | | 0.75 | % |
Portfolio Turnover Rate | | | 58 | %(e) | | | 93 | % | | | 104 | % | | | 84 | % | | | 40 | % | | | 30 | % |
(a) The information provided below for the fiscal years ended December 31, 2009 and after have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The information for prior periods has been audited by predecessor independent registered public accounting firms.
(b) Prior to December 3, 2012, the Forward Multi-Strategy Fund was known as the Forward Aggressive Growth Allocation Fund.
(c) Prior to May 1, 2010, the Forward Aggressive Growth Allocation Fund was known as the Accessor Aggressive Growth Allocation Fund.
(d) Per share amounts are based upon average shares outstanding.
(e) Not Annualized.
(f) Annualized.
(g) Excludes expenses of the affiliated funds in which the Fund invests.
| | | | |
| See Notes to Financial Statements | | 119 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Multi-Strategy Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class(a) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012(b) | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(c) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 14.43 | | | $ | 12.94 | | | $ | 14.39 | | | $ | 13.73 | | | $ | 11.20 | | | $ | 19.48 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(d) | | | 0.07 | | | | 0.42 | | | | 0.06 | | | | 0.63 | | | | 0.29 | | | | 0.07 | |
Net realized and unrealized gain/(loss) on investments | | | 0.24 | | | | 1.58 | | | | (1.10 | ) | | | 0.72 | | | | 2.53 | | | | (7.82 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.31 | | | | 2.00 | | | | (1.04 | ) | | | 1.35 | | | | 2.82 | | | | (7.75 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.10 | ) | | | (0.51 | ) | | | (0.08 | ) | | | (0.69 | ) | | | (0.29 | ) | | | (0.16 | ) |
From capital gains | | | — | | | | — | | | | (0.33 | ) | | | — | | | | — | | | | (0.37 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.10 | ) | | | (0.51 | ) | | | (0.41 | ) | | | (0.69 | ) | | | (0.29 | ) | | | (0.53 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.21 | | | | 1.49 | | | | (1.45 | ) | | | 0.66 | | | | 2.53 | | | | (8.28 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 14.64 | | | $ | 14.43 | | | $ | 12.94 | | | $ | 14.39 | | | $ | 13.73 | | | $ | 11.20 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 2.16 | %(e) | | | 15.59 | % | | | (7.21 | )% | | | 9.85 | % | | | 25.26 | % | | | (40.46 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 4,071 | | | $ | 6,562 | | | $ | 11,518 | | | $ | 30,007 | | | $ | 32,953 | | | $ | 25,415 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including expense paid directly by the advisor | | | 0.95 | %(f) | | | 3.03 | % | | | 0.42 | % | | | 4.57 | % | | | 2.40 | % | | | 0.44 | % |
Operating expenses including expense paid directly by the advisor(g) | | | 0.72 | %(f) | | | 0.50 | % | | | 0.33 | % | | | 0.27 | % | | | 0.26 | % | | | 0.25 | % |
Net investment income excluding expense paid directly by the advisor | | | 0.85 | %(f) | | | 2.91 | % | | | 0.27 | % | | | 4.43 | % | | | 2.30 | % | | | 0.44 | % |
Operating expenses excluding expense paid directly by the advisor(g) | | | 0.82 | %(f) | | | 0.62 | % | | | 0.48 | % | | | 0.41 | % | | | 0.36 | % | | | 0.25 | % |
Portfolio Turnover Rate | | | 58 | %(e) | | | 93 | % | | | 104 | % | | | 84 | % | | | 40 | % | | | 30 | % |
(a) The information provided below for the fiscal years ended December 31, 2009 and after have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The information for prior periods has been audited by predecessor independent registered public accounting firms.
(b) Prior to December 3, 2012, the Forward Multi-Strategy Fund was known as the Forward Aggressive Growth Allocation Fund.
(c) Prior to May 1, 2010, the Forward Aggressive Growth Allocation Fund was known as the Accessor Aggressive Growth Allocation Fund.
(d) Per share amounts are based upon average shares outstanding.
(e) Not Annualized.
(f) Annualized.
(g) Excludes expenses of the affiliated funds in which the Fund invests.
| | | | |
| June 30, 2013 | | 120 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Multi-Strategy Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A(a) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012(b) | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(c) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 14.22 | | | $ | 12.77 | | | $ | 14.23 | | | $ | 13.58 | | | $ | 11.09 | | | $ | 19.31 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(d) | | | 0.06 | | | | 0.44 | | | | 0.07 | | | | 0.54 | | | | 0.24 | | | | 0.02 | |
Net realized and unrealized gain/(loss) on investments | | | 0.23 | | | | 1.48 | | | | (1.14 | ) | | | 0.75 | | | | 2.51 | | | | (7.75 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.29 | | | | 1.92 | | | | (1.07 | ) | | | 1.29 | | | | 2.75 | | | | (7.73 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.08 | ) | | | (0.47 | ) | | | (0.06 | ) | | | (0.64 | ) | | | (0.26 | ) | | | (0.12 | ) |
From capital gains | | | — | | | | — | | | | (0.33 | ) | | | — | | | | — | | | | (0.37 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.08 | ) | | | (0.47 | ) | | | (0.39 | ) | | | (0.64 | ) | | | (0.26 | ) | | | (0.49 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.21 | | | | 1.45 | | | | (1.46 | ) | | | 0.65 | | | | 2.49 | | | | (8.22 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 14.43 | | | $ | 14.22 | | | $ | 12.77 | | | $ | 14.23 | | | $ | 13.58 | | | $ | 11.09 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(e) | | | 2.02 | %(f) | | | 15.17 | % | | | (7.54 | )% | | | 9.51 | % | | | 24.80 | % | | | (40.66 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 3,869 | | | $ | 4,150 | | | $ | 4,777 | | | $ | 7,600 | | | $ | 9,027 | | | $ | 7,587 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including expense paid directly by the advisor | | | 0.78 | %(g) | | | 3.18 | % | | | 0.48 | % | | | 3.92 | % | | | 2.01 | % | | | 0.11 | % |
Operating expenses including expense paid directly by the advisor(h) | | | 1.08 | %(g) | | | 0.85 | % | | | 0.70 | % | | | 0.62 | % | | | 0.61 | % | | | 0.60 | % |
Net investment income excluding expense paid directly by the advisor | | | 0.68 | %(g) | | | 3.06 | % | | | 0.34 | % | | | 3.78 | % | | | 1.90 | % | | | 0.11 | % |
Operating expenses excluding expense paid directly by the advisor(h) | | | 1.18 | %(g) | | | 0.97 | % | | | 0.84 | % | | | 0.76 | % | | | 0.71 | % | | | 0.60 | % |
Portfolio Turnover Rate | | | 58 | %(f) | | | 93 | % | | | 104 | % | | | 84 | % | | | 40 | % | | | 30 | % |
(a) The information provided below for the fiscal years ended December 31, 2009 and after have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The information for prior periods has been audited by predecessor independent registered public accounting firms.
(b) Prior to December 3, 2012, the Forward Multi-Strategy Fund was known as the Forward Aggressive Growth Allocation Fund.
(c) Prior to May 1, 2010, the Forward Aggressive Growth Allocation Fund Class A was known as the Accessor Aggressive Growth Allocation Fund A Class.
(d) Per share amounts are based upon average shares outstanding.
(e) Total return does not reflect the effect of sales charges.
(f) Not Annualized.
(g) Annualized.
(h) Excludes expenses of the affiliated funds in which the Fund invests.
| | | | |
| See Notes to Financial Statements | | 121 | | June 30, 2013 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Multi-Strategy Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class C(a) | |
| | | Six Months Ended
June 30, 2013
(Unaudited) | | | Year Ended
December 31,
2012(b) | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(c) | | | Year Ended
December 31,
2009 | | | Year Ended
December 31,
2008 | |
Net Asset Value, Beginning of Period | | $ | 13.58 | | | $ | 12.23 | | | $ | 13.71 | | | $ | 13.16 | | | $ | 10.78 | | | $ | 18.86 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(d) | | | 0.00 | (e) | | | 0.32 | | | | (0.00 | )(e) | | | 0.42 | | | | 0.15 | | | | (0.08 | ) |
Net realized and unrealized gain/(loss) on investments | | | 0.22 | | | | 1.44 | | | | (1.11 | ) | | | 0.73 | | | | 2.44 | | | | (7.55 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.22 | | | | 1.76 | | | | (1.11 | ) | | | 1.15 | | | | 2.59 | | | | (7.63 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.03 | ) | | | (0.41 | ) | | | (0.04 | ) | | | (0.60 | ) | | | (0.21 | ) | | | (0.08 | ) |
From capital gains | | | — | | | | — | | | | (0.33 | ) | | | — | | | | — | | | | (0.37 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.03 | ) | | | (0.41 | ) | | | (0.37 | ) | | | (0.60 | ) | | | (0.21 | ) | | | (0.45 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.19 | | | | 1.35 | | | | (1.48 | ) | | | 0.55 | | | | 2.38 | | | | (8.08 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 13.77 | | | $ | 13.58 | | | $ | 12.23 | | | $ | 13.71 | | | $ | 13.16 | | | $ | 10.78 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(f) | | | 1.61 | %(g) | | | 14.48 | % | | | (8.13 | )% | | | 8.81 | % | | | 23.95 | % | | | (41.05 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 2,659 | | | $ | 3,554 | | | $ | 4,394 | | | $ | 5,806 | | | $ | 7,086 | | | $ | 5,944 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) including expense paid directly by the advisor | | | 0.03 | %(h) | | | 2.43 | % | | | (0.00 | )%(i) | | | 3.16 | % | | | 1.36 | % | | | (0.56 | )% |
Operating expenses including expense paid directly by the advisor(j) | | | 1.73 | %(h) | | | 1.50 | % | | | 1.36 | % | | | 1.27 | % | | | 1.26 | % | | | 1.25 | % |
Net investment income/(loss) excluding expense paid directly by the advisor | | | (0.07 | )%(h) | | | 2.31 | % | | | (0.14 | )% | | | 3.02 | % | | | 1.25 | % | | | (0.56 | )% |
Operating expenses excluding expense paid directly by the advisor(j) | | | 1.83 | %(h) | | | 1.62 | % | | | 1.50 | % | | | 1.41 | % | | | 1.36 | % | | | 1.25 | % |
Portfolio Turnover Rate | | | 58 | %(g) | | | 93 | % | | | 104 | % | | | 84 | % | | | 40 | % | | | 30 | % |
(a) The information provided below for the fiscal years ended December 31, 2009 and after have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The information for prior periods has been audited by predecessor independent registered public accounting firms.
(b) Prior to December 3, 2012, the Forward Multi-Strategy Fund was known as the Forward Aggressive Growth Allocation Fund.
(c) Prior to May 1, 2010, the Forward Aggressive Growth Allocation Fund Class C was known as the Accessor Aggressive Growth Allocation Fund C Class.
(d) Per share amounts are based upon average shares outstanding.
(e) Amount represents less than $0.01 per share.
(f) Total return does not reflect the effect of sales charges.
(g) Not Annualized.
(h) Annualized.
(i) Amount represents less than 0.01%.
(j) Excludes expenses of the affiliated funds in which the Fund invests.
| | | | |
| June 30, 2013 | | 122 | | See Notes to Financial Statements |
Notes to Financial Statements (Unaudited)
1. Organization
Forward Funds (the “Trust”), a Delaware statutory trust, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of June 30, 2013, the Trust has 32 registered funds. This annual report describes 11 funds offered by the Trust (each a “Fund” and, collectively, the “Funds”). The accompanying financial statements and financial highlights are those of the Forward Frontier Strategy Fund (“Frontier Strategy Fund”), the Forward High Yield Bond Fund (“High Yield Bond Fund”), the Forward Investment Grade Fixed-Income Fund (“Investment Grade Fixed-Income Fund”), the Forward Total MarketPlus Fund (“Total MarketPlus Fund”) (prior to May 1, 2013, known as the Forward Extended MarketPlus Fund), and the Forward U.S. Government Money Fund (“U.S. Government Money Fund”). The Forward Balanced Allocation Fund (“Balanced Allocation Fund”), the Forward Growth & Income Allocation Fund (“Growth & Income Allocation Fund”), the Forward Growth Allocation Fund (“Growth Allocation Fund”), the Forward Income & Growth Allocation Fund (“Income & Growth Allocation Fund”), the Forward Income Builder Fund (“Income Builder Fund”), and the Forward Multi-Strategy Fund (“Multi-Strategy Fund”) (collectively, the “Allocation Funds”) are also included in the accompanying financial statements and financial highlights.
The Frontier Strategy Fund seeks capital growth and invests primarily in securities with exposure to the returns of frontier markets (i.e., markets of smaller, less accessible, but still investable, countries of the developing world) and will primarily invest directly or indirectly in Structured Products, exchange-traded funds (“ETFs”), exchange-traded notes (“ETNs”), depositary receipts, and securities of companies in frontier market countries to obtain such exposure. The High Yield Bond Fund seeks high current income and invests primarily in lower-rated bonds. The Investment Grade Fixed-Income Fund seeks generation of current income and invests primarily in investment-grade debt securities or synthetics or other instruments (i.e., options, swaps including credit default swaps, forwards including currency forwards, and futures) that have similar economic characteristics to investment-grade debt securities. The Total MarketPlus Fund seeks capital growth and invests in synthetics or other instruments (i.e., swaps, structured notes, futures and options) that have similar economic characteristics to common stocks of all capitalization issuers, such as those in the Fund’s benchmark, the Russell 3000 Index, and may invest a significant portion of its assets in fixed-income instruments. The U.S. Government Money Fund seeks maximum current income consistent with the preservation of principal and liquidity and invests primarily in obligations issued or guaranteed by the U.S. Government, its agencies, instrumentalities or sponsored enterprises, or in repurchase agreements secured by such instruments. The Balanced Allocation Fund is a “fund of funds” that seeks moderate current income and some potential capital appreciation and invests primarily in a combination of other Forward Funds, including the following types of funds: U.S. equity, frontier and emerging market, international equity, U.S. fixed-income, international fixed-income, and money market. The
Growth & Income Allocation Fund is a “fund of funds” that seeks moderate potential capital appreciation and invests primarily in a combination of other Forward Funds, including the following types of funds: U.S. equity, frontier and emerging market, international equity, U.S. fixed-income, international fixed-income, and money market. The Growth Allocation Fund is a “fund of funds” that seeks high potential capital appreciation and invests primarily in a combination of other Forward Funds, including the following types of funds: U.S. equity, frontier and emerging market, international equity, U.S. fixed-income, international fixed-income, and money market. The Income & Growth Allocation Fund is a “fund of funds” that seeks high current income and some potential capital appreciation and invests primarily in a combination of other Forward Funds, including the following types of funds: U.S. fixed-income, international fixed-income, money market, U.S. equity, frontier and emerging market, and international equity. The Income Builder Fund is a “fund of funds” that seeks high current income and some stability of principal and invests primarily in a combination of other Forward Funds, including the following types of funds: U.S. fixed-income, international fixed-income, money market, U.S. equity, frontier and emerging market, global real estate, infrastructure, dividend-oriented strategies, preferred securities, and international equity. The Multi-Strategy Fund is a “fund of funds” that seeks high potential capital appreciation and invests primarily in a combination of other Forward Funds, including the following types of funds: U.S. equity, frontier and emerging market, international equity, U.S. fixed-income, international fixed-income, money market, long/short, tactical and other alternative investment strategies.
Information presented in the accompanying Funds’ financial statements pertains to the Investor Class, Institutional Class, Class A, Class C, Advisor Class and Class Z shares offered by the Trust.
All classes of shares have identical rights to earnings, assets and voting privileges, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes.
Certain Funds invest a high percentage of their assets in specific sectors of the market. As a result, the economic and regulatory developments in a particular sector of the market, positive or negative, can have a greater impact on the relevant Fund’s net asset value and may cause its shares to fluctuate more than if the Fund did not concentrate its investments in a particular sector. The Allocation Funds are “fund of funds” that primarily invest in a combination of other Forward Funds in the Trust (“Underlying Funds”) to gain exposure to a particular portion of the market rather than purchasing securities directly. Investments in the Underlying Funds expose the Allocation Funds to all of the risks of the Underlying Funds and, in general, indirectly subject the Allocation Funds to a pro rata portion of the Underlying Funds’ fees and expenses.
Notes to Financial Statements (Unaudited)
2. Significant Accounting Policies
The following is a summary of the significant accounting policies followed by the Funds and affiliated investment companies held by the Allocation Funds. These policies are in conformity with U.S. generally accepted accounting principles (“GAAP”). The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements during the reporting period. Management believes the estimates and security valuations are appropriate; however, actual results may differ from those estimates, and the security valuations reflected in the financial statements may differ from the value the Funds ultimately realize upon sale of the securities. The financial statements have been prepared as of the close of the New York Stock Exchange (“NYSE”) on June 30, 2013.
Portfolio Valuation: Portfolio securities or contracts that are listed or traded on a national securities exchange, contract market or over-the-counter market and that are freely transferable are valued at the last reported sale price or a market’s official closing price on the valuation day. If there have been no sales that day, such securities or contracts are valued at the average of the last reported bid and ask price on the valuation day for long positions or ask prices for short positions. If no bid or ask prices are quoted before closing, such securities or contracts are valued at either the last available sale price or at fair value in accordance with procedures established by, and under the general supervision of, the Board of Trustees.
Debt securities that have an original maturity date of more than 60 days or that are credit impaired for which market data is readily available, are valued on the basis of the average of the latest bid and ask price. Debt securities that mature in 60 days or less and that are not credit impaired, are valued at amortized cost, which approximates fair value, if their original maturity was 365 days or less, (unless the Board of Trustees determines that this method does not represent fair value).
Investments held by the U.S. Government Money Fund are valued using the amortized cost method of valuation permitted in accordance with meeting certain conditions and regulations set forth under Rule 2a-7 of the 1940 Act. Under the amortized cost method, an investment is valued at its cost on the date of purchase and thereafter assumes a constant amortization to maturity of any discount or premium, regardless of the impact of fluctuations in general market rates of interest on the value of the investment.
The Funds’ independent pricing vendors (approved by the Board of Trustees) use multiple valuation techniques to determine fair value. In instances where sufficient market activity exists, the pricing vendors may utilize a market-based approach through which quotes from market makers are used to determine market value. In instances where sufficient market activity may not exist or is limited, the pricing vendors may also utilize proprietary valuation models which may consider market characteristics such as benchmark yield curves, option-adjusted spreads, credit
spreads, estimated default rates, coupon rates, anticipated timing of principal repayments, underlying collateral, and other unique security features in order to estimate the relevant cash flows, which are then discounted to calculate the value.
In the event valuation information is not available from the Funds’ independent pricing vendors for a security held by a Fund, such security may be valued by alternate pricing methods, including the use of quotations obtained from dealers that make markets in such securities, or otherwise determined based on the fair value of such securities. Because long-term bonds and lower-rated bonds tend to be less liquid, their values may be determined based on alternate or fair valuation methods (approved by the Board of Trustees) more frequently than portfolio holdings that are more frequently traded or that have relatively higher credit ratings.
If the Funds’ independent pricing vendors do not provide valuation information for swap contracts or structured notes held by a Fund, such swap contracts and structured notes may be valued by Forward Management, LLC, the Investment Advisor of the Funds (the “Advisor” or “Forward Management”) based on information from the structuring firm or issuer.
Futures and options on futures contracts that are listed or traded on a national securities exchange, commodities exchange, contract market or comparable over-the-counter market and that are freely transferable are valued at their closing settlement price on the exchange on which they are primarily traded or based upon the current settlement price for a like instrument acquired on the day on which the instrument is being valued. A settlement price may not be used if the market makes a limit move with respect to a particular commodity. Over-the-counter futures and options on futures contracts for which market quotations are readily available are valued based on quotes received from independent pricing vendors or one or more dealers that make markets in such securities. If quotes are not available from an independent pricing vendor or dealers, over-the-counter futures and options on futures contracts are valued using fair valuation methodologies.
Options on securities and options on indices are valued using the last quoted sale price as of the close of the securities or commodities exchange on which they are traded. Certain investments including options may trade in the over-the- counter market and generally are valued based on quotes received from independent pricing vendors or one or more dealers that make markets in such securities.
Portfolio securities that are primarily traded on foreign securities exchanges are generally valued at the last reported sale or closing price of such securities on their respective exchanges, except when an occurrence subsequent to the time a value was so established is likely to have changed such value. In such an event, the fair value of those securities is determined in good faith through consideration of other factors in accordance with procedures established by, and under the general supervision of, the Board of Trustees. Certain Funds will use a fair valuation model provided by independent pricing vendors, which is intended to reflect fair value when a
Notes to Financial Statements (Unaudited)
security’s value is believed to have been materially affected by a valuation event that has occurred between the close of the exchange or market on which the security is traded and the close of the regular trading day of the NYSE. The Funds’ valuation procedures set forth certain triggers that instruct when to use the fair valuation model. The value assigned to a security by the fair valuation model is a determination of fair value made under the Funds’ valuation procedures and under the supervision of the Board of Trustees. In such a case, a Fund’s value for a security may be different from the last sales price (or the latest closing price) and there is no guarantee that a fair valued security will be sold at the price at which a Fund is valuing the security.
Forward currency exchange contracts have a market value determined by the prevailing foreign currency exchange daily rates and current foreign currency exchange forward rates. The foreign currency exchange forward rates are calculated using an automated system that estimates rates on the basis of the current day foreign currency exchange rates and forward foreign currency exchange rates supplied by a pricing vendor. Foreign exchange rates and forward foreign currency exchange rates may generally be obtained at the close of the NYSE, normally 4:00 p.m. Eastern Time.
Redeemable securities issued by open-end registered investment companies are valued at the investment company’s applicable net asset value, with the exception of exchange-traded open-end investment companies, which are priced as equity securities.
All other securities and other assets are carried at their fair value as determined in good faith using methodologies approved by the Board of Trustees. The valuation methodologies include, but are not limited to, the analysis of the effect of any restrictions on the sale of the security, product development and trends of the security’s issuer, changes in the industry and other competing companies, significant changes in the issuer’s financial position and any other event that could have a significant impact on the value of the security.
Securities Transactions and Investment Income: Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales of securities are determined by the identified cost method. Interest income, adjusted for accretion of discounts and amortization of premiums, is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date, except that certain dividends from foreign securities where the ex-dividend date may have passed are recorded as soon as a Fund is informed of such dividends in the exercise of reasonable diligence. If applicable, any foreign capital gains taxes are accrued, net of unrealized gains, and are payable upon the sale of such investments.
Foreign Currency Translation: The books and records of the Funds are maintained in U.S. dollars. Investment valuations and other assets and liabilities initially expressed in foreign currencies are converted each business day into U.S. dollars based upon
current exchange rates. Prevailing foreign exchange rates may generally be obtained at the close of the NYSE, normally 4:00 p.m. Eastern Time. The portion of realized and unrealized gains or losses on investments due to fluctuations in foreign currency exchange rates is not separately disclosed.
Collateralized Debt Obligations: Certain Funds may invest in collateralized debt obligations (“CDOs”), which include collateralized loan obligations (“CLOs”) and other similarly structured securities. CLOs are a type of asset-backed security. A CLO is a trust typically collateralized by a pool of loans, which may include, among others, domestic and foreign senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans. CDOs may charge management fees and administrative expenses. For CDOs, the cash flows from the trust are split into two or more portions, called tranches, varying in risk and yield. The riskiest portion is the “equity” tranche which bears the bulk of defaults from the bonds or loans in the trust and serves to protect the other, more senior tranches from default in all but the most severe circumstances. Since it is partially protected from defaults, a senior tranche from a CDO trust typically has a higher rating and lower yield than its underlying securities and can be rated investment grade. Despite the protection from the equity tranche, CDO senior tranches can experience substantial losses due to actual defaults, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market anticipation of defaults, as well as aversion to CDO securities as a class. The risks of an investment in a CDO depend largely on the type of the collateral securities and the class of the CDO in which a Fund invests. Normally, CLOs and other CDOs are privately offered and sold, and thus, are not registered under the securities laws. As a result, investments in CDOs may be characterized by the Funds as illiquid securities; however, an active dealer market may exist for CDOs allowing a CDO to qualify for Rule 144A transactions under the Securities Act of 1933. In addition to the normal risks associated with fixed income securities (e.g., interest rate risk and default risk), CDOs carry additional risks including, but not limited to: (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the quality of the collateral may decline in value or default; (iii) the Funds may invest in CDOs that are subordinate to other classes; and (iv) the complex structure of the security may not be fully understood at the time of investment and may produce disputes with the issuer or unexpected investment results.
Commodity-Linked Notes: Certain Funds may invest in commodity-linked notes, which are derivative debt instruments whose principal and/or interest payments are linked to the price movement of a commodity, commodity index or commodity futures or option contract. The value of these notes will rise and fall in response to changes in the underlying commodity or related index or investment. These notes are often leveraged, increasing the volatility of each note’s value relative to the change in the underlying linked index. Commodity index-linked investments may be
Notes to Financial Statements (Unaudited)
more volatile and less liquid than the underlying index, and their value may be affected by the performance of the commodities as well as other factors, including liquidity, quality, maturity and other economic variables. Commodity-linked notes are typically issued by a bank or other financial institution and are sometimes referred to as structured notes because the terms of the notes may be structured by the issuer and the purchaser of the notes to accommodate the specific investment requirements of the purchaser.
Exchange-Traded Funds (“ETFs”): Certain Funds may invest in ETFs, which are funds whose shares are traded on a national exchange. ETFs may be based on underlying equity or fixed income securities, as well as commodities or currencies. ETFs do not sell individual shares directly to investors and only issue their shares in large blocks known as “creation units.” The investor purchasing a creation unit then sells the individual shares on a secondary market. Although similar diversification benefits may be achieved through an investment in another investment company, ETFs generally offer greater liquidity and lower expenses. Because an ETF incurs its own fees and expenses, shareholders of a Fund investing in an ETF will indirectly bear those costs. Such Funds will also incur brokerage commissions and related charges when purchasing or selling shares of an ETF. Unlike typical investment company shares, which are valued once daily, shares in an ETF may be purchased or sold on a securities exchange throughout the trading day at market prices that are generally close to the net asset value of the ETF.
Foreign Securities: Certain Funds may directly purchase securities of foreign issuers. Investing in securities of foreign issuers involves special risks not typically associated with investing in securities of U.S. issuers. The risks include possible revaluation of currencies, the inability to repatriate funds, less complete financial information about companies and possible future adverse political and economic developments. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than those of securities of comparable U.S. issuers.
Forward Commitments: Certain Funds may contract to purchase securities for a fixed price at a transaction date beyond the customary settlement period (i.e., “when-issued,” “delayed-delivery,” “forward commitment,” or “TBA transactions”) consistent with a Fund’s ability to manage its investment portfolio and meet redemption requests. These transactions involve a commitment by a Fund to purchase securities for a predetermined price or yield with payment and delivery taking place more than three days in the future or after a period longer than the customary settlement period for that type of security. No interest will be earned by a Fund on such purchases until the securities are delivered; however, the market value may change prior to delivery.
Each Fund may enter into to-be-announced (“TBA”) sale commitments to hedge its positions or to sell mortgage-backed securities it owns under delayed delivery
arrangements. Proceeds of TBA sale commitments are not received until the contractual settlement date. During the time a TBA sale commitment is outstanding, an equivalent deliverable security or an offsetting TBA purchase commitment deliverable on or before the sale commitment date are held as “cover” for the transaction.
Unsettled TBA sale (purchase) commitments are valued at the current market value of the underlying securities, according to the procedures described under “Portfolio Valuation” above. The contract is adjusted to market value daily, and the change in market value is recorded by the Fund as an unrealized gain or loss. If the TBA sale (purchase) commitment is closed through the acquisition of an offsetting purchase (sale) commitment, the Fund realizes a gain or loss from the sale of the securities based upon the unit price established at the date the commitment was entered into.
Government-Sponsored Enterprises (“GSEs”): Certain Funds may invest in GSEs. Certain GSEs (such as Freddie Mac, Fannie Mae, and FHLB), although sponsored or chartered by the U.S. Government, are not funded by the U.S. Government, and the securities they issue are not guaranteed by the U.S. Government. GSE debt is generally considered to be of high credit quality due to the implied backing of the U.S. Government, but ultimately it is the sole obligation of its issuer. For that reason, securities issued by GSEs are considered to carry somewhat greater credit risk than securities issued by the U.S. Treasury or government agencies that carry the full faith and credit of the U.S. Government.
Inflation-Indexed Bonds: Certain Funds may invest in inflation-indexed bonds. Inflation-indexed bonds are fixed-income securities whose principal value is periodically adjusted to the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond, however, interest will be paid based on a principal value, which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond will be included as interest income on the Statement of Operations, even though investors do not receive their principal until maturity.
Mortgage-Related and Other Asset-Backed Securities: Certain Funds may invest in mortgage-related and other asset-backed securities. A mortgage-backed security, which represents an interest in a pool of assets such as mortgage loans, will mature when all the mortgages in the pool mature or are prepaid. Therefore, mortgage-backed securities do not have a fixed maturity, and their expected maturities may vary when interest rates rise or fall.
Mortgage-backed securities are subject to extension risk, which is the risk that a Fund that holds mortgage-backed securities may exhibit additional volatility during periods of rising interest rates. Rising interest rates tend to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates. In addition, mortgage-backed securities are subject to prepayment risk. When interest rates decline, borrowers may pay off their mortgages sooner than expected.
Notes to Financial Statements (Unaudited)
This can reduce the returns of the Fund because a Fund will have to reinvest that money at the lower prevailing interest rates.
A Fund’s investments in asset-backed securities are subject to risks similar to those associated with mortgage-related securities, as well as additional risks associated with the nature of the assets and the servicing of those assets. Asset-backed securities present credit risks that are not presented by mortgage-backed securities because asset-backed securities generally do not have the benefit of a security interest in collateral that is comparable in quality to mortgage assets. If the issuer of an asset-backed security defaults on its payment obligations, there is the possibility that, in some cases, a Fund will be unable to possess and sell the underlying collateral and that a Fund’s recoveries on repossessed collateral may not be available to support payments on the security. In the event of a default, a Fund may suffer a loss if it cannot sell collateral quickly and receive the amount it is owed.
Real Estate Investment Trusts (“REITs”): Certain Funds may invest a portion of its assets in REITs and is subject to certain risks associated with direct investments in REITs. REITs may be affected by changes in the value of their underlying properties and by defaults by borrowers or tenants. REITs depend generally on their ability to generate cash flow to make distributions to shareowners, and certain REITs have self-liquidation provisions by which mortgages held may be paid in full and distributions of capital returns may be made at any time. There is no guarantee that the REITs held by the Funds will continue to pay dividends. In addition, the performance of a REIT may be affected by its failure to qualify for tax-free pass-through of income under the Internal Revenue Code of 1986, as amended (the “Code”), or its failure to maintain exemption from registration under the 1940 Act.
Repurchase Agreements: Certain Funds may enter into repurchase agreements (agreements to purchase securities—generally securities of the U.S. Government, its agencies or instrumentalities—subject to the seller’s agreement to repurchase them at a specified time and price) with well established dealers or institutions that Forward Management, or the appropriate sub-advisor has determined to be creditworthy. Repurchase agreements subject the Fund to counterparty risk, meaning that a fund could lose money if the other party fails to perform under the terms of the agreement. The Fund mitigates this risk by ensuring that the Fund’s repurchase agreements are fully collateralized by cash or U.S. government and agency securities. It is the Funds’ policy to take possession of the underlying securities, held in safekeeping at the Fund’s custodian or designated sub-custodians for tri-party repurchase agreements, as collateral and, on a daily basis, mark-to-market such securities to ensure that the market value including accrued interest is at least equal to the amount owed to the Funds under each repurchase agreement. As of June 30, 2013, the U.S. Government Money Fund held repurchase agreements and has disclosed the details in the Portfolio of Investments. No other Funds held repurchase agreements at June 30, 2013.
Short Sales: Certain Funds may sell securities short. Short sales are transactions in which a Fund sells a security that it does not own in anticipation of a decline in the market value of that security. To complete such a transaction, a Fund must borrow the security to deliver to the buyer. The Fund is then obligated to replace the security borrowed by purchasing it in the open market at some later date. The Fund bears the risk of a loss if the market price of the security increases between the date of the short sale and the date on which the Fund replaces the borrowed security. The Fund will realize a gain if the security declines in value between those dates. There can be no assurance that securities necessary to cover a short position will be available for purchase. All short sales must be fully collateralized. The Fund maintains collateral consisting of cash, U.S. Government securities or other liquid assets in an amount at least equal to the market value of their respective short positions. The Fund is liable for any dividends or interest payable on securities while those securities are in a short position. The Fund typically intends to hold securities sold short for the short term; therefore, they are excluded from the purchase and sales of investments in Note 8 and the Fund’s Portfolio Turnover Calculation in the Financial Highlights. As of June 30, 2013, the Funds held no securities sold short.
Stripped Mortgage-Backed Securities: Certain Funds may invest in stripped mortgage-backed securities that are derivative multiple-class mortgage-backed securities. Stripped mortgage-backed securities usually have two classes that receive different proportions of interest and principal distributions on a pool of mortgage assets. Typically, one class will receive some of the interest and most of the principal, while the other class will receive most of the interest and the remaining principal. In extreme cases, one class will receive all of the interest (“interest only” or “IO” class) while the other class will receive the entire principal (“principal only” or “PO” class). The cash flow and yields on IOs and POs are extremely sensitive to the rate of principal payments (including prepayments) on the underlying mortgage loans or mortgage-backed securities. A rapid rate of principal payments may adversely affect the yield to maturity of IOs. Slower than anticipated prepayments of principal may adversely affect the yield to maturity of a PO. The yields and market risk of IO and PO stripped mortgage-backed securities may be more volatile than those of other fixed income securities, including traditional mortgage-backed securities.
Structured Notes: Certain Funds may invest in structured notes, which are debt obligations that also contain an embedded derivative component with characteristics that adjust the obligation’s risk/return profile. Generally, the performance of a structured note will track that of the underlying debt obligation and the derivative embedded within it. The Fund has the right to receive periodic interest payments from the issuer of the structured notes at an agreed-upon interest rate and a return of the principal at the maturity date.
Structured notes are typically privately negotiated transactions between two or more parties. The Fund bears the risk that the issuer of the structured note will default or become bankrupt. The Fund also bears the risk of the loss of its principal investment
Notes to Financial Statements (Unaudited)
and periodic interest payments expected to be received for the duration of its investment in the structured notes.
In the case of structured notes on credit default swaps, the Fund is also subject to the credit risk of the corporate credits underlying the credit default swaps. If one of the underlying corporate credits defaults, the Fund may receive the security that has defaulted, or alternatively a cash settlement may occur, and the Fund’s principal investment in the structured note would be reduced by the corresponding face value of the defaulted security.
A highly liquid secondary market may not exist for the structured notes a Fund may invest in, and there can be no assurance that a highly liquid secondary market will develop. The lack of a highly liquid secondary market may make it difficult for a Fund to sell the structured notes it holds at an acceptable price or accurately value such notes. The market for structured notes may be, or suddenly can become, illiquid. The other parties to the transaction may be the only investors with sufficient understanding of the derivative to be interested in bidding for it. Changes in liquidity may result in significant, rapid, and unpredictable changes in the prices for structured notes. In certain cases, a market price for a credit-linked security may not be available.
When-Issued and Delayed-Delivery Transactions: Certain Funds may purchase securities on a when-issued or delayed-delivery basis. A Fund will engage in when-issued and delayed-delivery transactions only for the purpose of acquiring portfolio securities consistent with its investment objective and policies and not for investment leverage. When-issued securities are securities purchased for delivery beyond the normal settlement date at a stated price and yield and thereby involve a risk that the yield obtained in the transaction will be less than that available in the market when delivery takes place. A Fund will not pay for such securities or start earning interest on them until they are received. When a Fund agrees to purchase securities on a when-issued basis, the custodian will set aside in a segregated account cash or liquid securities equal to the amount of the commitment. Securities purchased on a when-issued basis are recorded as an asset and are subject to changes in value based upon changes in the value of the security or general level of interest rates. In when-issued and delayed-delivery transactions, a Fund relies on the seller to complete the
transaction; the seller’s failure to do so may cause a Fund to miss an advantageous price or yield.
Fair Value Measurements: A three-tier hierarchy has been established to classify fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability that are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability that are developed based on the best information available.
Various inputs are used in determining the value of each Fund’s investments as of the reporting period end. The designated input levels are not necessarily an indication of the risk or liquidity associated with these investments. These inputs are categorized in the following hierarchy under applicable financial accounting standards:
Level 1—Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities that a Fund has the ability to access at the measurement date. Investments in the Underlying Funds are valued at their NAV daily and are classified as Level 1 prices.
Level 2—Quoted prices which are not active, quoted prices for similar assets or liabilities in active markets or inputs other than quoted prices that are observable (either directly or indirectly) for substantially the full term of the asset or liability. The Board of Trustees has approved independent pricing vendors that calculate fair valuations of international equity securities based on a number of factors that appear to correlate to the movements in the U.S. markets.
Level 3—Significant unobservable prices or inputs (including the Fund’s own assumptions in determining the fair value of investments) where there is little or no market activity for the asset or liability at the measurement date.
The following is a summary of the inputs used to value each Fund’s investments as of June 30, 2013:
| | | | | | | | | | | | | | | | |
| Investments in Securities | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Frontier Strategy Fund | | | | | | | | | | | | | | | | |
Exchange-Traded Funds | | $ | 2,096,304 | | | | — | | | | — | | | $ | 2,096,304 | |
Agency Pass-Through Securities(a) | | | — | | | $ | 24,288,713 | | | | — | | | | 24,288,713 | |
Corporate Bonds(a) | | | — | | | | 15,138,832 | | | | — | | | | 15,138,832 | |
Municipal Bonds | | | — | | | | 4,719,887 | | | | — | | | | 4,719,887 | |
U.S. Treasury Bonds & Notes | | | — | | | | 14,188,335 | | | | — | | | | 14,188,335 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 2,096,304 | | | $ | 58,335,767 | | | | — | | | $ | 60,432,071 | |
| | | | | | | | | | | | | | | | |
Notes to Financial Statements (Unaudited)
| | | | | | | | | | | | | | | | |
| Investments in Securities | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| High Yield Bond Fund | | | | | | | | | | | | | | | | |
Corporate Bonds(a) | | | — | | | $ | 122,597,124 | | | | — | | | $ | 122,597,124 | |
Municipal Bonds | | | — | | | | 1,035,690 | | | | — | | | | 1,035,690 | |
| | | | | | | | | | | | | | | | |
Total | | | — | | | $ | 123,632,814 | | | | — | | | $ | 123,632,814 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Investment Grade Fixed-Income Fund | | | | | | | | | | | | | | | | |
Agency Pass-Through Securities(a) | | | — | | | $ | 2,164,119 | | | | — | | | $ | 2,164,119 | |
Asset-Backed Securities | | | — | | | | 1,741,542 | | | $ | 8,509 | | | | 1,750,051 | |
Collateralized Mortgage Obligations | | | — | | | | 1,220,854 | | | | 255,958 | | | | 1,476,812 | |
Corporate Bonds | | | | | | | | | | | | | | | | |
Industrial-Other | | | — | | | | — | | | | 59,106 | | | | 59,106 | |
Other(a) | | | — | | | | 7,145,986 | | | | — | | | | 7,145,986 | |
Foreign Government Obligations | | | — | | | | 1,040,053 | | | | — | | | | 1,040,053 | |
Municipal Bonds | | | — | | | | 1,856,227 | | | | — | | | | 1,856,227 | |
U.S. Government Agency Securities(a) | | | — | | | | 17,463,148 | | | | — | | | | 17,463,148 | |
Short-Term Securities | | | — | | | | 25,992 | | | | — | | | | 25,992 | |
| | | | | | | | | | | | | | | | |
Total | | | — | | | $ | 32,657,921 | | | $ | 323,573 | | | $ | 32,981,494 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Total MarketPlus Fund | | | | | | | | | | | | | | | | |
Exchange-Traded Funds | | $ | 17,209,580 | | | | — | | | | — | | | $ | 17,209,580 | |
Agency Pass-Through Securities(a) | | | — | | | $ | 5,624,055 | | | | — | | | | 5,624,055 | |
Corporate Bonds(a) | | | — | | | | 1,959,262 | | | | — | | | | 1,959,262 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 17,209,580 | | | $ | 7,583,317 | | | | — | | | $ | 24,792,897 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| U.S. Government Money Fund | | | | | | | | | | | | | | | | |
U.S. Agency Bonds(a) | | | — | | | $ | 8,213,700 | | | | — | | | $ | 8,213,700 | |
Other Commercial Paper(a) | | | — | | | | 5,000,000 | | | | — | | | | 5,000,000 | |
Repurchase Agreements | | | — | | | | 82,000,000 | | | | — | | | | 82,000,000 | |
| | | | | | | | | | | | | | | | |
Total | | | — | | | $ | 95,213,700 | | | | — | | | $ | 95,213,700 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Balanced Allocation Fund | | | | | | | | | | | | | | | | |
Affiliated Investment Companies | | $ | 29,668,813 | | | | — | | | | — | | | $ | 29,668,813 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 29,668,813 | | | | — | | | | — | | | $ | 29,668,813 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Growth & Income Allocation Fund | | | | | | | | | | | | | | | | |
Affiliated Investment Companies | | $ | 37,907,676 | | | | — | | | | — | | | $ | 37,907,676 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 37,907,676 | | | | — | | | | — | | | $ | 37,907,676 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Growth Allocation Fund | | | | | | | | | | | | | | | | |
Affiliated Investment Companies | | $ | 35,592,294 | | | | — | | | | — | | | $ | 35,592,294 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 35,592,294 | | | | — | | | | — | | | $ | 35,592,294 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Income & Growth Allocation Fund | | | | | | | | | | | | | | | | |
Affiliated Investment Companies | | $ | 17,862,358 | | | | — | | | | — | | | $ | 17,862,358 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 17,862,358 | | | | — | | | | — | | | $ | 17,862,358 | |
| | | | | | | | | | | | | | | | |
Notes to Financial Statements (Unaudited)
| | | | | | | | | | | | | | | | |
| Investments in Securities | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Income Builder Fund | | | | | | | | | | | | | | | | |
Affiliated Investment Companies | | $ | 20,614,373 | | | | — | | | | — | | | $ | 20,614,373 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 20,614,373 | | | | — | | | | — | | | $ | 20,614,373 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Multi-Strategy Fund | | | | | | | | | | | | | | | | |
Affiliated Investment Companies | | $ | 12,861,296 | | | | — | | | | — | | | $ | 12,861,296 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 12,861,296 | | | | — | | | | — | | | $ | 12,861,296 | |
| | | | | | | | | | | | | | | | |
(a) For detailed descriptions of industry or country, see the accompanying Portfolio of Investments.
| | | | | | | | | | | | | | | | |
| Other Financial Instruments(a) | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Frontier Strategy Fund | | | | | | | | | | | | | | | | |
| Assets | | | | | | | | | | | | | | | | |
Total Return Swap Contracts | | | — | | | $ | 1,510,228 | | | | — | | | $ | 1,510,228 | |
| Liabilities | | | | | | | | | | | | | | | | |
Total Return Swap Contracts | | | — | | | | (226,330 | ) | | | — | | | | (226,330 | ) |
| | | | | | | | | | | | | | | | |
Total | | | — | | | $ | 1,283,898 | | | | — | | | $ | 1,283,898 | |
| | | | | | | | | | | | | | | | |
| Investment Grade Fixed-Income Fund | | | | | | | | | | | | | | | | |
| Assets | |
Futures Contracts | | $ | 96,649 | | | | — | | | | — | | | $ | 96,649 | |
| Liabilities | | | | | | | | | | | | | | | | |
Futures Contracts | | | (106,568 | ) | | | — | | | | — | | | | (106,568 | ) |
| | | | | | | | | | | | | | | | |
Total | | $ | (9,919 | ) | | | — | | | | — | | | $ | (9,919 | ) |
| | | | | | | | | | | | | | | | |
| Total MarketPlus Fund | | | | | | | | | | | | | | | | |
| Assets | |
Total Return Swap Contracts | | | — | | | $ | 2,850,298 | | | | — | | | $ | 2,850,298 | |
| Liabilities | | | | | | | | | | | | | | | | |
Total Return Swap Contracts | | | — | | | | (354,914 | ) | | | — | | | | (354,914 | ) |
| | | | | | | | | | | | | | | | |
Total | | | — | | | $ | 2,495,384 | | | | — | | | $ | 2,495,384 | |
| | | | | | | | | | | | | | | | |
(a) Other financial instruments are derivative instruments not reflected in the Portfolio of Investments, such as swap contracts and futures contracts.
The Funds recognize transfers between levels as of the beginning of the annual period in which the transfer occurred. During the six months ended June 30, 2013 there were no transfers between Level 1 and Level 2 securities.
The following is a reconciliation of the investments in which significant unobservable inputs (Level 3) were used in determining fair value:
| | | | | | | | | | | | |
| Investment Grade Fixed-Income Fund | | Asset-Backed
Securities | | | Collateralized
Mortgage
Obligations | | | Corporate
Bonds | |
Balance as of December 31, 2012 | | $ | 9,958 | | | | — | | | $ | 59,217 | |
Accrued discounts/premiums | | | — | | | $ | 201 | | | | 34,571 | |
Realized gain/(loss)(a) | | | — | | | | (12,362 | ) | | | — | |
Change in unrealized depreciation(a) | | | (1,449 | ) | | | 8,708 | | | | (34,682 | ) |
Purchases | | | — | | | | 3,243 | | | | — | |
Sales proceeds | | | — | | | | — | | | | — | |
Transfers into Level 3 | | | — | | | | 256,168 | | | | — | |
Transfers out of Level 3 | | | — | | | | — | | | | — | |
| | | | | | | | | | | | |
Balance as of June 30, 2013 | | $ | 8,509 | | | $ | 255,958 | | | $ | 59,106 | |
| | | | | | | | | | | | |
Net change in unrealized depreciation included in the Statement of Operations attributable to Level 3 investments still held at June 30, 2013 | | $ | (1,449 | ) | | $ | 8,708 | | | $ | (34,682 | ) |
| | | | | | | | | | | | |
(a) Net realized gain/(loss) and net unrealized appreciation/(depreciation) are included in the related amounts on investments in the Statement of Operations, as applicable.
Notes to Financial Statements (Unaudited)
For the six months ended June 30, 2013, the other Funds did not have transfers between the fair value levels designated in the preceding table and unobservable inputs (Level 3) used in determining fair value. Therefore, a reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining fair value is not applicable.
Derivative Instruments and Hedging Activities: The following discloses the Funds’ use of derivative instruments and hedging activities.
The Funds’ investment objectives not only permit the Funds to purchase investment securities but also allow certain Funds to enter into various types of derivative contracts, including, but not limited to, futures contracts, swap contracts, forward foreign currency exchange contracts, and purchased and written options. In doing so, the Funds will employ strategies in differing combinations to permit them to increase, decrease, or change the level or types of exposure to market factors. Central to those strategies are features inherent to derivatives that make them more attractive for this purpose than equity or debt securities: they require little or no initial cash investment, they can focus exposure on only certain selected risk factors, and they may not require the ultimate receipt or delivery of the underlying security (or securities) to the contract. This may allow the Funds to pursue their objectives more quickly and efficiently than if they were to make direct purchases or sales of securities capable of affecting a similar response to market factors.
Market Risk Factors: In pursuit of their investment objectives, certain Funds may seek to use derivatives to increase or decrease their exposure to the following market risk factors:
Credit Risk: Credit risk is the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations.
Equity Risk: Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market.
Foreign Exchange Rate Risk: Foreign exchange rate risk relates to the change in the U.S. dollar value of a security held that is denominated in a foreign currency. The value of a foreign currency denominated security will decrease as the dollar appreciates against the currency, while the value of the foreign currency denominated security will increase as the dollar depreciates against the currency.
Interest Rate Risk: Interest rate risk refers to the fluctuations in value of fixed-income securities resulting from the inverse relationship between price and yield. For example, an increase in general interest rates will tend to reduce the market value of already issued fixed-income investments, and a decline in general interest rates will tend to increase the value of such investments. In addition, debt securities with longer maturities, which tend to have higher yields, are subject to potentially greater fluctuations in value from changes in interest rates than obligations with shorter maturities.
Risk of Investing in Derivatives: The Funds’ use of derivatives can result in losses due to unanticipated changes in the market risk factors and the overall market. In instances where the Funds are using derivatives to decrease or hedge exposures to market risk factors for securities held by the Funds, there are also risks that those derivatives may not perform as expected, resulting in losses for the combined or hedged positions.
Derivatives may have little or no initial cash investment relative to their market value exposure and therefore can produce significant gains or losses in excess of their cost. This use of embedded leverage allows the Funds to increase their market value exposure relative to their net assets and can substantially increase the volatility of the Funds’ performance.
Additional associated risks from investing in derivatives also exist and potentially could have significant effects on the valuation of the derivative and the Funds. Typically, the associated risks are not the risks that the Funds are attempting to increase or decrease exposure to, per their investment objectives, but are the additional risks from investing in derivatives.
Examples of these associated risks are liquidity risk, which is the risk that the Funds will not be able to settle the derivative in the open market in a timely manner, and counterparty credit risk, which is the risk that the counterparty will not fulfill its obligation to the Funds. Associated risks can be different for each type of derivative and are discussed by each derivative type in the notes that follow.
Futures: Certain Funds may invest in futures contracts in accordance with their investment objectives. Each Fund does so for a variety of reasons including for cash management, hedging or non-hedging purposes in an attempt to achieve investment returns consistent with the Fund’s investment objective. A futures contract provides for the future sale by one party and purchase by another party of a specified quantity of the security or other financial instrument at a specified price and time. A futures contract on an index is an agreement pursuant to which two parties agree to take or make delivery of an amount of cash equal to the difference between the value of the index at the close of the last trading day of the contract and the price at which the index contract was originally written. Futures transactions may result in losses in excess of the amount invested in the futures contract. There can be no guarantee that there will be a correlation between price movements in the hedging vehicle and in the portfolio securities being hedged. An incorrect correlation could result in a loss on both the hedged securities in a Fund and the hedging vehicle so that the portfolio return might have been greater had hedging not been attempted. There can be no assurance that a liquid market will exist at a time when a Fund seeks to close out a futures contract or a futures option position. Lack of a liquid market for any reason may prevent a Fund from liquidating an unfavorable position, and the Fund would remain obligated to meet margin requirements until the position is closed. In addition, a Fund could be exposed to risk if the counterparties to the
Notes to Financial Statements (Unaudited)
contracts are unable to meet the terms of their contracts. With exchange-traded futures, there is minimal counterparty credit risk to the Funds since futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default.
When a purchase or sale of a futures contract is made by a Fund, the Fund is required to deposit with its custodian (or broker, if legally permitted) a specified amount of liquid assets (“initial margin”). The margin required for a futures contract is set by the exchange on which the contract is traded and may be modified during the term of the contract. The initial margin is in the nature of a performance bond or good faith deposit on the futures contract that is returned to a Fund upon termination of the contract, assuming all contractual obligations have been satisfied. Each day a Fund may pay or receive cash, called “variation margin,” equal to the daily change in value of the futures contract. Such payments or receipts are recorded for financial statement purposes as unrealized gains or losses by a Fund. Variation margin does not represent a borrowing or loan by a Fund but is instead a settlement between a Fund and the broker of the amount one would owe the other if the futures contract expired. When the contract is closed, a Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. As of June 30, 2013, the Investment Grade Fixed-Income Fund held futures contracts outstanding with an unrealized (loss) of $(9,919). No other Funds held futures contracts at June 30, 2013.
Option Writing/Purchasing: Certain Funds may write or purchase option contracts to adjust risk and return of their overall investment positions. When a Fund writes or purchases an option, an amount equal to the premium received or paid by the Fund is recorded as a liability or an asset and is subsequently adjusted to the current market value of the option written or purchased. Premiums received or paid from writing or purchasing options that expire unexercised are treated by the Fund on the expiration date as realized gains or losses. The difference between the premium and the amount paid or received on affecting a closing purchase or sale transaction, including brokerage commissions, is also treated as a realized gain or loss. If an option is exercised, the premium paid or received is added to the cost of the purchase or proceeds from the sale in determining whether the Fund has realized a gain or loss on investment transactions. Risks from entering into option transactions arise from the potential inability of counterparties to meet the terms of the contracts, the potential inability to enter into closing transactions because of an illiquid secondary market and unexpected movements in security values. No Funds held purchased or written options at June 30, 2013.
Swap Agreements: Certain Funds may enter into interest rate, index, equity, currency exchange rate, total return and credit default swap agreements, as well as purchase and sell options to enter into such swap agreements, for hedging and non-hedging purposes. These transactions would be entered into in an attempt to obtain a particular return when it is considered desirable to do so, possibly at a lower cost to
a Fund than if the Fund had invested directly in the asset that yielded the desired return. Swap agreements are two-party contracts entered into primarily by institutional investors for periods ranging from a few weeks to more than one year. In a standard swap transaction, two parties agree to exchange the returns (or differentials in rates of return) earned or realized on particular predetermined investments or instruments, which may be adjusted for an interest factor. The gross returns to be exchanged or “swapped” between the parties are generally calculated with respect to a “notional amount” (i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate, in a particular foreign currency, or in a “basket” of securities representing a particular index).
Forms of swap agreements include interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”; interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified level, or “floor”; and interest rate collars, under which a party sells a cap and purchases a floor, or vice versa, in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels.
Credit default swaps are a type of swap agreement in which the protection “buyer” is generally obligated to pay the protection “seller” an upfront and/or a periodic stream of payments over the term of the contract provided that no credit event, such as a default, on a reference obligation has occurred. The credit default swap agreement may have as reference obligations one or more securities that are not currently held by a Fund. If a credit event occurs, the seller generally must pay the buyer the “par value” (full notional value) of the swap in exchange for an equal face amount of deliverable obligations of the reference entity described in the swap, or the seller may be required to deliver the related net cash amount if the swap is cash settled. A Fund may be either the buyer or seller in the transaction. If a Fund is a buyer and no credit event occurs, the Fund may recover nothing if the swap is held through its termination date. However, if a credit event occurs, the buyer generally may elect to receive the full notional value of the swap in exchange for an equal face amount of deliverable obligations of the reference entity whose value may have significantly decreased. As a seller, a Fund generally receives an upfront payment and/or a fixed rate of income throughout the term of the swap provided that there is no credit event. As the seller, a Fund would effectively add leverage to its portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the swap. Credit default swap agreements involve greater risks than if a Fund had invested in the reference obligation directly since, in addition to general market risks, credit default swaps are subject to illiquidity risk, counterparty risk and credit risk. A Fund will enter into credit default swap agreements only with counterparties that meet certain standards of creditworthiness.
Notes to Financial Statements (Unaudited)
Total return swap agreements are contracts in which one party agrees to make periodic payments based on the change in market value of underlying assets, which may include a specified security, basket of securities, defined portfolios of bonds, loans and mortgages, or securities indexes during the specified period, in return for periodic payments based on a fixed or variable interest rate or the total return from other underlying assets or indices. Total return swap agreements may be used to obtain exposure to a security or market index without owning or taking physical custody of such security or component securities of a market index. Total return swap agreements may effectively add leverage to a Fund’s portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the swap. Total return swaps are a mechanism for the user to accept the economic benefits of asset ownership without utilizing the balance sheet. The other leg of the swap, usually the London Interbank Offered Rate (“LIBOR”), is spread to reflect the non-balance sheet nature of the product. Total return swaps can be designed with any underlying asset agreed between two parties. Typically no notional amounts are exchanged with total return swaps. Total return swap agreements entail the risk that a party will default on its payment obligations to a Fund thereunder. Swap agreements also entail the risk that a Fund will not be able to meet its obligation to the counterparty. Generally, a Fund will enter into total return swaps on a net basis (i.e., the two payment streams are netted out with the Fund receiving or paying, as the case may be, only the net amount of the two payments).
Most swap agreements entered into by a Fund calculate the obligations of the parties to the agreement on a “net basis.” Consequently, a Fund’s current obligations (or rights) under a swap agreement will generally be equal only to the net present value of amounts to be paid or received under the agreement based on the relative values of the positions held by each party to the agreement (the “net amount”). A Fund’s current obligations under a swap agreement will be accrued daily (offset against amounts owed to the Fund), and any accrued but unpaid net amounts owed to a swap counterparty will be covered in accordance with applicable regulatory requirements to limit any potential leveraging of a Fund’s portfolio. The Fund’s maximum risk of loss from counterparty credit risk is generally limited to the net payment to be received by the Funds and/or the termination value at the end of the contract. Obligations under swap agreements so covered will not be construed to be “senior securities” for purposes of the Funds’ investment restriction concerning senior securities.
Whether a Fund’s use of swap agreements will be successful in furthering its investment objective will depend on Forward Management’s ability to correctly predict whether certain types of investments are likely to produce greater returns than other investments. Because they are two-party contracts and because they may have terms of greater than seven days, swap agreements may be considered to be illiquid investments. Moreover, a Fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty. A Fund will enter into swap agreements only with counterparties that meet certain standards for creditworthiness (generally, such counterparties would have to be eligible counterparties under the terms of the Fund’s repurchase agreement guidelines). Certain restrictions imposed on the Funds by the Code, may limit a Fund’s ability to use swap agreements. The swap market is a relatively new market and is largely unregulated. It is possible that developments in the swap market, including potential government regulation, could adversely affect a Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements.
International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreements”) govern OTC financial derivative transactions entered into by a Fund and those counterparties. The ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral and events of default or termination. Events of termination include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement. Any election to terminate early could be material to the financial statements.
During the six months ended June 30, 2013, the Frontier Strategy Fund and the Total MarketPlus Fund invested in swap agreements consistent with the Funds’ investment strategies to gain exposure to certain markets or indices. Swap agreements held at June 30, 2013 are disclosed in the Portfolio of Investments. No other Funds held swap agreements at June 30, 2013.
The values in the tables below exclude the effects of cash collateral received or posted pursuant to these derivative contracts, and therefore are not necessarily representative of the Funds’ net exposure. Cash held as collateral is in a segregated account with the Funds’ custodian and is reflected in the Statement of Assets and Liabilities.
Balance Sheet – Fair Value of Derivatives Instruments as of June 30, 2013(a):
| | | | | | | | | | | | |
Derivatives not Accounted
for as Hedging Instruments | | Asset Derivatives
Balance Sheet
Location | | Fair Value | | | Liabilities Derivatives
Balance Sheet
Location | | Fair Value | |
| Frontier Strategy Fund | | | | | | | | | | | | |
Equity Contracts (Total Return Swaps) | | Unrealized gain on swap contracts | | $ | 1,510,228 | | | Unrealized loss on swap contracts | | $ | 226,330 | |
| | | | | | | | | | | | |
Total | | | | $ | 1,510,228 | | | | | $ | 226,330 | |
| | | | | | | | | | | | |
Notes to Financial Statements (Unaudited)
| | | | | | | | | | | | |
Derivatives not Accounted
for as Hedging Instruments | | Asset Derivatives
Balance Sheet
Location | | Fair Value | | | Liabilities Derivatives
Balance Sheet
Location | | Fair Value | |
| Investment Grade Fixed-Income Fund | | | | | | | | | | | | |
Interest Rate Contracts (Futures Contracts) | | | | | — | | | Variation margin payable | | $ | 9,919 | |
| | | | | | | | | | | | |
Total | | | | | — | | | | | $ | 9,919 | |
| | | | | | | | | | | | |
| Total MarketPlus Fund | | | | | | | | | | | | |
Equity Contracts (Total Return Swaps) | | Unrealized gain on swap contracts | | $ | 2,850,298 | | | Unrealized loss on swap contracts | | $ | 354,914 | |
| | | | | | | | | | | | |
Total | | | | $ | 2,850,298 | | | | | $ | 354,914 | |
| | | | | | | | | | | | |
(a) For open derivative instruments as of June 30, 2013, see the Portfolio of Investments. The Portfolio of Investments is representative of the activity for the six months ended June 30, 2013.
The gains/(losses) in the table below are included in the “Net realized gain/(loss)” or “Net change in unrealized gain/(loss)” on the Statement of Operations.
The Effect of Derivatives Instruments on the Statement of Operations for the six months ended June 30, 2013:
| | | | | | | | | | |
Derivatives not Accounted
for as Hedging Instruments | | Location of Gains/(loss) on
Derivatives Recognized
in Income | | Realized
Gain/(loss)
on Derivatives
Recognized in
Income | | | Change in
Unrealized
Gain/(loss)
on Derivatives
Recognized in
Income | |
| Frontier Strategy Fund | | | | | | | | | | |
Equity Contracts (Total Return Swaps) | | Net realized gain on swap contracts/Net change in unrealized appreciation/(depreciation) on swap contracts | | $ | 6,091,511 | | | $ | 537,747 | |
| | | | | | | | | | |
Total | | | | $ | 6,091,511 | | | $ | 537,747 | |
| | | | | | | | | | |
| Investment Grade Fixed-Income Fund | | | | | | | | | | |
Interest Rate Contracts (Futures Contracts) | | Net realized gain on futures contracts/Net change in unrealized appreciation/(depreciation) on futures contracts | | $ | 49,689 | | | $ | (3,271 | ) |
| | | | | | | | | | |
Total | | | | $ | 49,689 | | | $ | (3,271 | ) |
| | | | | | | | | | |
| Total MarketPlus Fund | | | | | | | | | | |
Equity Contracts (Total Return Swaps) | | Net realized gain on swap contracts/Net change in unrealized appreciation/(depreciation) on swap contracts | | $ | 6,674,052 | | | $ | (1,666,818 | ) |
| | | | | | | | | | |
Total | | | | $ | 6,674,052 | | | $ | (1,666,818 | ) |
| | | | | | | | | | |
Notes to Financial Statements (Unaudited)
Certain derivative contracts and repurchase agreements are executed under either standardized netting agreements or, for exchange-traded derivatives, the relevant contracts for a particular exchange which contain enforceable netting provisions. A derivative netting arrangement creates an enforceable right of set-off that becomes effective, and affects the realization of settlement on individual assets, liabilities and collateral amounts, only following a specified event of default or early termination. Default events may include the failure to make payments or deliver securities timely, material adverse changes in financial condition or insolvency, the breach of minimum regulatory capital requirements, or loss of license, charter or other legal authorization necessary to perform under the contract.
The following table presents financial instruments that are subject to enforceable netting arrangements or other similar agreements as of June 30, 2013:
Offsetting of Financial Assets and Derivative Assets:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Gross Amounts of
Recognized Assets | | | Gross Amounts
Offset in the
Statement of
Assets and
Liabilities | | | Net Amounts
Presented in the
Statement of
Assets and
Liabilities | | | Gross Amounts Not Offset in the Statement of
Assets and Liabilities | |
| | | | | | Financial
Instruments(a) | �� | | Cash Collateral
Received(a) | | | Net Amount | |
| Frontier Strategy Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Equity Contracts (Total Return Swaps) | | $ | 1,510,228 | | | $ | — | | | $ | 1,510,228 | | | $ | — | | | $ | — | | | $ | 1,510,228 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 1,510,228 | | | $ | — | | | $ | 1,510,228 | | | $ | — | | | $ | — | | | $ | 1,510,228 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Total MarketPlus Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Equity Contracts (Total Return Swaps) | | $ | 2,850,298 | | | $ | — | | | $ | 2,850,298 | | | $ | — | | | $ | — | | | $ | 2,850,298 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 2,850,298 | | | $ | — | | | $ | 2,850,298 | | | $ | — | | | $ | — | | | $ | 2,850,298 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| U.S. Government Money Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Repurchase Agreements | | $ | 82,000,000 | | | $ | — | | | $ | 82,000,000 | | | $ | (82,000,000 | ) | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 82,000,000 | | | $ | — | | | $ | 82,000,000 | | | $ | (82,000,000 | ) | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Offsetting of Financial Liabilities and Derivative Liabilities:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Gross Amounts of
Recognized Liabilities | | | Gross Amounts
Offset in the
Statement of
Assets and
Liabilities | | | Net Amounts
Presented in the
Statement of
Assets and
Liabilities | | | Gross Amounts Not Offset in the Statement of
Assets and Liabilities | |
| | | | | | Financial
Instruments(a) | | | Cash Collateral
Pledged(a) | | | Net Amount | |
| Frontier Strategy Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Equity Contracts (Total Return Swaps) | | $ | 226,330 | | | $ | — | | | $ | 226,330 | | | $ | — | | | $ | (226,330 | ) | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 226,330 | | | $
| —
|
| | $ | 226,330 | | | $ | — | | | $ | (226,330 | ) | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Total MarketPlus Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Equity Contracts (Total Return Swaps) | | $ | 354,914 | | | $ | — | | | $ | 354,914 | | | $ | — | | | $ | (310,070 | ) | | $ | 44,844 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 354,914 | | | $ | — | | | $ | 354,914 | | | $ | — | | | $ | (310,070 | ) | | $ | 44,844 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
(a) These amounts are limited to the derivative asset/liability balance and, accordingly, do not include excess collateral received/pledged.
Notes to Financial Statements (Unaudited)
Warrants: Certain Funds may invest in warrants. A Fund may purchase warrants issued by domestic and foreign companies to purchase newly created equity securities consisting of common and preferred stock. Warrants are securities that give the holder the right, but not the obligation, to purchase equity issues of the company issuing the warrants, or a related company, at a fixed price either on a certain date or during a set period. The equity security underlying a warrant is authorized at the time the warrant is issued or is issued together with the warrant.
Investing in warrants can provide a greater potential for profit or loss than an equivalent investment in the underlying security; and, thus, can be a speculative investment. At the time of issue, the cost of a warrant is substantially less than the cost of the underlying security itself, and price movements in the underlying security are generally magnified in the price movements of the warrant. This leveraging effect enables the investor to gain exposure to the underlying security with a relatively low capital investment.
This leveraging increases an investor’s risk, as a complete loss of the amount invested in the warrant may result in the event of a decline in the value of the underlying security. In addition, the price of a warrant tends to be more volatile than, and may not correlate exactly to, the price of the underlying security. If the market price of the underlying security is below the exercise price of the warrant on its expiration date, the warrant will generally expire without value. The value of a warrant may decline because of a decline in the value of the underlying security, the passage of time, changes in interest rates or in the dividend or other policies of the company whose equity underlies the warrant, a change in the perception as to the future price of the underlying security, or any combination thereof. Warrants generally pay no dividends and confer no voting or other rights other than to purchase the underlying security. The Funds held no warrants as of June 30, 2013.
Cash Management Transactions: The Funds may hold cash balances in bank demand deposit accounts with the Funds’ custodian, Citibank, N.A. (“Citibank”). Such amounts are readily accessible to purchase investments or pay Fund expenses. The Funds consider liquid assets deposited in a bank demand deposit account to be cash equivalents. Cash and cash equivalents are valued at cost plus any accrued interest. The Funds may maintain demand deposit accounts that have an aggregate value in excess of Federal Deposit Insurance Corporation (FDIC) insurance limits. As a result, the Funds may be exposed to credit risk in the event of insolvency or other failure of Citibank to meet its obligations.
Investment in the Forward U.S. Government Money Fund: The Funds are permitted to invest daily available cash balances in an affiliated money market fund. The Funds may invest the available cash in Class Z shares of the Forward U.S. Government Money Fund (“U.S. Government Money Fund”) to seek current income while preserving liquidity. The U.S. Government Money Fund is a registered open-end management investment company, regulated as a money market fund under the 1940 Act.
When applicable, the Funds’ investment in the U.S. Government Money Fund is included in the Portfolio of Investments. Shares of the U.S. Government Money Fund are valued at their net asset value per share. As a shareholder, the Funds are indirectly subject to the proportional share of the U.S. Government Money Fund Class Z expenses, including its management fee. The Advisor will waive fees and/or reimburse expenses in an amount equal to the indirect management fees incurred through the Funds’ investment in the U.S. Government Money Fund. During the six months ended June 30, 2013, none of the Funds invested in the U.S. Government Money Fund.
Distributions to Shareholders: Dividends from net investment income, if any, are declared and paid annually for the Frontier Strategy Fund and the Total MarketPlus Fund; quarterly for the Growth & Income Allocation Fund, the Growth Allocation Fund and the Multi-Strategy Fund; monthly for the Balanced Allocation Fund, the High Yield Bond Fund, the Income & Growth Allocation Fund, the Income Builder Fund and the Investment Grade Fixed-Income Fund; and declared daily and paid monthly for the U.S. Government Money Fund. For all Funds, net realized capital gains, if any, are distributed annually. There is no guarantee that the companies held by the Funds will continue paying dividends.
Income and capital gain distributions are determined in accordance with Federal income tax regulations, which may differ from GAAP. Therefore, the source of the Funds’ distributions may be shown in the accompanying financial statements as either from or in excess of net investment income or net realized gain or from paid-in-capital depending upon the type of book/tax differences that may exist.
The Funds recharacterize distributions received from REIT investments based on information provided by the REITs into the following categories: ordinary income, long-term capital gains, and return of capital. If information is not available on a timely basis from the REITs, the recharacterization will be estimated based on available information that may include the previous year’s allocation. If new or additional information becomes available from the REITs at a later date, a recharacterization will be made in the following annual financial reporting period. There is no guarantee that the REITS held by the Funds will continue to pay dividends. The Funds record as dividend income the amount recharacterized as ordinary income and as realized gain the amount recharacterized as long-term capital gain in the Statement of Operations, and the amount recharacterized as a return of capital as a reduction to the cost of investments in the Statement of Assets and Liabilities and in the Portfolio of Investments. These recharacterizations are reflected in the accompanying financial statements.
Federal Income Taxes: The Trust treats each Fund as a separate entity for Federal income tax purposes. Each Fund intends to continue to qualify each year as a “regulated investment company” under Subchapter M of the Code. By so qualifying, each Fund will not be subject to Federal income taxes to the extent that it distributes
Notes to Financial Statements (Unaudited)
substantially all of its taxable or tax-exempt income, if any, for its tax year ending December 31. In addition, by distributing in each calendar year substantially all of its net investment income, capital gains and certain other amounts, if any, each Fund will not be subject to a Federal excise tax. Therefore, no provision is made by the Funds for Federal income or excise taxes. Withholding taxes on foreign dividends are paid or provided for in accordance with the applicable country’s tax rules and rates. Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to differing treatment for items such as non-U.S. currency gains and losses, short-term capital gains and losses, capital losses related to wash sales, unrealized appreciation of certain investments in non-U.S. securities, and income on certain investments. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the Funds for financial reporting purposes. The Funds may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
As of and during the six months ended June 30, 2013, and for all open tax years, the Funds did not have a liability for any unrecognized tax benefits in the accompanying financial statements. The Funds recognize the interest and penalties, if any, related to the unrecognized tax benefits as income tax expense in the Statement of Operations. During the period, the Funds did not incur any interest or penalties. Open tax years are those that remain subject to examination and are based on each tax jurisdiction statute of limitation.
Expenses: Expenses that are specific to a Fund or class of shares of a Fund are charged directly to that Fund or share class. Expenses that are common to all Funds generally are allocated among the Funds in proportion to their average daily net assets. For Funds offering multiple share classes, all of the realized and unrealized
gains and losses and net investment income, other than class specific expenses, are allocated daily to each class in proportion to its average daily net assets. Fees provided under the distribution (Rule 12b-1), shareholder services and/or administrative services plans for a particular class of a Fund are charged to the operations of such class.
ReFlow Transactions: During the period from May 17, 2013 to June 30, 2013, certain Funds participated in ReFlow, a program designed to provide an alternative liquidity source for mutual funds experiencing redemptions of their shares. In order to pay cash to shareholders who redeem their shares on a given day, a mutual fund typically must hold cash in its portfolio, liquidate portfolio securities, or borrow money, all of which impose certain costs on the fund. ReFlow provides participating mutual funds with another source of cash by standing ready to purchase shares from a fund equal to the amount of the fund’s net redemptions on a given day. ReFlow then generally redeems those shares when the fund experiences net sales. In return for this service, the fund will pay a fee to ReFlow at a rate determined by a daily auction with other participating mutual funds. The costs to a Fund for participating in ReFlow are generally expected to be influenced by and comparable to the cost of other sources of liquidity, such as the Fund’s short-term lending arrangements or the costs of selling portfolio securities to meet redemptions. ReFlow is prohibited from acquiring more than 3% of the outstanding voting securities of any Fund, but in no case will ReFlow’s position in any fund exceed $15 million.
ReFlow Services, LLC (“ReFlow Services”), the entity which facilitates the day-to-day operations of ReFlow, is under common control with Forward Management. In light of this, the Board of Trustees has adopted certain procedures to govern the Funds’ participation in ReFlow. ReFlow fees that were incurred by the Funds during the period ended June 30, 2013 are recorded in the Statement of Operations.
Notes to Financial Statements (Unaudited)
3. Investment Management Services
The Trust has entered into an investment management agreement with Forward Management pursuant to which Forward Management provides investment management services to the Funds and is entitled to receive a fee calculated daily and payable monthly at the following annual rates, as of June 30, 2013, based on each Fund’s average daily net assets:
| | |
| Fund | | Advisory Fee |
Frontier Strategy Fund | | 0.85% |
| |
High Yield Bond Fund | | 0.25% |
| |
Investment Grade Fixed-Income Fund | | 0.25% |
| |
Total MarketPlus Fund | | 0.50% |
| |
U.S. Government Money Fund | | 0.08%(a) |
| |
Balanced Allocation Fund | | 0.10%(b) |
| |
Growth & Income Allocation Fund | | 0.10%(b) |
| |
Growth Allocation Fund | | 0.10%(b) |
| |
Income & Growth Allocation Fund | | 0.10%(b) |
| |
Income Builder Fund | | 0.10%(c) |
| |
Multi-Strategy Fund | | 0.10%(b) |
(a) Effective April 4, 2011, in an attempt to enhance the yield of the U.S. Government Money Fund, Forward Management has agreed to waive its management fee to the extent necessary in order to maintain the Fund’s (or class thereof, as applicable) current yield at or above 0.01% (1 basis point). Any such waiver of the management fee is voluntary and may be revised or terminated by Forward Management at any time without notice. There is no guarantee that the Fund will be able to maintain a current yield at or above 0.01%. For the six months ended June 30, 2013, the management fee waivers are recorded in the Statement of Operations.
(b) Forward Management has contractually agreed to waive its investment management fee until April 30, 2014. The waivers for the investment management fees are reflected in the Statement of Operations.
(c) Forward Management contractually agreed to waive its investment management fee through April 30, 2013. The waivers for the investment management fees are reflected in the Statement of Operations.
The Trust has obtained an exemptive order from the Securities and Exchange Commission (“SEC”) that allows the Allocation Funds to enter into a special servicing agreement with the Underlying Funds under which the Underlying Funds will pay the expenses of the Allocation Funds (other than the Allocation Funds’ direct management fees, distribution and service fees, and administrative services fees) to the extent that the Underlying Funds derive additional financial and other benefits as a result of investments from the Allocation Funds. None of the expenses incurred by the Allocation Funds for the six months ended June 30, 2013 were paid by the Underlying Funds.
The Trust and Forward Management have entered into investment sub-advisory agreements with First Western Capital Management Company (“First Western”) for the High Yield Bond Fund and Pacific Investment Management Company LLC (“PIMCO”) for the Investment Grade Fixed-Income Fund (each a “Sub-Advisor” and, collectively, the “Sub-Advisors”). Pursuant to these agreements, the Sub-Advisors provide investment sub-advisory services to the Funds and are entitled to receive a fee from the Trust calculated daily and payable monthly at the following annual rates, as of June 30, 2013, based on each Fund’s average daily net assets:
| | |
| Fund | | Sub-Advisory Fee |
High Yield Bond Fund | | 0.25% |
| |
Investment Grade Fixed-Income Fund | | 0.25% |
Notes to Financial Statements (Unaudited)
Expense Limitations: Forward Management has entered into Expense Limitation Agreements with certain Funds, which limits the total expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired fund fees and expenses, and extraordinary expenses) of certain classes of certain Funds, through a specified date. In addition, Forward Management may voluntarily reimburse additional expenses of certain classes of certain Funds. Following are the annual expense limitation rates and expiration dates for the Funds with an Expense Limitation Agreement:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Fund | | Investor
Class | | | Institutional
Class | | | Class A | | | Class C | | | Advisor
Class | | | Class Z | | | End Date | |
Frontier Strategy Fund (a) | | | 1.29 | % | | | 0.99 | % | | | N/A | | | | N/A | | | | 0.99 | % | | | 0.89 | % | | | April 30, 2014 | |
Total MarketPlus Fund | | | 1.25 | % | | | 0.85 | % | | | N/A | | | | N/A | | | | N/A | | | | 0.75 | % | | | April 30, 2014 | |
Income Builder Fund (b) | | | 0.99 | % | | | 0.49 | % | | | 0.74 | % | | | 1.49 | % | | | N/A | | | | N/A | | | | April 30, 2014 | |
(a) From January 1, 2013 to April 30, 2013, Forward Management had a contractual obligation to waive any portion of its fees in amounts necessary to limit the Frontier Strategy Fund’s Investor Class, Institutional Class, Advisor Class and Class Z shares’ operating expenses to an annual rate of 1.49%, 1.19%, 1.19% and 1.09%, respectively.
(b) Prior to May 1, 2013, the Income Builder Fund did not have an expense limitation agreement with Forward Management.
Pursuant to the Expense Limitation Agreements, each Fund will reimburse Forward Management for any fee waivers and expense reimbursements made by Forward Management, provided that any such reimbursements made by a Fund to Forward Management will not cause the Fund’s expense limitation to exceed expense limitation rates in existence at the time the expense was incurred, or at the time of the reimbursement, whichever expense limitation rate is lower, and the reimbursement is made within three years following the year in which the expenses were incurred.
For the six months ended June 30, 2013, the fee waivers and/or reimbursements were as follows:
| | | | | | | | | | | | |
| Fund | | Fees Waived/
Reimbursed
by Advisor | | | Recoupment of
Past Waived
Fees by Advisor | | | Total | |
| Frontier Strategy Fund | | | | | | | | | | | | |
Investor Class | | $ | 2,312 | | | $ | 0 | | | $ | 2,312 | |
Institutional Class | | | 43,433 | | | | 0 | | | | 43,433 | |
Advisor Class | | | 6 | | | | 0 | | | | 6 | |
Class Z | | | 3,843 | | | | 0 | | | | 3,843 | |
| Total MarketPlus Fund | | | | | | | | | | | | |
Investor Class | | | 1,801 | | | | 0 | | | | 1,801 | |
Institutional Class | |
| 23,983
|
| | | 0 | | | | 23,983 | |
Class Z | | | 14,127 | | | | 0 | | | | 14,127 | |
| Income Builder Fund | | | | | | | | | | | | |
Class A | | | 465 | | | | 0 | | | | 465 | |
Class C | | | 809 | | | | 0 | | | | 809 | |
Investor Class | | | 243 | | | | 0 | | | | 243 | |
Institutional Class | | | 1,518 | | | | 0 | | | | 1,518 | |
As of June 30, 2013, the balances of recoupable expenses for each Fund were as follows:
| | | | | | | | | | | | |
| Fund | | 2012 | | | 2013 | | | Total | |
| Frontier Strategy Fund | | | | | | | | | | | | |
Investor Class | | $ | 500 | | | $ | 2,312 | | | $ | 2,812 | |
Institutional Class | | | 9,205 | | | | 43,433 | | | | 52,638 | |
Advisor Class | | | 1 | | | | 6 | | | | 7 | |
Class Z | | | 1,432 | | | | 3,843 | | | | 5,275 | |
| Total MarketPlus Fund | | | | | | | | | | | | |
Investor Class | | | 43 | | |
| 1,801
|
| | | 1,844 | |
Institutional Class | | | 87 | | | | 23,983 | | | | 24,070 | |
Class Z | | | 98 | | | | 14,127 | | | | 14,225 | |
| Income Builder Fund | | | | | | | | | | | | |
Class A | | | N/A | | | | 465 | | | | 465 | |
Class C | | | N/A | | | | 809 | | | | 809 | |
Investor Class | | | N/A | | | | 243 | | | | 243 | |
Institutional Class | | | N/A | | | | 1,518 | | | | 1,518 | |
Notes to Financial Statements (Unaudited)
4. Distribution and Shareholder Services Plans
The Funds have adopted Distribution Plans (the “Distribution Plans”) pursuant to Rule 12b-1 of the 1940 Act which allow each of the Funds to pay for the sale and distribution of its shares at an annual rate of up to 0.25% of each Fund’s average daily net assets attributable to Investor Class shares, up to 0.35% of the Fund’s average daily net assets attributable to Class A shares of the Allocation Funds (except the Income Builder Fund), up to 0.25% of the Fund’s average daily net assets attributable to Class A shares of the U.S. Government Money Fund and the Income Builder Fund, and up to 0.75% of each Fund’s average daily net assets attributable to Class C shares.
The Funds have adopted a Shareholder Services Plan (the “Shareholder Services Plan”) with respect to the Investor Class shares of each Fund (with the exception of the Frontier Strategy Fund). Pursuant to the Shareholder Services Plan, the Trust will pay independent service organizations who provide administrative and support services. The amounts payable to service organizations under the Shareholder Services Plan for these expenses on an annual basis is up to 0.25% of the average daily net assets of each Fund attributable to Investor Class shares; provided, however, that no Fund shall directly or indirectly pay any distribution-related amounts that will be allocated under the Funds’ Distribution and Shareholder Services Plan.
The Frontier Strategy Fund has adopted a Shareholder Services Plan that may be used to pay Shareholder Servicing fees at an annual rate of up to 0.15% of the Fund’s average daily net assets attributable to Investor Class shares and up to 0.10% of the Fund’s average daily net assets attributable to Institutional Class and Advisor Class shares. The other Funds (except the Allocation Funds) have adopted a Shareholder Services Plan that may be used to pay Shareholder Servicing fees at an annual rate of up to 0.10% of each Fund’s average daily net assets attributable to Institutional Class shares and up to 0.25% of each Fund’s average daily net assets attributable to Class C shares.
The Board may temporarily reduce and/or eliminate the payment of Rule 12b-1 fees with respect to the U.S. Government Money Fund to assist the U.S. Government Money Fund’s efforts to maintain a $1.00 net asset value per share. Effective April 1, 2009, the Board of Trustees temporarily eliminated Rule 12b-1 fees for the Investor Class, Class A and Class C shares of the U.S. Government Money Fund, and the Shareholder Services fees for the Investor Class and Class C shares of the U.S. Government Money Fund. Any reduction and/or elimination of the U.S. Government Money Fund’s Rule 12b-1 fees may be reinstated by the Board at any time.
The expenses of the Funds’ Distribution Plans and Shareholder Services Plan are reflected as distribution and shareholder service fees in the Statement of Operations.
U.S. Government Money Fund Administrative Plan: The U.S. Government Money Fund has adopted an Administrative Plan with respect to its Institutional Class, Investor Class, Class A and Class C shares. Pursuant to the Administrative Plan,
the U.S. Government Money Fund will pay Forward Management for certain administrative, informational and support services to investors who may from time to time beneficially own Fund shares either directly or through omnibus accounts. The amount payable to Forward Management is up to 0.25% of the average daily net assets of the Institutional Class shares, Investor Class shares, Class A shares and Class C shares of the Fund, respectively; provided, however, that the Fund shall not directly or indirectly pay any distribution or non-distribution related amounts for the Investor Class shares, Class A shares or Class C shares that will be allocated under the Fund’s Distribution and Shareholder Services Plans or any non-distribution related amounts for the Investor Class shares that will be allocated under the Fund’s Administrative Plan. Effective May 1, 2012, Forward Management has entered into an agreement with the Fund to contractually waive through April 30, 2014 the Administrative Plan fees totaling 0.25% of the average daily net assets of the Institutional Class, Investor Class, Class A and Class C shares of the U.S. Government Money Fund. Pursuant to this agreement, the U.S. Government Money Fund agrees to pay Forward Management the amount of Administrative Fees that would have been payable by the Fund to Forward Management for a period of three years following the year in which the Administrative Fees were incurred, provided that any such reimbursement will not be made with respect to a class of the Fund if it, together with the payment of all other applicable fees and expenses, would cause the net yield of that class of the Fund to be less than an annualized yield of 0.01%.
As of June 30, 2013, the balances of recoupable Administrative Fees for the U.S. Government Money Fund were as follows:
| | | | | | | | | | | | |
| Fund | | 2012 | | | 2013 | | | Total | |
| U.S. Government Money Fund | | | | | | | | | | | | |
Class A | | $ | 1,930 | | | $ | 1,585 | | | $ | 3,515 | |
Class C | | | 3,559 | | | | 1,710 | | | | 5,269 | |
Institutional Class | | | 196,590 | | | | 103,072 | | | | 299,662 | |
Investor Class | | | 2,508 | | | | 1,874 | | | | 4,382 | |
The expenses of the U.S. Government Money Fund’s Administrative Plan are reflected as administrative service fees in the Statement of Operations.
Distributor, Administrator, Transfer Agent & Custodian
Forward Securities, LLC (the “Distributor”) serves as the Funds’ distributor. The Distributor acts as an agent for the Funds and the distributor of their shares.
ALPS Fund Services, Inc. (“AFS”) serves as the Funds’ administrator, transfer agent and dividend paying agent.
Citibank is the Funds’ custodian.
5. Trustee and Officer Fees
The Funds do not pay any compensation directly to the officers or trustees who are also trustees, officers or employees of Forward Management or its affiliates, except
Notes to Financial Statements (Unaudited)
as noted below. As of June 30, 2013, there were seven Trustees, six of whom are not “interested persons” of the Trust within the meaning of that term under the 1940 Act (each, an “Independent Trustee”). The Funds pay each Independent Trustee a retainer fee in the amount of $35,000 per year, $12,500 each per regular meeting for attendance in person, $9,000 each per regular meeting for attendance by telephone, $3,000 each for attendance in person at each special meeting that is not held in conjunction with a regular meeting, $2,250 each for attendance at a special telephonic meeting, and $1,000 each per day for participation in Trust-related meetings not held in conjunction with a meeting. The Chairman of the Board of Trustees, the Chairman of the Audit Committee and the Chairman of the Nominating Committee each receive a special retainer fee in the amount of $10,000, $10,000 and $7,500, respectively per year. The interested Trustee receives no compensation from the Funds. In addition, Independent Trustees receive reimbursements for reasonable out-of-pocket expenses incurred for their services as a Trustee.
The Funds’ Chief Compliance Officer is employed by Forward Management. The Funds pay an allocated portion of the Chief Compliance Officer’s compensation and other related expenses, subject to approval by the Board of Trustees.
6. Indemnifications
Under the Trust’s organizational documents, its officers and Trustees are indemnified against certain liability arising out of the performance of their duties with respect to the Funds. In addition, in the normal course of business, the Trust, on behalf of the Funds, enters into contracts with vendors and others that provide general indemnification. Each Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust and/or the Funds. Based on experience, however, the Funds expect the risk of loss to be remote.
7. Shares of Beneficial Interest
The capitalization of the Trust consists of an unlimited number of shares of beneficial interest with no par value per share. The Board of Trustees may establish additional Funds and classes of shares at any time in the future without shareholder approval. Holders of shares of the Funds of the Trust have one vote for each share held and a proportionate fraction of a vote for each fractional share. All shares issued and outstanding are fully paid and are non-assessable, transferable and redeemable at the option of the shareholder. Shares have no pre-emptive rights.
The following entities owned of record or beneficially, as of June 30, 2013, 5% or greater of any class of the Funds’ outstanding equity securities:
| | | | | | |
| Fund | | Name | | Percentage | |
Frontier Strategy Fund | | | | |
Investor Class | | Forward Management, LLC | | | 49.32 | % |
| | National Financial Services Corp. | | | 26.80 | % |
| | Pershing LLC | | | 8.56 | % |
| | Charles Schwab & Co., Inc. | | | 6.33 | % |
| | |
Institutional Class | | Charles Schwab & Co., Inc. | | | 54.44 | % |
| | BMO Harris Bank NA (M&I Trust) | | | 22.05 | % |
| | TD Ameritrade, Inc. | | | 10.61 | % |
| | Mid Atlantic Capital Corp | | | 6.15 | % |
| | |
Advisor Class | | Forward Management, LLC | | | 100.00 | % |
| | |
Class Z | | Gerlach & Co., LLC | | | 100.00 | % |
| |
| High Yield Bond Fund | | | | |
Investor Class | | Genworth Financial Trust | | | 85.39 | % |
| | Pershing LLC | | | 9.31 | % |
| | |
Institutional Class | | BMO Harris Bank NA (M&I Trust) | | | 47.05 | % |
| | Charles Schwab & Co., Inc. | | | 23.07 | % |
| | National Financial Services Corp. | | | 12.47 | % |
| | TD Ameritrade, Inc. | | | 5.48 | % |
| | | | | | |
| Fund | | Name | | Percentage | |
High Yield Bond Fund (continued) | | | | |
Class C | | Pershing LLC | | | 33.39 | % |
| | Wells Fargo Investments, LLC | | | 27.87 | % |
| | National Financial Services Corp. | | | 12.75 | % |
| | LPL Financial Services | | | 12.50 | % |
| | |
Class Z | | Gerlach & Co., LLC | | | 100.00 | % |
| |
| Investment Grade Fixed Income Fund | | | | |
Investor Class | | National Financial Services Corp. | | | 63.59 | % |
| | Pershing LLC | | | 24.20 | % |
| | |
Institutional Class | | LPL Financial Services | | | 33.24 | % |
| | Orrstown Bank | | | 32.82 | % |
| | HillsTrust | | | 14.45 | % |
| | |
Class Z | | Gerlach & Co., LLC | | | 100.00 | % |
| |
| Total MarketPlus Fund | | | | |
Investor Class | | E*Trade Clearing LLC | | | 41.65 | % |
| | Pershing LLC | | | 19.42 | % |
| | National Financial Services Corp. | | | 10.32 | % |
| | Scott & Stringfellow Inc | | | 6.92 | % |
Notes to Financial Statements (Unaudited)
| | | | | | |
| Fund | | Name | | Percentage | |
Total MarketPlus Fund (continued) | | | | |
Institutional Class | | Edgewood Services | | | 42.44 | % |
| | Charles Schwab & Co., Inc. | | | 27.77 | % |
| | National Financial Services Corp. | | | 5.42 | % |
| | |
Class Z | | Gerlach & Co., LLC | | | 100.00 | % |
| |
| US Government Money Fund | | | | |
Investor Class | | MSCS Financial Services Trust | | | 20.73 | % |
| | Trust Company of Stern Agee & Leech | | | 14.37 | % |
| | Forward Management, LLC | | | 8.26 | % |
| | |
Institutional Class | | Zions First National Bank Corp. | | | 86.13 | % |
| | American Marine Bank | | | 7.08 | % |
| | |
Class A | | Pershing LLC | | | 17.23 | % |
| | American Investors Company | | | 15.31 | % |
| | Securities America | | | 7.69 | % |
| | Cetera Investment Services | | | 5.79 | % |
| | BancWest Investment Service, Inc | | | 5.36 | % |
| | |
Class C | | Capitol Securities Management | | | 25.45 | % |
| | Morgan Stanley | | | 19.39 | % |
| | Mult-Financial Securites Corp. | | | 8.53 | % |
| | Securities America | | | 7.85 | % |
| | |
Class Z | | Zions First National Bank Corp. | | | 78.41 | % |
| | Gerlach & Co., LLC | | | 21.59 | % |
| |
| Balanced Allocation Fund | | | | |
Investor Class | | NFP Securities, Inc | | | 36.06 | % |
| | Baylake Bank Trust Department | | | 12.98 | % |
| | Bank of Edwardsville | | | 12.12 | % |
| | |
Institutional Class | | Orrstown Bank | | | 70.15 | % |
| | Trust Company of Stern Agee & Leech | | | 5.99 | % |
| | |
Class A | | Pershing LLC | | | 35.19 | % |
| | Charles Schwab & Co., Inc. | | | 21.12 | % |
| | LPL Financial Services | | | 7.52 | % |
| | |
Class C | | Pershing LLC | | | 23.47 | % |
| | Peoples Bank Asset Management & Trust Services | | | 19.16 | % |
| | Charles Schwab & Co., Inc. | | | 14.39 | % |
| | National Financial Services Corp. | | | 6.42 | % |
| |
| Growth & Income Allocation Fund | | | | |
Investor Class | | Bank of Edwardsville | | | 11.56 | % |
| | NFP Securities, Inc | | | 8.90 | % |
| | Baylake Bank Trust Department | | | 8.20 | % |
| | National Financial Services Corp. | | | 7.48 | % |
| | | | | | |
| Fund | | Name | | Percentage | |
Growth & Income Allocation Fund (continued) | |
Institutional Class | | Orrstown Bank | | | 39.06 | % |
| | GWFS Equities Inc. | | | 16.66 | % |
| | Pershing LLC | | | 7.27 | % |
| | |
Class A | | Pershing LLC | | | 40.51 | % |
| | Charles Schwab & Co., Inc. | | | 22.44 | % |
| | |
Class C | | Pershing LLC | | | 31.20 | % |
| | Charles Schwab & Co., Inc. | | | 12.54 | % |
| | Centier Bank/The First Company | | | 10.07 | % |
| |
| Growth Allocation Fund | | | | |
Investor Class | | Baylake Bank Trust Department | | | 39.23 | % |
| | Bank of Edwardsville | | | 7.68 | % |
| | The Investment Center, Inc. | | | 7.61 | % |
| | Raymond James Financial Services | | | 5.48 | % |
| | |
Institutional Class | | Orrstown Bank | | | 25.30 | % |
| | Trust Company of Stern Agee & Leech | | | 14.09 | % |
| | GWFS Equities Inc. | | | 7.87 | % |
| | |
Class A | | Pershing LLC | | | 44.37 | % |
| | Charles Schwab & Co., Inc. | | | 8.92 | % |
| | National Financial Services Corp. | | | 6.76 | % |
| | |
Class C | | Pershing LLC | | | 34.59 | % |
| | National Financial Services Corp. | | | 7.14 | % |
| | Centier Bank/The First Company | | | 5.87 | % |
| | Peoples Bank Asset Management & Trust Services | | | 5.28 | % |
| | Charles Schwab & Co., Inc. | | | 5.10 | % |
| |
| Income & Growth Allocation Fund | | | | |
Investor Class | | Trust Company of Stern Agee & Leech | | | 27.38 | % |
| | Baylake Bank Trust Department | | | 16.95 | % |
| | Randy L Copus & Associates, LLC | | | 16.30 | % |
| | Raymond James Financial Services | | | 12.80 | % |
| | Charles Schwab & Co., Inc. | | | 12.56 | % |
| | |
Institutional Class | | Orrstown Bank | | | 81.77 | % |
| | |
Class A | | Pershing LLC | | | 34.47 | % |
| | Charles Schwab & Co., Inc. | | | 17.86 | % |
| | Wells Fargo Investments, LLC | | | 5.88 | % |
| | Cetera Investment Services | | | 5.79 | % |
| | |
Class C | | Pershing LLC | | | 30.95 | % |
| | Wells Fargo Investments, LLC | | | 12.52 | % |
| | Charles Schwab & Co., Inc. | | | 9.31 | % |
| | HTK Hornor Townsend & Kent, Inc. | | | 8.61 | % |
| | Resource Horizons Group, LLC | | | 5.22 | % |
Notes to Financial Statements (Unaudited)
| | | | | | |
| Fund | | Name | | Percentage | |
Income Builder Fund | | | | |
Investor Class | | National Financial Services Corp. | | | 55.13 | % |
| | Pershing LLC | | | 10.25 | % |
| | Trust Company of Stern Agee & Leech | | | 7.78 | % |
| | TD Ameritrade, Inc. | | | 7.11 | % |
| | Randy L Copus & Associates, LLC | | | 6.95 | % |
| | |
Institutional Class | | Orrstown Bank | | | 67.22 | % |
| | |
Class A | | National Financial Services Corp. | | | 47.22 | % |
| | Pershing LLC | | | 26.44 | % |
| | LPL Financial Services | | | 14.63 | % |
| | |
Class C | | Pershing LLC | | | 51.40 | % |
| | Peoples Bank Asset Management & Trust Services | | | 11.35 | % |
| | Rice Pontes Capital Inc. | | | 6.66 | % |
| | Charles Schwab & Co., Inc. | | | 5.30 | % |
| | | | | | |
| Fund | | Name | | Percentage | |
Multi-Strategy Fund | | | | |
Investor Class | | LPL Financial Services | | | 43.03 | % |
| | National Financial Services Corp. | | | 19.83 | % |
| | Bank of Edwardsville | | | 13.67 | % |
| | Trust Company of Stern Agee & Leech | | | 5.92 | % |
| | |
Institutional Class | | Trust Company of Stern Agee & Leech | | | 30.47 | % |
| | GWFS Equities Inc. | | | 17.00 | % |
| | E*Trade Clearing LLC | | | 8.77 | % |
| | Charles Schwab & Co., Inc. | | | 8.34 | % |
| | SEI Private Trust Co. | | | 6.94 | % |
| | |
Class A | | Pershing LLC | | | 30.05 | % |
| | Charles Schwab & Co., Inc. | | | 24.46 | % |
| | |
Class C | | Pershing LLC | | | 37.57 | % |
| | LPL Financial Services | | | 12.18 | % |
| | Centier Bank/The First Company | | | 6.99 | % |
| | Charles Schwab & Co., Inc. | | | 6.09 | % |
8. Purchases and Sales of Investments
Investment transactions for the six months ended June 30, 2013, excluding U.S. Government Obligations, short-term investments and short sales, were as follows:
| | | | | | | | |
| Fund | | Cost of Investments Purchased | | | Proceeds from Investments Sold | |
Frontier Strategy Fund | | $ | 15,052,672 | | | $ | 5,601,366 | |
High Yield Bond Fund | | | 147,217,393 | | | | 151,095,856 | |
Investment Grade Fixed-Income Fund | | | 2,655,516 | | | | 18,883,167 | |
Total MarketPlus Fund | | | 51,141,602 | | | | 53,883,869 | |
Balanced Allocation Fund | | | 8,675,251 | | | | 23,514,581 | |
Growth & Income Allocation Fund | | | 14,975,282 | | | | 25,205,777 | |
Growth Allocation Fund | | | 16,825,257 | | | | 24,948,004 | |
Income & Growth Allocation Fund | | | 3,400,149 | | | | 50,230,034 | |
Income Builder Fund | | | 13,425,000 | | | | 10,043,522 | |
Multi-Strategy Fund | | | 9,160,635 | | | | 14,275,569 | |
Investment transactions in U.S. Government Obligations for the six months ended June 30, 2013 were as follows:
| | | | | | | | |
| Fund | | Cost of Investments Purchased | | | Proceeds from Investments Sold | |
Frontier Strategy Fund | | $ | 14,120,616 | | | $ | 10,800,390 | |
Investment Grade Fixed-Income Fund | | | 32,081,246 | | | | 27,838,307 | |
Notes to Financial Statements (Unaudited)
9. Tax Basis Information
Tax Basis of Investments: As of June 30, 2013, the aggregate cost of investments, gross unrealized appreciation/ (depreciation) and net unrealized appreciation/ (depreciation) for Federal tax purposes was as follows:
| | | | | | | | | | | | | | | | |
| Fund | | Cost of
Investments | | | Gross
Unrealized
Appreciation | | | Gross
Unrealized
Depreciation | | | Net Unrealized
Appreciation/
(depreciation) | |
Frontier Strategy Fund | | $ | 60,591,322 | | | $ | 241,427 | | | $ | (400,678 | ) | | $ | (159,251 | ) |
High Yield Bond Fund | | | 123,290,121 | | | | 2,177,590 | | | | (1,834,897 | ) | | | 342,693 | |
Investment Grade Fixed-Income Fund | | | 40,364,719 | | | | 1,153,636 | | | | (8,536,861 | ) | | | (7,383,225 | ) |
Total MarketPlus Fund | | | 24,820,153 | | | | 132,076 | | | | (159,332 | ) | | | (27,256 | ) |
U.S. Government Money Fund | | | 95,213,700 | | | | 0 | | | | 0 | | | | 0 | |
Balanced Allocation Fund | | | 28,722,963 | | | | 1,464,962 | | | | (519,112 | ) | | | 945,850 | |
Growth & Income Allocation Fund | | | 37,571,383 | | | | 1,111,512 | | | | (775,219 | ) | | | 336,293 | |
Growth Allocation Fund | | | 35,105,555 | | | | 1,171,225 | | | | (684,486 | ) | | | 486,739 | |
Income & Growth Allocation Fund | | | 16,970,503 | | | | 1,020,605 | | | | (128,750 | ) | | | 891,855 | |
Income Builder Fund | | | 20,535,588 | | | | 490,204 | | | | (411,419 | ) | | | 78,785 | |
Multi-Strategy Fund | | | 12,993,834 | | | | 271,515 | | | | (404,053 | ) | | | (132,538 | ) |
Capital Losses: As of December 31, 2012, the following Funds had available for Federal income tax purposes unused capital losses as follows:
Pre-Enactment Capital Losses
| | | | | | | | | | | | | | | | |
| Fund | | Expiring in
2015 | | | Expiring in 2016 | | | Expiring in 2017 | | | Expiring in 2018 | |
High Yield Bond Fund | | | — | | | | — | | | $ | 162,556 | | | | — | |
Investment Grade Fixed-Income Fund | | | — | | | $ | 1,514,123 | | | | — | | | $ | 7,106,398 | |
Total MarketPlus Fund | | | — | | | | — | | | | 13,136,742 | | | | — | |
U.S. Government Money Fund | | | — | | | | — | | | | 345 | | | | — | |
Income Builder Fund | | $ | 2,272 | | | | 207,103 | | | | 32,036 | | | | — | |
Capital loss carryovers used during the period ended December 31, 2012, were:
| | | | |
| Fund | | Amount | |
High Yield Bond Fund | | $ | 2,664,783 | |
Investment Grade Fixed-Income Fund | | | 2,251,234 | |
Total MarketPlus Fund | | | 5,827,403 | |
U.S. Government Money Fund | | | 12,427 | |
Income Builder Fund | | | 140,989 | |
On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (“the Act”) was enacted. Certain of the enacted provisions include:
Post enactment losses may now be carried forward indefinitely, but must retain the character of the original loss. However, such losses must be utilized prior to the pre-enactment capital loss, which increases the likelihood that the pre-enactment capital losses will expire unused. Under the pre-enactment law, capital losses could be carried forward for eight years and carried forward as short-term capital losses irrespective of the character of the original loss. The Act contains simplification provisions, which are aimed at preventing disqualification of a Regulated Investment Company (“RIC”) for “inadvertent” failures of the asset diversification and/or qualifying income tests. Additionally, the Act exempts RICs from the preferential dividend rule and repeals the 60-day designation requirement for certain types of pay-through income and gains.
Finally, the Act contains several provisions aimed at preserving the character of distributions made by a fiscal year RIC during the portion of its taxable year ending after October 31 or December 31, reducing the circumstances under which a RIC might be required to file amended Forms 1099 to restate previously reported distributions.
The Funds have adopted the noted provisions of the Act for the period ending June 30, 2013.
Notes to Financial Statements (Unaudited)
Post-Enactment Capital Losses*
Capital losses as of December 31, 2012 deferred to the next tax year were as follows:
| | | | | | | | |
| Fund | | Short-Term | | | Long-Term | |
Frontier Strategy Fund | | $ | 3,212,541 | | | $ | 1,309,876 | |
Balanced Allocation Fund | | | 1,659,186 | | | | 2,636,146 | |
Growth & Income Allocation Fund | | | 1,875,794 | | | | 3,819,092 | |
Growth Allocation Fund | | | 2,368,890 | | | | 6,118,344 | |
Multi-Strategy Fund | | | 1,394,151 | | | | 2,909,207 | |
The Funds elect to defer to the period ending December 31, 2013 capital losses recognized during the period November 1, 2012 to December 31, 2012 in the amount of:
| | | | |
| Fund | | Amount | |
Frontier Strategy Fund | | $ | 1,105,802 | |
High Yield Bond Fund | | | 3,434 | |
Investment Grade Fixed-Income Fund | | | 511,325 | |
Growth & Income Allocation Fund | | | 3,197 | |
Growth Allocation Fund | | | 4,804 | |
Income Builder Fund | | | 8,693 | |
*Post-Enactment Capital Losses arise in fiscal years beginning after December 22, 2010, and exclude any elective late-year capital losses (during the period November 1st to December 31st) deferred for the current fiscal year. As a result of the enactment of the Act, pre-enactment capital loss carry forwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term losses rather than being considered all short-term as under previous law.
Tax Basis of Distributions to Shareholders: Income and long-term capital gain distributions are determined in accordance with Federal income tax regulations, which may differ from GAAP. The amounts and characteristics of tax basis distributions and composition of distributable earnings/(accumulated losses) are finalized at fiscal year-end; accordingly, tax basis balances have not been determined as of June 30, 2013.
The tax character of distributions paid for the year ended December 31, 2012, were as follows:
| | | | | | | | | | | | |
| Fund | | Ordinary
Income Total | | | Long-Term
Capital Total | | | Return of
Capital | |
Frontier Strategy Fund | | $ | 4,500,001 | | | | — | | | | — | |
High Yield Bond Fund | | | 8,999,289 | | | | — | | | | — | |
Investment Grade Fixed-Income Fund | | | 2,260,972 | | | | — | | | | — | |
U.S. Government Money Fund | | | 64,988 | | | | — | | | | — | |
Balanced Allocation Fund | | | 1,346,149 | | | | — | | | | — | |
Growth & Income Allocation Fund | | | 1,340,055 | | | | — | | | | — | |
Growth Allocation Fund | | | 1,469,920 | | | | — | | | | — | |
Income & Growth Allocation Fund | | | 2,087,833 | | | | — | | | | — | |
Income Builder Fund | | | 912,572 | | | | — | | | | — | |
Multi-Strategy Fund | | | 639,658 | | | | — | | | | — | |
The Funds may own shares in certain foreign investment entities, referred to under U.S. tax law as “passive foreign investment companies” (PFICs). The Funds may elect to mark-to-market annually the shares of each PFIC and may be required to include in distributable income to shareholders any such mark-to-market gains.
Notes to Financial Statements (Unaudited)
10. Affiliated Companies
Each Allocation Fund may invest in certain securities that are considered affiliated companies. As defined by the 1940 Act, an affiliated company is one in which a Fund owns 5% or more of the outstanding voting securities or a company that is under common ownership or control.
The purchase, sales, dividend income, capital gains, return of capital distributions received, shares and value of investment of each Allocation Fund in affiliated companies for the six months ended June 30, 2013 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balanced Allocation Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Beginning Shares | | | Gross Purchases | | | Gross Sales | | | Ending Shares | | | Value 6/30/13 | | | Dividend Income | | | Realized Gain/(Loss)(a) | |
INVESTMENT COMPANIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward Funds—Class Z shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward Commodity Long/Short Strategy Fund(b) | | | 98,015 | | | | 57,725 | | | | (44,947 | ) | | | 110,793 | | | $ | 2,476,208 | | | | — | | | $ | (198,700 | ) |
Forward Frontier Strategy Fund | | | 95,090 | | | | 42,817 | | | | (39,263 | ) | | | 98,644 | | | | 1,062,399 | | | | — | | | | 19,237 | |
Forward High Yield Bond Fund | | | 252,520 | | | | — | | | | (120,705 | ) | | | 131,815 | | | | 1,351,108 | | | $ | 54,239 | | | | 107,249 | |
Forward Investment Grade Fixed-Income Fund | | | 742,314 | | | | 25,908 | | | | (177,080 | ) | | | 591,142 | | | | 6,597,140 | | | | 143,184 | | | | 169,086 | |
Forward Managed Futures Strategy Fund(b) | | | 108,287 | | | | — | | | | (22,841 | ) | | | 85,446 | | | | 1,796,960 | | | | — | | | | (101,719 | ) |
Forward Strategic Alternatives Fund(c) | | | 225,081 | | | | 26 | | | | (225,107 | ) | | | — | | | | — | | | | 251 | | | | 81,672 | |
Forward Total MarketPlus Fund | | | 14,424 | | | | 185,895 | | | | (100,160 | ) | | | 100,159 | | | | 3,216,095 | | | | — | | | | 148,430 | |
Forward Funds—Institutional Class shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward EM Corporate Debt Fund(b) | | | 606,365 | | | | — | | | | (298,358 | ) | | | 308,007 | | | | 2,882,943 | | | | 103,520 | | | | 25,378 | |
Forward International Dividend Fund(b) | | | 1,319,433 | | | | 35,886 | | | | (558,568 | ) | | | 796,751 | | | | 6,134,980 | | | | 197,608 | | | | 337,087 | |
Forward International Real Estate Fund(b) | | | 42,610 | | | | — | | | | (8,170 | ) | | | 34,440 | | | | 559,994 | | | | 12,710 | | | | 8,240 | |
Forward Real Estate Fund(b) | | | 46,155 | | | | — | | | | (17,130 | ) | | | 29,025 | | | | 411,866 | | | | 2,048 | | | | 26,650 | |
Forward Select EM Dividend Fund(b) | | | 245,616 | | | | 29,890 | | | | (136,801 | ) | | | 138,705 | | | | 3,179,120 | | | | 77,150 | | | | 251,553 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | $ | 29,668,813 | | | $ | 590,710 | | | $ | 874,163 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Growth & Income Allocation Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Beginning Shares | | | Gross Purchases | | | Gross Sales | | | Ending Shares | | | Value 6/30/13 | | | Dividend Income | | | Realized Gain/(Loss)(a) | |
INVESTMENT COMPANIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward Funds—Class Z shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward Commodity Long/Short Strategy Fund(b) | | | 104,028 | | | | 62,340 | | | | (34,341 | ) | | | 132,027 | | | $ | 2,950,796 | | | | — | | | $ | (133,525 | ) |
Forward Frontier Strategy Fund | | | 139,754 | | | | 66,603 | | | | (45,854 | ) | | | 160,504 | | | | 1,728,624 | | | | — | | | | 26,550 | |
Forward High Yield Bond Fund | | | 165,678 | | | | — | | | | (71,591 | ) | | | 94,087 | | | | 964,394 | | | $ | 36,435 | | | | 51,277 | |
Forward Investment Grade Fixed-Income Fund | | | 471,933 | | | | 17,271 | | | | (49,354 | ) | | | 439,850 | | | | 4,908,729 | | | | 96,232 | | | | 15,355 | |
Forward Managed Futures Strategy Fund(b) | | | 115,510 | | | | — | | | | (12,039 | ) | | | 103,471 | | | | 2,175,988 | | | | — | | | | (53,983 | ) |
Forward Strategic Alternatives Fund(c) | | | 240,435 | | | | 29 | | | | (240,464 | ) | | | — | | | | — | | | | 282 | | | | (411,691 | ) |
Forward Total MarketPlus Fund | | | 21,637 | | | | 292,903 | | | | (144,526 | ) | | | 170,013 | | | | 5,459,128 | | | | — | | | | 197,808 | |
Forward Funds—Institutional Class shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward EM Corporate Debt Fund(b) | | | 386,832 | | | | — | | | | (151,692 | ) | | | 235,140 | | | | 2,200,906 | | | | 71,234 | | | | (31,137 | ) |
Forward International Dividend Fund(b) | | | 1,951,997 | | | | 209,331 | | | | (772,960 | ) | | | 1,388,368 | | | | 10,690,432 | | | | 315,864 | | | | 319,504 | |
Forward International Real Estate Fund(b) | | | 46,054 | | | | 5,668 | | | | (9,606 | ) | | | 42,116 | | | | 684,812 | | | | 15,543 | | | | 7,101 | |
Forward Real Estate Fund(b) | | | 49,186 | | | | — | | | | (13,693 | ) | | | 35,493 | | | | 503,644 | | | | 2,334 | | | | 21,444 | |
Forward Select EM Dividend Fund(b) | | | 360,255 | | | | 78,858 | | | | (193,030 | ) | | | 246,083 | | | | 5,640,223 | | | | 125,165 | | | | 356,083 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | $ | 37,907,676 | | | $ | 663,088 | | | $ | 364,786 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Notes to Financial Statements (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Growth Allocation Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Beginning Shares | | | Gross Purchases | | | Gross Sales | | | Ending Shares | | | Value 6/30/13 | | | Dividend Income | | | Realized Gain/(Loss)(a) | |
INVESTMENT COMPANIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward Funds—Class Z shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward Commodity Long/Short Strategy Fund(b) | | | — | | | | 52,775 | | | | (8,110 | ) | | | 44,665 | | | $ | 998,266 | | | | — | | | $ | 5,433 | |
Forward Frontier Strategy Fund | | | 151,226 | | | | 76,118 | | | | (48,288 | ) | | | 179,056 | | | | 1,928,435 | | | | — | | | | 29,791 | |
Forward High Yield Bond Fund | | | 78,895 | | | | — | | | | (28,517 | ) | | | 50,378 | | | | 516,373 | | | $ | 17,890 | | | | 37,923 | |
Forward Investment Grade Fixed-Income Fund | | | 229,216 | | | | 23,727 | | | | (32,207 | ) | | | 220,736 | | | | 2,463,415 | | | | 46,831 | | | | 3,242 | |
Forward Managed Futures Strategy Fund(b) | | | 104,226 | | | | — | | | | (9,637 | ) | | | 94,589 | | | | 1,989,204 | | | | — | | | | (43,328 | ) |
Forward Strategic Alternatives Fund(c) | | | 219,506 | | | | 26 | | | | (219,532 | ) | | | — | | | | — | | | | 257 | | | | (407,461 | ) |
Forward Total MarketPlus Fund | | | 23,442 | | | | 332,245 | | | | (170,365 | ) | | | 185,322 | | | | 5,950,678 | | | | — | | | | 201,486 | |
Forward Funds—Institutional Class shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward EM Corporate Debt Fund(b) | | | 191,352 | | | | — | | | | (70,842 | ) | | | 120,510 | | | | 1,127,977 | | | | 35,694 | | | | 13,832 | |
Forward International Dividend Fund(b) | | | 2,092,649 | | | | 276,602 | | | | (847,106 | ) | | | 1,522,145 | | | | 11,720,520 | | | | 345,045 | | | | 344,795 | |
Forward International Real Estate Fund(b) | | | 97,416 | | | | 5,510 | | | | (14,898 | ) | | | 88,028 | | | | 1,431,328 | | | | 32,485 | | | | 12,011 | |
Forward Real Estate Fund(b) | | | 111,007 | | | | — | | | | (13,731 | ) | | | 97,276 | | | | 1,380,351 | | | | 6,275 | | | | 20,957 | |
Forward Select EM Dividend Fund(b) | | | 385,993 | | | | 83,627 | | | | (204,099 | ) | | | 265,521 | | | | 6,085,747 | | | | 136,270 | | | | 369,637 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | $ | 35,592,294 | | | $ | 620,747 | | | $ | 588,317 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Income & Growth Allocation Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Beginning Shares | | | Gross Purchases | | | Gross Sales | | | Ending Shares | | | Value 6/30/13 | | | Dividend Income | | | Realized Gain/(Loss)(a) | |
INVESTMENT COMPANIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward Funds—Class Z shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward Commodity Long/Short Strategy Fund(b) | | | 81,382 | | | | — | | | | (29,729 | ) | | | 51,653 | | | $ | 1,154,454 | | | | — | | | $ | (39,115 | ) |
Forward Frontier Strategy Fund | | | 91,730 | | | | 14,272 | | | | (70,567 | ) | | | 35,435 | | | | 381,637 | | | | — | | | | 35,359 | |
Forward High Yield Bond Fund | | | 544,243 | | | | — | | | | (419,944 | ) | | | 124,299 | | | | 1,274,060 | | | $ | 61,815 | | | | 332,672 | |
Forward Investment Grade Fixed-Income Fund | | | 1,627,384 | | | | — | | | | (1,076,754 | ) | | | 550,630 | | | | 6,145,027 | | | | 155,041 | | | | 569,900 | |
Forward Managed Futures Strategy Fund(b) | | | 155,965 | | | | — | | | | (101,582 | ) | | | 54,383 | | | | 1,143,665 | | | | — | | | | (76,424 | ) |
Forward Strategic Alternatives Fund(c) | | | 332,634 | | | | 15 | | | | (332,649 | ) | | | — | | | | — | | | | 149 | | | | (250,908 | ) |
Forward Total MarketPlus Fund | | | 12,622 | | | | 75,713 | | | | (50,180 | ) | | | 38,155 | | | | 1,225,150 | | | | — | | | | 53,123 | |
Forward Funds—Institutional Class shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward EM Corporate Debt Fund(b) | | | 1,326,101 | | | | 20,101 | | | | (1,059,241 | ) | | | 286,961 | | | | 2,685,953 | | | | 90,379 | | | | (136,707 | ) |
Forward International Dividend Fund(b) | | | 1,221,271 | | | | 47,846 | | | | (967,208 | ) | | | 301,909 | | | | 2,324,701 | | | | 76,646 | | | | 530,836 | |
Forward International Real Estate Fund(b) | | | 27,857 | | | | — | | | | (16,349 | ) | | | 11,508 | | | | 187,117 | | | | 4,247 | | | | 16,963 | |
Forward Real Estate Fund(b) | | | 24,624 | | | | — | | | | (14,535 | ) | | | 10,089 | | | | 143,165 | | | | 608 | | | | 10,534 | |
Forward Select EM Dividend Fund(b) | | | 225,855 | | | | 13,883 | | | | (187,495 | ) | | | 52,244 | | | | 1,197,429 | | | | 28,040 | | | | 328,567 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | $ | 17,862,358 | | | $ | 416,925 | | | $ | 1,374,799 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Notes to Financial Statements (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Income Builder Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
Shares | | | Gross Purchases | | | Gross Sales | | | Ending Shares | | | Value 6/30/13 | | | Dividend Income | | | Realized Gain/(Loss)(a) | |
INVESTMENT COMPANIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward Funds—Class Z shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward High Yield Bond Fund | | | 422,485 | | | | 130,923 | | | | (349,623 | ) | | | 203,786 | | | $ | 2,088,802 | | | $ | 51,268 | | | $ | 141,236 | |
Forward Funds—Institutional Class shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward EM Corporate Debt Fund(b) | | | 440,297 | | | | 169,515 | | | | (60,407 | ) | | | 549,405 | | | | 5,142,433 | | | | 135,541 | | | | (21,588 | ) |
Forward Global Infrastructure Fund(b) | | | 44,379 | | | | 167,443 | | | | (62,429 | ) | | | 149,393 | | | | 3,114,851 | | | | 33,349 | | | | (15,778 | ) |
Forward International Dividend Fund(b) | | | 453,919 | | | | 508,378 | | | | (302,212 | ) | | | 660,086 | | | | 5,082,665 | | | | 113,955 | | | | 158,467 | |
Forward Select EM Dividend Fund(b) | | | — | | | | 44,781 | | | | (44,781 | ) | | | — | | | | — | | | | 3,514 | | | | (6,478 | ) |
Forward Select Income Fund(b) | | | 181,169 | | | | 59,316 | | | | (33,060 | ) | | | 207,425 | | | | 5,185,622 | | | | 152,541 | | | | 19,008 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | $ | 20,614,373 | | | $ | 490,169 | | | $ | 274,866 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Multi-Strategy Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Beginning Shares | | | Gross Purchases | | | Gross Sales | | | Ending Shares | | | Value 6/30/13 | | | Dividend Income | | | Realized Gain/(Loss)(a) | |
INVESTMENT COMPANIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward Funds—Class Z shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward Frontier Strategy Fund | | | 90,026 | | | | 23,884 | | | | (25,098 | ) | | | 88,812 | | | $ | 956,503 | | | | — | | | $ | 11,831 | |
Forward Managed Futures Strategy Fund(b) | | | — | | | | 41,780 | | | | (9,617 | ) | | | 32,164 | | | | 676,400 | | | | — | | | | 1,800 | |
Forward Total MarketPlus Fund | | | 363 | | | | 6,447 | | | | — | | | | 6,810 | | | | 218,683 | | | | — | | | | — | |
Forward Funds—Institutional Class shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward Emerging Markets Fund(b) | | | — | | | | 226,009 | | | | (48,190 | ) | | | 177,819 | | | | 1,904,436 | | | | — | | | | 9,184 | |
Forward Endurance Long/Short Fund(b) | | | 32,003 | | | | — | | | | (6,843 | ) | | | 25,160 | | | | 660,711 | | | | — | | | | 3,259 | |
Forward Focus Fund(d) | | | 87,179 | | | | — | | | | (87,179 | ) | | | — | | | | — | | | | — | | | | 71,273 | |
Forward Global Credit Long/Short Fund(b) | | | 115,888 | | | | — | | | | (56,786 | ) | | | 59,102 | | | | 1,344,580 | | | $ | 20,777 | | | | (78,591 | ) |
Forward Global Dividend Fund(b) | | | 154,826 | | | | — | | | | (154,826 | ) | | | — | | | | — | | | | 1,831 | | | | 3,545 | |
Forward Global Infrastructure Fund(b) | | | — | | | | 24,362 | | | | (5,510 | ) | | | 18,852 | | | | 393,069 | | | | 4,208 | | | | 1,265 | |
Forward International Dividend Fund(b) | | | 660,772 | | | | — | | | | (412,210 | ) | | | 248,562 | | | | 1,913,927 | | | | 66,049 | | | | 280,178 | |
Forward International Real Estate Fund(b) | | | — | | | | 19,477 | | | | (5,457 | ) | | | 14,020 | | | | 227,969 | | | | 5,174 | | | | 1,944 | |
Forward International Small Companies Fund(b) | | | 121,982 | | | | — | | | | (98,579 | ) | | | 23,403 | | | | 342,625 | | | | — | | | | 97,761 | |
Forward Real Estate Long/Short Fund(b) | | | — | | | | 52,760 | | | | (8,789 | ) | | | 43,971 | | | | 1,307,699 | | | | 6,488 | | | | 14,227 | |
Forward Select EM Dividend Fund(b) | | | 122,812 | | | | — | | | | (122,812 | ) | | | — | | | | — | | | | 4,587 | | | | 242,857 | |
Forward Select Income Fund(b) | | | — | | | | 43,880 | | | | (7,061 | ) | | | 36,818 | | | | 920,460 | | | | 28,983 | | | | 1,411 | |
Forward Tactical Enhanced Fund(b) | | | 31,622 | | | | 63,780 | | | | (19,344 | ) | | | 76,058 | | | | 1,994,234 | | | | — | | | | (4,975 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | $ | 12,861,296 | | | $ | 138,097 | | | $ | 656,970 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(a) Includes realized capital gains distributions received from the affiliated underlying funds.
(b) The Forward Commodity Long/Short Strategy Fund, the Forward EM Corporate Debt Fund, the Forward Emerging Markets Fund, the Forward Endurance Long/Short Fund, the Forward Global Credit Long/Short Fund, the Forward Global Dividend Fund, the Forward Global Infrastructure Fund, the Forward International Dividend Fund, the Forward International Real Estate Fund, the Forward International Small Companies Fund, the Forward Managed Futures Strategy Fund, the Forward Real Estate Fund, the Forward Real Estate Long/Short Fund, the Forward Select EM Dividend Fund, the Forward Select Income Fund and the Forward Tactical Enhanced Fund’s June 30, 2013 Semi-Annual Report may be obtained at www.forwardinvesting.com.
(c) Effective close of business on April 30, 2013, the Forward Strategic Alternatives Fund was liquidated per the terms of the Board approved plan of liquidation.
(d) Effective close of business on April 30, 2013, the Forward Focus Fund was liquidated per the terms of the Board approved plan of liquidation.
Notes to Financial Statements (Unaudited)
11. Portfolio of Investments
The investment categories used in this report may differ from the industry classification categories used for determining compliance with industry concentration restrictions and requirements applicable to each of the Funds.
12. Subsequent Events
The Funds have evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date the financial statements were issued. Based on this evaluation, no adjustments were required to the financial statements as of June 30, 2013.
13. Legal Proceedings
Lehman Brothers Holdings Inc. Adversary Proceeding: The Investment Grade Fixed-Income Fund is a named noteholder defendant in connection with a pending adversary proceeding in the United States Bankruptcy Court for the Southern District of
New York (Docket No. 10-03547 (JMP)) (the “Adversary Proceeding”). The Adversary Proceeding is brought by Lehman Brothers Special Financing Inc. and names as defendants the issuers of certain asset-backed securities (the “Issuer Defendants”), the trustees for such securities, and certain of the investors in the securities who allegedly received distributions that the plaintiff is asserting should have been distributed to the plaintiff. The claims alleged include preference and avoidance claims under Sections 547, 548 and 549 of the Bankruptcy Code, and all seek return of the distributions received by the defendants. The complaint does not contain a specific monetary demand concerning the Investment Grade Fixed-Income Fund. The Adversary Proceeding is currently stayed pursuant to an order of the Bankruptcy Court. The Investment Grade Fixed-Income Fund has been advised that it received, in the aggregate of $1,256,224 from one Issuer Defendant. At this stage in the proceedings, the Investment Grade Fixed-Income Fund is not able to make a reliable prediction as to the outcome of the lawsuit or the effect, if any, on the Investment Grade Fixed-Income Fund’s net asset value.
The Funds file a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Form N-Q was filed for the quarter ended March 31, 2013. The Funds’ Form N-Q is available on the SEC’s website at www.sec.gov and may also be reviewed and copied at the Commission’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
A description of the Funds’ proxy voting policies and procedures and how the Funds voted proxies relating to portfolio securities during the most recent 12 month period ended June 30, 2013 are available (i) without charge, upon request, by calling 1-800-999-6809 and (ii) on the Securities and Exchange Commission’s website at www.sec.gov.
Investment Advisor
Forward Management, LLC
Administrator
ALPS Fund Services, Inc.
Distributor
Forward Securities, LLC
Counsel
Dechert LLP
Independent Registered Public Accounting Firm
PricewaterhouseCoopers LLP
Custodian
Citibank, N.A.
Transfer Agent
ALPS Fund Services, Inc.
Forward Funds
P.O. Box 1345
Denver, CO 80201
(800) 999-6809
www.forwardinvesting.com
Forward Commodity Long/Short Strategy Fund
Forward Credit Analysis Long/Short Fund
Forward EM Corporate Debt Fund
Forward Emerging Markets Fund
Forward Endurance Long/Short Fund
Forward Frontier Strategy Fund
Forward Global Credit Long/Short Fund
Forward Global Dividend Fund
Forward Global Infrastructure Fund
Forward High Yield Bond Fund
Forward International Dividend Fund
Forward International Real Estate Fund
Forward International Small Companies Fund
Forward Investment Grade Fixed-Income Fund
Forward Managed Futures Strategy Fund
Forward Real Estate Fund
Forward Real Estate Long/Short Fund
Forward Select EM Dividend Fund
Forward Select Income Fund
Forward Small Cap Equity Fund
Forward Tactical Enhanced Fund
Forward Tactical Growth Fund
Forward Total MarketPlus Fund
Forward U.S. Government Money Fund
Allocation Funds
Forward Balanced Allocation Fund
Forward Growth & Income Allocation Fund
Forward Growth Allocation Fund
Forward Income & Growth Allocation Fund
Forward Income Builder Fund
Forward Multi-Strategy Fund
| | | | |
| Printed on paper containing recycled content using soy-based inks. | | | SAR FSD000217 083114 | |
Not applicable to semi-annual report.
| Item 3. | Audit Committee Financial Expert. |
Not applicable to semi-annual report.
| Item 4. | Principal Accountant Fees and Services. |
Not applicable to semi-annual report.
| Item 5. | Audit Committee of Listed Registrants. |
Not applicable.
| | (a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the Reports to Stockholders filed under Item 1 of Form N-CSR. |
| Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Not applicable.
| Item 8. | Portfolio Managers of Closed-End Management Investment Companies. |
Not applicable.
| Item 9. | Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchases. |
Not applicable.
| Item 10. | Submission of Matters to Vote of Security Holders. |
No material changes to the procedures by which the shareholders may recommend nominees to the registrant’s Board of Trustees have been implemented after the registrant’s last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.
| Item 11. | Controls and Procedures. |
| | (a) | The registrant’s principal executive and principal financial officers, or persons |
| | performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
| | (b) | No changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) occurred during the registrant’s second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
| | (a)(1) | Not applicable to semi-annual report. |
| | (a)(2) | Certifications pursuant to Rule 30a-2(a) under the Act (17 CFR 30a-2(a)) are attached hereto. |
| | (b) | Certifications pursuant to Rule 30a-2(b) under the Act (17 CFR 30a-2(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) are attached hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
FORWARD FUNDS
| | |
| By: | | /s/ J. Alan Reid, Jr. |
| | J. Alan Reid, Jr. |
| | President & Trustee |
| |
| Date: | | September 5, 2013 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| | |
| By: | | /s/ J. Alan Reid, Jr. |
| | J. Alan Reid, Jr. |
| | President & Trustee |
| |
| Date: | | September 5, 2013 |
| | |
| By: | | /s/ Barbara Tolle |
| | Barbara Tolle |
| | Treasurer |
| |
| Date: | | September 5, 2013 |
