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)
John A. Blaisdell, 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, 2015
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 Dynamic Income Fund, Forward EM Corporate Debt Fund, Forward Emerging Markets Fund, Forward Frontier Strategy 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 Real Estate Fund, Forward Real Estate Long/Short Fund, Forward Select EM Dividend Fund, Forward Select Income Fund, Forward Select Opportunity 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).
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 | | | | Semi-Annual Report June 30, 2015 |
| | | | Forward Credit Analysis Long/Short Fund Forward Dynamic Income Fund Forward EM Corporate Debt Fund Forward Emerging Markets 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 |
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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, 2015
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| Shareholder Update | | June 30, 2015 |
| | |
A MESSAGE FROM: | | John A. Blaisdell Chief Executive Officer |
Dear Shareholder:
We at Salient have long emphasized the importance of building truly diversified portfolios that are more resilient, more adaptive and better aligned with investor goals than traditional stock and bond portfolios. The economic and market developments globally over the last six months show why effective portfolio diversification remains one of our key tenets.
U.S. equity market gains have slowed, some overseas stock markets are outpacing the U.S. and we remain in a low-interest-rate environment. Economic policy is continually evolving in the U.S. and overseas, leading to higher market volatility and rapid economic regime shifts that, at times, feel more like tectonic shifts. This climate leaves investors challenged, once again, to find tools to build more diversified portfolios that will weather these regime shifts over time.
The big news from Salient is that we have dramatically expanded our resources for putting smart diversification and risk management principles into action. At the beginning of June we completed our acquisition of Forward Management, an asset manager with a wide-ranging set of alternative strategies that complement our own.
Beyond doubling the size of our investment team, this move realizes our vision of Salient + Forward as a single source of portfolio solutions. Our expanded capabilities include:
| | • | | Global and tactical allocation strategies with built-in adaptability to economic and market change. |
| | • | | Real estate and infrastructure strategies that complement Salient’s strengths in master limited partnerships. |
| | • | | International dividend strategies that serve both income and growth objectives. |
| | • | | Other specialized alternative and niche strategies, including frontier equities, emerging market debt, credit long/short and a variety of hedge fund and private equity strategies. |
We are excited to be able to offer such a far-reaching set of core strategies with the potential to generate income and enhance alpha at a time when investors urgently need more innovative, risk-based and flexible solutions. Please stay tuned for further details as we continue to integrate the Salient and Forward teams in the weeks and months ahead.
In closing, I want to thank you, our shareholders, for the opportunity to be your investment partner. We will strive to keep earning your trust as we continue to advance and evolve our capabilities.
Sincerely,
John A. Blaisdell
Chief Executive Officer
Salient + 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.
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.
Alpha is a technical risk ratio that shows a fund’s excess return relative to the performance of its benchmark index.
Volatility is a statistical measure of the dispersion of returns for a given security or market index.
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| Shareholder Update | | June 30, 2015 |
| | |
A MESSAGE FROM: | | Lee Partridge Chief Investment Officer |
Dear Shareholder:
As we enter the second half of the year we observe that investors are confronted by a number of ongoing challenges that have characterized the global economy since the financial crisis of 2008. These challenges include severe fiscal imbalances across peripheral European countries, a large overhang of global debt, waning growth in China, the divergence of global central bank activity across developed market regions and a continued wealth divide within the United States. As the philosopher Plato of ancient Greece so eloquently stated nearly 2400 years ago, “Excess generally causes reaction, and produces a change in the opposite direction, whether it be in the seasons, or in individuals, or in governments.”
The backdrop to a strong dollar
In the wake of these challenges, the U.S. dollar continued its appreciation versus most major currencies in the first half of 2015 as the Federal Reserve adopted a more restrictive monetary stance relative to other major central banks. The European Central Bank began implementing quantitative easing measures in March with a commitment to purchase €1.1 trillion worth of assets. Those purchases include asset-backed securities, covered bonds and sovereign debt, including, but not limited to, the sovereign debt of Greece. As the U.S. dollar rallied, U.S. equity markets began underperforming most other developed markets, which we attribute to the dual impact of reduced profits from foreign operations for U.S. companies and reduced competitiveness of their exports. Commodity markets are generally down for the year, reflecting the U.S. dollar’s strength as well as dissipating demand from China and the better part of Southeast Asia.
Greek playwright Sophocles once said, “Money is the worst currency that ever grew among mankind. This sacks cities, this drives men from their homes, this teaches and corrupts the worthiest minds to turn base deeds.” A recent study conducted by the McKinsey Global Institute estimates that worldwide debt increased by $57 trillion between the fourth quarter of 2007 and the fourth quarter of 2014. As a percentage of gross domestic product (GDP), the study estimates that debt increased from 269% in 2007 to 286% in 2014. The increases in debt reflect the collective, cumulative fiscal deficits of countries, corporations, households and the financial sector. Both the size of outstanding debt and the pace of debt increases have been affected by three principal drivers: expenditures, output growth rates and restructuring.
Market drivers with political consequences
Each of these drivers has political consequences associated with them. Expenditures are reduced by austerity measures—spending less on social welfare programs, post-retirement benefits, healthcare and public works. Growth is difficult for policymakers to engineer. Debt restructuring or forgiveness transfers wealth from lenders to borrowers. At the very least, making changes that impact expenditures and restructuring existing debt offer politically unpalatable options for most policymakers. Both cases represent the prospects of short-term pain and long-term gain, which are inconsistent with the time horizons of elected officials and their appointed agents. As Plato once said, “There will be no end to the troubles of states, or of humanity itself, till philosophers become kings in this world, or till those we now call kings and rulers really and truly become philosophers, and political power and philosophy thus come into the same hands.”
The questionable interest rate rise
Plato also said, “Opinion is the medium between knowledge and ignorance.” With that in mind, we humbly submit the following observations for the latter half of 2015. The Federal Open Market Committee (FOMC) will have three opportunities to adjust monetary policy before the end of the year (September 16 – 17, October 27 – 28 and December 15 – 16). Fed Chair Janet Yellen continues to state that, dependent on the continuation of economic growth, the FOMC intends to increase interest rates in 2015. It seems to us that if the FOMC does not begin the process of raising interest rates at the September meeting, concerns about interfering with the economy during the upcoming election year will diminish the probability of making changes before the general election in November 2016. Such delays would likely result in downward pressure on the U.S. dollar, which could translate to a reversal in the equity trends cited above. Regardless of FOMC activity, we believe that commodity prices will remain under pressure due to the more pernicious growth problems in China and Europe.
The upcoming presidential debates are likely to be dominated by social issues including the yawning wealth divide in America. The more centrist candidates will likely move toward more polarized positions as social initiatives and fiscal discipline are juxtaposed during the campaign period. The current turmoil in Greece will likely be touted as the inevitable consequence of a deficit-driven economy. We expect the existing levels of debt to GDP along with the prospect of
continued austerity measures in Europe and tepid growth in China to create a perfect storm—a storm that could increase general market volatility, keep long-term interest rates low and reduce both future equity market returns and commodity prices. We firmly believe that, in this environment, diversification is the most important weapon in an investor’s arsenal.
In conclusion, it’s often not the quality of predictions but the rigor of preparation that allows investors to withstand times of uncertainty. In our view, the best preparation is diversification across markets, geographies and strategies. Diversification allows investors to realize Greek philosopher Aristotle’s adage, “The ideal man bears the accidents of life with dignity and grace, making the best of circumstances.” It would seem that the intellectual forefathers of modern day Greece identified the answers to many of the challenges that face modern day Greece as well as the global economy more generally.
We are humbled by the trust you have placed with us as investors and remain grateful for the opportunities you have given to us.
Sincerely,
Lee Partridge, CAIA, CFA
Chief Investment Officer
Salient + 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.
Diversification does not assure profit or protect against risk.
Quantitative easing refers to a form of monetary policy used to stimulate an economy where interest rates are either at, or close to, zero.
Volatility is a statistical measure of the dispersion of returns for a given security or market index.
Lee Partridge 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
©2015 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, 2015
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.
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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 | | | | | | | 2.17% | | | | 2.34% | | | | 5.17% | | | | 05/01/08 | |
| | | | | |
Institutional Class | | | | | | | 2.57% | | | | 2.72% | | | | 5.56% | | | | 05/01/08 | |
| | | | | |
Class A (with sales load)(b)(c) | | | | | | | -3.90% | | | | 0.94% | | | | 0.65% | | | | 12/29/06 | |
| | | | | |
Class A (without sales load)(c)(d) | | | | | | | 1.93% | | | | 2.13% | | | | 1.35% | | | | 12/29/06 | |
| | | | | |
Class C (with CDSC)(e) | | | | | | | 0.50% | | | | 1.69% | | | | 4.66% | | | | 06/03/09 | |
| | | | | |
Class C (without CDSC)(f) | | | | | | | 1.49% | | | | 1.69% | | | | 4.66% | | | | 06/03/09 | |
| | | | | |
Advisor Class(g) | | | | | | | 2.48% | | | | 2.69% | | | | 3.03% | | | | 02/01/10 | |
| | | | | |
| Forward Dynamic Income Fund | | | | | | | | 1 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | |
Investor Class(h) | | | | | | | | | | | N/A | | | | -0.38% | | | | 12/31/14 | |
| | | | | |
Institutional Class | | | | | | | | | | | 3.82% | | | | 10.09% | | | | 07/31/13 | |
| | | | | |
Class A (with sales load)(b) | | | | | | | | | | | -2.61% | | | | 6.23% | | | | 07/31/13 | |
| | | | | |
Class A (without sales load)(d) | | | | | | | | | | | 3.33% | | | | 9.58% | | | | 07/31/13 | |
| | | | | |
| Forward EM Corporate Debt Fund(i) | | | | | 1 Year | | | 5 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | | | | | -3.92% | | | | 4.75% | | | | 4.32% | | | | 10/05/07 | |
| | | | | |
Institutional Class | | | | | | | -3.70% | | | | 5.13% | | | | 4.67% | | | | 10/05/07 | |
| | | | | |
Class C (with CDSC)(e) | | | | | | | -5.37% | | | | 4.16% | | | | 3.81% | | | | 10/05/07 | |
| | | | | |
Class C (without CDSC)(f) | | | | | | | -4.47% | | | | 4.16% | | | | 3.81% | | | | 10/05/07 | |
| | | | | |
Advisor Class | | | | | | | -3.65% | | | | N/A | | | | -0.15% | | | | 05/01/14 | |
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| Forward Emerging Markets Fund(j) | | 1 Year | | | 5 Year | | | 10 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | -7.98% | | | | 3.42% | | | | 6.82% | | | | 12.63% | | | | 04/09/03 | |
| | | | | |
Institutional Class | | | -7.60% | | | | 3.79% | | | | 7.21% | | | | 6.18% | | | | 10/04/95 | |
| | | | | |
Advisor Class(g) | | | -7.60% | | | | 3.83% | | | | N/A | | | | 2.91% | | | | 02/01/10 | |
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2015
See page 10 for important performance disclosure information about the Forward Funds.
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| Forward Global Dividend Fund(k) | | | | | 1 Year | | | 5 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | | | | | -3.60% | | | | N/A | | | | 5.00% | | | | 05/02/11 | |
| | | | | |
Institutional Class | | | | | | | -3.36% | | | | 10.67% | | | | 4.02% | | | | 01/31/07 | |
| | | | | |
Class A (with sales load)(b) | | | | | | | -9.34% | | | | 8.84% | | | | 3.37% | | | | 10/31/06 | |
| | | | | |
Class A (without sales load)(d) | | | | | | | -3.80% | | | | 10.13% | | | | 4.08% | | | | 10/31/06 | |
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| Forward International Dividend Fund(l) | | 1 Year | | | 5 Year | | | 10 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | -6.23% | | | | 8.90% | | | | 4.70% | | | | 4.40% | | | | 10/01/98 | |
| | | | | |
Institutional Class | | | -5.89% | | | | 9.32% | | | | N/A | | | | -0.83% | | | | 05/01/07 | |
| | | | | |
Class A (with sales load)(b) | | | -11.76% | | | | N/A | | | | N/A | | | | -2.75% | | | | 05/01/13 | |
| | | | | |
Class A (without sales load)(d) | | | -6.36% | | | | N/A | | | | N/A | | | | -0.04% | | | | 05/01/13 | |
| | | | | |
Class C (with CDSC)(e) | | | -7.65% | | | | N/A | | | | N/A | | | | 7.29% | | | | 07/31/12 | |
| | | | | |
Class C (without CDSC)(f) | | | -6.76% | | | | N/A | | | | N/A | | | | 7.29% | | | | 07/31/12 | |
| | | | | |
Advisor Class(g) | | | -5.94% | | | | N/A | | | | N/A | | | | 3.04% | | | | 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 | | | 0.54% | | | | 11.12% | | | | 5.68% | | | | 9.36% | | | | 03/05/02 | |
| | | | | |
Institutional Class | | | 0.87% | | | | 11.49% | | | | 6.03% | | | | 8.50% | | | | 02/07/96 | |
| | | | | |
Advisor Class(g) | | | 0.85% | | | | 11.49% | | | | N/A | | | | 9.12% | | | | 02/01/10 | |
| | | | | |
| Forward Select EM Dividend Fund | | | | | | | | 1 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | | | | | | | | | -12.97% | | | | -1.11% | | | | 05/02/11 | |
| | | | | |
Institutional Class | | | | | | | | | | | -12.68% | | | | -0.11% | | | | 05/03/11 | |
| | | | | |
Class C (with CDSC)(e) | | | | | | | | | | | -14.33% | | | | -1.70% | | | | 05/02/11 | |
| | | | | |
Class C (without CDSC)(f) | | | | | | | | | | | -13.50% | | | | -1.70% | | | | 05/02/11 | |
| | | | | |
Advisor Class(g) | | | | | | | | | | | -12.72% | | | | -0.76% | | | | 05/02/11 | |
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2015
See page 10 for important performance disclosure information about the Forward Funds.
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| Forward Small Cap Equity Fund(n) | | 1 Year | | | 5 Year | | | 10 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | 2.13% | | | | 11.60% | | | | 3.93% | | | | 6.96% | | | | 10/01/98 | |
| | | | | |
Institutional Class | | | 2.48% | | | | 12.03% | | | | 4.30% | | | | 6.47% | | | | 06/06/02 | |
| | | | | |
Advisor Class(g) | | | 2.41% | | | | 11.91% | | | | N/A | | | | 10.22% | | | | 02/01/10 | |
| | | | | |
| Forward Tactical Enhanced Fund(o) | | | | | | | | 1 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | | | | | | | | | -9.99% | | | | 0.52% | | | | 12/31/10 | |
| | | | | |
Institutional Class | | | | | | | | | | | -9.73% | | | | 0.86% | | | | 12/31/10 | |
| | | | | |
Class A (with sales load)(b) | | | | | | | | | | | -15.31% | | | | -0.97% | | | | 12/31/10 | |
| | | | | |
Class A (without sales load)(d) | | | | | | | | | | | -10.15% | | | | 0.35% | | | | 12/31/10 | |
| | | | | |
Class C (with CDSC)(e) | | | | | | | | | | | -11.39% | | | | -0.10% | | | | 12/31/10 | |
| | | | | |
Class C (without CDSC)(f) | | | | | | | | | | | -10.56% | | | | -0.10% | | | | 12/31/10 | |
| | | | | |
Advisor Class(g) | | | | | | | | | | | -9.90% | | | | 0.36% | | | | 04/15/11 | |
| | | | | |
| Forward Tactical Growth Fund | | | | | 1 Year | | | 5 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | | | | | -0.77% | | | | 3.49% | | | | 3.22% | | | | 09/14/09 | |
| | | | | |
Institutional Class | | | | | | | -0.41% | | | | 3.85% | | | | 3.57% | | | | 09/14/09 | |
| | | | | |
Class A (with sales load)(b) | | | | | | | -6.58% | | | | 2.13% | | | | 1.30% | | | | 03/12/10 | |
| | | | | |
Class A (without sales load)(d) | | | | | | | -0.89% | | | | 3.34% | | | | 2.44% | | | | 03/12/10 | |
| | | | | |
Class C (with CDSC)(e) | | | | | | | -2.34% | | | | 2.87% | | | | 2.60% | | | | 09/14/09 | |
| | | | | |
Class C (without CDSC)(f) | | | | | | | -1.37% | | | | 2.87% | | | | 2.60% | | | | 09/14/09 | |
| | | | | |
Advisor Class(g) | | | | | | | -0.45% | | | | 3.83% | | | | 3.38% | | | | 02/01/10 | |
| | | | | |
| Forward Commodity Long/Short Strategy Fund | | | | | | | | 1 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | | | | | | | | | -9.82% | | | | -5.07% | | | | 12/31/10 | |
| | | | | |
Institutional Class | | | | | | | | | | | -9.46% | | | | -4.74% | | | | 12/31/10 | |
| | | | | |
Class C (with CDSC)(e) | | | | | | | | | | | -11.27% | | | | -8.99% | | | | 05/04/11 | |
| | | | | |
Class C (without CDSC)(f) | | | | | | | | | | | -10.38% | | | | -8.99% | | | | 05/04/11 | |
| | | | | |
Advisor Class(g) | | | | | | | | | | | -9.54% | | | | -7.80% | | | | 12/07/11 | |
| | | | | |
Class Z | | | | | | | | | | | -9.41% | | | | -4.72% | | | | 12/31/10 | |
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2015
See page 10 for important performance disclosure information about the Forward Funds.
(a) Effective November 1, 2013, Cedar Ridge Partners, LLC (“Cedar Ridge”) resigned as sub-advisor of Forward Credit Analysis Long/Short Fund and terminated its sub-advisory agreement with Forward Management. From November 1, 2013, to November 12, 2013, Forward Management was the sole advisor of the fund. Effective November 13, 2013, the fund is sub-advised solely by Pacific Investment Management Company LLC (“PIMCO”). Performance figures shown for periods before November 1, 2013, represent performance of Cedar Ridge under the previous investment strategy for the fund. Prior to May 1, 2011, Forward Credit Analysis Long/Short Fund was known as Forward Long/Short Credit Analysis Fund.
(b) Includes the effect of the maximum 5.75% sales charge.
(c) Class A shares of the fund originally commenced operations on December 29, 2006, were liquidated on November 21, 2008, and were launched again on September 1, 2010. The performance shown for any period beginning on or after November 24, 2008, and lasting through August 31, 2010, 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 September 1, 2010 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) “Since inception” performance is not annualized for a “since inception” period that is less than 1 year.
(i) Effective June 9, 2015, the Trust and Forward Management terminated their sub-advisory agreement with SW Asset Management, LLC (“SW”). The fund is now advised solely by Forward Management. As of February 14, 2011, Forward EM Corporate Debt Fund replaced the sub-advisor, Pictet Asset Management SA (“Pictet”) with SW. Performance figures shown for periods before June 9, 2015, represent performance of the fund while being sub-advised by Pictet or SW. Prior to May 1, 2011, Forward EM Corporate Debt Fund was known as Forward International Fixed-Income Fund.
(j) 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 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 Pictet Global Emerging Markets Fund were reorganized into the Investor Class and Institutional Class, respectively, of Forward Global Emerging Markets Fund on September 16, 2004. Performance figures shown for periods prior to September 16, 2004, represent performance of the Retail Class and Institutional Class of Pictet Global Emerging Markets Fund. Prior to May 1, 2008, Forward Emerging Markets Fund was known as Forward Global Emerging Markets Fund.
(k) Prior to February 20, 2013, Forward Global Dividend Fund was known as Forward Large Cap Dividend Fund. Prior to November 1, 2011, Forward Large Cap Dividend Fund was known as Forward Large Cap Equity Fund.
(l) Prior to May 1, 2010, Forward International Dividend Fund was known as 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. From September 1, 2005, through November 30, 2008, Pictet Asset Management Limited was the Fund’s sub-advisor and the Fund’s investment strategy was different. Prior to September 1, 2005, Forward International Equity Fund was known as Forward Hansberger International Growth Fund. 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.
(m) The Retail Class and Institutional Class of Pictet International Small Companies Fund were reorganized into the Investor Class and Institutional Class, respectively, of 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 Pictet International Small Companies Fund.
(n) Prior to May 1, 2008, Forward Small Cap Equity Fund was known as Forward Hoover Small Cap Equity Fund. As of February 1, 2011, the fund is directly managed by Forward Management, LLC., the advisor to Forward Funds. Performance figures and other portfolio data shown for periods prior to February 1, 2011, do not reflect Forward Management’s performance or strategy. Hoover Investment Management Co., LLC was the Fund’s sub-advisor prior to February 1, 2011.
(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 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, 2015
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.
Debt securities are subject to interest rate risk. If interest rates increase, the value of debt securities generally declines. Debt securities with longer durations tend to be more sensitive to changes in interest rates and more volatile than securities with shorter durations.
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 Dynamic Income Fund
Borrowing for investment purposes creates leverage, which can increase the risk and volatility of a fund.
Debt securities are subject to interest rate risk. If interest rates increase, the value of debt securities generally declines. Debt securities with longer durations tend to be more sensitive to changes in interest rates and more volatile than securities with shorter durations.
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.
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.
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2015
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.
There is no guarantee the companies in our portfolio will continue to pay dividends.
Forward EM Corporate Debt Fund
Borrowing for investment purposes creates leverage, which can increase the risk and volatility of a fund.
Debt securities are subject to interest rate risk. If interest rates increase, the value of debt securities generally declines. Debt securities with longer durations tend to be more sensitive to changes in interest rates and more volatile than securities with shorter durations.
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.
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.
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.
There is no guarantee the companies in our portfolio will continue to pay dividends.
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, 2015
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.
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2015
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.
Debt securities are subject to interest rate risk. If interest rates increase, the value of debt securities generally declines. Debt securities with longer durations tend to be more sensitive to changes in interest rates and more volatile than securities with shorter durations.
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.
Debt securities are subject to interest rate risk. If interest rates increase, the value of debt securities generally declines. Debt securities with longer durations tend to be more sensitive to changes in interest rates and more volatile than securities with shorter durations.
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.
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2015
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.
Debt securities are subject to interest rate risk. If interest rates increase, the value of debt securities generally declines. Debt securities with longer durations tend to be more sensitive to changes in interest rates and more volatile than securities with shorter durations.
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.
Disclosure of Fund Expenses (Unaudited)
For the Six Months Ended June 30, 2015
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, 2015 through June 30, 2015.
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
01/01/15 | | | Ending
Account Value
06/30/15 | | | Expense
Ratios(a) | | | Expenses Paid During Period (b) 01/01/15-06/30/15 | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,001.90 | | | | 1.76 | % | | $ | 8.74 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,016.07 | | | | 1.76 | % | | $ | 8.80 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,003.80 | | | | 1.42 | % | | $ | 7.06 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.75 | | | | 1.42 | % | | $ | 7.10 | |
| Class A | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,000.20 | | | | 1.91 | % | | $ | 9.47 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,015.32 | | | | 1.91 | % | | $ | 9.54 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 997.20 | | | | 2.36 | % | | $ | 11.69 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,013.09 | | | | 2.36 | % | | $ | 11.78 | |
| Advisor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,003.10 | | | | 1.47 | % | | $ | 7.30 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.50 | | | | 1.47 | % | | $ | 7.35 | |
| Forward Dynamic Income Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 996.20 | | | | 1.34 | % | | $ | 6.63 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,018.15 | | | | 1.34 | % | | $ | 6.71 | |
Disclosure of Fund Expenses (Unaudited)
For the Six Months Ended June 30, 2015
| | | | | | | | | | | | | | | | |
| Forward Dynamic Income Fund (continued) | | Beginning Account Value
01/01/15 | | | Ending
Account Value
06/30/15 | | | Expense
Ratios(a) | | | Expenses Paid During Period (b) 01/01/15-06/30/15 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 997.30 | | | | 0.99 | % | | $ | 4.90 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,019.89 | | | | 0.99 | % | | $ | 4.96 | |
| Class A | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 995.00 | | | | 1.49 | % | | $ | 7.37 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.41 | | | | 1.49 | % | | $ | 7.45 | |
| Forward EM Corporate Debt Fund | | | | | | | | | |
| Investor Class | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,012.20 | | | | 1.49 | % | | $ | 7.43 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.41 | | | | 1.49 | % | | $ | 7.45 | |
| Institutional Class | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,013.00 | | | | 1.14 | % | | $ | 5.69 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,019.14 | | | | 1.14 | % | | $ | 5.71 | |
| Class C | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,009.60 | | | | 2.09 | % | | $ | 10.41 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,014.43 | | | | 2.09 | % | | $ | 10.44 | |
| Advisor Class | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,012.80 | | | | 1.19 | % | | $ | 5.94 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,018.89 | | | | 1.19 | % | | $ | 5.96 | |
| Forward Emerging Markets Fund | | | | | | | | | |
| Investor Class | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,005.90 | | | | 1.74 | % | | $ | 8.65 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,016.17 | | | | 1.74 | % | | $ | 8.70 | |
| Institutional Class | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,007.70 | | | | 1.39 | % | | $ | 6.92 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.90 | | | | 1.39 | % | | $ | 6.95 | |
| Advisor Class | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,007.50 | | | | 1.44 | % | | $ | 7.17 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.65 | | | | 1.44 | % | | $ | 7.20 | |
| Forward Global Dividend Fund | | | | | | | | | |
| Investor Class | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,029.10 | | | | 1.34 | % | | $ | 6.74 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,018.15 | | | | 1.34 | % | | $ | 6.71 | |
Disclosure of Fund Expenses (Unaudited)
For the Six Months Ended June 30, 2015
| | | | | | | | | | | | | | | | |
| Forward Global Dividend Fund (continued) | | Beginning Account Value
01/01/15 | | | Ending
Account Value
06/30/15 | | | Expense
Ratios(a) | | | Expenses Paid During Period (b) 01/01/15-06/30/15 | |
| Institutional Class | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,030.10 | | | | 0.99 | % | | $ | 4.98 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,019.89 | | | | 0.99 | % | | $ | 4.96 | |
| Class A | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,027.50 | | | | 1.49 | % | | $ | 7.49 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.41 | | | | 1.49 | % | | $ | 7.45 | |
| Forward International Dividend Fund | | | | | | | | | |
| Investor Class | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,038.30 | | | | 1.46 | % | | $ | 7.38 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.55 | | | | 1.46 | % | | $ | 7.30 | |
| Institutional Class | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,040.00 | | | | 1.11 | % | | $ | 5.61 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,019.29 | | | | 1.11 | % | | $ | 5.56 | |
| Class A | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,037.60 | | | | 1.61 | % | | $ | 8.13 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,016.81 | | | | 1.61 | % | | $ | 8.05 | |
| Class C | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,035.80 | | | | 2.06 | % | | $ | 10.40 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,014.58 | | | | 2.06 | % | | $ | 10.29 | |
| Advisor Class | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,039.80 | | | | 1.16 | % | | $ | 5.87 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,019.04 | | | | 1.16 | % | | $ | 5.81 | |
| Forward International Small Companies Fund | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,126.10 | | | | 1.64 | % | | $ | 8.65 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,016.66 | | | | 1.64 | % | | $ | 8.20 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,127.50 | | | | 1.29 | % | | $ | 6.80 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,018.40 | | | | 1.29 | % | | $ | 6.46 | |
| Advisor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,127.40 | | | | 1.34 | % | | $ | 7.07 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,018.15 | | | | 1.34 | % | | $ | 6.71 | |
| Forward Select EM Dividend Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,006.10 | | | | 1.93 | % | | $ | 9.60 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,015.22 | | | | 1.93 | % | | $ | 9.64 | |
Disclosure of Fund Expenses (Unaudited)
For the Six Months Ended June 30, 2015
| | | | | | | | | | | | | | | | |
| Forward Select EM Dividend Fund (continued) | | Beginning Account Value
01/01/15 | | | Ending
Account Value
06/30/15 | | | Expense
Ratios(a) | | | Expenses Paid During Period (b) 01/01/15-06/30/15 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,008.00 | | | | 1.58 | % | | $ | 7.87 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,016.96 | | | | 1.58 | % | | $ | 7.90 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,003.20 | | | | 2.53 | % | | $ | 12.57 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,012.25 | | | | 2.53 | % | | $ | 12.62 | |
| Advisor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,007.30 | | | | 1.63 | % | | $ | 8.11 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,016.71 | | | | 1.63 | % | | $ | 8.15 | |
| Forward Small Cap Equity Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,030.00 | | | | 1.49 | % | | $ | 7.50 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.41 | | | | 1.49 | % | | $ | 7.45 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,031.80 | | | | 1.14 | % | | $ | 5.74 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,019.14 | | | | 1.14 | % | | $ | 5.71 | |
| Advisor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,031.50 | | | | 1.19 | % | | $ | 5.99 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,018.89 | | | | 1.19 | % | | $ | 5.96 | |
| Forward Tactical Enhanced Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 939.80 | | | | 1.74 | % | | $ | 8.37 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,016.17 | | | | 1.74 | % | | $ | 8.70 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 941.00 | | | | 1.39 | % | | $ | 6.69 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.90 | | | | 1.39 | % | | $ | 6.95 | |
| Class A | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 939.10 | | | | 1.89 | % | | $ | 9.09 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,015.42 | | | | 1.89 | % | | $ | 9.44 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 936.80 | | | | 2.34 | % | | $ | 11.24 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,013.19 | | | | 2.34 | % | | $ | 11.68 | |
| Advisor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 940.00 | | | | 1.44 | % | | $ | 6.93 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.65 | | | | 1.44 | % | | $ | 7.20 | |
Disclosure of Fund Expenses (Unaudited)
For the Six Months Ended June 30, 2015
| | | | | | | | | | | | | | | | |
| Forward Tactical Growth Fund | | Beginning Account Value
01/01/15 | | | Ending
Account Value
06/30/15 | | | Expense
Ratios(a) | | | Expenses Paid During Period(b) 01/01/15-06/30/15 | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 980.40 | | | | 1.75% | | | $ | 8.59 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,016.12 | | | | 1.75% | | | $ | 8.75 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 982.30 | | | | 1.40% | | | $ | 6.88 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.85 | | | | 1.40% | | | $ | 7.00 | |
| Class A | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 979.80 | | | | 1.90% | | | $ | 9.33 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,015.37 | | | | 1.90% | | | $ | 9.49 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 977.70 | | | | 2.35% | | | $ | 11.52 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,013.14 | | | | 2.35% | | | $ | 11.73 | |
| Advisor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 982.00 | | | | 1.45% | | | $ | 7.13 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.60 | | | | 1.45% | | | $ | 7.25 | |
| Forward Commodity Long/Short Strategy Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 883.00 | | | | 2.11% | | | $ | 9.85 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,014.33 | | | | 2.11% | | | $ | 10.54 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 884.60 | | | | 1.74% | | | $ | 8.13 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,016.17 | | | | 1.74% | | | $ | 8.70 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 880.30 | | | | 2.70% | | | $ | 12.59 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,011.41 | | | | 2.70% | | | $ | 13.47 | |
| Advisor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 884.50 | | | | 1.80% | | | $ | 8.41 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,015.87 | | | | 1.80% | | | $ | 9.00 | |
| Class Z | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 885.00 | | | | 1.71% | | | $ | 7.99 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,016.31 | | | | 1.71% | | | $ | 8.55 | |
(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 values over the period, multiplied by the number of days in the most recent fiscal half year (181), then divided by 365.
Summary of Portfolio Holdings (Note 9) (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 | | | 85.23% | |
Short-Term Securities | | | 11.18% | |
Net Other Assets and Liabilities | | | 3.59% | |
| | | 100.00% | |
| |
| Forward Dynamic Income Fund* | | | | |
Financials(a) | | | 27.09% | |
Consumer Staples | | | 15.20% | |
Consumer Discretionary | | | 4.62% | |
Telecommunication Services | | | 3.52% | |
Industrials | | | 3.49% | |
Energy | | | 3.01% | |
Materials | | | 1.90% | |
Healthcare | | | 0.92% | |
Utilities | | | 0.84% | |
Exchange-Traded Funds | | | 0.44% | |
Information Technology | | | 0.31% | |
Net Other Assets and Liabilities | | | 38.66% | |
| | | 100.00% | |
| |
| Forward EM Corporate Debt Fund | | | | |
South America | | | 32.62% | |
Asia ex-Japan | | | 27.97% | |
Europe ex-UK | | | 16.11% | |
Latin America | | | 12.57% | |
Africa | | | 5.57% | |
Middle East | | | 4.77% | |
Suprainternational | | | 1.43% | |
United Kingdom | | | 0.24% | |
Net Other Assets and Liabilities | | | -1.28% | |
| | | 100.00% | |
| |
| Forward Emerging Markets Fund* | | | | |
Asia ex-Japan | | | 61.91% | |
Europe ex-UK | | | 7.71% | |
Latin America | | | 6.93% | |
South America | | | 5.18% | |
| | | | |
United Kingdom | | | 1.05% | |
Africa | | | 0.86% | |
Net Other Assets and Liabilities | | | 16.36% | |
| | | 100.00% | |
| |
| Forward Global Dividend Fund | | | | |
Europe ex-UK | | | 33.18% | |
North America | | | 28.42% | |
Asia ex-Japan | | | 17.70% | |
Japan | | | 10.44% | |
United Kingdom | | | 5.41% | |
South America | | | 1.66% | |
Net Other Assets and Liabilities | | | 3.19% | |
| | | 100.00% | |
| |
| Forward International Dividend Fund* | | | | |
Europe ex-UK | | | 45.66% | |
Asia ex-Japan | | | 34.26% | |
United Kingdom | | | 10.40% | |
Japan | | | 9.11% | |
North America | | | 6.54% | |
South America | | | 3.35% | |
Middle East | | | 0.88% | |
Africa | | | 0.83% | |
Latin America | | | 0.73% | |
Net Other Assets and Liabilities | | | -11.76% | |
| | | 100.00% | |
| |
| Forward International Small Companies Fund | | | | |
Europe | | | 52.20% | |
Japan | | | 32.14% | |
Asia ex-Japan | | | 5.72% | |
Far East | | | 4.90% | |
United States | | | 2.07% | |
Net Other Assets and Liabilities | | | 2.97% | |
| | | 100.00% | |
Summary of Portfolio Holdings (Note 9) (Unaudited)
| | | | |
| |
| Forward Select EM Dividend Fund* | | | | |
Asia ex-Japan | | | 65.96% | |
South America | | | 11.28% | |
Europe ex-UK | | | 10.38% | |
North America | | | 4.96% | |
Latin America | | | 4.79% | |
Africa | | | 2.62% | |
United Kingdom | | | 1.45% | |
Middle East | | | 1.27% | |
Japan | | | 1.17% | |
Net Other Assets and Liabilities | | | -3.88% | |
| | | 100.00% | |
| |
| Forward Small Cap Equity Fund | | | | |
Information Technology | | | 23.95% | |
Healthcare | | | 15.66% | |
Consumer Discretionary | | | 15.28% | |
Financials | | | 13.03% | |
Industrials | | | 11.45% | |
Materials | | | 4.64% | |
Energy | | | 3.46% | |
Consumer Staples | | | 3.44% | |
Affiliated Investment Companies | | | 1.30% | |
Net Other Assets and Liabilities | | | 7.79% | |
| | | 100.00% | |
| | | | |
| |
| Forward Tactical Enhanced Fund* | | | | |
Net Other Assets and Liabilities | | | 100.00% | |
| | | 100.00% | |
| |
| Forward Tactical Growth Fund | | | | |
Exchange-Traded Funds | | | 50.63% | |
Net Other Assets and Liabilities | | | 49.37% | |
| | | 100.00% | |
| |
| Forward Commodity Long/Short Strategy Fund* | | | | |
Municipal Bonds | | | 18.96% | |
Corporate Bonds | | | 15.29% | |
Agency Pass-Through Securities | | | 14.45% | |
U.S. Treasury Bonds & Notes | | | 14.36% | |
Collateralized Mortgage Obligations | | | 5.52% | |
Asset-Backed Securities | | | 2.82% | |
Net Other Assets and Liabilities | | | 28.60% | |
| | | 100.00% | |
These allocations may not reflect the current or future position of the portfolios.
* Weightings reflect long positions and excludes securities sold short 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.
Portfolio of Investments (Note 9) (Unaudited)
Forward Credit Analysis Long/Short Fund
| | | | | | | | | | |
Principal
Amount | | | | | | | Value
(Note 2) | |
|
| | Municipal Bonds: 85.23% | |
| | Alabama: 1.93% | | | | | | |
| | | |
| | $3,000,000 | | | County of Jefferson, Alabama Sewer Convertible Revenue Warrants (Capital Appreciation), Sub-Lien,
Series F
7.900%, 10/01/50(a) | | | | $ | 1,954,440 | |
| | | | | | | | | | |
| | California: 13.36% | | | | | | |
| | | |
| | 500,000 | | | California State Heath Facilities Financing Authority, Revenue Bonds (Stanford Health Care),
Series A
5.000%, 08/15/54 | | | | | 542,950 | |
| | | |
| | 1,800,000 | | | California State Public Works Board, Revenue Bonds (Build America Bonds),
Series G-2
8.361%, 10/01/34 | | | | | 2,567,232 | |
| | | |
| | 1,000,000 | | | Long Beach, California Bond Finance Authority, Revenue Bonds,
Series A
5.000%, 11/15/15 | | | | | 1,014,400 | |
| | | |
| | 3,760,000 | | | M-S-R Energy Authority, Revenue Bonds,
Series B
6.500%, 11/01/39 | | | | | 4,951,882 | |
| | | |
| | 1,000,000 | | | Stockton Public Financing Authority, Revenue Bonds (Delta Water Supply Project),
Series A
6.125%, 10/01/35 | | | | | 1,195,050 | |
| | | |
| | 2,750,000 | | | 6.250%, 10/01/40 | | | | | 3,263,095 | |
| | | |
| | | | | | | | | 13,534,609 | |
| | | | | | | | | | |
| | Georgia: 1.07% | | | | | | |
| | | |
| | 1,000,000 | | | Savannah College of Art & Design Projects, Revenue Bonds, (Private Colleges & Universities Authority)
5.000%, 04/01/33 | | | | | 1,079,180 | |
| | | | | | | | | | |
| | Hawaii: 1.28% | | | | | | |
| | | |
| | 1,100,000 | | | Honolulu City & County Board of Water Supply & Water Systems, Revenue Bonds,
Series A
5.000%, 07/01/27 | | | | | 1,295,866 | |
| | | | | | | | | | |
| | Illinois: 5.01% | | | | | | |
| | | |
| | 2,000,000 | | | City of Chicago, Illinois General Obligation Bond,
Series 2002B
5.500%, 01/01/34 | | | | | 1,979,400 | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value
(Note 2) | |
|
| | | |
| | | |
| | $1,715,000 | | | City of Chicago, Illinois General Obligation Bond,
Series E
6.050%, 01/01/29 | | | | $ | 1,639,780 | |
| | | |
| | 1,355,000 | | | Illinois State General Obligation Bond
5.000%, 01/01/19 | | | | | 1,450,555 | |
| | | |
| | | | | | | | | 5,069,735 | |
|
| | |
| | Iowa: 5.72% | |
| | | |
| | 1,000,000 | | | Iowa Finance Authority, Midwestern Disaster Area Revenue Bonds (Iowa Fertilizer Co., Project)
5.000%, 12/01/19 | | | | | 1,066,570 | |
| | | |
| | 4,785,000 | | | Iowa Tobacco Settlement Authority, Asset-Backed Revenue Bonds,
Series A
6.500%, 06/01/23 | | | | | 4,726,623 | |
| | | |
| | | | | | | | | 5,793,193 | |
| | | | | | | | | | |
| | New Jersey: 3.98% | |
| | | |
| | 2,500,000 | | | New Jersey Tobacco Settlement Financing Corp., Revenue Bonds,
Series 1A
4.625%, 06/01/26 | | | | | 2,363,475 | |
| | | |
| | 1,500,000 | | | South Jersey Transportation Authority Llc, Revenue Bonds, (Build America Taxable Bonds),
Series A-5
7.000%, 11/01/38 | | | | | 1,669,095 | |
| | | |
| | | | | | | | | 4,032,570 | |
| | | | | | | | | | |
| | New York: 34.16% | |
| | | |
| | 5,000,000 | | | New York City, Industrial Development Agency, Special Facilities Revenue Bonds (American Airlines, Inc. - JFK International Airport), VRDN 7.750%, 08/01/31(b) | | | | | 5,350,450 | |
| | | |
| | 6,000,000 | | | 8.000%, 08/01/28(b) | | | | | 6,455,700 | |
| | | |
| | 3,000,000 | | | New York City Transitional Finance Authority, Future Tax Secured Subordinate Revenue Bonds,
Subseries B-1
5.000%, 08/01/31 | | | | | 3,422,100 | |
| | | |
| | 5,000,000 | | | 5.000%, 08/01/39 | | | | | 5,566,050 | |
| | | |
| | 2,000,000 | | | New York Metropolitan Transportation Authority, Refunding Revenue Bonds,
Subseries G-1
5.000%, 11/15/28 | | | | | 2,292,560 | |
| | | | |
| June 30, 2015 | | 21 | | See Notes to Financial Statements |
Portfolio of Investments (Note 9) (Unaudited)
Forward Credit Analysis Long/Short Fund
| | | | | | | | | | |
Principal
Amount | | | | | | | Value
(Note 2) | |
|
| | | |
| | | | | | | |
| | New York (continued): 34.16% | |
| | | |
| | $5,000,000 | | | New York State Dormitory Authority, General Purpose Refunding Revenue Bonds (Personal Income Tax Revenue),
Series A
5.000%, 03/15/30 | | | | $ | 5,785,250 | |
| | | |
| | 5,000,000 | | | 5.000%, 12/15/30 | | | | | 5,730,600 | |
| | | |
| | | | | | | | | 34,602,710 | |
| | | | | | | | | | |
| | Ohio: 6.61% | |
| | | |
| | 4,790,000 | | | Buckeye, Ohio Tobacco Settlement Financing Authority, Revenue Bonds (Asset-Backed Sr. Turbo),
Series A-2
6.500%, 06/01/47 | | | | | 4,060,723 | |
| | | |
| | 2,000,000 | | | Buckeye, Ohio Tobacco Settlement Financing Authority, Revenue Bonds (Asset-Backed Sr. Turbo),
Series A-2
5.125%, 06/01/24 | | | | | 1,635,280 | |
| | | |
| | 1,000,000 | | | Ohio State Water Development Authority Pollution Control Facilities, Revenue Bonds (First Energy Nuclear),
Series A, VRDN
3.375%, 07/01/33(b) | | | | | 1,000,000 | |
| | | |
| | | | | | | | | 6,696,003 | |
| | | | | | | | | | |
| | Oklahoma: 1.13% | |
| | | |
| | 1,000,000 | | | Oklahoma Development Finance Authority, Health System Revenue Bonds,
Series A
5.000%, 08/15/29 | | | | | 1,140,460 | |
| | | | | | | | | | |
| | Texas: 10.98% | |
| | | |
| | 3,000,000 | | | Texas Municipal Gas Acquisition & Supply Corp., I, Gas Supply Revenue Bonds, Sr. Lien,
Series D
6.250%, 12/15/26 | | | | | 3,578,220 | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value
(Note 2) | |
|
| | | |
| | | |
| | $7,500,000 | | | Texas State Public Finance Authority, Taxable Revenue Bonds, (Texas Windstorm Insurance Association) 8.250%, 07/01/24 | | | | $ | 7,547,625 | |
| | | |
| | | | | | | | | 11,125,845 | |
| | | |
| | | | Total Municipal Bonds
(Cost $85,705,627) | | | | | 86,324,611 | |
| | | | |
Par
Value | | | | | | | | |
|
| | Short-Term Securities: 11.18% | |
| | | |
| | | | U.S. Treasury Bills, Discount Notes | | | | | | |
| | | |
| | 5,627,000 | | | 0.025%, due 09/17/15(c) | | | | | 5,627,090 | |
| | | |
| | 500,000 | | | 0.025%, due 10/01/15(c) | | | | | 499,987 | |
| | | |
| | 3,400,000 | | | 0.005%, due 10/08/15(c) | | | | | 3,399,837 | |
| | | |
| | 1,500,000 | | | 0.010%, due 10/15/15(c) | | | | | 1,499,944 | |
| | | |
| | 300,000 | | | 0.019%, due 11/12/15(c) | | | | | 299,964 | |
| | |
| | | | Total Short-Term Securities
(Cost $11,326,559) | | | 11,326,822 | |
| | |
| | | | Total Investments: 96.41%
(Cost $97,032,186) | | | 97,651,433 | |
| | |
| | | | Net Other Assets and Liabilities: 3.59% | | | 3,640,717 | (d) |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 101,292,150 | |
Percentages are stated as a percent of net assets.
(a) Represents a step-up bond. Rate disclosed is as of June 30, 2015.
(b) Interest rate will change at a future date. Interest rate shown reflects the rate in effect at June 30, 2015.
(c) Rate shown represents the bond equivalent yield to maturity at date of purchase.
(d) Includes cash which is being held as collateral for futures contracts.
Futures Contracts
| | | | | | | | | | | | | | | | | | |
| Description | | Position | | Contracts | | | Expiration
Date | | | Value | | | Unrealized
Gain | |
U.S. Treasury Long Bond Futures | | Short | | | (45) | | | | 09/22/15 | | | $ | (6,787,971) | | | $ | 91,565 | |
| Total Futures Contracts | | | | | | | | | | | | $ | (6,787,971) | | | $ | 91,565 | |
Investment Abbreviations:
Sr. — Senior
VRDN — Variable Rate Demand Notes
| | | | |
| June 30, 2015 | | 22 | | See Notes to Financial Statements |
Portfolio of Investments (Note 9) (Unaudited)
Forward Dynamic Income Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
|
| | Common Stocks: 46.82% | |
| | Consumer Discretionary: 4.62% | | | | | | |
| | | |
| | 6,500 | | | Home Depot, Inc. | | | | $ | 722,345 | |
| | | |
| | 10,500 | | | Target Corp. | | | | | 857,115 | |
| | | |
| | 6,500 | | | Walt Disney Co. | | | | | 741,910 | |
| | | |
| | | | | | | | | 2,321,370 | |
| | | | | | | | | | |
| | Consumer Staples: 15.20% | |
| | | |
| | 7,600 | | | Clorox Co. | | | | | 790,552 | |
| | | |
| | 19,200 | | | Coca-Cola Co. | | | | | 753,216 | |
| | | |
| | 4,300 | | | Costco Wholesale Corp. | | | | | 580,758 | |
| | | |
| | 10,000 | | | CVS Health Corp. | | | | | 1,048,800 | |
| | | |
| | 6,800 | | | Dr. Pepper Snapple Group, Inc. | | | | | 495,720 | |
| | | |
| | 15,000 | | | Kellogg Co. | | | | | 940,500 | |
| | | |
| | 12,000 | | | Kraft Foods Group, Inc. | | | | | 1,021,680 | |
| | | |
| | 11,000 | | | Kroger Co. | | | | | 797,610 | |
| | | |
| | 10,400 | | | Procter & Gamble Co. | | | | | 813,696 | |
| | | |
| | 4,600 | | | Walgreens Boots Alliance, Inc. | | | | | 388,424 | |
| | | |
| | | | | | | | | 7,630,956 | |
| | | | | | | | | | |
| | Energy: 1.14% | |
| | | |
| | 10,000 | | | Williams Cos., Inc. | | | | | 573,900 | |
| | | | | | | | | | |
| | Financials: 16.71% | |
| | | |
| | 37,248 | | | AXA SA | | | | | 939,733 | |
| | | |
| | 22,200 | | | Bank of America Corp. | | | | | 377,844 | |
| | | |
| | 70,000 | | | Bluerock Residential Growth REIT, Inc. | | | | | 886,200 | |
| | | |
| | 45,500 | | | British Land Co., Plc | | | | | 567,288 | |
| | | |
| | 1,042,189 | | | GDI Property Group | | | | | 703,589 | |
| | | |
| | 3,500 | | | Macerich Co. | | | | | 261,100 | |
| | | |
| | 10,000 | | | Montpelier Re Holdings Ltd. | | | | | 395,000 | |
| | | |
| | 50,000 | | | New York REIT, Inc. | | | | | 497,500 | |
| | | |
| | 500 | | | NIPPON REIT Investment Corp. | | | | | 1,180,292 | |
| | | |
| | 20,000 | | | NorthStar Realty Finance Corp. | | | | | 318,000 | |
| | | |
| | 13,200 | | | Post Properties, Inc. | | | | | 717,684 | |
| | | |
| | 54,000 | | | Winthrop Realty Trust | | | | | 818,100 | |
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
|
| | | |
| | | |
| | 40,000 | | | Wuestenrot & Wuerttembergische AG | | | | $ | 723,092 | |
| | | |
| | | | | | | | | 8,385,422 | |
| | | | | | | | | | |
| | Healthcare: 0.92% | |
| | | |
| | 3,800 | | | UnitedHealth Group, Inc. | | | | | 463,600 | |
| | | | | | | | | | |
| | Industrials: 2.35% | |
| | | |
| | 1,797,500 | | | ASR Logistics Holdings, Ltd. | | | | | 248,121 | |
| | | |
| | 35,000 | | | General Electric Co. | | | | | 929,950 | |
| | | |
| | | | | | | | | 1,178,071 | |
| | | | | | | | | | |
| | Information Technology: 0.31% | |
| | | |
| | 1,000 | | | Alarm.com Holdings, Inc.(a) | | | | | 15,380 | |
| | | |
| | 10,000 | | | MINDBODY, Inc., Class A(a) | | | | | 138,300 | |
| | | |
| | | | | | | | | 153,680 | |
| | | | | | | | | | |
| | Materials: 1.90% | |
| | | |
| | 9,200 | | | LyondellBasell Industries NV, Class A | | | | | 952,384 | |
| | | | | | | | | | | |
| Telecommunication Services: 2.83% | | | | | | |
| | | |
| | 4,700 | | | Alteva, Inc. | | | | | 33,746 | |
| | | |
| | 20,700 | | | AT&T, Inc. | | | | | 735,264 | |
| | | |
| | 14,000 | | | Verizon Communications, Inc. | | | | | 652,540 | |
| | | |
| | | | | | | | | 1,421,550 | |
| | | | | | | | | | |
| | Utilities: 0.84% | |
| | | |
| | 6,000 | | | PG&E Corp. | | | | | 294,600 | |
| | | |
| | 2,820 | | | WEC Energy Group, Inc. | | | | | 126,815 | |
| | | |
| | | | | | | | | 421,415 | |
| | | |
| | | | Total Common Stocks
(Cost $22,998,046) | | | | | 23,502,348 | |
|
| | Exchange-Traded Funds: 0.44% | |
| | | | |
| | 4,000 | | | ProShares® UltraShort Real Estate(a) | | | | | 218,680 | |
| | | |
| | | | Total Exchange-Traded Funds
(Cost $207,463) | | | | | 218,680 | |
| | | | |
| See Notes to Financial Statements | | 23 | | June 30, 2015 |
Portfolio of Investments (Note 9) (Unaudited)
Forward Dynamic Income Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
|
| | Limited Partnerships: 1.87% | |
| | Energy: 1.87% | |
| | | |
| | 36,871 | | | Calumet Specialty Products Partners LP | | | | $ | 938,736 | |
| | | |
| | | | Total Limited Partnerships
(Cost $806,981) | | | | | 938,736 | |
|
| | Preferred Stocks: 11.25% | |
| | Financials: 9.42% | |
| | | |
| | 5,351 | | | Chesapeake Lodging Trust
Series A, 7.750% | | | | | 143,139 | |
| | | |
| | 3,000 | | | Excel Trust, Inc.
Series B, 8.125% | | | | | 75,150 | |
| | | |
| | 19,860 | | | Hancock Holding Co.
5.950% | | | | | 475,448 | |
| | | |
| | 169 | | | Highwoods Properties, Inc.
Series A, 8.625% | | | | | 201,363 | |
| | | |
| | 5,530 | | | iStar Financial, Inc.
Series D, 8.000% | | | | | 137,255 | |
| | | |
| | 35,000 | | | National General Holdings Corp.
Series B, 7.500% | | | | | 875,700 | |
| | | |
| | 3,747 | | | Northern Trust Corp.
Series C, 5.850% | | | | | 95,848 | |
| | | |
| | 6,800 | | | NorthStar Realty Finance Corp.
Series E, 8.750% | | | | | 171,428 | |
| | | |
| | 10,000 | | | Pennsylvania REIT
Series A, 8.250% | | | | | 265,800 | |
| | | |
| | 4,700 | | | Series B, 7.375% | | | | | 124,550 | |
| | | |
| | 1,250 | | | Prologis, Inc.
Series Q, 8.540% | | | | | 82,813 | |
| | | |
| | 10,000 | | | RBS Capital Funding Trust V
Series E, 5.900% | | | | | 242,300 | |
| | | |
| | 18,007 | | | RBS Capital Funding Trust VII Series G, 6.080% | | | | | 439,911 | |
| | | |
| | 10,000 | | | State Street Corp.
6.000% | | | | | 250,300 | |
| | | |
| | 40,550 | | | Winthrop Realty Trust, Sr. Unsec. Notes
7.750% | | | | | 1,031,187 | |
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
|
| | | |
| | | |
| | 4,400 | | | WP GLIMCHER, Inc.
Series I, 6.875% | | | | $ | 113,872 | |
| | | |
| | | | | | | | | 4,726,064 | |
| | | | | | | | | | |
| | Industrials: 1.14% | |
| | | |
| | 25,000 | | | Tsakos Energy Navigation, Ltd.
Series D, 8.750% | | | | | 571,500 | |
| | | | | | | | | | |
| | Telecommunication Services: 0.69% | |
| | | |
| | 10,000 | | | United States Cellular Corp.
7.250% | | | | | 251,400 | |
| | | |
| | 3,700 | | | Verizon Communications, Inc.
5.900% | | | | | 97,014 | |
| | | |
| | | | | | | | | 348,414 | |
| | | |
| | | | Total Preferred Stocks
(Cost $5,680,550) | | | | | 5,645,978 | |
| | | |
Principal
Amount | | | | | | | | |
|
| | Corporate Bonds: 0.96% | |
| | Financials: 0.96% | |
| | | |
| | $500,000 | | | Citigroup, Inc., Jr. Sub. Notes
5.950%, Perpetual Maturity(b)(c) | | | | | 483,125 | |
| | | |
| | | | Total Corporate Bonds
(Cost $500,000) | | | | | 483,125 | |
| | | |
| | | | Total Investments: 61.34%
(Cost $30,193,040) | | | | | 30,788,867 | |
| | |
| | | | Net Other Assets and Liabilities: 38.66% | | | 19,404,414 | (d) |
| | |
| | | | Net Assets: 100.00% | | $
| 50,193,281
|
|
Percentages are stated as a percent of net assets.
(a) Non-income producing security.
(b) Interest rate will change at a future date. Interest rate shown reflects the rate in effect at June 30, 2015.
(c) This security has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest.
(d) 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 | | | 120 | | | | 09/21/15 | | | $ | 12,326,400 | | | $ | (117,950) | |
| Total Futures Contracts | | | | | | | | | | | | $ | 12,326,400 | | | $ | (117,950) | |
| | | | |
| June 30, 2015 | | 24 | | See Notes to Financial Statements |
Portfolio of Investments (Note 9) (Unaudited)
Forward Dynamic Income Fund
Investment Abbreviations:
Jr. — Junior
REIT — Real Estate Investment Trust
S&P — Standard & Poor’s
Sr. — Senior
Sub. — Subordinated
Unsec. — Unsecured
| | | | |
| See Notes to Financial Statements | | 25 | | June 30, 2015 |
Portfolio of Investments (Note 9) (Unaudited)
Forward EM Corporate Debt Fund
| | | | | | | | | | | | |
Principal
Amount | | | | | Currency | | | Value
(Note 2) | |
| | |
| | Foreign Government Obligations: 3.99% | | | | | | | | |
| | Brazil: 0.53% | | | | | | | | |
| | 1,750,000 | | | Banco Nacional de Desenvolvimento Economico e Social, Sr. Unsec. Notes
3.375%, 09/26/16(a)(b) | | | USD | | | $ | 1,767,500 | |
| | | | | | | | | | | | |
| | Ivory Coast: 1.11% | | | | | | | | |
| | 3,900,000 | | | Ivory Coast Government International Bond, Sr. Unsec. Notes
5.750%, 12/31/32(c)(d) | | | USD | | | | 3,696,030 | |
| | | | | | | | | | | | |
| | Paraguay: 0.40% | | | | | | | | |
| | 1,300,000 | | | Republic of Paraguay, Sr. Unsec. Notes
4.625%, 01/25/23(a)(b) | | | USD | | | | 1,319,500 | |
| | | | | | | | | | | | |
| | South Korea: 0.52% | | | | | | | | |
| | | |
| | 1,800,000 | | | Export-Import Bank of Korea, Sr. Unsec. Notes
2.875%, 01/21/25 | | | USD | | | | 1,738,464 | |
| | | | | | | | | | | | |
| | Suprainternational: 1.43% | | | | | | | | |
| | | |
| | 4,700,000 | | | Africa Finance Corp., Sr. Unsec. Notes
4.375%, 04/29/20(a) | | | USD | | | | 4,758,750 | |
| | |
| | | | Total Foreign Government Obligations
(Cost $13,297,576) | | | | 13,280,244 | |
| | | | | | | | | |
| | |
| | Asset-Backed Securities: 0.07% | | | | | | | | |
| | China: 0.07% | | | | | | | | |
| | 189,361 | | | Start CLO, Ltd., Series 2011-7A, Class A
2.281%, 06/09/16(a)(e)(f) | | | USD | | | | 179,420 | |
| | 66,532 | | | Start CLO, Ltd., Series 2011-7X, Class A
2.281%, 06/09/16(e)(f) | | | USD | | | | 63,039 | |
| | | |
| | | | | | | | | | | 242,459 | |
| | |
| | | | Total Asset-Backed Securities
(Cost $255,893) | | | | 242,459 | |
|
| | Contingent Convertible Securities: 2.24% | |
| | Brazil: 1.09% | |
| | 4,000,000 | | | Banco do Brasil SA/Cayman, Jr. Sub. Notes
9.000%, Perpetual Maturity(a)(e)(g) | | | USD | | | | 3,628,800 | |
| | | |
| | | | | | | | | | | | |
| | South Korea: 0.56% | |
| | 1,800,000 | | | Woori Bank, Sub. Notes
4.750%, 04/30/24(a) | | | USD | | | | 1,864,112 | |
| | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Principal
Amount | | | | | Currency | | | Value
(Note 2) | |
| | |
| | | | | | | | | |
| | Turkey: 0.59% | |
| | 2,000,000 | | | Turkiye Vakiflar Bankasi, Sub. Notes
6.875%, 02/03/25(a)(e) | | | USD | | | $ | 1,974,920 | |
| | |
| | | | Total Contingent Convertible Securities
(Cost $7,759,473) | | | | 7,467,832 | |
|
| | Corporate Bonds: 94.98% | |
| | Argentina: 4.67% | |
| | 7,831,000 | | | Cia de Transporte de Energia Electrica en Alta Tension Transener SA, Sr. Unsec. Notes
9.750%, 08/15/21(a) | | | USD | | | | 7,067,477 | |
| | 5,022,604 | | | MetroGas SA, Sr. Unsec. Notes, A-L
8.875%, 12/31/18(a) | | | USD | | | | 4,746,361 | |
| | 91,670 | | | PIK Notes 8.875% (or 8.875% PIK), 12/31/18(a) | | | USD | | | | 77,919 | |
| | 3,724,371 | | | Provincia de Buenos Aires, Sr. Unsec. Notes
9.950%, 06/09/21(a) | | | USD | | | | 3,649,884 | |
| | | |
| | | | | | | | | | | 15,541,641 | |
| | | | | | | | | | | | |
| | Azerbaijan: 0.60% | |
| | 2,000,000 | | | International Bank of Azerbaijan OJSC Via Rubrika Finance Co., Ltd., Sr. Unsec. Notes, EMTN
7.750%, 09/26/18 | | | USD | | | | 1,990,000 | |
| | | | | | | | | | | | |
| | Bangladesh: 1.46% | |
| | 4,800,000 | | | Banglalink Digital Communications, Ltd., Sr. Unsec. Notes
8.625%, 05/06/19(a) | | | USD | | | | 4,872,000 | |
| | | |
| | | | | | | | | | | | |
| | Bolivia: 1.47% | |
| | 4,930,000 | | | Trilogy International Partners Llc/Trilogy International Finance, Inc., First Lien Notes
10.250%, 08/15/16(a) | | | USD | | | | 4,896,106 | |
| | | | | | | | | | | | | |
| | Brazil: 5.91% | |
| | 4,000,000 | | | BRF SA, Sr. Unsec. Notes
4.750%, 05/22/24(a)(b) | | | USD | | | | 3,945,000 | |
| | 6,000,000 | | | General Shopping Investments, Ltd., Sub. Notes
12.000%, Perpetual Maturity(c)(e)(g) | | | USD | | | | 4,642,500 | |
| | 5,000,000 | | | Odebrecht Finance, Ltd., Sr. Unsec. Notes
5.250%, 06/27/29(a) | | | USD | | | | 3,776,000 | |
| | | | |
| June 30, 2015 | | 26 | | See Notes to Financial Statements |
Portfolio of Investments (Note 9) (Unaudited)
Forward EM Corporate Debt Fund
| | | | | | | | | | | | |
Principal
Amount | | | | | Currency | | | Value
(Note 2) | |
|
| | | |
| | Brazil (continued): 5.91% | |
| | | |
| | 3,750,000 | | | Petrobras Global Finance BV, Sr. Unsec. Notes
3.250%, 03/17/17(b) | | | USD | | | $ | 3,698,775 | |
| | | |
| | 3,750,000 | | | 6.250%, 03/17/24(b) | | | USD | | | | 3,629,887 | |
| | | |
| | | | | | | | | | | 19,692,162 | |
| | | | | | | | | | | | |
| | Chile: 6.29% | |
| | | |
| | 2,300,000 | | | Empresa Electrica Angamos SA, First Lien Notes
4.875%, 05/25/29(a) | | | USD | | | | 2,269,840 | |
| | | |
| | 3,300,000 | | | GNL Quintero SA, Sr. Unsec. Notes
4.634%, 07/31/29(a)(b) | | | USD | | | | 3,311,299 | |
| | | |
| | 9,228,185 | | | Inversiones Alsacia SA, First Lien Notes
8.000%, 12/31/18(a)(f) | | | USD | | | | 5,121,643 | |
| | | |
| | 2,800,000 | | | Latam Airlines 2015-1 Pass Through Trust A, Sec. Notes
4.200%, 11/15/27(a) | | | USD | | | | 2,775,500 | |
| | | |
| | 2,300,000 | | | SACI Falabella, Sr. Unsec. Notes
4.375%, 01/27/25(a) | | | USD | | | | 2,293,845 | |
| | | |
| | 1,800,000 | | | Transelec SA, Sr. Unsec. Notes
4.250%, 01/14/25(a)(b) | | | USD | | | | 1,806,935 | |
| | | |
| | 3,300,000 | | | VTR Finance BV, Sec. Notes
6.875%, 01/15/24(a) | | | USD | | | | 3,380,355 | |
| | | |
| | | | | | | | | | | 20,959,417 | |
| | | | | | | | | | | | |
| | China: 8.00% | |
| | | |
| | 3,800,000 | | | Baidu, Inc., Sr. Unsec. Notes
2.750%, 06/09/19(b) | | | USD | | | | 3,806,171 | |
| | | |
| | 1,750,000 | | | CNOOC Curtis Funding No. 1, Ltd., Sr. Unsec. Notes
4.500%, 10/03/23(a) | | | USD | | | | 1,839,642 | |
| | | |
| | 3,000,000 | | | CNOOC Finance 2013, Ltd., Sr. Unsec. Notes
3.000%, 05/09/23(a)(b) | | | USD | | | | 2,843,292 | |
| | | |
| | 7,000,000 | | | Sinopec Group Overseas Development 2014, Ltd., Sr. Unsec. Notes
4.375%, 04/10/24(a)(b) | | | USD | | | | 7,350,343 | |
| | | |
| | 6,800,000 | | | State Grid Overseas Investment 2013, Ltd., Sr. Unsec. Notes
3.125%, 05/22/23(a)(b) | | | USD | | | | 6,675,581 | |
| | | |
| | 4,000,000 | | | Tencent Holdings, Ltd., Sr. Unsec. Notes
3.375%, 03/05/18(a)(b) | | | USD | | | | 4,131,908 | |
| | | |
| | | | | | | | | | | 26,646,937 | |
| | | | | | | | | | | | |
| | Colombia: 9.41% | |
| | | |
| | 5,655,000 | | | Avianca Holdings SA, Sr. Unsec. Notes
8.375%, 05/10/20(a)(b) | | | USD | | | | 5,725,687 | |
| | | | | | | | | | | | |
Principal
Amount | | | | | Currency | | | Value
(Note 2) | |
|
| | | |
| | | |
| | 5,117,000 | | | Bancolombia SA, Sub. Notes
5.125%, 09/11/22(b) | | | USD | | | $ | 5,132,351 | |
| | | |
| | 5,273,000 | | | Colombia Telecomunicaciones SA ESP, Sr. Unsec. Notes
5.375%, 09/27/22(a)(b) | | | USD | | | | 5,240,044 | |
| | | |
| | 4,000,000 | | | Millicom International Cellular SA, Sr. Unsec. Notes
6.625%, 10/15/21(a) | | | USD | | | | 4,130,000 | |
| | | |
| | 1,865,000 | | | Pacific Rubiales Energy Corp., Sr. Unsec. Notes
7.250%, 12/12/21(b)(c) | | | USD | | | | 1,538,625 | |
| | | |
| | 2,800,000 | | | SUAM Finance BV, Sr. Unsec. Notes
4.875%, 04/17/24(a) | | | USD | | | | 2,828,000 | |
| | | |
| | 6,385,000 | | | Transportadora de Gas Internacional SA ESP, Sr. Unsec. Notes
5.700%, 03/20/22(b)(c) | | | USD | | | | 6,728,194 | |
| | | |
| | | | | | | | | | | 31,322,901 | |
| | | | | | | | | | | | |
| | Costa Rica: 0.92% | |
| | | |
| | 3,000,000 | | | Banco Nacional de Costa Rica, Sr. Unsec. Notes
4.875%, 11/01/18(a)(b) | | | USD | | | | 3,075,000 | |
| | | | | | | | | | | | |
| | Guatemala: 1.03% | |
| | | |
| | 3,250,000 | | | Bantrab Senior Trust, Sr. Unsec. Notes
9.000%, 11/14/20(a)(b) | | | USD | | | | 3,425,594 | |
| | | | | | | | | | | | |
| | Hong Kong: 2.33% | |
| | | |
| | 3,300,000 | | | Hutchison Whampoa International 12, II, Ltd., Sr. Unsec. Notes
2.000%, 11/08/17(a)(b) | | | USD | | | | 3,319,879 | |
| | | |
| | 1,200,000 | | | Hutchison Whampoa International 14, Ltd., Unsec. Notes
3.625%, 10/31/24(a) | | | USD | | | | 1,181,079 | |
| | | |
| | 4,250,000 | | | MIE Holdings Corp., Sr. Unsec. Notes
7.500%, 04/25/19(a) | | | USD | | | | 3,251,250 | |
| | | |
| | | | | | | | | | | 7,752,208 | |
| | | | | | | | | | | | |
| | India: 4.81% | |
| | | |
| | 2,800,000 | | | Bharti Airtel International Netherlands BV, Sr. Unsec. Notes
5.350%, 05/20/24(b)(c) | | | USD | | | | 2,975,384 | |
| | | |
| | 2,750,000 | | | Reliance Industries, Ltd., Sr. Unsec. Notes
4.875%, 02/10/45(a) | | | USD | | | | 2,475,311 | |
| | | |
| | 4,850,000 | | | Rolta Americas Llc, Sr. Unsec. Notes
8.875%, 07/24/19(a) | | | USD | | | | 4,074,000 | |
| | | | |
| See Notes to Financial Statements | | 27 | | June 30, 2015 |
Portfolio of Investments (Note 9) (Unaudited)
Forward EM Corporate Debt Fund
| | | | | | | | | | | | |
Principal
Amount | | | | | Currency | | | Value
(Note 2) | |
|
| | | |
| | India (continued): 4.81% | |
| | | |
| | 6,200,000 | | | State Bank of India, Sr. Unsec. Notes
4.875%, 04/17/24(a)(b) | | | USD | | | $ | 6,497,203 | |
| | | |
| | | | | | | | | | | 16,021,898 | |
| | | | | | | | | | | | |
| | Kazakhstan: 1.09% | |
| | | |
| | 10,500,000 | | | Tristan Oil, Ltd., Sec. Notes
0.000%, 01/01/16(c)(f) | | | USD | | | | 3,622,500 | |
| | | | | | | | | | | | |
| | Latvia: 0.80% | |
| | | |
| | 2,700,000 | | | Four Finance SA, Sr. Unsec. Notes
11.750%, 08/14/19(a) | | | USD | | | | 2,656,125 | |
| | | | | | | | | | | | |
| | Malaysia: 0.40% | |
| | | |
| | 5,000,000 | | | Special Port Vehicle Bhd, Series 9
5.550%, 07/30/15(f) | | | MYR | | | | 1,318,023 | |
| | | | | | | | | | | | |
| | Mexico: 10.62% | |
| | | |
| | 7,000,000 | | | BBVA Bancomer SA, Sub. Notes
6.750%, 09/30/22(a)(b) | | | USD | | | | 7,726,250 | |
| | | |
| | 6,000,000 | | | Cemex SAB de CV, Sec. Notes
6.500%, 12/10/19(a)(b) | | | USD | | | | 6,313,200 | |
| | 750,000 | | | Comision Federal de Electricidad, Sr. Unsec. Notes
4.875%, 01/15/24(a) | | | USD | | | | 768,750 | |
| | | |
| | 1,800,000 | | | El Puerto de Liverpool SAB de CV, Sr. Unsec. Notes
3.950%, 10/02/24(a) | | | USD | | | | 1,764,000 | |
| | | |
| | 3,000,000 | | | Grupo Bimbo SAB de CV, Sr. Unsec. Notes
3.875%, 06/27/24(a) | | | USD | | | | 2,994,570 | |
| | | |
| | 1,500,000 | | | Grupo Posadas SAB CV, Sr. Unsec. Notes
7.875%, 06/30/22(a) | | | USD | | | | 1,522,500 | |
| | | |
| | 5,840,000 | | | Latina Offshore, Ltd., First Lien Notes
8.875%, 07/03/18(a) | | | USD | | | | 5,343,600 | |
| | | |
| | 11,890,651 | | | Maxcom Telecomunicaciones SAB de CV, First Lien Notes
6.000%, 06/15/20(d) | | | USD | | | | 8,917,988 | |
| | | |
| | | | | | | | | | | 35,350,858 | |
| | | | | | | | | | | | |
| | Morocco: 1.51% | |
| | | |
| | 4,800,000 | | | Office Cherifien des Phosphates SA, Sr. Unsec. Notes
5.625%, 04/25/24(a) | | | USD | | | | 5,022,576 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Principal
Amount | | | | | Currency | | | Value
(Note 2) | |
|
| | | |
| | Nigeria: 2.95% | |
| | | |
| | 4,800,000 | | | FBN Finance Co., BV, Sub. Notes
8.000%, 07/23/21(a)(e) | | | USD | | | $ | 4,425,600 | |
| | | |
| | 6,297,000 | | | Seven Energy, Ltd., Sec. Notes
10.250%, 10/11/21(a) | | | USD | | | | 5,383,935 | |
| | | |
| | | | | | | | | | | 9,809,535 | |
| | | | | | | | | | | | |
| | Norway: 0.98% | |
| | | |
| | 5,400,000 | | | Island Drilling Co. ASA, Second Lien Notes
9.500%, 04/03/18 | | | USD | | | | 3,253,500 | |
| | | | | | | | | | | | |
| | Peru: 0.91% | |
| | | |
| | 2,870,000 | | | SAN Miguel Industrias Pet SA, Sr. Unsec. Notes
7.750%, 11/06/20(a) | | | USD | | | | 3,027,850 | |
| | | | | | | | | | | | |
| | Poland: 1.18% | |
| | | |
| | 3,800,000 | | | PKO Finance AB, Sr. Unsec. Notes
4.630%, 09/26/22(a)(b) | | | USD | | | | 3,937,750 | |
| | | | | | | | | | | | |
| | Qatar: 2.43% | |
| | | |
| | 4,000,000 | | | QNB Finance, Ltd., Sr. Unsec. Notes
2.875%, 04/29/20(b) | | | USD | | | | 4,074,440 | |
| | | |
| | 3,722,550 | | | Ras Laffan Liquefied Natural Gas Co., Ltd. II, Sec. Notes
5.298%, 09/30/20(b)(c) | | | USD | | | | 4,029,660 | |
| | | |
| | | | | | | | | | | 8,104,100 | |
| | | | | | | | | | | | |
| | Russia: 6.77% | |
| | | |
| | 2,500,000 | | | Alfa Bank OJSC Via Alfa Bond Issuance Plc, Sr. Unsec. Notes
7.750%, 04/28/21(b)(c) | | | USD | | | | 2,480,000 | |
| | | |
| | 4,100,000 | | | Borets Finance, Ltd., Unsec. Notes
7.625%, 09/26/18(a) | | | USD | | | | 3,669,500 | |
| | | |
| | 5,300,000 | | | EDC Finance, Ltd., Sr. Unsec. Notes
4.875%, 04/17/20(a) | | | USD | | | | 4,682,550 | |
| | | |
| | 2,800,000 | | | Eurasian Development Bank, Sr. Unsec. Notes 5.000%, 09/26/20(a)(b) | | | USD | | | | 2,772,280 | |
| | | |
| | 4,500,000 | | | Evraz Group SA, Sr. Unsec. Notes 6.500%, 04/22/20(c) | | | USD | | | | 4,092,750 | |
| | | |
| | 80,500,000 | | | Federal Grid Co., OJSC via Federal Grid Finance, Ltd., Unsec Notes, Euro-Medium-Term Notes
8.446%, 03/13/19 | | | RUB | | | | 1,289,080 | |
| | | | |
| June 30, 2015 | | 28 | | See Notes to Financial Statements |
Portfolio of Investments (Note 9) (Unaudited)
Forward EM Corporate Debt Fund
| | | | | | | | | | | | |
Principal
Amount | | | | | Currency | | | Value
(Note 2) | |
|
| | | |
| | Russia (continued): 6.77% | |
| | | |
| | 47,000,000 | | | RusHydro Finance, Ltd., Sec. Notes, Euro-Medium-Term Notes
7.875%, 10/28/15 | | | RUB | | | $ | 838,982 | |
| | | |
| | 2,000,000 | | | Russian Agricultural Bank OJSC Via RSHB Capital SA, Sub. Notes
8.500%, 10/16/23(a) | | | USD | | | | 1,820,000 | |
| | | |
| | 1,050,000 | | | Sberbank of Russia Via SB Capital SA, Sub. Notes
5.125%, 10/29/22(c) | | | USD | | | | 904,575 | |
| | | |
| | | | | | | | | | | 22,549,717 | |
| | | | | | | | | | | | |
| | Saudi Arabia: 1.27% | | | | | | | | |
| | | |
| | 4,250,000 | | | Saudi Electricity Global Sukuk Co. 2, Unsec. Notes
5.060%, 04/08/43(a) | | | USD | | | | 4,228,750 | |
| | | | | | | | | | | | |
| | Serbia: 1.23% | | | | | | | | |
| | | |
| | 3,450,000 | | | United Group BV, Sec. Notes
7.875%, 11/15/20(a) | | | EUR | | | | 4,077,471 | |
| | | | | | | | | | | | |
| | Singapore: 1.08% | | | | | | | | |
| | | |
| | 3,800,000 | | | Neptuno Finance, Ltd., First Lien Notes 9.750%, 11/07/19(a) | | | USD | | | | 3,610,000 | |
| | | | | | | | | | | | |
| | South Korea: 6.27% | | | | | | | | |
| | | |
| | 5,350,000 | | | Doosan Infracore Co., Ltd., Sr. Unsec. Notes 3.250%, 10/05/42(b)(d) | | | USD | | | | 5,389,906 | |
| | | |
| | 1,500,000 | | | Korea East-West Power Co., Ltd., Sr. Unsec. Notes 2.500%, 07/16/17(a)(b) | | | USD | | | | 1,523,307 | |
| | | |
| | 5,000,000 | | | Korea Exchange Bank, Sr. Unsec. Notes 2.500%, 06/12/19(a) | | | USD | | | | 5,009,275 | |
| | | |
| | 4,000,000 | | | Korea Finance Corp., Sr. Unsec. Notes 2.250%, 08/07/17(b) | | | USD | | | | 4,050,948 | |
| | | |
| | 1,800,000 | | | Korea Gas Corp., Sr. Unsec. Notes 3.875%, 02/12/24(a)(b) | | | USD | | | | 1,891,312 | |
| | | |
| | 2,000,000 | | | Korea Resources Corp., Sr. Unsec. Notes 2.125%, 05/02/18(a)(b) | | | USD | | | | 2,006,664 | |
| | | |
| | 1,000,000 | | | SK Telecom Co., Ltd., Sr. Unsec. Notes 2.125%, 05/01/18(a)(b) | | | USD | | | | 1,009,864 | |
| | | |
| | | | | | | | | | | 20,881,276 | |
| | | | | | | | | | | | |
| | Turkey: 4.18% | | | | | | | | |
| | | |
| | 3,000,000 | | | Anadolu Efes Biracilik Ve Malt Sanayii AS, Sr. Unsec. Notes
3.375%, 11/01/22(b)(c) | | | USD | | | | 2,697,000 | |
| | | | | | | | | | | | |
Principal
Amount | | | | | Currency | | | Value
(Note 2) | |
|
| | | |
| | | |
| | 2,800,000 | | | Turk Telekomunikasyon AS, Sr. Unsec. Notes 4.875%, 06/19/24(a)(b) | | | USD | | | $ | 2,799,244 | |
| | | |
| | 5,550,000 | | | Turkish Airlines 2015-1 Class A Pass Through Trust, Sec. Notes
4.200%, 03/15/27(a) | | | USD | | | | 5,522,250 | |
| | | |
| | 1,500,000 | | | Turkiye Is Bankasi AS, Sr. Unsec. Notes 5.000%, 04/30/20(a) | | | USD | | | | 1,519,680 | |
| | | |
| | 1,300,000 | | | Yasar Holdings AS, Sr. Unsec. Notes 8.875%, 05/06/20(a) | | | USD | | | | 1,378,000 | |
| | | |
| | | | | | | | | | | 13,916,174 | |
| | | | | | | | | | | | |
| | Ukraine: 0.38% | | | | | | | | |
| | | |
| | 2,000,000 | | | Ukraine Railways via Shortline Plc, Sr. Unsec. Notes
9.500%, 05/21/18(c) | | | USD | | | | 1,255,400 | |
| | | | | | | | | | | | |
| | United Arab Emirates: 1.07% | | | | | | | | |
| | | |
| | 3,800,000 | | | Millennium Offshore Services Superholdings Llc, Sec. Notes 9.500%, 02/15/18(a)(b) | | | USD | | | | 3,572,000 | |
| | | | | | | | | | | | |
| | United Kingdom: 0.24% | | | | | | | | |
| | | |
| | 800,000 | | | Standard Chartered Plc, Sr. Unsec. Notes
1.700%, 04/17/18(a) | | | USD | | | | 797,704 | |
| | | | | | | | | | | | |
| | Venezuela: 1.94% | | | | | | | | |
| | | |
| | 7,300,000 | | | Petroleos de Venezuela SA, Unsec. Notes 6.000%, 05/16/24(c) | | | USD | | | | 2,628,000 | |
| | | |
| | 3,601,000 | | | PSOS Finance, Ltd., First Lien Notes 11.750%, 04/23/18(a)(f) | | | USD | | | | 3,366,935 | |
| | | |
| | 3,245,000 | | | Sidetur Finance BV, Sr. Unsec. Notes 10.000%, 04/20/16(c)(f)(h) | | | USD | | | | 451,055 | |
| | | |
| | | | | | | | | | | 6,445,990 | |
| | | | | | | | | | | | |
| | Vietnam: 0.78% | | | | | | | | |
| | | |
| | 3,000,000 | | | Golden Close Maritime Corp., Ltd., Sec. Notes
9.000%, 10/24/19(a) | | | USD | | | | 2,610,000 | |
| | | |
| | | | Total Corporate Bonds
(Cost $336,833,199) | | | | | | | 316,243,163 | |
| | | |
| | | | Total Investments: 101.28%
(Cost $358,146,141) | | | | | | | 337,233,698 | |
| | |
| | | | Net Other Assets and Liabilities: (1.28)% | | | | (4,254,994 | )(i) |
| | | |
| | | | Net Assets: 100.00% | | | | | | $ | 332,978,704 | |
| | | | |
| See Notes to Financial Statements | | 29 | | June 30, 2015 |
Portfolio of Investments (Note 9) (Unaudited)
Forward EM Corporate Debt Fund
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 $246,300,471, representing 73.97% of net assets.
(b) 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 $138,022,459, representing 41.45% of net assets.
(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 by the issuer 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, unless otherwise noted below. At
period end, the aggregate market value of those securities was $41,741,673, representing 12.54% of net assets.
(d) Represents a step-up bond. Rate disclosed is as of June 30, 2015.
(e) Interest rate will change at a future date. Interest rate shown reflects the rate in effect at June 30, 2015.
(f) Security determined to be illiquid under the procedures approved by the Fund’s Board of Trustees.
(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) Includes cash which is being held as collateral for potential transactions in swap contracts.
Securities determined to be illiquid under the procedures approved by the Fund’s Board of Trustees are as follows:
| | | | | | | | | | | | | | |
| Date(s) of Purchase | | Security | | Cost | | | Value | | | % of Net
Assets | |
| 4/25/13-08/29/14 | | Inversiones Alsacia SA, First Lien Notes
8.000%, 12/31/18(a)(f) | | $ | 7,754,300 | | | $ | 5,121,643 | | | | 1.54% | |
| 07/01/14-12/11/14 | | PSOS Finance, Ltd., First Lien Notes
11.750%, 04/23/18(a)(f) | | | 3,605,530 | | | | 3,366,935 | | | | 1.01% | |
| 09/13/12-05/27/15 | | Sidetur Finance BV, Sr. Unsec. Notes
10.000%, 04/20/16(c)(f)(h) | | | 2,462,596 | | | | 451,055 | | | | 0.13% | |
| 11/20/14 | | Special Port Vehicle Bhd, Series 9
5.550%, 07/30/15(f) | | | 1,466,666 | | | | 1,318,023 | | | | 0.40% | |
| 12/06/11-09/10/14 | | Start CLO, Ltd., Series 2011-7A, Class A
2.281%, 06/09/16(a)(e)(f) | | | 189,361 | | | | 179,420 | | | | 0.05% | |
| 10/02/14 | | Start CLO, Ltd., Series 2011-7X, Class A
2.281%, 06/09/16(e)(f) | | | 66,532 | | | | 63,039 | | | | 0.02% | |
| 05/09/12-09/17/13 | | Tristan Oil, Ltd., Sec. Notes
0.000%, 01/01/16(c)(f) | | | 9,278,420 | | | | 3,622,500 | | | | 1.09% | |
| | | | $ | 24,823,405 | | | $ | 14,122,615 | | | | 4.24% | |
Investment Abbreviations:
EMTN — Euro Medium Term Note
Jr. — Junior
PIK — Payment in-kind
Sec. — Secured
Sr. — Senior
Sub. — Subordinated
Unsec. — Unsecured
| | | | |
| June 30, 2015 | | 30 | | See Notes to Financial Statements |
Portfolio of Investments (Note 9) (Unaudited)
Forward EM Corporate Debt Fund
Currency Abbreviations:
EUR — Euro
MYR — Malaysian Ringgit
RUB — Russian Ruble
USD — U.S. Dollar
| | | | |
| See Notes to Financial Statements | | 31 | | June 30, 2015 |
Portfolio of Investments (Note 9) (Unaudited)
Forward Emerging Markets Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | |
| | Common Stocks: 78.81% | | | | | | |
| | Bangladesh: 0.06% | | | | | | |
| | | |
| | 22,834 | | | Beximco Pharmaceuticals, Ltd., GDR(a) | | | | $ | 6,548 | |
| | | | | | | | | | |
| | Brazil: 5.65% | | | | | | |
| | | |
| | 50,600 | | | BM&F Bovespa SA - Bolsa de Valores Mercadoras e Futuros | | | | | 190,903 | |
| | | |
| | 40,500 | | | Hypermarcas SA(b) | | | | | 295,306 | |
| | | |
| | 28,000 | | | Transmissora Alianca de Energia Electria SA | | | | | 185,520 | |
| | | |
| | | | | | | | | 671,729 | |
| | | | | | | | | | |
| | Cambodia: 1.40% | | | | | | |
| | | |
| | 226,000 | | | NagaCorp, Ltd. | | | | | 166,478 | |
| | | | | | | | | | |
| | Chile: 1.05% | | | | | | |
| | | |
| | 60,000 | | | Quinenco SA | | | | | 125,298 | |
| | | | | | | | | | |
| | China: 10.75% | | | | | | |
| | | |
| | 382,000 | | | Century Sage Scientific Holdings, Ltd.(a) | | | | | 110,388 | |
| | | |
| | 200,000 | | | China Galaxy Securities Co., Ltd., Class H | | | | | 260,593 | |
| | | |
| | 204,000 | | | China Machinery Engineering Corp., Class H | | | | | 220,013 | |
| | | |
| | 311,021 | | | China Pioneer Pharma Holdings, Ltd. | | | | | 180,156 | |
| | | |
| | 210,000 | | | China South City Holdings, Ltd. | | | | | 72,605 | |
| | | |
| | 10,000 | | | China Yuchai International, Ltd. | | | | | 167,500 | |
| | | |
| | 168,000 | | | Cosmo Lady China Holdings Co., Ltd.(a)(c) | | | | | 165,582 | |
| | | |
| | 170,000 | | | Qingdao Port International Co., Ltd., Class H(a)(c) | | | | | 100,225 | |
| | | |
| | | | | | | | | 1,277,062 | |
| | | | | | | | | | |
| | Czech Republic: 1.17% | | | | | | |
| | | |
| | 4,100 | | | Pegas Nonwovens SA | | | | | 138,435 | |
| | | | | | | | | | |
| | Egypt: 0.86% | | | | | | |
| | | |
| | 9,466 | | | Arabian Cement Co.(d) | | | | | 18,312 | |
| | | |
| | 2,960 | | | Eastern Tobacco(d) | | | | | 83,399 | |
| | | |
| | | | | | | | | 101,711 | |
| | | | | | | | | | |
| | Georgia: 1.42% | | | | | | |
| | | |
| | 5,500 | | | Bank of Georgia Holdings Plc | | | | | 168,517 | |
| | | | | | | | | | |
| | Greece: 1.27% | | | | | | |
| | | |
| | 26,800 | | | Plaisio Computers SA(d)(e) | | | | | 151,183 | |
| | | | | | | | | | |
| | Hong Kong: 4.64% | | | | | | |
| | | |
| | 113,000 | | | China Gas Holdings, Ltd. | | | | | 181,055 | |
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
|
| | | |
| | | |
| | 5,300 | | | Guangdong Investment, Ltd., Unsponsored ADR | | | | $ | 370,364 | |
| | | |
| | | | | | | | | 551,419 | |
| | | | | | | | | | |
| | Indonesia: 4.12% | | | | | | |
| | | |
| | 296,100 | | | AKR Corporindo Tbk PT | | | | | 131,588 | |
| | | |
| | 1,250,000 | | | Arwana Citramulia Tbk PT | | | | | 49,690 | |
| | | |
| | 1,220,640 | | | Astra Graphia Tbk PT | | | | | 201,418 | |
| | | |
| | 850,000 | | | Kalbe Farma Tbk PT | | | | | 106,788 | |
| | | |
| | | | | | | | | 489,484 | |
| | | | | | | | | | |
| | Malaysia: 5.03% | | | | | | |
| | | |
| | 115,000 | | | Globetronics Technology Bhd | | | | | 181,354 | |
| | | |
| | 517,031 | | | Oldtown Bhd | | | | | 219,255 | |
| | | |
| | 150,000 | | | Power Root Bhd | | | | | 79,910 | |
| | | |
| | 160,800 | | | Silverlake Axis, Ltd. | | | | | 117,002 | |
| | | |
| | | | | | | | | 597,521 | |
| | | | | | | | | | |
| | Mexico: 4.45% | | | | | | |
| | | |
| | 110,000 | | | Bolsa Mexicana de Valores SAB de CV | | | | | 190,361 | |
| | | |
| | 123,399 | | | Gentera SAB de CV | | | | | 219,437 | |
| | | |
| | 60,525 | | | PLA Administradora Industrial S de RL de CV | | | | | 118,412 | |
| | | |
| | | | | | | | | 528,210 | |
| | | | | | | | | | |
| | Peru: 0.96% | | | | | | |
| | | |
| | 80,080 | | | Grana y Montero SAA | | | | | 114,598 | |
| | | | | | | | | | |
| | Philippines: 6.58% | | | | | | |
| | | |
| | 1,100,000 | | | 8990 Holdings, Inc. | | | | | 176,869 | |
| | | |
| | 80,000 | | | Concepcion Industrial Corp. | | | | | 101,220 | |
| | | |
| | 660,760 | | | D&L Industries, Inc. | | | | | 284,585 | |
| | | |
| | 87,495 | | | First Gen Corp. | | | | | 52,392 | |
| | | |
| | 100,900 | | | Robinsons Retail Holdings, Inc. | | | | | 166,600 | |
| | | |
| | | | | | | | | 781,666 | |
| | | | | | | | | | |
| | Poland: 0.94% | | | | | | |
| | | |
| | 10,000 | | | Prime Car Management SA | | | | | 111,968 | |
| | | | | | | | | | |
| | Russia: 0.50% | | | | | | |
| | | |
| | 93,700 | | | HMS Hydraulic Machines and Systems Group Plc, GDR(a)(d) | | | | | 59,968 | |
| | | | | | | | | | |
| | | | |
| June 30, 2015 | | 32 | | See Notes to Financial Statements |
Portfolio of Investments (Note 9) (Unaudited)
Forward Emerging Markets Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
|
| | |
| | Singapore: 0.99% | | | | | | |
| | | |
| | 96,000 | | | OSIM International, Ltd. | | | | $ | 117,964 | |
| | | | | | | | | | |
| | South Korea: 2.70% | | | | | | |
| | | |
| | 10,000 | | | Mirae Asset Life Insurance Co., Ltd.(b) | | | | | 67,237 | |
| | | |
| | 9,609 | | | Samjin Pharmaceutical Co., Ltd. | | | | | 254,127 | |
| | | |
| | | | | | | | | 321,364 | |
| | | | | | | | | | |
| | Sri Lanka: 5.91% | | | | | | |
| | | |
| | 226,608 | | | Commercial Bank of Ceylon Plc, Non-Voting Depository Receipt | | | | | 223,559 | |
| | | |
| | 190,924 | | | Hatton National Bank Plc, Non-Voting Depository Receipt | | | | | 246,860 | |
| | | |
| | 1,791,963 | | | Piramal Glass Ceylon Plc | | | | | 83,036 | |
| | | |
| | 710,002 | | | Textured Jersey Lanka Plc | | | | | 148,580 | |
| | | |
| | | | | | | | | 702,035 | |
| | | | | | | | | | |
| | Taiwan: 8.87% | | | | | | |
| | | |
| | 31,000 | | | FineTek Co., Ltd. | | | | | 126,092 | |
| | | |
| | 266,900 | | | Formosan Rubber Group, Inc. | | | | | 251,291 | |
| | | |
| | 154,000 | | | Kinik Co. | | | | | 293,481 | |
| | | |
| | 1,584 | | | Mega Financial Holding Co., Ltd. | | | | | 1,427 | |
| | | |
| | 222,000 | | | Wah Lee Industrial Corp. | | | | | 381,338 | |
| | | |
| | | | | | | | | 1,053,629 | |
| | | | | | | | | | |
| | Thailand: 4.48% | | | | | | |
| | | |
| | 187,500 | | | Bangkok Aviation Fuel Services Pcl | | | | | 142,948 | |
| | | |
| | 458,100 | | | Jasmine International Pcl | | | | | 71,884 | |
| | | |
| | 237,000 | | | RS Pcl | | | | | 95,430 | |
| | | |
| | 662,601 | | | TTW Pcl | | | | | 221,681 | |
| | | |
| | | | | | | | | 531,943 | |
| | | | | | | | | | |
| | Turkey: 2.32% | | | | | | |
| | | |
| | 131,707 | | | Anadolu Hayat Emeklilik AS | | | | | 276,182 | |
| | | | | | | | | | |
| | Ukraine: 0.55% | | | | | | |
| | | |
| | 6,500 | | | MHP SA, GDR(a) | | | | | 65,650 | |
| | | | | | | | | | |
| | United Kingdom: 1.05% | | | | | | |
| | | |
| | 41,100 | | | Stock Spirits Group Plc | | | | | 124,636 | |
| | | | | | | | | | |
| | Vietnam: 1.09% | | | | | | |
| | | |
| | 35,000 | | | Masan Group Corp.(b) | | | | | 129,817 | |
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
|
| | | |
| | | |
| | | | Total Common Stocks
(Cost $9,102,585) | | | | $ | 9,365,015 | |
|
| | Loan Participation Notes: 4.78% | |
| | Bangladesh: 0.96% | |
| | | |
| | 126,500 | | | Titas Gas Transmission & Distribution Co., Ltd., (Loan Participation Notes issued by Deutsche Bank AG, London), expiring 01/27/21 | | | | | 113,854 | |
| | | | | | | | | | |
| | India: 2.58% | |
| | | |
| | 38,000 | | | Engineers India, (Loan Participation Notes issued by Macquarie Bank, Ltd.), expiring 01/20/16 | | | | | 135,697 | |
| | | |
| | 39,500 | | | Rural Electrification, Ltd. (Loan Participation Notes issues by Macquarie Bank, Ltd.), expiring 06/27/16 | | | | | 170,673 | |
| | | |
| | | | | | | | | 306,370 | |
| | | | | | | | | | |
| | Pakistan: 1.24% | |
| | | |
| | 70,000 | | | Habib Bank, Ltd. (Loan Participation Notes issued by Macquarie Bank, Ltd.), expiring 07/20/16 | | | | | 147,978 | |
| | | |
| | | | Total Loan Participation Notes
(Cost $575,589) | | | | | 568,202 | |
|
| | Warrants: 0.05% | |
| | Thailand: 0.05% | |
| | | |
| | 224,559 | | | Jasmine International Pcl, Warrants, Strike Price 4.30 THB (expiring 07/05/20)(b) | | | | | 6,649 | |
| | | |
| | | | Total Warrants
(Cost $0) | | | | | 6,649 | |
| | | |
| | | | Total Investments: 83.64%
(Cost $9,678,174) | | | | | 9,939,866 | |
| | |
| | | | Net Other Assets and Liabilities: 16.36% | | | 1,943,650 | (f) |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 11,883,516 | |
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 by the issuer 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, unless otherwise noted below. At period end, the aggregate market value of those securities was $508,361, representing 4.28% of net assets.
(b) Non-income producing security.
| | | | |
| See Notes to Financial Statements | | 33 | | June 30, 2015 |
Portfolio of Investments (Note 9) (Unaudited)
Forward Emerging Markets Fund
(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 $265,807, representing 2.24% of net assets.
(d) Security determined to be illiquid under the procedures approved by the Fund’s Board of Trustees.
(e) Fair valued security under the procedures approved by the Fund’s Board of Trustees.
(f) 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 are as follows:
| | | | | | | | | | | | | | |
| Date(s) of Purchase | | Security | | Cost | | | Value | | | % of Net
Assets | |
| 05/14/14 | | Arabian Cement Co.(d) | | $ | 12,039 | | | $ | 18,312 | | | | 0.16% | |
| 10/04/12 - 05/09/13 | | Eastern Tobacco(d) | | | 42,053 | | | | 83,399 | | | | 0.70% | |
| 05/02/13 - 06/06/14 | | HMS Hydraulic Machines and Systems Group Plc, GDR(d) | | | 265,071 | | | | 59,968 | | | | 0.50% | |
| 06/20/14 - 08/26/14 | | Plaisio Computers SA(d)(e) | | | 262,976 | | | | 151,183 | | | | 1.27% | |
| | | | $ | 582,139 | | | $ | 312,862 | | | | 2.63% | |
Futures Contracts
| | | | | | | | | | | | | | | | | | |
| Description | | Position | | Contracts | | | Expiration
Date | | | Value | | | Unrealized Loss | |
MSCI Emerging Markets E-Mini Futures | | Long | | | 20 | | | | 09/21/15 | | | $ | 959,400 | | | $ | (7,753) | |
| Total Futures Contracts | | | | | | | | | | | | $ | 959,400 | | | $ | (7,753) | |
Investment Abbreviations:
ADR — American Depositary Receipt
GDR — Global Depositary Receipt
MSCI — Morgan Stanley Capital International
Currency Abbreviations:
THB — Thai Baht
| | | | |
| June 30, 2015 | | 34 | | See Notes to Financial Statements |
Portfolio of Investments (Note 9) (Unaudited)
Forward Global Dividend Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | |
| | Common Stocks: 93.71% | | | | | | |
| | China: 2.38% | | | | | | |
| | | |
| | 102,000 | | | China Machinery Engineering Corp., Class H | | | | $ | 110,006 | |
| | | |
| | 206,000 | | | China South City Holdings, Ltd. | | | | | 71,222 | |
| | | |
| | 7,000 | | | China Yuchai International, Ltd. | | | | | 117,250 | |
| | | |
| | | | | | | | | 298,478 | |
| | | | | | | | | | |
| | Denmark: 0.65% | | | | | | |
| | | |
| | 45 | | | A.P. Moller-Maersk AS, Class B(a) | | | | | 81,501 | |
| | | | | | | | | | |
| | France: 5.07% | | | | | | |
| | | |
| | 3,400 | | | Danone SA | | | | | 219,811 | |
| | | |
| | 1,300 | | | LVMH Moet Hennessy Louis Vuitton SE | | | | | 227,758 | |
| | | |
| | 2,700 | | | Orpea | | | | | 188,884 | |
| | | |
| | | | | | | | | 636,453 | |
| | | | | | | | | | |
| | Germany: 3.70% | | | | | | |
| | | |
| | 2,600 | | | Bayer AG, Sponsored ADR | | | | | 366,561 | |
| | | |
| | 6,050 | | | RIB Software AG | | | | | 97,564 | |
| | | |
| | | | | | | | | 464,125 | |
| | | | | | | | | | |
| | Hong Kong: 4.31% | | | | | | |
| | | |
| | 60,000 | | | BOC Hong Kong Holdings, Ltd. | | | | | 250,015 | |
| | | |
| | 208,000 | | | Guangdong Investment, Ltd. | | | | | 291,410 | |
| | | |
| | | | | | | | | 541,425 | |
| | | | | | | | | | |
| | Indonesia: 1.44% | | | | | | |
| | | |
| | 1,094,683 | | | Astra Graphia Tbk PT | | | | | 180,634 | |
| | | | | | | | | | |
| | Italy: 1.29% | | | | | | |
| | | |
| | 10,710 | | | Danieli & C. Officine Meccaniche SpA | | | | | 162,385 | |
| | | | | | | | | | |
| | Japan: 10.44% | | | | | | |
| | | |
| | 30,000 | | | Astellas Pharma, Inc., REIT | | | | | 427,871 | |
| | | |
| | 17,500 | | | Kuraray Co., Ltd. | | | | | 214,058 | |
| | | |
| | 25,000 | | | Santen Pharmaceutical Co., Ltd. | | | | | 354,006 | |
| | | |
| | 13,000 | | | Yumeshin Holdings Co., Ltd. | | | | | 82,853 | |
| | | |
| | 6,500 | | | Zenkoku Hosho Co., Ltd. | | | | | 231,565 | |
| | | |
| | | | | | | | | 1,310,353 | |
| | | | | | | | | | |
| | Netherlands: 0.22% | | | | | | |
| | | |
| | 1,078 | | | Amsterdam Commodities NV | | | | | 27,275 | |
| | | | | | | | | | |
| | Norway: 2.17% | | | | | | |
| | | |
| | 23,800 | | | Marine Harvest ASA | | | | | 272,895 | |
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | |
| | | | | | | |
| | Pakistan: 0.79% | | | | | | |
| | | |
| | 3,600 | | | Suncor Energy, Inc. | | | | $ | 99,151 | |
| | | | | | | | | | |
| | Peru: 1.66% | | | | | | |
| | | |
| | 1,500 | | | Credicorp, Ltd. | | | | | 208,380 | |
| | | | | | | | | | |
| | Philippines: 3.87% | | | | | | |
| | | |
| | 340,000 | | | 8990 Holdings, Inc. | | | | | 54,668 | |
| | | |
| | 483,124 | | | D&L Industries, Inc. | | | | | 208,079 | |
| | | |
| | 68,138 | | | First Gen Corp. | | | | | 40,801 | |
| | | |
| | 110,000 | | | Robinsons Retail Holdings, Inc. | | | | | 181,626 | |
| | | |
| | | | | | | | | 485,174 | |
| | | | | | | | | | |
| | Singapore: 0.66% | | | | | | |
| | | |
| | 67,000 | | | OSIM International, Ltd. | | | | | 82,329 | |
| | | | | | | | | | |
| | Sweden: 6.00% | | | | | | |
| | | |
| | 7,500 | | | Investor AB, Class B | | | | | 279,468 | |
| | | |
| | 25,700 | | | Nordea Bank AB | | | | | 320,559 | |
| | | |
| | 26,000 | | | TeliaSonera AB | | | | | 153,086 | |
| | | |
| | | | | | | | | 753,113 | |
| | | | | | | | | | |
| | Switzerland: 13.00% | | | | | | |
| | | |
| | 6,800 | | | Clariant AG | | | | | 139,353 | |
| | | |
| | 4,200 | | | Novartis AG, Sponsored ADR | | | | | 413,028 | |
| | | |
| | 600 | | | Partners Group Holding AG | | | | | 179,368 | |
| | | |
| | 13,200 | | | Roche Holdings AG, Ltd., Sponsored ADR | | | | | 462,924 | |
| | | |
| | 2,100 | | | Syngenta AG, ADR | | | | | 171,381 | |
| | | |
| | 12,500 | | | UBS Group AG | | | | | 265,121 | |
| | | |
| | | | | | | | | 1,631,175 | |
| | | | | | | | | | |
| | Taiwan: 2.04% | | | | | | |
| | | |
| | 70,000 | | | Kinik Co. | | | | | 133,400 | |
| | | |
| | 71,000 | | | Wah Lee Industrial Corp. | | | | | 121,960 | |
| | | |
| | | | | | | | | 255,360 | |
| | | | | | | | | | |
| | Thailand: 2.11% | | | | | | |
| | | |
| | 837,200 | | | Jasmine International Pcl | | | | | 131,372 | |
| | | |
| | 400,000 | | | TTW Pcl | | | | | 133,825 | |
| | | |
| | | | | | | | | 265,197 | |
| | | | | | | | | | |
| | United Kingdom: 5.41% | | | | | | |
| | | |
| | 18,000 | | | Dunelm Group Plc | | | | | 256,098 | |
| | | | |
| See Notes to Financial Statements | | 35 | | June 30, 2015 |
Portfolio of Investments (Note 9) (Unaudited)
Forward Global Dividend Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
|
| | |
| | United Kingdom (continued): 5.41% | | | | | | |
| | | |
| | 2,500 | | | HSBC Holdings Plc, Sponsored ADR | | | | $ | 112,025 | |
| | | |
| | 57,900 | | | Stock Spirits Group Plc | | | | | 175,582 | |
| | | |
| | 1,200 | | | WPP Plc, Sponsored ADR | | | | | 135,264 | |
| | | |
| | | | | | | | | 678,969 | |
| | | | | | | | | | |
| | United States: 26.50% | | | | | | |
| | | |
| | 1,900 | | | 3M Co. | | | | | 293,170 | |
| | | |
| | 1,085 | | | AvalonBay Communities, Inc. | | | | | 173,459 | |
| | | |
| | 6,230 | | | BankUnited, Inc. | | | | | 223,844 | |
| | | |
| | 885 | | | BlackRock, Inc. | | | | | 306,192 | |
| | | |
| | 3,470 | | | Cardinal Health, Inc. | | | | | 290,266 | |
| | | |
| | 6,300 | | | Comcast Corp., Class A | | | | | 378,882 | |
| | | |
| | 4,130 | | | ConocoPhillips | | | | | 253,623 | |
| | | |
| | 5,030 | | | JPMorgan Chase & Co. | | | | | 340,833 | |
| | | |
| | 4,100 | | | KLA-Tencor Corp. | | | | | 230,461 | |
| | | |
| | 9,680 | | | Pfizer, Inc. | | | | | 324,570 | |
| | | |
| | 5,000 | | | Qualcomm, Inc. | | | | | 313,150 | |
| | | |
| | 14,060 | | | Silvercrest Asset Management Group, Inc., Class A | | | | | 197,684 | |
| | | |
| | | | | | | | | 3,326,134 | |
| | | |
| | | | Total Common Stocks
(Cost $9,822,553) | | | | | 11,760,506 | |
| | | |
| | | | | | | | | | |
|
| | Limited Partnerships: 1.25% | |
| | United States: 1.25% | |
| | | |
| | 6,850 | | | KKR & Co., LP | | | | | 156,522 | |
| | | |
| | | | Total Limited Partnerships
(Cost $150,448) | | | | | 156,522 | |
| | | | | | | | | | |
|
| | Preferred Stocks: 1.08% | |
| | Germany: 1.08% | |
| | | |
| | 3,488 | | | Sixt SE | | | | | 135,304 | |
| | | |
| | | | Total Preferred Stocks
(Cost $107,860) | | | | | 135,304 | |
| | | |
| | | | | | | | | | |
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
|
| | Warrants: 0.10% | |
| | Thailand: 0.10% | |
| | | |
| | 410,392 | | | Jasmine International Pcl, Warrants, Strike Price 4.30 THB (expiring 07/05/20)(a) | | | | $ | 12,151 | |
| | | |
| | | | Total Warrants
(Cost $0) | | | | | 12,151 | |
| | | |
Principal
Amount | | | | | | | | |
|
| | Collateralized Mortgage Obligations: 0.67% | |
| | United States: 0.67% | |
| | | |
| | $544,310 | | | FHLMC, REMICS
3.000%, 06/15/27(b) | | | | | 58,458 | |
| | | |
| | 161,174 | | | FNMA, REMICS
3.500%, 11/25/20(b) | | | | | 10,169 | |
| | | |
| | 73,746 | | | 4.000%, 09/25/20(b) | | | | | 4,061 | |
| | | |
| | 178,561 | | | 4.000%, 10/25/20(b) | | | | | 11,676 | |
| | | |
| | | | | | | | | 84,364 | |
| | |
| | | | Total Collateralized Mortgage Obligations
(Cost $136,644) | | | 84,364 | |
| | | |
| | | | Total Investments: 96.81%
(Cost $10,217,505) | | | | | 12,148,847 | |
| | |
| | | | Net Other Assets and Liabilities: 3.19% | | | 400,661 | |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 12,549,508 | |
Percentages are stated as a percent of net assets.
(a) Non-income producing security.
(b) Interest only security.
Investment Abbreviations:
ADR — American Depositary Receipt
FHLMC — Federal Home Loan Mortgage Corporation
FNMA — Federal National Mortgage Association
REMICS — Real Estate Mortgage Investment Conduits
Currency Abbreviations:
THB — Thai Baht
| | | | |
| June 30, 2015 | | 36 | | See Notes to Financial Statements |
Portfolio of Investments (Note 9) (Unaudited)
Forward International Dividend Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
|
| | Common Stocks: 98.24% | |
| | Australia: 1.05% | |
| | | |
| | 4,330,000 | | | GDI Property Group | | | | $ | 2,923,211 | |
| | | | | | | | | | |
| | Brazil: 2.47% | |
| | | |
| | 517,000 | | | AMBEV SA, ADR(a) | | | | | 3,153,700 | |
| | | |
| | 980,500 | | | Bolsa de Valores Mercadorias e Futuros | | | | | 3,699,226 | |
| | | |
| | | | | | | | | 6,852,926 | |
| | | | | | | | | | |
| | Canada: 1.44% | |
| | | |
| | 144,800 | | | Suncor Energy, Inc. | | | | | 3,988,087 | |
| | | | | | | | | | |
| | China: 3.68% | |
| | | |
| | 2,286,000 | | | China Machinery Engineering Corp., Class H | | | | | 2,465,437 | |
| | | |
| | 3,250,000 | | | China Petroleum & Chemical Corp., Class H(a) | | | | | 2,804,923 | |
| | | |
| | 197,570 | | | China Yuchai International, Ltd.(a) | | | | | 3,309,298 | |
| | | |
| | 299,000 | | | Cosmo Lady China Holdings Co., Ltd.(b)(c) | | | | | 294,697 | |
| | | |
| | 2,300,000 | | | Qingdao Port International Co., Ltd., Class H(b)(c) | | | | | 1,355,987 | |
| | | |
| | | | | | | | | 10,230,342 | |
| | | | | | | | | | |
| | Denmark: 1.15% | |
| | | |
| | 1,760 | | | A.P. Moller-Maersk AS, Class B(d) | | | | | 3,187,615 | |
| | | | | | | | | | |
| | Egypt: 0.83% | |
| | | |
| | 82,100 | | | Eastern Tobacco(e) | | | | | 2,313,203 | |
| | | | | | | | | | |
| | France: 9.24% | |
| | | |
| | 136,000 | | | AXA SA | | | | | 3,431,154 | |
| | | |
| | 53,000 | | | Danone SA(a) | | | | | 3,426,460 | |
| | | |
| | 25,100 | | | LVMH Moet Hennessy Louis Vuitton SE(a) | | | | | 4,397,490 | |
| | | |
| | 662,400 | | | Natixis SA(a) | | | | | 4,766,870 | |
| | | |
| | 74,975 | | | Orpea(a) | | | | | 5,245,018 | |
| | | |
| | 216,600 | | | Veolia Environnement SA | | | | | 4,416,609 | |
| | | |
| | | | | | | | | 25,683,601 | |
| | | | | | | | | | |
| | Germany: 8.31% | |
| | | |
| | 39,800 | | | Bayer AG, Sponsored ADR(a) | | | | | 5,611,203 | |
| | | |
| | 113,000 | | | FinTech Group AG(d) | | | | | 1,952,661 | |
| | | |
| | 237,400 | | | MagForce AG(d) | | | | | 1,773,260 | |
| | | |
| | 496,300 | | | MLP AG | | | | | 2,080,410 | |
| | | |
| | 172,798 | | | RIB Software AG(a) | | | | | 2,786,595 | |
| | | |
| | 181,000 | | | TLG Immobilien AG | | | | | 2,926,935 | |
| | | |
| | 367,631 | | | TUI AG | | | | | 5,949,697 | |
| | | |
| | | | | | | | | 23,080,761 | |
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | |
| | | | | | | |
| | Hong Kong: 4.93% | |
| | | |
| | 1,490,550 | | | BOC Hong Kong Holdings, Ltd. | | | | $ | 6,210,985 | |
| | | |
| | 71,944,090 | | | CSI Properties, Ltd.(a) | | | | | 2,784,376 | |
| | | |
| | 3,362,000 | | | Guangdong Investment, Ltd. | | | | | 4,710,196 | |
| | | |
| | | | | | | | | 13,705,557 | |
| | | | | | | | | | |
| | India: 0.90% | |
| | | |
| | 60,200 | | | State Bank of India, GDR(b) | | | | | 2,489,270 | |
| | | | | | | | | | |
| | Indonesia: 2.60% | |
| | | |
| | 13,966,807 | | | Astra Graphia Tbk PT | | | | | 2,304,667 | |
| | | |
| | 3,355,650 | | | Bank Mandiri Persero Tbk PT | | | | | 2,529,479 | |
| | | |
| | 18,931,505 | | | Kalbe Farma Tbk PT | | | | | 2,378,419 | |
| | | |
| | | | | | | | | 7,212,565 | |
| | | | | | | | | | |
| | Italy: 1.58% | |
| | | |
| | 655,000 | | | Unicredit SpA | | | | | 4,399,619 | |
| | | | | | | | | | |
| | Japan: 9.11% | |
| | | |
| | 371,400 | | | Astellas Pharma, Inc.(a) | | | | | 5,297,044 | |
| | | |
| | 393,200 | | | Kuraray Co., Ltd.(a) | | | | | 4,809,580 | |
| | | |
| | 1,300 | | | NIPPON REIT Investment Corp. | | | | | 3,068,758 | |
| | | |
| | 327,700 | | | Santen Pharmaceutical Co., Ltd.(a) | | | | | 4,640,308 | |
| | | |
| | 426,700 | | | Yumeshin Holdings Co., Ltd.(a) | | | | | 2,719,500 | |
| | | |
| | 133,900 | | | Zenkoku Hosho Co., Ltd. | | | | | 4,770,225 | |
| | | |
| | | | | | | | | 25,305,415 | |
| | | | | | | | | | |
| | Macau: 0.35% | |
| | | |
| | 286,800 | | | Sands China, Ltd.(a) | | | | | 965,675 | |
| | | | | | | | | | |
| | Malaysia: 1.76% | |
| | | |
| | 1,875,000 | | | Globetronics Technology Bhd | | | | | 2,956,865 | |
| | | |
| | 2,666,520 | | | Silverlake Axis, Ltd. | | | | | 1,940,223 | |
| | | |
| | | | | | | | | 4,897,088 | |
| | | | | | | | | | |
| | Mexico: 0.73% | |
| | | |
| | 22,900 | | | Fomento Economico Mexicano SAB de CV, Sponsored ADR(a) | | | | | 2,040,161 | |
| | | | | | | | | | |
| | Netherlands: 0.87% | |
| | | |
| | 25,924 | | | Amsterdam Commodities NV | | | | | 655,917 | |
| | | |
| | 30,900 | | | Royal Dutch Shell Plc, Sponsored ADR, Class A(a) | | | | | 1,761,609 | |
| | | |
| | | | | | | | | 2,417,526 | |
| | | | |
| See Notes to Financial Statements | | 37 | | June 30, 2015 |
Portfolio of Investments (Note 9) (Unaudited)
Forward International Dividend Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
|
| | |
| | Norway: 2.25% | |
| | | |
| | 544,500 | | | Marine Harvest ASA(a) | | | | $ | 6,243,334 | |
| | | | | | | | | | |
| | Peru: 0.88% | |
| | | |
| | 17,590 | | | Credicorp, Ltd.(a) | | | | | 2,443,603 | |
| | | | | | | | | | |
| | Philippines: 3.98% | |
| | | |
| | 2,269,510 | | | 8990 Holdings, Inc. | | | | | 364,913 | |
| | | |
| | 11,282,676 | | | D&L Industries, Inc. | | | | | 4,859,383 | |
| | | |
| | 3,843,070 | | | First Gen Corp. | | | | | 2,301,239 | |
| | | |
| | 2,147,400 | | | Robinsons Retail Holdings, Inc. | | | | | 3,545,663 | |
| | | |
| | | | | | | | | 11,071,198 | |
| | | | | | | | | | |
| | Russia: 2.05% | |
| | | |
| | 334,783 | | | HMS Hydraulic Machines and Systems Group Plc, GDR(b)(e) | | | | | 214,261 | |
| | | |
| | 52,735 | | | LUKOIL OAO, Sponsored ADR(a) | | | | | 2,368,329 | |
| | | |
| | 103,000 | | | MMC Norilsk Nickel OJSC, ADR | | | | | 1,737,610 | |
| | | |
| | 140,000 | | | Mobile Telesystems OJSC, Sponsored ADR(a) | | | | | 1,369,200 | |
| | | |
| | | | | | | | | 5,689,400 | |
| | | | | | | | | | |
| | Singapore: 0.77% | |
| | | |
| | 1,740,100 | | | OSIM International, Ltd.(a) | | | | | 2,138,223 | |
| | | | | | | | | | |
| | Sri Lanka: 1.71% | |
| | | |
| | 1,951,598 | | | Commercial Bank of Ceylon Plc, Non-Voting Depository Receipt | | | | | 1,925,344 | |
| | | |
| | 1,542,944 | | | Hatton National Bank Plc, Non-Voting Depository Receipt | | | | | 1,994,987 | |
| | | |
| | 17,918,874 | | | Piramal Glass Ceylon Plc | | | | | 830,322 | |
| | | |
| | | | | | | | | 4,750,653 | |
| | | | | | | | | | |
| | Sweden: 4.88% | |
| | | |
| | 141,800 | | | Investor AB, Class B(a) | | | | | 5,283,813 | |
| | | |
| | 417,800 | | | Nordea Bank AB(a) | | | | | 5,211,255 | |
| | | |
| | 522,800 | | | TeliaSonera AB(a) | | | | | 3,078,206 | |
| | | |
| | | | | | | | | 13,573,274 | |
| | | | | | | | | | |
| | Switzerland: 10.45% | |
| | | |
| | 195,200 | | | Clariant AG | | | | | 4,000,248 | |
| | | |
| | 55,900 | | | Novartis AG, Sponsored ADR(a) | | | | | 5,497,206 | |
| | | |
| | 16,800 | | | Partners Group Holding AG | | | | | 5,022,301 | |
| | | |
| | 159,700 | | | Roche Holdings AG, Ltd., Sponsored ADR(a) | | | | | 5,600,679 | |
| | | |
| | 25,450 | | | Syngenta AG, ADR(a) | | | | | 2,076,974 | |
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
|
| | |
| | | | | | | | |
| | 323,000 | | | UBS Group AG | | | | $ | 6,850,730 | |
| | | |
| | | | | | | | | 29,048,138 | |
| | | | | | | | | | |
| | Taiwan: 3.25% | |
| | | |
| | 1,537,300 | | | Kinik Co. | | | | | 2,929,661 | |
| | | |
| | 135,200 | | | Taiwan Semiconductor Manufacturing Co., Ltd., Sponsored ADR(a) | | | | | 3,070,392 | |
| | | |
| | 1,760,600 | | | Wah Lee Industrial Corp. | | | | | 3,024,253 | |
| | | |
| | | | | | | | | 9,024,306 | |
| | | | | | | | | | |
| | Thailand: 3.21% | |
| | | |
| | 7,650,200 | | | BTS Group Holdings Pcl | | | | | 2,265,015 | |
| | | |
| | 25,617,826 | | | Jasmine International Pcl | | | | | 4,019,910 | |
| | | |
| | 7,859,270 | | | TTW Pcl | | | | | 2,629,413 | |
| | | |
| | | | | | | | | 8,914,338 | |
| | | | | | | | | | |
| | Turkey: 1.34% | |
| | | |
| | 1,774,298 | | | Anadolu Hayat Emeklilik AS | | | | | 3,720,590 | |
| | | | | | | | | | |
| | Ukraine: 0.38% | |
| | | |
| | 105,600 | | | MHP SA, GDR(b) | | | | | 1,066,560 | |
| | | | | | | | | | |
| | United Kingdom: 10.40% | |
| | | |
| | 751,000 | | | BT Group Plc(a) | | | | | 5,312,399 | |
| | | |
| | 283,200 | | | Dunelm Group Plc(a) | | | | | 4,029,276 | |
| | | |
| | 84,000 | | | HSBC Holdings Plc, Sponsored ADR | | | | | 3,764,040 | |
| | | |
| | 502,400 | | | Inchcape Plc(a) | | | | | 6,402,001 | |
| | | |
| | 480,000 | | | Infinis Energy Plc | | | | | 1,463,148 | |
| | | |
| | 882,168 | | | Stock Spirits Group Plc(a) | | | | | 2,675,185 | |
| | | |
| | 46,497 | | | WPP Plc, Sponsored ADR(a) | | | | | 5,241,142 | |
| | | |
| | | | | | | | | 28,887,191 | |
| | | | | | | | | | |
| | Vietnam: 1.69% | |
| | | |
| | 430,880 | | | Masan Group Corp.(d) | | | | | 1,598,154 | |
| | | |
| | 928,000 | | | PetroVietnam Gas JSC | | | | | 2,634,613 | |
| | | |
| | 89,000 | | | Vietnam Dairy Products JSC | | | | | 460,517 | |
| | | |
| | | | | | | | | 4,693,284 | |
| | | |
| | | | Total Common Stocks
(Cost $260,241,567) | | | | | 272,956,714 | |
| | | | |
| June 30, 2015 | | 38 | | See Notes to Financial Statements |
Portfolio of Investments (Note 9) (Unaudited)
Forward International Dividend Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
|
| | Loan Participation Notes: 6.11% | |
| | Bangladesh: 1.51% | |
| | | |
| | 346,800 | | | Grameenphone, Ltd., (Loan Participation Notes issued by Deutsche Bank AG, London), expiring 07/08/21 | | | | $ | 1,470,138 | |
| | | |
| | 3,017,300 | | | Titas Gas Transmission & Distribution Co., Ltd., (Loan Participation Notes issued by Deutsche Bank AG, London), expiring 01/27/21 | | | | | 2,715,666 | |
| | | |
| | | | | | | | | 4,185,804 | |
| | | | | | | | | | |
| | India: 2.78% | |
| | | |
| | 95,000 | | | Bajaj Auto, Ltd., (Loan Participation Notes issued by Macquarie Bank, Ltd.), expiring 11/07/16 | | | | | 3,792,168 | |
| | | |
| | 595,000 | | | Coal India, Ltd., (Loan Participation Notes issued by Macquarie Bank, Ltd.), expiring 01/09/17 | | | | | 3,935,988 | |
| | | |
| | | | | | | | | 7,728,156 | |
| | | | | | | | | | |
| | Pakistan: 0.94% | |
| | | |
| | 1,230,000 | | | Habib Bank, Ltd. (Loan Participation Notes issued by Macquarie Bank, Ltd.), expiring 07/20/16 | | | | | 2,600,192 | |
| | | | | | | | | | |
| | United Arab Emirates: 0.88% | |
| | | |
| | 593,077 | | | First Gulf Bank PJSC, (Loan Participation Notes issued by HSBC Bank Plc), expiring 12/11/17 | | | | | 2,454,401 | |
| | | |
| | | | Total Loan Participation Notes
(Cost $16,215,833) | | | | | 16,968,553 | |
|
| | Preferred Stocks: 3.14% | |
| | Germany: 2.18% | |
| | | |
| | 156,023 | | | Sixt SE | | | | | 6,052,325 | |
| | | | | | | | | | |
| | United States: 0.96% | |
| | | |
| | 104,800 | | | Winthrop Realty Trust, Sr. Unsec. Notes,
7.750% | | | | | 2,665,064 | |
| | | |
| | | | Total Preferred Stocks
(Cost $7,441,183) | | | | | 8,717,389 | |
|
| | Warrants: 0.13% | |
| | Thailand: 0.13% | |
| | | |
| | 12,557,756 | | | Jasmine International Pcl, Warrants,
Strike Price 4.30 THB (expiring 07/05/20)(d) | | | | | 371,801 | |
| | | |
| | | | Total Warrants
(Cost $0) | | | | | 371,801 | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value
(Note 2) | |
|
| | Collateralized Mortgage Obligations: 0.95% | |
| | United States: 0.95% | |
| | | |
| | $7,033,135 | | | FHLMC, REMICS
2.500%, 04/15/28(f) | | | | $ | 644,846 | |
| | | |
| | 2,190,984 | | | 3.000%, 06/15/26(f) | | | | | 201,190 | |
| | | |
| | 1,888,076 | | | 3.000%, 06/15/27(f) | | | | | 202,778 | |
| | | |
| | 1,137,615 | | | 3.000%, 09/15/31(f) | | | | | 147,625 | |
| | | |
| | 1,127,970 | | | 3.500%, 04/15/30(f) | | | | | 81,007 | |
| | | |
| | 155,756 | | | 4.000%, 07/15/23(f) | | | | | 1,602 | |
| | | |
| | 811,737 | | | 4.000%, 12/15/23(f) | | | | | 36,330 | |
| | | |
| | 258,215 | | | 5.000%, 02/15/24(f) | | | | | 17,874 | |
| | | |
| | 439,221 | | | 7.015%, 09/15/26(f)(g) | | | | | 72,599 | |
| | | |
| | 2,145,666 | | | FHLMC, STRIP
6.500%, 02/01/28(f) | | | | | 362,076 | |
| | | |
| | 294,798 | | | FNMA, REMICS
3.000%, 09/25/27(f) | | | | | 35,015 | |
| | | |
| | 396,912 | | | 4.500%, 12/25/20(f) | | | | | 21,922 | |
| | | |
| | 2,067,419 | | | 6.293%, 04/25/42(f)(g) | | | | | 443,568 | |
| | | |
| | 372,634 | | | 6.493%, 07/25/41(f)(g) | | | | | 63,230 | |
| | | |
| | 554,342 | | | 7.613%, 04/25/32(f)(g) | | | | | 134,463 | |
| | | |
| | 835,314 | | | GNMA, REMICS
6.417%, 09/16/33(f)(g) | | | | | 165,635 | |
| | | |
| | | | | | | | | 2,631,760 | |
| | | |
| | | | Total Collateralized Mortgage Obligations
(Cost $4,010,284) | | | | | 2,631,760 | |
|
| | Corporate Bonds: 3.19% | |
| | Canada: 0.30% | |
| | | |
| | 1,000,000 | | | Royal Bank of Canada, Sr. Unsec. Medium-Term Notes
9.000%, 08/28/34(g) | | | | | 841,951 | |
| | | | | | | | | | |
| | United States: 2.89% | | | | | | |
| | | |
| | 1,500,000 | | | Arch Coal, Inc., Sr. Unsec. Notes 7.250%, 10/01/20 | | | | | 427,500 | |
| | | |
| | 1,000,000 | | | Citigroup, Inc., Sr. Unsec. Medium-Term Notes 10.000%, 09/29/34(g) | | | | | 850,000 | |
| | | |
| | 750,000 | | | Claire’s Stores, Inc., Second Lien Notes 8.875%, 03/15/19 | | | | | 341,250 | |
| | | |
| | 1,000,000 | | | Hecla Mining Co., Sr. Unsec. Notes 6.875%, 05/01/21 | | | | | 951,250 | |
| | | | |
| See Notes to Financial Statements | | 39 | | June 30, 2015 |
Portfolio of Investments (Note 9) (Unaudited)
Forward International Dividend Fund
| | | | | | | | | | |
Principal
Amount | | | | | | | Value
(Note 2) | |
|
| | |
| | United States (continued): 2.89% | | | | | | |
| | | |
| | $ 1,000,000 | | | JC Penney Corp., Inc., Sr. Unsec. Notes 7.400%, 04/01/37 | | | | $ | 817,500 | |
| | | |
| | 750,000 | | | 8.125%, 10/01/19 | | | | | 746,250 | |
| | | |
| | 978,000 | | | JPMorgan Chase Bank NA, Sr. Unsec. Notes, Series CD 10.000%, 09/29/34(g) | | | | | 816,630 | |
| | | |
| | 984,000 | | | Morgan Stanley, Unsec. Medium-Term Notes 11.000%, 08/29/34(g) | | | | | 897,900 | |
| | | |
| | 2,020,000 | | | NRG REMA Llc, Series C, Sec. Notes 9.681%, 07/02/26 | | | | | 2,176,550 | |
| | | |
| | | | | | | | | 8,024,830 | |
| | | |
| | | | Total Corporate Bonds
(Cost $10,144,092) | | | | | 8,866,781 | |
| | | |
| | | | Total Investments: 111.76% (Cost $298,052,959) | | | | | 310,512,998 | |
| | |
| | | | Net Other Assets and Liabilities: (11.76)% | | | (32,664,427 | )(h) |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 277,848,571 | |
Percentages are stated as a percent of net assets.
(a) Security, or portion of security, is being held as collateral for the line(s) of credit. At period end, the aggregate market value of those securities was $74,835,982, representing 26.93% 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 by the issuer 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, unless otherwise noted below. At period end, the aggregate market value of those securities was $5,420,775, representing 1.95% of net assets.
(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 $1,650,684, representing 0.59% of net assets.
(d) Non-income producing security.
(e) Security determined to be illiquid under the procedures approved by the Fund’s Board of Trustees.
(f) Interest only security.
(g) Interest rate will change at a future date. Interest rate shown reflects the rate in effect at June 30, 2015.
(h) Includes cash which is being held as collateral for futures contracts.
Futures Contracts
| | | | | | | | | | | | | | | | | | |
| Description | | Position | | Contracts | | | Expiration
Date | | | Value | | | Unrealized
Loss | |
E-Mini MSCI EAFE® Futures | | Long | | | 46 | | | | 09/21/15 | | | $ | 4,218,200 | | | $ | (146,632) | |
| Total Futures Contracts | | | | | | | | | | $ | 4,218,200 | | | $ | (146,632) | |
Securities determined to be illiquid under the procedures approved by the Fund’s Board of Trustees are as follows:
| | | | | | | | | | | | | | |
| Date(s) of Purchase | | Security | | Cost | | | Value | | | % of Net
Assets | |
| 10/17/12 – 03/08/15 | | Eastern Tobacco(e) | | $ | 1,322,218 | | | $ | 2,313,203 | | | | 0.83% | |
| 05/03/13 – 10/09/13 | | HMS Hydraulic Machines and Systems Group Plc, GDR (b)(e) | | | 1,131,928 | | | | 214,261 | | | | 0.08% | |
| | | | $ | 2,454,146 | | | $ | 2,527,464 | | | | 0.91% | |
Investment Abbreviations:
ADR — American Depositary Receipt
EAFE — Europe, Australasia, Far East
FHLMC — Federal Home Loan Mortgage Corporation
FNMA — Federal National Mortgage Association
| | | | |
| June 30, 2015 | | 40 | | See Notes to Financial Statements |
Portfolio of Investments (Note 9) (Unaudited)
Forward International Dividend Fund
GDR — Global Depositary Receipt
GNMA — Government National Mortgage Association
MSCI — Morgan Stanley Capital International
REIT — Real Estate Investment Trust
REMICS — Real Estate Mortgage Investment Conduits
Sec. — Secured
Sr. — Senior
STRIP — Separate Trading of Registered Interest and Principal of Securities
Unsec. — Unsecured
Currency Abbreviations:
THB — Thai Baht
| | | | |
| See Notes to Financial Statements | | 41 | | June 30, 2015 |
Portfolio of Investments (Note 9) (Unaudited)
Forward International Small Companies Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | |
| | Common Stocks: 93.97% | | | | | | |
| | Australia: 4.71% | | | | | | |
| | | |
| | 249,713 | | | carsales.com, Ltd. | | | | $ | 1,963,268 | |
| | | |
| | 226,970 | | | Estia Health, Ltd.(a) | | | | | 1,050,712 | |
| | | |
| | 592,644 | | | Healthscope, Ltd. | | | | | 1,243,732 | |
| | | |
| | 510,435 | | | OzForex Group, Ltd. | | | | | 874,294 | |
| | | |
| | 147,296 | | | Pact Group Holdings, Ltd. | | | | | 531,865 | |
| | | |
| | 162,116 | | | Super Retail Group, Ltd. | | | | | 1,143,237 | |
| | | |
| | 421,632 | | | Virtus Health, Ltd. | | | | | 1,746,916 | |
| | | |
| | | | | | | | | 8,554,024 | |
| | | | | | | | | | |
| | Austria: 1.65% | | | | | | |
| | | |
| | 40,018 | | | ams AG | | | | | 1,750,613 | |
| | | |
| | 39,198 | | | Porr AG | | | | | 1,248,507 | |
| | | |
| | | | | | | | | 2,999,120 | |
| | | | | | | | | | |
| | Belgium: 2.08% | | | | | | |
| | | |
| | 65,053 | | | bpost SA | | | | | 1,787,001 | |
| | | |
| | 16,039 | | | Cie d’Entreprises CFE | | | | | 1,992,848 | |
| | | |
| | | | | | | | | 3,779,849 | |
| | | | | | | | | | |
| | Denmark: 1.70% | | | | | | |
| | | |
| | 36,877 | | | FLSmidth & Co., A/S | | | | | 1,774,443 | |
| | | |
| | 32,839 | | | SimCorp A/S | | | | | 1,307,789 | |
| | | |
| | | | | | | | | 3,082,232 | |
| | | | | | | | | | |
| | Finland: 1.02% | | | | | | |
| | | |
| | 165,542 | | | Valmet Oyj | | | | | 1,860,311 | |
| | | | | | | | | | |
| | France: 6.45% | | | | | | |
| | | |
| | 166,569 | | | Altran Technologies SA | | | | | 1,789,030 | |
| | | |
| | 59,816 | | | Belvedere SA(a) | | | | | 1,325,049 | |
| | | |
| | 26,000 | | | Groupe FNAC(a) | | | | | 1,558,873 | |
| | | |
| | 16,787 | | | Montupet | | | | | 1,206,182 | |
| | | |
| | 213,994 | | | Technicolor SA | | | | | 1,395,643 | |
| | | |
| | 31,983 | | | Teleperformance | | | | | 2,259,538 | |
| | | |
| | 122,661 | | | UBISOFT Entertainment(a) | | | | | 2,185,244 | |
| | | |
| | | | | | | | | 11,719,559 | |
| | | | | | | | | | |
| | Germany: 8.22% | | | | | | |
| | | |
| | 42,973 | | | Aareal Bank AG | | | | | 1,687,337 | |
| | | |
| | 63,385 | | | Dialog Semiconductor Plc(a) | | | | | 3,426,537 | |
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | |
| | | | | | | | |
| | 24,819 | | | Gerresheimer AG | | | | $ | 1,547,001 | |
| | | |
| | 36,183 | | | LANXESS AG | | | | | 2,133,511 | |
| | | |
| | 11,990 | | | MorphoSys AG(a) | | | | | 860,571 | |
| | | |
| | 14,769 | | | MTU Aero Engines AG | | | | | 1,389,172 | |
| | | |
| | 17,117 | | | Pfeiffer Vacuum Technology AG | | | | | 1,525,105 | |
| | | |
| | 46,988 | | | Rhoen-Klinikum AG | | | | | 1,260,636 | |
| | | |
| | 18,533 | | | Vossloh AG(a) | | | | | 1,106,425 | |
| | | |
| | | | | | | | | 14,936,295 | |
| | | | | | | | | | |
| | Hong Kong: 2.93% | | | | | | |
| | | |
| | 982,000 | | | Pacific Textiles Holdings, Ltd. | | | | | 1,568,352 | |
| | | |
| | 399,900 | | | Samsonite International SA | | | | | 1,382,604 | |
| | | |
| | 725,500 | | | Techtronic Industries Co., Ltd. | | | | | 2,377,292 | |
| | | |
| | | | | | | | | 5,328,248 | |
| | | | | | | | | | |
| | Ireland: 0.87% | | | | | | |
| | | |
| | 57,397 | | | Smurfit Kappa Group Plc | | | | | 1,581,170 | |
| | | | | | | | | | |
| | Italy: 3.27% | | | | | | |
| | | |
| | 198,039 | | | Anima Holding SpA(b)(c) | | | | | 1,739,777 | |
| | | |
| | 1,951,709 | | | Banca Popolare di Milano Scarl | | | | | 2,058,368 | |
| | | |
| | 154,108 | | | Credito Emiliano SpA | | | | | 1,269,657 | |
| | | |
| | 172,519 | | | Unipol Gruppo Finanziario SpA | | | | | 877,038 | |
| | | |
| | | | | | | | | 5,944,840 | |
| | | | | | | | | | |
| | Japan: 32.14% | | | | | | |
| | | |
| | 409,000 | | | 77 Bank, Ltd. | | | | | 2,496,409 | |
| | | |
| | 49,300 | | | Aeon Delight Co., Ltd. | | | | | 1,510,602 | |
| | | |
| | 56,600 | | | Ain Pharmaciez, Inc. | | | | | 2,626,858 | |
| | | |
| | 44,300 | | | ALPS Electric Co., Ltd. | | | | | 1,366,446 | |
| | | |
| | 21,800 | | | CyberAgent, Inc. | | | | | 1,034,914 | |
| | | |
| | 59,559 | | | Daiseki Co., Ltd. | | | | | 1,152,880 | |
| | | |
| | 62,800 | | | Dena Co., Ltd. | | | | | 1,234,602 | |
| | | |
| | 23,000 | | | Don Quijote Holdings Co., Ltd. | | | | | 979,123 | |
| | | |
| | 224,000 | | | Dowa Holdings Co., Ltd. | | | | | 2,115,815 | |
| | | |
| | 87,000 | | | Fuji Media Holdings, Inc. | | | | | 1,155,166 | |
| | | |
| | 76,100 | | | Glory, Ltd. | | | | | 2,254,055 | |
| | | |
| | 72,000 | | | Goldcrest Co., Ltd. | | | | | 1,421,939 | |
| | | |
| | 103,500 | | | Hitachi Capital Corp. | | | | | 2,740,042 | |
| | | | |
| June 30, 2015 | | 42 | | See Notes to Financial Statements |
Portfolio of Investments (Note 9) (Unaudited)
Forward International Small Companies Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
|
| | |
| | Japan (continued): 32.14% | | | | | | |
| | | |
| | 26,707 | | | Hoshizaki Electric Co., Ltd. | | | | $ | 1,571,193 | |
| | | |
| | 31,800 | | | Itochu Techno-Solutions Corp. | | | | | 792,499 | |
| | | |
| | 2,094 | | | Japan Hotel REIT Investment Corp. | | | | | 1,394,460 | |
| | | |
| | 23,600 | | | Japan Petroleum Exploration Co., Ltd. | | | | | 751,089 | |
| | | |
| | 71,388 | | | JSR Corp. | | | | | 1,262,276 | |
| | | |
| | 130,900 | | | JTEKT Corp. | | | | | 2,479,276 | |
| | | |
| | 133,000 | | | Kamigumi Co., Ltd. | | | | | 1,249,745 | |
| | | |
| | 62,100 | | | Kanamoto Co., Ltd. | | | | | 1,575,524 | |
| | | |
| | 505 | | | Kenedix Retail REIT Corp.(a) | | | | | 1,198,697 | |
| | | |
| | 110,000 | | | Kinden Corp. | | | | | 1,455,162 | |
| | | |
| | 26,200 | | | Miraca Holdings, Inc. | | | | | 1,310,161 | |
| | | |
| | 70,300 | | | Musashi Seimitsu Industry Co., Ltd. | | | | | 1,363,665 | |
| | | |
| | 52,200 | | | Nabtesco Corp. | | | | | 1,309,425 | |
| | | |
| | 537 | | | Nippon Prologis REIT, Inc. | | | | | 989,008 | |
| | | |
| | 45,900 | | | OTSUKA Corp. | | | | | 2,145,263 | |
| | | |
| | 23,400 | | | Pola Orbis Holdings, Inc. | | | | | 1,325,015 | |
| | | |
| | 316,300 | | | Sapporo Holdings, Ltd. | | | | | 1,175,932 | |
| | | |
| | 93,500 | | | SBI Holdings, Inc. | | | | | 1,288,075 | |
| | | |
| | 151,700 | | | SBS Holdings, Inc. | | | | | 1,230,854 | |
| | | |
| | 42,700 | | | Sundrug Co., Ltd. | | | | | 2,543,473 | |
| | | |
| | 207,300 | | | Takara Leben Co., Ltd. | | | | | 1,234,806 | |
| | | |
| | 68,000 | | | Temp Holdings Co., Ltd. | | | | | 2,455,857 | |
| | | |
| | 256,700 | | | Tokyo Steel Manufacturing Co., Ltd. | | | | | 1,885,634 | |
| | | |
| | 145,200 | | | Tokyo Tatemono Co., Ltd. | | | | | 2,016,914 | |
| | | |
| | 26,300 | | | Toshiba Plant Systems & Services Corp. | | | | | 320,409 | |
| | | |
| | | | | | | | | 58,413,263 | |
| | | | | | | | | | |
| | Netherlands: 1.25% | | | | | | |
| | | |
| | 54,198 | | | TKH Group NV | | | | | 2,270,382 | |
| | | | | | | | | | |
| | New Zealand: 1.01% | | | | | | |
| | | |
| | 468,826 | | | Spark New Zealand, Ltd. | | | | | 887,971 | |
| | | |
| | 411,387 | | | Trade Me Group, Ltd. | | | | | 945,052 | |
| | | |
| | | | | | | | | 1,833,023 | |
| | | | | | | | | | |
| | Portugal: 1.16% | | | | | | |
| | | |
| | 263,763 | | | NOS SGPS SA | | | | | 2,109,561 | |
| | | | | | | | | | |
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
|
| | |
| | Singapore: 1.97% | | | | | | |
| | | |
| | 979,300 | | | ComfortDelGro Corp., Ltd. | | | | $ | 2,275,836 | |
| | | |
| | 1,665,900 | | | Keppel DC REIT(a) | | | | | 1,298,730 | |
| | | |
| | | | | | | | | 3,574,566 | |
| | | | | | | | | | |
| | Spain: 1.91% | | | | | | |
| | | |
| | 466,745 | | | Ence Energia y Celulosa SA | | | | | 1,594,876 | |
| | | |
| | 119,289 | | | Gamesa Corporation Tecnologica SA(a) | | | | | 1,879,141 | |
| | | |
| | | | | | | | | 3,474,017 | |
| | | | | | | | | | |
| | Sweden: 0.78% | | | | | | |
| | | |
| | 78,081 | | | Boliden AB | | | | | 1,423,191 | |
| | | | | | | | | | |
| | Switzerland: 2.16% | | | | | | |
| | | |
| | 30,615 | | | BKW AG | | | | | 1,142,803 | |
| | | |
| | 6,051 | | | Kuoni Reisen Holding AG, Class B | | | | | 1,575,933 | |
| | | |
| | 5,941 | | | U-Blox AG | | | | | 1,202,243 | |
| | | |
| | | | | | | | | 3,920,979 | |
| | | | | | | | | | |
| | United Kingdom: 18.69% | | | | | | |
| | | |
| | 300,643 | | | Arrow Global Group Plc | | | | | 1,249,459 | |
| | | |
| | 33,218 | | | Aveva Group Plc | | | | | 943,664 | |
| | | |
| | 408,974 | | | BBA Aviation Plc | | | | | 1,938,725 | |
| | | |
| | 611,561 | | | Card Factory Plc | | | | | 3,103,756 | |
| | | |
| | 107,001 | | | Daily Mail & General Trust Plc NV, Class A | | | | | 1,561,884 | |
| | | |
| | 42,946 | | | Derwent London REIT Plc | | | | | 2,295,632 | |
| | | |
| | 92,579 | | | EMIS Group Plc | | | | | 1,341,185 | |
| | | |
| | 299,287 | | | Halfords Group Plc | | | | | 2,482,945 | |
| | | |
| | 273,418 | | | Henderson Group Plc | | | | | 1,121,277 | |
| | | |
| | 93,712 | | | Hunting Plc | | | | | 898,194 | |
| | | |
| | 171,467 | | | IG Group Holdings Plc | | | | | 2,011,202 | |
| | | |
| | 238,627 | | | Informa Plc | | | | | 2,049,062 | |
| | | |
| | 482,203 | | | Melrose Industries Plc | | | | | 1,875,212 | |
| | | |
| | 271,941 | | | Mitchells & Butlers Plc(a) | | | | | 1,950,566 | |
| | | |
| | 619,959 | | | Moneysupermarket.com Group Plc | | | | | 2,836,610 | |
| | | |
| | 289,623 | | | Pets at Home Group Plc | | | | | 1,359,294 | |
| | | |
| | 526,187 | | | Polypipe Group Plc | | | | | 2,244,684 | |
| | | |
| | 280,251 | | | RPS Group Plc | | | | | 991,876 | |
| | | |
| | 32,259 | | | Spirax-Sarco Engineering Plc | | | | | 1,719,808 | |
| | | |
| | | | | | | | | 33,975,035 | |
| | | |
| | | | Total Common Stocks
(Cost $137,325,102) | | | | | 170,779,665 | |
| | | | |
| See Notes to Financial Statements | | 43 | | June 30, 2015 |
Portfolio of Investments (Note 9) (Unaudited)
Forward International Small Companies Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | |
| | Exchange-Traded Funds: 2.07% | | | | | | |
| | United States: 2.07% | | | | | | |
| | | |
| | 73,700 | | | iShares® MSCI EAFE Small-Cap ETF | | | | $ | 3,760,174 | |
| | | |
| | | | Total Exchange-Traded Funds
(Cost $3,751,213) | | | | | 3,760,174 | |
|
| | Preferred Stocks: 0.99% | |
| | Germany: 0.99% | | | | | | |
| | | |
| | 16,701 | | | Draegerwerk AG & Co. KGaA | | | | | 1,789,484 | |
| | |
| | | | Total Preferred Stocks
(Cost $1,618,348) | | | 1,789,484 | |
| | | |
| | | | Total Investments: 97.03%
(Cost $142,694,663) | | | | | 176,329,323 | |
| | |
| | | | Net Other Assets and Liabilities: 2.97% | | | 5,404,564 | |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 181,733,887 | |
Percentages are stated as a percent of net assets.
(a) Non-income producing security.
(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 by the issuer 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 $1,739,777, representing 0.96% of net assets.
(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 $1,739,777, representing 0.96% of net assets.
Investment Abbreviations:
EAFE — Europe, Australasia, Far East
ETF — Exchange-Traded Fund
MSCI — Morgan Stanley Capital International
REIT — Real Estate Investment Trust
| | | | |
| June 30, 2015 | | 44 | | See Notes to Financial Statements |
Portfolio of Investments (Note 9) (Unaudited)
Forward Select EM Dividend Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
|
| | Common Stocks: 91.04% | |
| | Bangladesh: 0.08% | |
| | | |
| | 171,704 | | | Beximco Pharmaceuticals, Ltd., GDR(a)(b) | | | | $ | 49,237 | |
| | | | | | | | | | |
| | Brazil: 6.92% | |
| | | |
| | 169,785 | | | AMBEV SA, ADR(b) | | | | | 1,035,688 | |
| | | |
| | 323,300 | | | BM&F Bovespa SA — Bolsa de Valores Mercadorias e Futuros | | | | | 1,219,745 | |
| | | |
| | 182,000 | | | Hypermarcas SA(c) | | | | | 1,327,053 | |
| | | |
| | 90,270 | | | Transmissora Alianca de Energia Electria SA | | | | | 598,103 | |
| | | |
| | | | | | | | | 4,180,589 | |
| | | | | | | | | | |
| | Cambodia: 1.89% | |
| | | |
| | 1,545,200 | | | NagaCorp, Ltd.(b) | | | | | 1,138,236 | |
| | | | | | | | | | |
| | Chile: 1.50% | |
| | | |
| | 433,065 | | | Quinenco SA | | | | | 904,371 | |
| | | | | | | | | | |
| | China: 11.41% | |
| | | |
| | 1,924,000 | | | Century Sage Scientific Holdings, Ltd.(a) | | | | | 555,987 | |
| | | |
| | 771,500 | | | China Galaxy Securities Co., Ltd., Class H(b) | | | | | 1,005,238 | |
| | | |
| | 1,192,475 | | | China Machinery Engineering Corp., Class H(b) | | | | | 1,286,077 | |
| | | |
| | 1,054,000 | | | China Petroleum & Chemical Corp., Class H | | | | | 909,658 | |
| | | |
| | 631,050 | | | China South City Holdings, Ltd. | | | | | 218,177 | |
| | | |
| | 49,018 | | | China Yuchai International, Ltd. | | | | | 821,051 | |
| | | |
| | 651,000 | | | Cosmo Lady China Holdings Co., Ltd.(a)(d) | | | | | 641,632 | |
| | | |
| | 950,000 | | | Qinhuangdao Port Co., Ltd., Class H | | | | | 507,382 | |
| | | |
| | 212,900 | | | Sinopharm Group Co., Ltd., Class H | | | | | 946,186 | |
| | | |
| | | | | | | | | 6,891,388 | |
| | | | | | | | | | |
| | Czech Republic: 1.50% | |
| | | |
| | 26,813 | | | Pegas Nonwovens SA | | | | | 905,334 | |
| | | | | | | | | | |
| | Egypt: 0.75% | |
| | | |
| | 43,404 | | | Arabian Cement Co.(e) | | | | | 83,963 | |
| | | |
| | 13,012 | | | Eastern Tobacco(e) | | | | | 366,619 | |
| | | |
| | | | | | | | | 450,582 | |
| | | | | | | | | | |
| | Georgia: 1.47% | |
| | | |
| | 28,951 | | | Bank of Georgia Holdings Plc(b) | | | | | 887,041 | |
| | | | | | | | | | |
| | Hong Kong: 2.46% | |
| | | |
| | 415,850 | | | China Gas Holdings, Ltd.(b) | | | | | 666,300 | |
| | | |
| | 584,550 | | | Guangdong Investment, Ltd. | | | | | 818,960 | |
| | | |
| | | | | | | | | 1,485,260 | |
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | |
| | | | | | | | |
| | India: 1.49% | | | | | | |
| | | |
| | 21,800 | | | State Bank of India, GDR(a) | | | | $ | 901,430 | |
| | | | | | | | | | |
| | Indonesia: 4.96% | | | | | | |
| | | |
| | 1,970,500 | | | AKR Corporindo Tbk PT | | | | | 875,696 | |
| | | |
| | 11,065,300 | | | Arwana Citramulia Tbk PT | | | | | 439,873 | |
| | | |
| | 4,006,070 | | | Astra Graphia Tbk PT | | | | | 661,043 | |
| | | |
| | 676,900 | | | Bank Mandiri Persero Tbk PT | | | | | 510,245 | |
| | | |
| | 4,059,900 | | | Kalbe Farma Tbk PT | | | | | 510,057 | |
| | | |
| | | | | | | | | 2,996,914 | |
| | | | | | | | | | |
| | Japan: 1.17% | | | | | | |
| | | |
| | 300 | | | NIPPON REIT Investment Corp. | | | | | 708,175 | |
| | | | | | | | | | |
| | Malaysia: 5.80% | | | | | | |
| | | |
| | 1,620,000 | | | Globetronics Technology Bhd(b) | | | | | 2,554,731 | |
| | | |
| | 930,368 | | | Oldtown Bhd | | | | | 394,537 | |
| | | |
| | 763,080 | | | Silverlake Axis, Ltd. | | | | | 555,235 | |
| | | |
| | | | | | | | | 3,504,503 | |
| | | | | | | | | | |
| | Mexico: 4.79% | | | | | | |
| | | |
| | 676,500 | | | Bolsa Mexicana de Valores SAB de CV | | | | | 1,170,721 | |
| | | |
| | 6,304 | | | Fomento Economico Mexicano SAB de CV, Sponsored ADR | | | | | 561,623 | |
| | | |
| | 593,075 | | | PLA Administradora Industrial S de RL de CV, REIT | | | | | 1,160,303 | |
| | | |
| | | | | | | | | 2,892,647 | |
| | | | | | | | | | |
| | Peru: 2.86% | | | | | | |
| | | |
| | 8,779 | | | Credicorp, Ltd.(b) | | | | | 1,219,579 | |
| | | |
| | 354,507 | | | Grana y Montero SAA | | | | | 507,314 | |
| | | |
| | | | | | | | | 1,726,893 | |
| | | | | | | | | | |
| | Philippines: 5.39% | | | | | | |
| | | |
| | 3,528,800 | | | 8990 Holdings, Inc. | | | | | 567,394 | |
| | | |
| | 3,701,156 | | | D&L Industries, Inc. | | | | | 1,594,066 | |
| | | |
| | 343,050 | | | First Gen Corp. | | | | | 205,419 | |
| | | |
| | 539,160 | | | Robinsons Retail Holdings, Inc. | | | | | 890,230 | |
| | | |
| | | | | | | | | 3,257,109 | |
| | | | | | | | | | |
| | Poland: 0.47% | | | | | | |
| | | |
| | 25,339 | | | Prime Car Management SA | | | | | 283,716 | |
| | | | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 45 | | June 30, 2015 |
Portfolio of Investments (Note 9) (Unaudited)
Forward Select EM Dividend Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
|
| | |
| | Russia: 4.26% | | | | | | |
| | | |
| | 609,213 | | | HMS Hydraulic Machines and Systems Group Plc, GDR(a)(e) | | | | $ | 389,896 | |
| | | |
| | 13,088 | | | Lukoil OAO, Sponsored ADR(b) | | | | | 587,782 | |
| | | |
| | 56,700 | | | MMC Norilsk Nickel OJSC, ADR(b) | | | | | 956,529 | |
| | | |
| | 65,421 | | | Mobile Telesystems OJSC, Sponsored ADR(b) | | | | | 639,818 | |
| | | |
| | | | | | | | | 2,574,025 | |
| | | | | | | | | | |
| | Singapore: 0.94% | | | | | | |
| | | |
| | 462,600 | | | OSIM International, Ltd.(b) | | | | | 568,440 | |
| | | | | | | | | | |
| | South Africa: 1.87% | | | | | | |
| | | |
| | 60,050 | | | MTN Group, Ltd. | | | | | 1,129,084 | |
| | | | | | | | | | |
| | South Korea: 2.46% | | | | | | |
| | | |
| | 50,000 | | | Mirae Asset Life Insurance Co., Ltd.(c) | | | | | 336,187 | |
| | | |
| | 43,378 | | | Samjin Pharmaceutical Co., Ltd. | | | | | 1,147,206 | |
| | | |
| | | | | | | | | 1,483,393 | |
| | | | | | | | | | |
| | Sri Lanka: 4.56% | | | | | | |
| | | |
| | 1,029,609 | | | Commercial Bank of Ceylon Plc, Non-Voting Depository Receipt | | | | | 1,015,757 | |
| | | |
| | 439,625 | | | Hatton National Bank Plc, Non-Voting Depository Receipt | | | | | 568,424 | |
| | | |
| | 4,925,624 | | | Piramal Glass Ceylon Plc | | | | | 228,243 | |
| | | |
| | 4,502,486 | | | Textured Jersey Lanka Plc | | | | | 942,224 | |
| | | |
| | | | | | | | | 2,754,648 | |
| | | | | | | | | | |
| | Taiwan: 10.15% | | | | | | |
| | | |
| | 123,800 | | | FineTek Co., Ltd. | | | | | 503,554 | |
| | | |
| | 1,045,250 | | | Formosan Rubber Group, Inc.(b) | | | | | 984,120 | |
| | | |
| | 589,225 | | | Kinik Co.(b) | | | | | 1,122,897 | |
| | | |
| | 1,207,175 | | | Mega Financial Holding Co., Ltd.(b) | | | | | 1,087,668 | |
| | | |
| | 40,094 | | | Taiwan Semiconductor Manufacturing Co., Ltd., Sponsored ADR(b) | | | | | 910,535 | |
| | | |
| | 884,700 | | | Wah Lee Industrial Corp.(b) | | | | | 1,519,684 | |
| | | |
| | | | | | | | | 6,128,458 | |
| | | | | | | | | | |
| | Thailand: 5.23% | | | | | | |
| | | |
| | 516,719 | | | Bangkok Aviation Fuel Services Pcl | | | | | 393,940 | |
| | | |
| | 1,702,100 | | | BTS Group Holdings Pcl | | | | | 503,945 | |
| | | |
| | 4,944,976 | | | Jasmine International Pcl | | | | | 775,958 | |
| | | |
| | 1,927,000 | | | RS Pcl | | | | | 775,923 | |
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
|
| | |
| | | | | | | | |
| | 2,119,673 | | | TTW Pcl | | | | $ | 709,162 | |
| | | |
| | | | | | | | | 3,158,928 | |
| | | | | | | | | | |
| | Turkey: 2.04% | | | | | | |
| | | |
| | 585,874 | | | Anadolu Hayat Emeklilik AS | | | | | 1,228,541 | |
| | | | | | | | | | |
| | Ukraine: 0.49% | | | | | | |
| | | |
| | 28,959 | | | MHP SA, GDR(a) | | | | | 292,486 | |
| | | | | | | | | | |
| | United Kingdom: 1.45% | | | | | | |
| | | |
| | 288,782 | | | Stock Spirits Group Plc(b) | | | | | 875,735 | |
| | | | | | | | | | |
| | Vietnam: 2.68% | | | | | | |
| | | |
| | 341,540 | | | Ho Chi Minh City Infrastructure Investment JSC | | | | | 370,653 | |
| | | |
| | 131,500 | | | Masan Group Corp.(c) | | | | | 487,740 | |
| | | |
| | 211,000 | | | PetroVietnam Gas JSC | | | | | 599,034 | |
| | | |
| | 30,660 | | | Vietnam Dairy Products JSC | | | | | 158,645 | |
| | | |
| | | | | | | | | 1,616,072 | |
| | | |
| | | | Total Common Stocks
(Cost $54,739,550) | | | | | 54,973,235 | |
|
| | Loan Participation Notes: 9.12% | |
| | Bangladesh: 2.38% | |
| | | |
| | 108,200 | | | Grameenphone, Ltd., (Loan Participation Notes issued by Deutsche Bank AG, London), expiring 07/08/21 | | | | | 458,676 | |
| | | |
| | 1,087,500 | | | Titas Gas Transmission & Distribution Co., Ltd., (Loan Participation Notes issued by Deutsche Bank AG, London), expiring 01/27/21 | | | | | 978,785 | |
| | | |
| | | | | | | | | 1,437,461 | |
| | | | | | | | | | |
| | India: 5.02% | |
| | | |
| | 34,500 | | | Bajaj Auto, Ltd., (Loan Participation Notes issued by Macquarie Bank, Ltd.), expiring 11/07/16 | | | | | 1,377,155 | |
| | | |
| | 250,000 | | | Coal India, Ltd., (Loan Participation Notes issued by Macquarie Bank, Ltd.), expiring 01/09/17 | | | | | 1,653,777 | |
| | | |
| | | | | | | | | 3,030,932 | |
| | | | | | | | | | |
| | Pakistan: 0.45% | |
| | | |
| | 130,000 | | | Habib Bank, Ltd. (Loan Participation Notes issued by Macquarie Bank, Ltd.), expiring 07/20/16 | | | | | 274,817 | |
| | | | | | | | | | |
| | | | |
| June 30, 2015 | | 46 | | See Notes to Financial Statements |
Portfolio of Investments (Note 9) (Unaudited)
Forward Select EM Dividend Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
|
| | | |
| | United Arab Emirates: 1.27% | |
| | | |
| | 184,615 | | | First Gulf Bank PJSC, (Loan Participation Notes issued by HSBC Bank Plc), expiring 12/11/17 | | | | $ | 764,016 | |
| | | |
| | | | Total Loan Participation Notes
(Cost $5,366,524) | | | | | 5,507,226 | |
|
| | Preferred Stocks: 0.89% | |
| | United States: 0.89% | |
| | | |
| | 21,200 | | | Winthrop Realty Trust, Sr. Unsec. Notes
7.750% | | | | | 539,116 | |
| | | |
| | | | Total Preferred Stocks
(Cost $540,810) | | | | | 539,116 | |
|
| | Warrants: 0.12% | |
| | Thailand: 0.12% | |
| | | |
| | 2,424,007 | | | Jasmine International Pcl, Warrants,
Strike Price 4.30 THB (expiring 07/05/20)(c) | | | | | 71,768 | |
| | | |
| | | | Total Warrants
(Cost $0) | | | | | 71,768 | |
| | | |
Principal
Amount | | | | | | | | |
|
| | Collateralized Mortgage Obligations: 1.30% | |
| | United States: 1.30% | |
| | | |
| | $544,310 | | | FHLMC, REMICS
3.000%, 06/15/27(f) | | | | | 58,458 | |
| | | |
| | 277,467 | | | 3.000%, 09/15/31(f) | | | | | 36,006 | |
| | | |
| | 407,982 | | | 4.000%, 05/15/26(f) | | | | | 42,649 | |
| | | |
| | 45,612 | | | FNMA, REMICS
5.000%, 03/25/23(f) | | | | | 2,573 | |
| | | |
| | 29,540 | | | 5.000%, 03/25/24(f) | | | | | 2,064 | |
| | | |
| | 11,290 | | | 6.313%, 08/25/36(f)(g) | | | | | 2,477 | |
| | | |
| | 1,086,256 | | | GNMA, REMICS
5.846%, 05/20/41(f)(g) | | | | | 204,126 | |
| | | |
| | 274,642 | | | 6.417%, 09/16/33(f)(g) | | | | | 54,459 | |
| | | |
| | 364,000 | | | Morgan Stanley Capital I Trust, Series 2003-IQ4, Class J
5.500%, 05/15/40(d)(g) | | | | | 382,886 | |
| | | |
| | | | | | | | | 785,698 | |
| | | |
| | | | Total Collateralized Mortgage Obligations
(Cost $895,653) | | | | | 785,698 | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value
(Note 2) | |
|
| | Corporate Bonds: 1.41% | |
| | United States: 1.41% | |
| | | |
| | $ 500,000 | | | Arch Coal, Inc., Sr. Unsec. Notes
7.250%, 10/01/20 | | | | $ | 142,500 | |
| | | |
| | 140,000 | | | Citigroup, Inc., Sr. Unsec. Medium-Term Notes
1.952%, 05/30/33(g) | | | | | 93,926 | |
| | 250,000 | | | Claire’s Stores, Inc., Second Lien Notes
8.875%, 03/15/19 | | | | | 113,750 | |
|
| | |
| | $300,000 | | | Hecla Mining Co., Sr. Unsec. Notes
6.875%, 05/01/21 | | | | $ | 285,375 | |
| | | |
| | 261,000 | | | International Bank for Reconstruction & Development, Sr. Unsec. Medium-Term Notes, Class 1
10.000%, 08/28/34(g) | | | | | 214,020 | |
| | | |
| | | | | | | | | 849,571 | |
| | | |
| | | | Total Corporate Bonds
(Cost $1,269,455) | | | | | 849,571 | |
| | | |
| | | | Total Investments: 103.88%
(Cost $62,811,992) | | | | | 62,726,614 | |
| | |
| | | | Net Other Assets and Liabilities: (3.88)% | | | (2,342,846 | )(h) |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 60,383,768 | |
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 by the issuer 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, unless otherwise noted below. At period end, the aggregate market value of those securities was $2,830,668, representing 4.69% of net assets.
(b) 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 $14,905,663, representing 24.68% of net assets.
(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 $1,024,518, representing 1.69% of net assets.
| | | | |
| See Notes to Financial Statements | | 47 | | June 30, 2015 |
Portfolio of Investments (Note 9) (Unaudited)
Forward Select EM Dividend Fund
(e) Security determined to be illiquid under the procedures approved by the Fund’s Board of Trustees.
(f) Interest only security.
(g) Interest rate will change at a future date. Interest rate shown reflects the rate in effect at June 30, 2015.
(h) Includes cash which is being held as collateral for futures contracts.
Futures Contracts
| | | | | | | | | | | | | | | | | | |
| Description | | Position | | Contracts | | | Expiration
Date | | | Value | | | Unrealized
Loss | |
MSCI Emerging Markets E-Mini Futures | | Long | | | 34 | | | | 09/21/15 | | | $ | 1,630,980 | | | $ | (11,445) | |
| Total Futures Contracts | | | | | | | | | | | | $ | 1,630,980 | | | $ | (11,445) | |
Securities determined to be illiquid under the procedures approved by the Fund’s Board of Trustees are as follows:
| | | | | | | | | | | | | | |
| Date(s) of Purchase | | Security | | Cost | | | Value | | | % of Net
Assets | |
| 05/14/14 | | Arabian Cement Co.(e) | | $ | 55,201 | | | $ | 83,963 | | | | 0.14% | |
| 09/10/13 | | Eastern Tobacco(e) | | | 178,269 | | | | 366,619 | | | | 0.61% | |
| 05/02/13 – 05/06/14 | | HMS Hydraulic Machines and Systems Group Plc, GDR(a)(e) | | | 1,343,874 | | | | 389,896 | | | | 0.64% | |
| | | | $ | 1,577,344 | | | $ | 840,478 | | | | 1.39% | |
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
REIT — Real Estate Investment Trust
REMICS — Real Estate Mortgage Investment Conduits
Sr. — Senior
Unsec. — Unsecured
Currency Abbreviations:
THB — Thailand Baht
| | | | |
| June 30, 2015 | | 48 | | See Notes to Financial Statements |
Portfolio of Investments (Note 9) (Unaudited)
Forward Small Cap Equity Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | |
| | Common Stocks: 90.91% | | | | | | |
| | Consumer Discretionary: 15.28% | | | | | | |
| | | |
| | 50,000 | | | Christopher & Banks Corp.(a) | | | | $ | 200,500 | |
| | | |
| | 49,000 | | | Diversified Restaurant Holdings, Inc.(a) | | | | | 182,280 | |
| | | |
| | 15,000 | | | Gentherm, Inc.(a) | | | | | 823,650 | |
| | | |
| | 13,000 | | | IMAX Corp.(a) | | | | | 523,510 | |
| | | |
| | 5,000 | | | Monro Muffler Brake, Inc. | | | | | 310,800 | |
| | | |
| | 29,000 | | | Performance Sports Group, Ltd.(a) | | | | | 522,000 | |
| | | |
| | 10,000 | | | Pool Corp. | | | | | 701,800 | |
| | | |
| | 4,000 | | | Restoration Hardware Holdings, Inc.(a) | | | | | 390,520 | |
| | | |
| | 10,000 | | | Sotheby’s | | | | | 452,400 | |
| | | |
| | | | | | | | | 4,107,460 | |
| | | | | | | | | | |
| | Consumer Staples: 3.44% | | | | | | |
| | | |
| | 5,000 | | | Casey’s General Stores, Inc. | | | | | 478,700 | |
| | | |
| | 20,000 | | | Limoneira Co. | | | | | 444,600 | |
| | | |
| | | | | | | | | 923,300 | |
| | | | | | | | | | |
| | Energy: 3.46% | | | | | | |
| | | |
| | 5,000 | | | Core Laboratories NV | | | | | 570,200 | |
| | | |
| | 7,500 | | | World Fuel Services Corp. | | | | | 359,625 | |
| | | |
| | | | | | | | | 929,825 | |
| | | | | | | | | | |
| | Financials: 13.03% | | | | | | |
| | | |
| | 12,500 | | | Artisan Partners Asset Management, Inc., Class A | | | | | 580,750 | |
| | | |
| | 10,000 | | | CBOE Holdings, Inc. | | | | | 572,200 | |
| | | |
| | 2,500 | | | Enstar Group, Ltd.(a) | | | | | 387,375 | |
| | | |
| | 10,000 | | | Evercore Partners, Inc., Class A | | | | | 539,600 | |
| | | |
| | 12,500 | | | FCB Financial Holdings, Inc., Class A(a) | | | | | 397,500 | |
| | | |
| | 18,754 | | | Silvercrest Asset Management Group, Inc., Class A | | | | | 263,681 | |
| | | |
| | 10,000 | | | South State Corp. | | | | | 759,900 | |
| | | |
| | | | | | | | | 3,501,006 | |
| | | | | | | | | | |
| | Healthcare: 15.66% | | | | | | |
| | | |
| | 4,600 | | | Aegerion Pharmaceuticals, Inc.(a) | | | | | 87,262 | |
| | | |
| | 12,000 | | | Clovis Oncology, Inc.(a) | | | | | 1,054,560 | |
| | | |
| | 37,600 | | | HMS Holdings Corp.(a) | | | | | 645,592 | |
| | | |
| | 20,000 | | | KYTHERA Biopharmaceuticals, Inc.(a) | | | | | 1,506,200 | |
| | | |
| | 12,500 | | | PRA Health Sciences, Inc.(a) | | | | | 454,125 | |
| | | |
| | 10,000 | | | Prestige Brands Holdings, Inc.(a) | | | | | 462,400 | |
| | | |
| | | | | | | | | 4,210,139 | |
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | |
| | | | | | | |
| | Industrials: 11.45% | | | | | | |
| | | |
| | 14,158 | | | Enphase Energy, Inc.(a) | | | | $ | 107,743 | |
| | | |
| | 20,000 | | | Exponent, Inc. | | | | | 895,600 | |
| | | |
| | 5,000 | | | John Bean Technologies Corp. | | | | | 187,950 | |
| | | |
| | 9,000 | | | Nordson Corp. | | | | | 701,010 | |
| | | |
| | 10,000 | | | Owens Corning | | | | | 412,500 | |
| | | |
| | 7,500 | | | Sun Hydraulics Corp. | | | | | 285,825 | |
| | | |
| | 10,000 | | | US Ecology, Inc. | | | | | 487,200 | |
| | | |
| | | | | | | | | 3,077,828 | |
| | | | | | | | | | |
| | Information Technology: 23.95% | | | | | | |
| | | |
| | 7,100 | | | ACI Worldwide, Inc.(a) | | | | | 174,447 | |
| | | |
| | 25,000 | | | AVX Corp. | | | | | 336,500 | |
| | | |
| | 2,500 | | | Broadridge Financial Solutions, Inc. | | | | | 125,025 | |
| | | |
| | 4,300 | | | CoreLogic, Inc.(a) | | | | | 170,667 | |
| | | |
| | 20,000 | | | CUI Global, Inc.(a) | | | | | 101,200 | |
| | | |
| | 10,000 | | | DST Systems, Inc. | | | | | 1,259,800 | |
| | | |
| | 3,000 | | | ePlus, Inc.(a) | | | | | 229,950 | |
| | | |
| | 7,800 | | | InterDigital, Inc. | | | | | 443,742 | |
| | | |
| | 8,000 | | | Littelfuse, Inc. | | | | | 759,120 | |
| | | |
| | 7,500 | | | Methode Electronics, Inc. | | | | | 205,875 | |
| | | |
| | 12,500 | | | MKS Instruments, Inc. | | | | | 474,250 | |
| | | |
| | 5,000 | | | Science Applications International Corp. | | | | | 264,250 | |
| | | |
| | 2,500 | | | SYNNEX Corp. | | | | | 182,975 | |
| | | |
| | 20,300 | | | TrueCar, Inc.(a) | | | | | 243,397 | |
| | | |
| | 5,000 | | | Vantiv, Inc., Class A(a) | | | | | 190,950 | |
| | | |
| | 7,500 | | | WEX, Inc.(a) | | | | | 854,775 | |
| | | |
| | 20,000 | | | Xoom Corp.(a) | | | | | 421,100 | |
| | | |
| | | | | | | | | 6,438,023 | |
| | | | | | | | | | |
| | Materials: 4.64% | | | | | | |
| | | |
| | 250,000 | | | Hecla Mining Co. | | | | | 657,500 | |
| | | |
| | 10,000 | | | Neenah Paper, Inc. | | | | | 589,600 | |
| | | |
| | | | | | | | | 1,247,100 | |
| | | |
| | | | Total Common Stocks
(Cost $23,239,979) | | | | | 24,434,681 | |
| | | | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 49 | | June 30, 2015 |
Portfolio of Investments (Note 9) (Unaudited)
Forward Small Cap Equity Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| |
| | Affiliated Investment Companies: 1.30% | | | | |
| | 350,051 | | | Forward U.S. Government Money Fund Institutional Class,
0.010% 7-day yield | | | | $ | 350,051 | |
| | | |
| | | | Total Affiliated Investment Companies
(Cost $350,051) | | | | | 350,051 | |
| | | |
| | | | Total Investments: 92.21%
(Cost $23,590,030) | | | | | 24,784,732 | |
| | | |
| | | | Net Other Assets and Liabilities: 7.79% | | | | | 2,093,051 | (b) |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 26,877,783 | |
Percentages are stated as a percent of net assets.
(a) Non-income producing security.
(b) Includes cash which is being held as collateral for potential transactions in futures contracts.
| | | | |
| June 30, 2015 | | 50 | | See Notes to Financial Statements |
Portfolio of Investments (Note 9) (Unaudited)
Forward Tactical Enhanced Fund
| | | | | | | | |
| | | | | | | Value
(Note 2) | |
|
| |
| | | | | | | |
| | Total Investments: 0.00%
(Cost $0) | | | | $ | 0 | |
| | |
| | Net Other Assets and Liabilities: 100.00% | | | 21,863,938 | (a) |
| | | |
| | Net Assets: 100.00% | | | | $ | 21,863,938 | |
Percentages are stated as a percent of net assets.
(a) 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 | | | 320 | | | | 09/21/15 | | | $ | 32,870,400 | | | $ | (316,389) | |
| Total Futures Contracts | | | | | | | | | | | | $ | 32,870,400 | | | $ | (316,389) | |
Investment Abbreviations:
S&P — Standard & Poor’s
| | | | |
| See Notes to Financial Statements | | 51 | | June 30, 2015 |
Portfolio of Investments (Note 9) (Unaudited)
Forward Tactical Growth Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
|
| | Exchange-Traded Funds: 50.63% | |
| | 1,690,192 | | | SPDR® S&P 500® ETF Trust | | | | $ | 347,926,023 | |
| | | |
| | | | Total Exchange-Traded Funds
(Cost $338,340,309) | | | | | 347,926,023 | |
| | | |
| | | | Total Investments: 50.63%
(Cost $338,340,309) | | | | | 347,926,023 | |
| | | |
| | | | Net Other Assets and Liabilities: 49.37% | | | | | 339,272,681 | |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 687,198,704 | |
Percentages are stated as a percent of net assets.
Investment Abbreviations:
ETF — Exchange-Traded Fund
S&P — Standard & Poor’s
SPDR — Standard & Poor’s Depository Receipts
| | | | |
| June 30, 2015 | | 52 | | See Notes to Financial Statements |
Consolidated Portfolio of Investments (Note 9) (Unaudited)
Forward Commodity Long/Short Strategy Fund
| | | | | | | | | | |
Principal
Amount | | | | | | | Value
(Note 2) | |
|
| | Agency Pass-Through Securities: 14.45% | |
| | Federal Home Loan Mortgage Corporation (FHLMC): 1.44% | |
| | | |
| | $212,693 | | | FHLMC
0.415%, 09/01/37(a) | | | | $ | 217,797 | |
| | | |
| | 193,000 | | | 0.415%, 09/01/37(a) | | | | | 197,568 | |
| | | |
| | 3,604 | | | 1.942%, 12/01/30(a) | | | | | 3,755 | |
| | | |
| | 9,825 | | | 2.033%, 01/01/23(a) | | | | | 10,485 | |
| | | |
| | 1,475 | | | 2.166%, 01/01/26(a) | | | | | 1,564 | |
| | | |
| | 8,383 | | | 2.176%, 06/01/36(a) | | | | | 8,896 | |
| | | |
| | 321 | | | 2.310%, 03/01/17(a) | | | | | 322 | |
| | | |
| | 34,025 | | | 2.424%, 08/01/36(a) | | | | | 36,433 | |
| | | |
| | 62,988 | | | 2.495%, 10/01/30(a) | | | | | 65,453 | |
| | | |
| | 4,617 | | | 3.133%, 11/01/19(a) | | | | | 4,684 | |
| | | |
| | 62,564 | | | 6.045%, 10/01/37(a) | | | | | 65,951 | |
| | | |
| | | | | | | | | 612,908 | |
| | | | | | | | | | |
| | Federal National Mortgage Association (FNMA): 11.97% | |
| | | |
| | 4,933 | | | FNMA
1.016%, 01/01/21(a) | | | | | 5,004 | |
| | | |
| | 23,648 | | | 1.336%, 10/01/44(a) | | | | | 24,283 | |
| | | |
| | 164,143 | | | 1.375%, 01/01/21(a) | | | | | 169,065 | |
| | | |
| | 1,554 | | | 1.512%, 09/01/33(a) | | | | | 1,628 | |
| | | |
| | 78,058 | | | 1.536%, 06/01/40(a) | | | | | 81,712 | |
| | | |
| | 20,571 | | | 1.536%, 10/01/40(a) | | | | | 21,183 | |
| | | |
| | 19,050 | | | 1.536%, 06/01/40(a) | | | | | 19,879 | |
| | | |
| | 2,057 | | | 1.596%, 11/01/33(a) | | | | | 2,164 | |
| | | |
| | 6,610 | | | 1.610%, 03/01/28(a) | | | | | 6,872 | |
| | | |
| | 4,813 | | | 1.621%, 11/01/33(a) | | | | | 5,030 | |
| | | |
| | 333,169 | | | 1.687%, 07/01/34(a) | | | | | 354,575 | |
| | | |
| | 132,800 | | | 1.784%, 03/01/34(a) | | | | | 139,305 | |
| | | |
| | 723 | | | 1.828%, 01/01/17(a) | | | | | 727 | |
| | | |
| | 7,896 | | | 1.846%, 12/01/24(a) | | | | | 8,230 | |
| | | |
| | 41,810 | | | 1.850%, 10/01/32(a) | | | | | 44,349 | |
| | | |
| | 87,898 | | | 1.885%, 02/01/33(a) | | | | | 92,302 | |
| | | |
| | 6,626 | | | 1.910%, 03/01/35(a) | | | | | 6,971 | |
| | | |
| | 15,388 | | | 1.917%, 08/01/35(a) | | | | | 16,269 | |
| | | |
| | 8,674 | | | 1.920%, 04/01/33(a) | | | | | 9,114 | |
| | | |
| | 90,393 | | | 1.925%, 05/01/33(a) | | | | | 94,915 | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value
(Note 2) | |
| | |
| | | | | | | | |
| | $ 14,049 | | | 1.948%, 05/01/19(a) | | | | $ | 14,314 | |
| | | |
| | 39,772 | | | 1.948%, 08/01/33(a) | | | | | 41,886 | |
| | | |
| | 147 | | | 1.950%, 07/01/17(a) | | | | | 151 | |
| | | |
| | 77,019 | | | 1.950%, 06/01/32(a) | | | | | 78,943 | |
| | | |
| | 239 | | | 1.950%, 10/01/16(a) | | | | | 242 | |
| | | |
| | 21,293 | | | 1.964%, 07/01/34(a) | | | | | 22,763 | |
| | | |
| | 2,625 | | | 1.965%, 04/01/18(a) | | | | | 2,767 | |
| | | |
| | 146,619 | | | 1.990%, 05/01/34(a) | | | | | 153,971 | |
| | | |
| | 27,137 | | | 2.019%, 08/01/33(a) | | | | | 28,390 | |
| | | |
| | 80,844 | | | 2.019%, 03/01/37(a) | | | | | 84,677 | |
| | | |
| | 53,987 | | | 2.041%, 11/01/35(a) | | | | | 56,859 | |
| | | |
| | 3,684 | | | 2.059%, 08/01/29(a) | | | | | 3,899 | |
| | | |
| | 16,141 | | | 2.061%, 06/01/19(a) | | | | | 16,825 | |
| | | |
| | 20,977 | | | 2.082%, 01/01/36(a) | | | | | 22,066 | |
| | | |
| | 395,002 | | | 2.084%, 01/01/35(a) | | | | | 419,471 | |
| | | |
| | 227,700 | | | 2.107%, 11/01/35(a) | | | | | 239,119 | |
| | | |
| | 25,026 | | | 2.122%, 11/01/35(a) | | | | | 26,349 | |
| | | |
| | 8,526 | | | 2.130%, 04/01/23(a) | | | | | 8,882 | |
| | | |
| | 40,890 | | | 2.132%, 11/01/17(a) | | | | | 41,700 | |
| | | |
| | 184,681 | | | 2.139%, 11/01/35(a) | | | | | 194,437 | |
| | | |
| | 175,095 | | | 2.148%, 03/01/34(a) | | | | | 186,310 | |
| | | |
| | 142,306 | | | 2.186%, 07/01/33(a) | | | | | 151,523 | |
| | | |
| | 24,915 | | | 2.186%, 11/01/35(a) | | | | | 26,583 | |
| | | |
| | 14,974 | | | 2.190%, 12/01/26(a) | | | | | 15,667 | |
| | | |
| | 5,074 | | | 2.202%, 04/01/18(a) | | | | | 5,285 | |
| | | |
| | 23,503 | | | 2.209%, 01/01/33(a) | | | | | 25,041 | |
| | | |
| | 30,058 | | | 2.216%, 02/01/25(a) | | | | | 32,005 | |
| | | |
| | 471,136 | | | 2.273%, 12/01/39(a) | | | | | 501,350 | |
| | | |
| | 36,027 | | | 2.287%, 07/01/36(a) | | | | | 38,123 | |
| | | |
| | 1,050 | | | 2.289%, 07/01/25(a) | | | | | 1,096 | |
| | | |
| | 12,337 | | | 2.307%, 08/01/36(a) | | | | | 13,092 | |
| | | |
| | 18,248 | | | 2.330%, 09/01/33(a) | | | | | 19,045 | |
| | | |
| | 17,439 | | | 2.330%, 12/01/29(a) | | | | | 18,191 | |
| | | |
| | 26,491 | | | 2.340%, 02/01/34(a) | | | | | 27,590 | |
| | | |
| | 8,106 | | | 2.341%, 06/01/32(a) | | | | | 8,546 | |
| | | | |
| See Notes to Financial Statements | | 53 | | June 30, 2015 |
Consolidated Portfolio of Investments (Note 9) (Unaudited)
Forward Commodity Long/Short Strategy Fund
| | | | | | | | | | |
Principal
Amount | | | | | | | Value
(Note 2) | |
|
| | |
| | Federal National Mortgage Association (FNMA) (continued): 11.97% | |
| | | |
| | $ 386,867 | | | 2.342%, 09/01/31(a) | | | | $ | 413,505 | |
| | | |
| | 666 | | | 2.354%, 03/01/30(a) | | | | | 709 | |
| | | |
| | 7,619 | | | 2.357%, 08/01/36(a) | | | | | 8,151 | |
| | | |
| | 31,888 | | | 2.366%, 01/01/33(a) | | | | | 32,990 | |
| | | |
| | 12,088 | | | 2.382%, 01/01/21(a) | | | | | 12,857 | |
| | | |
| | 17,339 | | | 2.393%, 11/01/29(a) | | | | | 18,489 | |
| | | |
| | 27,491 | | | 2.402%, 08/01/34(a) | | | | | 28,614 | |
| | | |
| | 1,756 | | | 2.414%, 05/01/33(a) | | | | | 1,859 | |
| | | |
| | 32,747 | | | 2.423%, 04/01/37(a) | | | | | 34,763 | |
| | | |
| | 21,141 | | | 2.429%, 08/01/25(a) | | | | | 22,582 | |
| | | |
| | 2,818 | | | 2.450%, 01/01/17(a) | | | | | 2,827 | |
| | | |
| | 8,255 | | | 2.460%, 04/01/36(a) | | | | | 8,862 | |
| | | |
| | 4,997 | | | 2.528%, 07/01/28(a) | | | | | 5,248 | |
| | | |
| | 44,960 | | | 2.529%, 11/01/29(a) | | | | | 47,570 | |
| | | |
| | 6,233 | | | 2.539%, 09/01/33(a) | | | | | 6,626 | |
| | | |
| | 34,998 | | | 2.610%, 02/01/26(a) | | | | | 36,660 | |
| | | |
| | 69,355 | | | 2.626%, 05/01/34(a) | | | | | 73,483 | |
| | | |
| | 29,780 | | | 2.651%, 09/01/30(a) | | | | | 31,809 | |
| | | |
| | 513 | | | 2.690%, 06/01/19(a) | | | | | 513 | |
| | | |
| | 43,510 | | | 2.956%, 11/01/36(a) | | | | | 45,720 | |
| | | |
| | 3,362 | | | 3.180%, 03/01/25(a) | | | | | 3,382 | |
| | | |
| | 14 | | | 3.330%, 05/01/18(a) | | | | | 14 | |
| | | |
| | 948 | | | 3.536%, 08/01/26(a) | | | | | 1,004 | |
| | | |
| | 5,888 | | | 3.700%, 07/01/17(a) | | | | | 6,113 | |
| | | |
| | 81,287 | | | 3.939%, 05/01/36(a) | | | | | 85,180 | |
| | | |
| | 3,247 | | | 4.582%, 04/01/29(a) | | | | | 3,349 | |
| | | |
| | 272 | | | 4.683%, 12/01/26(a) | | | | | 286 | |
| | | |
| | 3,810 | | | 4.863%, 03/01/27(a) | | | | | 3,940 | |
| | | |
| | 461,237 | | | 5.000%, 01/01/40 | | | | | 511,078 | |
| | | |
| | 80 | | | 6.500%, 07/01/17 | | | | | 80 | |
| | | |
| | 7,097 | | | 6.750%, 12/01/16(a) | | | | | 7,149 | |
| | | |
| | 802 | | | 7.365%, 08/01/20(a) | | | | | 801 | |
| | | |
| | | | | | | | | 5,086,948 | |
| | | | | | | | | | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value
(Note 2) | |
|
| | |
| | Government National Mortgage Association (GNMA): 1.04% | |
| | | |
| | $ 416,237 | | | GNMA
3.500%, 09/20/28 | | | | $ | 439,278 | |
| | | |
| | | | Total Agency Pass-Through Securities
(Cost $6,018,894) | | | | | 6,139,134 | |
|
| | Asset-Backed Securities: 2.82% | |
| | | |
| | 250,000 | | | American Express Credit Account Master Trust, Series 2014-2, Class A
1.260%, 01/15/20 | | | | | 250,406 | |
| | | |
| | 250,000 | | | Cabela’s Master Credit Card Trust,
Series 2013-2A, Class A2
0.836%, 08/16/21(a)(b) | | | | | 251,226 | |
| | | |
| | 397,648 | | | Nissan Auto Receivables 2013-B Owner Trust, Series 2013-B, Class A3
0.840%, 11/15/17 | | | | | 397,823 | |
| | | |
| | 300,000 | | | Volkswagen Auto Loan Enhanced Trust,
Series 2014-1, Class A4
1.450%, 09/21/20 | | | | | 300,265 | |
| | | |
| | | | Total Asset-Backed Securities
(Cost $1,197,535) | | | | | 1,199,720 | |
|
| | Collateralized Mortgage Obligations: 5.52% | |
| | Collateralized Mortgage Obligations-Other: 1.71% | |
| | | |
| | 243,093 | | | Citigroup Commercial Mortgage Trust, Series 2010-RR3, Class MLSR
9.192%, 05/14/17(a)(b) | | | | | 256,403 | |
| | | |
| | 195,608 | | | Deutsche Mortgage Securities, Inc., Mortgage Loan Trust, Series 2004-1, Class 1A1 5.500%, 09/25/33 | | | | | 204,044 | |
| | | |
| | 262,699 | | | JP Morgan Mortgage Trust,
Series 2004-A5, Class 2A1
2.281%, 12/25/34(a) | | | | | 264,418 | |
| | | |
| | | | | | | | | 724,865 | |
| | | | | | | | | | |
| | Federal Home Loan Mortgage Corporation (FHLMC): 3.29% | |
| | | |
| | 377,067 | | | FHLMC, REMICS
3.000%, 08/15/40 | | | | | 394,143 | |
| | | |
| | 515,411 | | | 3.500%, 04/15/40 | | | | | 546,099 | |
| | | |
| | 150,419 | | | 4.500%, 08/15/20 | | | | | 158,094 | |
| | | |
| | 292,486 | | | FHLMC, STRIP
3.500%, 07/15/42 | | | | | 300,774 | |
| | | |
| | | | | | | | | 1,399,110 | |
| | | | |
| June 30, 2015 | | 54 | | See Notes to Financial Statements |
Consolidated Portfolio of Investments (Note 9) (Unaudited)
Forward Commodity Long/Short Strategy Fund
| | | | | | | | | | |
Principal
Amount | | | | | | | Value
(Note 2) | |
|
| | |
| | Federal National Mortgage Association (FNMA): 0.52% | |
| | | |
| | $ 206,791 | | | FNMA, REMICS
4.500%, 10/25/39 | | | | $ | 222,162 | |
| | | |
| | | | Total Collateralized Mortgage Obligations
(Cost $2,311,728) | | | | | 2,346,137 | |
|
| | Corporate Bonds: 15.29% | |
| | Basic Materials: 0.76% | |
| | | |
| | 300,000 | | | BHP Billiton Finance USA, Ltd., Sr. Unsec. Notes
5.400%, 03/29/17 | | | | | 322,715 | |
| | | | | | | | | | |
| | Consumer Cyclical: 1.78% | |
| | | |
| | 750,000 | | | Daimler Finance North America Llc, Sr. Unsec. Notes
1.138%, 08/01/18(a)(b) | | | | | 756,935 | |
| | | | | | | | | | |
| | Consumer Noncyclical: 3.50% | |
| | | |
| | 500,000 | | | Amgen, Inc., Sr. Unsec. Notes
2.500%, 11/15/16 | | | | | 509,459 | |
| | | |
| | 500,000 | | | Bottling Group Llc, Sr. Unsec. Notes
5.500%, 04/01/16 | | | | | 519,057 | |
| | | |
| | 445,000 | | | Colgate-Palmolive Co., Sr. Unsec. Medium-Term Notes 2.625%, 05/01/17 | | | | | 458,573 | |
| | | |
| | | | | | | | | 1,487,089 | |
| | | | | | | | | | |
| | Financials: 7.29% | |
| | | |
| | 360,000 | | | American Express Credit Corp., Sr. Unsec. Notes
0.836%, 03/18/19(a) | | | | | 358,977 | |
| | | |
| | 320,000 | | | Berkshire Hathaway Finance Corp., Sr. Unsec. Notes
2.450%, 12/15/15 | | | | | 322,780 | |
| | | |
| | 382,000 | | | Macquarie Group, Ltd., Sr. Unsec. Notes
1.278%, 01/31/17(a)(b) | | | | | 383,925 | |
| | | |
| | 1,554,000 | | | National City Bank, Sub. Notes
0.649%, 06/07/17(a) | | | | | 1,547,077 | |
| | | |
| | 500,000 | | | Skyway Concession Co., Llc, Sec. Notes
0.562%, 06/30/17(a)(b) | | | | | 483,125 | |
| | | |
| | | | | | | | | 3,095,884 | |
| | | | | | | | | | |
| | Industrials: 0.79% | |
| | | |
| | 325,000 | | | Honeywell International, Inc., Sr. Unsec. Notes
5.400%, 03/15/16 | | | | | 335,569 | |
| | | | | | | | | | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value
(Note 2) | |
|
| | |
| | Telecommunication Services: 1.17% | |
| | | |
| | $ 500,000 | | | AT&T, Inc., Sr. Unsec. Notes
0.665%, 02/12/16(a) | | | | $ | 499,340 | |
| | | |
| | | | Total Corporate Bonds
(Cost $6,466,297) | | | | | 6,497,532 | |
|
| | Municipal Bonds: 18.96% | |
| | 275,000 | | | Arizona State Power Authority Power Resources, Taxable Revenue Bonds, Hoover Prepayment Project
2.199%, 10/01/19 | | | | | 277,326 | |
| | | |
| | 500,000 | | | City of Houston, Texas, General Obligation Taxable Refunding Bonds, Public Improvement, Series B
1.140%, 03/01/16 | | | | | 502,535 | |
| | | |
| | 50,000 | | | City of Houston, Texas, Utility System, Taxable Revenue Bonds, First Lien, Series B
1.086%, 05/15/17 | | | | | 50,068 | |
| | | |
| | 500,000 | | | City of Montgomery, Alabama, General Obligation Taxable Unlimited Warrants, Series B 1.070%, 04/01/16 | | | | | 499,715 | |
| | | |
| | 750,000 | | | Colorado Housing & Finance Authority, Single Family Mortgage Revenue Bonds, Class I, Series A
1.473%, 05/01/18 | | | | | 753,847 | |
| | | |
| | 500,000 | | | 1.623%, 11/01/18 | | | | | 503,000 | |
| | | |
| | 750,000 | | | County of Loudoun Virginia, General Obligation Taxable Refunding Bonds, Series B
0.895%, 12/01/16 | | | | | 751,485 | |
| | | |
| | 250,000 | | | County of Milwaukee Wisconsin, General Obligation Taxable Unlimited Pension Refunding Bonds, Series B
1.282%, 12/01/16 | | | | | 252,827 | |
| | | |
| | 600,000 | | | Minnesota State General Appropriation Fund, Taxable Revenue Bonds, Series B
1.053%, 06/01/17 | | | | | 601,140 | |
| | | |
| | 250,000 | | | New Jersey Building Authority, Taxable Refinancing Revenue Bonds, Series B
1.233%, 06/15/16 | | | | | 249,898 | |
| | | |
| | 500,000 | | | New York State Urban Development Corp., State Personal Income Taxable Revenue Bonds, Series F
1.650%, 03/15/18 | | | | | 503,990 | |
| | | | |
| See Notes to Financial Statements | | 55 | | June 30, 2015 |
Consolidated Portfolio of Investments (Note 9) (Unaudited)
Forward Commodity Long/Short Strategy Fund
| | | | | | | | | | |
Principal
Amount | | | | | | | Value
(Note 2) | |
|
| | Municipal Bonds (continued): 18.96% | |
| | $ 250,000 | | | North Texas Tollway Authority, First Tier Variable Revenue Refunding Bonds, Series A
0.870%, 01/01/50(a) | | | | $ | 250,160 | |
| | | |
| | 750,000 | | | Pasadena, California, Unified School District, General Obligation Taxable Unlimited Refunding Bonds, Series B
1.861%, 11/01/18 | | | | | 757,103 | |
| | | |
| | 300,000 | | | Pearland Independent School District, General Obligation Taxable Unlimited Refunding Bonds, Series B
3.000%, 02/15/17 | | | | | 308,565 | |
| | | |
| | 250,000 | | | Pequea Valley School District, Taxable General Obligation Unlimited Bonds, Series B 0.948%, 02/01/16 | | | | | 249,648 | |
| | | |
| | 430,000 | | | Rhode Island State Housing & Mortgage Finance Corp., Taxable Revenue Bonds, Series 64-T 2.080%, 10/01/17 | | | | | 434,210 | |
| | | |
| | 400,000 | | | State of Connecticut, Special Tax Obligation Build America Revenue Bonds (Transportation Infrastructure Purposes — Direct Pay), Series B
4.376%, 11/01/21 | | | | | 438,428 | |
| | | |
| | 170,000 | | | Texas State Department of Housing & Community Affairs, Taxable Revenue Bonds, Series A 2.800%, 03/01/36 | | | | | 170,015 | |
| | | |
| | 500,000 | | | Wise County, Virginia, Industrial Development Authority Facilities Lease, Taxable Revenue Bonds
1.700%, 02/01/17 | | | | | 500,220 | |
| | | |
| | | | Total Municipal Bonds
(Cost $8,015,906) | | | | | 8,054,180 | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value
(Note 2) | |
|
| | U.S. Treasury Bonds & Notes: 14.36% | |
| | $ 3,500,000 | | | U.S. Treasury Notes
0.875%, 05/15/17 | | | | $ | 3,515,586 | |
| | | |
| | 2,500,000 | | | 2.375%, 07/31/17 | | | | | 2,586,522 | |
| | | |
| | | | Total U.S. Treasury Bonds & Notes
(Cost $6,086,974) | | | | | 6,102,108 | |
| | | |
| | | | Total Investments: 71.40%
(Cost $30,097,334) | | | | | 30,338,811 | |
| | | |
| | | | Net Other Assets and Liabilities: 28.60% | | | | | 12,155,247 | (c) |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 42,494,058 | |
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, 2015.
(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 $2,131,614, representing 5.02% 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
(Pays)/Receives | | | Termination
Date | | | Notional
Amount | | | Net
Unrealized
Gain/(Loss) | |
Credit Suisse | | CS Momentum & Volatility Enhanced Return Strategy Custom 15-Total Return | | (105 Bps) | | | Total Return | | | | 07/06/15 | | | $ | 44,241,716 | | | $ | (95,536 | ) |
Credit Suisse | | CS Momentum & Volatility Enhanced Return Strategy Custom 15-Total Return | | 105 Bps | | | (Total Return) | | | | 07/06/15 | | | | (1,300,000 | ) | | | 7,405 | |
Credit Suisse | | CS Momentum & Volatility Enhanced Return Strategy Custom 15-Total Return | | 105 Bps | | | (Total Return) | | | | 07/06/15 | | | | (400,000 | ) | | | 9,593 | |
| Total of Total Return Swap Contracts | | | | | | | | | | $ | 42,541,716 | | | $ | (78,538 | ) |
| | | | |
| June 30, 2015 | | 56 | | See Notes to Financial Statements |
Consolidated Portfolio of Investments (Note 9) (Unaudited)
Forward Commodity Long/Short Strategy Fund
Investment Abbreviations:
Bps — Basis Points
REMICS — Real Estate Mortgage Investment Conduits
Sec. — Secured
Sr. — Senior
STRIP — Separate Trading of Registered Interest and Principal of Securities
Sub. — Subordinated
Unsec. — Unsecured
| | | | |
| See Notes to Financial Statements | | 57 | | June 30, 2015 |
Statement of Assets and Liabilities (Unaudited)
| | | | | | | | | | | | |
| | | Forward
Credit
Analysis
Long/Short
Fund | | | Forward
Dynamic
Income
Fund | | | Forward EM
Corporate
Debt
Fund | |
Assets: | | | | | | | | | | | | |
Investments, at value | | $ | 97,651,433 | | | $ | 30,788,867 | | | $ | 337,233,698 | |
Cash | | | 268,034 | | | | 16,097,082 | | | | 21,547,694 | |
Foreign currency, at value (Cost $—, $20,393 and $—, respectively) | | | — | | | | 20,469 | | | | — | |
Deposit with broker for futures contracts | | | 311,646 | | | | 3,863,300 | | | | — | |
Variation margin receivable | | | 2,813 | | | | — | | | | — | |
Receivable for investments sold | | | 2,909,883 | | | | 1,254,859 | | | | 4,867,664 | |
Receivable for shares sold | | | 81,796 | | | | 327,573 | | | | 347,626 | |
Receivable due from broker | | | — | | | | — | | | | 300,001 | |
Interest and dividends receivable | | | 1,622,208 | | | | 169,578 | | | | 5,544,634 | |
Other assets | | | 40,650 | | | | 21,244 | | | | 42,931 | |
| | | | | | | | | | | | |
Total Assets | | | 102,888,463 | | | | 52,542,972 | | | | 369,884,248 | |
| | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | |
Payable on loan (Note 2) | | | — | | | | — | | | | 36,048,790 | |
Payable for interest due on loan (Note 2) | | | — | | | | — | | | | 2,777 | |
Variation margin payable | | | — | | | | 117,950 | | | | — | |
Payable for investments purchased | | | 839,443 | | | | 2,164,562 | | | | — | |
Payable for shares redeemed | | | 564,742 | | | | 22,174 | | | | 417,894 | |
Payable to advisor | | | 97,566 | | | | 24,130 | | | | 196,191 | |
Payable for distribution and service fees | | | 31,684 | | | | 7,532 | | | | 100,001 | |
Payable to trustees | | | 235 | | | | 65 | | | | 734 | |
Payable for chief compliance officer fee | | | 730 | | | | 13 | | | | 2,094 | |
Payable for legal and audit fees | | | 31,681 | | | | 10,474 | | | | 39,110 | |
Accrued expenses and other liabilities | | | 30,232 | | | | 2,791 | | | | 97,953 | |
| | | | | | | | | | | | |
Total Liabilities | | | 1,596,313 | | | | 2,349,691 | | | | 36,905,544 | |
| | | | | | | | | | | | |
Net Assets | | $ | 101,292,150 | | | $ | 50,193,281 | | | $ | 332,978,704 | |
| | | | | | | | | | | | |
Net Assets Consist of: | | | | | | | | | | | | |
Paid-in capital | | $ | 194,211,005 | | | $ | 52,085,927 | | | $ | 384,892,110 | |
Accumulated net investment income | | | 39,173 | | | | 98,955 | | | | 542,095 | |
Accumulated net realized loss on investments, securities sold short, futures contracts, swap contracts and foreign currency transactions | | | (93,668,840 | ) | | | (2,459,270 | ) | | | (31,539,985 | ) |
Net unrealized appreciation/(depreciation) on investments, futures contracts and translation of assets and liabilities in foreign currencies | | | 710,812 | | | | 467,669 | | | | (20,915,516 | ) |
| | | | | | | | | | | | |
Total Net Assets | | $ | 101,292,150 | | | $ | 50,193,281 | | | $ | 332,978,704 | |
| | | | | | | | | | | | |
Investments, At Cost | | $ | 97,032,186 | | | $ | 30,193,040 | | | $ | 358,146,141 | |
| | | |
Pricing of Shares | | | | | | | | | | | | |
Investor Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $7.41 | | | | $25.59 | | | | $8.58 | |
Net Assets | | $ | 65,398,785 | | | $ | 1,109,611 | | | $ | 284,943,466 | |
Shares of beneficial interest outstanding | | | 8,830,416 | | | | 43,357 | | | | 33,225,017 | |
Institutional Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $7.35 | | | | $25.59 | | | | $8.51 | |
Net Assets | | $ | 19,437,845 | | | $ | 36,769,269 | | | $ | 42,685,774 | |
Shares of beneficial interest outstanding | | | 2,646,114 | | | | 1,436,883 | | | | 5,013,514 | |
| | | | |
| June 30, 2015 | | 58 | | See Notes to Financial Statements |
Statement of Assets and Liabilities (Unaudited)
| | | | | | | | | | | | |
| | | Forward
Credit
Analysis
Long/Short
Fund
(continued) | | | Forward
Dynamic
Income
Fund
(continued) | | | Forward EM
Corporate
Debt
Fund
(continued) | |
Class A: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $7.37 | | | | $25.55 | | | | — | |
Net Assets | | $ | 4,361,567 | | | $ | 12,314,401 | | | | — | |
Shares of beneficial interest outstanding | | | 591,669 | | | | 481,941 | | | | — | |
Maximum offering price per share (NAV/0.9425, based on maximum sales charge of 5.75% of the offering price) | | | $7.82 | | | | $27.11 | | | | — | |
Class C: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $7.41 | | | | — | | | | $8.61 | |
Net Assets | | $ | 6,052,460 | | | | — | | | $ | 2,376,820 | |
Shares of beneficial interest outstanding | | | 816,248 | | | | — | | | | 276,128 | |
Advisor Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $7.35 | | | | — | | | | $8.50 | |
Net Assets | | $ | 6,041,493 | | | | — | | | $ | 2,972,644 | |
Shares of beneficial interest outstanding | | | 822,132 | | | | — | | | | 349,600 | |
| | | | |
| See Notes to Financial Statements | | 59 | | June 30, 2015 |
Statement of Assets and Liabilities (Unaudited)
| | | | | | | | | | | | |
| | | Forward
Emerging
Markets
Fund | | | Forward
Global
Dividend
Fund | | | Forward
International
Dividend
Fund | |
Assets: | | | | | | | | | | | | |
Investments, at value | | $ | 9,939,866 | | | $ | 12,148,847 | | | $ | 310,512,998 | |
Cash | | | 1,541,103 | | | | 278,613 | | | | 5,443,695 | |
Foreign currency, at value (Cost $33,774, $9,105 and $1,765,281, respectively) | | | 33,695 | | | | 9,109 | | | | 1,759,777 | |
Deposit with broker for futures contracts | | | 411,782 | | | | — | | | | 297,678 | |
Receivable for investments sold | | | 585 | | | | 67,402 | | | | 8,424,189 | |
Receivable for shares sold | | | 5,801 | | | | — | | | | 354,282 | |
Receivable due from custodian | | | 626 | | | | 7,735 | | | | 148,904 | |
Interest and dividends receivable | | | 48,107 | | | | 48,370 | | | | 2,217,599 | |
Other assets | | | 21,558 | | | | 18,151 | | | | 46,533 | |
| | | | | | | | | | | | |
Total Assets | | | 12,003,123 | | | | 12,578,227 | | | | 329,205,655 | |
| | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | |
Payable on loan (Note 2) | | | — | | | | — | | | | 30,235,446 | |
Payable for interest due on loan (Note 2) | | | — | | | | — | | | | 5,192 | |
Variation margin payable | | | 7,753 | | | | — | | | | 146,632 | |
Payable for investments purchased | | | 67,910 | | | | — | | | | 7,206,166 | |
Payable for shares redeemed | | | 13,076 | | | | — | | | | 13,439,954 | |
Payable to advisor | | | 2,355 | | | | 194 | | | | 171,338 | |
Payable for distribution and service fees | | | 1,508 | | | | 5,206 | | | | 58,400 | |
Payable to trustees | | | 29 | | | | 35 | | | | 598 | |
Payable for chief compliance officer fee | | | 62 | | | | 90 | | | | 1,739 | |
Payable for legal and audit fees | | | 18,782 | | | | 17,981 | | | | 25,258 | |
Accrued expenses and other liabilities | | | 8,132 | | | | 5,213 | | | | 66,361 | |
| | | | | | | | | | | | |
Total Liabilities | | | 119,607 | | | | 28,719 | | | | 51,357,084 | |
| | | | | | | | | | | | |
Net Assets | | $ | 11,883,516 | | | $ | 12,549,508 | | | $ | 277,848,571 | |
| | | | | | | | | | | | |
Net Assets Consist of: | | | | | | | | | | | | |
Paid-in capital | | $ | 12,923,135 | | | $ | 10,679,593 | | | $ | 298,070,392 | |
Accumulated net investment income/(loss) | | | 67,348 | | | | (21,834 | ) | | | (2,394,167 | ) |
Accumulated net realized loss on investments, futures contracts and foreign currency transactions | | | (1,359,917 | ) | | | (38,345 | ) | | | (30,081,586 | ) |
Net unrealized appreciation on investments, futures contracts and translation of assets and liabilities in foreign currencies | | | 252,950 | | | | 1,930,094 | | | | 12,253,932 | |
| | | | | | | | | | | | |
Total Net Assets | | $ | 11,883,516 | | | $ | 12,549,508 | | | $ | 277,848,571 | |
| | | | | | | | | | | | |
Investments, At Cost | | $ | 9,678,174 | | | $ | 10,217,505 | | | $ | 298,052,959 | |
| | | |
Pricing of Shares | | | | | | | | | | | | |
Investor Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $10.30 | | | | $11.40 | | | | $8.90 | |
Net Assets | | $ | 3,332,623 | | | $ | 247,924 | | | $ | 116,026,034 | |
Shares of beneficial interest outstanding | | | 323,436 | | | | 21,755 | | | | 13,037,631 | |
Institutional Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $10.46 | | | | $11.22 | | | | $7.33 | |
Net Assets | | $ | 7,638,063 | | | $ | 1,404,833 | | | $ | 104,702,732 | |
Shares of beneficial interest outstanding | | | 730,375 | | | | 125,154 | | | | 14,289,429 | |
| | | | |
| June 30, 2015 | | 60 | | See Notes to Financial Statements |
Statement of Assets and Liabilities (Unaudited)
| | | | | | | | | | | | |
| | | Forward
Emerging
Markets
Fund
(continued) | | | Forward
Global
Dividend
Fund
(continued) | | | Forward
International
Dividend
Fund
(continued) | |
Class A: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | — | | | | $11.40 | | | | $8.90 | |
Net Assets | | | — | | | $ | 10,896,751 | | | $ | 4,987,684 | |
Shares of beneficial interest outstanding | | | — | | | | 955,834 | | | | 560,524 | |
Maximum offering price per share (NAV/0.9425, based on maximum sales charge of 5.75% of the offering price) | | | — | | | | $12.10 | | | | $9.44 | |
Class C: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | — | | | | — | | | | $8.88 | |
Net Assets | | | — | | | | — | | | $ | 11,633,205 | |
Shares of beneficial interest outstanding | | | — | | | | — | | | | 1,310,564 | |
Advisor Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $10.76 | | | | — | | | | $7.33 | |
Net Assets | | $ | 912,830 | | | | — | | | $ | 40,498,916 | |
Shares of beneficial interest outstanding | | | 84,871 | | | | — | | | | 5,528,029 | |
| | | | |
| See Notes to Financial Statements | | 61 | | June 30, 2015 |
Statement of Assets and Liabilities (Unaudited)
| | | | | | | | | | | | |
| | | Forward
International
Small
Companies
Fund | | | Forward
Select EM
Dividend
Fund | | | Forward
Small Cap
Equity
Fund | |
Assets: | | | | | | | | | | | | |
Investments in affiliates, at value | | $ | — | | | $ | — | | | $ | 350,051 | |
Investments, at value | | | 176,329,323 | | | | 62,726,614 | | | | 24,434,681 | |
Cash | | | 4,910,038 | | | | 2,106,364 | | | | 1,441,961 | |
Foreign currency, at value (Cost $83,244, $552,046 and $—, respectively) | | | 82,753 | | | | 547,561 | | | | — | |
Deposit with broker for futures contracts | | | — | | | | 142,049 | | | | 690,615 | |
Receivable for investments sold | | | 406,957 | | | | 1,156,307 | | | | — | |
Receivable for shares sold | | | 93,941 | | | | 99,983 | | | | — | |
Receivable due from custodian | | | 375 | | | | 6,964 | | | | — | |
Interest and dividends receivable | | | 391,901 | | | | 413,022 | | | | 1,803 | |
Other assets | | | 27,734 | | | | 38,127 | | | | 92,968 | |
| | | | | | | | | | | | |
Total Assets | | | 182,243,022 | | | | 67,236,991 | | | | 27,012,079 | |
| | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | |
Payable on loan (Note 2) | | | — | | | | 5,601,285 | | | | — | |
Payable for interest due on loan (Note 2) | | | — | | | | 431 | | | | — | |
Variation margin payable | | | — | | | | 11,445 | | | | — | |
Payable for investments purchased | | | 121,270 | | | | 1,033,202 | | | | — | |
Payable for shares redeemed | | | 146,878 | | | | 92,280 | | | | 96,419 | |
Payable to advisor | | | 145,037 | | | | 43,184 | | | | 10,025 | |
Payable for distribution and service fees | | | 17,411 | | | | 15,437 | | | | 7,288 | |
Payable to trustees | | | 368 | | | | 148 | | | | 95 | |
Payable for chief compliance officer fee | | | 866 | | | | 206 | | | | 119 | |
Payable for legal and audit fees | | | 32,001 | | | | 18,560 | | | | 9,062 | |
Accrued expenses and other liabilities | | | 45,304 | | | | 37,045 | | | | 11,288 | |
| | | | | | | | | | | | |
Total Liabilities | | | 509,135 | | | | 6,853,223 | | | | 134,296 | |
| | | | | | | | | | | | |
Net Assets | | $ | 181,733,887 | | | $ | 60,383,768 | | | $ | 26,877,783 | |
| | | | | | | | | | | | |
Net Assets Consist of: | | | | | | | | | | | | |
Paid-in capital | | $ | 343,490,752 | | | $ | 74,724,507 | | | $ | 50,445,609 | |
Accumulated net investment income/(loss) | | | (798,025 | ) | | | 225,885 | | | | (93,267 | ) |
Accumulated net realized loss on investments, futures contracts and foreign currency transactions | | | (194,589,549 | ) | | | (14,459,025 | ) | | | (24,669,261 | ) |
Net unrealized appreciation/(depreciation) on investments, futures contracts and translation of assets and liabilities in foreign currencies | | | 33,630,709 | | | | (107,599 | ) | | | 1,194,702 | |
| | | | | | | | | | | | |
Total Net Assets | | $ | 181,733,887 | | | $ | 60,383,768 | | | $ | 26,877,783 | |
| | | | | | | | | | | | |
Investments in Affiliates, At Cost | | | — | | | | — | | | $ | 350,051 | |
| | | |
Investments, At Cost | | $ | 142,694,663 | | | $ | 62,811,992 | | | $ | 23,239,979 | |
| | | |
Pricing of Shares | | | | | | | | | | | | |
Investor Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $17.86 | | | | $19.48 | | | | $23.01 | |
Net Assets | | $ | 33,694,953 | | | $ | 40,672,801 | | | $ | 20,594,455 | |
Shares of beneficial interest outstanding | | | 1,886,426 | | | | 2,088,279 | | | | 895,030 | |
Institutional Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $17.86 | | | | $19.48 | | | | $24.34 | |
Net Assets | | $ | 144,984,720 | | | $ | 16,815,231 | | | $ | 3,717,143 | |
Shares of beneficial interest outstanding | | | 8,116,697 | | | | 863,127 | | | | 152,740 | |
| | | | |
| June 30, 2015 | | 62 | | See Notes to Financial Statements |
Statement of Assets and Liabilities (Unaudited)
| | | | | | | | | | | | |
| | | Forward
International
Small
Companies
Fund
(continued) | | | Forward
Select EM
Dividend
Fund
(continued) | | | Forward
Small Cap
Equity
Fund
(continued) | |
Class C: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | — | | | | $19.44 | | | | — | |
Net Assets | | | — | | | $ | 1,662,684 | | | | — | |
Shares of beneficial interest outstanding | | | — | | | | 85,537 | | | | — | |
Advisor Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $17.87 | | | | $19.47 | | | | $24.21 | |
Net Assets | | $ | 3,054,214 | | | $ | 1,233,052 | | | $ | 2,566,185 | |
Shares of beneficial interest outstanding | | | 170,866 | | | | 63,332 | | | | 105,980 | |
| | | | |
| See Notes to Financial Statements | | 63 | | June 30, 2015 |
Statement of Assets and Liabilities (Unaudited)
| | | | | | | | |
| | | Forward
Tactical
Enhanced
Fund | | | Forward
Tactical
Growth
Fund | |
Assets: | | | | | | | | |
Investments, at value | | $ | — | | | $ | 347,926,023 | |
Cash | | | 19,740,878 | | | | 275,091,921 | |
Deposit with broker for futures contracts | | | 2,438,854 | | | | — | |
Receivable for investments sold | | | — | | | | 68,746,885 | |
Receivable for shares sold | | | 17,308 | | | | 408,130 | |
Interest and dividends receivable | | | — | | | | 2,932,565 | |
Other assets | | | 26,778 | | | | 62,944 | |
| | | | | | | | |
Total Assets | | | 22,223,818 | | | | 695,168,468 | |
| | | | | | | | |
Liabilities: | | | | | | | | |
Variation margin payable | | | 316,389 | | | | — | |
Payable for shares redeemed | | | — | | | | 6,944,073 | |
Payable to advisor | | | 11,874 | | | | 671,298 | |
Payable for distribution and service fees | | | 5,108 | | | | 156,583 | |
Payable to trustees | | | 526 | | | | 1,596 | |
Payable for chief compliance officer fee | | | 305 | | | | 4,794 | |
Payable for legal and audit fees | | | 15,095 | | | | 46,961 | |
Accrued expenses and other liabilities | | | 10,583 | | | | 144,459 | |
| | | | | | | | |
Total Liabilities | | | 359,880 | | | | 7,969,764 | |
| | | | | | | | |
Net Assets | | $ | 21,863,938 | | | $ | 687,198,704 | |
| | | | | | | | |
Net Assets Consist of: | | | | | | | | |
Paid-in capital | | $ | 25,082,266 | | | $ | 680,930,564 | |
Accumulated net investment loss | | | (200,088 | ) | | | (1,678,766 | ) |
Accumulated net realized loss on investments, written option contracts and futures contracts | | | (2,701,851 | ) | | | (1,638,808 | ) |
Net unrealized appreciation/(depreciation) on investments and futures contracts | | | (316,389 | ) | | | 9,585,714 | |
| | | | | | | | |
Total Net Assets | | $ | 21,863,938 | | | $ | 687,198,704 | |
| | | | | | | | |
Investments, At Cost | | $ | — | | | $ | 338,340,309 | |
| | |
Pricing of Shares | | | | | | | | |
Investor Class: | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $22.49 | | | | $25.05 | |
Net Assets | | $ | 10,548,131 | | | $ | 118,611,071 | |
Shares of beneficial interest outstanding | | | 469,103 | | | | 4,734,117 | |
Institutional Class: | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $22.80 | | | | $25.58 | |
Net Assets | | $ | 9,475,757 | | | $ | 41,094,098 | |
Shares of beneficial interest outstanding | | | 415,547 | | | | 1,606,348 | |
Class A: | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $22.34 | | | | $24.79 | |
Net Assets | | $ | 482,997 | | | $ | 51,527,364 | |
Shares of beneficial interest outstanding | | | 21,623 | | | | 2,078,421 | |
Maximum offering price per share (NAV/0.9425, based on maximum sales charge of 5.75% of the offering price) | | | $23.70 | | | | $26.30 | |
Class C: | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $21.94 | | | | $24.08 | |
Net Assets | | $ | 1,109,203 | | | $ | 67,272,295 | |
Shares of beneficial interest outstanding | | | 50,545 | | | | 2,793,374 | |
| | | | |
| June 30, 2015 | | 64 | | See Notes to Financial Statements |
Statement of Assets and Liabilities (Unaudited)
| | | | | | | | |
| | | Forward
Tactical
Enhanced
Fund
(continued) | | | Forward
Tactical
Growth
Fund
(continued) | |
Advisor Class: | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $22.73 | | | | $25.57 | |
Net Assets | | $ | 247,850 | | | $ | 408,693,876 | |
Shares of beneficial interest outstanding | | | 10,903 | | | | 15,982,733 | |
| | | | |
| See Notes to Financial Statements | | 65 | | June 30, 2015 |
Consolidated Statement of Assets and Liabilities (Unaudited)
| | | | |
| | | Forward
Commodity
Long/Short
Strategy
Fund | |
Assets: | | | | |
Investments, at value | | $ | 30,338,811 | |
Cash | | | 7,307,659 | |
Deposit with broker for swap contracts | | | 4,954,080 | |
Unrealized gain on swap contracts | | | 16,998 | |
Receivable for investments sold | | | 3,625 | |
Receivable for shares sold | | | 944,819 | |
Interest and dividends receivable | | | 103,950 | |
Other assets | | | 27,807 | |
| | | | |
Total Assets | | | 43,697,749 | |
| | | | |
Liabilities: | | | | |
Unrealized loss on swap contracts | | | 95,536 | |
Payable for swap contract payments | | | 32,432 | |
Payable for investments purchased | | | 900,000 | |
Payable for shares redeemed | | | 57,939 | |
Payable to advisor | | | 35,792 | |
Payable for distribution and service fees | | | 9,028 | |
Payable to trustees | | | 717 | |
Payable for chief compliance officer fee | | | 522 | |
Payable for legal and audit fees | | | 39,033 | |
Accrued expenses and other liabilities | | | 32,692 | |
| | | | |
Total Liabilities | | | 1,203,691 | |
| | | | |
Net Assets | | $ | 42,494,058 | |
| | | | |
Net Assets Consist of: | | | | |
Paid-in capital | | $ | 44,879,928 | |
Accumulated net investment loss | | | (234,641 | ) |
Accumulated net realized loss on investments and swap contracts | | | (2,314,168 | ) |
Net unrealized appreciation on investments and swap contracts | | | 162,939 | |
| | | | |
Total Net Assets | | $ | 42,494,058 | |
| | | | |
Investments, At Cost | | $ | 30,097,334 | |
| |
Pricing of Shares | | | | |
Investor Class: | | | | |
Net Asset Value, offering and redemption price per share | | | $18.64 | |
Net Assets | | $ | 17,042,269 | |
Shares of beneficial interest outstanding | | | 914,358 | |
Institutional Class: | | | | |
Net Asset Value, offering and redemption price per share | | | $18.86 | |
Net Assets | | $ | 8,898,474 | |
Shares of beneficial interest outstanding | | | 471,926 | |
Class C: | | | | |
Net Asset Value, offering and redemption price per share | | | $18.31 | |
Net Assets | | $ | 2,417,427 | |
Shares of beneficial interest outstanding | | | 131,999 | |
| | | | |
| June 30, 2015 | | 66 | | See Notes to Financial Statements |
Consolidated Statement of Assets and Liabilities (Unaudited)
| | | | |
| | | Forward
Commodity
Long/Short
Strategy
Fund
(continued) | |
Advisor Class: | | | | |
Net Asset Value, offering and redemption price per share | | | $18.77 | |
Net Assets | | $ | 11,059,645 | |
Shares of beneficial interest outstanding | | | 589,257 | |
Class Z: | | | | |
Net Asset Value, offering and redemption price per share | | | $18.86 | |
Net Assets | | $ | 3,076,243 | |
Shares of beneficial interest outstanding | | | 163,152 | |
| | | | |
| See Notes to Financial Statements | | 67 | | June 30, 2015 |
Statement of Operations
For the Six Months Ended June 30, 2015 (Unaudited)
| | | | | | | | | | | | |
| | | Forward
Credit
Analysis
Long/Short
Fund | | | Forward
Dynamic
Income
Fund | | | Forward EM
Corporate
Debt
Fund | |
Investment Income: | | | | | | | | | | | | |
Interest | | $ | 2,780,794 | | | $ | 29,733 | | | $ | 14,509,526 | |
Dividends | | | — | | | | 2,128,831 | | | | — | |
Foreign taxes withheld | | | — | | | | (53,137 | ) | | | — | |
| | | | | | | | | | | | |
Total Investment Income | | | 2,780,794 | | | | 2,105,427 | | | | 14,509,526 | |
| | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | |
Investment advisory fee | | | 652,394 | | | | 198,422 | | | | 1,246,279 | |
Administration fee | | | 39,886 | | | | 16,339 | | | | 101,311 | |
Custodian fee | | | 1,812 | | | | 4,099 | | | | 16,693 | |
Legal and audit fees | | | 39,309 | | | | 17,659 | | | | 55,823 | |
Transfer agent fee | | | 37,835 | | | | 8,181 | | | | 204,826 | |
Trustees’ fees and expenses | | | 9,055 | | | | 4,607 | | | | 26,775 | |
Registration/filing fees | | | 37,531 | | | | 16,638 | | | | 28,809 | |
Reports to shareholder and printing fees | | | 5,004 | | | | 4,652 | | | | 31,104 | |
Recoupment of past waived fees by advisor (Note 3) | | | 58,350 | | | | — | | | | — | |
Distribution and service fees | | | | | | | | | | | | |
Investor Class | | | 164,037 | | | | 1,881 | | | | 617,428 | |
Institutional Class | | | 6,958 | | | | 9,538 | | | | 10,559 | |
Class A | | | 11,619 | | | | 28,912 | | | | — | |
Class C | | | 41,053 | | | | — | | | | 11,002 | |
Advisor Class | | | 4,097 | | | | — | | | | 1,465 | |
Chief compliance officer fee | | | 4,510 | | | | 1,523 | | | | 12,524 | |
ReFlow fees (Note 2) | | | — | | | | — | | | | 403 | |
Interest on loan | | | — | | | | — | | | | 198,610 | |
Other | | | 4,015 | | | | 1,681 | | | | 13,059 | |
| | | | | | | | | | | | |
Total expenses before waiver | | | 1,117,465 | | | | 314,132 | | | | 2,576,670 | |
Less fees waived/reimbursed by investment advisor (Note 3) | | | — | | | | (40,655 | ) | | | — | |
| | | | | | | | | | | | |
Total Net Expenses | | | 1,117,465 | | | | 273,477 | | | | 2,576,670 | |
| | | | | | | | | | | | |
Net Investment Income: | | | 1,663,329 | | | | 1,831,950 | | | | 11,932,856 | |
| | | | | | | | | | | | |
Net realized loss on investments | | | (227,612 | ) | | | (1,293,246 | ) | | | (13,032,443 | ) |
Net realized loss on securities sold short | | | (41,016 | ) | | | — | | | | — | |
Net realized gain/(loss) on futures contracts | | | 627,780 | | | | (957,341 | ) | | | — | |
Net realized loss on swap contracts | | | — | | | | — | | | | (257,722 | ) |
Net realized gain/(loss) on foreign currency | | | — | | | | 20,596 | | | | (11,821 | ) |
Net change in unrealized appreciation/(depreciation) on investments | | | (2,528,404 | ) | | | 379,508 | | | | 5,203,246 | |
Net change in unrealized appreciation/(depreciation) on futures contracts | | | 390,287 | | | | (114,653 | ) | | | — | |
Net change in unrealized appreciation on swap contracts | | | — | | | | — | | | | 278,148 | |
Net change in unrealized appreciation/(depreciation) on translation of assets and liabilities in foreign currency transactions | | | — | | | | (9,584 | ) | | | 13,248 | |
| | | | | | | | | | | | |
Net Realized and Unrealized Loss on Investments, Securities Sold Short, Futures Contracts, Swap Contracts and Foreign Currency Translations | | | (1,778,965 | ) | | | (1,974,720 | ) | | | (7,807,344 | ) |
| | | | | | | | | | | | |
Net Increase/(Decrease) in Net Assets Resulting From Operations | | $ | (115,636 | ) | | $ | (142,770 | ) | | $ | 4,125,512 | |
| | | | | | | | | | | | |
| | | | |
| June 30, 2015 | | 68 | | See Notes to Financial Statements |
Statement of Operations
For the Six Months Ended June 30, 2015 (Unaudited)
| | | | | | | | | | | | |
| | | Forward
Emerging
Markets
Fund | | | Forward
Global
Dividend
Fund | | | Forward
International
Dividend
Fund | |
Investment Income: | | | | | | | | | | | | |
Interest | | $ | 371 | | | $ | 6,895 | | | $ | 885,563 | |
Dividends | | | 252,058 | | | | 314,795 | | | | 11,549,632 | |
Foreign taxes withheld | | | (22,638 | ) | | | (21,460 | ) | | | (897,680 | ) |
| | | | | | | | | | | | |
Total Investment Income | | | 229,791 | | | | 300,230 | | | | 11,537,515 | |
| | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | |
Investment advisory fee | | | 63,595 | | | | 53,673 | | | | 1,222,573 | |
Administration fee | | | 10,956 | | | | 11,400 | | | | 86,188 | |
Custodian fee | | | 5,759 | | | | 2,637 | | | | 48,664 | |
Legal and audit fees | | | 18,590 | | | | 17,470 | | | | 44,249 | |
Transfer agent fee | | | 5,761 | | | | 3,996 | | | | 46,104 | |
Trustees’ fees and expenses | | | 942 | | | | 1,010 | | | | 23,190 | |
Registration/filing fees | | | 17,293 | | | | 17,398 | | | | 38,760 | |
Reports to shareholder and printing fees | | | 3,882 | | | | 1,767 | | | | 15,982 | |
Distribution and service fees | | | | | | | | | | | | |
Investor Class | | | 7,170 | | | | 533 | | | | 218,004 | |
Institutional Class | | | 1,850 | | | | 397 | | | | 24,321 | |
Class A | | | — | | | | 31,803 | | | | 13,339 | |
Class C | | | — | | | | — | | | | 56,184 | |
Advisor Class | | | 564 | | | | — | | | | 35,293 | |
Chief compliance officer fee | | | 416 | | | | 483 | | | | 10,379 | |
ReFlow fees (Note 2) | | | 144 | | | | — | | | | — | |
Interest on loan | | | — | | | | — | | | | 178,726 | |
Other | | | 2,987 | | | | 3,439 | | | | 19,502 | |
| | | | | | | | | | | | |
Total expenses before waiver | | | 139,909 | | | | 146,006 | | | | 2,081,458 | |
Less fees waived/reimbursed by investment advisor (Note 3) | | | (49,164 | ) | | | (50,208 | ) | | | (178,791 | ) |
| | | | | | | | | | | | |
Total Net Expenses | | | 90,745 | | | | 95,798 | | | | 1,902,667 | |
| | | | | | | | | | | | |
Net Investment Income: | | | 139,046 | | | | 204,432 | | | | 9,634,848 | |
| | | | | | | | | | | | |
Net realized loss on investments | | | (234,611 | ) | | | (69,590 | ) | | | (13,908,692 | ) |
Net realized gain on futures contracts | | | 111,782 | | | | — | | | | 963,305 | |
Net realized loss on foreign currency | | | (26,167 | ) | | | (4,795 | ) | | | (188,051 | ) |
Net change in unrealized appreciation on investments | | | 133,658 | | | | 288,344 | | | | 14,361,014 | |
Net change in unrealized depreciation on futures contracts | | | (7,753 | ) | | | — | | | | (109,698 | ) |
Net change in unrealized appreciation/(depreciation) on translation of assets and liabilities in foreign currency transactions | | | 291 | | | | (447 | ) | | | 1,856 | |
| | | | | | | | | | | | |
Net Realized and Unrealized Gain/(Loss) on Investments, Futures Contracts and Foreign Currency Translations | | | (22,800 | ) | | | 213,512 | | | | 1,119,734 | |
| | | | | | | | | | | | |
Net Increase in Net Assets Resulting From Operations | | $ | 116,246 | | | $ | 417,944 | | | $ | 10,754,582 | |
| | | | | | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 69 | | June 30, 2015 |
Statement of Operations
For the Six Months Ended June 30, 2015 (Unaudited)
| | | | | | | | | | | | |
| | | Forward
International
Small
Companies
Fund | | | Forward
Select EM
Dividend
Fund | | | Forward
Small Cap
Equity
Fund | |
Investment Income: | | | | | | | | | | | | |
Interest | | $ | 2,034 | | | $ | 148,544 | | | $ | — | |
Dividends | | | 2,568,783 | | | | 1,705,217 | | | | 102,556 | |
Dividends from affiliated investment company shares | | | — | | | | — | | | | 18 | |
Foreign taxes withheld | | | (270,858 | ) | | | (146,521 | ) | | | — | |
| | | | | | | | | | | | |
Total Investment Income | | | 2,299,959 | | | | 1,707,240 | | | | 102,574 | |
| | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | |
Investment advisory fee | | | 870,110 | | | | 270,253 | | | | 118,012 | |
Administration fee | | | 65,036 | | | | 23,320 | | | | 13,309 | |
Custodian fee | | | 15,832 | | | | 34,887 | | | | 782 | |
Legal and audit fees | | | 40,225 | | | | 20,355 | | | | 9,106 | |
Transfer agent fee | | | 55,310 | | | | 11,027 | | | | 20,920 | |
Trustees’ fees and expenses | | | 13,772 | | | | 3,889 | | | | 2,166 | |
Registration/filing fees | | | 20,076 | | | | 28,938 | | | | 27,358 | |
Reports to shareholder and printing fees | | | 19,749 | | | | 4,744 | | | | 9,701 | |
Distribution and service fees | | | | | | | | | | | | |
Investor Class | | | 61,421 | | | | 61,035 | | | | 42,330 | |
Institutional Class | | | 35,106 | | | | 3,937 | | | | 994 | |
Class C | | | — | | | | 8,393 | | | | — | |
Advisor Class | | | 1,444 | | | | 597 | | | | 1,314 | |
Chief compliance officer fee | | | 5,884 | | | | 1,570 | | | | 931 | |
Interest on loan | | | — | | | | 46,160 | | | | — | |
Other | | | 11,005 | | | | 6,268 | | | | 1,750 | |
| | | | | | | | | | | | |
Total expenses before waiver | | | 1,214,970 | | | | 525,373 | | | | 248,673 | |
Less fees waived/reimbursed by investment advisor (Note 3) | | | (38,063 | ) | | | (76,050 | ) | | | (52,693 | ) |
Affiliated management fee waiver (Note 2) | | | — | | | | — | | | | (139 | ) |
| | | | | | | | | | | | |
Total Net Expenses | | | 1,176,907 | | | | 449,323 | | | | 195,841 | |
| | | | | | | | | | | | |
Net Investment Income/(Loss): | | | 1,123,052 | | | | 1,257,917 | | | | (93,267 | ) |
| | | | | | | | | | | | |
Net realized gain/(loss) on investments | | | 8,715,134 | | | | (4,013,132 | ) | | | 2,638,147 | |
Net realized gain/(loss) on futures contracts | | | — | | | | (57,951 | ) | | | 97,611 | |
Net realized loss on foreign currency | | | (56,110 | ) | | | (138,859 | ) | | | — | |
Net change in unrealized appreciation/(depreciation) on investments | | | 10,935,728 | | | | 2,780,845 | | | | (1,806,434 | ) |
Net change in unrealized depreciation on futures contracts | | | — | | | | (11,445 | ) | | | (20,074 | ) |
Net change in unrealized appreciation/(depreciation) on translation of assets and liabilities in foreign currency transactions | | | 1,375 | | | | (5,541 | ) | | | — | |
| | | | | | | | | | | | |
Net Realized and Unrealized Gain/(Loss) on Investments, Futures Contracts and Foreign Currency Translations | | | 19,596,127 | | | | (1,446,083 | ) | | | 909,250 | |
| | | | | | | | | | | | |
Net Increase/(Decrease) in Net Assets Resulting From Operations | | $ | 20,719,179 | | | $ | (188,166 | ) | | $ | 815,983 | |
| | | | | | | | | | | | |
| | | | |
| June 30, 2015 | | 70 | | See Notes to Financial Statements |
Statement of Operations
For the Six Months Ended June 30, 2015 (Unaudited)
| | | | | | | | |
| | | Forward
Tactical
Enhanced
Fund | | | Forward
Tactical
Growth
Fund | |
Investment Income: | | | | | | | | |
Interest | | $ | — | | | $ | 103,007 | |
Dividends | | | 6,783 | | | | 4,382,379 | |
| | | | | | | | |
Total Investment Income | | | 6,783 | | | | 4,485,386 | |
| | | | | | | | |
Expenses: | | | | | | | | |
Investment advisory fee | | | 146,782 | | | | 4,375,417 | |
Administration fee | | | 11,636 | | | | 186,126 | |
Custodian fee | | | 1,079 | | | | 5,987 | |
Legal and audit fees | | | 14,930 | | | | 91,372 | |
Transfer agent fee | | | 20,664 | | | | 257,501 | |
Trustees’ fees and expenses | | | 1,868 | | | | 55,939 | |
Registration/filing fees | | | 23,725 | | | | 44,205 | |
Reports to shareholder and printing fees | | | 3,537 | | | | 67,343 | |
Distribution and service fees | | | | | | | | |
Investor Class | | | 24,184 | | | | 246,394 | |
Institutional Class | | | 2,607 | | | | 11,464 | |
Class A | | | 1,944 | | | | 154,274 | |
Class C | | | 6,613 | | | | 378,777 | |
Advisor Class | | | 490 | | | | 229,792 | |
Chief compliance officer fee | | | 1,024 | | | | 27,185 | |
Other | | | 3,961 | | | | 32,376 | |
| | | | | | | | |
Total expenses before waiver | | | 265,044 | | | | 6,164,152 | |
Less fees waived/reimbursed by investment advisor (Note 3) | | | (58,173 | ) | | | — | |
| | | | | | | | |
Total Net Expenses | | | 206,871 | | | | 6,164,152 | |
| | | | | | | | |
Net Investment Loss: | | | (200,088 | ) | | | (1,678,766 | ) |
| | | | | | | | |
Net realized gain/(loss) on investments | | | 60,560 | | | | (1,938,886 | ) |
Net realized gain on written option contracts | | | — | | | | 291,250 | |
Net realized loss on futures contracts | | | (706,589 | ) | | | — | |
Net change in unrealized depreciation on investments | | | (514,689 | ) | | | (12,220,104 | ) |
Net change in unrealized appreciation on written option contracts | | | — | | | | 1,193,750 | |
Net change in unrealized depreciation on futures contracts | | | (316,389 | ) | | | — | |
| | | | | | | | |
Net Realized and Unrealized Loss on Investments, Written Option Contracts and Futures Contracts | | | (1,477,107 | ) | | | (12,673,990 | ) |
| | | | | | | | |
Net Decrease in Net Assets Resulting From Operations | | $ | (1,677,195 | ) | | $ | (14,352,756 | ) |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 71 | | June 30, 2015 |
Consolidated Statement of Operations
For the Six Months Ended June 30, 2015 (Unaudited)
| | | | |
| | | Forward
Commodity
Long/Short
Strategy
Fund | |
Investment Income: | | | | |
Interest | | $ | 260,910 | |
| | | | |
Total Investment Income | | | 260,910 | |
| | | | |
Expenses: | | | | |
Investment advisory fee | | | 255,397 | |
Administration fee | | | 60,643 | |
Custodian fee | | | 1,397 | |
Legal and audit fees | | | 43,304 | |
Transfer agent fee | | | 29,198 | |
Trustees’ fees and expenses | | | 3,746 | |
Registration/filing fees | | | 23,510 | |
Reports to shareholder and printing fees | | | 11,351 | |
Distribution and service fees | | | | |
Investor Class | | | 35,704 | |
Institutional Class | | | 3,487 | |
Class C | | | 14,964 | |
Advisor Class | | | 6,429 | |
Chief compliance officer fee | | | 2,005 | |
Other | | | 4,416 | |
| | | | |
Total expenses | | | 495,551 | |
| | | | |
Net Investment Loss: | | | (234,641 | ) |
| | | | |
Net realized gain on investments | | | 30,399 | |
Net realized loss on swap contracts | | | (1,778,252 | ) |
Net change in unrealized depreciation on investments | | | (15,153 | ) |
Net change in unrealized depreciation on swap contracts | | | (4,358,560 | ) |
| | | | |
Net Realized and Unrealized Loss on Investments and Swap Contracts | | | (6,121,566 | ) |
| | | | |
Net Decrease in Net Assets Resulting From Operations | | $ | (6,356,207 | ) |
| | | | |
| | | | |
| June 30, 2015 | | 72 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Credit Analysis Long/Short Fund | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Operations: | | | | | | | | |
Net investment income | | $ | 1,663,329 | | | $ | 2,760,408 | |
Net realized gain/(loss) on investments | | | (227,612 | ) | | | 2,851,219 | |
Net realized loss on securities sold short | | | (41,016 | ) | | | — | |
Net realized gain/(loss) on futures contracts | | | 627,780 | | | | (1,024,852 | ) |
Net realized gain on swap contracts | | | — | | | | 16,947 | |
Net change in unrealized appreciation/(depreciation) on investments and futures contracts | | | (2,138,117 | ) | | | 5,588,820 | |
| | | | | | | | |
Net increase/(decrease) in net assets resulting from operations | | | (115,636 | ) | | | 10,192,542 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (1,013,577 | ) | | | (1,557,458 | ) |
Institutional Class | | | (419,322 | ) | | | (605,208 | ) |
Class A | | | (58,532 | ) | | | (110,214 | ) |
Class C | | | (76,186 | ) | | | (214,352 | ) |
Advisor Class | | | (109,618 | ) | | | (293,274 | ) |
| | | | | | | | |
Total distributions | | | (1,677,235 | ) | | | (2,780,506 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 53,735,606 | | | | 86,061,020 | |
Issued to shareholders in reinvestment of distributions | | | 567,782 | | | | 1,115,804 | |
Cost of shares redeemed | | | (46,666,124 | ) | | | (87,770,451 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | 7,637,264 | | | | (593,627 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 27,566,406 | | | | 39,336,855 | |
Issued to shareholders in reinvestment of distributions | | | 293,362 | | | | 474,598 | |
Cost of shares redeemed | | | (27,340,624 | ) | | | (65,881,004 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | 519,144 | | | | (26,069,551 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | 451,695 | | | | 2,054,487 | |
Issued to shareholders in reinvestment of distributions | | | 46,491 | | | | 64,227 | |
Cost of shares redeemed | | | (305,424 | ) | | | (2,743,250 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | 192,762 | | | | (624,536 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 368,727 | | | | 3,843,320 | |
Issued to shareholders in reinvestment of distributions | | | 46,673 | | | | 141,844 | |
Cost of shares redeemed | | | (3,754,041 | ) | | | (5,898,377 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (3,338,641 | ) | | | (1,913,213 | ) |
| | | | | | | | |
Advisor Class | | | | | | | | |
Proceeds from sale of shares | | | 1,629,219 | | | | 11,050,560 | |
Issued to shareholders in reinvestment of distributions | | | 40,010 | | | | 116,841 | |
Cost of shares redeemed | | | (5,675,746 | ) | | | (13,434,525 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (4,006,517 | ) | | | (2,267,124 | ) |
| | | | | | | | |
Net decrease in net assets | | $ | (788,859 | ) | | $ | (24,056,015 | ) |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 73 | | June 30, 2015 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Credit Analysis Long/Short Fund
(continued) | |
| | | Six Months Ended June 30, 2015 (Unaudited) | | | Year Ended
December 31, 2014 | |
Net Assets: | | | | | | | | |
Beginning of period | | | 102,081,009 | | | | 126,137,024 | |
| | | | | | | | |
End of period (including accumulated net investment income of $39,173 and $53,079, respectively) | | $ | 101,292,150 | | | $ | 102,081,009 | |
| | | | | | | | |
Changes in Shares Outstanding: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 7,119,191 | | | | 11,622,870 | |
Distributions reinvested | | | 76,019 | | | | 150,754 | |
Redeemed | | | (6,218,294 | ) | | | (11,804,674 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | 976,916 | | | | (31,050 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 3,675,106 | | | | 5,402,538 | |
Distributions reinvested | | | 39,484 | | | | 64,806 | |
Redeemed | | | (3,671,161 | ) | | | (9,041,668 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | 43,429 | | | | (3,574,324 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | 60,266 | | | | 279,881 | |
Distributions reinvested | | | 6,256 | | | | 8,689 | |
Redeemed | | | (40,834 | ) | | | (372,909 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | 25,688 | | | | (84,339 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 48,829 | | | | 517,770 | |
Distributions reinvested | | | 6,239 | | | | 19,184 | |
Redeemed | | | (499,493 | ) | | | (795,490 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (444,425 | ) | | | (258,536 | ) |
| | | | | | | | |
Advisor Class | | | | | | | | |
Sold | | | 217,635 | | | | 1,501,516 | |
Distributions reinvested | | | 5,396 | | | | 15,859 | |
Redeemed | | | (759,620 | ) | | | (1,840,966 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (536,589 | ) | | | (323,591 | ) |
| | | | | | | | |
| | | | |
| June 30, 2015 | | 74 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Dynamic Income Fund | |
| | | Six Months Ended
June 30, 2015
(Unaudited)(a) | | | Year Ended
December 31, 2014 | |
Operations: | | | | | | | | |
Net investment income | | $ | 1,831,950 | | | $ | 779,330 | |
Net realized gain/(loss) on investments | | | (1,293,246 | ) | | | 110,860 | |
Net realized loss on futures contracts | | | (957,341 | ) | | | (123,738 | ) |
Net realized gain/(loss) on foreign currency transactions | | | 20,596 | | | | (34,270 | ) |
Net change in unrealized appreciation on investments, futures contracts and translation of assets and liabilities in foreign currencies | | | 255,271 | | | | 183,763 | |
| | | | | | | | |
Net increase/(decrease) in net assets resulting from operations | | | (142,770 | ) | | | 915,945 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (33,446 | ) | | | — | |
Institutional Class | | | (1,365,228 | ) | | | (652,508 | ) |
Class A | | | (359,027 | ) | | | (82,250 | ) |
From net realized gains on investments | | | | | | | | |
Institutional Class | | | — | | | | (170,152 | ) |
Class A | | | — | | | | (9,847 | ) |
| | | | | | | | |
Total distributions | | | (1,757,701 | ) | | | (914,757 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 1,167,084 | | | | — | |
Issued to shareholders in reinvestment of distributions | | | 1,880 | | | | — | |
Cost of shares redeemed | | | (19,323 | ) | | | — | |
| | | | | | | | |
Net increase from share transactions | | | 1,149,641 | | | | — | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 13,671,327 | | | | 27,218,053 | |
Issued to shareholders in reinvestment of distributions | | | 1,224,202 | | | | 642,296 | |
Cost of shares redeemed | | | (6,840,434 | ) | | | (673,140 | ) |
| | | | | | | | |
Net increase from share transactions | | | 8,055,095 | | | | 27,187,209 | |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | 5,006,592 | | | | 8,267,473 | |
Issued to shareholders in reinvestment of distributions | | | 244,275 | | | | 70,854 | |
Cost of shares redeemed | | | (1,011,551 | ) | | | (87,865 | ) |
| | | | | | | | |
Net increase from share transactions | | | 4,239,316 | | | | 8,250,462 | |
| | | | | | | | |
Net increase in net assets | | $ | 11,543,581 | | | $ | 35,438,859 | |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 38,649,700 | | | | 3,210,841 | |
| | | | | | | | |
End of period (including accumulated net investment income of $98,955 and $24,706) | | $ | 50,193,281 | | | $ | 38,649,700 | |
| | | | | | | | |
Changes in Shares Outstanding: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 44,030 | | | | — | |
Distributions reinvested | | | 72 | | | | — | |
Redeemed | | | (745 | ) | | | — | |
| | | | | | | | |
Net increase in shares outstanding | | | 43,357 | | | | — | |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 75 | | June 30, 2015 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Dynamic Income Fund (continued) | |
| | | Six Months Ended
June 30, 2015
(Unaudited)(a) | | | Year Ended
December 31, 2014 | |
Institutional Class | | | | | | | | |
Sold | | | 517,345 | | | | 1,016,932 | |
Distributions reinvested | | | 46,976 | | | | 24,192 | |
Redeemed | | | (263,155 | ) | | | (25,221 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 301,166 | | | | 1,015,903 | |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | 191,491 | | | | 311,536 | |
Distributions reinvested | | | 9,396 | | | | 2,681 | |
Redeemed | | | (38,803 | ) | | | (3,334 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 162,084 | | | | 310,883 | |
| | | | | | | | |
(a) The Forward Dynamic Income Fund began offering Investor Class shares on January 2, 2015.
| | | | |
| June 30, 2015 | | 76 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward EM Corporate Debt Fund | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014(a) | |
Operations: | | | | | | | | |
Net investment income | | $ | 11,932,856 | | | $ | 27,782,999 | |
Net realized loss on investments | | | (13,032,443 | ) | | | (12,627,165 | ) |
Net realized loss on futures contracts | | | — | | | | (579,594 | ) |
Net realized gain/(loss) on swap contracts | | | (257,722 | ) | | | 411,591 | |
Net realized loss on foreign currency transactions | | | (11,821 | ) | | | (4,158,665 | ) |
Net change in unrealized appreciation/(depreciation) on investments, swap contracts and translation of assets and liabilities in foreign currencies | | | 5,494,642 | | | | (16,536,629 | ) |
| | | | | | | | |
Net increase/(decrease) in net assets resulting from operations | | | 4,125,512 | | | | (5,707,463 | ) |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (9,527,716 | ) | | | (21,436,611 | ) |
Institutional Class | | | (1,498,988 | ) | | | (2,696,292 | ) |
Class C | | | (68,597 | ) | | | (126,541 | ) |
Advisor Class | | | (101,916 | ) | | | (154,381 | ) |
| | | | | | | | |
Total distributions | | | (11,197,217 | ) | | | (24,413,825 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 47,105,633 | | | | 163,039,100 | |
Issued to shareholders in reinvestment of distributions | | | 7,166,045 | | | | 15,415,530 | |
Cost of shares redeemed | | | (109,956,836 | ) | | | (109,577,152 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (55,685,158 | ) | | | 68,877,478 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 11,390,327 | | | | 39,659,809 | |
Issued to shareholders in reinvestment of distributions | | | 966,364 | | | | 1,450,759 | |
Cost of shares redeemed | | | (10,367,831 | ) | | | (31,095,431 | ) |
| | | | | | | | |
Net increase from share transactions | | | 1,988,860 | | | | 10,015,137 | |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 343,800 | | | | 677,485 | |
Issued to shareholders in reinvestment of distributions | | | 66,372 | | | | 94,021 | |
Cost of shares redeemed | | | (147,322 | ) | | | (360,415 | ) |
| | | | | | | | |
Net increase from share transactions | | | 262,850 | | | | 411,091 | |
| | | | | | | | |
Advisor Class | | | | | | | | |
Proceeds from sale of shares | | | 41,891 | | | | 3,154,481 | |
Issued to shareholders in reinvestment of distributions | | | 101,651 | | | | 103,667 | |
Cost of shares redeemed | | | (53,004 | ) | | | (113,565 | ) |
| | | | | | | | |
Net increase from share transactions | | | 90,538 | | | | 3,144,583 | |
| | | | | | | | |
Net increase/(decrease) in net assets | | $ | (60,414,615 | ) | | $ | 52,327,001 | |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 393,393,319 | | | | 341,066,318 | |
| | | | | | | | |
End of period (including accumulated net investment income/(loss) of $542,095 and $(193,544), respectively) | | $ | 332,978,704 | | | $ | 393,393,319 | |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 77 | | June 30, 2015 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward EM Corporate Debt Fund (continued) | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014(a) | |
Changes in Shares Outstanding: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 5,415,951 | | | | 17,345,249 | |
Distributions reinvested | | | 834,318 | | | | 1,676,957 | |
Redeemed | | | (12,625,345 | ) | | | (11,737,050 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (6,375,076 | ) | | | 7,285,156 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 1,317,777 | | | | 4,221,193 | |
Distributions reinvested | | | 113,296 | | | | 159,235 | |
Redeemed | | | (1,196,853 | ) | | | (3,345,224 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 234,220 | | | | 1,035,204 | |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 39,353 | | | | 71,638 | |
Distributions reinvested | | | 7,695 | | | | 10,241 | |
Redeemed | | | (16,948 | ) | | | (38,558 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 30,100 | | | | 43,321 | |
| | | | | | | | |
Advisor Class | | | | | | | | |
Sold | | | 4,833 | | | | 340,131 | |
Distributions reinvested | | | 11,939 | | | | 11,585 | |
Redeemed | | | (6,122 | ) | | | (12,766 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 10,650 | | | | 338,950 | |
| | | | | | | | |
(a) The Forward EM Corporate Debt Fund began offering Advisor Class shares on May 1, 2014.
| | | | |
| June 30, 2015 | | 78 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Emerging Markets Fund | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Operations: | | | | | | | | |
Net investment income | | $ | 139,046 | | | $ | 179,475 | |
Net realized gain/(loss) on investments | | | (234,611 | ) | | | 419,628 | |
Net realized gain on futures contracts | | | 111,782 | | | | 17,658 | |
Net realized loss on foreign currency transactions | | | (26,167 | ) | | | (254,950 | ) |
Net change in unrealized appreciation/(depreciation) on investments, futures contracts and translation of assets and liabilities in foreign currencies | | | 126,196 | | | | (551,606 | ) |
| | | | | | | | |
Net increase/(decrease) in net assets resulting from operations | | | 116,246 | | | | (189,795 | ) |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | — | | | | (69,487 | ) |
Institutional Class | | | — | | | | (140,997 | ) |
Advisor Class | | | — | | | | (29,516 | ) |
| | | | | | | | |
Total distributions | | | — | | | | (240,000 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 288,933 | | | | 3,917,145 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 65,114 | |
Cost of shares redeemed | | | (811,281 | ) | | | (4,960,467 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (522,348 | ) | | | (978,208 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 2,567,882 | | | | 2,971,690 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 74,273 | |
Cost of shares redeemed | | | (855,671 | ) | | | (3,939,851 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | 1,712,211 | | | | (893,888 | ) |
| | | | | | | | |
Advisor Class | | | | | | | | |
Proceeds from sale of shares | | | 146,665 | | | | 953,209 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 28,724 | |
Cost of shares redeemed | | | (802,152 | ) | | | (629,960 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (655,487 | ) | | | 351,973 | |
| | | | | | | | |
Net increase/(decrease) in net assets | | $ | 650,622 | | | $ | (1,949,918 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 11,232,894 | | | | 13,182,812 | |
| | | | | | | | |
End of period (including accumulated net investment income/(loss) of $67,348 and $(71,773), respectively) | | $ | 11,883,516 | | | $ | 11,232,894 | |
| | | | | | | | |
Changes in Shares Outstanding: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 28,060 | | | | 351,561 | |
Distributions reinvested | | | — | | | | 6,409 | |
Redeemed | | | (77,461 | ) | | | (447,612 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (49,401 | ) | | | (89,642 | ) |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 79 | | June 30, 2015 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Emerging Markets Fund (continued) | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Institutional Class | | | | | | | | |
Sold | | | 246,836 | | | | 263,124 | |
Distributions reinvested | | | — | | | | 7,218 | |
Redeemed | | | (81,384 | ) | | | (361,387 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | 165,452 | | | | (91,045 | ) |
| | | | | | | | |
Advisor Class | | | | | | | | |
Sold | | | 13,632 | | | | 84,098 | |
Distributions reinvested | | | — | | | | 2,712 | |
Redeemed | | | (74,143 | ) | | | (55,025 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (60,511 | ) | | | 31,785 | |
| | | | | | | | |
| | | | |
| June 30, 2015 | | 80 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Global Dividend Fund | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Operations: | | | | | | | | |
Net investment income | | $ | 204,432 | | | $ | 661,513 | |
Net realized gain/(loss) on investments | | | (69,590 | ) | | | 1,054,576 | |
Net realized loss on foreign currency transactions | | | (4,795 | ) | | | (58,928 | ) |
Net change in unrealized appreciation/(depreciation) on investments and translation of assets and liabilities in foreign currencies | | | 287,897 | | | | (1,672,942 | ) |
| | | | | | | | |
Net increase/(decrease) in net assets resulting from operations | | | 417,944 | | | | (15,781 | ) |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (3,912 | ) | | | (17,291 | ) |
Institutional Class | | | (24,510 | ) | | | (208,470 | ) |
Class A | | | (164,380 | ) | | | (450,179 | ) |
From net realized gains on investments | | | | | | | | |
Investor Class | | | — | | | | (9,462 | ) |
Institutional Class | | | — | | | | (47,557 | ) |
Class A | | | — | | | | (261,321 | ) |
| | | | | | | | |
Total distributions | | | (192,802 | ) | | | (994,280 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 61,151 | | | | 27,130 | |
Issued to shareholders in reinvestment of distributions | | | 3,761 | | | | 25,353 | |
Cost of shares redeemed | | | (243,943 | ) | | | (51,458 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (179,031 | ) | | | 1,025 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 35,794 | | | | 2,887,819 | |
Issued to shareholders in reinvestment of distributions | | | 4,156 | | | | 75,956 | |
Cost of shares redeemed | | | (579,370 | ) | | | (10,289,003 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (539,420 | ) | | | (7,325,228 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | 634,158 | | | | 1,447,016 | |
Issued to shareholders in reinvestment of distributions | | | 162,275 | | | | 700,594 | |
Cost of shares redeemed | | | (1,565,771 | ) | | | (1,482,824 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (769,338 | ) | | | 664,786 | |
| | | | | | | | |
Net decrease in net assets | | $ | (1,262,647 | ) | | $ | (7,669,478 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 13,812,155 | | | | 21,481,633 | |
| | | | | | | | |
End of period (including accumulated net investment loss of $(21,834) and $(33,464), respectively) | | $ | 12,549,508 | | | $ | 13,812,155 | |
| | | | | | | | |
Changes in Shares Outstanding: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 5,225 | | | | 2,280 | |
Distributions reinvested | | | 322 | | | | 2,166 | |
Redeemed | | | (21,821 | ) | | | (4,377 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (16,274 | ) | | | 69 | |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 81 | | June 30, 2015 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Global Dividend Fund (continued) | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Institutional Class | | | | | | | | |
Sold | | | 3,211 | | | | 242,930 | |
Distributions reinvested | | | 361 | | | | 6,490 | |
Redeemed | | | (50,780 | ) | | | (865,978 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (47,208 | ) | | | (616,558 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | 54,690 | | | | 123,310 | |
Distributions reinvested | | | 13,883 | | | | 59,796 | |
Redeemed | | | (133,076 | ) | | | (125,668 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (64,503 | ) | | | 57,438 | |
| | | | | | | | |
| | | | |
| June 30, 2015 | | 82 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward International Dividend Fund | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Operations: | | | | | | | | |
Net investment income | | $ | 9,634,848 | | | $ | 16,585,628 | |
Net realized gain/(loss) on investments | | | (2,772,730 | ) | | | 2,315,877 | |
Net realized gain/(loss) on futures contracts | | | 963,305 | | | | (267,134 | ) |
Net realized loss on foreign currency transactions | | | (11,324,013 | ) | | | (3,528,901 | ) |
Long-term capital gain distributions from other investment companies | | | — | | | | 32,499 | |
Net change in unrealized appreciation/(depreciation) on investments, futures contracts and translation of assets and liabilities in foreign currencies | | | 14,253,172 | | | | (33,827,328 | ) |
| | | | | | | | |
Net increase/(decrease) in net assets resulting from operations | | | 10,754,582 | | | | (18,689,359 | ) |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (2,675,434 | ) | | | (6,652,695 | ) |
Institutional Class | | | (3,193,001 | ) | | | (6,383,837 | ) |
Class A | | | (120,082 | ) | | | (185,016 | ) |
Class C | | | (250,431 | ) | | | (457,480 | ) |
Advisor Class | | | (2,224,760 | ) | | | (5,550,878 | ) |
| | | | | | | | |
Total distributions | | | (8,463,708 | ) | | | (19,229,906 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 65,937,950 | | | | 130,715,014 | |
Issued to shareholders in reinvestment of distributions | | | 1,033,939 | | | | 2,406,622 | |
Cost of shares redeemed | | | (92,476,716 | ) | | | (87,147,909 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (25,504,827 | ) | | | 45,973,727 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 48,646,783 | | | | 63,362,256 | |
Issued to shareholders in reinvestment of distributions | | | 1,420,064 | | | | 2,452,661 | |
Cost of shares redeemed | | | (30,424,529 | ) | | | (62,752,048 | ) |
| | | | | | | | |
Net increase from share transactions | | | 19,642,318 | | | | 3,062,869 | |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | 1,767,892 | | | | 3,416,746 | |
Issued to shareholders in reinvestment of distributions | | | 118,751 | | | | 143,403 | |
Cost of shares redeemed | | | (987,802 | ) | | | (1,760,635 | ) |
| | | | | | | | |
Net increase from share transactions | | | 898,841 | | | | 1,799,514 | |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 2,241,078 | | | | 5,791,018 | |
Issued to shareholders in reinvestment of distributions | | | 226,423 | | | | 416,401 | |
Cost of shares redeemed | | | (1,233,376 | ) | | | (2,471,639 | ) |
| | | | | | | | |
Net increase from share transactions | | | 1,234,125 | | | | 3,735,780 | |
| | | | | | | | |
Advisor Class | | | | | | | | |
Proceeds from sale of shares | | | 12,958,417 | | | | 61,631,272 | |
Issued to shareholders in reinvestment of distributions | | | 2,198,283 | | | | 4,976,976 | |
Cost of shares redeemed | | | (48,641,857 | ) | | | (48,522,210 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (33,485,157 | ) | | | 18,086,038 | |
| | | | | | | | |
Net increase/(decrease) in net assets | | $ | (34,923,826 | ) | | $ | 34,738,663 | |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 83 | | June 30, 2015 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward International Dividend Fund (continued) | |
| | | Six Months Ended June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Net Assets: | | | | | | | | |
Beginning of period | | | 312,772,397 | | | | 278,033,734 | |
| | | | | | | | |
End of period (including accumulated net investment loss of $(2,394,167) and $(3,565,307), respectively) | | $ | 277,848,571 | | | $ | 312,772,397 | |
| | | | | | | | |
Changes in Shares Outstanding: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 7,252,056 | | | | 13,724,759 | |
Distributions reinvested | | | 113,148 | | | | 255,825 | |
Redeemed | | | (10,360,897 | ) | | | (9,233,398 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (2,995,693 | ) | | | 4,747,186 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 6,497,182 | | | | 7,906,679 | |
Distributions reinvested | | | 188,260 | | | | 314,434 | |
Redeemed | | | (4,086,442 | ) | | | (7,866,317 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 2,599,000 | | | | 354,796 | |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | 195,138 | | | | 357,050 | |
Distributions reinvested | | | 12,986 | | | | 15,451 | |
Redeemed | | | (108,365 | ) | | | (188,316 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 99,759 | | | | 184,185 | |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 248,875 | | | | 608,675 | |
Distributions reinvested | | | 24,809 | | | | 44,488 | |
Redeemed | | | (137,661 | ) | | | (261,891 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 136,023 | | | | 391,272 | |
| | | | | | | | |
Advisor Class | | | | | | | | |
Sold | | | 1,737,524 | | | | 7,718,524 | |
Distributions reinvested | | | 291,219 | | | | 634,196 | |
Redeemed | | | (6,493,682 | ) | | | (6,311,992 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (4,464,939 | ) | | | 2,040,728 | |
| | | | | | | | |
| | | | |
| June 30, 2015 | | 84 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward International Small Companies Fund | |
| | | Six Months Ended June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Operations: | | | | | | | | |
Net investment income | | $ | 1,123,052 | | | $ | 1,639,513 | |
Net realized gain on investments | | | 8,715,134 | | | | 20,125,057 | |
Net realized loss on foreign currency transactions | | | (56,110 | ) | | | (4,341,018 | ) |
Net change in unrealized appreciation/(depreciation) on investments and translation of assets and liabilities in foreign currencies | | | 10,937,103 | | | | (33,688,642 | ) |
| | | | | | | | |
Net increase/(decrease) in net assets resulting from operations | | | 20,719,179 | | | | (16,265,090 | ) |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | — | | | | (82,341 | ) |
Institutional Class | | | — | | | | (1,020,164 | ) |
Advisor Class | | | — | | | | (47,499 | ) |
| | | | | | | | |
Total distributions | | | — | | | | (1,150,004 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 9,168,013 | | | | 4,624,066 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 80,474 | |
Cost of shares redeemed | | | (5,758,259 | ) | | | (13,914,899 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | 3,409,754 | | | | (9,210,359 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 11,516,725 | | | | 43,921,914 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 870,756 | |
Cost of shares redeemed | | | (17,676,641 | ) | | | (63,000,266 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (6,159,916 | ) | | | (18,207,596 | ) |
| | | | | | | | |
Advisor Class | | | | | | | | |
Proceeds from sale of shares | | | 453,990 | | | | 6,089,500 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 47,496 | |
Cost of shares redeemed | | | (261,810 | ) | | | (6,154,601 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | 192,180 | | | | (17,605 | ) |
| | | | | | | | |
Net increase/(decrease) in net assets | | $ | 18,161,197 | | | $ | (44,850,654 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 163,572,690 | | | | 208,423,344 | |
| | | | | | | | |
End of period (including accumulated net investment loss of $(798,025) and $(1,921,077), respectively) | | $ | 181,733,887 | | | $ | 163,572,690 | |
| | | | | | | | |
Changes in Shares Outstanding: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 537,051 | | | | 275,203 | |
Distributions reinvested | | | — | | | | 5,026 | |
Redeemed | | | (337,682 | ) | | | (808,499 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | 199,369 | | | | (528,270 | ) |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 85 | | June 30, 2015 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward International Small Companies Fund
(continued) | |
| | | Six Months Ended June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Institutional Class | | | | | | | | |
Sold | | | 667,841 | | | | 2,615,148 | |
Distributions reinvested | | | — | | | | 54,490 | |
Redeemed | | | (1,031,749 | ) | | | (3,776,730 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (363,908 | ) | | | (1,107,092 | ) |
| | | | | | | | |
Advisor Class | | | | | | | | |
Sold | | | 26,522 | | | | 346,274 | |
Distributions reinvested | | | — | | | | 2,971 | |
Redeemed | | | (14,792 | ) | | | (379,800 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | 11,730 | | | | (30,555 | ) |
| | | | | | | | |
| | | | |
| June 30, 2015 | | 86 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Select EM Dividend Fund | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Operations: | | | | | | | | |
Net investment income | | $ | 1,257,917 | | | $ | 4,335,431 | |
Net realized loss on investments | | | (4,013,132 | ) | | | (6,065,904 | ) |
Net realized gain/(loss) on futures contracts | | | (57,951 | ) | | | 1,534,726 | |
Net realized loss on foreign currency transactions | | | (138,859 | ) | | | (3,199,607 | ) |
Long-term capital gain distributions from other investment companies | | | — | | | | 4,075 | |
Net change in unrealized appreciation/(depreciation) on investments, futures contracts and translation of assets and liabilities in foreign currencies | | | 2,763,859 | | | | (4,930,764 | ) |
| | | | | | | | |
Net decrease in net assets resulting from operations | | | (188,166 | ) | | | (8,322,043 | ) |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (554,590 | ) | | | (2,471,980 | ) |
Institutional Class | | | (269,938 | ) | | | (1,386,139 | ) |
Class C | | | (28,561 | ) | | | (76,859 | ) |
Advisor Class | | | (23,926 | ) | | | (66,885 | ) |
| | | | | | | | |
Total distributions | | | (877,015 | ) | | | (4,001,863 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 26,941,968 | | | | 127,525,283 | |
Issued to shareholders in reinvestment of distributions | | | 230,332 | | | | 855,176 | |
Cost of shares redeemed | | | (13,892,815 | ) | | | (115,315,409 | ) |
| | | | | | | | |
Net increase from share transactions | | | 13,279,485 | | | | 13,065,050 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 10,702,006 | | | | 32,355,337 | |
Issued to shareholders in reinvestment of distributions | | | 45,616 | | | | 457,394 | |
Cost of shares redeemed | | | (12,833,750 | ) | | | (32,402,420 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (2,086,128 | ) | | | 410,311 | |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 295,312 | | | | 567,300 | |
Issued to shareholders in reinvestment of distributions | | | 26,195 | | | | 54,666 | |
Cost of shares redeemed | | | (127,484 | ) | | | (310,758 | ) |
| | | | | | | | |
Net increase from share transactions | | | 194,023 | | | | 311,208 | |
| | | | | | | | |
Advisor Class | | | | | | | | |
Proceeds from sale of shares | | | 90,711 | | | | 436,901 | |
Issued to shareholders in reinvestment of distributions | | | 23,926 | | | | 46,185 | |
Cost of shares redeemed | | | (13,579 | ) | | | (217,841 | ) |
| | | | | | | | |
Net increase from share transactions | | | 101,058 | | | | 265,245 | |
| | | | | | | | |
Net increase in net assets | | $ | 10,423,257 | | | $ | 1,727,908 | |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 49,960,511 | | | | 48,232,603 | |
| | | | | | | | |
End of period (including accumulated net investment income/(loss) of $225,885 and $(155,017), respectively) | | $ | 60,383,768 | | | $ | 49,960,511 | |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 87 | | June 30, 2015 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Select EM Dividend Fund (continued) | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Changes in Shares Outstanding: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 1,348,600 | | | | 5,535,017 | |
Distributions reinvested | | | 11,682 | | | | 38,872 | |
Redeemed | | | (700,339 | ) | | | (5,186,162 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 659,943 | | | | 387,727 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 535,763 | | | | 1,410,621 | |
Distributions reinvested | | | 2,310 | | | | 20,868 | |
Redeemed | | | (645,517 | ) | | | (1,461,484 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (107,444 | ) | | | (29,995 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 14,997 | | | | 25,465 | |
Distributions reinvested | | | 1,333 | | | | 2,541 | |
Redeemed | | | (6,281 | ) | | | (14,536 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 10,049 | | | | 13,470 | |
| | | | | | | | |
Advisor Class | | | | | | | | |
Sold | | | 4,511 | | | | 19,419 | |
Distributions reinvested | | | 1,213 | | | | 2,148 | |
Redeemed | | | (675 | ) | | | (9,714 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 5,049 | | | | 11,853 | |
| | | | | | | | |
| | | | |
| June 30, 2015 | | 88 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Small Cap Equity Fund | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Operations: | | | | | | | | |
Net investment loss | | $ | (93,267 | ) | | $ | (181,576 | ) |
Net realized gain on investments | | | 2,638,147 | | | | 4,238,152 | |
Net realized gain on futures contracts | | | 97,611 | | | | 251,867 | |
Net change in unrealized depreciation on investments and futures contracts | | | (1,826,508 | ) | | | (3,894,380 | ) |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 815,983 | | | | 414,063 | |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 105,381 | | | | 862,137 | |
Cost of shares redeemed | | | (2,140,137 | ) | | | (5,430,649 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (2,034,756 | ) | | | (4,568,512 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 1,043,782 | | | | 739,186 | |
Cost of shares redeemed | | | (1,650,699 | ) | | | (3,327,739 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (606,917 | ) | | | (2,588,553 | ) |
| | | | | | | | |
Advisor Class | | | | | | | | |
Proceeds from sale of shares | | | 152,380 | | | | 370,971 | |
Cost of shares redeemed | | | (416,956 | ) | | | (759,516 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (264,576 | ) | | | (388,545 | ) |
| | | | | | | | |
Net decrease in net assets | | $ | (2,090,266 | ) | | $ | (7,131,547 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 28,968,049 | | | | 36,099,596 | |
| | | | | | | | |
End of period (including accumulated net investment loss of $(93,267) and $0, respectively) | | $ | 26,877,783 | | | $ | 28,968,049 | |
| | | | | | | | |
Changes in Shares Outstanding: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 4,692 | | | | 38,662 | |
Redeemed | | | (94,667 | ) | | | (247,826 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (89,975 | ) | | | (209,164 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 43,139 | | | | 31,477 | |
Redeemed | | | (69,024 | ) | | | (143,112 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (25,885 | ) | | | (111,635 | ) |
| | | | | | | | |
Advisor Class | | | | | | | | |
Sold | | | 6,355 | | | | 16,281 | |
Redeemed | | | (17,579 | ) | | | (32,983 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (11,224 | ) | | | (16,702 | ) |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 89 | | June 30, 2015 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Tactical Enhanced Fund | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Operations: | | | | | | | | |
Net investment loss | | $ | (200,088 | ) | | $ | (525,761 | ) |
Net realized gain on investments | | | 60,560 | | | | 1,470,964 | |
Net realized loss on futures contracts | | | (706,589 | ) | | | (409,557 | ) |
Net change in unrealized appreciation/(depreciation) on investments and futures contracts | | | (831,078 | ) | | | 377,576 | |
| | | | | | | | |
Net increase/(decrease) in net assets resulting from operations | | | (1,677,195 | ) | | | 913,222 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net realized gains on investments | | | | | | | | |
Investor Class | | | — | | | | (992,106 | ) |
Institutional Class | | | — | | | | (1,898,632 | ) |
Class A | | | — | | | | (63,719 | ) |
Class C | | | — | | | | (121,909 | ) |
Advisor Class | | | — | | | | (223,639 | ) |
| | | | | | | | |
Total distributions | | | — | | | | (3,300,005 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 1,219,500 | | | | 8,020,343 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 989,233 | |
Cost of shares redeemed | | | (3,501,212 | ) | | | (5,521,593 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (2,281,712 | ) | | | 3,487,983 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 287,221 | | | | 31,217,654 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 1,743,438 | |
Cost of shares redeemed | | | (1,708,013 | ) | | | (48,041,197 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (1,420,792 | ) | | | (15,080,105 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | 263,750 | | | | 109,252 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 54,906 | |
Cost of shares redeemed | | | (494,955 | ) | | | (2,767,076 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (231,205 | ) | | | (2,602,918 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 24,800 | | | | 503,578 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 100,206 | |
Cost of shares redeemed | | | (435,150 | ) | | | (824,875 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (410,350 | ) | | | (221,091 | ) |
| | | | | | | | |
Advisor Class | | | | | | | | |
Proceeds from sale of shares | | | 78,936 | | | | 8,859,784 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 209,261 | |
Cost of shares redeemed | | | (2,772,658 | ) | | | (80,636,869 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (2,693,722 | ) | | | (71,567,824 | ) |
| | | | | | | | |
Net decrease in net assets | | $ | (8,714,976 | ) | | $ | (88,370,738 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 30,578,914 | | | | 118,949,652 | |
| | | | | | | | |
End of period (including accumulated net investment loss of $(200,088) and $0, respectively) | | $ | 21,863,938 | | | $ | 30,578,914 | |
| | | | | | | | |
| | | | |
| June 30, 2015 | | 90 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Tactical Enhanced Fund (continued) | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Changes in Shares Outstanding: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 52,345 | | | | 306,856 | |
Distributions reinvested | | | — | | | | 40,426 | |
Redeemed | | | (153,669 | ) | | | (213,110 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (101,324 | ) | | | 134,172 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 12,194 | | | | 1,187,808 | |
Distributions reinvested | | | — | | | | 70,385 | |
Redeemed | | | (73,097 | ) | | | (1,879,479 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (60,903 | ) | | | (621,286 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | 11,439 | | | | 4,093 | |
Distributions reinvested | | | — | | | | 2,257 | |
Redeemed | | | (21,699 | ) | | | (105,494 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (10,260 | ) | | | (99,144 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 1,085 | | | | 19,440 | |
Distributions reinvested | | | — | | | | 4,182 | |
Redeemed | | | (19,245 | ) | | | (32,175 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (18,160 | ) | | | (8,553 | ) |
| | | | | | | | |
Advisor Class | | | | | | | | |
Sold | | | 3,415 | | | | 334,549 | |
Distributions reinvested | | | — | | | | 8,468 | |
Redeemed | | | (117,275 | ) | | | (3,082,498 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (113,860 | ) | | | (2,739,481 | ) |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 91 | | June 30, 2015 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Tactical Growth Fund | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Operations: | | | | | | | | |
Net investment loss | | $ | (1,678,766 | ) | | $ | (9,693,389 | ) |
Net realized loss on investments | | | (1,938,886 | ) | | | (6,792,787 | ) |
Net realized gain on written option contracts | | | 291,250 | | | | — | |
Net realized gain on futures contracts | | | — | | | | 37,392,307 | |
Net change in unrealized depreciation on investments, written option contracts and futures contracts | | | (11,026,354 | ) | | | (1,071,848 | ) |
| | | | | | | | |
Net increase/(decrease) in net assets resulting from operations | | | (14,352,756 | ) | | | 19,834,283 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net realized gains on investments | | | | | | | | |
Investor Class | | | — | | | | (6,854,921 | ) |
Institutional Class | | | — | | | | (2,652,915 | ) |
Class A | | | — | | | | (3,030,806 | ) |
Class C | | | — | | | | (4,111,234 | ) |
Advisor Class | | | — | | | | (23,742,958 | ) |
| | | | | | | | |
Total distributions | | | — | | | | (40,392,834 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 6,247,659 | | | | 30,427,211 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 6,823,088 | |
Cost of shares redeemed | | | (24,002,904 | ) | | | (59,068,444 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (17,755,245 | ) | | | (21,818,145 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 2,844,852 | | | | 15,325,981 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 2,625,559 | |
Cost of shares redeemed | | | (14,910,753 | ) | | | (25,678,071 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (12,065,901 | ) | | | (7,726,531 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | 5,690,540 | | | | 23,250,500 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 2,917,842 | |
Cost of shares redeemed | | | (12,824,488 | ) | | | (73,560,363 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (7,133,948 | ) | | | (47,392,021 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 1,538,955 | | | | 13,870,190 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 3,958,946 | |
Cost of shares redeemed | | | (18,439,424 | ) | | | (25,371,410 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (16,900,469 | ) | | | (7,542,274 | ) |
| | | | | | | | |
Advisor Class | | | | | | | | |
Proceeds from sale of shares | | | 24,200,658 | | | | 165,368,701 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 23,097,180 | |
Cost of shares redeemed | | | (128,524,784 | ) | | | (165,775,124 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (104,324,126 | ) | | | 22,690,757 | |
| | | | | | | | |
Net decrease in net assets | | $ | (172,532,445 | ) | | $ | (82,346,765 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 859,731,149 | | | | 942,077,914 | |
| | | | | | | | |
End of period (including accumulated net investment loss of $(1,678,766) and $0, respectively) | | $ | 687,198,704 | | | $ | 859,731,149 | |
| | | | | | | | |
| | | | |
| June 30, 2015 | | 92 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Tactical Growth Fund (continued) | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Changes in Shares Outstanding: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 245,706 | | | | 1,178,614 | |
Distributions reinvested | | | — | | | | 266,049 | |
Redeemed | | | (949,868 | ) | | | (2,285,295 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (704,162 | ) | | | (840,632 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 109,393 | | | | 585,693 | |
Distributions reinvested | | | — | | | | 100,596 | |
Redeemed | | | (574,955 | ) | | | (977,236 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (465,562 | ) | | | (290,947 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | 226,806 | | | | 908,778 | |
Distributions reinvested | | | — | | | | 114,825 | |
Redeemed | | | (510,797 | ) | | | (2,874,913 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (283,991 | ) | | | (1,851,310 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 62,916 | | | | 555,595 | |
Distributions reinvested | | | — | | | | 159,635 | |
Redeemed | | | (752,547 | ) | | | (1,016,500 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (689,631 | ) | | | (301,270 | ) |
| | | | | | | | |
Advisor Class | | | | | | | | |
Sold | | | 933,406 | | | | 6,308,461 | |
Distributions reinvested | | | — | | | | 884,775 | |
Redeemed | | | (4,970,367 | ) | | | (6,345,868 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (4,036,961 | ) | | | 847,368 | |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 93 | | June 30, 2015 |
Consolidated Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Commodity Long/Short Strategy Fund | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Operations: | | | | | | | | |
Net investment loss | | $ | (234,641 | ) | | $ | (705,181 | ) |
Net realized gain on investments | | | 30,399 | | | | 80,499 | |
Net realized loss on swap contracts | | | (1,778,252 | ) | | | (4,590,433 | ) |
Net change in unrealized appreciation/(depreciation) on investments and swap contracts | | | (4,373,713 | ) | | | 2,988,520 | |
| | | | | | | | |
Net decrease in net assets resulting from operations | | | (6,356,207 | ) | | | (2,226,595 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 3,116,861 | | | | 5,408,702 | |
Cost of shares redeemed | | | (2,233,070 | ) | | | (11,346,181 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | 883,791 | | | | (5,937,479 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 641,011 | | | | 9,692,030 | |
Cost of shares redeemed | | | (9,803,231 | ) | | | (18,876,763 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (9,162,220 | ) | | | (9,184,733 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 24,750 | | | | 591,319 | |
Cost of shares redeemed | | | (744,137 | ) | | | (1,791,858 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (719,387 | ) | | | (1,200,539 | ) |
| | | | | | | | |
Advisor Class | | | | | | | | |
Proceeds from sale of shares | | | 3,048,453 | | | | 22,283,937 | |
Cost of shares redeemed | | | (4,773,750 | ) | | | (56,326,762 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (1,725,297 | ) | | | (34,042,825 | ) |
| | | | | | | | |
Class Z | | | | | | | | |
Proceeds from sale of shares | | | 565,000 | | | | 950,174 | |
Cost of shares redeemed | | | (995,000 | ) | | | (3,633,000 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (430,000 | ) | | | (2,682,826 | ) |
| | | | | | | | |
Net decrease in net assets | | $ | (17,509,320 | ) | | $ | (55,274,997 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 60,003,378 | | | | 115,278,375 | |
| | | | | | | | |
End of period (including accumulated net investment loss of $(234,641) and $0, respectively) | | $ | 42,494,058 | | | $ | 60,003,378 | |
| | | | | | | | |
Changes in Shares Outstanding: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 153,329 | | | | 262,069 | |
Redeemed | | | (111,520 | ) | | | (559,541 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | 41,809 | | | | (297,472 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 30,896 | | | | 468,209 | |
Redeemed | | | (487,799 | ) | | | (916,635 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (456,903 | ) | | | (448,426 | ) |
| | | | | | | | |
| | | | |
| June 30, 2015 | | 94 | | See Notes to Financial Statements |
Consolidated Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Commodity Long/Short Strategy Fund
(continued) | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Class C | | | | | | | | |
Sold | | | 1,236 | | | | 29,034 | |
Redeemed | | | (38,516 | ) | | | (89,465 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (37,280 | ) | | | (60,431 | ) |
| | | | | | | | |
Advisor Class | | | | | | | | |
Sold | | | 150,179 | | | | 1,074,816 | |
Redeemed | | | (236,722 | ) | | | (2,766,469 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (86,543 | ) | | | (1,691,653 | ) |
| | | | | | | | |
Class Z | | | | | | | | |
Sold | | | 29,068 | | | | 46,583 | |
Redeemed | | | (49,868 | ) | | | (175,563 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (20,800 | ) | | | (128,980 | ) |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 95 | | June 30, 2015 |
Statement of Cash Flows
For the Six Months Ended June 30, 2015 (Unaudited)
| | | | |
| | | Forward Select EM
Dividend Fund | |
Cash Flows from Operating Activities: | | | | |
Net decrease in net assets resulting from operations | | $ | (188,166 | ) |
Adjustments to reconcile net increase in net assets from operations to net cash provided by/(used in) operating activities: | | | | |
Purchases of investment securities | | | (42,740,687 | ) |
Proceeds from sale of investment securities | | | 34,198,201 | |
Discount and premiums amortized | | | 23,619 | |
Net realized loss on investments | | | 4,013,132 | |
Net realized loss on foreign currency | | | 138,859 | |
Net change in unrealized depreciation on investments and translation of assets and liabilities in foreign currency transactions | | | (2,775,304 | ) |
Changes in assets and liabilities: | | | | |
Increase in deposits with brokers for futures contracts | | | (142,049 | ) |
Decrease in receivable due from broker | | | 1,391 | |
Increase in receivable due from custodian | | | (5,845 | ) |
Increase in interest and dividends receivable | | | (175,305 | ) |
Increase in other assets | | | (25,923 | ) |
Increase in payable for interest due on loan | | | 144 | |
Increase in variation margin payable | | | 11,445 | |
Increase in payable to advisor | | | 7,935 | |
Increase in payable for distribution and service fees | | | 3,308 | |
Decrease in payable to trustees | | | (1,818 | ) |
Decrease in payable for chief compliance officer fee | | | (64 | ) |
Decrease in payable for legal and audit fees | | | (8,775 | ) |
Increase in accrued expenses and other liabilities | | | 10,916 | |
| | | | |
Net cash used in operating activities | | | (7,654,986 | ) |
| | | | |
Cash Flows from Financing Activities: | | | | |
Cash provided by loan | | | 46,016 | |
Cash repayment of loan | | | (2,000,000 | ) |
Proceeds from sale of shares | | | 37,971,805 | |
Cost of shares redeemed | | | (26,809,962 | ) |
Cash distributions paid | | | (550,946 | ) |
| | | | |
Net cash provided by financing activities | | | 8,656,913 | |
| | | | |
Effect of Exchange Rates On Cash & Foreign Currency | | | (5,541 | ) |
Net Change in Cash & Foreign Currency for the Period | | | 996,386 | |
| | | | |
Cash & Foreign Currency, Beginning of Period | | | 1,657,539 | |
| | | | |
Cash & Foreign Currency, End of Period | | $ | 2,653,925 | |
| | | | |
Non-cash financing activities not included herein consist of reinvestment of distributions of $326,069.
Cash paid for interest on loan during the period was $46,016.
| | | | |
| June 30, 2015 | | 96 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Credit Analysis Long/Short Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(a) | | | Year Ended
December 31,
2010 | |
Net Asset Value, Beginning of Period | | $ | 7.50 | | | $ | 7.07 | | | $ | 8.93 | | | $ | 8.09 | | | $ | 7.96 | | | $ | 8.08 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.09 | (b) | | | 0.18 | (b) | | | 0.30 | (b) | | | 0.24 | (b) | | | 0.32 | (b) | | | 0.41 | |
Net realized and unrealized gain/(loss) on investments | | | (0.08 | ) | | | 0.45 | | | | (1.56 | ) | | | 0.88 | | | | 0.14 | | | | (0.07 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.01 | | | | 0.63 | | | | (1.26 | ) | | | 1.12 | | | | 0.46 | | | | 0.34 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.10 | ) | | | (0.20 | ) | | | (0.41 | ) | | | (0.22 | ) | | | (0.31 | ) | | | (0.39 | ) |
From capital gains | | | — | | | | — | | | | (0.19 | ) | | | (0.06 | ) | | | (0.02 | ) | | | (0.07 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.10 | ) | | | (0.20 | ) | | | (0.60 | ) | | | (0.28 | ) | | | (0.33 | ) | | | (0.46 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.09 | ) | | | 0.43 | | | | (1.86 | ) | | | 0.84 | | | | 0.13 | | | | (0.12 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 7.41 | | | $ | 7.50 | | | $ | 7.07 | | | $ | 8.93 | | | $ | 8.09 | | | $ | 7.96 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 0.19 | %(c) | | | 8.97 | % | | | (14.42 | )% | �� | | 13.96 | % | | | 5.83 | % | | | 4.17 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 65,399 | | | $ | 58,907 | | | $ | 55,719 | | | $ | 338,662 | | | $ | 156,238 | | | $ | 136,654 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 2.50 | %(d) | | | 2.50 | % | | | 4.05 | % | | | 3.24 | % | | | 6.13 | % | | | 6.39 | % |
Operating expenses including reimbursement/waiver/
recoupment of past waived fees by advisor | | | 1.76 | %(d) | | | 1.79 | % | | | 1.97 | %(e) | | | 1.99 | % | | | 1.99 | % | | | 1.98 | %(f) |
Operating expenses excluding reimbursement/waiver | | | 1.76 | %(d) | | | 1.80 | % | | | 2.08 | % | | | 2.08 | % | | | 2.14 | % | | | 2.14 | % |
Ratios to Average Net Assets (including interest expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 2.50 | %(d) | | | 2.50 | % | | | 3.45 | % | | | 2.78 | % | | | 3.95 | % | | | 5.15 | % |
Operating expenses including reimbursement/waiver/
recoupment of past waived fees by advisor | | | 1.76 | %(d) | | | 1.79 | % | | | 2.57 | %(e) | | | 2.46 | % | | | 4.17 | % | | | 3.22 | %(f) |
Operating expenses excluding reimbursement/waiver | | | 1.76 | %(d) | | | 1.80 | % | | | 2.68 | % | | | 2.55 | % | | | 4.32 | % | | | 3.39 | % |
Portfolio Turnover Rate | | | 84 | %(c) | | | 168 | % | | | 125 | % | | | 63 | % | | | 133 | % | | | 89 | % |
(a) Prior to May 1, 2011, the Forward Credit Analysis Long/Short Fund was known as the Forward Long/Short Credit Analysis Fund.
(b) Per share amounts are based upon average shares outstanding.
(c) Not Annualized.
(d) Annualized.
(e) Effective October 1, 2013, the annual expense limitation rate changed from 1.99% to 1.79%.
(f) Effective May 1, 2010, the annual expense limitation rate changed from 1.95% to 1.99%.
| | | | |
| See Notes to Financial Statements | | 97 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Credit Analysis Long/Short Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(a) | | | Year Ended
December 31,
2010 | |
Net Asset Value, Beginning of Period | | $ | 7.44 | | | $ | 7.01 | | | $ | 8.88 | | | $ | 8.04 | | | $ | 7.91 | | | $ | 8.03 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.11 | (b) | | | 0.22 | (b) | | | 0.32 | (b) | | | 0.27 | (b) | | | 0.34 | (b) | | | 0.48 | |
Net realized and unrealized gain/(loss) on investments | | | (0.08 | ) | | | 0.44 | | | | (1.56 | ) | | | 0.88 | | | | 0.15 | | | | (0.11 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.03 | | | | 0.66 | | | | (1.24 | ) | | | 1.15 | | | | 0.49 | | | | 0.37 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.12 | ) | | | (0.23 | ) | | | (0.44 | ) | | | (0.25 | ) | | | (0.34 | ) | | | (0.42 | ) |
From capital gains | | | — | | | | — | | | | (0.19 | ) | | | (0.06 | ) | | | (0.02 | ) | | | (0.07 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.12 | ) | | | (0.23 | ) | | | (0.63 | ) | | | (0.31 | ) | | | (0.36 | ) | | | (0.49 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.09 | ) | | | 0.43 | | | | (1.87 | ) | | | 0.84 | | | | 0.13 | | | | (0.12 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 7.35 | | | $ | 7.44 | | | $ | 7.01 | | | $ | 8.88 | | | $ | 8.04 | | | $ | 7.91 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 0.38 | %(c) | | | 9.47 | % | | | (14.20 | )% | | | 14.43 | % | | | 6.23 | % | | | 4.54 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 19,438 | | | $ | 19,366 | | | $ | 43,298 | | | $ | 214,229 | | | $ | 38,790 | | | $ | 16,994 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 2.84 | %(d) | | | 2.97 | % | | | 4.41 | % | | | 3.51 | % | | | 6.39 | % | | | 6.82 | % |
Operating expenses including reimbursement/waiver/
recoupment of past waived fees by advisor | | | 1.42 | %(d) | | | 1.44 | % | | | 1.61 | %(e) | | | 1.64 | % | | | 1.64 | % | | | 1.63 | %(f) |
Operating expenses excluding reimbursement/waiver | | | 1.42 | %(d) | | | 1.50 | % | | | 1.74 | % | | | 1.74 | % | | | 1.79 | % | | | 1.80 | % |
Ratios to Average Net Assets (including interest expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 2.84 | %(d) | | | 2.97 | % | | | 3.81 | % | | | 3.05 | % | | | 4.21 | % | | | 5.57 | % |
Operating expenses including reimbursement/waiver/
recoupment of past waived fees by advisor | | | 1.42 | %(d) | | | 1.44 | % | | | 2.21 | %(e) | | | 2.11 | % | | | 3.82 | % | | | 2.88 | %(f) |
Operating expenses excluding reimbursement/waiver | | | 1.42 | %(d) | | | 1.50 | % | | | 2.34 | % | | | 2.21 | % | | | 3.97 | % | | | 3.06 | % |
Portfolio Turnover Rate | | | 84 | %(c) | | | 168 | % | | | 125 | % | | | 63 | % | | | 133 | % | | | 89 | % |
(a) Prior to May 1, 2011, the Forward Credit Analysis Long/Short Fund was known as the Forward Long/Short Credit Analysis Fund.
(b) Per share amounts are based upon average shares outstanding.
(c) Not Annualized.
(d) Annualized.
(e) Effective October 1, 2013, the annual expense limitation rate changed from 1.64% to 1.44%.
(f) Effective May 1, 2010, the annual expense limitation rate changed from 1.60% to 1.64%.
| | | | |
| June 30, 2015 | | 98 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Credit Analysis Long/Short Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(a) | | | Period Ended
December 31,
2010(b) | |
Net Asset Value, Beginning of Period | | $ | 7.47 | | | $ | 7.04 | | | $ | 8.90 | | | $ | 8.08 | | | $ | 7.95 | | | $ | 8.70 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.09 | (c) | | | 0.17 | (c) | | | 0.28 | (c) | | | 0.22 | (c) | | | 0.31 | (c) | | | 0.14 | |
Net realized and unrealized gain/(loss) on investments | | | (0.09 | ) | | | 0.45 | | | | (1.56 | ) | | | 0.88 | | | | 0.14 | | | | (0.63 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | — | | | | 0.62 | | | | (1.28 | ) | | | 1.10 | | | | 0.45 | | | | (0.49 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.10 | ) | | | (0.19 | ) | | | (0.39 | ) | | | (0.22 | ) | | | (0.30 | ) | | | (0.19 | ) |
From capital gains | | | — | | | | — | | | | (0.19 | ) | | | (0.06 | ) | | | (0.02 | ) | | | (0.07 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.10 | ) | | | (0.19 | ) | | | (0.58 | ) | | | (0.28 | ) | | | (0.32 | ) | | | (0.26 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.10 | ) | | | 0.43 | | | | (1.86 | ) | | | 0.82 | | | | 0.13 | | | | (0.75 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 7.37 | | | $ | 7.47 | | | $ | 7.04 | | | $ | 8.90 | | | $ | 8.08 | | | $ | 7.95 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(d) | | | 0.02 | %(e) | | | 8.85 | % | | | (14.60 | )% | | | 13.69 | % | | | 5.68 | % | | | (5.69 | )%(e) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 4,362 | | | $ | 4,228 | | | $ | 4,576 | | | $ | 18,480 | | | $ | 1,621 | | | $ | 2,360 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 2.39 | %(f) | | | 2.35 | % | | | 3.93 | % | | | 2.96 | % | | | 6.06 | % | | | 5.63 | %(f) |
Operating expenses including reimbursement/waiver/recoupment of past waived fees by advisor | | | 1.91 | %(f) | | | 1.94 | % | | | 2.11 | %(g) | | | 2.14 | % | | | 2.14 | % | | | 2.14 | %(f) |
Operating expenses excluding reimbursement/waiver | | | 1.91 | %(f) | | | 1.96 | % | | | 2.24 | % | | | 2.24 | % | | | 2.29 | % | | | 2.36 | %(f) |
Ratios to Average Net Assets (including interest expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 2.39 | %(f) | | | 2.35 | % | | | 3.33 | % | | | 2.49 | % | | | 3.88 | % | | | 4.46 | %(f) |
Operating expenses including reimbursement/waiver/recoupment of past waived fees by advisor | | | 1.91 | %(f) | | | 1.94 | % | | | 2.71 | %(g) | | | 2.61 | % | | | 4.32 | % | | | 3.31 | %(f) |
Operating expenses excluding reimbursement/waiver | | | 1.91 | %(f) | | | 1.96 | % | | | 2.84 | % | | | 2.71 | % | | | 4.47 | % | | | 3.53 | %(f) |
Portfolio Turnover Rate | | | 84 | %(e) | | | 168 | % | | | 125 | % | | | 63 | % | | | 133 | % | | | 89 | %(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 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) Effective October 1, 2013, the annual expense limitation rate changed from 2.14% to 1.94%.
(h) Portfolio turnover rate is calculated at the Fund level and represents the year ended December 31, 2010.
| | | | |
| See Notes to Financial Statements | | 99 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Credit Analysis Long/Short Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class C | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(a) | | | Year Ended
December 31,
2010 | |
Net Asset Value, Beginning of Period | | $ | 7.51 | | | $ | 7.07 | | | $ | 8.93 | | | $ | 8.09 | | | $ | 7.97 | | | $ | 8.10 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.07 | (b) | | | 0.14 | (b) | | | 0.24 | (b) | | | 0.19 | (b) | | | 0.27 | (b) | | | 0.39 | |
Net realized and unrealized gain/(loss) on investments | | | (0.09 | ) | | | 0.45 | | | | (1.56 | ) | | | 0.88 | | | | 0.13 | | | | (0.10 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.02 | ) | | | 0.59 | | | | (1.32 | ) | | | 1.07 | | | | 0.40 | | | | 0.29 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.08 | ) | | | (0.15 | ) | | | (0.35 | ) | | | (0.17 | ) | | | (0.26 | ) | | | (0.35 | ) |
From capital gains | | | — | | | | — | | | | (0.19 | ) | | | (0.06 | ) | | | (0.02 | ) | | | (0.07 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.08 | ) | | | (0.15 | ) | | | (0.54 | ) | | | (0.23 | ) | | | (0.28 | ) | | | (0.42 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.10 | ) | | | 0.44 | | | | (1.86 | ) | | | 0.84 | | | | 0.12 | | | | (0.13 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 7.41 | | | $ | 7.51 | | | $ | 7.07 | | | $ | 8.93 | | | $ | 8.09 | | | $ | 7.97 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(c) | | | (0.28 | )%(d) | | | 8.46 | % | | | (14.98 | )% | | | 13.33 | % | | | 5.07 | % | | | 3.50 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 6,052 | | | $ | 9,466 | | | $ | 10,744 | | | $ | 29,013 | | | $ | 15,550 | | | $ | 15,357 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 1.90 | %(e) | | | 1.89 | % | | | 3.48 | % | | | 2.67 | % | | | 5.51 | % | | | 5.75 | % |
Operating expenses including reimbursement/waiver/
recoupment of past waived fees by advisor | | | 2.36 | %(e) | | | 2.39 | % | | | 2.56 | %(f) | | | 2.59 | % | | | 2.59 | % | | | 2.58 | %(g) |
Operating expenses excluding reimbursement/waiver | | | 2.36 | %(e) | | | 2.41 | % | | | 2.69 | % | | | 2.68 | % | | | 2.74 | % | | | 2.76 | % |
Ratios to Average Net Assets (including interest expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 1.90 | %(e) | | | 1.89 | % | | | 2.88 | % | | | 2.21 | % | | | 3.33 | % | | | 4.51 | % |
Operating expenses including reimbursement/waiver/
recoupment of past waived fees by advisor | | | 2.36 | %(e) | | | 2.39 | % | | | 3.16 | %(f) | | | 3.06 | % | | | 4.77 | % | | | 3.82 | %(g) |
Operating expenses excluding reimbursement/waiver | | | 2.36 | %(e) | | | 2.41 | % | | | 3.29 | % | | | 3.15 | % | | | 4.92 | % | | | 4.00 | % |
Portfolio Turnover Rate | | | 84 | %(d) | | | 168 | % | | | 125 | % | | | 63 | % | | | 133 | % | | | 89 | % |
(a) Prior to May 1, 2011, the Forward Credit Analysis Long/Short Fund was known as the Forward Long/Short Credit Analysis 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) Annualized.
(f) Effective October 1, 2013, the annual expense limitation rate changed from 2.59% to 2.39%.
(g) Effective May 1, 2010, the annual expense limitation rate changed from 2.55% to 2.59%.
| | | | |
| June 30, 2015 | | 100 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Credit Analysis Long/Short Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Advisor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013(a) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(b) | | | Period Ended
December 31,
2010(c) | |
Net Asset Value, Beginning of Period | | $ | 7.44 | | | $ | 7.01 | | | $ | 8.88 | | | $ | 8.04 | | | $ | 7.91 | | | $ | 8.17 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.10 | (d) | | | 0.21 | (d) | | | 0.32 | (d) | | | 0.26 | (d) | | | 0.35 | (d) | | | 0.40 | |
Net realized and unrealized gain/(loss) on investments | | | (0.08 | ) | | | 0.44 | | | | (1.56 | ) | | | 0.89 | | | | 0.14 | | | | (0.17 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.02 | | | | 0.65 | | | | (1.24 | ) | | | 1.15 | | | | 0.49 | | | | 0.23 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.11 | ) | | | (0.22 | ) | | | (0.44 | ) | | | (0.25 | ) | | | (0.34 | ) | | | (0.42 | ) |
From capital gains | | | — | | | | — | | | | (0.19 | ) | | | (0.06 | ) | | | (0.02 | ) | | | (0.07 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.11 | ) | | | (0.22 | ) | | | (0.63 | ) | | | (0.31 | ) | | | (0.36 | ) | | | (0.49 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.09 | ) | | | 0.43 | | | | (1.87 | ) | | | 0.84 | | | | 0.13 | | | | (0.26 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 7.35 | | | $ | 7.44 | | | $ | 7.01 | | | $ | 8.88 | | | $ | 8.04 | | | $ | 7.91 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 0.31 | %(e) | | | 9.41 | % | | | (14.24 | )% | | | 14.43 | % | | | 6.24 | % | | | 2.73 | %(e) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 6,041 | | | $ | 10,114 | | | $ | 11,800 | | | $ | 101,263 | | | $ | 4,120 | | | $ | 4,930 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 2.77 | %(f) | | | 2.81 | % | | | 4.34 | % | | | 3.44 | % | | | 6.54 | % | | | 6.85 | %(f) |
Operating expenses including reimbursement/waiver/
recoupment of past waived fees by advisor | | | 1.47 | %(f) | | | 1.49 | % | | | 1.65 | %(g) | | | 1.64 | % | | | 1.64 | % | | | 1.63 | %(f)(h) |
Operating expenses excluding reimbursement/waiver | | | 1.47 | %(f) | | | 1.51 | % | | | 1.75 | % | | | 1.74 | % | | | 1.79 | % | | | 1.85 | %(f) |
Ratios to Average Net Assets (including interest expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 2.77 | %(f) | | | 2.81 | % | | | 3.74 | % | | | 2.97 | % | | | 4.36 | % | | | 5.50 | %(f) |
Operating expenses including reimbursement/waiver/
recoupment of past waived fees by advisor | | | 1.47 | %(f) | | | 1.49 | % | | | 2.25 | %(g) | | | 2.11 | % | | | 3.82 | % | | | 2.98 | %(f)(h) |
Operating expenses excluding reimbursement/waiver | | | 1.47 | %(f) | | | 1.51 | % | | | 2.36 | % | | | 2.20 | % | | | 3.97 | % | | | 3.20 | %(f) |
Portfolio Turnover Rate | | | 84 | %(e) | | | 168 | % | | | 125 | % | | | 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 annual expense limitation rate changed from 1.64% to 1.69%. Effective October 1, 2013, the annual expense limitation rate changed from 1.69% to 1.49%.
(h) Effective May 1, 2010, the annual expense limitation rate 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.
| | | | |
| See Notes to Financial Statements | | 101 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the period presented.
Forward Dynamic Income Fund
| | | | |
| | | Investor Class | |
| | | Six Months Ended
June 30, 2015(a)
(Unaudited) | |
Net Asset Value, Beginning of Period | | $ | 26.56 | |
Income/(Loss) from Operations: | | | | |
Net investment income(b) | | | 0.95 | |
Net realized and unrealized loss on investments | | | (1.05 | ) |
| | | | |
Total from Investment Operations | | | (0.10 | ) |
| | | | |
Less Distributions: | | | | |
From investment income | | | (0.87 | ) |
| | | | |
Total Distributions | | | (0.87 | ) |
| | | | |
Net Decrease in Net Asset Value | | | (0.97 | ) |
| | | | |
Net Asset Value, End of Period | | $ | 25.59 | |
| | | | |
Total Return | | | (0.38 | )%(c) |
Ratios/Supplemental Data: | | | | |
Net assets, End of Period (in 000s) | | $ | 1,110 | |
Ratios to Average Net Assets: | | | | |
Net investment income including reimbursement/waiver | | | 7.40 | %(d) |
Operating expenses including reimbursement/waiver | | | 1.34 | %(d) |
Operating expenses excluding reimbursement/waiver | | | 1.51 | %(d) |
Portfolio Turnover Rate | | | 353 | %(c) |
(a) The Fund began offering Investor Class shares on January 2, 2015.
(b) Per share amounts are based upon average shares outstanding.
(c) Not Annualized.
(d) Annualized.
| | | | |
| June 30, 2015 | | 102 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Dynamic Income Fund
| | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Period Ended
December 31,
2013(a) | |
Net Asset Value, Beginning of Period | | $ | 26.56 | | | $ | 24.93 | | | $ | 25.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | |
Net investment income(b) | | | 0.97 | | | | 2.45 | | | | 0.77 | |
Net realized and unrealized gain/(loss) on investments | | | (1.03 | ) | | | 1.57 | | | | 0.03 | |
| | | | | | | | | | | | |
Total from Investment Operations | | | (0.06 | ) | | | 4.02 | | | | 0.80 | |
| | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | |
From investment income | | | (0.91 | ) | | | (2.15 | ) | | | (0.82 | ) |
From capital gains | | | — | | | | (0.24 | ) | | | (0.01 | ) |
Tax return of capital | | | �� | | | | — | | | | (0.04 | ) |
| | | | | | | | | | | | |
Total Distributions | | | (0.91 | ) | | | (2.39 | ) | | | (0.87 | ) |
| | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.97 | ) | | | 1.63 | | | | (0.07 | ) |
| | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 25.59 | | | $ | 26.56 | | | $ | 24.93 | |
| | | | | | | | | | | | |
Total Return | | | (0.27 | )%(c) | | | 16.75 | % | | | 3.25 | %(c) |
Ratios/Supplemental Data: | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 36,769 | | | $ | 30,165 | | | $ | 2,987 | |
Ratios to Average Net Assets: | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 7.48 | %(d) | | | 9.40 | % | | | 7.43 | %(d) |
Operating expenses including reimbursement/waiver | | | 0.99 | %(d) | | | 1.20 | %(e) | | | 1.29 | %(d) |
Operating expenses excluding reimbursement/waiver | | | 1.15 | %(d) | | | 1.96 | % | | | 5.67 | %(d) |
Portfolio Turnover Rate | | | 353 | %(c) | | | 739 | % | | | 755 | %(c) |
(a) The Fund began offering Institutional Class shares on August 1, 2013.
(b) Per share amounts are based upon average shares outstanding.
(c) Not Annualized.
(d) Annualized.
(e) Effective December 1, 2014, the annual expense limitation rate changed from 1.29% to 0.99%.
| | | | |
| See Notes to Financial Statements | | 103 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Dynamic Income Fund
| | | | | | | | | | | | |
| | | Class A | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Period Ended
December 31,
2013(a) | |
Net Asset Value, Beginning of Period | | $ | 26.53 | | | $ | 24.91 | | | $ | 25.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | |
Net investment income(b) | | | 0.91 | | | | 2.92 | | | | 0.68 | |
Net realized and unrealized gain/(loss) on investments | | | (1.04 | ) | | | 0.97 | | | | 0.07 | |
| | | | | | | | | | | | |
Total from Investment Operations | | | (0.13 | ) | | | 3.89 | | | | 0.75 | |
| | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | |
From investment income | | | (0.85 | ) | | | (2.03 | ) | | | (0.79 | ) |
From capital gains | | | — | | | | (0.24 | ) | | | (0.01 | ) |
Tax return of capital | | | — | | | | ��� | | | | (0.04 | ) |
| | | | | | | | | | | | |
Total Distributions | | | (0.85 | ) | | | (2.27 | ) | | | (0.84 | ) |
| | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.98 | ) | | | 1.62 | | | | (0.09 | ) |
| | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 25.55 | | | $ | 26.53 | | | $ | 24.91 | |
| | | | | | | | | | | | |
Total Return(c) | | | (0.50 | )%(d) | | | 16.19 | % | | | 3.05 | %(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 12,314 | | | $ | 8,485 | | | $ | 224 | |
Ratios to Average Net Assets: | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 7.03 | %(e) | | | 11.50 | % | | | 6.58 | %(e) |
Operating expenses including reimbursement/waiver | | | 1.49 | %(e) | | | 1.67 | %(f) | | | 1.79 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 1.66 | %(e) | | | 2.35 | % | | | 6.10 | %(e) |
Portfolio Turnover Rate | | | 353 | %(d) | | | 739 | % | | | 755 | %(d) |
(a) The Fund began offering Class A shares on August 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) Effective December 1, 2014, the annual expense limitation rate changed from 1.79% to 1.49%.
| | | | |
| June 30, 2015 | | 104 | | 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, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(a) | | | Year Ended
December 31,
2010 | |
Net Asset Value, Beginning of Period | | $ | 8.76 | | | $ | 9.41 | | | $ | 9.98 | | | $ | 9.10 | | | $ | 11.05 | | | $ | 10.60 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.29 | (b) | | | 0.70 | (b) | | | 0.65 | (b) | | | 0.62 | (b) | | | 0.61 | (b) | | | 0.42 | |
Net realized and unrealized gain/(loss) on investments | | | (0.18 | ) | | | (0.76 | ) | | | (0.62 | ) | | | 0.70 | | | | (0.89 | ) | | | 0.25 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.11 | | | | (0.06 | ) | | | 0.03 | | | | 1.32 | | | | (0.28 | ) | | | 0.67 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.29 | ) | | | (0.59 | ) | | | (0.60 | ) | | | (0.44 | ) | | | (1.67 | ) | | | (0.22 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.29 | ) | | | (0.59 | ) | | | (0.60 | ) | | | (0.44 | ) | | | (1.67 | ) | | | (0.22 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.18 | ) | | | (0.65 | ) | | | (0.57 | ) | | | 0.88 | | | | (1.95 | ) | | | 0.45 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 8.58 | | | $ | 8.76 | | | $ | 9.41 | | | $ | 9.98 | | | $ | 9.10 | | | $ | 11.05 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 1.22 | %(c) | | | (0.76 | )% | | | 0.48 | % | | | 14.63 | % | | | (2.73 | )% | | | 6.47 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 284,943 | | | $ | 346,733 | | | $ | 304,150 | | | $ | 168,003 | | | $ | 4,702 | | | $ | 5,924 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 6.78 | %(d) | | | 7.62 | % | | | 6.78 | % | | | 6.37 | % | | | 5.35 | % | | | 3.80 | % |
Operating expenses including reimbursement/waiver/recoupment of past waived fees by advisor | | | 1.38 | %(d) | | | 1.36 | %(e) | | | 1.34 | %(f) | | | 1.35 | % | | | 1.39 | % | | | 1.39 | % |
Operating expenses excluding reimbursement/waiver | | | n/a | | | | 1.36 | % | | | 1.35 | % | | | 1.36 | % | | | 1.89 | % | | | 1.90 | % |
Ratios to Average Net Assets (including interest expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 6.67 | %(d) | | | 7.46 | % | | | 6.69 | % | | | n/a | | | | n/a | | | | n/a | |
Operating expenses including reimbursement/waiver/recoupment of past waived fees by advisor | | | 1.49 | %(d) | | | 1.52 | %(e) | | | 1.42 | %(f) | | | n/a | | | | n/a | | | | n/a | |
Operating expenses excluding reimbursement/waiver | | | n/a | | | | 1.52 | % | | | 1.44 | % | | | n/a | | | | n/a | | | | n/a | |
Portfolio Turnover Rate | | | 10 | %(c) | | | 70 | % | | | 85 | % | | | 91 | % | | | 357 | % | | | 74 | % |
(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, 2014, the expense limitation agreement expired.
(f) Effective May 1, 2013, the annual expense limitation rate changed from 1.39% to 1.34%.
| | | | |
| See Notes to Financial Statements | | 105 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward EM Corporate Debt Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(a) | | | Year Ended
December 31,
2010 | |
Net Asset Value, Beginning of Period | | $ | 8.69 | | | $ | 9.35 | | | $ | 9.91 | | | $ | 9.04 | | | $ | 11.02 | | | $ | 10.55 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.30 | (b) | | | 0.72 | (b) | | | 0.67 | (b) | | | 0.65 | (b) | | | 0.68 | (b) | | | 0.48 | |
Net realized and unrealized gain/(loss) on investments | | | (0.18 | ) | | | (0.75 | ) | | | (0.60 | ) | | | 0.70 | | | | (0.92 | ) | | | 0.23 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.12 | | | | (0.03 | ) | | | 0.07 | | | | 1.35 | | | | (0.24 | ) | | | 0.71 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.30 | ) | | | (0.63 | ) | | | (0.63 | ) | | | (0.48 | ) | | | (1.74 | ) | | | (0.24 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.30 | ) | | | (0.63 | ) | | | (0.63 | ) | | | (0.48 | ) | | | (1.74 | ) | | | (0.24 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.18 | ) | | | (0.66 | ) | | | (0.56 | ) | | | 0.87 | | | | (1.98 | ) | | | 0.47 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 8.51 | | | $ | 8.69 | | | $ | 9.35 | | | $ | 9.91 | | | $ | 9.04 | | | $ | 11.02 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 1.30 | %(c) | | | (0.42 | )% | | | 0.92 | % | | | 15.06 | % | | | (2.40 | )% | | | 6.91 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 42,686 | | | $ | 41,555 | | | $ | 35,001 | | | $ | 33,773 | | | $ | 7,613 | | | $ | 17,469 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 7.11 | %(d) | | | 7.92 | % | | | 6.99 | % | | | 6.67 | % | | | 6.10 | % | | | 4.22 | % |
Operating expenses including reimbursement/waiver/recoupment of past waived fees by advisor | | | 1.03 | %(d) | | | 1.01 | %(e) | | | 0.98 | % | | | 0.99 | % | | | 0.99 | % | | | 0.99 | % |
Operating expenses excluding reimbursement/waiver | | | n/a | | | | 1.01 | % | | | 0.98 | % | | | 1.01 | % | | | 1.49 | % | | | 1.45 | % |
Ratios to Average Net Assets (including interest expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 7.00 | %(d) | | | 7.76 | % | | | 6.90 | % | | | n/a | | | | n/a | | | | n/a | |
Operating expenses including reimbursement/waiver/recoupment of past waived fees by advisor | | | 1.14 | %(d) | | | 1.17 | %(e) | | | 1.06 | % | | | n/a | | | | n/a | | | | n/a | |
Operating expenses excluding reimbursement/waiver | | | n/a | | | | 1.17 | % | | | 1.06 | % | | | n/a | | | | n/a | | | | n/a | |
Portfolio Turnover Rate | | | 10 | %(c) | | | 70 | % | | | 85 | % | | | 91 | % | | | 357 | % | | | 74 | % |
(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, 2014, the expense limitation agreement expired.
| | | | |
| June 30, 2015 | | 106 | | 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, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(a) | | | Year Ended
December 31,
2010 | |
Net Asset Value, Beginning of Period | | $ | 8.79 | | | $ | 9.45 | | | $ | 10.01 | | | $ | 9.13 | | | $ | 11.08 | | | $ | 10.66 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.26 | (b) | | | 0.64 | (b) | | | 0.58 | (b) | | | 0.54 | (b) | | | 0.52 | (b) | | | 0.44 | |
Net realized and unrealized gain/(loss) on investments | | | (0.18 | ) | | | (0.76 | ) | | | (0.60 | ) | | | 0.73 | | | | (0.87 | ) | | | 0.17 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.08 | | | | (0.12 | ) | | | (0.02 | ) | | | 1.27 | | | | (0.35 | ) | | | 0.61 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.26 | ) | | | (0.54 | ) | | | (0.54 | ) | | | (0.39 | ) | | | (1.60 | ) | | | (0.19 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.26 | ) | | | (0.54 | ) | | | (0.54 | ) | | | (0.39 | ) | | | (1.60 | ) | | | (0.19 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.18 | ) | | | (0.66 | ) | | | (0.56 | ) | | | 0.88 | | | | (1.95 | ) | | | 0.42 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 8.61 | | | $ | 8.79 | | | $ | 9.45 | | | $ | 10.01 | | | $ | 9.13 | | | $ | 11.08 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(c) | | | 0.96 | %(d) | | | (1.44 | )% | | | (0.03 | )% | | | 13.99 | % | | | (3.31 | )% | | | 5.87 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 2,377 | | | $ | 2,162 | | | $ | 1,915 | | | $ | 1,695 | | | $ | 1,142 | | | $ | 2,345 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 6.17 | %(e) | | | 7.00 | % | | | 6.04 | % | | | 5.56 | % | | | 4.54 | % | | | 3.24 | % |
Operating expenses including reimbursement/waiver/recoupment of past waived fees by advisor | | | 1.98 | %(e) | | | 1.96 | %(f) | | | 1.93 | % | | | 1.94 | % | | | 1.94 | % | | | 1.94 | % |
Operating expenses excluding reimbursement/waiver | | | n/a | | | | 1.96 | % | | | 1.93 | % | | | 2.03 | % | | | 2.48 | % | | | 2.38 | % |
Ratios to Average Net Assets (including interest expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 6.06 | %(e) | | | 6.84 | % | | | 5.95 | % | | | n/a | | | | n/a | | | | n/a | |
Operating expenses including reimbursement/waiver/recoupment of past waived fees by advisor | | | 2.09 | %(e) | | | 2.12 | %(f) | | | 2.02 | % | | | n/a | | | | n/a | | | | n/a | |
Operating expenses excluding reimbursement/waiver | | | n/a | | | | 2.12 | % | | | 2.02 | % | | | n/a | | | | n/a | | | | n/a | |
Portfolio Turnover Rate | | | 10 | %(d) | | | 70 | % | | | 85 | % | | | 91 | % | | | 357 | % | | | 74 | % |
(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) Total return does not reflect the effect of sales charges.
(d) Not Annualized.
(e) Annualized.
(f) Effective May 1, 2014, the expense limitation agreement expired.
| | | | |
| See Notes to Financial Statements | | 107 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward EM Corporate Debt Fund
| | | | | | | | |
| | | Advisor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Period Ended
December 31,
2014(a) | |
Net Asset Value, Beginning of Period | | $ | 8.68 | | | $ | 9.28 | |
Income/(Loss) from Operations: | | | | | | | | |
Net investment income(b) | | | 0.30 | | | | 0.67 | |
Net realized and unrealized loss on investments | | | (0.18 | ) | | | (0.80 | ) |
| | | | | | | | |
Total from Investment Operations | | | 0.12 | | | | (0.13 | ) |
| | | | | | | | |
Less Distributions: | | | | | | | | |
From investment income | | | (0.30 | ) | | | (0.47 | ) |
| | | | | | | | |
Total Distributions | | | (0.30 | ) | | | (0.47 | ) |
| | | | | | | | |
Net Decrease in Net Asset Value | | | (0.18 | ) | | | (0.60 | ) |
| | | | | | | | |
Net Asset Value, End of Period | | $ | 8.50 | | | $ | 8.68 | |
| | | | | | | | |
Total Return | | | 1.28 | %(c) | | | (1.43 | )%(c) |
Ratios/Supplemental Data: | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 2,973 | | | $ | 2,943 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | |
Net investment income | | | 7.08 | %(d) | | | 7.34 | %(d) |
Operating expenses | | | 1.08 | %(d) | | | 1.05 | %(d) |
Ratios to Average Net Assets (including interest expense): | | | | | | | | |
Net investment income | | | 6.97 | %(d) | | | 7.18 | %(d) |
Operating expenses | | | 1.19 | %(d) | | | 1.21 | %(d) |
Portfolio Turnover Rate | | | 10 | %(c) | | | 70 | %(e) |
(a) The Fund began offering Advisor class shares on May 1, 2014.
(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 period ended December 31, 2014.
| | | | |
| June 30, 2015 | | 108 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Emerging Markets Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | |
Net Asset Value, Beginning of Period | | $ | 10.24 | | | $ | 10.59 | | | $ | 10.58 | | | $ | 9.55 | | | $ | 20.97 | | | $ | 21.47 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.10 | (a) | | | 0.13 | (a) | | | 0.16 | (a) | | | 0.07 | (a) | | | 0.11 | (a) | | | 0.00 | (b) |
Net realized and unrealized gain/(loss) on investments | | | (0.04 | ) | | | (0.29 | ) | | | 0.00 | (b) | | | 1.64 | | | | (4.61 | ) | | | 3.43 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.06 | | | | (0.16 | ) | | | 0.16 | | | | 1.71 | | | | (4.50 | ) | | | 3.43 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | — | | | | (0.19 | ) | | | (0.15 | ) | | | (0.01 | ) | | | (0.57 | ) | | | (0.25 | ) |
From capital gains | | | — | | | | — | | | | — | | | | (0.67 | ) | | | (6.35 | ) | | | (3.68 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (0.19 | ) | | | (0.15 | ) | | | (0.68 | ) | | | (6.92 | ) | | | (3.93 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.06 | | | | (0.35 | ) | | | 0.01 | | | | 1.03 | | | | (11.42 | ) | | | (0.50 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 10.30 | | | $ | 10.24 | | | $ | 10.59 | | | $ | 10.58 | | | $ | 9.55 | | | $ | 20.97 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 0.59 | %(c) | | | (1.52 | )% | | | 1.54 | % | | | 18.14 | % | | | (22.33 | )% | | | 16.56 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 3,333 | | | $ | 3,819 | | | $ | 4,898 | | | $ | 5,934 | | | $ | 23,498 | | | $ | 49,997 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 1.96 | %(d) | | | 1.20 | % | | | 1.45 | % | | | 0.65 | % | | | 0.55 | % | | | 0.01 | % |
Operating expenses including reimbursement/waiver | | | 1.74 | %(d) | | | 1.74 | % | | | 1.76 | %(e) | | | 1.80 | %(f) | | | 1.79 | % | | | 1.79 | % |
Operating expenses excluding reimbursement/waiver | | | 2.55 | %(d) | | | 2.46 | % | | | 2.55 | % | | | 2.78 | % | | | 2.15 | % | | | 2.02 | % |
Portfolio Turnover Rate | | | 26 | %(c) | | | 72 | % | | | 88 | % | | | 150 | % | | | 102 | % | | | 129 | % |
(a) Per share amounts are based upon average shares outstanding.
(b) Amount represents less than $0.01 per share.
(c) Not Annualized.
(d) Annualized.
(e) Effective May 1, 2013, the annual expense limitation rate changed from 1.79% to 1.74%.
(f) Effective May 1, 2012, the annual expense limitation rate changed from 1.79% to 1.89%. Effective September 1, 2012, the annual expense limitation rate changed from 1.89% to 1.79%.
| | | | |
| See Notes to Financial Statements | | 109 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Emerging Markets Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | |
Net Asset Value, Beginning of Period | | $ | 10.38 | | | $ | 10.72 | | | $ | 10.67 | | | $ | 9.76 | | | $ | 21.31 | | | $ | 21.76 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(a) | | | 0.13 | | | | 0.15 | | | | 0.18 | | | | 0.13 | | | | 0.15 | | | | 0.12 | |
Net realized and unrealized gain/(loss) on investments | | | (0.05 | ) | | | (0.27 | ) | | | 0.03 | | | | 1.67 | | | | (4.70 | ) | | | 3.45 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.08 | | | | (0.12 | ) | | | 0.21 | | | | 1.80 | | | | (4.55 | ) | | | 3.57 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | — | | | | (0.22 | ) | | | (0.16 | ) | | | (0.22 | ) | | | (0.65 | ) | | | (0.34 | ) |
From capital gains | | | — | | | | — | | | | — | | | | (0.67 | ) | | | (6.35 | ) | | | (3.68 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (0.22 | ) | | | (0.16 | ) | | | (0.89 | ) | | | (7.00 | ) | | | (4.02 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.08 | | | | (0.34 | ) | | | 0.05 | | | | 0.91 | | | | (11.55 | ) | | | (0.45 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 10.46 | | | $ | 10.38 | | | $ | 10.72 | | | $ | 10.67 | | | $ | 9.76 | | | $ | 21.31 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 0.77 | %(b) | | | (1.12 | )% | | | 1.97 | % | | | 18.65 | % | | | (22.21 | )% | | | 17.12 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 7,638 | | | $ | 5,862 | | | $ | 7,033 | | | $ | 4,517 | | | $ | 31,484 | | | $ | 157,970 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 2.51 | %(c) | | | 1.35 | % | | | 1.64 | % | | | 1.25 | % | | | 0.76 | % | | | 0.62 | % |
Operating expenses including reimbursement/waiver | | | 1.39 | %(c) | | | 1.39 | % | | | 1.39 | % | | | 1.41 | %(d) | | | 1.39 | % | | | 1.39 | % |
Operating expenses excluding reimbursement/waiver | | | 2.20 | %(c) | | | 2.14 | % | | | 2.04 | % | | | 2.22 | % | | | 1.76 | % | | | 1.59 | % |
Portfolio Turnover Rate | | | 26 | %(b) | | | 72 | % | | | 88 | % | | | 150 | % | | | 102 | % | | | 129 | % |
(a) Per share amounts are based upon average shares outstanding.
(b) Not Annualized.
(c) Annualized.
(d) Effective May 1, 2012, the annual expense limitation rate changed from 1.39% to 1.49%. Effective September 1, 2012, the annual expense limitation rate changed from 1.49% to 1.39%.
| | | | |
| June 30, 2015 | | 110 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Emerging Markets Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Advisor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013(a) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Period Ended
December 31,
2010(b) | |
Net Asset Value, Beginning of Period | | $ | 10.68 | | | $ | 11.03 | | | $ | 10.98 | | | $ | 9.86 | | | $ | 21.34 | | | $ | 20.49 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.10 | (c) | | | 0.16 | (c) | | | 0.18 | (c) | | | 0.15 | (c) | | | 0.17 | (c) | | | 0.06 | |
Net realized and unrealized gain/(loss) on investments | | | (0.02 | ) | | | (0.30 | ) | | | 0.03 | | | | 1.67 | | | | (4.67 | ) | | | 4.78 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.08 | | | | (0.14 | ) | | | 0.21 | | | | 1.82 | | | | (4.50 | ) | | | 4.84 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | — | | | | (0.21 | ) | | | (0.16 | ) | | | (0.03 | ) | | | (0.63 | ) | | | (0.31 | ) |
From capital gains | | | — | | | | — | | | | — | | | | (0.67 | ) | | | (6.35 | ) | | | (3.68 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (0.21 | ) | | | (0.16 | ) | | | (0.70 | ) | | | (6.98 | ) | | | (3.99 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.08 | | | | (0.35 | ) | | | 0.05 | | | | 1.12 | | | | (11.48 | ) | | | 0.85 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 10.76 | | | $ | 10.68 | | | $ | 11.03 | | | $ | 10.98 | | | $ | 9.86 | | | $ | 21.34 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 0.75 | %(d) | | | (1.22 | )% | | | 1.90 | % | | | 18.71 | % | | | (21.96 | )% | | | 24.30 | %(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 913 | | | $ | 1,552 | | | $ | 1,253 | | | $ | 697 | | | $ | 180 | | | $ | 340 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 1.94 | %(e) | | | 1.40 | % | | | 1.60 | % | | | 1.42 | % | | | 0.86 | % | | | 0.35 | %(e) |
Operating expenses including reimbursement/waiver | | | 1.44 | %(e) | | | 1.44 | % | | | 1.43 | %(f) | | | 1.39 | %(g) | | | 1.39 | % | | | 1.39 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 2.25 | %(e) | | | 2.18 | % | | | 2.08 | % | | | 2.72 | % | | | 1.74 | % | | | 1.64 | %(e) |
Portfolio Turnover Rate | | | 26 | %(d) | | | 72 | % | | | 88 | % | | | 150 | % | | | 102 | % | | | 129 | %(h) |
(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 annual expense limitation rate changed from 1.39% to 1.44%.
(g) Effective May 1, 2012, the annual expense limitation rate changed from 1.39% to 1.49%. Effective September 1, 2012, the annual expense limitation rate changed from 1.49% to 1.39%.
(h) Portfolio turnover rate is calculated at the Fund level and represents the year ended December 31, 2010.
| | | | |
| See Notes to Financial Statements | | 111 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Global Dividend Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013(a) | | | Year Ended
December 31,
2012 | | | Period Ended
December 31,
2011(b) | |
Net Asset Value, Beginning of Period | | $ | 11.24 | | | $ | 12.07 | | | $ | 10.77 | | | $ | 10.37 | | | $ | 11.35 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.18 | | | | 0.44 | | | | 0.39 | | | | 0.43 | | | | 0.19 | |
Net realized and unrealized gain/(loss) on investments | | | 0.15 | | | | (0.55 | ) | | | 1.32 | | | | 0.49 | | | | (0.75 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.33 | | | | (0.11 | ) | | | 1.71 | | | | 0.92 | | | | (0.56 | ) |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.17 | ) | | | (0.47 | ) | | | (0.41 | ) | | | (0.48 | ) | | | (0.42 | ) |
From capital gains | | | — | | | | (0.25 | ) | | | — | | | | — | | | | — | |
Tax return of capital | | | — | | | | — | | | | — | | | | (0.04 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.17 | ) | | | (0.72 | ) | | | (0.41 | ) | | | (0.52 | ) | | | (0.42 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.16 | | | | (0.83 | ) | | | 1.30 | | | | 0.40 | | | | (0.98 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 11.40 | | | $ | 11.24 | | | $ | 12.07 | | | $ | 10.77 | | | $ | 10.37 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 2.91 | %(d) | | | (1.00 | )% | | | 16.10 | % | | | 9.02 | % | | | (4.98 | )%(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 248 | | | $ | 428 | | | $ | 458 | | | $ | 3,266 | | | $ | 63 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 3.11 | %(e) | | | 3.71 | % | | | 3.33 | % | | | 4.67 | % | | | 2.67 | %(e) |
Operating expenses including reimbursement/waiver | | | 1.34 | %(e) | | | 1.34 | % | | | 1.28 | %(f) | | | 1.26 | %(g) | | | 1.34 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 2.08 | %(e) | | | 2.01 | % | | | 1.75 | % | | | 1.96 | % | | | 1.95 | %(e) |
Portfolio Turnover Rate | | | 7 | %(d) | | | 72 | % | | | 142 | % | | | 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 annual expense limitation rate changed from 1.24% to 1.34%.
(g) Effective May 1, 2012, the annual expense limitation rate 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.
| | | | |
| June 30, 2015 | | 112 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Global Dividend Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013(a) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(b) | | | Year Ended
December 31,
2010 | |
Net Asset Value, Beginning of Period | | $ | 11.07 | | | $ | 11.91 | | | $ | 10.62 | | | $ | 10.24 | | | $ | 10.21 | | | $ | 9.04 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.18 | | | | 0.57 | | | | 0.47 | | | | 0.60 | | | | 0.35 | | | | 0.11 | |
Net realized and unrealized gain/(loss) on investments | | | 0.16 | | | | (0.65 | ) | | | 1.27 | | | | 0.34 | | | | 0.13 | | | | 1.15 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.34 | | | | (0.08 | ) | | | 1.74 | | | | 0.94 | | | | 0.48 | | | | 1.26 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.19 | ) | | | (0.51 | ) | | | (0.45 | ) | | | (0.52 | ) | | | (0.45 | ) | | | (0.09 | ) |
From capital gains | | | — | | | | (0.25 | ) | | | — | | | | — | | | | — | | | | — | |
Tax return of capital | | | — | | | | — | | | | — | | | | (0.04 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.19 | ) | | | (0.76 | ) | | | (0.45 | ) | | | (0.56 | ) | | | (0.45 | ) | | | (0.09 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.15 | | | | (0.84 | ) | | | 1.29 | | | | 0.38 | | | | 0.03 | | | | 1.17 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 11.22 | | | $ | 11.07 | | | $ | 11.91 | | | $ | 10.62 | | | $ | 10.24 | | | $ | 10.21 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 3.01 | %(d) | | | (0.75 | )% | | | 16.65 | % | | | 9.35 | % | | | 4.64 | % | | | 13.98 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 1,405 | | | $ | 1,908 | | | $ | 9,394 | | | $ | 9,756 | | | $ | 4,895 | | | $ | 2,898 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 3.26 | %(e) | | | 4.76 | % | | | 4.05 | % | | | 5.65 | % | | | 3.33 | % | | | 1.22 | % |
Operating expenses including reimbursement/waiver | | | 0.99 | %(e) | | | 0.99 | % | | | 0.96 | %(f) | | | 0.91 | %(g) | | | 0.99 | % | | | 0.99 | % |
Operating expenses excluding reimbursement/waiver | | | 1.74 | %(e) | | | 1.58 | % | | | 1.44 | % | | | 1.44 | % | | | 1.40 | % | | | 1.35 | % |
Portfolio Turnover Rate | | | 7 | %(d) | | | 72 | % | | | 142 | % | | | 53 | % | | | 101 | % | | | 73 | % |
(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 annual expense limitation rate changed from 0.89% to 0.99%.
(g) Effective May 1, 2012, the annual expense limitation rate changed from 0.99% to 0.89%.
| | | | |
| See Notes to Financial Statements | | 113 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Global Dividend Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013(a) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(b) | | | Year Ended
December 31,
2010 | |
Net Asset Value, Beginning of Period | | $ | 11.25 | | | $ | 12.08 | | | $ | 10.77 | | | $ | 10.38 | | | $ | 10.34 | | | $ | 9.17 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.17 | (c) | | | 0.43 | (c) | | | 0.42 | (c) | | | 0.51 | (c) | | | 0.30 | (c) | | | 0.07 | |
Net realized and unrealized gain/(loss) on investments | | | 0.14 | | | | (0.56 | ) | | | 1.29 | | | | 0.39 | | | | 0.12 | | | | 1.16 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.31 | | | | (0.13 | ) | | | 1.71 | | | | 0.90 | | | | 0.42 | | | | 1.23 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.16 | ) | | | (0.45 | ) | | | (0.40 | ) | | | (0.48 | ) | | | (0.38 | ) | | | (0.06 | ) |
From capital gains | | | — | | | | (0.25 | ) | | | — | | | | — | | | | — | | | | — | |
Tax return of capital | | | — | | | | — | | | | — | | | | (0.03 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.16 | ) | | | (0.70 | ) | | | (0.40 | ) | | | (0.51 | ) | | | (0.38 | ) | | | (0.06 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.15 | | | | (0.83 | ) | | | 1.31 | | | | 0.39 | | | | 0.04 | | | | 1.17 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 11.40 | | | $ | 11.25 | | | $ | 12.08 | | | $ | 10.77 | | | $ | 10.38 | | | $ | 10.34 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(d) | | | 2.75 | %(e) | | | (1.14 | )% | | | 16.02 | % | | | 8.78 | % | | | 4.09 | % | | | 13.45 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 10,897 | | | $ | 11,476 | | | $ | 11,630 | | | $ | 10,451 | | | $ | 9,369 | | | $ | 15,266 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 3.02 | %(f) | | | 3.57 | % | | | 3.57 | % | | | 4.71 | % | | | 2.83 | % | | | 0.75 | % |
Operating expenses including reimbursement/waiver | | | 1.49 | %(f) | | | 1.49 | % | | | 1.46 | %(g) | | | 1.42 | %(h) | | | 1.49 | % | | | 1.49 | % |
Operating expenses excluding reimbursement/waiver | | | 2.24 | %(f) | | | 2.17 | % | | | 1.94 | % | | | 1.93 | % | | | 1.87 | % | | | 1.85 | % |
Portfolio Turnover Rate | | | 7 | %(e) | | | 72 | % | | | 142 | % | | | 53 | % | | | 101 | % | | | 73 | % |
(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 annual expense limitation rate changed from 1.39% to 1.49%.
(h) Effective May 1, 2012, the annual expense limitation rate changed from 1.49% to 1.39%.
| | | | |
| June 30, 2015 | | 114 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward International Dividend Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(a) | |
Net Asset Value, Beginning of Period | | $ | 8.78 | | | $ | 9.76 | | | $ | 9.12 | | | $ | 7.86 | | | $ | 9.49 | | | $ | 8.48 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b) | | | 0.28 | | | | 0.50 | | | | 0.49 | | | | 0.60 | | | | 0.47 | | | | 0.20 | |
Net realized and unrealized gain/(loss) on investments | | | 0.06 | | | | (0.96 | ) | | | 0.59 | | | | 1.07 | | | | (1.61 | ) | | | 1.32 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.34 | | | | (0.46 | ) | | | 1.08 | | | | 1.67 | | | | (1.14 | ) | | | 1.52 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.22 | ) | | | (0.52 | ) | | | (0.44 | ) | | | (0.41 | ) | | | (0.49 | ) | | | (0.51 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.22 | ) | | | (0.52 | ) | | | (0.44 | ) | | | (0.41 | ) | | | (0.49 | ) | | | (0.51 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.12 | | | | (0.98 | ) | | | 0.64 | | | | 1.26 | | | | (1.63 | ) | | | 1.01 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 8.90 | | | $ | 8.78 | | | $ | 9.76 | | | $ | 9.12 | | | $ | 7.86 | | | $ | 9.49 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 3.83 | %(c) | | | (4.96 | )% | | | 12.14 | % | | | 21.54 | % | | | (12.45 | )% | | | 17.97 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 116,026 | | | $ | 140,810 | | | $ | 110,117 | | | $ | 48,875 | | | $ | 3,170 | | | $ | 4,100 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 6.44 | %(d) | | | 5.35 | % | | | 5.22 | % | | | 7.01 | % | | | 5.26 | % | | | 2.31 | % |
Operating expenses including reimbursement/waiver | | | 1.34 | %(d) | | | 1.34 | % | | | 1.34 | % | | | 1.36 | %(e) | | | 1.49 | % | | | 1.51 | %(f) |
Operating expenses excluding reimbursement/waiver | | | 1.46 | %(d) | | | 1.45 | % | | | 1.46 | % | | | 1.69 | % | | | 2.81 | % | | | 3.92 | % |
Ratios to Average Net Assets (including interest expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 6.32 | %(d) | | | 5.26 | % | | | 5.11 | % | | | n/a | | | | n/a | | | | n/a | |
Operating expenses including reimbursement/waiver | | | 1.46 | %(d) | | | 1.43 | % | | | 1.45 | % | | | n/a | | | | n/a | | | | n/a | |
Operating expenses excluding reimbursement/waiver | | | 1.58 | %(d) | | | 1.54 | % | | | 1.57 | % | | | n/a | | | | n/a | | | | n/a | |
Portfolio Turnover Rate | | | 72 | %(c) | | | 95 | % | | | 115 | % | | | 92 | % | | | 93 | % | | | 113 | % |
(a) Prior to May 1, 2010, the Forward International Dividend Fund was known as the Forward International Equity Fund.
(b) Per share amounts are based upon average shares outstanding.
(c) Not Annualized.
(d) Annualized.
(e) Effective May 1, 2012, the annual expense limitation rate changed from 1.49% to 1.34%.
(f) Effective May 1, 2010, the annual expense limitation rate changed from 1.34% to 1.60%. Effective December 1, 2010, the annual expense limitation rate changed from 1.60% to 1.49%.
| | | | |
| See Notes to Financial Statements | | 115 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward International Dividend Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(a) | |
Net Asset Value, Beginning of Period | | $ | 7.27 | | | $ | 8.17 | | | $ | 7.70 | | | $ | 6.70 | | | $ | 8.12 | | | $ | 7.23 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b) | | | 0.26 | | | | 0.45 | | | | 0.42 | | | | 0.57 | | | | 0.44 | | | | 0.21 | |
Net realized and unrealized gain/(loss) on investments | | | 0.04 | | | | (0.80 | ) | | | 0.52 | | | | 0.86 | | | | (1.37 | ) | | | 1.11 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.30 | | | | (0.35 | ) | | | 0.94 | | | | 1.43 | | | | (0.93 | ) | | | 1.32 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.24 | ) | | | (0.55 | ) | | | (0.47 | ) | | | (0.43 | ) | | | (0.49 | ) | | | (0.43 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.24 | ) | | | (0.55 | ) | | | (0.47 | ) | | | (0.43 | ) | | | (0.49 | ) | | | (0.43 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.06 | | | | (0.90 | ) | | | 0.47 | | | | 1.00 | | | | (1.42 | ) | | | 0.89 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 7.33 | | | $ | 7.27 | | | $ | 8.17 | | | $ | 7.70 | | | $ | 6.70 | | | $ | 8.12 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 4.00 | %(c) | | | (4.56 | )% | | | 12.46 | % | | | 21.90 | % | | | (12.01 | )% | | | 18.30 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 104,703 | | | $ | 84,982 | | | $ | 92,617 | | | $ | 82,719 | | | $ | 5,705 | | | $ | 1,721 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 7.00 | %(d) | | | 5.73 | % | | | 5.41 | % | | | 7.78 | % | | | 5.88 | % | | | 2.86 | % |
Operating expenses including reimbursement/waiver | | | 0.99 | %(d) | | | 0.99 | % | | | 0.99 | % | | | 1.01 | %(e) | | | 1.14 | % | | | 1.16 | %(f) |
Operating expenses excluding reimbursement/waiver | | | 1.11 | %(d) | | | 1.10 | % | | | 1.11 | % | | | 1.33 | % | | | 2.45 | % | | | 3.54 | % |
Ratios to Average Net Assets (including interest expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 6.88 | %(d) | | | 5.64 | % | | | 5.30 | % | | | n/a | | | | n/a | | | | n/a | |
Operating expenses including reimbursement/waiver | | | 1.11 | %(d) | | | 1.08 | % | | | 1.10 | % | | | n/a | | | | n/a | | | | n/a | |
Operating expenses excluding reimbursement/waiver | | | 1.23 | %(d) | | | 1.19 | % | | | 1.22 | % | | | n/a | | | | n/a | | | | n/a | |
Portfolio Turnover Rate | | | 72 | %(c) | | | 95 | % | | | 115 | % | | | 92 | % | | | 93 | % | | | 113 | % |
(a) Prior to May 1, 2010, the Forward International Dividend Fund was known as the Forward International Equity Fund.
(b) Per share amounts are based upon average shares outstanding.
(c) Not Annualized.
(d) Annualized.
(e) Effective May 1, 2012, the annual expense limitation rate changed from 1.14% to 0.99%.
(f) Effective May 1, 2010, the annual expense limitation rate changed from 0.99% to 1.25%. Effective December 1, 2010, the annual expense limitation rate changed from 1.25% to 1.14%.
| | | | |
| June 30, 2015 | | 116 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward International Dividend Fund
| | | | | | | | | | | | |
| | | Class A | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Period Ended
December 31,
2013(a) | |
Net Asset Value, Beginning of Period | | $ | 8.78 | | | $ | 9.76 | | | $ | 9.95 | |
Income/(Loss) from Operations: | | | | | | | | | | | | |
Net investment income(b) | | | 0.29 | | | | 0.48 | | | | 0.32 | |
Net realized and unrealized gain/(loss) on investments | | | 0.04 | | | | (0.95 | ) | | | (0.19 | ) |
| | | | | | | | | | | | |
Total from Investment Operations | | | 0.33 | | | | (0.47 | ) | | | 0.13 | |
| | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | |
From investment income | | | (0.21 | ) | | | (0.51 | ) | | | (0.32 | ) |
| | | | | | | | | | | | |
Total Distributions | | | (0.21 | ) | | | (0.51 | ) | | | (0.32 | ) |
| | | | | | | | | | �� | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.12 | | | | (0.98 | ) | | | (0.19 | ) |
| | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 8.90 | | | $ | 8.78 | | | $ | 9.76 | |
| | | | | | | | | | | | |
Total Return(c) | | | 3.76 | %(d) | | | (5.09 | )% | | | 1.45 | %(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 4,988 | | | $ | 4,046 | | | $ | 2,699 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 6.59 | %(e) | | | 5.16 | % | | | 5.16 | %(e) |
Operating expenses including reimbursement/waiver | | | 1.49 | %(e) | | | 1.49 | % | | | 1.49 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 1.61 | %(e) | | | 1.60 | % | | | 1.61 | %(e) |
Ratios to Average Net Assets (including interest expense): | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 6.47 | %(e) | | | 5.07 | % | | | 5.05 | %(e) |
Operating expenses including reimbursement/waiver | | | 1.61 | %(e) | | | 1.58 | % | | | 1.60 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 1.73 | %(e) | | | 1.69 | % | | | 1.72 | %(e) |
Portfolio Turnover Rate | | | 72 | %(d) | | | 95 | % | | | 115 | %(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 year ended December 31, 2013.
| | | | |
| See Notes to Financial Statements | | 117 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward International Dividend Fund
| | | | | | | | | | | | | | | | |
| | | Class C | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Period Ended
December 31,
2012(a) | |
Net Asset Value, Beginning of Period | | $ | 8.76 | | | $ | 9.74 | | | $ | 9.11 | | | $ | 8.31 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | |
Net investment income(b) | | | 0.26 | | | | 0.44 | | | | 0.45 | | | | 0.21 | |
Net realized and unrealized gain/(loss) on investments | | | 0.06 | | | | (0.95 | ) | | | 0.57 | | | | 0.83 | |
| | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.32 | | | | (0.51 | ) | | | 1.02 | | | | 1.04 | |
| | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | |
From investment income | | | (0.20 | ) | | | (0.47 | ) | | | (0.39 | ) | | | (0.24 | ) |
| | | | | | | | | | | | | | | | |
Total Distributions | | | (0.20 | ) | | | (0.47 | ) | | | (0.39 | ) | | | (0.24 | ) |
| | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.12 | | | | (0.98 | ) | | | 0.63 | | | | 0.80 | |
| | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 8.88 | | | $ | 8.76 | | | $ | 9.74 | | | $ | 9.11 | |
| | | | | | | | | | | | | | | | |
Total Return(c) | | | 3.58 | %(d) | | | (5.52 | )% | | | 11.45 | % | | | 12.56 | %(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 11,633 | | | $ | 10,293 | | | $ | 7,629 | | | $ | 879 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 5.99 | %(e) | | | 4.74 | % | | | 4.84 | % | | | 5.90 | %(e) |
Operating expenses including reimbursement/waiver | | | 1.94 | %(e) | | | 1.94 | % | | | 1.94 | % | | | 1.94 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 2.06 | %(e) | | | 2.05 | % | | | 2.07 | % | | | 2.30 | %(e) |
Ratios to Average Net Assets (including interest expense): | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 5.87 | %(e) | | | 4.65 | % | | | 4.73 | % | | | n/a | |
Operating expenses including reimbursement/waiver | | | 2.06 | %(e) | | | 2.03 | % | | | 2.05 | % | | | n/a | |
Operating expenses excluding reimbursement/waiver | | | 2.18 | %(e) | | | 2.14 | % | | | 2.17 | % | | | n/a | |
Portfolio Turnover Rate | | | 72 | %(d) | | | 95 | % | | | 115 | % | | | 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.
| | | | |
| June 30, 2015 | | 118 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward International Dividend Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Advisor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013(a) | | | Year Ended
December 31,
2012 | | | Period Ended
December 31,
2011(b) | |
Net Asset Value, Beginning of Period | | $ | 7.27 | | | $ | 8.17 | | | $ | 7.70 | | | $ | 6.70 | | | $ | 8.56 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.25 | | | | 0.42 | | | | 0.44 | | | | 0.61 | | | | 0.25 | |
Net realized and unrealized gain/(loss) on investments | | | 0.04 | | | | (0.77 | ) | | | 0.50 | | | | 0.82 | | | | (1.64 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.29 | | | | (0.35 | ) | | | 0.94 | | | | 1.43 | | | | (1.39 | ) |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.23 | ) | | | (0.55 | ) | | | (0.47 | ) | | | (0.43 | ) | | | (0.47 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.23 | ) | | | (0.55 | ) | | | (0.47 | ) | | | (0.43 | ) | | | (0.47 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.06 | | | | (0.90 | ) | | | 0.47 | | | | 1.00 | | | | (1.86 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 7.33 | | | $ | 7.27 | | | $ | 8.17 | | | $ | 7.70 | | | $ | 6.70 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 3.98 | %(d) | | | (4.60 | )% | | | 12.42 | % | | | 21.90 | % | | | (16.68 | )%(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 40,499 | | | $ | 72,641 | | | $ | 64,973 | | | $ | 19,269 | | | $ | 22 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 6.80 | %(e) | | | 5.38 | % | | | 5.61 | % | | | 8.25 | % | | | 5.48 | %(e) |
Operating expenses including reimbursement/waiver | | | 1.04 | %(e) | | | 1.04 | % | | | 1.03 | %(f) | | | 0.99 | %(g) | | | 1.14 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 1.16 | %(e) | | | 1.15 | % | | | 1.15 | % | | | 1.32 | % | | | 2.50 | %(e) |
Ratios to Average Net Assets (including interest expense): | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 6.68 | %(e) | | | 5.29 | % | | | 5.50 | % | | | n/a | | | | n/a | |
Operating expenses including reimbursement/waiver | | | 1.16 | %(e) | | | 1.13 | % | | | 1.14 | %(f) | | | n/a | | | | n/a | |
Operating expenses excluding reimbursement/waiver | | | 1.28 | %(e) | | | 1.24 | % | | | 1.26 | % | | | n/a | | | | n/a | |
Portfolio Turnover Rate | | | 72 | %(d) | | | 95 | % | | | 115 | % | | | 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 annual expense limitation rate changed from 0.99% to 1.04%.
(g) Effective May 1, 2012, the annual expense limitation rate 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.
| | | | |
| See Notes to Financial Statements | | 119 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward International Small Companies Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | |
Net Asset Value, Beginning of Period | | $ | 15.86 | | | $ | 17.39 | | | $ | 13.85 | | | $ | 11.57 | | | $ | 14.54 | | | $ | 12.15 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.09 | (a) | | | 0.10 | (a) | | | 0.07 | (a) | | | 0.08 | (a) | | | 0.09 | (a) | | | 0.10 | |
Net realized and unrealized gain/(loss) on investments | | | 1.91 | | | | (1.58 | ) | | | 3.80 | | | | 2.43 | | | | (2.93 | ) | | | 2.41 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 2.00 | | | | (1.48 | ) | | | 3.87 | | | | 2.51 | | | | (2.84 | ) | | | 2.51 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | — | | | | (0.05 | ) | | | (0.33 | ) | | | (0.23 | ) | | | (0.13 | ) | | | (0.12 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (0.05 | ) | | | (0.33 | ) | | | (0.23 | ) | | | (0.13 | ) | | | (0.12 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 2.00 | | | | (1.53 | ) | | | 3.54 | | | | 2.28 | | | | (2.97 | ) | | | 2.39 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 17.86 | | | $ | 15.86 | | | $ | 17.39 | | | $ | 13.85 | | | $ | 11.57 | | | $ | 14.54 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 12.61 | %(b) | | | (8.51 | )% | | | 27.95 | % | | | 21.70 | % | | | (19.49 | )% | | | 20.69 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 33,695 | | | $ | 26,760 | | | $ | 38,523 | | | $ | 37,843 | | | $ | 51,814 | | | $ | 95,936 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment income including reimbursement/waiver | | | 1.09 | %(c) | | | 0.57 | % | | | 0.42 | % | | | 0.66 | % | | | 0.65 | % | | | 0.60 | % |
Operating expenses including reimbursement/waiver | | | 1.64 | %(c) | | | 1.65 | %(d) | | | 1.69 | % | | | 1.70 | %(e) | | | 1.62 | % | | | 1.64 | % |
Operating expenses excluding reimbursement/waiver | | | 1.68 | %(c) | | | 1.67 | % | | | n/a | | | | n/a | | | | n/a | | | | n/a | |
Portfolio Turnover Rate | | | 35 | %(b) | | | 65 | % | | | 86 | % | | | 109 | % | | | 79 | % | | | 82 | % |
(a) Per share amounts are based upon average shares outstanding.
(b) Not Annualized.
(c) Annualized.
(d) Effective May 1, 2014, the Advisor agreed to limit expenses at 1.64%.
(e) Affiliated management fee waiver represents less than 0.005%.
| | | | |
| June 30, 2015 | | 120 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward International Small Companies Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | |
Net Asset Value, Beginning of Period | | $ | 15.83 | | | $ | 17.38 | | | $ | 13.84 | | | $ | 11.57 | | | $ | 14.55 | | | $ | 12.16 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.11 | (a) | | | 0.15 | (a) | | | 0.12 | (a) | | | 0.15 | (a) | | | 0.13 | (a) | | | 0.12 | |
Net realized and unrealized gain/(loss) on investments | | | 1.92 | | | | (1.58 | ) | | | 3.81 | | | | 2.40 | | | | (2.92 | ) | | | 2.44 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 2.03 | | | | (1.43 | ) | | | 3.93 | | | | 2.55 | | | | (2.79 | ) | | | 2.56 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | — | | | | (0.12 | ) | | | (0.39 | ) | | | (0.28 | ) | | | (0.19 | ) | | | (0.17 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (0.12 | ) | | | (0.39 | ) | | | (0.28 | ) | | | (0.19 | ) | | | (0.17 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 2.03 | | | | (1.55 | ) | | | 3.54 | | | | 2.27 | | | | (2.98 | ) | | | 2.39 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 17.86 | | | $ | 15.83 | | | $ | 17.38 | | | $ | 13.84 | | | $ | 11.57 | | | $ | 14.55 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 12.75 | %(b) | | | (8.17 | )% | | | 28.42 | % | | | 22.03 | % | | | (19.18 | )% | | | 21.10 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 144,985 | | | $ | 134,290 | | | $ | 166,601 | | | $ | 107,578 | | | $ | 280,888 | | | $ | 436,307 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment income including reimbursement/waiver | | | 1.33 | %(c) | | | 0.89 | % | | | 0.78 | % | | | 1.14 | % | | | 0.94 | % | | | 0.94 | % |
Operating expenses including reimbursement/waiver | | | 1.29 | %(c) | | | 1.30 | %(d) | | | 1.34 | % | | | 1.34 | %(e) | | | 1.27 | % | | | 1.27 | % |
Operating expenses excluding reimbursement/waiver | | | 1.33 | %(c) | | | 1.32 | % | | | n/a | | | | n/a | | | | n/a | | | | n/a | |
Portfolio Turnover Rate | | | 35 | %(b) | | | 65 | % | | | 86 | % | | | 109 | % | | | 79 | % | | | 82 | % |
(a) Per share amounts are based upon average shares outstanding.
(b) Not Annualized.
(c) Annualized.
(d) Effective May 1, 2014, the Advisor agreed to limit expenses at 1.29%.
(e) Affiliated management fee waiver represents less than 0.005%.
| | | | |
| See Notes to Financial Statements | | 121 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward International Small Companies Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Advisor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013(a) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Period Ended
December 31,
2010(b) | |
Net Asset Value, Beginning of Period | | $ | 15.85 | | | $ | 17.39 | | | $ | 13.84 | | | $ | 11.57 | | | $ | 14.55 | | | $ | 12.04 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.12 | (c) | | | 0.11 | (c) | | | 0.15 | (c) | | | 0.17 | (c) | | | 0.15 | (c) | | | 0.13 | |
Net realized and unrealized gain/(loss) on investments | | | 1.90 | | | | (1.53 | ) | | | 3.77 | | | | 2.38 | | | | (2.94 | ) | | | 2.55 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 2.02 | | | | (1.42 | ) | | | 3.92 | | | | 2.55 | | | | (2.79 | ) | | | 2.68 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | — | | | | (0.12 | ) | | | (0.37 | ) | | | (0.28 | ) | | | (0.19 | ) | | | (0.17 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (0.12 | ) | | | (0.37 | ) | | | (0.28 | ) | | | (0.19 | ) | | | (0.17 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 2.02 | | | | (1.54 | ) | | | 3.55 | | | | 2.27 | | | | (2.98 | ) | | | 2.51 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 17.87 | | | $ | 15.85 | | | $ | 17.39 | | | $ | 13.84 | | | $ | 11.57 | | | $ | 14.55 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 12.74 | %(d) | | | (8.19 | )% | | | 28.36 | % | | | 22.08 | % | | | (19.18 | )% | | | 22.30 | %(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 3,054 | | | $ | 2,522 | | | $ | 3,299 | | | $ | 9,698 | | | $ | 59 | | | $ | 72 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 1.36 | %(e) | | | 0.64 | % | | | 0.97 | % | | | 1.32 | % | | | 1.09 | % | | | 1.19 | %(e) |
Operating expenses including reimbursement/waiver | | | 1.34 | %(e) | | | 1.34 | %(f) | | | 1.37 | % | | | 1.37 | %(g) | | | 1.27 | % | | | 1.29 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 1.38 | %(e) | | | 1.38 | % | | | n/a | | | | n/a | | | | n/a | | | | n/a | |
Portfolio Turnover Rate | | | 35 | %(d) | | | 65 | % | | | 86 | % | | | 109 | % | | | 79 | % | | | 82 | %(h) |
(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) Effective May 1, 2014, the Advisor agreed to limit expenses at 1.34%.
(g) Affiliated management fee waiver represents less than 0.005%.
(h) Portfolio turnover rate is calculated at the Fund level and represents the year ended December 31, 2010.
| | | | |
| June 30, 2015 | | 122 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Select EM Dividend Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Period Ended
December 31,
2011(a) | |
Net Asset Value, Beginning of Period | | $ | 19.73 | | | $ | 22.44 | | | $ | 23.70 | | | $ | 19.50 | | | $ | 25.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income(b) | | | 0.49 | | | | 1.06 | | | | 1.37 | | | | 1.23 | | | | 0.58 | |
Net realized and unrealized gain/(loss) on investments | | | (0.37 | ) | | | (2.49 | ) | | | (1.50 | ) | | | 4.07 | | | | (5.52 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.12 | | | | (1.43 | ) | | | (0.13 | ) | | | 5.30 | | | | (4.94 | ) |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.37 | ) | | | (1.28 | ) | | | (1.13 | ) | | | (1.09 | ) | | | (0.56 | ) |
Tax return of capital | | | — | | | | — | | | | — | | | | (0.01 | ) | | | (0.00 | )(c) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.37 | ) | | | (1.28 | ) | | | (1.13 | ) | | | (1.10 | ) | | | (0.56 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.25 | ) | | | (2.71 | ) | | | (1.26 | ) | | | 4.20 | | | | (5.50 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 19.48 | | | $ | 19.73 | | | $ | 22.44 | | | $ | 23.70 | | | $ | 19.50 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 0.61 | %(d) | | | (6.78 | )% | | | (0.62 | )% | | | 27.81 | % | | | (19.87 | )%(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 40,673 | | | $ | 28,180 | | | $ | 23,348 | | | $ | 13,591 | | | $ | 1,026 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 5.22 | %(e) | | | 4.77 | % | | | 6.01 | % | | | 5.58 | % | | | 4.12 | %(e) |
Operating expenses including reimbursement/waiver | | | 1.74 | %(e) | | | 1.74 | % | | | 1.75 | %(f) | | | 1.79 | % | | | 1.79 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 2.05 | %(e) | | | 1.85 | % | | | 1.97 | % | | | 2.52 | % | | | 2.96 | %(e) |
Ratios to Average Net Assets (including interest expense): | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 5.03 | %(e) | | | 4.67 | % | | | 5.89 | % | | | 5.52 | % | | | 4.12 | %(e) |
Operating expenses including reimbursement/waiver | | | 1.93 | %(e) | | | 1.84 | % | | | 1.88 | %(f) | | | 1.85 | % | | | 1.79 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 2.24 | %(e) | | | 1.95 | % | | | 2.09 | % | | | 2.59 | % | | | 2.96 | %(e) |
Portfolio Turnover Rate | | | 65 | %(d) | | | 185 | % | | | 210 | % | | | 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 annual expense limitation rate changed from 1.79% to 1.74%.
| | | | |
| See Notes to Financial Statements | | 123 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Select EM Dividend Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Period Ended
December 31,
2011(a) | |
Net Asset Value, Beginning of Period | | $ | 19.72 | | | $ | 22.44 | | | $ | 23.68 | | | $ | 19.48 | | | $ | 24.37 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income(b) | | | 0.53 | | | | 1.28 | | | | 1.26 | | | | 1.43 | | | | 0.76 | |
Net realized and unrealized gain/(loss) on investments | | | (0.37 | ) | | | (2.64 | ) | | | (1.29 | ) | | | 3.97 | | | | (5.03 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.16 | | | | (1.36 | ) | | | (0.03 | ) | | | 5.40 | | | | (4.27 | ) |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.40 | ) | | | (1.36 | ) | | | (1.21 | ) | | | (1.19 | ) | | | (0.62 | ) |
Tax return of capital | | | — | | | | — | | | | — | | | | (0.01 | ) | | | (0.00 | )(c) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.40 | ) | | | (1.36 | ) | | | (1.21 | ) | | | (1.20 | ) | | | (0.62 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.24 | ) | | | (2.72 | ) | | | (1.24 | ) | | | 4.20 | | | | (4.89 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 19.48 | | | $ | 19.72 | | | $ | 22.44 | | | $ | 23.68 | | | $ | 19.48 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 0.80 | %(d) | | | (6.50 | )% | | | (0.19 | )% | | | 28.38 | % | | | (17.60 | )%(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 16,815 | | | $ | 19,144 | | | $ | 22,453 | | | $ | 32,070 | | | $ | 4,244 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 5.49 | %(e) | | | 5.80 | % | | | 5.50 | % | | | 6.45 | % | | | 5.23 | %(e) |
Operating expenses including reimbursement/waiver | | | 1.39 | %(e) | | | 1.39 | % | | | 1.39 | % | | | 1.39 | % | | | 1.39 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 1.70 | %(e) | | | 1.56 | % | | | 1.61 | % | | | 1.99 | % | | | 2.19 | %(e) |
Ratios to Average Net Assets (including interest expense): | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 5.30 | %(e) | | | 5.70 | % | | | 5.38 | % | | | 6.38 | % | | | 5.23 | %(e) |
Operating expenses including reimbursement/waiver | | | 1.58 | %(e) | | | 1.49 | % | | | 1.51 | % | | | 1.45 | % | | | 1.39 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 1.89 | %(e) | | | 1.66 | % | | | 1.73 | % | | | 2.05 | % | | | 2.19 | %(e) |
Portfolio Turnover Rate | | | 65 | %(d) | | | 185 | % | | | 210 | % | | | 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.
| | | | |
| June 30, 2015 | | 124 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Select EM Dividend Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Class C | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Period Ended
December 31,
2011(a) | |
Net Asset Value, Beginning of Period | | $ | 19.70 | | | $ | 22.41 | | | $ | 23.69 | | | $ | 19.49 | | | $ | 25.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income(b) | | | 0.47 | | | | 1.15 | | | | 1.18 | | | | 1.18 | | | | 0.53 | |
Net realized and unrealized gain/(loss) on investments | | | (0.41 | ) | | | (2.71 | ) | | | (1.46 | ) | | | 4.00 | | | | (5.57 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.06 | | | | (1.56 | ) | | | (0.28 | ) | | | 5.18 | | | | (5.04 | ) |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.32 | ) | | | (1.15 | ) | | | (1.00 | ) | | | (0.97 | ) | | | (0.47 | ) |
Tax return of capital | | | — | | | | — | | | | — | | | | (0.01 | ) | | | (0.00 | )(c) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.32 | ) | | | (1.15 | ) | | | (1.00 | ) | | | (0.98 | ) | | | (0.47 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.26 | ) | | | (2.71 | ) | | | (1.28 | ) | | | 4.20 | | | | (5.51 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 19.44 | | | $ | 19.70 | | | $ | 22.41 | | | $ | 23.69 | | | $ | 19.49 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return(d) | | | 0.32 | %(e) | | | (7.34 | )% | | | (1.27 | )% | | | 27.14 | % | | | (20.20 | )%(e) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 1,663 | | | $ | 1,487 | | | $ | 1,390 | | | $ | 709 | | | $ | 526 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 4.90 | %(f) | | | 5.29 | % | | | 5.19 | % | | | 5.43 | % | | | 3.72 | %(f) |
Operating expenses including reimbursement/waiver | | | 2.34 | %(f) | | | 2.34 | % | | | 2.35 | %(g) | | | 2.39 | % | | | 2.39 | %(f) |
Operating expenses excluding reimbursement/waiver | | | 2.66 | %(f) | | | 2.55 | % | | | 2.60 | % | | | 3.42 | % | | | 3.42 | %(f) |
Ratios to Average Net Assets (including interest expense): | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 4.71 | %(f) | | | 5.19 | % | | | 5.07 | % | | | 5.36 | % | | | 3.72 | %(f) |
Operating expenses including reimbursement/waiver | | | 2.53 | %(f) | | | 2.44 | % | | | 2.47 | %(g) | | | 2.45 | % | | | 2.39 | %(f) |
Operating expenses excluding reimbursement/waiver | | | 2.85 | %(f) | | | 2.65 | % | | | 2.72 | % | | | 3.48 | % | | | 3.42 | %(f) |
Portfolio Turnover Rate | | | 65 | %(e) | | | 185 | % | | | 210 | % | | | 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 annual expense limitation rate changed from 2.39% to 2.34%.
| | | | |
| See Notes to Financial Statements | | 125 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Select EM Dividend Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Advisor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013(a) | | | Year Ended
December 31,
2012 | | | Period Ended
December 31,
2011(b) | |
Net Asset Value, Beginning of Period | | $ | 19.72 | | | $ | 22.43 | | | $ | 23.69 | | | $ | 19.48 | | | $ | 25.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.55 | | | | 1.34 | | | | 1.34 | | | | 1.40 | | | | 0.66 | |
Net realized and unrealized gain/(loss) on investments | | | (0.40 | ) | | | (2.70 | ) | | | (1.40 | ) | | | 4.01 | | | | (5.56 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.15 | | | | (1.36 | ) | | | (0.06 | ) | | | 5.41 | | | | (4.90 | ) |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.40 | ) | | | (1.35 | ) | | | (1.20 | ) | | | (1.19 | ) | | | (0.62 | ) |
Tax return of capital | | | — | | | | — | | | | — | | | | (0.01 | ) | | | (0.00 | )(d) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.40 | ) | | | (1.35 | ) | | | (1.20 | ) | | | (1.20 | ) | | | (0.62 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.25 | ) | | | (2.71 | ) | | | (1.26 | ) | | | 4.21 | | | | (5.52 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 19.47 | | | $ | 19.72 | | | $ | 22.43 | | | $ | 23.69 | | | $ | 19.48 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 0.73 | %(e) | | | (6.50 | )% | | | (0.31 | )% | | | 28.41 | % | | | (19.66 | )%(e) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 1,233 | | | $ | 1,149 | | | $ | 1,041 | | | $ | 1,214 | | | $ | 610 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 5.71 | %(f) | | | 6.13 | % | | | 5.80 | % | | | 6.43 | % | | | 4.60 | %(f) |
Operating expenses including reimbursement/waiver | | | 1.44 | %(f) | | | 1.44 | % | | | 1.42 | %(g) | | | 1.39 | % | | | 1.39 | %(f) |
Operating expenses excluding reimbursement/waiver | | | 1.75 | %(f) | | | 1.65 | % | | | 1.67 | % | | | 2.41 | % | | | 2.47 | %(f) |
Ratios to Average Net Assets (including interest expense): | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 5.52 | %(f) | | | 6.03 | % | | | 5.67 | % | | | 6.37 | % | | | 4.60 | %(f) |
Operating expenses including reimbursement/waiver | | | 1.63 | %(f) | | | 1.54 | % | | | 1.54 | %(g) | | | 1.45 | % | | | 1.39 | %(f) |
Operating expenses excluding reimbursement/waiver | | | 1.94 | %(f) | | | 1.75 | % | | | 1.79 | % | | | 2.47 | % | | | 2.47 | %(f) |
Portfolio Turnover Rate | | | 65 | %(e) | | | 185 | % | | | 210 | % | | | 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 annual expense limitation rate changed from 1.39% to 1.44%.
| | | | |
| June 30, 2015 | | 126 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Small Cap Equity Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | |
Net Asset Value, Beginning of Period | | $ | 22.34 | | | $ | 22.01 | | | $ | 15.98 | | | $ | 14.40 | | | $ | 16.71 | | | $ | 14.45 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment loss | | | (0.08 | )(a) | | | (0.14 | )(a) | | | (0.15 | )(a) | | | (0.04 | )(a) | | | (0.14 | )(a) | | | (0.41 | ) |
Net realized and unrealized gain/(loss) on investments | | | 0.75 | | | | 0.47 | | | | 6.18 | | | | 1.62 | | | | (2.17 | ) | | | 2.67 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.67 | | | | 0.33 | | | | 6.03 | | | | 1.58 | | | | (2.31 | ) | | | 2.26 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.67 | | | | 0.33 | | | | 6.03 | | | | 1.58 | | | | (2.31 | ) | | | 2.26 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 23.01 | | | $ | 22.34 | | | $ | 22.01 | | | $ | 15.98 | | | $ | 14.40 | | | $ | 16.71 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 3.00 | %(b) | | | 1.50 | % | | | 37.73 | % | | | 10.97 | % | | | (13.82 | )% | | | 15.64 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 20,594 | | | $ | 22,004 | | | $ | 26,287 | | | $ | 23,374 | | | $ | 29,976 | | | $ | 110,293 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment loss including reimbursement/
waiver | | | (0.75 | )%(c) | | | (0.65 | )% | | | (0.79 | )% | | | (0.27 | )% | | | (0.88 | )% | | | (1.13 | )% |
Operating expenses including reimbursement/
waiver | | | 1.49 | %(c)(e) | | | 1.47 | %(d)(e) | | | 1.42 | %(e)(f) | | | 1.35 | %(e)(g) | | | 1.34 | %(h) | | | 1.69 | % |
Operating expenses excluding reimbursement/
waiver | | | 1.87 | %(c) | | | 1.82 | % | | | 1.72 | % | | | 1.65 | % | | | 1.60 | % | | | n/a | |
Portfolio Turnover Rate | | | 69 | %(b) | | | 72 | % | | | 115 | % | | | 136 | % | | | 234 | % | | | 162 | % |
(a) Per share amounts are based upon average shares outstanding.
(b) Not Annualized.
(c) Annualized.
(d) Effective May 1, 2014, the annual expense limitation rate changed from 1.44% to 1.49%
(e) Affiliated management fee waiver represents less than 0.005%.
(f) Effective May 1, 2013, the annual expense limitation rate changed from 1.39% to 1.44%.
(g) Effective May 1, 2012, the annual expense limitation rate changed from 1.29% to 1.39%.
(h) Effective February 1, 2011, the Advisor agreed to limit expenses at 1.29%.
| | | | |
| See Notes to Financial Statements | | 127 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Small Cap Equity Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | |
Net Asset Value, Beginning of Period | | $ | 23.59 | | | $ | 23.17 | | | $ | 16.77 | | | $ | 15.07 | | | $ | 17.37 | | | $ | 14.98 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment loss | | | (0.05 | )(a) | | | (0.08 | )(a) | | | (0.10 | )(a) | | | (0.02 | )(a) | | | (0.11 | )(a) | | | (0.11 | ) |
Net realized and unrealized gain/(loss) on investments | | | 0.80 | | | | 0.50 | | | | 6.50 | | | | 1.72 | | | | (2.19 | ) | | | 2.50 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.75 | | | | 0.42 | | | | 6.40 | | | | 1.70 | | | | (2.30 | ) | | | 2.39 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.75 | | | | 0.42 | | | | 6.40 | | | | 1.70 | | | | (2.30 | ) | | | 2.39 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 24.34 | | | $ | 23.59 | | | $ | 23.17 | | | $ | 16.77 | | | $ | 15.07 | | | $ | 17.37 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 3.18 | %(b) | | | 1.81 | % | | | 38.08 | % | | | 11.35 | % | | | (13.24 | )% | | | 15.96 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 3,717 | | | $ | 4,213 | | | $ | 6,724 | | | $ | 7,397 | | | $ | 17,812 | | | $ | 229,643 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment loss including reimbursement/waiver | | | (0.40 | )%(c) | | | (0.33 | )% | | | (0.50 | )% | | | (0.11 | )% | | | (0.62 | )% | | | (0.82 | )% |
Operating expenses including reimbursement/waiver | | | 1.14 | %(c)(d) | | | 1.14 | %(d) | | | 1.12 | %(d)(e) | | | 1.04 | %(d)(f) | | | 1.03 | %(g) | | | 1.38 | % |
Operating expenses excluding reimbursement/waiver | | | 1.52 | %(c) | | | 1.48 | % | | | 1.42 | % | | | 1.35 | % | | | 1.32 | % | | | n/a | |
Portfolio Turnover Rate | | | 69 | %(b) | | | 72 | % | | | 115 | % | | | 136 | % | | | 234 | % | | | 162 | % |
(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 May 1, 2013, the annual expense limitation rate changed from 1.09% to 1.14%.
(f) Effective May 1, 2012, the annual expense limitation rate changed from 0.99% to 1.09%.
(g) Effective February 1, 2011, the Advisor agreed to limit expenses at 0.99%.
| | | | |
| June 30, 2015 | | 128 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Small Cap Equity Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Advisor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013(a) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Period Ended
December 31,
2010(b) | |
Net Asset Value, Beginning of Period | | $ | 23.47 | | | $ | 23.06 | | | $ | 16.70 | | | $ | 15.01 | | | $ | 17.37 | | | $ | 14.30 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | | (0.05 | )(c) | | | (0.09 | )(c) | | | (0.11 | )(c) | | | 0.03 | (c) | | | (0.09 | )(c) | | | (0.07 | ) |
Net realized and unrealized gain/(loss) on investments | | | 0.79 | | | | 0.50 | | | | 6.47 | | | | 1.66 | | | | (2.27 | ) | | | 3.14 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.74 | | | | 0.41 | | | | 6.36 | | | | 1.69 | | | | (2.36 | ) | | | 3.07 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.74 | | | | 0.41 | | | | 6.36 | | | | 1.69 | | | | (2.36 | ) | | | 3.07 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 24.21 | | | $ | 23.47 | | | $ | 23.06 | | | $ | 16.70 | | | $ | 15.01 | | | $ | 17.37 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 3.15 | %(d) | | | 1.78 | % | | | 38.00 | % | | | 11.33 | % | | | (13.59 | )% | | | 21.47 | %(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 2,566 | | | $ | 2,751 | | | $ | 3,088 | | | $ | 2,685 | | | $ | 154 | | | $ | 103 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) including reimbursement/waiver | | | (0.45 | )%(e) | | | (0.37 | )% | | | (0.53 | )% | | | 0.21 | % | | | (0.57 | )% | | | (0.80 | )%(e) |
Operating expenses including reimbursement/waiver | | | 1.19 | %(e)(f) | | | 1.19 | %(f) | | | 1.16 | %(f)(g) | | | 1.05 | %(f)(h) | | | 1.03 | %(i) | | | 1.41 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 1.57 | %(e) | | | 1.54 | % | | | 1.45 | % | | | 1.36 | % | | | 1.15 | % | | | n/a | |
Portfolio Turnover Rate | | | 69 | %(d) | | | 72 | % | | | 115 | % | | | 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 annual expense limitation rate changed from 1.09% to 1.19%.
(h) Effective May 1, 2012, the annual expense limitation rate 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.
| | | | |
| See Notes to Financial Statements | | 129 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Tactical Enhanced Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(a) | |
Net Asset Value, Beginning of Period | | $ | 23.93 | | | $ | 25.67 | | | $ | 25.72 | | | $ | 24.04 | | | $ | 25.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment loss(b) | | | (0.19 | ) | | | (0.17 | ) | | | (0.46 | ) | | | (0.36 | ) | | | (0.66 | ) |
Net realized and unrealized gain/(loss) on investments | | | (1.25 | ) | | | 0.31 | | | | 0.49 | | | | 3.33 | | | | (0.25 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (1.44 | ) | | | 0.14 | | | | 0.03 | | | | 2.97 | | | | (0.91 | ) |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
From capital gains | | | — | | | | (1.88 | ) | | | (0.08 | ) | | | (1.29 | ) | | | (0.05 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (1.88 | ) | | | (0.08 | ) | | | (1.29 | ) | | | (0.05 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (1.44 | ) | | | (1.74 | ) | | | (0.05 | ) | | | 1.68 | | | | (0.96 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 22.49 | | | $ | 23.93 | | | $ | 25.67 | | | $ | 25.72 | | | $ | 24.04 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | (6.02 | )%(c) | | | 0.40 | % | | | 0.12 | % | | | 12.45 | % | | | (3.65 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 10,548 | | | $ | 13,651 | | | $ | 11,197 | | | $ | 16,949 | | | $ | 12,098 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | |
Net investment loss including reimbursement/waiver/recoupment of past waived fees by advisor | | | (1.69 | )%(d) | | | (0.65 | )% | | | (1.77 | )% | | | (1.41 | )% | | | (2.69 | )% |
Operating expenses including reimbursement/waiver/recoupment of past waived fees by advisor | | | 1.74 | %(d) | | | 1.77 | %(e) | | | 1.84 | % | | | 2.25 | %(f) | | | 2.71 | %(g) |
Operating expenses excluding reimbursement/waiver | | | 2.20 | %(d) | | | 1.87 | % | | | 1.84 | % | | | 2.46 | % | | | 2.91 | % |
Portfolio Turnover Rate | | | 1,071 | %(c) | | | 9,956 | % | | | 11,621 | % | | | 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 May 1, 2014, the expense limitation agreement expired and effective August 1, 2014, the Advisor agreed to limit expenses at 1.74%.
(f) Effective November 1, 2012, the annual expense limitation rate changed from 2.34% to 1.84%.
(g) Effective October 1, 2011, the annual expense limitation rate changed from 2.84% to 2.34%.
| | | | |
| June 30, 2015 | | 130 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Tactical Enhanced Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(a) | |
Net Asset Value, Beginning of Period | | $ | 24.23 | | | $ | 25.88 | | | $ | 25.83 | | | $ | 24.12 | | | $ | 25.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment loss(b) | | | (0.16 | ) | | | (0.12 | ) | | | (0.37 | ) | | | (0.23 | ) | | | (0.57 | ) |
Net realized and unrealized gain/(loss) on investments | | | (1.27 | ) | | | 0.35 | | | | 0.50 | | | | 3.30 | | | | (0.26 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (1.43 | ) | | | 0.23 | | | | 0.13 | | | | 3.07 | | | | (0.83 | ) |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
From capital gains | | | — | | | | (1.88 | ) | | | (0.08 | ) | | | (1.36 | ) | | | (0.05 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (1.88 | ) | | | (0.08 | ) | | | (1.36 | ) | | | (0.05 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (1.43 | ) | | | (1.65 | ) | | | 0.05 | | | | 1.71 | | | | (0.88 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 22.80 | | | $ | 24.23 | | | $ | 25.88 | | | $ | 25.83 | | | $ | 24.12 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | (5.90 | )%(c) | | | 0.75 | % | | | 0.51 | % | | | 12.79 | % | | | (3.29 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 9,476 | | | $ | 11,543 | | | $ | 28,406 | | | $ | 17,804 | | | $ | 11,816 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | |
Net investment loss including reimbursement/waiver/recoupment of past waived fees by advisor | | | (1.34 | )%(d) | | | (0.45 | )% | | | (1.42 | )% | | | (0.89 | )% | | | (2.33 | )% |
Operating expenses including reimbursement/waiver/recoupment of past waived fees by advisor | | | 1.39 | %(d) | | | 1.41 | %(e) | | | 1.49 | % | | | 1.88 | %(f) | | | 2.36 | %(g) |
Operating expenses excluding reimbursement/waiver | | | 1.85 | %(d) | | | 1.51 | % | | | 1.49 | % | | | 2.11 | % | | | 2.71 | % |
Portfolio Turnover Rate | | | 1,071 | %(c) | | | 9,956 | % | | | 11,621 | % | | | 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 May 1, 2014, the expense limitation agreement expired and effective August 1, 2014 the Advisor agreed to limit expenses at 1.39%.
(f) Effective November 1, 2012, the annual expense limitation rate changed from 1.99% to 1.49%.
(g) Effective October 1, 2011, the annual expense limitation rate changed from 2.49% to 1.99%.
| | | | |
| See Notes to Financial Statements | | 131 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Tactical Enhanced Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Class A | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(a) | |
Net Asset Value, Beginning of Period | | $ | 23.79 | | | $ | 25.57 | | | $ | 25.66 | | | $ | 23.98 | | | $ | 25.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment loss(b) | | | (0.21 | ) | | | (0.35 | ) | | | (0.50 | ) | | | (0.41 | ) | | | (0.69 | ) |
Net realized and unrealized gain/(loss) on investments | | | (1.24 | ) | | | 0.45 | | | | 0.49 | | | | 3.34 | | | | (0.28 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (1.45 | ) | | | 0.10 | | | | (0.01 | ) | | | 2.93 | | | | (0.97 | ) |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
From capital gains | | | — | | | | (1.88 | ) | | | (0.08 | ) | | | (1.25 | ) | | | (0.05 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (1.88 | ) | | | (0.08 | ) | | | (1.25 | ) | | | (0.05 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (1.45 | ) | | | (1.78 | ) | | | (0.09 | ) | | | 1.68 | | | | (1.02 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 22.34 | | | $ | 23.79 | | | $ | 25.57 | | | $ | 25.66 | | | $ | 23.98 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return(c) | | | (6.09 | )%(d) | | | 0.24 | % | | | (0.03 | )% | | | 12.31 | % | | | (3.90 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 483 | | | $ | 759 | | | $ | 3,351 | | | $ | 3,602 | | | $ | 2,578 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | |
Net investment loss including reimbursement/waiver/recoupment of past waived fees by advisor | | | (1.83 | )%(e) | | | (1.32 | )% | | | (1.92 | )% | | | (1.61 | )% | | | (2.83 | )% |
Operating expenses including reimbursement/waiver/recoupment of past waived fees by advisor | | | 1.89 | %(e) | | | 1.92 | %(f) | | | 1.99 | % | | | 2.40 | %(g) | | | 2.86 | %(h) |
Operating expenses excluding reimbursement/waiver | | | 2.35 | %(e) | | | 1.96 | % | | | 1.99 | % | | | 2.61 | % | | | 3.10 | % |
Portfolio Turnover Rate | | | 1,071 | %(d) | | | 9,956 | % | | | 11,621 | % | | | 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 May 1, 2014, the expense limitation agreement expired and effective August 1, 2014, the Advisor agreed to limit expenses at 1.89%.
(g) Effective November 1, 2012, the annual expense limitation rate changed from 2.49% to 1.99%.
(h) Effective October 1, 2011, the annual expense limitation rate changed from 2.99% to 2.49%.
| | | | |
| June 30, 2015 | | 132 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Tactical Enhanced Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Class C | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(a) | |
Net Asset Value, Beginning of Period | | $ | 23.42 | | | $ | 25.31 | | | $ | 25.51 | | | $ | 23.88 | | | $ | 25.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment loss(b) | | | (0.26 | ) | | | (0.35 | ) | | | (0.61 | ) | | | (0.51 | ) | | | (0.81 | ) |
Net realized and unrealized gain/(loss) on investments | | | (1.22 | ) | | | 0.34 | | | | 0.49 | | | | 3.30 | | | | (0.26 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (1.48 | ) | | | (0.01 | ) | | | (0.12 | ) | | | 2.79 | | | | (1.07 | ) |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
From capital gains | | | — | | | | (1.88 | ) | | | (0.08 | ) | | | (1.16 | ) | | | (0.05 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (1.88 | ) | | | (0.08 | ) | | | (1.16 | ) | | | (0.05 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (1.48 | ) | | | (1.89 | ) | | | (0.20 | ) | | | 1.63 | | | | (1.12 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 21.94 | | | $ | 23.42 | | | $ | 25.31 | | | $ | 25.51 | | | $ | 23.88 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return(c) | | | (6.32 | )%(d) | | | (0.19 | )% | | | (0.47 | )% | | | 11.77 | % | | | (4.29 | )% |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 1,109 | | | $ | 1,609 | | | $ | 1,955 | | | $ | 3,247 | | | $ | 2,163 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | |
Net investment loss including reimbursement/waiver/recoupment of past waived fees by advisor | | | (2.29 | )%(e) | | | (1.35 | )% | | | (2.37 | )% | | | (2.00 | )% | | | (3.29 | )% |
Operating expenses including reimbursement/waiver/recoupment of past waived fees by advisor | | | 2.34 | %(e) | | | 2.37 | %(f) | | | 2.44 | % | | | 2.84 | %(g) | | | 3.31 | %(h) |
Operating expenses excluding reimbursement/waiver | | | 2.80 | %(e) | | | 2.46 | % | | | 2.44 | % | | | 3.06 | % | | | 3.53 | % |
Portfolio Turnover Rate | | | 1,071 | %(d) | | | 9,956 | % | | | 11,621 | % | | | 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 May 1, 2014, the expense limitation agreement expired and effective August 1, 2014, the Advisor agreed to limit expenses at 2.34%.
(g) Effective November 1, 2012, the annual expense limitation rate changed from 2.94% to 2.44%.
(h) Effective October 1, 2011, the annual expense limitation rate changed from 3.44% to 2.94%.
| | | | |
| See Notes to Financial Statements | | 133 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Tactical Enhanced Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Advisor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013(a) | | | Year Ended
December 31,
2012 | | | Period Ended
December 31,
2011(b) | |
Net Asset Value, Beginning of Period | | $ | 24.18 | | | $ | 25.85 | | | $ | 25.79 | | | $ | 24.12 | | | $ | 25.56 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment loss(c) | | | (0.17 | ) | | | (0.13 | ) | | | (0.36 | ) | | | (0.02 | ) | | | (0.40 | ) |
Net realized and unrealized gain/(loss) on investments | | | (1.28 | ) | | | 0.34 | | | | 0.50 | | | | 3.09 | | | | (0.99 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (1.45 | ) | | | 0.21 | | | | 0.14 | | | | 3.07 | | | | (1.39 | ) |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
From capital gains | | | — | | | | (1.88 | ) | | | (0.08 | ) | | | (1.40 | ) | | | (0.05 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (1.88 | ) | | | (0.08 | ) | | | (1.40 | ) | | | (0.05 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (1.45 | ) | | | (1.67 | ) | | | 0.06 | | | | 1.67 | | | | (1.44 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 22.73 | | | $ | 24.18 | | | $ | 25.85 | | | $ | 25.79 | | | $ | 24.12 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | (6.00 | )%(d) | | | 0.67 | % | | | 0.55 | % | | | 12.78 | % | | | (5.41 | )%(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 248 | | | $ | 3,017 | | | $ | 74,041 | | | $ | 91 | | | $ | 84 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | |
Net investment loss including reimbursement/waiver/recoupment of past waived fees by advisor | | | (1.40 | )%(e) | | | (0.50 | )% | | | (1.41 | )% | | | (0.09 | )% | | | (2.28 | )%(e) |
Operating expenses including reimbursement/waiver/recoupment of past waived fees by advisor | | | 1.44 | %(e) | | | 1.47 | %(f) | | | 1.47 | %(g) | | | 1.79 | %(h) | | | 2.31 | %(e)(i) |
Operating expenses excluding reimbursement/waiver | | | 1.83 | %(e) | | | 1.48 | % | | | 1.47 | % | | | 1.98 | % | | | 2.38 | %(e) |
Portfolio Turnover Rate | | | 1,071 | %(d) | | | 9,956 | % | | | 11,621 | % | | | 6,025 | % | | | 0 | %(j) |
(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, 2014, the expense limitation agreement expired and effective August 1, 2014, the Advisor agreed to limit expenses at 1.44%.
(g) Effective May 1, 2013, the annual expense limitation rate changed from 1.49% to 1.54%.
(h) Effective November 1, 2012, the annual expense limitation rate changed from 1.99% to 1.49%.
(i) Effective October 1, 2011, the annual expense limitation rate changed from 2.49% to 1.99%.
(j) Portfolio turnover rate is calculated at the Fund level and represents the year ended December 31, 2011.
| | | | |
| June 30, 2015 | | 134 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Tactical Growth Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | |
Net Asset Value, Beginning of Period | | $ | 25.55 | | | $ | 26.17 | | | $ | 25.06 | | | $ | 24.73 | | | $ | 26.26 | | | $ | 25.69 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment loss | | | (0.07 | )(a) | | | (0.30 | )(a) | | | (0.40 | )(a) | | | (0.39 | )(a) | | | (0.38 | )(a) | | | (0.24 | ) |
Net realized and unrealized gain/(loss) on investments | | | (0.43 | ) | | | 0.81 | | | | 4.20 | | | | 1.57 | | | | (1.02 | ) | | | 0.81 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.50 | ) | | | 0.51 | | | | 3.80 | | | | 1.18 | | | | (1.40 | ) | | | 0.57 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From capital gains | | | — | | | | (1.13 | ) | | | (2.69 | ) | | | (0.85 | ) | | | (0.13 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (1.13 | ) | | | (2.69 | ) | | | (0.85 | ) | | | (0.13 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.50 | ) | | | (0.62 | ) | | | 1.11 | | | | 0.33 | | | | (1.53 | ) | | | 0.57 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 25.05 | | | $ | 25.55 | | | $ | 26.17 | | | $ | 25.06 | | | $ | 24.73 | | | $ | 26.26 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | (1.96 | )%(b) | | | 1.98 | % | | | 15.31 | % | | | 4.81 | % | | | (5.36 | )% | | | 2.22 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 118,611 | | | $ | 138,946 | | | $ | 164,319 | | | $ | 187,066 | | | $ | 251,617 | | | $ | 313,875 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment loss including reimbursement/waiver | | | (0.53 | )%(c) | | | (1.17 | )% | | | (1.48 | )% | | | (1.49 | )% | | | (1.44 | )% | | | (1.05 | )% |
Operating expenses including reimbursement/waiver | | | 1.75 | %(c) | | | 1.74 | % | | | 1.74 | % | | | 1.72 | % | | | 1.80 | %(d) | | | 1.80 | % |
Operating expenses excluding reimbursement/waiver | | | 1.75 | %(c) | | | 1.74 | % | | | 1.74 | % | | | 1.72 | % | | | 1.80 | % | | | 1.80 | % |
Portfolio Turnover Rate | | | 184 | %(b) | | | 607 | % | | | 1,797 | % | | | 574 | % | | | 387 | % | | | 762 | % |
(a) Per share amounts are based upon average shares outstanding.
(b) Not Annualized.
(c) Annualized.
(d) Effective May 1, 2011, the expense limitation agreement expired.
| | | | |
| See Notes to Financial Statements | | 135 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Tactical Growth Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | |
Net Asset Value, Beginning of Period | | $ | 26.04 | | | $ | 26.56 | | | $ | 25.34 | | | $ | 24.91 | | | $ | 26.37 | | | $ | 25.71 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment loss | | | (0.03 | )(a) | | | (0.22 | )(a) | | | (0.31 | )(a) | | | (0.30 | )(a) | | | (0.30 | )(a) | | | (0.17 | ) |
Net realized and unrealized gain/(loss) on investments | | | (0.43 | ) | | | 0.83 | | | | 4.26 | | | | 1.58 | | | | (1.03 | ) | | | 0.83 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.46 | ) | | | 0.61 | | | | 3.95 | | | | 1.28 | | | | (1.33 | ) | | | 0.66 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From capital gains | | | — | | | | (1.13 | ) | | | (2.73 | ) | | | (0.85 | ) | | | (0.13 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (1.13 | ) | | | (2.73 | ) | | | (0.85 | ) | | | (0.13 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.46 | ) | | | (0.52 | ) | | | 1.22 | | | | 0.43 | | | | (1.46 | ) | | | 0.66 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 25.58 | | | $ | 26.04 | | | $ | 26.56 | | | $ | 25.34 | | | $ | 24.91 | | | $ | 26.37 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | (1.77 | )%(b) | | | 2.33 | % | | | 15.74 | % | | | 5.14 | % | | | (5.04 | )% | | | 2.57 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 41,094 | | | $ | 53,957 | | | $ | 62,760 | | | $ | 61,602 | | | $ | 70,110 | | | $ | 151,485 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment loss including reimbursement/waiver | | | (0.25 | )%(c) | | | (0.82 | )% | | | (1.13 | )% | | | (1.14 | )% | | | (1.14 | )% | | | (0.70 | )% |
Operating expenses including reimbursement/waiver | | | 1.40 | %(c) | | | 1.39 | % | | | 1.39 | % | | | 1.38 | % | | | 1.45 | %(d) | | | 1.44 | % |
Operating expenses excluding reimbursement/waiver | | | 1.40 | %(c) | | | 1.39 | % | | | 1.39 | % | | | 1.38 | % | | | 1.45 | % | | | 1.44 | % |
Portfolio Turnover Rate | | | 184 | %(b) | | | 607 | % | | | 1,797 | % | | | 574 | % | | | 387 | % | | | 762 | % |
(a) Per share amounts are based upon average shares outstanding.
(b) Not Annualized.
(c) Annualized.
(d) Effective May 1, 2011, the expense limitation agreement expired.
| | | | |
| June 30, 2015 | | 136 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Tactical Growth Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Period Ended
December 31,
2010(a) | |
Net Asset Value, Beginning of Period | | $ | 25.30 | | | $ | 25.96 | | | $ | 24.92 | | | $ | 24.62 | | | $ | 26.19 | | | $ | 26.19 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment loss | | | (0.09 | )(b) | | | (0.35 | )(b) | | | (0.43 | )(b) | | | (0.43 | )(b) | | | (0.41 | )(b) | | | (0.10 | ) |
Net realized and unrealized gain/(loss) on investments | | | (0.42 | ) | | | 0.82 | | | | 4.16 | | | | 1.58 | | | | (1.03 | ) | | | 0.10 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.51 | ) | | | 0.47 | | | | 3.73 | | | | 1.15 | | | | (1.44 | ) | | | 0.00 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From capital gains | | | — | | | | (1.13 | ) | | | (2.69 | ) | | | (0.85 | ) | | | (0.13 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (1.13 | ) | | | (2.69 | ) | | | (0.85 | ) | | | (0.13 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.51 | ) | | | (0.66 | ) | | | 1.04 | | | | 0.30 | | | | (1.57 | ) | | | 0.00 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 24.79 | | | $ | 25.30 | | | $ | 25.96 | | | $ | 24.92 | | | $ | 24.62 | | | $ | 26.19 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(c) | | | (2.02 | )%(d) | | | 1.84 | % | | | 15.11 | % | | | 4.67 | % | | | (5.49 | )% | | | 0.00 | %(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 51,527 | | | $ | 59,769 | | | $ | 109,402 | | | $ | 112,734 | | | $ | 161,901 | | | $ | 74,910 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment loss including reimbursement/waiver | | | (0.71 | )%(e) | | | (1.38 | )% | | | (1.63 | )% | | | (1.65 | )% | | | (1.58 | )% | | | (0.99 | )%(e) |
Operating expenses including reimbursement/waiver | | | 1.90 | %(e) | | | 1.88 | % | | | 1.89 | % | | | 1.88 | % | | | 1.94 | %(f) | | | 2.00 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 1.90 | %(e) | | | 1.88 | % | | | 1.89 | % | | | 1.88 | % | | | 1.94 | % | | | 2.00 | %(e) |
Portfolio Turnover Rate | | | 184 | %(d) | | | 607 | % | | | 1,797 | % | | | 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 expense limitation agreement expired.
(g) Portfolio turnover rate is calculated at the Fund level and represents the year ended December 31, 2010.
| | | | |
| See Notes to Financial Statements | | 137 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Tactical Growth Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class C | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | |
Net Asset Value, Beginning of Period | | $ | 24.63 | | | $ | 25.42 | | | $ | 24.55 | | | $ | 24.39 | | | $ | 26.06 | | | $ | 25.65 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment loss | | | (0.14 | )(a) | | | (0.44 | )(a) | | | (0.54 | )(a) | | | (0.53 | )(a) | | | (0.53 | )(a) | | | (0.22 | ) |
Net realized and unrealized gain/(loss) on investments | | | (0.41 | ) | | | 0.78 | | | | 4.10 | | | | 1.54 | | | | (1.01 | ) | | | 0.63 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.55 | ) | | | 0.34 | | | | 3.56 | | | | 1.01 | | | | (1.54 | ) | | | 0.41 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From capital gains | | | — | | | | (1.13 | ) | | | (2.69 | ) | | | (0.85 | ) | | | (0.13 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (1.13 | ) | | | (2.69 | ) | | | (0.85 | ) | | | (0.13 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.55 | ) | | | (0.79 | ) | | | 0.87 | | | | 0.16 | | | | (1.67 | ) | | | 0.41 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 24.08 | | | $ | 24.63 | | | $ | 25.42 | | | $ | 24.55 | | | $ | 24.39 | | | $ | 26.06 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(b) | | | (2.23 | )%(c) | | | 1.36 | % | | | 14.65 | % | | | 4.14 | % | | | (5.90 | )% | | | 1.60 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 67,272 | | | $ | 85,792 | | | $ | 96,193 | | | $ | 115,442 | | | $ | 139,604 | | | $ | 119,659 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment loss including reimbursement/waiver | | | (1.19 | )%(d) | | | (1.76 | )% | | | (2.09 | )% | | | (2.09 | )% | | | (2.04 | )% | | | (1.57 | )% |
Operating expenses including reimbursement/waiver | | | 2.35 | %(d) | | | 2.34 | % | | | 2.34 | % | | | 2.32 | % | | | 2.39 | %(e) | | | 2.41 | % |
Operating expenses excluding reimbursement/waiver | | | 2.35 | %(d) | | | 2.34 | % | | | 2.34 | % | | | 2.32 | % | | | 2.39 | % | | | 2.41 | % |
Portfolio Turnover Rate | | | 184 | %(c) | | | 607 | % | | | 1,797 | % | | | 574 | % | | | 387 | % | | | 762 | % |
(a) Per share amounts are based upon average shares outstanding.
(b) Total return does not reflect the effect of sales charges.
(c) Not Annualized.
(d) Annualized.
(e) Effective May 1, 2011, the expense limitation agreement expired.
| | | | |
| June 30, 2015 | | 138 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Tactical Growth Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Advisor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013(a) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Period Ended
December 31,
2010(b) | |
Net Asset Value, Beginning of Period | | $ | 26.04 | | | $ | 26.57 | | | $ | 25.35 | | | $ | 24.92 | | | $ | 26.37 | | | $ | 25.58 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment loss | | | (0.04 | )(c) | | | (0.22 | )(c) | | | (0.31 | )(c) | | | (0.29 | )(c) | | | (0.28 | )(c) | | | (0.07 | ) |
Net realized and unrealized gain/(loss) on investments | | | (0.43 | ) | | | 0.82 | | | | 4.25 | | | | 1.57 | | | | (1.04 | ) | | | 0.86 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.47 | ) | | | 0.60 | | | | 3.94 | | | | 1.28 | | | | (1.32 | ) | | | 0.79 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From capital gains | | | — | | | | (1.13 | ) | | | (2.72 | ) | | | (0.85 | ) | | | (0.13 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (1.13 | ) | | | (2.72 | ) | | | (0.85 | ) | | | (0.13 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.47 | ) | | | (0.53 | ) | | | 1.22 | | | | 0.43 | | | | (1.45 | ) | | | 0.79 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 25.57 | | | $ | 26.04 | | | $ | 26.57 | | | $ | 25.35 | | | $ | 24.92 | | | $ | 26.37 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | (1.80 | )%(d) | | | 2.30 | % | | | 15.70 | % | | | 5.13 | % | | | (5.00 | )% | | | 3.09 | %(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 408,694 | | | $ | 521,267 | | | $ | 509,404 | | | $ | 447,928 | | | $ | 288,948 | | | $ | 197,655 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment loss including reimbursement/waiver | | | (0.28 | )%(e) | | | (0.85 | )% | | | (1.16 | )% | | | (1.11 | )% | | | (1.08 | )% | | | (0.57 | )%(e) |
Operating expenses including reimbursement/waiver | | | 1.45 | %(e) | | | 1.44 | % | | | 1.43 | % | | | 1.37 | % | | | 1.44 | %(f) | | | 1.49 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 1.45 | %(e) | | | 1.44 | % | | | 1.43 | % | | | 1.37 | % | | | 1.44 | % | | | 1.49 | %(e) |
Portfolio Turnover Rate | | | 184 | %(d) | | | 607 | % | | | 1,797 | % | | | 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 expense limitation agreement expired.
(g) Portfolio turnover rate is calculated at the Fund level and represents the year ended December 31, 2010.
| | | | |
| See Notes to Financial Statements | | 139 | | June 30, 2015 |
Consolidated Financial Highlights
For a share outstanding throughout the periods presented.
Forward Commodity Long/Short Strategy Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited)(a) | | | Year Ended
December 31,
2014(a) | | | Year Ended
December 31,
2013(a) | | | Year Ended
December 31,
2012(a) | | | Year Ended
December 31,
2011(a)(b) | |
Net Asset Value, Beginning of Period | | $ | 21.11 | | | $ | 21.07 | | | $ | 20.21 | | | $ | 27.02 | | | $ | 25.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment loss(c) | | | (0.11 | ) | | | (0.18 | ) | | | (0.22 | ) | | | (0.23 | ) | | | (0.20 | ) |
Net realized and unrealized gain/(loss) on investments | | | (2.36 | ) | | | 0.22 | | | | 2.04 | | | | (6.58 | ) | | | 2.61 | |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (2.47 | ) | | | 0.04 | | | | 1.82 | | | | (6.81 | ) | | | 2.41 | |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
From investment income | | | — | | | | — | | | | (0.95 | ) | | | — | | | | (0.39 | ) |
Tax return of capital | | | — | | | | — | | | | (0.01 | ) | | | — | | | | (0.00 | )(d) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | — | | | | (0.96 | ) | | | — | | | | (0.39 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (2.47 | ) | | | 0.04 | | | | 0.86 | | | | (6.81 | ) | | | 2.02 | |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 18.64 | | | $ | 21.11 | | | $ | 21.07 | | | $ | 20.21 | | | $ | 27.02 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | (11.70 | )%(e) | | | 0.19 | % | | | 9.04 | % | | | (25.20 | )% | | | 9.66 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 17,042 | | | $ | 18,418 | | | $ | 24,649 | | | $ | 22,093 | | | $ | 48,141 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | |
Net investment loss including reimbursement/waiver/recoupment of past waived fees by advisor | | | (1.08 | )%(f) | | | (0.89 | )% | | | (1.03 | )% | | | (0.93 | )% | | | (0.74 | )% |
Operating expenses including reimbursement/waiver/recoupment of past waived fees by advisor | | | 2.11 | %(f) | | | 1.82 | % | | | 1.77 | % | | | 1.70 | %(g) | | | 1.87 | % |
Operating expenses excluding reimbursement/waiver | | | 2.11 | %(f) | | | 1.82 | % | | | 1.77 | % | | | 1.70 | % | | | 1.90 | % |
Portfolio Turnover Rate | | | 20 | %(e) | | | 41 | % | | | 59 | % | | | 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 expense limitation agreement expired.
| | | | |
| June 30, 2015 | | 140 | | See Notes to Financial Statements |
Consolidated Financial Highlights
For a share outstanding throughout the periods presented.
Forward Commodity Long/Short Strategy Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited)(a) | | | Year Ended
December 31,
2014(a) | | | Year Ended
December 31,
2013(a) | | | Year Ended
December 31,
2012(a) | | | Year Ended
December 31,
2011(a)(b) | |
Net Asset Value, Beginning of Period | | $ | 21.32 | | | $ | 21.20 | | | $ | 20.33 | | | $ | 27.06 | | | $ | 25.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment loss(c) | | | (0.07 | ) | | | (0.11 | ) | | | (0.14 | ) | | | (0.14 | ) | | | (0.12 | ) |
Net realized and unrealized gain/(loss) on investments | | | (2.39 | ) | | | 0.23 | | | | 2.03 | | | | (6.59 | ) | | | 2.61 | |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (2.46 | ) | | | 0.12 | | | | 1.89 | | | | (6.73 | ) | | | 2.49 | |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
From investment income | | | — | | | | — | | | | (1.01 | ) | | | — | | | | (0.43 | ) |
Tax return of capital | | | — | | | | — | | | | (0.01 | ) | | | — | | | | (0.00 | )(d) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | — | | | | (1.02 | ) | | | — | | | | (0.43 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (2.46 | ) | | | 0.12 | | | | 0.87 | | | | (6.73 | ) | | | 2.06 | |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 18.86 | | | $ | 21.32 | | | $ | 21.20 | | | $ | 20.33 | | | $ | 27.06 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | (11.54 | )%(e) | | | 0.57 | % | | | 9.36 | % | | | (24.87 | )% | | | 9.97 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 8,898 | | | $ | 19,801 | | | $ | 29,198 | | | $ | 49,467 | | | $ | 66,255 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | |
Net investment loss including reimbursement/waiver/recoupment of past waived fees by advisor | | | (0.73 | )%(f) | | | (0.54 | )% | | | (0.68 | )% | | | (0.57 | )% | | | (0.46 | )% |
Operating expenses including reimbursement/waiver/recoupment of past waived fees by advisor | | | 1.74 | %(f) | | | 1.46 | % | | | 1.41 | % | | | 1.35 | %(g) | | | 1.52 | % |
Operating expenses excluding reimbursement/waiver | | | 1.74 | %(f) | | | 1.46 | % | | | 1.41 | % | | | 1.35 | % | | | 1.55 | % |
Portfolio Turnover Rate | | | 20 | %(e) | | | 41 | % | | | 59 | % | | | 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 expense limitation agreement expired.
| | | | |
| See Notes to Financial Statements | | 141 | | June 30, 2015 |
Consolidated Financial Highlights
For a share outstanding throughout the periods presented.
Forward Commodity Long/Short Strategy Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Class C | |
| | | Six Months Ended
June 30, 2015
(Unaudited)(a) | | | Year Ended
December 31,
2014(a) | | | Year Ended
December 31,
2013(a) | | | Year Ended
December 31,
2012(a) | | | Period Ended
December 31,
2011(a)(b) | |
Net Asset Value, Beginning of Period | | $ | 20.80 | | | $ | 20.89 | | | $ | 20.04 | | | $ | 26.95 | | | $ | 28.49 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment loss(c) | | | (0.16 | ) | | | (0.30 | ) | | | (0.34 | ) | | | (0.36 | ) | | | (0.25 | ) |
Net realized and unrealized gain/(loss) on investments | | | (2.33 | ) | | | 0.21 | | | | 2.01 | | | | (6.55 | ) | | | (0.97 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (2.49 | ) | | | (0.09 | ) | | | 1.67 | | | | (6.91 | ) | | | (1.22 | ) |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
From investment income | | | — | | | | — | | | | (0.81 | ) | | | — | | | | (0.32 | ) |
Tax return of capital | | | — | | | | — | | | | (0.01 | ) | | | — | | | | (0.00 | )(d) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | — | | | | (0.82 | ) | | | — | | | | (0.32 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (2.49 | ) | | | (0.09 | ) | | | 0.85 | | | | (6.91 | ) | | | (1.54 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 18.31 | | | $ | 20.80 | | | $ | 20.89 | | | $ | 20.04 | | | $ | 26.95 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return(e) | | | (11.97 | )%(f) | | | (0.43 | )% | | | 8.38 | % | | | (25.61 | )% | | | (4.32 | )%(f) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 2,417 | | | $ | 3,521 | | | $ | 4,798 | | | $ | 5,540 | | | $ | 5,180 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | |
Net investment loss including reimbursement/waiver/recoupment of past waived fees by advisor | | | (1.68 | )%(g) | | | (1.49 | )% | | | (1.62 | )% | | | (1.52 | )% | | | (1.40 | )%(g) |
Operating expenses including reimbursement/waiver/recoupment of past waived fees by advisor | | | 2.70 | %(g) | | | 2.41 | % | | | 2.36 | % | | | 2.31 | %(h) | | | 2.47 | %(g) |
Operating expenses excluding reimbursement/waiver | | | 2.70 | %(g) | | | 2.41 | % | | | 2.36 | % | | | 2.31 | % | | | 2.49 | %(g) |
Portfolio Turnover Rate | | | 20 | %(f) | | | 41 | % | | | 59 | % | | | 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 expense limitation agreement expired.
(i) Portfolio turnover rate is calculated at the Fund level and represents the year ended December 31, 2011.
| | | | |
| June 30, 2015 | | 142 | | See Notes to Financial Statements |
Consolidated Financial Highlights
For a share outstanding throughout the periods presented.
Forward Commodity Long/Short Strategy Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Advisor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited)(a) | | | Year Ended
December 31,
2014(a) | | | Year Ended
December 31,
2013(a)(b) | | | Year Ended
December 31,
2012(a) | | | Period Ended
December 31,
2011(a)(c) | |
Net Asset Value, Beginning of Period | | $ | 21.22 | | | $ | 21.12 | | | $ | 20.27 | | | $ | 26.99 | | | $ | 26.66 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment loss(d) | | | (0.08 | ) | | | (0.12 | ) | | | (0.15 | ) | | | (0.13 | ) | | | (0.01 | ) |
Net realized and unrealized gain/(loss) on investments | | | (2.37 | ) | | | 0.22 | | | | 2.03 | | | | (6.59 | ) | | | 0.70 | |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (2.45 | ) | | | 0.10 | | | | 1.88 | | | | (6.72 | ) | | | 0.69 | |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
From investment income | | | — | | | | — | | | | (1.02 | ) | | | — | | | | (0.36 | ) |
Tax return of capital | | | — | | | | — | | | | (0.01 | ) | | | — | | | | (0.00 | )(e) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | — | | | | (1.03 | ) | | | — | | | | (0.36 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (2.45 | ) | | | 0.10 | | | | 0.85 | | | | (6.72 | ) | | | 0.33 | |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 18.77 | | | $ | 21.22 | | | $ | 21.12 | | | $ | 20.27 | | | $ | 26.99 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | (11.55 | )%(f) | | | 0.47 | % | | | 9.32 | % | | | (25.12 | )% | | | 2.91 | %(f) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 11,060 | | | $ | 14,343 | | | $ | 50,007 | | | $ | 34,297 | | | $ | 1,728 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | |
Net investment loss including reimbursement/waiver | | | (0.78 | )%(g) | | | (0.59 | )% | | | (0.70 | )% | | | (0.56 | )% | | | (0.27 | )%(g) |
Operating expenses including reimbursement/waiver | | | 1.80 | %(g) | | | 1.51 | % | | | 1.44 | % | | | 1.37 | %(h) | | | 1.52 | %(g) |
Operating expenses excluding reimbursement/waiver | | | 1.80 | %(g) | | | 1.51 | % | | | 1.44 | % | | | 1.37 | % | | | 3.19 | %(g) |
Portfolio Turnover Rate | | | 20 | %(f) | | | 41 | % | | | 59 | % | | | 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 expense limitation agreement expired.
(i) Portfolio turnover rate is calculated at the Fund level and represents the year ended December 31, 2011.
| | | | |
| See Notes to Financial Statements | | 143 | | June 30, 2015 |
Consolidated Financial Highlights
For a share outstanding throughout the periods presented.
Forward Commodity Long/Short Strategy Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Class Z | |
| | | Six Months Ended
June 30, 2015
(Unaudited)(a) | | | Year Ended
December 31,
2014(a) | | | Year Ended
December 31,
2013(a) | | | Year Ended
December 31,
2012(a) | | | Year Ended
December 31,
2011(a)(b) | |
Net Asset Value, Beginning of Period | | $ | 21.31 | | | $ | 21.17 | | | $ | 20.31 | | | $ | 27.03 | | | $ | 25.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment loss(c) | | | (0.07 | ) | | | (0.10 | ) | | | (0.13 | ) | | | (0.14 | ) | | | (0.02 | ) |
Net realized and unrealized gain/(loss) on investments | | | (2.38 | ) | | | 0.24 | | | | 2.03 | | | | (6.58 | ) | | | 2.49 | |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (2.45 | ) | | | 0.14 | | | | 1.90 | | | | (6.72 | ) | | | 2.47 | |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
From investment income | | | — | | | | — | | | | (1.03 | ) | | | — | | | | (0.44 | ) |
Tax return of capital | | | — | | | | — | | | | (0.01 | ) | | | — | | | | (0.00 | )(d) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | — | | | | (1.04 | ) | | | — | | | | (0.44 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (2.45 | ) | | | 0.14 | | | | 0.86 | | | | (6.72 | ) | | | 2.03 | |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 18.86 | | | $ | 21.31 | | | $ | 21.17 | | | $ | 20.31 | | | $ | 27.03 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | (11.50 | )%(e) | | | 0.66 | % | | | 9.41 | % | | | (24.86 | )% | | | 9.89 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 3,076 | | | $ | 3,920 | | | $ | 6,626 | | | $ | 5,756 | | | $ | 10,798 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | |
Net investment loss including reimbursement/waiver/recoupment of past waived fees by advisor | | | (0.68 | )%(f) | | | (0.49 | )% | | | (0.63 | )% | | | (0.56 | )% | | | (0.06 | )% |
Operating expenses including reimbursement/waiver/recoupment of past waived fees by advisor | | | 1.71 | %(f) | | | 1.41 | % | | | 1.36 | % | | | 1.33 | %(g) | | | 1.44 | % |
Operating expenses excluding reimbursement/waiver | | | 1.71 | %(f) | | | 1.41 | % | | | 1.36 | % | | | 1.33 | % | | | 1.45 | % |
Portfolio Turnover Rate | | | 20 | %(e) | | | 41 | % | | | 59 | % | | | 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 expense limitation agreement expired.
| | | | |
| June 30, 2015 | | 144 | | 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, 2015, the Trust has 29 registered funds. This semi-annual report describes 12 funds offered by the Trust (each a “Fund” and collectively, the “Funds”). The accompanying financial statements and financial highlights include the Forward Credit Analysis Long/Short Fund (“Credit Analysis Long/Short Fund”), the Forward Dynamic Income Fund (“Dynamic Income Fund”), the Forward EM Corporate Debt Fund (“EM Corporate Debt Fund”), the Forward Emerging Markets Fund (“Emerging Markets Fund”), the Forward Global Dividend Fund (“Global 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”), and the Forward Commodity Long/Short Strategy Fund (“Commodity Long/Short 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, variable rate demand notes including tender option bonds, floating rate or zero coupon securities and nonconvertible preferred securities that are actively traded in the public markets. The 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 through the use of a dividend-harvesting strategy and a tactical allocation strategy. 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. The Emerging Markets Fund seeks to achieve long-term growth of capital and invests primarily in the equity securities of emerging market companies. 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 primarily 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 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 a portfolio of ETFs and futures on securities indices providing exposure to U.S. and non U.S. issuers. 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.
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 Credit Analysis Long/Short Fund, the Dynamic Income Fund and the Commodity Long/Short Strategy Fund are each classified as a non-diversified fund under the 1940 Act.
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. Each Fund is considered an investment company for financial reporting purposes under GAAP. The financial statements have been prepared as of the close of the New York Stock Exchange (“NYSE”) on June 30, 2015.
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 prices 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 either at 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 of more than 365 days or that are credit impaired are valued on the basis of the average of the latest bid and ask prices. Debt securities that have an original maturity of less than 365 days and that are not credit impaired are valued as follows: (a) maturity of 61 to 365 days, on the basis of the average of the latest bid and ask prices; and (b) maturity of 60 days or less, at amortized cost.
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 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. To the extent that such securities do not trade on a valuation day and the last bid and ask prices are not available, the securities may be valued using matrix pricing or similar valuation methods from the Funds’ independent pricing vendors. Bonds that do not trade regularly tend to be less liquid, and 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.
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, options on futures, and swap 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, options on futures, and swap 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. If there has been no sale that day, such securities are valued at the average of the last reported bid and ask prices on the valuation day for long positions or ask prices for short positions. 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 traded on foreign securities exchanges are generally valued at the last reported sale or closing price of such securities on
Notes to Financial Statements (Unaudited)
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 normal trading day of the NYSE, normally 4:00 p.m. Eastern Time. The Funds’ 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 contracts have a market value determined by the prevailing daily foreign currency exchange 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 currency exchange rates and foreign currency exchange forward 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: analysis of recent public transactions in securities or assets of the same class or that are highly similar; analysis of recent private transactions in securities or assets of the same class or that are highly similar; analysis of information that provides a reasonable basis for valuation, such as appraisals, analysts’ reports, and valuation models; and cost, if other valuation methods are not available.
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.
Debt Securities: Debt securities are affected primarily by the financial condition of the companies or other entities that have issued them and by changes in interest rates. There is a risk that an issuer of a Fund’s debt investments may not be able to meet its financial obligations (e.g., an issuer may not be able to make principal and/or interest payments when they are due or otherwise default on other financial terms) and/or go bankrupt. Lower rated debt securities, such as high-yield/high-risk bonds, are especially subject to credit risk during periods of economic uncertainty or during economic downturns and are more likely to default on their interest and/or principal payments than higher rated debt securities. Debt securities with longer durations tend to be more sensitive to changes in interest rates, making them more volatile than debt securities with shorter durations. The value of debt securities may fall when interest rates rise. Given the current historically low interest rate environment, the risks associated with rising interest rates are heightened and future increases in interest rates may result in periods of dramatic volatility and may negatively impact the value of debt securities. The liquidity of the market for debt securities may decrease during periods of increased volatility. Additionally, new regulations applicable to and changing business practices of broker-dealers that make markets in debt securities may result in those broker-dealers restricting their market making activities for certain debt securities, which may reduce the liquidity and increase the volatility of such debt securities.
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,
Notes to Financial Statements (Unaudited)
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 tranches of 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, related index or reference asset. 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 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 securities 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. These 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.
Government-Sponsored Enterprises (“GSEs”): Certain Funds may invest in GSEs, which are privately-owned corporations created by the U.S. Congress to provide funding and help to reduce the cost of capital for certain borrowing sectors of the economy, such as homeowners, students, and farmers. 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.
Notes to Financial Statements (Unaudited)
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, a MLP is operated under the supervision of one or more managing general partners. Limited partners (such as a Fund investing in a 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 units of a MLP may have limited control and limited voting rights on matters affecting the partnership. There may be fewer corporate protections afforded investors in a MLP than investors in a corporation, and conflicts of interest may exist among unit holders and the general partner of a 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 a MLP’s taxable income. A 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 a 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 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. The Funds held no repurchase agreements as of June 30, 2015.
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
Notes to Financial Statements (Unaudited)
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 purchases and sales of investments in Note 7 and the Fund’s Portfolio Turnover Calculation in the Financial Highlights. The Funds held no securities sold short as of June 30, 2015.
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 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 in which a Fund may invest, 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 in markets 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 tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy as of June 30, 2015:
| | | | | | | | | | | | | | | | |
| Investments in Securities | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Credit Analysis Long/Short Fund | |
Municipal Bonds(a) | | | — | | | $ | 86,324,611 | | | | — | | | $ | 86,324,611 | |
Short-Term Securities | | | — | | | | 11,326,822 | | | | — | | | | 11,326,822 | |
| | | | | | | | | | | | | | | | |
Total | | | — | | | $ | 97,651,433 | | | | — | | | $ | 97,651,433 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Dynamic Income Fund | |
Common Stocks(a) | | $ | 23,502,348 | | | $ | — | | | | — | | | $ | 23,502,348 | |
Exchange-Traded Funds | | | 218,680 | | | | — | | | | — | | | | 218,680 | |
Limited Partnerships(a) | | | 938,736 | | | | — | | | | — | | | | 938,736 | |
Preferred Stocks(a) | | | 5,645,978 | | | | — | | | | — | | | | 5,645,978 | |
Corporate Bonds(a) | | | — | | | | 483,125 | | | | — | | | | 483,125 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 30,305,742 | | | $ | 483,125 | | | | — | | | $ | 30,788,867 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| EM Corporate Debt Fund | |
Foreign Government Obligations(a) | | | — | | | $ | 13,280,244 | | | | — | | | $ | 13,280,244 | |
Asset-Backed Securities(a) | | | — | | | | 242,459 | | | | — | | | | 242,459 | |
Contingent Convertible Securities(a) | | | — | | | | 7,467,832 | | | | — | | | | 7,467,832 | |
Corporate Bonds(a) | | | — | | | | 316,243,163 | | | | — | | | | 316,243,163 | |
| | | | | | | | | | | | | | | | |
Total | | | — | | | $ | 337,233,698 | | | | — | | | $ | 337,233,698 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Emerging Markets Fund | |
Common Stocks | | | | | | | | | | | | | | | | |
Greece | | $ | — | | | $ | — | | | $ | 151,183 | (b) | | $ | 151,183 | |
South Korea | | | 254,127 | | | | 67,237 | | | | — | | | | 321,364 | |
Other(a) | | | 8,892,468 | | | | — | | | | — | | | | 8,892,468 | |
Loan Participation Notes(a) | | | — | | | | 568,202 | | | | — | | | | 568,202 | |
Warrants(a) | | | — | | | | 6,649 | | | | — | | | | 6,649 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 9,146,595 | | | $ | 642,088 | | | $ | 151,183 | | | $ | 9,939,866 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Global Dividend Fund | |
Common Stocks(a) | | $ | 11,760,506 | | | $ | — | | | | — | | | $ | 11,760,506 | |
Limited Partnerships(a) | | | 156,522 | | | | — | | | | — | | | | 156,522 | |
Preferred Stocks(a) | | | 135,304 | | | | — | | | | — | | | | 135,304 | |
Collateralized Mortgage Obligations(a) | | | — | | | | 84,364 | | | | — | | | | 84,364 | |
Warrants(a) | | | — | | | | 12,151 | | | | — | | | | 12,151 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 12,052,332 | | | $ | 96,515 | | | | — | | | $ | 12,148,847 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| International Dividend Fund | |
Common Stocks(a) | | $ | 272,956,714 | | | $ | — | | | | — | | | $ | 272,956,714 | |
Preferred Stocks(a) | | | 8,717,389 | | | | — | | | | — | | | | 8,717,389 | |
Loan Participation Notes(a) | | | — | | | | 16,968,553 | | | | — | | | | 16,968,553 | |
Collateralized Mortgage Obligations(a) | | | — | | | | 2,631,760 | | | | — | | | | 2,631,760 | |
Corporate Bonds(a) | | | — | | | | 8,866,781 | | | | — | | | | 8,866,781 | |
Warrants(a) | | | — | | | | 371,801 | | | | — | | | | 371,801 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 281,674,103 | | | $ | 28,838,895 | | | | — | | | $ | 310,512,998 | |
| | | | | | | | | | | | | | | | |
Notes to Financial Statements (Unaudited)
| | | | | | | | | | | | | | | | |
| Investments in Securities | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| International Small Companies Fund | |
Common Stocks(a) | | $ | 170,779,665 | | | | — | | | | — | | | $ | 170,779,665 | |
Exchange-Traded Funds(a) | | | 3,760,174 | | | | — | | | | — | | | | 3,760,174 | |
Preferred Stocks(a) | | | 1,789,484 | | | | — | | | | — | | | | 1,789,484 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 176,329,323 | | | | — | | | | — | | | $ | 176,329,323 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Select EM Dividend Fund | |
Common Stocks | | | | | | | | | | | | | | | | |
South Korea | | $ | 1,147,206 | | | $ | 336,187 | | | | — | | | $ | 1,483,393 | |
Other(a) | | | 53,489,842 | | | | — | | | | — | | | | 53,489,842 | |
Preferred Stocks(a) | | | 539,116 | | | | — | | | | — | | | | 539,116 | |
Loan Participation Notes(a) | | | — | | | | 5,507,226 | | | | — | | | | 5,507,226 | |
Collateralized Mortgage Obligations(a) | | | — | | | | 785,698 | | | | — | | | | 785,698 | |
Corporate Bonds(a) | | | — | | | | 849,571 | | | | — | | | | 849,571 | |
Warrants(a) | | | — | | | | 71,768 | | | | — | | | | 71,768 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 55,176,164 | | | $ | 7,550,450 | | | | — | | | $ | 62,726,614 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Small Cap Equity Fund | | | | | | | | | | | | | | | | |
Common Stocks(a) | | $ | 24,434,681 | | | | — | | | | — | | | $ | 24,434,681 | |
Affiliated Investment Companies | | | 350,051 | | | | — | | | | — | | | | 350,051 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 24,784,732 | | | | — | | | | — | | | $ | 24,784,732 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Tactical Growth Fund | |
Exchange-Traded Funds | | $ | 347,926,023 | | | | — | | | | — | | | $ | 347,926,023 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 347,926,023 | | | | — | | | | — | | | $ | 347,926,023 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Commodity Long/Short Strategy Fund | |
Agency Pass-Through Securities(a) | | | — | | | $ | 6,139,134 | | | | — | | | $ | 6,139,134 | |
Asset-Backed Securities | | | — | | | | 1,199,720 | | | | — | | | | 1,199,720 | |
Collateralized Mortgage Obligations(a) | | | — | | | | 2,346,137 | | | | — | | | | 2,346,137 | |
Corporate Bonds(a) | | | — | | | | 6,497,532 | | | | — | | | | 6,497,532 | |
Municipal Bonds | | | — | | | | 8,054,180 | | | | — | | | | 8,054,180 | |
U.S. Treasury Bonds & Notes | | | — | | | | 6,102,108 | | | | — | | | | 6,102,108 | |
| | | | | | | | | | | | | | | | |
Total | | | — | | | $ | 30,338,811 | | | | — | | | $ | 30,338,811 | |
| | | | | | | | | | | | | | | | |
(a) For detailed descriptions of sector, industry, country or state, see the accompanying Portfolio of Investments.
(b) Represents security traded on the Athens Stock Exchange which was halted at June 30, 2015. Security was fair valued using the last traded price adjusted based on correlation to other foreign market benchmarks.
| | | | | | | | | | | | | | | | |
| Other Financial Instruments(a) | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Credit Analysis Long/Short Fund | | | | | | | | | | | | | | | | |
| Assets | |
Futures Contracts | | $ | 91,565 | | | | — | | | | — | | | $ | 91,565 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 91,565 | | | | — | | | | — | | | $ | 91,565 | |
| | | | | | | | | | | | | | | | |
Notes to Financial Statements (Unaudited)
| | | | | | | | | | | | | | | | |
| Other Financial Instruments(a) | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Dynamic Income Fund | | | | | | | | | | | | | | | | |
| Liabilities | |
Futures Contracts | | $ | (117,950 | ) | | | — | | | | — | | | $ | (117,950 | ) |
| | | | | | | | | | | | | | | | |
Total | | $ | (117,950 | ) | | | — | | | | — | | | $ | (117,950 | ) |
| | | | | | | | | | | | | | | | |
| Emerging Markets Fund | | | | | | | | | | | | | | | | |
| Liabilities | |
Futures Contracts | | $ | (7,753 | ) | | | — | | | | — | | | $ | (7,753 | ) |
| | | | | | | | | | | | | | | | |
Total | | $ | (7,753 | ) | | | — | | | | — | | | $ | (7,753 | ) |
| | | | | | | | | | | | | | | | |
| International Dividend Fund | | | | | | | | | | | | | | | | |
| Liabilities | |
Futures Contracts | | $ | (146,632 | ) | | | — | | | | — | | | $ | (146,632 | ) |
| | | | | | | | | | | | | | | | |
Total | | $ | (146,632 | ) | | | — | | | | — | | | $ | (146,632 | ) |
| | | | | | | | | | | | | | | | |
| Select EM Dividend Fund | | | | | | | | | | | | | | | | |
| Liabilities | |
Futures Contracts | | $ | (11,445 | ) | | | — | | | | — | | | $ | (11,445 | ) |
| | | | | | | | | | | | | | | | |
Total | | $ | (11,445 | ) | | | — | | | | — | | | $ | (11,445 | ) |
| | | | | | | | | | | | | | | | |
| Tactical Enhanced Fund | | | | | | | | | | | | | | | | |
| Liabilities | |
Futures Contracts | | $ | (316,389 | ) | | | — | | | | — | | | $ | (316,389 | ) |
| | | | | | | | | | | | | | | | |
Total | | $ | (316,389 | ) | | | — | | | | — | | | $ | (316,389 | ) |
| | | | | | | | | | | | | | | | |
| Commodity Long/Short Strategy Fund | | | | | | | | | | | | | | | | |
| Assets | |
Total Return Swap Contracts | | | — | | | $ | 16,998 | | | | — | | | $ | 16,998 | |
| Liabilities | | | | | | | | | | | | | | | | |
Total Return Swap Contracts | | | — | | | | (95,536 | ) | | | — | | | | (95,536 | ) |
| | | | | | | | | | | | | | | | |
Total | | | — | | | $ | (78,538 | ) | | | — | | | $ | (78,538 | ) |
| | | | | | | | | | | | | | | | |
(a) Other financial instruments are derivative instruments reflected in the schedules to 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. As of June 30, 2015 the only transfers of securities from Level 2 to Level 1 were for the Global Dividend Fund, the International Dividend Fund, and the International Small Companies Fund due to the utilization of a fair valuation model provided by the Funds’ independent pricing vendor at December 31, 2014. The Funds’ procedures set forth certain triggers that 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. No other Funds had transfers from 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:
| | | | |
| Emerging Markets Fund | | Common
Stocks | |
Balance as of December 31, 2014 | | $ | — | |
Realized Gain/(Loss) | | | — | |
Change in Unrealized Appreciation/(Depreciation)(a) | | | (27,178 | ) |
Purchases | | | — | |
Sales Proceeds | | | — | |
Transfer into Level 3 | | | 178,361 | |
Transfer out of Level 3 | | | — | |
| | | | |
Balance as of June 30, 2015 | | $ | 151,183 | |
| | | | |
Net change in unrealized appreciation/(depreciation) included in the Statements of Operations attributable to Level 3 investments still held at June 30, 2015 | | $ | (111,793 | ) |
(a) Net unrealized appreciation/(depreciation) is included in the related amount on investments in the Statement of Operations.
Notes to Financial Statements (Unaudited)
As of June 30, 2015, 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 currency 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 use derivatives that increase or decrease a Fund’s 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.
Forward Currency Contracts: Certain Funds invest in forward currency contracts to reduce the risks of fluctuating exchange rates and to generate returns uncorrelated to the other strategies employed. A forward currency 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 currency 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 into which it will exchange. The Fund may enter into these contracts for the purpose of hedging against foreign
Notes to Financial Statements (Unaudited)
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, 2015, the Funds held no forward currency contracts.
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 value at the time it was closed.
As of June 30, 2015, the Funds had outstanding unrealized gain/(loss) on futures contracts as follows:
| | | | |
| Fund | | Unrealized
Gain/(Loss)
on Futures
Contracts at
6/30/15 | |
Credit Analysis Long/Short Fund | | $ | 91,565 | |
Dynamic Income Fund | | | (117,950 | ) |
Emerging Markets Fund | | | (7,753 | ) |
International Dividend Fund | | | (146,632 | ) |
Select EM Dividend Fund | | | (11,445 | ) |
Tactical Enhanced Fund | | | (316,389 | ) |
No other Funds held futures contracts as of June 30, 2015.
Option Writing/Purchasing: Certain Funds may write or purchase option contracts to adjust the 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
Notes to Financial Statements (Unaudited)
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. The Funds held no purchased or written options as of June 30, 2015.
Written option activity for the six months ended June 30, 2015 was as follows:
| | | | | | | | |
| | | Written Put Options | |
| Tactical Growth Fund | | Number Of
Contracts | | | Contract
Premium | |
Outstanding, at beginning of year December 31, 2014 | | | (2,500 | ) | | $ | (493,750 | ) |
| | | | | | | | |
Options written | | | — | | | | — | |
Options exercised or closed | | | 2,500 | | | | 493,750 | |
Options expired | | | — | | | | — | |
| | | | | | | | |
Outstanding, June 30, 2015 | | | — | | | $ | — | |
| | | | | | | | |
Swaps: 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 may be executed in a multilateral or other trade facility program, such as a registered exchange (“centrally cleared swaps”) or may be privately negotiated in the over-the-counter market. The duration of a swap agreement typically ranges 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). In a centrally cleared swap, immediately following execution of the swap agreement, the swap agreement is novated to a central counterparty (the “CCP”) and the Fund’s counterparty on the swap agreement becomes the CCP.
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 or that are centrally cleared.
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
Notes to Financial Statements (Unaudited)
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 upon 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. Any net amount accrued but not yet paid to a Fund by the counterparty under a swap agreement (i.e., the Fund’s current rights under the swap agreement) is recorded as unrealized appreciation until the amount is paid to the Fund. The Fund’s maximum risk of loss from counterparty credit risk is generally limited to the net payment to be received by the Fund 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. Swap agreements that cannot be terminated or sold within seven days 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. Although centrally cleared swaps typically present less counterparty risk than non-centrally cleared swaps, a Fund that has entered into centrally cleared swaps is subject to the risk of the failure of the CCP. 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) or that are centrally cleared. Certain restrictions imposed on the Funds by the Code may limit a Fund’s ability to use swap agreements. It is possible that developments in the swap market, including additional 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 over-the-counter 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, 2015, the EM Corporate Debt Fund and the Commodity Long/Short Strategy Fund invested in swap agreements consistent with the Funds’ investment strategies to gain exposure to certain markets or indices. As of June 30, 2015, the Commodity Long/Short Strategy Fund held swap agreements and has disclosed the details in the Portfolio of Investments. No other Funds held swap agreements as of June 30, 2015.
The values in the following tables 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 Derivative Instruments as of June 30, 2015(a):
| | | | | | | | | | | | |
Derivatives not Accounted for as Hedging Instruments | | Asset Derivatives
Balance Sheet Location | | Fair
Value | | | Liabilities Derivatives
Balance Sheet Location | | Fair
Value | |
| Credit Analysis Long/Short Fund | | | | | | | | | | | | |
Interest Rate Contracts (Futures Contracts) | | Variation margin receivable | | $ | 91,565 | (b) | | | | | — | |
| | | | | | | | | | | | |
Total | | | | $ | 91,565 | | | | | | — | |
| | | | | | | | | | | | |
| Dynamic Income Fund | | | | | | | | | | | | |
Equity Contracts (Futures Contracts) | | | | | — | | | Variation margin payable | | $ | 117,950 | |
| | | | | | | | | | | | |
Total | | | | | — | | | | | $ | 117,950 | |
| | | | | | | | | | | | |
| Emerging Markets Fund | | | | | | | | | | | | |
Equity Contracts (Warrants) | | Investments, at value | | $ | 6,649 | | | | | $ | — | |
Equity Contracts (Futures Contracts) | | | | | — | | | Variation margin payable | | | 7,753 | |
| | | | | | | | | | | | |
Total | | | | $ | 6,649 | | | | | $ | 7,753 | |
| | | | | | | | | | | | |
| Global Dividend Fund | | | | | | | | | | | | |
Equity Contracts (Warrants) | | Investments, at value | | $ | 12,151 | | | | | | — | |
| | | | | | | | | | | | |
Total | | | | $ | 12,151 | | | | | | — | |
| | | | | | | | | | | | |
| International Dividend Fund | | | | | | | | | | | | |
Equity Contracts (Warrants) | | Investments, at value | | $ | 371,801 | | | | | $ | — | |
Equity Contracts (Futures Contracts) | | | | | — | | | Variation margin payable | | | 146,632 | |
| | | | | | | | | | | | |
Total | | | | $ | 371,801 | | | | | $ | 146,632 | |
| | | | | | | | | | | | |
| Select EM Dividend Fund | | | | | | | |
Equity Contracts (Warrants) | | Investments, at value | | $ | 71,768 | | | | | $ | — | |
Equity Contracts (Futures Contracts) | | | | | — | | | Variation margin payable | | | 11,445 | |
| | | | | | | | | | | | |
Total | | | | $ | 71,768 | | | | | $ | 11,445 | |
| | | | | | | | | | | | |
| Tactical Enhanced Fund | | | | | | | | | | | | |
Equity Contracts (Futures Contracts) | | | | | — | | | Variation margin payable | | $ | 316,389 | |
| | | | | | | | | | | | |
Total | | | | | — | | | | | $ | 316,389 | |
| | | | | | | | | | | | |
| Commodity Long/Short Strategy Fund | | | | | | | | | | | | |
Equity Contracts (Total Return Swaps) | | Unrealized gain on swap contracts | | $ | 16,998 | | | Unrealized loss on swap contracts | | $ | 95,536 | |
| | | | | | | | | | | | |
Total | | | | $ | 16,998 | | | | | $ | 95,536 | |
| | | | | | | | | | | | |
(a) For open derivative instruments as of June 30, 2015, see the Portfolio of Investments. At June 30, 2015, the percentage of the fair value of derivatives to net assets (“derivative activity”) for the Tactical Enhanced Fund and the Commodity Long/Short Strategy Fund was 1.17% higher and 1.87% less, respectively, than the Funds’ average month-end derivative activity during the year. The Portfolio of Investments is representative of the derivative activity for the six months ended June 30, 2015 for the other Funds.
(b) Includes the cumulative appreciation/depreciation of futures contracts as reported in the Portfolio of Investments. Only the current day’s net variation margin is reported within the Statement of Assets and Liabilities.
Notes to Financial Statements (Unaudited)
The gains/(losses) in the following table are included in “Net realized gain/(loss)” or “Net change in unrealized gain/(loss)” on the Statement of Operations.
The Effect of Derivative Instruments on the Statement of Operations for the six months ended June 30, 2015:
| | | | | | | | | | |
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 | |
| Credit Analysis Long/Short Fund | | | | | | | | | | |
Interest Rate Contracts (Futures Contracts) | | Net realized gain on futures contracts/Net change in unrealized appreciation on futures contracts | | $ | 627,780 | | | $ | 390,287 | |
| | | | | | | | | | |
Total | | | | $ | 627,780 | | | $ | 390,287 | |
| | | | | | | | | | |
| Dynamic Income Fund | | | | | | | | | | |
Equity Contracts (Futures Contracts) | | Net realized loss on futures contracts/Net change in unrealized depreciation on futures contracts | | $ | (957,341 | ) | | $ | (114,653 | ) |
| | | | | | | | | | |
Total | | | | $ | (957,341 | ) | | $ | (114,653 | ) |
| | | | | | | | | | |
| EM Corporate Debt Fund | | | | | | | | | | |
Credit Contracts (Credit Default Swaps) | | Net realized loss on swap contracts/Net change in unrealized appreciation on swap contracts | | $ | (257,722 | ) | | $ | 278,148 | |
| | | | | | | | | | |
Total | | | | $ | (257,722 | ) | | $ | 278,148 | |
| | | | | | | | | | |
| Emerging Markets Fund | | | | | | | | | | |
Equity Contracts (Warrants) | | Net change in unrealized appreciation on investments | | $ | — | | | $ | 6,649 | |
Equity Contracts (Futures Contracts) | | Net realized gain on futures contracts/Net change in unrealized depreciation on futures contracts | | | 111,782 | | | | (7,753 | ) |
| | | | | | | | | | |
Total | | $ | 111,782 | | | $ | (1,104 | ) |
| | | | | | | | | | |
| Global Dividend Fund | | | | |
Equity Contracts (Warrants) | | Net change in unrealized appreciation on investments | | | — | | | $ | 12,151 | |
| | | | | | | | | | |
Total | | | — | | | $ | 12,151 | |
| | | | | | | | | | |
| International Dividend Fund | | | | | | |
Equity Contracts (Warrants) | | Net change in unrealized appreciation on investments | | $ | — | | | $ | 371,801 | |
Equity Contracts (Futures Contracts) | | Net realized gain on futures contracts/Net change in unrealized depreciation on futures contracts | | | 963,305 | | | | (109,698 | ) |
| | | | | | | | | | |
Total | | $ | 963,305 | | | $ | 262,103 | |
| | | | | | | | | | |
| Select EM Dividend Fund | | | | | | |
Equity Contracts (Warrants) | | Net change in unrealized appreciation on investments | | $ | — | | | $ | 71,768 | |
Equity Contracts (Futures Contracts) | | Net realized loss on futures contracts/Net change in unrealized depreciation on futures contracts | | | (57,951 | ) | | | (11,445 | ) |
| | | | | | | | | | |
Total | | $ | (57,951 | ) | | $ | 60,323 | |
| | | | | | | | | | |
| Small Cap Equity Fund | | | | | | |
Equity Contracts (Futures Contracts) | | Net realized gain on futures contracts/Net change in unrealized depreciation on futures contracts | | $ | 97,611 | | | $ | (20,074 | ) |
| | | | | | | | | | |
Total | | $ | 97,611 | | | $ | (20,074 | ) |
| | | | | | | | | | |
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 | |
| Tactical Enhanced Fund | | | | | | |
Equity Contracts (Futures Contracts) | | Net realized loss on futures contracts/Net change in unrealized depreciation on futures contracts | | $ | (706,589 | ) | | $ | (316,389 | ) |
| | | | | | | | | | |
Total | | $ | (706,589 | ) | | $ | (316,389 | ) |
| | | | | | | | | | |
| Tactical Growth Fund | | | | | | |
Equity Contracts (Options Purchased) | | Net realized gain on investments/Net change in unrealized depreciation on investments | | $ | 150,500 | | | $ | (3,206,250 | ) |
Equity Contracts (Options Written) | | Net realized gain on written option contracts/Net change in unrealized appreciation on written option contracts | | | 291,250 | | | | 1,193,750 | |
| | | | | | | | | | |
Total | | $ | 441,750 | | | $ | (2,012,500 | ) |
| | | | | | | | | | |
| Commodity Long/Short Strategy Fund | | | | | | |
Equity Contracts (Total Return Swaps) | | Net realized loss on swap contracts/Net change in unrealized depreciation on swap contracts | | $ | (1,778,252 | ) | | $ | (4,358,560 | ) |
| | | | | | | | | | |
Total | | $ | (1,778,252 | ) | | $ | (4,358,560 | ) |
| | | | | | | | | | |
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 that 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, 2015:
Offsetting of Financial Assets and Derivative Assets(a)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 (b) | | | Cash
Collateral
Received (b) | | | Net
Amount | |
Commodity Long/Short Strategy Fund
| | | | | | | | | | | | | | | | | |
Equity Contracts (Total Return Swaps) | | $ | 16,998 | | | $ | — | | | $ | 16,998 | | | $ | — | | | $ | — | | | $ | 16,998 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 16,998 | | | $ | — | | | $ | 16,998 | | | $ | — | | | $ | — | | | $ | 16,998 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Notes to Financial Statements (Unaudited)
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 (b) | | | Cash
Collateral
Pledged (b) | | | Net
Amount | |
| Commodity Long/Short Strategy Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Equity Contracts (Total Return Swaps) | | $ | 95,536 | | | $ | — | | | $ | 95,536 | | | $ | — | | | $ | (95,536 | ) | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 95,536 | | | $ | — | | | $ | 95,536 | | | $ | — | | | $ | (95,536 | ) | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
(a) For additional information about enforceable netting arrangements or similar agreements and associated collateral, see disclosures presented in Note 2 of the Notes to the Financial Statements.
(b) These amounts are limited to the derivative asset/liability balance and, accordingly, do not include excess collateral received/pledged which is disclosed in the Portfolio of Investments for financial instruments and in the Statement of Assets and Liabilities for cash collateral.
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.
The 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, 2015, the value of warrants held by the Funds was as follows:
| | | | |
| Fund | | Value of
Warrants at
6/30/15 | |
Emerging Markets Fund | | $ | 6,649 | |
Global Dividend Fund | | | 12,151 | |
International Dividend Fund | | | 371,801 | |
Select EM Dividend Fund | | | 71,768 | |
No other Funds held warrants as of June 30, 2015.
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.
Commodity Futures Trading Commission Regulation: The Commodity Long/Short Strategy Fund and the Fund’s wholly-owned subsidiary, the Forward Commodity Long/Short Strategy (Cayman) Fund Ltd., is subject to regulation as a commodity pool under the Commodity Exchange Act pursuant to rules enacted by the Commodity Futures Trading Commission (the “CFTC”). The Advisor has registered with the CFTC as a Commodity Pool
Notes to Financial Statements (Unaudited)
Operator and is a member of the National Futures Association. As a result, additional CFTC mandated disclosure, reporting and recordkeeping obligations are in effect with respect to this Fund. Compliance with the CFTC’s ongoing regulatory compliance requirements could increase the Fund’s expenses, adversely affecting its total return.
Leverage: The Dynamic Income Fund, the EM Corporate Debt Fund, the International Dividend Fund and the Select EM Dividend Fund may 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 Dynamic Income Fund, the EM Corporate Debt Fund, the International Dividend 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 for borrowing under these agreements.
The International Dividend Fund also maintains a separate line of credit with Société Générale. For borrowings under this agreement, the Fund is charged interest of 0.95% above the one-month LIBOR. Additionally, if the borrowed amount by a Fund is below 80% of the Fund’s facility limit, the Fund is charged a commitment fee of 0.35% per annum on the amount between the facility limit and borrowed amount.
The Dynamic Income Fund did not borrow under its line of credit agreement during the six months ended June 30, 2015. The EM Corporate Debt Fund, the International Dividend Fund and the Select EM Dividend Fund have each
pledged a portion of its investment securities as the collateral for their lines of credit. As of June 30, 2015, the value of the investment securities pledged as collateral and the borrowed amounts on the lines of credit were as follows:
| | | | | | | | |
| Fund | | Collateral
Pledged | | | Borrowed
Amounts | |
EM Corporate Debt Fund | | $ | 138,022,459 | | | $ | 36,048,790 | |
International Dividend Fund | | | 74,835,982 | | | | 30,235,446 | |
Select EM Dividend Fund | | | 14,905,663 | | | | 5,601,285 | |
The average interest rate charged and the average outstanding loan payable for the six months ended June 30, 2015 were as follows:
| | | | | | | | |
| Fund | | Average
Interest Rate | | | Average Outstanding
Loan Payable | |
EM Corporate Debt Fund | | | 1.378 | % | | $ | 28,560,380 | |
International Dividend Fund | | | 1.371 | % | | | 25,933,913 | |
Select EM Dividend Fund | | | 1.378 | % | | | 6,626,270 | |
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 Institutional Class 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 Institutional Class 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. The U.S. Government Money Fund was liquidated pursuant to a Board-approved plan of liquidation on or around August 26, 2015.
The Small Cap Equity Fund invested in Institutional Class shares of the U.S. Government Money Fund during the six months ended June 30, 2015, as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| Fund | | Beginning
Shares | | | Gross
Purchases | | | Gross
Sales | | | Ending
Shares | | | Value
06/30/15 | | | Income | |
Small Cap Equity Fund | | | 350,051 | | | | — | | | | — | | | | 350,051 | | | $ | 350,051 | | | $ | 18 | |
During the six months ended June 30, 2015, the Advisor waived fees and/or reimbursed the Small Cap Equity Fund for the U.S. Government Money Fund’s management fees in the amount of $139.
The U.S. Government Money Fund’s June 30, 2015 Semi-Annual Report may be obtained at www.forwardinvesting.com.
Notes to Financial Statements (Unaudited)
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 “Subsidiary”). Forward Management acts as Investment Advisor to the Fund and to the Subsidiary. The Fund is the sole shareholder of the Subsidiary, and it is intended that the Fund will remain the sole shareholder and will continue to control the Subsidiary.
Investments in the Subsidiary are expected to provide the Fund 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: The Subsidiary, a Cayman Islands exempted company, was incorporated on October 12, 2010 as a wholly-owned subsidiary acting as an investment vehicle for the Fund in order to effect certain investments for the Fund consistent with the Fund’s investment objectives. As a wholly-owned subsidiary of the Fund, all assets, liabilities, income and expenses of the portfolio are consolidated in the financial statements and financial highlights of the Fund. As of June 30, 2015, net assets of the Commodity Long/Short Strategy Fund were $42,494,058 of which $9,374,037 or 22.06% represented the Fund’s ownership of all issued shares and voting rights of the Fund’s Subsidiary.
In addition, the Advisor has filed for and received no-action relief from the CFTC that permits consolidation of the financial statements for the Commodity Long/Short Strategy Fund and its 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 International Small Companies Fund, the Small Cap Equity Fund, the Tactical Enhanced Fund and the Tactical Growth Fund; quarterly for the Credit Analysis Long/Short Fund and the EM
Corporate Debt Fund; and monthly for the Dynamic Income Fund, the Global Dividend Fund, the International Dividend Fund, and the Select EM Dividend Fund. For all Funds, net realized capital gains, if any, are normally distributed annually in December, and a spillover capital gain distribution, if any, is distributed in the year after which a Fund elects to treat the distribution as paid for Federal income tax purposes. There is no guarantee that 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 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 (a portion of which may be reclaimable) or provided for in accordance with the applicable country’s tax rules and rates and are disclosed in the Statement of Operations. Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis,
Notes to Financial Statements (Unaudited)
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. is classified as a controlled foreign corporation under the Code. Therefore, the Commodity Long/Short Strategy Fund is required to increase its taxable income by its share of the Subsidiary’s income. Net losses of the Subsidiary cannot be deducted by the Fund in the current period nor carried forward to offset taxable income in future periods.
As of and during the six months ended June 30, 2015, 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. Management does not believe there are any uncertain tax positions that require recognition of a tax liability.
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 of the 1940 Act) and/or shareholder services plans for a particular class of a Fund are charged to the operations of such class.
ReFlow Transactions: Certain Funds may participate 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. 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 six months ended June 30, 2015 are recorded in the Statement of Operations, if applicable.
3. Investment Management Services
On June 9, 2015, Forward Management was acquired by Salient Partners, L.P. (“Salient”), an asset manager headquartered in Houston, Texas advising across a broad spectrum of traditional and alternative investments. Subsequent to the acquisition, Forward Management continues to act as the investment advisor of the Funds as a wholly owned subsidiary of Salient pursuant to a new investment management contract, which is substantially identical to the terms of the Funds’ previous investment management agreement, approved by the shareholders of each Fund and the Board of Trustees (see “Approval of the Investment Management Agreement,” “Additional Company information” and “Shareholder Voting Results” following the Notes to Financial Statements). Pursuant to this new investment management agreement, 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, 2015, based on each Fund’s average daily net assets:
| | |
| Fund | | Advisory Fee |
Credit Analysis Long/Short Fund | | 1.00% |
| |
Dynamic Income Fund | | 0.80% |
Notes to Financial Statements (Unaudited)
| | |
| Fund | | Advisory Fee |
| |
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 | | 1.05% |
| |
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 $500 million |
| | 0.975% over $500 million 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) |
(a) The Commodity Long/Short Strategy Fund may invest a portion of its assets in a separate wholly-owned Cayman subsidiary. The Subsidiary has entered into a separate advisory agreement with Forward Management for the management of the Subsidiary’s portfolio pursuant to which the 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 effective.
The Trust and Forward Management have entered into investment sub-advisory agreements with Pacific Investment Management Company LLC (“PIMCO”) for the Credit Analysis Long/Short Fund; Pictet Asset Management Limited (“PAM Ltd”) for the International Small Companies Fund and Broadmark Asset Management, LLC for the Tactical Growth 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 Forward Management calculated daily and payable monthly at the following annual rates, as of June 30, 2015, based on each Fund’s average daily net assets:
| | |
| Fund | | Sub-Advisory Fee |
| |
Credit Analysis Long/Short Fund | | 0.50% |
| |
International Small Companies Fund | | 0.60% up to and including $250 million |
| | 0.575% over $250 million up to and including $500 million |
| | 0.55% over $500 million up to and including $1 billion |
| | 0.525% over $1 billion |
| |
Tactical Growth Fund | | 0.60% up to and including $1 billion |
| | 0.55% over $1 billion |
Notes to Financial Statements (Unaudited)
Prior to June 9, 2015, the Trust and Forward Management had entered into an investment sub-advisory agreement with SW Asset Management, LLC (“SW”) for the EM Corporate Debt Fund. Pursuant to the agreement for the EM Corporate Debt Fund, SW provided sub-advisory services to the Fund and was entitled to receive a fee from Forward Management calculated daily and payable monthly at the annual rate of 0.35% of the Fund’s average daily net assets. Effective June 9, 2015, the Trust and Forward Management terminated their sub-advisory agreement with SW, and the Fund is now advised solely by Forward Management. Additionally, effective June 9, 2015, David C. Hinman, formerly of SW and a portfolio manager of the EM Corporate Debt Fund since February 2011, became an employee of Forward Management. Mr. Hinman will continue to manage the Fund’s portfolio.
Expense Limitations: Forward Management has entered into Expense Limitation Agreements with certain Funds, which limit the total expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired fund fees and expenses, expenses of a 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 | | | End Date | |
Credit Analysis Long/Short Fund | | | 1.79 | % | | | 1.44 | % | | | 1.94 | % | | | 2.39 | % | | | 1.49 | % | | | April 30, 2017 | |
Dynamic Income Fund | | | 1.34 | % | | | 0.99 | % | | | 1.49 | % | | | N/A | | | | N/A | | | | April 30, 2017 | |
Emerging Markets Fund | | | 1.74 | % | | | 1.39 | % | | | N/A | | | | N/A | | | | 1.44 | % | | | April 30, 2017 | |
Global Dividend Fund | | | 1.34 | % | | | 0.99 | % | | | 1.49 | % | | | N/A | | | | N/A | | | | April 30, 2017 | |
International Dividend Fund | | | 1.34 | % | | | 0.99 | % | | | 1.49 | % | | | 1.94 | % | | | 1.04 | % | | | April 30, 2017 | |
International Small Companies Fund | | | 1.64 | % | | | 1.29 | % | | | N/A | | | | N/A | | | | 1.34 | % | | | April 30, 2017 | |
Select EM Dividend Fund | | | 1.74 | % | | | 1.39 | % | | | N/A | | | | 2.34 | % | | | 1.44 | % | | | April 30, 2017 | |
Small Cap Equity Fund | | | 1.49 | % | | | 1.14 | % | | | N/A | | | | N/A | | | | 1.19 | % | | | April 30, 2017 | |
Tactical Enhanced Fund | | | 1.74 | % | | | 1.39 | % | | | 1.89 | % | | | 2.34 | % | | | 1.44 | % | | | April 30, 2017 | |
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 the expense limitation in existence at the time the expenses were incurred or at the time of the reimbursement, whichever 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, 2015, 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 | | $ | — | | | $ | 36,353 | | | $ | 36,353 | |
Institutional Class | | | — | | | | 12,566 | | | | 12,566 | |
Class A | | | — | | | | 1,793 | | | | 1,793 | |
Class C | | | — | | | | 3,762 | | | | 3,762 | |
Advisor Class | | | — | | | | 3,876 | | | | 3,876 | |
| Dynamic Income Fund | | | | | | | | | | | | |
Investor Class | | | 814 | | | | — | | | | 814 | |
Institutional Class | | | 30,930 | | | | — | | | | 30,930 | |
Class A | | | 8,911 | | | | — | | | | 8,911 | |
| Emerging Markets Fund | | | | | | | | | | | | |
Investor Class | | | 14,548 | | | | — | | | | 14,548 | |
Institutional Class | | | 30,032 | | | | — | | | | 30,032 | |
Advisor Class | | | 4,584 | | | | — | | | | 4,584 | |
| Global Dividend Fund | | | | | | | | | | | | |
Investor Class | | | 991 | | | | — | | | | 991 | |
Institutional Class | | | 5,922 | | | | — | | | | 5,922 | |
Class A | | | 43,295 | | | | — | | | | 43,295 | |
Notes to Financial Statements (Unaudited)
| | | | | | | | | | | | |
| Fund | | Fees Waived/
Reimbursed
by Advisor | | | Recoupment of
Past Waived
Fees by Advisor | | | Total | |
| International Dividend Fund | | | | | | | | | | | | |
Investor Class | | $ | 67,219 | | | $ | — | | | $ | 67,219 | |
Institutional Class | | | 59,887 | | | | — | | | | 59,887 | |
Class A | | | 2,955 | | | | — | | | | 2,955 | |
Class C | | | 6,858 | | | | — | | | | 6,858 | |
Advisor Class | | | 41,872 | | | | — | | | | 41,872 | |
| International Small Companies Fund | | | | | | | | | | | | |
Investor Class | | | 6,895 | | | | — | | | | 6,895 | |
Institutional Class | | | 30,533 | | | | — | | | | 30,533 | |
Advisor Class | | | 635 | | | | — | | | | 635 | |
| Select EM Dividend Fund | | | | | | | | | | | | |
Investor Class | | | 47,456 | | | | — | | | | 47,456 | |
Institutional Class | | | 24,041 | | | | — | | | | 24,041 | |
Class C | | | 2,670 | | | | — | | | | 2,670 | |
Advisor Class | | | 1,883 | | | | — | | | | 1,883 | |
| Small Cap Equity Fund | | | | | | | | | | | | |
Investor Class | | | 40,163 | | | | — | | | | 40,163 | |
Institutional Class | | | 7,545 | | | | — | | | | 7,545 | |
Advisor Class | | | 4,985 | | | | — | | | | 4,985 | |
| Tactical Enhanced Fund | | | | | | | | | | | | |
Investor Class | | | 27,656 | | | | — | | | | 27,656 | |
Institutional Class | | | 23,967 | | | | — | | | | 23,967 | |
Class A | | | 1,609 | | | | — | | | | 1,609 | |
Class C | | | 3,010 | | | | — | | | | 3,010 | |
Advisor Class | | | 1,931 | | | | — | | | | 1,931 | |
As of June 30, 2015, the balances of recoupable expenses for each Fund were as follows:
| | | | | | | | | | | | | | | | | | | | |
| Fund | | 2012 | | | 2013 | | | 2014 | | | 2015 | | | Total | |
| Credit Analysis Long/Short Fund | | | | | | | | | | | | | | | | | | | | |
Investor Class | | $ | 192,355 | | | $ | 301,374 | | | $ | 8,683 | | | $ | — | | | $ | 502,412 | |
Institutional Class | | | 82,828 | | | | 175,905 | | | | 14,437 | | | | — | | | | 273,170 | |
Class A | | | 5,751 | | | | 17,632 | | | | 933 | | | | — | | | | 24,316 | |
Class C | | | 15,558 | | | | 28,340 | | | | 2,245 | | | | — | | | | 46,143 | |
Advisor Class | | | 41,756 | | | | 78,496 | | | | 2,354 | | | | — | | | | 122,606 | |
| Dynamic Income Fund | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | — | | | | — | | | | — | | | | 814 | | | | 814 | |
Institutional Class | | | — | | | | 38,986 | | | | 56,508 | | | | 30,930 | | | | 126,424 | |
Class A | | | — | | | | 3,564 | | | | 4,657 | | | | 8,911 | | | | 17,132 | |
| EM Corporate Debt Fund | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | 11,751 | | | | 37,188 | | | | 23,536 | | | | — | | | | 72,475 | |
Institutional Class | | | 4,642 | | | | — | | | | 2,142 | | | | — | | | | 6,784 | |
Class C | | | 1,187 | | | | — | | | | 152 | | | | — | | | | 1,339 | |
Advisor Class | | | — | | | | — | | | | — | | | | — | | | | — | |
| Emerging Markets Fund | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | 129,144 | | | | 47,816 | | | | 37,897 | | | | 14,548 | | | | 229,405 | |
Institutional Class | | | 141,303 | | | | 40,248 | | | | 52,485 | | | | 30,032 | | | | 264,068 | |
Advisor Class | | | 9,870 | | | | 7,156 | | | | 11,438 | | | | 4,584 | | | | 33,048 | |
Notes to Financial Statements (Unaudited)
| | | | | | | | | | | | | | | | | | | | |
| Fund | | 2012 | | | 2013 | | | 2014 | | | 2015 | | | Total | |
| Global Dividend Fund | | | | | | | | | | | | | | | | | | | | |
Investor Class | | $ | 906 | | | $ | 5,191 | | | $ | 2,995 | | | $ | 991 | | | $ | 10,083 | |
Institutional Class | | | 31,985 | | | | 46,559 | | | | 27,195 | | | | 5,922 | | | | 111,661 | |
Class A | | | 51,396 | | | | 55,430 | | | | 80,680 | | | | 43,295 | | | | 230,801 | |
| International Dividend Fund | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | 43,987 | | | | 116,683 | | | | 127,872 | | | | 67,219 | | | | 355,761 | |
Institutional Class | | | 142,684 | | | | 109,960 | | | | 96,320 | | | | 59,887 | | | | 408,851 | |
Class A | | | — | | | | 1,569 | | | | 3,759 | | | | 2,955 | | | | 8,283 | |
Class C | | | 438 | | | | 4,613 | | | | 9,852 | | | | 6,858 | | | | 21,761 | |
Advisor Class | | | 13,851 | | | | 48,182 | | | | 88,453 | | | | 41,872 | | | | 192,358 | |
| International Small Companies Fund | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | — | | | | — | | | | 6,763 | | | | 6,895 | | | | 13,658 | |
Institutional Class | | | — | | | | — | | | | 37,473 | | | | 30,533 | | | | 68,006 | |
Advisor Class | | | — | | | | — | | | | 2,065 | | | | 635 | | | | 2,700 | |
| Select EM Dividend Fund | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | 25,105 | | | | 51,768 | | | | 66,356 | | | | 47,456 | | | | 190,685 | |
Institutional Class | | | 60,143 | | | | 47,553 | | | | 43,657 | | | | 24,041 | | | | 175,394 | |
Class C | | | 6,314 | | | | 3,034 | | | | 3,086 | | | | 2,670 | | | | 15,104 | |
Advisor Class | | | 8,873 | | | | 2,764 | | | | 2,294 | | | | 1,883 | | | | 15,814 | |
| Small Cap Equity Fund | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | 80,190 | | | | 73,485 | | | | 82,822 | | | | 40,163 | | | | 276,660 | |
Institutional Class | | | 36,194 | | | | 20,895 | | | | 16,082 | | | | 7,545 | | | | 80,716 | |
Advisor Class | | | 8,254 | | | | 8,633 | | | | 9,661 | | | | 4,985 | | | | 31,533 | |
| Tactical Enhanced Fund | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | 31,432 | | | | — | | | | 13,087 | | | | 27,656 | | | | 72,175 | |
Institutional Class | | | 28,004 | | | | — | | | | 19,552 | | | | 23,967 | | | | 71,523 | |
Class A | | | 6,916 | | | | — | | | | 798 | | | | 1,609 | | | | 9,323 | |
Class C | | | 5,849 | | | | — | | | | 1,542 | | | | 3,010 | | | | 10,401 | |
Advisor Class | | | — | | | | — | | | | 6,045 | | | | 1,931 | | | | 7,976 | |
4. Distribution and Shareholder Services Plans
The Funds have adopted Distribution Plans (the “Distribution Plans”) pursuant to Rule 12b-1 of the 1940 Act that allow each of the Funds to pay for the sale and distribution of its shares at an annual rate of up to the following amounts based on each Fund’s daily average net assets:
| | | | | | | | | | | | |
| Fund | | Investor
Class | | | Class A | | | Class C | |
Credit Analysis Long/Short Fund | | | 0.25 | % | | | 0.35 | % | | | 0.75 | % |
Dynamic Income Fund | | | 0.25 | % | | | 0.35 | % | | | N/A | |
EM Corporate Debt Fund | | | 0.25 | % | | | N/A | | | | 0.75 | % |
Emerging Markets Fund | | | 0.25 | % | | | N/A | | | | N/A | |
Global Dividend Fund | | | 0.25 | % | | | 0.35 | % | | | N/A | |
International Dividend Fund | | | 0.25 | % | | | 0.35 | % | | | 0.75 | % |
International Small Companies Fund | | | 0.25 | % | | | N/A | | | | N/A | |
Select EM Dividend Fund | | | 0.25 | % | | | N/A | | | | 0.75 | % |
Small Cap Equity Fund | | | 0.25 | % | | | N/A | | | | N/A | |
Tactical Enhanced Fund | | | 0.25 | % | | | 0.35 | % | | | 0.75 | % |
Tactical Growth Fund | | | 0.25 | % | | | 0.35 | % | | | 0.75 | % |
Commodity Long/Short Strategy Fund | | | 0.25 | % | | | N/A | | | | 0.75 | % |
Notes to Financial Statements (Unaudited)
The Funds have adopted a shareholder services plan (the “Shareholder Services Plan”) with respect to certain Funds. Under the Shareholder Services Plan, a Fund is authorized to pay third party service providers for non-distribution related services to shareholders. Payments under the Shareholder Services Plan are calculated daily and paid monthly and are not to exceed the following annual rates:
| | | | | | | | | | | | | | | | | | | | |
| Fund | | Investor
Class | | | Institutional
Class | | | Class A | | | Class C | | | Advisor
Class | |
Credit Analysis Long/Short Fund | | | 0.15 | % | | | 0.05 | % | | | 0.20 | % | | | 0.25 | % | | | 0.10 | % |
Dynamic Income Fund | | | 0.15 | % | | | 0.05 | % | | | 0.20 | % | | | N/A | | | | N/A | |
EM Corporate Debt Fund | | | 0.15 | % | | | 0.05 | % | | | N/A | | | | 0.25 | % | | | 0.10 | % |
Emerging Markets Fund | | | 0.15 | % | | | 0.05 | % | | | N/A | | | | N/A | | | | 0.10 | % |
Global Dividend Fund | | | 0.15 | % | | | 0.05 | % | | | 0.20 | % | | | N/A | | | | N/A | |
International Dividend Fund | | | 0.15 | % | | | 0.05 | % | | | 0.20 | % | | | 0.25 | % | | | 0.10 | % |
International Small Companies Fund | | | 0.15 | % | | | 0.05 | % | | | N/A | | | | N/A | | | | 0.10 | % |
Select EM Dividend Fund | | | 0.15 | % | | | 0.05 | % | | | N/A | | | | 0.25 | % | | | 0.10 | % |
Small Cap Equity Fund | | | 0.15 | % | | | 0.05 | % | | | N/A | | | | N/A | | | | 0.10 | % |
Tactical Enhanced Fund | | | 0.15 | % | | | 0.05 | % | | | 0.20 | % | | | 0.25 | % | | | 0.10 | % |
Tactical Growth Fund | | | 0.15 | % | | | 0.05 | % | | | 0.20 | % | | | 0.25 | % | | | 0.10 | % |
Commodity Long/Short Strategy Fund | | | 0.15 | % | | | 0.05 | % | | | N/A | | | | 0.25 | % | | | 0.10 | % |
The expenses of the Distribution Plans and the Shareholder Services Plan are reflected as distribution and service fees in the Statement of Operations.
Administrator, Custodian, Distributor, Dividend Paying Agent & Transfer Agent
ALPS Fund Services, Inc. (“AFS”) serves as the Funds’ administrator, transfer agent and dividend paying agent.
Citibank serves as the Funds’ custodian.
Forward Securities, LLC, a wholly owned subsidiary of Forward Management, (the “Distributor”) serves as the Funds’ distributor. The Distributor acts as an agent for the Funds and the distributor of their shares.
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, 2015, there were eleven Trustees, ten of whom are not “interested persons” of the Trust within the meaning of that term under the 1940 Act (each, an “Independent Trustee”), and two Advisory Board Members. The Funds pay each Independent Trustee and Advisory Board Member a retainer fee in the amount of $35,000 per year. The Funds pay each Independent Trustee and Advisory Board Member the amount of: $12,500 for attendance in person at a regular meeting and $9,000 for attendance by telephone at a regular meeting; $5,000 for attendance in person or by video conference at a special meeting that is not held in conjunction with a regular meeting and $3,000 for attendance by
telephone at a special meeting that is not held in conjunction with a regular meeting; and $1,500 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 $25,000, $12,500 and $7,500, respectively per year (prior to April 1, 2015, the Chairman of the Board of Trustees received a special retainer fee in the amount of $15,000). The interested Trustee receives no compensation from the Funds. In addition, Independent Trustees and Advisory Board Members receive reimbursements for reasonable out-of-pocket expenses incurred for their services as a Trustee or an Advisory Board Member, including for the transportation and other expenses that they incur in attending meetings.
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, Trustees and Advisory Board Members 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.
Notes to Financial Statements (Unaudited)
7. Purchases and Sales of Investments
Investment transactions for the six months ended June 30, 2015, 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 | | $ | 93,026,920 | | | $ | 94,728,494 | |
Dynamic Income Fund | | | 113,441,230 | | | | 101,880,338 | |
EM Corporate Debt Fund | | | 35,876,250 | | | | 91,175,005 | |
Emerging Markets Fund | | | 2,736,134 | | | | 4,285,574 | |
Global Dividend Fund | | | 937,075 | | | | 2,505,150 | |
International Dividend Fund | | | 219,821,785 | | | | 220,366,131 | |
International Small Companies Fund | | | 58,526,594 | | | | 61,952,409 | |
Select EM Dividend Fund | | | 43,695,066 | | | | 34,752,351 | |
Small Cap Equity Fund | | | 17,430,607 | | | | 20,610,971 | |
Tactical Enhanced Fund | | | 24,597,347 | | | | 40,213,318 | |
Tactical Growth Fund | | | 904,040,661 | | | | 1,200,861,565 | |
Commodity Long/Short Strategy Fund | | | 3,273,540 | | | | 12,222,547 | |
Investment transactions in U.S. Government Obligations for the six months ended June 30, 2015 were as follows:
| | | | | | | | |
| Fund | | Cost of
Investments
Purchased | | | Proceeds from
Investments
Sold | |
Commodity Long/Short Strategy Fund | | $ | 4,148,604 | | | $ | 7,100,336 | |
8. Tax Basis Information
Tax Basis of Investments: As of June 30, 2015, 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 | | $ | 97,037,941 | | | $ | 1,948,981 | | | $ | (1,335,489 | ) | | $ | 613,492 | |
Dynamic Income Fund | | | 30,268,671 | | | | 1,274,919 | | | | (754,723 | ) | | | 520,196 | |
EM Corporate Debt Fund | | | 358,352,099 | | | | 6,400,016 | | | | (27,518,417 | ) | | | (21,118,401 | ) |
Emerging Markets Fund | | | 9,678,175 | | | | 1,495,249 | | | | (1,233,558 | ) | | | 261,691 | |
Global Dividend Fund | | | 10,231,851 | | | | 2,597,105 | | | | (680,109 | ) | | | 1,916,996 | |
International Dividend Fund | | | 298,675,912 | | | | 35,630,182 | | | | (23,793,096 | ) | | | 11,837,086 | |
International Small Companies Fund | | | 144,389,895 | | | | 36,973,623 | | | | (5,034,195 | ) | | | 31,939,428 | |
Select EM Dividend Fund | | | 62,869,551 | | | | 6,229,917 | | | | (6,372,854 | ) | | | (142,937 | ) |
Small Cap Equity Fund | | | 23,672,512 | | | | 2,854,475 | | | | (1,742,255 | ) | | | 1,112,220 | |
Tactical Growth Fund | | | 338,340,309 | | | | 12,083,928 | | | | (2,498,214 | ) | | | 9,585,714 | |
Commodity Long/Short Strategy Fund | | | 30,102,156 | | | | 245,311 | | | | (8,656 | ) | | | 236,655 | |
Notes to Financial Statements (Unaudited)
Capital Losses: Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), capital losses incurred after December 31, 2010 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. As of December 31, 2014, the following Funds had available for Federal income tax purposes unused capital losses that may be used to offset future realized capital gains as follows:
| | | | | | | | | | | | | | | | | | | | |
| Fund | | Expiring in
2016(a) | | | Expiring in
2017(a) | | | Short-Term(b) | | | Long-Term(b) | | | Total | |
Credit Analysis Long/Short Fund | | $ | — | | | $ | — | | | $ | 66,050,124 | | | $ | 28,625,020 | | | $ | 94,675,144 | |
EM Corporate Debt Fund | | | — | | | | 51,786 | | | | 9,033,478 | | | | 8,579,156 | | | | 17,664,420 | |
Emerging Markets Fund | | | — | | | | — | | | | 1,174,976 | | | | — | | | | 1,174,976 | |
International Dividend Fund(c) | | | — | | | | 2,145,728 | | | | 12,559,462 | | | | — | | | | 14,705,190 | |
International Small Companies Fund | | | 21,339,116 | | | | 179,253,577 | | | | — | | | | — | | | | 200,592,693 | |
Small Cap Equity Fund(c) | | | 2,614,131 | | | | 23,741,047 | | | | — | | | | — | | | | 26,355,178 | |
Select EM Dividend Fund | | | — | | | | — | | | | 7,260,625 | | | | — | | | | 7,260,625 | |
Commodity Long/Short Strategy Fund | | | — | | | | — | | | | 301,290 | | | | 265,025 | | | | 566,315 | |
(a) Capital losses incurred prior to December 31, 2010 under pre-enactment law.
(b) Capital losses incurred after December 31, 2010 under the Act and not subject to expiration.
(c) Subject to limitations under §382 of the Code.
The Funds elect to defer to the period ending December 31, 2015 capital losses and late year ordinary losses recognized during the period November 1, 2014 to December 31, 2014 in the amount of:
| | | | | | | | |
| Fund | | Capital
Losses Total | | | Ordinary
Losses Total | |
Dynamic Income Fund | | $ | 110,953 | | | $ | — | |
EM Corporate Debt Fund | | | 193,270 | | | | 768,260 | |
Emerging Markets Fund | | | 32,712 | | | | 38,131 | |
Global Dividend Fund | | | 3,566 | | | | 18,817 | |
International Dividend Fund | | | 2,218,788 | | | | 917,314 | |
International Small Companies | | | 591,346 | | | | 167,695 | |
Select EM Dividend Fund | | | 2,817,150 | | | | 213,848 | |
Small Cap Equity Fund | | | 939,856 | | | | — | |
Tactical Enhanced Fund | | | 890,025 | | | | — | |
Tax Character 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 characterizations of distributions and compositions of distributable earnings/(accumulated losses) are finalized at fiscal year-end; accordingly, these tax adjusted amounts have not been determined as of June 30, 2015.
The tax character of distributions paid for the year ended December 31, 2014 were as follows:
| | | | | | | | | | | | |
| Fund | | Ordinary
Income Total | | | Long-Term
Capital Total | | | Return of
Capital Total | |
Credit Analysis Long/Short Fund | | $ | 2,780,506 | | | $ | — | | | | — | |
Dynamic Income Fund | | | 914,757 | | | | — | | | | — | |
EM Corporate Debt Fund | | | 24,413,825 | | | | — | | | | — | |
Emerging Markets Fund | | | 240,000 | | | | — | | | | — | |
Global Dividend Fund | | | 675,940 | | | | 318,340 | | | | — | |
International Dividend Fund | | | 19,229,906 | | | | — | | | | — | |
International Small Companies Fund | | | 1,150,004 | | | | — | | | | — | |
Select EM Dividend Fund | | | 4,001,863 | | | | — | | | | — | |
Tactical Enhanced Fund | | | 3,300,005 | | | | — | | | | — | |
Tactical Growth Fund | | | 19,810,123 | | | | 20,582,711 | | | | — | |
Notes to Financial Statements (Unaudited)
9. 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.
10. Change of Independent Registered Public Accounting Firm
At a meeting held on June 9, 2015, the Board of Trustees selected KPMG LLP (“KPMG”) to serve as the Funds’ independent registered public accounting firm for the Funds’ fiscal year ending December 31, 2015. The decision to select KPMG followed the withdrawal of the previously selected registered public accounting firm, PricewaterhouseCoopers LLP (“PwC”), due to an independence issue resulting from the acquisition of Forward Management by Salient. During the Funds’ fiscal years ended December 31, 2014 and December 31, 2013, and through June 9, 2015, neither the Funds, their portfolios, nor anyone on their behalf, consulted with KPMG on items that: (i) concerned the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Funds’ financial statements; or (ii) concerned the subject of a disagreement (as defined in paragraph (a)(1)(iv) of Item 304 of Regulation S-K under the Securities Exchange Act of 1934) or reportable events (as described in paragraph (a)(1)(iv) of said Item 304).
Throughout the Funds’ two most recent fiscal years, and through June 9, 2015, the Funds had no disagreements with PwC on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedures, and there were no reportable events of the kind described in Item 304(a)(1)(v) of Regulation S-K. With respect to the Funds, PwC’s audit opinions for the past two fiscal years, have not contained either an adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope or accounting principles.
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, 2015. However, the following are details relating to the subsequent events through the date the financial statements were issued.
The following information applies to the Small Cap Equity Fund only:
Liquidation of Small Cap Equity Fund: On June 9, 2015, the Board of Trustees of Forward Funds, 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 Small Cap Equity Fund (the “Fund”), a series of the Trust. The Fund was liquidated pursuant to a Board-approved Plan of Liquidation on August 12, 2015 (the “Liquidation Date”). On the Liquidation Date, the 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 following information applies to the Dynamic Income Fund only:
At a meeting of the Board of Trustees, held on June 9-10, 2015, the Trustees, including all of the independent Trustees, approved, on behalf of the Dynamic Income Fund: (i) a change to the investment objective of the Dynamic Income Fund, to be effective in the 4th quarter of 2015; (ii) changes to the principal investment strategies of the Dynamic Income Fund, to be effective in the 4th quarter of 2015; (iii) a change of the benchmark indices for the Dynamic Income Fund, to be effective in the 4th quarter of 2015; (iv) changes to the Dynamic Income Fund’s investment team, to be effective in the 4th quarter of 2015; and (v) a change in diversification status of the Dynamic Income Fund to be effective in the 4th quarter of 2015.
Change to Investment Objective: Effective in the 4th quarter of 2015, the Dynamic Income Fund’s investment objective will be as follows:
The Fund seeks total return, with dividend and interest income being an important component of that return, while exhibiting less downside volatility than the Russell 3000 Index.
Change to Principal Investment Strategies: Effective in the 4th quarter of 2015, the Dynamic Income Fund’s Principal Investment Strategies will be as follows:
Under normal conditions, the Dynamic Income Fund invests at least 80% of its net assets plus borrowings for investment purposes, if any, in the equity securities of dividend paying companies located within the United States.
The Advisor selects investments based on their fundamental quality, dividend yield, dividend growth potential, valuation and anticipated price appreciation. For larger cap securities the Advisor typically employs a novel proprietary statistical measurement of relative
Notes to Financial Statements (Unaudited)
dividend yield to identify attractive investment opportunities. The Advisor draws on both internal and external resources to assess industry dynamics, business franchise/management strategy, financial analysis and valuation. For small-and mid-cap securities, the Advisor employs a both qualitative and quantitative screening technique. The methodology attempts to identify companies with favorable financial characteristics as well as to avoid companies with unfavorable financial characteristics. These characteristics can include, but are not limited to, earnings growth, profitability, valuation, cash flow, and leverage. The qualitative process gives preference to companies focused in a single business segment.
Change of Benchmark Indices: Effective June 12, 2015, the Russell U.S. Large Cap High Dividend Yield Index, a component of the Dynamic Income Blended Index, was terminated. Accordingly, effect June 12, 2015, the Dynamic Income Fund’s blended index was changed to the Dynamic Income Blended Index (70% Barclays U.S. Intermediate Corporate Index/30% MSCI USA IMI High Dividend Yield Index). Effective in the 4th quarter of 2015, the Russell 3000 Index will replace the Dynamic Income Fund’s prior benchmark indices. Forward Management made this recommendation to the Dynamic Income Fund’s Board of Trustees because the new index more closely aligns to the Dynamic Income Fund’s new investment strategies.
Changes to Investment Team: Effective in the 4th quarter of 2015, David L. Ruff, CFA, Portfolio Manager, Paul Broughton, CFA, Assistant Portfolio Manager, Randall T. Coleman, CFA, Portfolio Manager, Bruce R. Brewington, Portfolio Manager, and Eric Sagmeister, Portfolio Manager, will comprise the Dynamic Income Fund’s investment team. Mr. Ruff will be responsible for leading the investment team.
Change in Diversification Status: Effective in the 4th quarter of 2015, the Dynamic Income Fund will elect to be qualified as a diversified series of the Trust.
The following information applies to the Commodity Long/Short Strategy Fund:
At a meeting of the Board of Trustees, held on June 9-10, 2015, the Trustees, including all of the independent Trustees, approved, on behalf of the Commodity Long/Short Strategy Fund: (i) changes to the principal investment strategies of the Commodity Long/Short Strategy Fund, to be effective in the 4th quarter of 2015; (ii) changes to the Commodity Long/Short Strategy Fund’s investment team, to be effective in the 4th quarter of 2015; and (iii) a change of the benchmark index for the Commodity Long/Short Strategy Fund, to be effective in the 4th quarter of 2015.
Change to Principal Investment Strategies: Effective in the 4th quarter of 2015, the Commodity Long/Short Strategy Fund’s Principal Investment Strategies will be as follows:
The Fund employs an investment approach that makes both long and short investments in the commodity markets. Commodities are assets that have tangible properties, such as oil, metals, and agricultural products. The Fund’s investment approach is also used to gain exposure to momentum, which is defined as the continuation of recent price trends across a variety of global markets and asset classes and entails the Fund establishing long positions in securities that have had positive recent returns and short positions in securities that have had negative recent returns. To identify investments for the Fund, the Advisor constructs proprietary, systematic trend-following strategies that will generally trade in approximately 20-25 commodity futures and employ three measures of momentum. The Advisor then determines the global commodity markets appropriate for each trend-following strategy. In certain circumstances, the Advisor may limit or cap a trend-following strategy’s exposure to certain markets and instruments to reflect the limited liquidity of those markets and instruments. Portfolios are then created in which the Advisor attempts to balance the risk contribution of each trend-following strategy and the commodity markets within each strategy, for which the Advisor targets a 10% annualized standard deviation of returns (variance). The risk calculation is derived from each trend-following strategy’s standard deviation of returns, its correlation with each of the other strategies within the portfolio and the percentage weight of each strategy within the portfolio. The Fund’s portfolio is rebalanced dynamically according to this framework on at least a monthly basis, although rebalancing may occur more frequently.
The Fund does not invest directly in physical commodities, but gains synthetic exposure to commodity positions primarily through investments in commodity-linked derivative instruments, including futures contracts, forward contracts and swap agreements, and through investments in the Subsidiary.
The Fund may employ leveraged investment techniques to increase the Fund’s exposure to specific investment opportunities, including the use of futures contracts, forward contracts and swap agreements. The Fund may engage in these transactions to obtain both long and short investment exposures. The Advisor may seek to limit or cap the notional amount attributable to individual contracts, markets or the Fund’s portfolio in the aggregate to reflect the Fund’s target on risk.
Notes to Financial Statements (Unaudited)
Changes to Investment Team: Effective in the 4th quarter of 2015, Roberto M. Croce, Ph.D, Director of Quantitative Research, Lee G. Partridge, Chief Investment Officer, Nathan J. Rowader, Senior Portfolio Manager, and David Janec, Portfolio Manager, will comprise the Commodity Fund’s investment team. Dr. Croce will be responsible for leading the investment team.
Change of Benchmark Index: Effective in the 4th quarter of 2015, the S&P GSCI Commodity Index will replace the Commodity Long/Short Strategy Fund’s prior benchmark index. Forward Management made this recommendation to the Commodity Long/Short Strategy Fund’s Board of Trustees because the new index more closely aligns to the Commodity Long/Short Strategy Fund’s new investment strategies.
The Funds file a complete schedule of portfolio holdings with the Securities and Exchange Commission (“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, 2015. 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 SEC’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, 2015 are available (i) without charge, upon request, by calling 1-800-999-6809 and (ii) on the SEC’s website at www.sec.gov.
Approval of the Investment Management Agreement and Investment Sub-Advisory Agreements (Unaudited)
The Board of Trustees (the “Board”) of the Trust oversees the management of each series of the Trust and, as required by law, initially approves, and determines annually whether to renew, the investment advisory and sub-advisory agreements for management of each series of the Trust.
At a special in-person meeting of the Board held on January 13, 2015, the Board, including all of the Independent Trustees, unanimously voted to approve a new investment advisory agreement (the “New Advisory Agreement”) between Forward Management and the Trust on behalf of the Funds for an initial two-year period, subject to approval by the shareholders of each Fund and effective upon the closing of the acquisition of Forward Management by Salient (the “Transaction”). The successful closing of the Transaction would result in a change of control of Forward Management, which, in turn, would result in the automatic termination of any existing investment advisory agreement as required by the Investment Company Act. As a result, for Forward Management to continue to serve as investment advisor to the Funds after the Transaction, it was necessary for the Board to approve the New Advisory Agreement. The New Advisory Agreement is substantially identical to the previous investment advisory agreement between the Trust and Forward Management (the “Previous Advisory Agreement”), which the Board had reviewed and approved at an in-person meeting of the Board held on December 10, 2014. The Board acknowledged that its duties under Section 15(c) of the Investment Company Act with respect to the Board’s consideration and approval of the Previous Advisory Agreement would be equally applicable to the Board’s deliberations and approval of the New Advisory Agreement. For the reasons summarized below, the Board concluded that approval of the New Advisory Agreement resulting from the Transaction was in the best interests of each Fund and its shareholders. The New Advisory Agreement became effective on June 9, 2015 following approval by the shareholders of each Fund and the closing of the Transaction.
Also at the January 13, 2015 meeting, the Board, including all of the Independent Trustees, unanimously voted to approve the new sub-advisory agreements between the Trust, Forward Management and the following sub-advisors (each a “Sub-Advisor” and collectively, the “Sub-Advisors”) (each a “New Sub-Advisory Agreement,” collectively, the “New Sub-Advisory Agreements,” and together with the New Advisory Agreement, the “New Agreements”) on behalf of the Fund(s) listed next to each Sub-Advisor’s name.
| | |
| Sub-Advisor | | Fund |
Broadmark Capital Management, LLC (“Broadmark”) | | Forward Tactical Growth Fund |
Pictet Asset Management Ltd (“Pictet”) | | Forward International Small Companies Fund (non-cash portion) |
Pacific Investment Management Company LLC (“PIMCO”) | | Forward Credit Analysis Long/Short Fund |
SW Asset Management, LLC (“SW”) | | Forward EM Corporate Debt Fund |
The New Sub-Advisory Agreements are each substantially identical to the previous, respective sub-advisory agreements between the Trust, Forward Management and the Sub-Advisors (each an “Previous Sub-Advisory Agreement,” collectively, the “Previous Sub-Advisory Agreements,” and together with the Previous Advisory Agreement, the “Previous Agreements”), with the exception of their initial term. Each Previous Sub-Advisory Agreement had an initial term of up to one year, whereas the New Sub-Advisory Agreements state that they will remain in full force and effect for a period of up to two years for their initial term, with continuation thereafter contingent on annual approval of renewal by the Board. The Independent Trustees also consulted with their independent legal counsel, discussing, among other things, the legal standards and certain other considerations relevant to the Board members’ deliberations. For the reasons summarized below, the Board concluded that approval of the New Sub-Advisory Agreements was in the best interests of each Fund and its shareholders. The New Sub-Advisory Agreement between the Trust, Forward Management and Broadmark became effective on June 9, 2015 following approval by the shareholders of the Forward Tactical Growth Fund and the closing of the Transaction. The New Sub-Advisory Agreements between the Trust, Forward Management and, respectively, Pictet and PIMCO became effective on June 9, 2015 pursuant to an exemptive order from the U.S. Securities and Exchange Commission that permits Forward Management, subject to Board approval, to hire non-affiliated sub-advisors for the Forward International Small Companies Fund and the Forward Credit Analysis Long/Short Fund without shareholder approval. The New Sub-Advisory Agreement between the Trust, Forward Management and SW was approved by shareholders of the Forward EM Corporate Debt Fund, but did not become effective as SW ceased to serve as a Sub-Advisor to the Forward EM Corporate Debt Fund effective June 9, 2015.
Beginning in September of 2014 and over the course of the Board’s due diligence in connection with its consideration of the New Agreements and the Transaction, the Independent Trustees solicited and received ongoing advice regarding the Board’s legal duties from independent legal counsel to the Independent Trustees. And with assistance from their legal counsel, the Independent Trustees also prepared written and oral requests for information from Forward Management, the Sub-Advisors and Salient regarding the Transaction, Previous Agreements and the New Agreements, including details regarding each entity’s anticipated business plan for continuing operations after the Transaction. At in-person meetings of the Board on September 15-16, 2014, October 27, 2014, December 10, 2014, and January 13, 2015, the Board received and reviewed written responses and in-person presentations by senior management personnel from Forward Management, the Sub-Advisors and Salient (the “15(c) Materials”) to enable the Board to evaluate the terms of the Previous Agreements and New Agreements.
Approval of the Investment Management Agreement and Investment Sub-Advisory Agreements (Unaudited)
In certain sessions, the Independent Trustees met alone with only their legal counsel present. At other times, the Independent Trustees engaged in formal and informal discussions among themselves, their legal counsel, and representatives of Forward Management, the Sub-Advisors and Salient as they deemed necessary.
Discussed below are the factors the Board considered in approving the New Agreements. This discussion is not intended to be all-inclusive. The Board reviewed a variety of factors and considered a significant amount of information, including the 15(c) Materials and information received on an ongoing basis at Board and Board committee meetings.
In connection with its approval of the New Agreements on January 13, 2015, the Board considered its conclusions in connection with its September 15-16, 2014 and December 10, 2014 approvals of the Previous Agreements, including the Board’s general satisfaction with the nature and quality of services being provided by Forward Management and the Sub-Advisors under the Previous Agreements. Therefore, in considering the New Agreements, the Board focused its review on, and requested and evaluated other information relating to, the potential impact of the Transaction on the operations, personnel, organizational structure, capitalization, and financial and other resources of Forward Management, the Sub-Advisors and each entity’s affiliates that render advisory, administrative, distribution, compliance, and other services to the Funds. In connection with its January 13, 2015 approval of the New Sub-Advisory Agreements, for the Forward Tactical Growth Fund and the Forward EM Corporate Debt Fund, the Board considered information provided by Forward Management and Salient regarding the impact of the transfer of interests in Broadmark and SW, respectively, from Forward Management to Salient. Also in connection with its January 13, 2015 approval of the New Agreements, the Board took into account that, commencing in September of 2014, it had posed ongoing inquiries related to the Transaction and received regular updates and information in response from Forward Management and Salient. In particular, the Board considered assurances from Forward Management and Salient that neither was aware of any additional developments, including at Broadmark and SW, unrelated to the Transaction and not already disclosed to the Board or its representatives since September 15-16, 2014 and December 10, 2014 that would be a material consideration to the Board in connection with its consideration of the New Agreements. Accordingly, a substantial portion of this review was conducted as part of, and in conjunction with, the Board’s annual review of the Previous Agreements, during which the Board was aware that it likely would be asked in the near future to consider approval of the New Agreements.
On September 15-16, 2014 and December 10, 2014, the Board concluded, in light of all factors it considered, that the approval of the Previous Agreements was in the best interests of each Fund and its shareholders and that the fee rates set forth in the Previous Agreements were fair and reasonable. Among other factors, the Board considered: (1) the nature and quality of services provided and to be provided under the Previous Agreements; (2) the extent to which economies of scale are reflected in fee schedules under the Previous Agreements; (3) the existence of any “fall-out” benefits to Forward Management, the Sub-Advisors and each entity’s affiliates, if applicable; (4) a comparison of fee rates, expense ratios, and investment performance to those of similar funds; and (5) the costs incurred and profits realized by Forward Management, the Sub-Advisors and each entity’s affiliates with respect to their services to each Fund. A further description of the considerations taken into account by the Board in approving the continuation of the Previous Agreements, including the information reviewed, certain material factors considered, and certain related conclusions reached, is available in the Forward Funds’ annual reports for the most recent fiscal year ended December 31, 2014.
The Board considered representations by Forward Management and its affiliates, as well as related supporting documentation and advice from legal counsel, indicating that the New Advisory Agreement is substantially similar to and, in any event, no less favorable to the Funds than, the terms of the Previous Advisory Agreement (including the fees payable thereunder). The Board also considered additional advice provided by legal counsel relating to the New Advisory Agreement, including advice relating to the process and timing of seeking shareholder approval. The Board considered that Forward Management and Salient agreed to bear the expenses associated with obtaining Board and shareholder approval of the New Advisory Agreement and that the Funds would not bear any costs associated with the Transaction. The Board also noted that the agreement between Forward Management and Salient governing the Transaction contained representations that no “unfair burden” would be imposed on the Funds following the closing of the Transaction, in accordance with Section 15(f) of the Investment Company Act.
The Board’s consideration of the New Agreements focused on, among other matters, the expectations for continuity and stability of Forward Management throughout the implementation of the Transaction and thereafter, as well as the potential impact of the Transaction on the sub-advisory services provided by the Sub-Advisors. The Board carefully considered Forward Management’s anticipated future plans related to operational matters and levels of staffing and related compensation structures. In this regard, the Independent Trustees noted that they had requested and received
Approval of the Investment Management Agreement and Investment Sub-Advisory Agreements (Unaudited)
assurances that: (i) Forward Management and its affiliates are committed to maintaining appropriate levels of overall staffing, ongoing resources and service quality; (ii) Forward Management and the Sub-Advisors each could be expected to provide services of the same nature, extent, and quality under the New Agreements as were provided thereby, respectively, under the Previous Agreements; and (iii) the Transaction was not expected to result in any material changes to the investment objective of or the principal investment strategies used to manage any of the Funds. In addition, the Board considered representations by Forward Management and Salient and their affiliates that Forward Management’s ownership by Salient as contemplated by the Transaction, including changes in certain key officers, would not lead to a reduction in the quality or scope of these and other services provided to the Funds.
The Board considered acknowledgements from Salient of the importance of Forward Management continuing to be able to operate in the interests of Fund shareholders. Also, the Board considered the potential benefits that may be realized by Forward Management and its affiliates as a result of the continuation of their relationship with the Funds under the New Advisory Agreement. In addition, the Board considered that, following the Transaction, the Board will continue to monitor on a regular basis the ability of Forward Management and its affiliates to comply with their undertakings and to monitor on an ongoing basis the quality of services to, and expenses of, the Funds. Additionally, the Board considered that, under the New Advisory Agreement, it will continue to have the authority, should the need arise in its view, to terminate the New Advisory Agreement without penalty upon 60 days’ notice.
In this connection, the Board generally was satisfied with the nature and quality of the services expected to be provided by Forward Management to the Funds following the Transaction, including investment advisory, administrative, and support services, and decided that it would be in the Funds’ best interests to maintain continuity and stability of the services currently being provided.
In addition, the Board considered, among other things, the following:
1. A representation from Salient that all contractual expense limitations for the Forward Funds in place as of January 13, 2015 or put in place prior to May 1, 2015 would be continued through at least April 30, 2017 should the Transaction be completed.
2. A representation from Salient that neither Forward Management nor Salient will propose any increases to any asset-based or per account fees borne by the Funds, to the extent such fees are within the control of Salient or Forward Management, for at least the two-year period following the Transaction.
3. A representation from Salient that should the Transaction be completed, Forward Management would engage in good faith discussions with the Board on a going forward basis with respect to the desirability of continuing the various expense limitation agreements in place for the Funds and imposing new expense limitation agreements should circumstances give rise to material increases in the Funds’ expense ratios.
In reaching its determination to approve the New Advisory Agreement, the Board considered the additional resources that were expected to be made available to the Funds and Forward Management as a result of the Transaction, the fact that Forward Management would become part of a larger asset management firm as a result of the Transaction, and that the Transaction was not expected to have any material impact on the Funds’ investment strategies.
In this connection, the Board noted that no one factor was determinative of its decisions which, instead, were premised upon the totality of factors considered. The approval determinations were made on the basis of each Board member’s business judgment after consideration of all of the information taken as a whole. The Board also noted that different Trustees likely placed emphasis on different factors in reaching their individual conclusions to approve in favor of the New Agreements.
Based on the foregoing and other relevant considerations, the Board, including all of the Independent Trustees, concluded that, in light of all factors considered, the terms of the New Agreements, including fee rates, were fair and reasonable, and that it would be in the best interests of the shareholders of each Fund to approve the New Agreements so as to enable there to be a continuation without interruption of the current services being provided by Forward Management and the Sub-Advisors pursuant to the Previous Agreements. Based on the Trustees’ deliberations and their evaluation of the information described above, the Trustees, including all of the Independent Trustees, unanimously approved, with respect to the Funds, the New Advisory Agreement and New Sub-Advisory Agreements.
Additional Company Information (Unaudited)
Board of Trustees
The Trust’s Board of Trustees oversees the management and business of the Funds. The Trustees are elected by shareholders of the Trust, or, in certain circumstances, may be appointed by the other Trustees. There are currently eleven Trustees, ten of whom are not “interested persons” of the Trust as that term is defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (each an “Independent Trustee” and together, the “Independent Trustees”) and two Advisory Board members. The Trustees, Advisory Board members and Officers of the Trust, along with their affiliations over the last five years, are set forth below. The Trust’s Statement of Additional Information includes additional information about the Trustees and is available at forwardinvesting.com or upon request, without charge, by calling 800-999-6809.
Independent Trustees:
| | | | | | | | | | |
Name, Address,
and Year of
Birth* | | Position(s)
Held with
the Trust | | Term of
Office and
Length of Time Served** | | Principal Occupation(s) During Past Five Years | | Number of
Funds in Fund
Complex
Overseen by
Trustee | | Other Directorships Held by Trustee*** |
Haig G. Mardikian Year of Birth: 1947 | | Chairman | | Since 1998+ | | Owner of Haig G. Mardikian Enterprises, a real estate investment business (since 1971); General Partner of M&B Development, a real estate investment business (since 1983); General Partner of George M. Mardikian Enterprises, a real estate investment business (1983 to 2002); President and Director of Adiuvana-Invest, Inc., a real estate investment business (since 1989); Director of PCG Asset Management, a private equity investment advisor (2001 to 2011); President of the William Saroyan Foundation (since 1992); Managing Director of the United Broadcasting Company, radio broadcasting (1983 to 2001); Trustee of the International House of UC Berkeley (2001 to 2007); Director of the Downtown Association of San Francisco (1982 to 2006); Director of the Market Street Association (1982 to 2006); Trustee of Trinity College (1998 to 2007); Trustee of the Herbert Hoover Presidential Library (since 1997); Trustee of the Herbert Hoover Foundation (since 2002); Trustee of the Advisor California Civil Liberties Public Education Fund (1997 to 2006); Director of The Walnut Management Co., a privately held family investment company (since 2008); President of the Foundation of City College (2006 to 2010); Director of Near East Foundation (since 2007). | | 29 | | Chairman and Director of SIFE Trust Fund (1978 to 2001). |
| | | | | |
Donald O’Connor Year of Birth:1936 | | Trustee | | Since 2000+ | | Financial Consultant (since 1997); Retired Vice President of Operations, Investment Company Institute (“ICI”), a mutual fund trade association (1969 to 1993); Executive Vice President and Chief Operating Officer, ICI Mutual Insurance Company, an insurance company (1987 to 1997); Chief, Branch of Market Surveillance, Securities and Exchange Commission (1964 to 1969). | | 29 | | Trustee of the Advisors Series Trust (47 funds) (since 1997). |
Additional Company Information (Unaudited)
| | | | | | | | | | |
Name, Address,
and Year of
Birth* | | Position(s)
Held with
the Trust | | Term of
Office and
Length of Time Served** | | Principal Occupation(s) During Past Five Years | | Number of
Funds in Fund
Complex
Overseen by
Trustee | | Other Directorships Held by Trustee*** |
Cecilia H. Herbert Year of Birth: 1949 | | Trustee, Nominating Committee Chairperson | | Since 2009+ | | Director (2000 to 2013) and President (2007 to 2010) of the Board, Catholic Charities CYO; Member, Archdiocese Finance Committee, the advisory council to the San Francisco Catholic Archdiocese (since 1994); Trustee, The Thacher School (2002 to 2011); Trustee, WNET, the public media company of New York (since 2011); Managing Director and head of San Francisco Office, J.P. Morgan/Morgan Guaranty Trust Company, a commercial and investment banking institution (1973 to 1976 and 1978 to 1991). | | 29 | | Director, iShares Inc. (since 2005) and iShares MSCI Russia Capped ETF, Inc. (since 2010), and Trustee, iShares Trust (since 2005) and iShares U.S. ETF Trust (since 2011) (collectively, 335 funds); Trustee, Pacific Select Funds (2004 to 2005); Trustee, The Montgomery Funds (1992 to 2003). |
| | | | | |
Julie Allecta Year of Birth: 1946 | | Trustee, Audit Committee Chairperson | | Since 2012+ | | Retired Partner, Paul Hastings, Janofsky & Walker LLP (1999 to 2009); Member of Governing Council, Independent Directors Council (since 2014); Vice President and Director, WildCare Bay Area (since 2007); Director, Audubon Canyon Ranch, Inc. (2009 to 2014); Parliamentarian and Director, American Society of Botanical Artists, Northern California Chapter (2014). | | 29 | | Trustee, Litman Gregory Funds Trust (four funds) (since 2013). |
| | | | | |
A. John Gambs Year of Birth: 1945 | | Trustee | | Since 2012+ | | Director and Compensation Committee Chair, NMI Holdings, Inc. (2011 to 2012); Trustee and Audit Committee Chair, Barclays Global Investors Funds (2006 to 2010); Trustee and Audit Committee Chair, Master Investment Portfolio (2006 to 2010); Advisory Board Member, Fairview Capital Management (since 2009); Director, San Francisco Classical Voice (since 2011); Member, Board of Governors San Francisco Symphony (since 2001); Director, The New Century Chamber Orchestra (since 2010); Executive Vice President and Chief Financial Officer, The Charles Schwab Corporation (1988 to 1996); President and Director, Gambs Family Foundation (1997 to 2010). | | 29 | | None. |
Additional Company Information (Unaudited)
| | | | | | | | | | |
Name, Address,
and Year of
Birth* | | Position(s)
Held with
the Trust | | Term of
Office and
Length of Time Served** | | Principal Occupation(s) During Past Five Years | | Number of
Funds in Fund
Complex
Overseen by
Trustee | | Other Directorships Held by Trustee*** |
Karin B. Bonding, CFA Year of Birth: 1939 | | Trustee | | Since 2015+ | | Lecturer, University of Virginia (1996 to 2015); President of Capital Markets Institute, Inc. (fee-only financial planner and investment advisor) (since 1996). | | 29 | | Salient MF Trust (seven funds) (since 2012); The Endowment Funds (five funds) (since 2010); Salient MLP & Energy Infrastructure Fund (2011 to 2014); Salient Midstream & MLP Fund (since 2012); Salient Alternative Strategies Funds (two funds) (since 2010); Brandes Investment Trust (2006 to 2012); Credit Suisse Alternative Capital Funds (2005 to 2010). |
| | | | | |
Jonathan P. Carroll Year of Birth: 1961 | | Trustee | | Since 2015+ | | President, Lazarus Capital LLC (holding company) (since 2006); President, Lazarus Energy Holdings, LLC (holding company) (since 2006); President and Chief Executive Officer, Blue Dolphin Energy Company (since 2012); private investor (since 1995). | | 29 | | Salient MF Trust (seven funds) (since 2012); The Endowment Funds (five funds) (since 2004); The PMF Funds (three funds) (since 2014); Salient MLP & Energy Infrastructure Fund (2011 to 2014); Salient Midstream & MLP Fund (since 2012); Salient Alternative Strategies Funds (two funds) (since 2010); LRR Energy, L.P. (energy company) (since 2014); Blue Dolphin Energy Company (energy company) (since 2014). |
Additional Company Information (Unaudited)
| | | | | | | | | | |
Name, Address,
and Year of
Birth* | | Position(s)
Held with
the Trust | | Term of
Office and
Length of Time Served** | | Principal Occupation(s) During Past Five Years | | Number of
Funds in Fund
Complex
Overseen by
Trustee | | Other Directorships Held by Trustee*** |
Dr. Bernard A. Harris, Jr. Year of Birth: 1956 | | Trustee | | Since 2015+ | | Chief Executive Officer and Managing Partner, Vesalius Ventures, Inc. (venture investing) (since 2002); President of The Space Agency (marketing) (since 1999); President of The Harris Foundation (non-profit) (since 1998); clinical scientist, flight surgeon and astronaut for NASA (1986 to 1996); Member, Board of Directors, National Math and Science Initiative (since 2008); Member, Board of Directors, The Space Agency (since 2008); Member, Board of Directors, Communities in Schools (since 2007); Member, Board of Directors, American Telemedicine Association (since 2007); Director, U.S. Physical Therapy, Inc. (since 2005); Director, Houston Technology Center (since 2004); Member, Board of Directors, Houston Angel Network (since 2004). | | 29 | | Salient MF Trust (seven funds) (since 2012); The Endowment Funds (five funds) (since 2009); Salient MLP & Energy Infrastructure Fund (2011 to 2014); Salient Midstream & MLP Fund (since 2012); Salient Alternative Strategies Funds (two funds) (since 2010); Babson Funds (five funds) (since 2011); Monebo Technologies Inc. (medical) (since 2009); Sterling Bancshares, Inc. (2007 to 2014). |
| | | | | |
Richard C. Johnson Year of Birth: 1937 | | Trustee | | Since 2015+ | | Senior Counsel (retired), Baker Botts LLP (law firm); Managing Partner, Baker Botts (1998 to 2002); practiced law at Baker Botts (1966 to 2002, including from 1972 to 2002 as a partner). | | 29 | | Salient MF Trust (seven funds) (since 2012); The Endowment Funds (five funds) (since 2004); The PMF Funds (three funds) (since 2014); Salient MLP & Energy Infrastructure Fund (2011 to 2014); Salient Midstream & MLP Fund (since 2012); Salient Alternative Strategies Funds (two funds) (since 2010). |
Additional Company Information (Unaudited)
| | | | | | | | | | |
Name, Address,
and Year of
Birth* | | Position(s)
Held with
the Trust | | Term of
Office and
Length of Time Served** | | Principal Occupation(s) During Past Five Years | | Number of
Funds in Fund
Complex
Overseen by
Trustee | | Other Directorships Held by Trustee*** |
Scott E. Schwinger Year of Birth: 1965 | | Trustee | | Since 2015+ | | President, The McNair Group (management) (since 2006); Senior Vice President and Chief Financial Officer, The Houston Texans (professional football team) (since 1999), Member, Board of Directors, The Make-A-Wish Foundation, Texas Gulf Coast and Louisiana (since 2008); Member, Board of Directors, YES Prep Public Schools (2001 to 2014); Director, Houston Technology Center (since 2013). | | 29 | | Salient MF Trust (seven funds) (since 2012); The Endowment Funds (five funds) (since 2004); The PMF Funds (three funds) (since 2014); Salient MLP & Energy Infrastructure Fund (2011 to 2014); Salient Midstream & MLP Fund (since 2012); Salient Alternative Strategies Funds (two funds) (since 2012). |
Additional Company Information (Unaudited)
Interested Trustee:
| | | | | | | | | | |
Name, Address, and Year of
Birth* | | Position(s) Held with the Trust | | Term of Office and Length of Time
Served** | | Principal Occupation(s) During Past Five Years | | Number of
Funds in Fund
Complex
Overseen by
Trustee | | Other Directorships Held by Trustee*** |
| John A. Blaisdell**** Year of Birth: 1960 | | President, Trustee | | Since 2015+ | | Chief Executive Officer and Director of Forward Management, LLC, an investment advisor (since 2015); Member, Investment Committee of Salient Advisors, L.P. (since 2002); Managing Director of Salient Partners, L.P. (since 2002). | | 29 | | Salient MF Trust (seven funds) (since 2012); The Endowment Funds (five funds) (since 2004); The PMF Funds (three funds) (since 2014); Salient MLP & Energy Infrastructure Fund (2011 to 2014); Salient Midstream & MLP Fund (since 2012); Salient Alternative Strategies Funds (two funds) (since 2012). |
| * | Each Trustee may be contacted by writing to the Trustee, c/o Forward Management, LLC, 101 California Street, 16th Floor, San Francisco, CA 94111. |
| ** | Each Trustee will hold office for an indefinite term until the earliest of (i) the next meeting of shareholders, if any, called for the purpose of considering the election or re-election of such Trustee and until the election and qualification of his successor, if any, elected at such meeting; or (ii) the date a Trustee resigns or retires, or a Trustee is removed by the Board of Trustees or shareholders, in accordance with the Trust’s Amended and Restated Agreement and Declaration of Trust (the “Declaration of Trust”). |
| *** | This column includes only directorships of companies required to report to the SEC under the Securities Exchange Act of 1934 (i.e., public companies) or other investment companies registered under the 1940 Act. |
| **** | Mr. Blaisdell is considered an interested Trustee because he acts as Chief Executive Officer of Forward Management, LLC, the Funds’ investment advisor, and holds other positions with an affiliate of the Trust. |
| + | Messrs. Mardikian, and O’Connor have served as Trustee to the Trust since May 1, 2005. However, beginning on the date indicated in the chart, Messrs. Mardikian, and O’Connor served as a director for the nine series of Forward Funds, Inc., which were reorganized as series of the Trust effective July 1, 2005. Ms. Herbert was appointed as a Trustee effective November 9, 2009. Ms. Allecta was appointed as a Trustee effective January 1, 2012 and elected by shareholders of the Trust as a Trustee effective June 9, 2015. Mr. Gambs was appointed as a Trustee effective December 31, 2012 and elected by shareholders of the Trust as a Trustee effective June 9, 2015. Messrs. Blaisdell, Carroll, Harris, Johnson, and Schwinger and Ms. Bonding were each elected by shareholders of the Trust as a Trustee effective June 9, 2015. |
Additional Company Information (Unaudited)
Advisory Board Members:
| | | | | | | | | | |
Name, Address, and Year of
Birth | | Position(s) Held with the Trust | | Term of Office and Length of Time
Served* | | Principal Occupation(s) During Past Five Years | | Number of
Funds in Fund
Complex
Served by
Advisory Board
Member | | Directorships Held by Advisory Board
Member |
DeWitt F. Bowman 101 California Street, 16th Floor San Francisco, CA 94111 Year of Birth: 1930 | | Advisory Board Member | | Since 2015 | | Pension Investment Consulting, a consulting company (since 1994); Interim Treasurer and Vice President for Investments, University of California (2000 to 2001); Treasurer of Pacific Pension Institute, a non-profit education organization (1994 to 2002); Treasurer of Edgewood Center for Children and Families, a non-profit care center (1994 to 2004); Director, Episcopal Diocese of California, a non-profit religious organization (1964 to 2008); Trustee of the Pacific Gas and Electric Nuclear Decommissioning Trust Fund, a nuclear decommissioning trust (since 1994); Chief Investment Officer, California Public Employees Retirement System (1989 to 1994). | | 29 | | Trustee, Forward Funds (2006 to 2015)+; Trustee, Brandes Mutual Funds (1995 to 2012); Lead Director, RREEF America III REIT (2007 to 2012); Director, RREEF America I REIT (2004 to 2007); Trustee, PCG Private Equity Fund (since 1994). |
| | | | | |
G. Edward Powell 101 California Street, 16th Floor San Francisco, CA 94111 Year of Birth: 1936 | | Advisory Board Member | | Since 2015 | | Principal of Mills & Stowell (private equity) (since 2002); Managing Partner, PriceWaterhouse & Co., Houston office (1982 to 1994) ; Therapy Track, LLC (2009 to 2012); Director, Global Water Technologies, Inc.; Director, Datavox Holdings, Inc.; Energy Services International, Inc. (2004 to 2013). | | 29 | | Salient MF Trust (seven funds) (since 2012); The Endowment Funds (five funds) (since 2004); The PMF Funds (three funds) (since 2014); Salient MLP & Energy Infrastructure Fund (2011 to 2014); Salient Midstream & MLP Fund (since 2012); Salient Alternative Strategies Funds (two funds) (since 2012). |
| * | Each Advisory Board member will hold office for an indefinite term, except that any Advisory Board member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. |
| + | Since 2000, Mr. Bowman also served as a director for the nine series of Forward Funds, Inc., which were reorganized as series of the Trust effective July 1, 2005. |
Additional Company Information (Unaudited)
Officers:
| | | | | | |
Name, Address, and Year of Birth* | | Position(s)
Held with the Trust | | Term of Office and Length of
Time Served | | Principal Occupation(s) During Past Five Years |
Robert S. Naka 101 California Street, 16th Floor San Francisco, CA 94111 Year of Birth: 1963 | | Vice President and Secretary | | Vice President since 2009 and Secretary since 2012 | | President, Trust (2015); Chief Operating Officer, Forward Management, LLC (since 2009); Interim Chief Executive Officer, Forward Management, LLC (2015); Principal & Chief Operating Officer, Anew Capital Management LLC (2007 to 2009); Executive Vice President & Chief Operating Officer, ING Funds & Predecessors (1989 to 2007). |
| | | |
Barbara H. Tolle 101 California Street, 16th Floor San Francisco, CA 94111 Year of Birth: 1949 | | Treasurer | | Since 2006 | | Vice President, Director of Fund Accounting and Operations, Forward Management, LLC (since 2006); Vice President and Director, Fund Accounting and Administration, PFPC Inc. (1998 to 2006). |
| | | |
Judith M. Rosenberg 101 California Street, 16th Floor San Francisco, CA 94111 Year of Birth: 1948 | | Chief Compliance Officer and Chief Legal Officer | | Since 2005 | | Chief Compliance Officer, Forward Management, LLC (2005 to 2015); Chief Compliance Officer and Secretary, Forward Securities, LLC (since 2010); First Vice President and Senior Attorney, Morgan Stanley (1984 to 1997; 2002 to 2005); Director of Compliance, Morgan Stanley Online (1997 to 2002). |
| | | |
Kathryn A. Burns 1290 Broadway, Suite 1100 Denver, CO 80203 Year of Birth: 1976 | | Assistant Treasurer | | Since 2014 | | Assistant Vice President and Fund Controller, ALPS Fund Services, Inc. (since 2013); Vice President and Chief Compliance Officer, Old Mutual Capital (2010 to 2012); Vice President and Regulatory Reporting Manager, Old Mutual Capital (2006 to 2012); Manager, PricewaterhouseCoopers LLP (2004 to 2006). |
| * | Each officer shall hold office at the pleasure of the Board of Trustees until the next annual meeting of the Trust or until his or her successor is duly elected and qualified, or until he or she dies, resigns, is removed or becomes disqualified. |
Shareholder Voting Results (Unaudited)
Forward Funds
Special Meeting of Shareholders
May 6, 2015
May 29, 2015
Special Meetings of the Shareholders of each of the series of Forward Funds (the “Trust”), were held on May 6, 2015 (the “May 6, 2015 Meeting”) and May 29, 2015 (the “May 29, 2015 Meeting”) to approve proposals in connection with the acquisition of Forward Funds’ investment advisor, Forward Management, LLC (“Forward Management”) by Salient Partners, L.P. (the “Transaction”), which closed on June 9, 2015 and resulted in a change of control of Forward Management. In addition, shareholders were asked to approve the election of eight Trustees to serve on the Board of Trustees of the Trust (the “Board”). The following Trustees, who currently serve on the Board, were previously elected or appointed to the Board prior to May 6, 2015: Julie Allecta, A. John Gambs, Cecilia H. Herbert, Haig G. Mardikian, and Donald E. O’Connor.
At the May 6, 2015 Meeting, the shareholders of the Forward Commodity Long/Short Strategy Fund, Forward Credit Analysis Long/Short Fund, Forward Dynamic Income Fund, Forward EM Corporate Debt Fund, Forward Emerging Markets 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 and Forward Tactical Growth Fund (each, a “Fund”) approved the following proposals:
Forward Commodity Long/Short Strategy Fund
Proposal 1. To approve a new investment advisory agreement between the Fund and Forward Management, the Fund’s current investment advisor, as a result of the Transaction:
Votes in favor represented 56.193% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,330,215.600 | | | | 51.435% | |
Against | | | 21,561.000 | | | | 0.834% | |
Abstain | | | 23,049.156 | | | | 0.891% | |
Broker Non-Vote | | | 992,398.000 | | | | 38.372% | |
| | | | | | | | |
Total | | | 2,367,223.756 | | | | 91.532% | |
Proposal 4. To elect eight Trustees to serve until their successors are elected and qualified, provided that the election of nominees 4c through 4h as Trustees is contingent upon and will not be effective until the closing of the Transaction:
4a. Julie Allecta
Votes in favor represented 97.303% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 2,303,383.600 | | | | 89.064% | |
Withhold | | | 63,840.156 | | | | 2.468% | |
| | | | | | | | |
Total | | | 2,367,223.756 | | | | 91.532% | |
4b. A. John Gambs
Votes in favor represented 97.339% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 2,304,222.600 | | | | 89.096% | |
Withhold | | | 63,001.156 | | | | 2.436% | |
| | | | | | | | |
Total | | | 2,367,223.756 | | | | 91.532% | |
Shareholder Voting Results (Unaudited)
4c. Karin B. Bonding
Votes in favor represented 97.273% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 2,302,668.624 | | | | 89.036% | |
Withhold | | | 64,555.132 | | | | 2.496% | |
| | | | | | | | |
Total | | | 2,367,223.756 | | | | 91.532% | |
4d. Jonathan P. Carroll
Votes in favor represented 80.465% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,904,789.624 | | | | 73.651% | |
Withhold | | | 462,434.132 | | | | 17.881% | |
| | | | | | | | |
Total | | | 2,367,223.756 | | | | 91.532% | |
4e. Dr. Bernard A. Harris
Votes in favor represented 97.189% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 2,300,684.624 | | | | 88.959% | |
Withhold | | | 66,539.132 | | | | 2.573% | |
| | | | | | | | |
Total | | | 2,367,223.756 | | | | 91.532% | |
4f. Richard C. Johnson
Votes in favor represented 97.308% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 2,303,507.624 | | | | 89.068% | |
Withhold | | | 63,716.132 | | | | 2.464% | |
| | | | | | | | |
Total | | | 2,367,223.756 | | | | 91.532% | |
4g. Scott E. Schwinger
Votes in favor represented 97.331% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 2,303,043.624 | | | | 89.089% | |
Withhold | | | 63,180.132 | | | | 2.443% | |
| | | | | | | | |
Total | | | 2,367,223.756 | | | | 91.532% | |
4h. John A. Blaisdell
Votes in favor represented 97.153% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 2,299,830.624 | | | | 88.926% | |
Withhold | | | 67,393.132 | | | | 2.606% | |
| | | | | | | | |
Total | | | 2,367,223.756 | | | | 91.532% | |
Shareholder Voting Results (Unaudited)
Forward Credit Analysis Long/Short Fund
Proposal 1. To approve a new investment advisory agreement between the Fund and Forward Management, the Fund’s current investment advisor, as a result of the Transaction:
Votes in favor represented 62.298% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 9,589,576.896 | | | | 52.858% | |
Against | | | 64,013.386 | | | | 0.353% | |
Abstain | | | 190,808.312 | | | | 1.052% | |
Broker Non-Vote | | | 5,548,583.000 | | | | 30.584% | |
| | | | | | | | |
Total | | | 15,392,981.594 | | | | 84.847% | |
Proposal 4. To elect eight Trustees to serve until their successors are elected and qualified, provided that the election of nominees 4c through 4h as Trustees is contingent upon and will not be effective until the closing of the Transaction:
4a. Julie Allecta
Votes in favor represented 98.296% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 15,130,678.594 | | | | 83.401% | |
Withhold | | | 262,303.000 | | | | 1.446% | |
| | | | | | | | |
Total | | | 15,392,981.594 | | | | 84.847% | |
4b. A. John Gambs
Votes in favor represented 98.239% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 15,121,864.594 | | | | 83.352% | |
Withhold | | | 271,117.000 | | | | 1.494% | |
| | | | | | | | |
Total | | | 15,392,981.594 | | | | 84.846% | |
4c. Karin B. Bonding
Votes in favor represented 97.781% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 15,051,395.631 | | | | 82.964% | |
Withhold | | | 341,585.963 | | | | 1.883% | |
| | | | | | | | |
Total | | | 15,392,981.594 | | | | 84.847% | |
4d. Jonathan P. Carroll
Votes in favor represented 94.042% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 14,475,819.631 | | | | 79.791% | |
Withhold | | | 917,161.963 | | | | 5.055% | |
| | | | | | | | |
Total | | | 15,392,981.594 | | | | 84.846% | |
Shareholder Voting Results (Unaudited)
4e. Dr. Bernard A. Harris
Votes in favor represented 98.081% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 15,097,544.631 | | | | 83.218% | |
Withhold | | | 295,436.963 | | | | 1.628% | |
| | | | | | | | |
Total | | | 15,392,981.594 | | | | 84.846% | |
4f. Richard C. Johnson
Votes in favor represented 97.778% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 15,050,893.631 | | | | 82.961% | |
Withhold | | | 342,087.963 | | | | 1.886% | |
| | | | | | | | |
Total | | | 15,392,981.594 | | | | 84.847% | |
4g. Scott E. Schwinger
Votes in favor represented 97.823% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 15,057,807.631 | | | | 82.999% | |
Withhold | | | 335,173.963 | | | | 1.847% | |
| | | | | | | | |
Total | | | 15,392,981.594 | | | | 84.846% | |
4h. John A. Blaisdell
Votes in favor represented 98.245% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 15,122,878.017 | | | | 83.358% | |
Withhold | | | 270,103.577 | | | | 1.489% | |
| | | | | | | | |
Total | | | 15,392,981.594 | | | | 84.847% | |
Forward Dynamic Income Fund
Proposal 4. To elect eight Trustees to serve until their successors are elected and qualified, provided that the election of nominees 4c through 4h as Trustees is contingent upon and will not be effective until the closing of the Transaction:
4a. Julie Allecta
Votes in favor represented 99.267% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,656,975.283 | | | | 85.935% | |
Withhold | | | 12,234.000 | | | | 0.634% | |
| | | | | | | | |
Total | | | 1,669,209.283 | | | | 86.569% | |
Shareholder Voting Results (Unaudited)
4b. A. John Gambs
Votes in favor represented 99.212% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,656,054.283 | | | | 85.887% | |
Withhold | | | 13,155.000 | | | | 0.682% | |
| | | | | | | | |
Total | | | 1,669,209.283 | | | | 86.569% | |
4c. Karin B. Bonding
Votes in favor represented 99.134% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,654,747.520 | | | | 85.819% | |
Withhold | | | 14,461.763 | | | | 0.750% | |
| | | | | | | | |
Total | | | 1,669,209.283 | | | | 86.569% | |
4d. Jonathan P. Carroll
Votes in favor represented 99.052% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,653,381.520 | | | | 85.748% | |
Withhold | | | 15,827.763 | | | | 0.821% | |
| | | | | | | | |
Total | | | 1,669,209.283 | | | | 86.569% | |
4e. Dr. Bernard A. Harris
Votes in favor represented 99.134% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,654,747.520 | | | | 85.819% | |
Withhold | | | 14,461.763 | | | | 0.750% | |
| | | | | | | | |
Total | | | 1,669,209.283 | | | | 86.569% | |
4f. Richard C. Johnson
Votes in favor represented 99.134% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,654,747.520 | | | | 85.819% | |
Withhold | | | 14,461.763 | | | | 0.750% | |
| | | | | | | | |
Total | | | 1,669,209.283 | | | | 86.569% | |
4g. Scott E. Schwinger
Votes in favor represented 99.134% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,654,747.520 | | | | 85.819% | |
Withhold | | | 14,461.763 | | | | 0.750% | |
| | | | | | | | |
Total | | | 1,669,209.283 | | | | 86.569% | |
Shareholder Voting Results (Unaudited)
4h. John A. Blaisdell
Votes in favor represented 99.189% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,655,668.520 | | | | 85.867% | |
Withhold | | | 13,540.763 | | | | 0.702% | |
| | | | | | | | |
Total | | | 1,669,209.283 | | | | 86.569% | |
Forward EM Corporate Debt Fund
Proposal 1. To approve a new investment advisory agreement between the Fund and Forward Management, the Fund’s current investment advisor, as a result of the Transaction:
Votes in favor represented 69.390% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 28,047,930.946 | | | | 65.086% | |
Against | | | 77,207.000 | | | | 0.179% | |
Abstain | | | 202,295.000 | | | | 0.469% | |
Broker Non-Vote | | | 12,093,060.000 | | | | 28.062% | |
| | | | | | | | |
Total | | | 40,420,492.946 | | | | 93.796% | |
Proposal 3. To approve a new investment sub-advisory agreement between Forward Management and SW Asset Management, LLC, with respect to the Fund, as a result of the Transaction:
Votes in favor represented 69.402% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 28,052,467.946 | | | | 65.097% | |
Against | | | 81,186.000 | | | | 0.188% | |
Abstain | | | 193,780.000 | | | | 0.450% | |
Broker Non-Vote | | | 12,093,059.000 | | | | 28.062% | |
| | | | | | | | |
Total | | | 40,420,492.946 | | | | 93.797% | |
Proposal 4. To elect eight Trustees to serve until their successors are elected and qualified, provided that the election of nominees 4c through 4h as Trustees is contingent upon and will not be effective until the closing of the Transaction:
4a. Julie Allecta
Votes in favor represented 99.499% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 40,217,957.946 | | | | 93.327% | |
Withhold | | | 202,535.000 | | | | 0.470% | |
| | | | | | | | |
Total | | | 40,420,492.946 | | | | 93.797% | |
4b. A. John Gambs
Votes in favor represented 99.516% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 40,224,729.946 | | | | 93.343% | |
Withhold | | | 195,763.000 | | | | 0.454% | |
| | | | | | | | |
Total | | | 40,420,492.946 | | | | 93.797% | |
Shareholder Voting Results (Unaudited)
4c. Karin B. Bonding
Votes in favor represented 99.491% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 40,214,908.946 | | | | 93.320% | |
Withhold | | | 205,584.000 | | | | 0.477% | |
| | | | | | | | |
Total | | | 40,420,492.946 | | | | 93.797% | |
4d. Jonathan P. Carroll
Votes in favor represented 98.730% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 39,907,087.946 | | | | 92.606% | |
Withhold | | | 513,405.000 | | | | 1.191% | |
| | | | | | | | |
Total | | | 40,420,492.946 | | | | 93.797% | |
4e. Dr. Bernard A. Harris
Votes in favor represented 99.530% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 40,230,698.946 | | | | 93.356% | |
Withhold | | | 189,494.000 | | | | 0.440% | |
| | | | | | | | |
Total | | | 40,420,492.946 | | | | 93.796% | |
4f. Richard C. Johnson
Votes in favor represented 99.494% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 40,215,791.946 | | | | 93.322% | |
Withhold | | | 204,701.000 | | | | 0.475% | |
| | | | | | | | |
Total | | | 40,420,492.946 | | | | 93.797% | |
4g. Scott E. Schwinger
Votes in favor represented 99.532% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 40,231,414.946 | | | | 93.358% | |
Withhold | | | 189,078.000 | | | | 0.439% | |
| | | | | | | | |
Total | | | 40,420,492.946 | | | | 93.797% | |
4h. John A. Blaisdell
Votes in favor represented 99.535% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 40,232,715.946 | | | | 93.361% | |
Withhold | | | 187,777.000 | | | | 0.436% | |
| | | | | | | | |
Total | | | 40,420,492.946 | | | | 93.797% | |
Shareholder Voting Results (Unaudited)
Forward Emerging Markets Fund
Proposal 1. To approve a new investment advisory agreement between the Fund and Forward Management, the Fund’s current investment advisor, as a result of the Transaction:
Votes in favor represented 71.753% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 731,289.464 | | | | 60.823% | |
Against | | | 122.000 | | | | 0.010% | |
Abstain | | | 37.000 | | | | 0.003% | |
Broker Non-Vote | | | 287,728.000 | | | | 23.931% | |
| | | | | | | | |
Total | | | 1,019,176.464 | | | | 84.767% | |
Proposal 4. To elect eight Trustees to serve until their successors are elected and qualified, provided that the election of nominees 4c through 4h as Trustees is contingent upon and will not be effective until the closing of the Transaction:
4a. Julie Allecta
Votes in favor represented 99.624% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,015,346.464 | | | | 84.449% | |
Withhold | | | 3,830.000 | | | | 0.319% | |
| | | | | | | | |
Total | | | 1,019,176.464 | | | | 84.768% | |
4b. A. John Gambs
Votes in favor represented 99.475% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,013,825.108 | | | | 84.322% | |
Withhold | | | 5,351.356 | | | | 0.445% | |
| | | | | | | | |
Total | | | 1,019,176.464 | | | | 84.767% | |
4c. Karin B. Bonding
Votes in favor represented 99.407% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,013,137.553 | | | | 84.265% | |
Withhold | | | 6,038.911 | | | | 0.502% | |
| | | | | | | | |
Total | | | 1,019,176.464 | | | | 84.767% | |
4d. Jonathan P. Carroll
Votes in favor represented 95.213% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 970,388.317 | | | | 80.709% | |
Withhold | | | 48,788.147 | | | | 4.058% | |
| | | | | | | | |
Total | | | 1,019,176.464 | | | | 84.767% | |
Shareholder Voting Results (Unaudited)
4e. Dr. Bernard A. Harris
Votes in favor represented 99.407% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,013,137.553 | | | | 84.265% | |
Withhold | | | 6,038.911 | | | | 0.502% | |
| | | | | | | | |
Total | | | 1,019,176.464 | | | | 84.767% | |
4f. Richard C. Johnson
Votes in favor represented 99.325% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,012,299.317 | | | | 84.195% | |
Withhold | | | 6,877.147 | | | | 0.572% | |
| | | | | | | | |
Total | | | 1,019,176.464 | | | | 84.767% | |
4g. Scott E. Schwinger
Votes in favor represented 99.407% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,013,137.553 | | | | 84.265% | |
Withhold | | | 6,038.911 | | | | 0.502% | |
| | | | | | | | |
Total | | | 1,019,176.464 | | | | 84.767% | |
4h. John A. Blaisdell
Votes in favor represented 99.325% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,012,299.317 | | | | 84.195% | |
Withhold | | | 6,877.147 | | | | 0.572% | |
| | | | | | | | |
Total | | | 1,019,176.464 | | | | 84.767% | |
Forward Global Dividend Fund
Proposal 1. To approve a new investment advisory agreement between the Fund and Forward Management, the Fund’s current investment advisor, as a result of the Transaction:
Votes in favor represented 75.386% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 862,844.501 | | | | 73.890% | |
Against | | | 117.000 | | | | 0.010% | |
Abstain | | | 0.000 | | | | 0.000% | |
Broker Non-Vote | | | 281,612.000 | | | | 24.116% | |
| | | | | | | | |
Total | | | 1,144,573.501 | | | | 98.016% | |
Shareholder Voting Results (Unaudited)
Proposal 4. To elect eight Trustees to serve until their successors are elected and qualified, provided that the election of nominees 4c through 4h as Trustees is contingent upon and will not be effective until the closing of the Transaction:
4a. Julie Allecta
Votes in favor represented 100.000% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,144,573.501 | | | | 98.016% | |
Withhold | | | 0.000 | | | | 0.000% | |
| | | | | | | | |
Total | | | 1,144,573.501 | | | | 98.016% | |
4b. A. John Gambs
Votes in favor represented 100.000% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,144,573.501 | | | | 98.016% | |
Withhold | | | 0.000 | | | | 0.000% | |
| | | | | | | | |
Total | | | 1,144,573.501 | | | | 98.016% | |
4c. Karin B. Bonding
Votes in favor represented 99.934% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,143,814.995 | | | | 97.951% | |
Withhold | | | 758.506 | | | | 0.065% | |
| | | | | | | | |
Total | | | 1,144,573.501 | | | | 98.016% | |
4d. Jonathan P. Carroll
Votes in favor represented 99.934% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,143,814.995 | | | | 97.951% | |
Withhold | | | 758.506 | | | | 0.065% | |
| | | | | | | | |
Total | | | 1,144,573.501 | | | | 98.016% | |
4e. Dr. Bernard A. Harris
Votes in favor represented 99.934% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,143,814.995 | | | | 97.951% | |
Withhold | | | 758.506 | | | | 0.065% | |
| | | | | | | | |
Total | | | 1,144,573.501 | | | | 98.016% | |
Shareholder Voting Results (Unaudited)
4f. Richard C. Johnson
Votes in favor represented 99.934% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,143,814.995 | | | | 97.951% | |
Withhold | | | 758.506 | | | | 0.065% | |
| | | | | | | | |
Total | | | 1,144,573.501 | | | | 98.016% | |
4g. Scott E. Schwinger
Votes in favor represented 99.934% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,143,814.995 | | | | 97.951% | |
Withhold | | | 758.506 | | | | 0.065% | |
| | | | | | | | |
Total | | | 1,144,573.501 | | | | 98.016% | |
4h. John A. Blaisdell
Votes in favor represented 99.934% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,143,814.995 | | | | 97.951% | |
Withhold | | | 758.506 | | | | 0.065% | |
| | | | | | | | |
Total | | | 1,144,573.501 | | | | 98.016% | |
Forward International Dividend Fund
Proposal 1. To approve a new investment advisory agreement between the Fund and Forward Management, the Fund’s current investment advisor, as a result of the Transaction:
Votes in favor represented 82.428% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 29,073,372.574 | | | | 81.006% | |
Against | | | 64,313.000 | | | | 0.179% | |
Abstain | | | 111,569.540 | | | | 0.311% | |
Broker Non-Vote | | | 6,022,061.000 | | | | 16.779% | |
| | | | | | | | |
Total | | | 35,271,316.114 | | | | 98.275% | |
Proposal 4. To elect eight Trustees to serve until their successors are elected and qualified, provided that the election of nominees 4c through 4h as Trustees is contingent upon and will not be effective until the closing of the Transaction:
4a. Julie Allecta
Votes in favor represented 99.488% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 35,090,651.574 | | | | 97.771% | |
Withhold | | | 180,664.540 | | | | 0.503% | |
| | | | | | | | |
Total | | | 35,271,316.114 | | | | 98.274% | |
Shareholder Voting Results (Unaudited)
4b. A. John Gambs
Votes in favor represented 99.547% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 35,111,690.574 | | | | 97.830% | |
Withhold | | | 159,625.540 | | | | 0.445% | |
| | | | | | | | |
Total | | | 35,271,316.114 | | | | 98.275% | |
4c. Karin B. Bonding
Votes in favor represented 99.445% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 35,075,457.632 | | | | 97.729% | |
Withhold | | | 195,858.482 | | | | 0.546% | |
| | | | | | | | |
Total | | | 35,271,316.114 | | | | 98.275% | |
4d. Jonathan P. Carroll
Votes in favor represented 69.740% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 24,598,185.632 | | | | 68.537% | |
Withhold | | | 10,673,130.482 | | | | 29.738% | |
| | | | | | | | |
Total | | | 35,271,316.114 | | | | 98.275% | |
4e. Dr. Bernard A. Harris
Votes in favor represented 99.536% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 35,107,636.632 | | | | 97.819% | |
Withhold | | | 163,679.482 | | | | 0.456% | |
| | | | | | | | |
Total | | | 35,271,316.114 | | | | 98.275% | |
4f. Richard C. Johnson
Votes in favor represented 99.465% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 35,082,714.632 | | | | 97.749% | |
Withhold | | | 188,601.482 | | | | 0.525% | |
| | | | | | | | |
Total | | | 35,271,316.114 | | | | 98.274% | |
4g. Scott E. Schwinger
Votes in favor represented 99.508% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 35,097,688.632 | | | | 97.791% | |
Withhold | | | 173,627.482 | | | | 0.484% | |
| | | | | | | | |
Total | | | 35,271,316.114 | | | | 98.275% | |
Shareholder Voting Results (Unaudited)
4h. John A. Blaisdell
Votes in favor represented 99.524% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 35,103,426.632 | | | | 97.807% | |
Withhold | | | 167,889.482 | | | | 0.468% | |
| | | | | | | | |
Total | | | 35,271,316.114 | | | | 98.275% | |
Forward International Small Companies Fund
Proposal 1. To approve a new investment advisory agreement between the Fund and Forward Management, the Fund’s current investment advisor, as a result of the Transaction:
Votes in favor represented 73.465% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 6,927,943.599 | | | | 67.607% | |
Against | | | 24,201.791 | | | | 0.236% | |
Abstain | | | 68,608.000 | | | | 0.670% | |
Broker Non-Vote | | | 2,409,481.000 | | | | 23.513% | |
| | | | | | | | |
Total | | | 9,430,234.390 | | | | 92.026% | |
Proposal 4. To elect eight Trustees to serve until their successors are elected and qualified, provided that the election of nominees 4c through 4h as Trustees is contingent upon and will not be effective until the closing of the Transaction:
4a. Julie Allecta
Votes in favor represented 98.458% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 9,284,815.593 | | | | 90.607% | |
Withhold | | | 145,418.797 | | | | 1.419% | |
| | | | | | | | |
Total | | | 9,430,234.390 | | | | 92.026% | |
4b. A. John Gambs
Votes in favor represented 98.064% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 9,247,679.925 | | | | 90.245% | |
Withhold | | | 182,554.465 | | | | 1.781% | |
| | | | | | | | |
Total | | | 9,430,234.390 | | | | 92.026% | |
4c. Karin B. Bonding
Votes in favor represented 98.253% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 9,265,502.565 | | | | 90.419% | |
Withhold | | | 164,731.825 | | | | 1.608% | |
| | | | | | | | |
Total | | | 9,430,234.390 | | | | 92.027% | |
Shareholder Voting Results (Unaudited)
4d. Jonathan P. Carroll
Votes in favor represented 84.481% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 7,966,799.593 | | | | 77.745% | |
Against | | | 1,463,434.797 | | | | 14.281% | |
| | | | | | | | |
Total | | | 9,430,234.390 | | | | 92.026% | |
4e. Dr. Bernard A. Harris
Votes in favor represented 98.065% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 9,247,745.593 | | | | 90.246% | |
Withhold | | | 182,488.797 | | | | 1.781% | |
| | | | | | | | |
Total | | | 9,430,234.390 | | | | 92.027% | |
4f. Richard C. Johnson
Votes in favor represented 97.883% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 9,230,549.593 | | | | 90.078% | |
Withhold | | | 199,684.797 | | | | 1.949% | |
| | | | | | | | |
Total | | | 9,430,234.390 | | | | 92.027% | |
4g. Scott E. Schwinger
Votes in favor represented 98.012% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 9,242,786.897 | | | | 90.197% | |
Withhold | | | 187,447.493 | | | | 1.829% | |
| | | | | | | | |
Total | | | 9,430,234.390 | | | | 92.026% | |
4h. John A. Blaisdell
Votes in favor represented 98.002% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 9,241,787.897 | | | | 90.187% | |
Withhold | | | 188,446.493 | | | | 1.839% | |
| | | | | | | | |
Total | | | 9,430,234.390 | | | | 92.026% | |
Shareholder Voting Results (Unaudited)
Forward Select EM Dividend Fund
Proposal 1. To approve a new investment advisory agreement between the Fund and Forward Management, the Fund’s current investment advisor, as a result of the Transaction:
Votes in favor represented 99.392% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,703,562.211 | | | | 80.863% | |
Against | | | 4,822.048 | | | | 0.229% | |
Abstain | | | 5,598.000 | | | | 0.266% | |
Broker Non-Vote | | | 0.000 | | | | 0.000% | |
| | | | | | | | |
Total | | | 1,713,982.259 | | | | 81.358% | |
Proposal 4. To elect eight Trustees to serve until their successors are elected and qualified, provided that the election of nominees 4c through 4h as Trustees is contingent upon and will not be effective until the closing of the Transaction:
4a. Julie Allecta
Votes in favor represented 99.231% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,700,806.259 | | | | 80.732% | |
Withhold | | | 13,176.000 | | | | 0.625% | |
| | | | | | | | |
Total | | | 1,713,982.259 | | | | 81.357% | |
4b. A. John Gambs
Votes in favor represented 99.501% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,705,426.259 | | | | 80.952% | |
Withhold | | | 8,556.000 | | | | 0.406% | |
| | | | | | | | |
Total | | | 1,713,982.259 | | | | 81.358% | |
4c. Karin B. Bonding
Votes in favor represented 99.290% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,701,818.259 | | | | 80.780% | |
Withhold | | | 12,164.000 | | | | 0.577% | |
| | | | | | | | |
Total | | | 1,713,982.259 | | | | 81.357% | |
4d. Jonathan P. Carroll
Votes in favor represented 98.972% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,696,363.259 | | | | 80.521% | |
Withhold | | | 17,619.000 | | | | 0.836% | |
| | | | | | | | |
Total | | | 1,713,982.259 | | | | 81.357% | |
Shareholder Voting Results (Unaudited)
4e. Dr. Bernard A. Harris
Votes in favor represented 99.501% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,705,426.259 | | | | 80.952% | |
Withhold | | | 8,556.000 | | | | 0.406% | |
| | | | | | | | |
Total | | | 1,713,982.259 | | | | 81.358% | |
4f. Richard C. Johnson
Votes in favor represented 99.290% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,701,818.259 | | | | 80.780% | |
Withhold | | | 12,164.000 | | | | 0.577% | |
| | | | | | | | |
Total | | | 1,713,982.259 | | | | 81.357% | |
4g. Scott E. Schwinger
Votes in favor represented 99.300% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,701,980.259 | | | | 80.788% | |
Withhold | | | 12,002.000 | | | | 0.570% | |
| | | | | | | | |
Total | | | 1,713,982.259 | | | | 81.358% | |
4h. John A. Blaisdell
Votes in favor represented 99.501% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,705,426.259 | | | | 80.952% | |
Withhold | | | 8,556.000 | | | | 0.406% | |
| | | | | | | | |
Total | | | 1,713,982.259 | | | | 81.358% | |
Forward Small Cap Equity Fund
Proposal 4. To elect eight Trustees to serve until their successors are elected and qualified, provided that the election of nominees 4c through 4h as Trustees is contingent upon and will not be effective until the closing of the Transaction:
4a. Julie Allecta
Votes in favor represented 96.164% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 771,685.681 | | | | 61.758% | |
Withhold | | | 30,781.870 | | | | 2.463% | |
| | | | | | | | |
Total | | | 802,467.551 | | | | 64.221% | |
Shareholder Voting Results (Unaudited)
4b. A. John Gambs
Votes in favor represented 96.196% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 771,942.389 | | | | 61.779% | |
Withhold | | | 30,525.162 | | | | 2.443% | |
| | | | | | | | |
Total | | | 802,467.551 | | | | 64.222% | |
4c. Karin B. Bonding
Votes in favor represented 95.889% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 769,479.982 | | | | 61.582% | |
Withhold | | | 32,987.569 | | | | 2.640% | |
| | | | | | | | |
Total | | | 802,467.551 | | | | 64.222% | |
4d. Jonathan P. Carroll
Votes in favor represented 93.071% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 746,861.690 | | | | 59.772% | |
Withhold | | | 55,605.861 | | | | 4.450% | |
| | | | | | | | |
Total | | | 802,467.551 | | | | 64.222% | |
4e. Dr. Bernard A. Harris
Votes in favor represented 96.137% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 771,470.690 | | | | 61.741% | |
Withhold | | | 30,996.861 | | | | 2.481% | |
| | | | | | | | |
Total | | | 802,467.551 | | | | 64.222% | |
4f. Richard C. Johnson
Votes in favor represented 96.031% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 770,618.690 | | | | 61.673% | |
Withhold | | | 31,848.861 | | | | 2.549% | |
| | | | | | | | |
Total | | | 802,467.551 | | | | 64.222% | |
4g. Scott E. Schwinger
Votes in favor represented 96.137% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 771,470.690 | | | | 61.741% | |
Withhold | | | 30,996.861 | | | | 2.481% | |
| | | | | | | | |
Total | | | 802,467.551 | | | | 64.222% | |
Shareholder Voting Results (Unaudited)
4h. John A. Blaisdell
Votes in favor represented 96.137% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 771,470.690 | | | | 61.741% | |
Withhold | | | 30,996.861 | | | | 2.481% | |
| | | | | | | | |
Total | | | 802,467.551 | | | | 64.222% | |
Forward Tactical Enhanced Fund
Proposal 4. To elect eight Trustees to serve until their successors are elected and qualified, provided that the election of nominees 4c through 4h as Trustees is contingent upon and will not be effective until the closing of the Transaction:
4a. Julie Allecta
Votes in favor represented 98.920% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,039,081.910 | | | | 89.201% | |
Withhold | | | 11,346.000 | | | | 0.974% | |
| | | | | | | | |
Total | | | 1,050,427.910 | | | | 90.175% | |
4b. A. John Gambs
Votes in favor represented 98.140% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,030,885.910 | | | | 88.497% | |
Withhold | | | 19,542.000 | | | | 1.678% | |
| | | | | | | | |
Total | | | 1,050,427.910 | | | | 90.175% | |
4c. Karin B. Bonding
Votes in favor represented 98.742% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,037,210.532 | | | | 89.040% | |
Withhold | | | 13,217.378 | | | | 1.135% | |
| | | | | | | | |
Total | | | 1,050,427.910 | | | | 90.175% | |
4d. Jonathan P. Carroll
Votes in favor represented 98.742% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,037,210.532 | | | | 89.040% | |
Withhold | | | 13,217.378 | | | | 1.135% | |
| | | | | | | | |
Total | | | 1,050,427.910 | | | | 90.175% | |
Shareholder Voting Results (Unaudited)
4e. Dr. Bernard A. Harris
Votes in favor represented 97.961% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,029,014.532 | | | | 88.337% | |
Withhold | | | 21,413.378 | | | | 1.838% | |
| | | | | | | | |
Total | | | 1,050,427.910 | | | | 90.175% | |
4f. Richard C. Johnson
Votes in favor represented 98.742% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,037,210.532 | | | | 89.040% | |
Withhold | | | 13,217.378 | | | | 1.135% | |
| | | | | | | | |
Total | | | 1,050,427.910 | | | | 90.175% | |
4g. Scott E. Schwinger
Votes in favor represented 98.742% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,037,210.532 | | | | 89.040% | |
Withhold | | | 13,217.378 | | | | 1.135% | |
| | | | | | | | |
Total | | | 1,050,427.910 | | | | 90.175% | |
4h. John A. Blaisdell
Votes in favor represented 98.742% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,037,210.532 | | | | 89.040% | |
Withhold | | | 13,217.378 | | | | 1.135% | |
| | | | | | | | |
Total | | | 1,050,427.910 | | | | 90.175% | |
Forward Tactical Growth Fund
Proposal 1. To approve a new investment advisory agreement between the Fund and Forward Management, the Fund’s current investment advisor, as a result of the Transaction:
Votes in favor represented 66.515% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 19,076,242.033 | | | | 62.493% | |
Against | | | 97,700.454 | | | | 0.320% | |
Abstain | | | 67,897.234 | | | | 0.222% | |
Broker Non-Vote | | | 9,437,791.000 | | | | 30.918% | |
| | | | | | | | |
Total | | | 28,679,630.721 | | | | 93.953% | |
Shareholder Voting Results (Unaudited)
Proposal 2. To approve a new investment sub-advisory agreement between Forward Management and Broadmark Asset Management, LLC, with respect to the Fund, as a result of the Transaction:
Votes in favor represented 66.440% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 19,054,805.073 | | | | 62.422% | |
Against | | | 103,020.454 | | | | 0.337% | |
Abstain | | | 84,013.194 | | | | 0.275% | |
Broker Non-Vote | | | 9,437,792.000 | | | | 30.918% | |
| | | | | | | | |
Total | | | 28,679,630.721 | | | | 93.952% | |
Proposal 4. To elect eight Trustees to serve until their successors are elected and qualified, provided that the election of nominees 4c through 4h as Trustees is contingent upon and will not be effective until the closing of the Transaction:
4a. Julie Allecta
Votes in favor represented 98.635% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 28,288,093.227 | | | | 92.670% | |
Withhold | | | 391,537.494 | | | | 1.283% | |
| | | | | | | | |
Total | | | 28,679,630.721 | | | | 93.953% | |
4b. A. John Gambs
Votes in favor represented 98.581% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 28,272,527.227 | | | | 92.619% | |
Withhold | | | 407,103.494 | | | | 1.334% | |
| | | | | | | | |
Total | | | 28,679,630.721 | | | | 93.953% | |
4c. Karin B. Bonding
Votes in favor represented 98.601% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 28,278,373.227 | | | | 92.638% | |
Withhold | | | 401,257.494 | | | | 1.314% | |
| | | | | | | | |
Total | | | 28,679,630.721 | | | | 93.952% | |
4d. Jonathan P. Carroll
Votes in favor represented 42.339% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 12,142,548.227 | | | | 39.778% | |
Withhold | | | 16,537,082.494 | | | | 54.174% | |
| | | | | | | | |
Total | | | 28,679,630.721 | | | | 93.952% | |
Shareholder Voting Results (Unaudited)
4e. Dr. Bernard A. Harris
Votes in favor represented 98.633% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 28,287,461.227 | | | | 92.668% | |
Withhold | | | 392,169.484 | | | | 1.285% | |
| | | | | | | | |
Total | | | 28,679,630.721 | | | | 93.953% | |
4f. Richard C. Johnson
Votes in favor represented 98.550% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 28,263,910.227 | | | | 92.591% | |
Withhold | | | 415,720.494 | | | | 1.362% | |
| | | | | | | | |
Total | | | 28,679,630.721 | | | | 93.953% | |
4g. Scott E. Schwinger
Votes in favor represented 98.647% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 28,291,521.227 | | | | 92.681% | |
Withhold | | | 388,109.494 | | | | 1.271% | |
| | | | | | | | |
Total | | | 28,679,630.721 | | | | 93.952% | |
4h. John A. Blaisdell
Votes in favor represented 98.662% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 28,295,977.227 | | | | 92.696% | |
Withhold | | | 383,653.494 | | | | 1.257% | |
| | | | | | | | |
Total | | | 28,679,630.721 | | | | 93.953% | |
At the May 29, 2015 Meeting, shareholders of the Forward Dynamic Income Fund, Forward Small Cap Equity Fund and Forward Tactical Enhanced Fund approved following proposals:
Forward Dynamic Income Fund
Proposal 1. To approve a new investment advisory agreement between the Fund and Forward Management, the Fund’s current investment advisor, as a result of the Transaction:
Votes in favor represented 76.505% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 989,807.726 | | | | 51.334% | |
Against | | | 7,956.000 | | | | 0.413% | |
Abstain | | | 14,178.000 | | | | 0.735% | |
Broker Non-Vote | | | 281,841.000 | | | | 14.617% | |
| | | | | | | | |
Total | | | 1,293,782.726 | | | | 67.099% | |
Shareholder Voting Results (Unaudited)
Forward Small Cap Equity Fund
Proposal 1. To approve a new investment advisory agreement between the Fund and Forward Management, the Fund’s current investment advisor, as a result of the Transaction:
Votes in favor represented 69.707% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 538,239.322 | | | | 43.075% | |
Against | | | 30,614.797 | | | | 2.450% | |
Abstain | | | 19,333.069 | | | | 1.547% | |
Broker Non-Vote | | | 183,963.000 | | | | 14.723% | |
| | | | | | | | |
Total | | | 772,150.188 | | | | 61.795% | |
Forward Tactical Enhanced Fund
Proposal 1. To approve a new investment advisory agreement between the Fund and Forward Management, the Fund’s current investment advisor, as a result of the Transaction:
Votes in favor represented 57.517% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 596,396.919 | | | | 51.198% | |
Against | | | 6,411.000 | | | | 0.550% | |
Abstain | | | 3,561.429 | | | | 0.306% | |
Broker Non-Vote | | | 430,528.000 | | | | 36.959% | |
| | | | | | | | |
Total | | | 1,036,897.348 | | | | 89.013% | |
Investment Advisor
Forward Management, LLC
Administrator
ALPS Fund Services, Inc.
Distributor
Forward Securities, LLC
Counsel
Dechert LLP
Independent Registered Public Accounting Firm
KPMG 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 Dynamic Income Fund
Forward EM Corporate Debt Fund
Forward Emerging Markets Fund
Forward Frontier Strategy 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 Real Estate Fund
Forward Real Estate Long/Short Fund
Forward Select EM Dividend Fund
Forward Select Income Fund
Forward Select Opportunity 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. | | | FSD001698 083116 | |
| | | | |
 | | | | Semi-Annual Report June 30, 2015 |
| | | | 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, 2015
| | |
| Shareholder Update | | June 30, 2015 |
| | |
A MESSAGE FROM: | | John A. Blaisdell Chief Executive Officer |
Dear Shareholder:
We at Salient have long emphasized the importance of building truly diversified portfolios that are more resilient, more adaptive and better aligned with investor goals than traditional stock and bond portfolios. The economic and market developments globally over the last six months show why effective portfolio diversification remains one of our key tenets.
U.S. equity market gains have slowed, some overseas stock markets are outpacing the U.S. and we remain in a low-interest-rate environment. Economic policy is continually evolving in the U.S. and overseas, leading to higher market volatility and rapid economic regime shifts that, at times, feel more like tectonic shifts. This climate leaves investors challenged, once again, to find tools to build more diversified portfolios that will weather these regime shifts over time.
The big news from Salient is that we have dramatically expanded our resources for putting smart diversification and risk management principles into action. At the beginning of June we completed our acquisition of Forward Management, an asset manager with a wide-ranging set of alternative strategies that complement our own.
Beyond doubling the size of our investment team, this move realizes our vision of Salient + Forward as a single source of portfolio solutions. Our expanded capabilities include:
| | • | | Global and tactical allocation strategies with built-in adaptability to economic and market change. |
| | • | | Real estate and infrastructure strategies that complement Salient’s strengths in master limited partnerships. |
| | • | | International dividend strategies that serve both income and growth objectives. |
| | • | | Other specialized alternative and niche strategies, including frontier equities, emerging market debt, credit long/short and a variety of hedge fund and private equity strategies. |
We are excited to be able to offer such a far-reaching set of core strategies with the potential to generate income and enhance alpha at a time when investors urgently need more innovative, risk-based and flexible solutions. Please stay tuned for further details as we continue to integrate the Salient and Forward teams in the weeks and months ahead.
In closing, I want to thank you, our shareholders, for the opportunity to be your investment partner. We will strive to keep earning your trust as we continue to advance and evolve our capabilities.
Sincerely,
John A. Blaisdell
Chief Executive Officer
Salient + 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.
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.
Alpha is a technical risk ratio that shows a fund’s excess return relative to the performance of its benchmark index.
Volatility is a statistical measure of the dispersion of returns for a given security or market index.
| | |
| Shareholder Update | | June 30, 2015 |
| | |
A MESSAGE FROM: | | Lee Partridge Chief Investment Officer |
Dear Shareholder:
As we enter the second half of the year we observe that investors are confronted by a number of ongoing challenges that have characterized the global economy since the financial crisis of 2008. These challenges include severe fiscal imbalances across peripheral European countries, a large overhang of global debt, waning growth in China, the divergence of global central bank activity across developed market regions and a continued wealth divide within the United States. As the philosopher Plato of ancient Greece so eloquently stated nearly 2400 years ago, “Excess generally causes reaction, and produces a change in the opposite direction, whether it be in the seasons, or in individuals, or in governments.”
The backdrop to a strong dollar
In the wake of these challenges, the U.S. dollar continued its appreciation versus most major currencies in the first half of 2015 as the Federal Reserve adopted a more restrictive monetary stance relative to other major central banks. The European Central Bank began implementing quantitative easing measures in March with a commitment to purchase €1.1 trillion worth of assets. Those purchases include asset-backed securities, covered bonds and sovereign debt, including, but not limited to, the sovereign debt of Greece. As the U.S. dollar rallied, U.S. equity markets began underperforming most other developed markets, which we attribute to the dual impact of reduced profits from foreign operations for U.S. companies and reduced competitiveness of their exports. Commodity markets are generally down for the year, reflecting the U.S. dollar’s strength as well as dissipating demand from China and the better part of Southeast Asia.
Greek playwright Sophocles once said, “Money is the worst currency that ever grew among mankind. This sacks cities, this drives men from their homes, this teaches and corrupts the worthiest minds to turn base deeds.” A recent study conducted by the McKinsey Global Institute estimates that worldwide debt increased by $57 trillion between the fourth quarter of 2007 and the fourth quarter of 2014. As a percentage of gross domestic product (GDP), the study estimates that debt increased from 269% in 2007 to 286% in 2014. The increases in debt reflect the collective, cumulative fiscal deficits of countries, corporations, households and the financial sector. Both the size of outstanding debt and the pace of debt increases have been affected by three principal drivers: expenditures, output growth rates and restructuring.
Market drivers with political consequences
Each of these drivers has political consequences associated with them. Expenditures are reduced by austerity measures—spending less on social welfare programs, post-retirement benefits, healthcare and public works. Growth is difficult for policymakers to engineer. Debt restructuring or forgiveness transfers wealth from lenders to borrowers. At the very least, making changes that impact expenditures and restructuring existing debt offer politically unpalatable options for most policymakers. Both cases represent the prospects of short-term pain and long-term gain, which are inconsistent with the time horizons of elected officials and their appointed agents. As Plato once said, “There will be no end to the troubles of states, or of humanity itself, till philosophers become kings in this world, or till those we now call kings and rulers really and truly become philosophers, and political power and philosophy thus come into the same hands.”
The questionable interest rate rise
Plato also said, “Opinion is the medium between knowledge and ignorance.” With that in mind, we humbly submit the following observations for the latter half of 2015. The Federal Open Market Committee (FOMC) will have three opportunities to adjust monetary policy before the end of the year (September 16-17, October 27-28 and December 15-16). Fed Chair Janet Yellen continues to state that, dependent on the continuation of economic growth, the FOMC intends to increase interest rates in 2015. It seems to us that if the FOMC does not begin the process of raising interest rates at the September meeting, concerns about interfering with the economy during the upcoming election year will diminish the probability of making changes before the general election in November 2016. Such delays would likely result in downward pressure on the U.S. dollar, which could translate to a reversal in the equity trends cited above. Regardless of FOMC activity, we believe that commodity prices will remain under pressure due to the more pernicious growth problems in China and Europe.
The upcoming presidential debates are likely to be dominated by social issues including the yawning wealth divide in America. The more centrist candidates will likely move toward more polarized positions as social initiatives and fiscal discipline are juxtaposed during the campaign period. The current turmoil in Greece will likely be touted as the inevitable consequence of a deficit-driven economy. We expect the existing levels of debt to GDP along with the prospect of
continued austerity measures in Europe and tepid growth in China to create a perfect storm—a storm that could increase general market volatility, keep long-term interest rates low and reduce both future equity market returns and commodity prices. We firmly believe that, in this environment, diversification is the most important weapon in an investor’s arsenal.
In conclusion, it’s often not the quality of predictions but the rigor of preparation that allows investors to withstand times of uncertainty. In our view, the best preparation is diversification across markets, geographies and strategies. Diversification allows investors to realize Greek philosopher Aristotle’s adage, “The ideal man bears the accidents of life with dignity and grace, making the best of circumstances.” It would seem that the intellectual forefathers of modern day Greece identified the answers to many of the challenges that face modern day Greece as well as the global economy more generally.
We are humbled by the trust you have placed with us as investors and remain grateful for the opportunities you have given to us.
Sincerely,
Lee Partridge, CAIA, CFA
Chief Investment Officer
Salient + 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.
Diversification does not assure profit or protect against risk.
Quantitative easing refers to a form of monetary policy used to stimulate an economy where interest rates are either at, or close to, zero.
Volatility is a statistical measure of the dispersion of returns for a given security or market index.
Lee Partridge 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
©2015 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, 2015
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 Frontier Strategy Fund(a) | | | | | | | | 1 Year | | | 5 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | | | | | | | | | -16.89% | | | | 4.58% | | | | 3.77% | | | | 12/31/08 | |
| | | | | | |
Institutional Class | | | | | | | | | | | -16.74% | | | | 4.83% | | | | 3.95% | | | | 12/31/08 | |
| | | | | | |
Advisor Class(b) | | | | | | | | | | | -16.66% | | | | N/A | | | | 0.87% | | | | 05/02/11 | |
| | | | | | |
Class Z | | | | | | | | | | | -16.63% | | | | 4.94% | | | | 6.01% | | | | 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 | | | | | | | -0.77% | | | | 7.50% | | | | 6.38% | | | | 6.48% | | | | 05/01/00 | |
| | | | | | |
Institutional Class | | | | | | | -0.37% | | | | 7.95% | | | | 6.76% | | | | 6.89% | | | | 05/01/00 | |
| | | | | | |
Class C (with CDSC)(d) | | | | | | | -2.19% | | | | 6.98% | | | | 5.76% | | | | 7.02% | | | | 12/30/02 | |
| | | | | | |
Class C (without CDSC)(e) | | | | | | | -1.27% | | | | 6.98% | | | | 5.76% | | | | 7.02% | | | | 12/30/02 | |
| | | | | | |
Class Z | | | | | | | -0.27% | | | | 8.04% | | | | N/A | | | | 10.67% | | | | 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 | | | | | | | -0.85% | | | | 2.71% | | | | 3.29% | | | | 4.23% | | | | 07/14/98 | |
| | | | | | |
Institutional Class | | | | | | | -0.25% | | | | 3.20% | | | | 3.75% | | | | 5.22% | | | | 06/15/92 | |
| | | | | | |
Class Z | | | | | | | -0.20% | | | | 3.28% | | | | N/A | | | | 5.55% | | | | 05/05/09 | |
| | | | | | |
| Forward Total MarketPlus Fund(g) | | | | | 1 Year | | | 5 Year | | | 10 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | | | | | 6.06% | | | | 15.79% | | | | 6.51% | | | | 5.66% | | | | 06/24/98 | |
| | | | | | |
Institutional Class | | | | | | | 6.44% | | | | 16.24% | | | | 6.96% | | | | 9.87% | | | | 08/24/92 | |
| | | | | | |
Class Z | | | | | | | 6.58% | | | | 16.38% | | | | N/A | | | | 16.94% | | | | 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% | | | | 0.01% | | | | 0.02% | | | | 1.15% | | | | 1.71% | | | | 07/29/98 | |
| | | | | | |
Institutional Class | | | 0.01% | | | | 0.01% | | | | 0.02% | | | | 1.33% | | | | 2.62% | | | | 04/09/92 | |
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2015
See page 9 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 | | | | | -4.28% | | | | 4.64% | | | | 2.81% | | | | 2.79% | | | | 12/27/00 | |
| | | | | | |
Institutional Class | | | | | -3.81% | | | | 5.17% | | | | 3.32% | | | | 3.31% | | | | 12/27/00 | |
| | | | | | |
Class A (with sales load)(k) | | | | | -9.62% | | | | 3.56% | | | | 2.35% | | | | 3.38% | | | | 09/29/03 | |
| | | | | | |
Class A (without sales load)(l) | | | | | -4.10% | | | | 4.79% | | | | 2.96% | | | | 3.91% | | | | 09/29/03 | |
| | | | | | |
Class C (with CDSC)(d) | | | | | -5.70% | | | | 4.12% | | | | 2.29% | | | | 3.90% | | | | 12/30/02 | |
| | | | | | |
Class C (without CDSC)(e) | | | | | -4.77% | | | | 4.12% | | | | 2.29% | | | | 3.90% | | | | 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 | | | | | -4.74% | | | | 5.49% | | | | 2.82% | | | | 2.64% | | | | 12/27/00 | |
| | | | | | |
Institutional Class | | | | | -4.24% | | | | 6.03% | | | | 3.34% | | | | 3.15% | | | | 12/27/00 | |
| | | | | | |
Class A (with sales load)(k) | | | | | -10.10% | | | | 4.40% | | | | 2.36% | | | | 3.58% | | | | 09/29/03 | |
| | | | | | |
Class A (without sales load)(l) | | | | | -4.60% | | | | 5.65% | | | | 2.97% | | | | 4.10% | | | | 09/29/03 | |
| | | | | | |
Class C (with CDSC)(d) | | | | | -6.10% | | | | 4.97% | | | | 2.30% | | | | 4.18% | | | | 12/30/02 | |
| | | | | | |
Class C (without CDSC)(e) | | | | | -5.18% | | | | 4.97% | | | | 2.30% | | | | 4.18% | | | | 12/30/02 | |
| | | | | | |
| Forward Growth Allocation Fund(n) | | | | 1 Year | | | 5 Year | | | 10 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | | | -4.72% | | | | 6.33% | | | | 2.64% | | | | 2.23% | | | | 12/27/00 | |
| | | | | | |
Institutional Class | | | | | -4.23% | | | | 6.88% | | | | 3.14% | | | | 2.74% | | | | 12/27/00 | |
| | | | | | |
Class A (with sales load)(k) | | | | | -9.99% | | | | 5.25% | | | | 2.17% | | | | 3.81% | | | | 09/29/03 | |
| | | | | | |
Class A (without sales load)(l) | | | | | -4.52% | | | | 6.50% | | | | 2.78% | | | | 4.33% | | | | 09/29/03 | |
| | | | | | |
Class C (with CDSC)(d) | | | | | -6.11% | | | | 5.81% | | | | 2.12% | | | | 4.62% | | | | 12/30/02 | |
| | | | | | |
Class C (without CDSC)(e) | | | | | -5.20% | | | | 5.81% | | | | 2.12% | | | | 4.62% | | | | 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 | | | | | -4.10% | | | | 3.86% | | | | 2.85% | | | | 3.00% | | | | 12/27/00 | |
| | | | | | |
Institutional Class | | | | | -3.69% | | | | 4.36% | | | | 3.34% | | | | 3.50% | | | | 12/27/00 | |
| | | | | | |
Class A (with sales load)(k) | | | | | -9.50% | | | | 2.79% | | | | 2.38% | | | | 3.00% | | | | 09/29/03 | |
| | | | | | |
Class A (without sales load)(l) | | | | | -3.96% | | | | 4.02% | | | | 2.99% | | | | 3.52% | | | | 09/29/03 | |
| | | | | | |
Class C (with CDSC)(d) | | | | | -5.31% | | | | 3.36% | | | | 2.33% | | | | 3.30% | | | | 12/30/02 | |
| | | | | | |
Class C (without CDSC)(e) | | | | | -4.57% | | | | 3.36% | | | | 2.33% | | | | 3.30% | | | | 12/30/02 | |
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2015
See page 9 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 | | | | | -1.87% | | | | 5.67% | | | | 4.58% | | | | 4.41% | | | | 12/27/00 | |
| | | | | | |
Institutional Class | | | | | -1.47% | | | | 6.19% | | | | 5.10% | | | | 4.92% | | | | 12/27/00 | |
| | | | | | |
Class A (with sales load)(q) | | | | | -5.41% | | | | 5.11% | | | | 4.44% | | | | 4.17% | | | | 09/29/03 | |
| | | | | | |
Class A (without sales load)(l) | | | | | -1.70% | | | | 5.92% | | | | 4.84% | | | | 4.51% | | | | 09/29/03 | |
| | | | | | |
Class C (with CDSC)(d) | | | | | -3.29% | | | | 5.15% | | | | 4.06% | | | | 3.74% | | | | 12/30/02 | |
| | | | | | |
Class C (without CDSC)(e) | | | | | -2.40% | | | | 5.15% | | | | 4.06% | | | | 3.74% | | | | 12/30/02 | |
| | | | | | |
| Forward Multi-Strategy Fund(r) | | | | 1 Year | | | 5 Year | | | 10 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | | | -4.15% | | | | 6.68% | | | | 2.08% | | | | 1.38% | | | | 12/27/00 | |
| | | | | | |
Institutional Class | | | | | -3.69% | | | | 7.24% | | | | 2.61% | | | | 1.89% | | | | 12/27/00 | |
| | | | | | |
Class A (with sales load)(k) | | | | | -9.61% | | | | 5.61% | | | | 1.65% | | | | 3.58% | | | | 09/29/03 | |
| | | | | | |
Class A (without sales load)(l) | | | | | -4.10% | | | | 6.87% | | | | 2.25% | | | | 4.10% | | | | 09/29/03 | |
| | | | | | |
Class C (with CDSC)(d) | | | | | -5.57% | | | | 6.17% | | | | 1.59% | | | | 4.45% | | | | 12/30/02 | |
| | | | | | |
Class C (without CDSC)(e) | | | | | -4.66% | | | | 6.17% | | | | 1.59% | | | | 4.45% | | | | 12/30/02 | |
(a) Prior to May 1, 2011, Forward Frontier Strategy Fund was known as Forward Frontier MarketStrat Fund. Prior to September 20, 2010, Forward Frontier MarketStrat Fund was know as Forward Frontier Markets Fund. Prior to May 1, 2010, Forward Frontier Markets Fund was known as Accessor Frontier Markets Fund.
(b) Prior to May 1, 2013, the Advisor Class was known as Class M.
(c) Prior to May 1, 2010, Forward High Yield Bond Fund was known as Accessor High Yield Bond Fund.
(d) Includes the 1.00% contingent deferred sales charge.
(e) Excludes the 1.00% contingent deferred sales charge.
(f) Effective December 1, 2014, the Trust and Forward Mangement terminated their sub-advisory agreement with Pacific Investment Management Company LLC (“PIMCO “). The fund is now advised solely by Forward Management. Performance figures shown for periods before December 1, 2014, represent performance of the fund while being sub-advised by PIMCO. Prior to May 1, 2010, Forward Investment Grade Fixed-Income Fund was known as Accessor Investment Grade Fixed-Income Fund.
(g) Prior to May 1, 2013 Forward Total MarketPlus Fund was known as Forward Extended MarketPlus Fund. Prior to May 1, 2011, Forward Extended MarketPlus Fund was known as Forward SMIDPlus Fund. Prior to September 20, 2010, Forward SMIDPlus Fund was known as Forward Small to Mid Cap Fund. Prior to May 1, 2010, Forward Small to Mid Cap Fund was known as Accessor Small to Mid Cap Fund.
(h) Prior to May 1, 2010, Forward U.S. Government Money Fund was known as Accessor U.S. Government Money Fund.
(i) The 7-Day Current Yield is the average of each of the last seven day’s daily yields.
(j) Prior to May 1, 2010, Forward Balanced Allocation Fund was known as 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, Forward Growth & Income Allocation Fund was known as Accessor Growth & Income Allocation Fund.
(n) Prior to May 1, 2010, Forward Growth Allocation Fund was known as Accessor Growth Allocation Fund.
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2015
See page 9 for important performance disclosure information about the Forward Funds.
(o) Prior to May 1, 2010, Forward Income & Growth Allocation Fund was known as Accessor Income & Growth Allocation Fund.
(p) Prior to May 1, 2012, Forward Income Builder Fund was known as Forward Income Allocation Fund. Prior to May 1, 2010, Forward Income Allocation Fund was known as Accessor Income Allocation Fund.
(q) Includes the effect of the maximum 3.75% sales charge.
(r) Prior to December 3, 2012, Forward Multi-Strategy Fund was known as Forward Aggressive Growth Allocation Fund. Prior to May 1, 2010, Forward Aggressive Growth Allocation Fund was known as Accessor Aggressive Growth Allocation Fund.
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2015
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
Debt securities are subject to interest rate risk. If interest rates increase, the value of debt securities generally declines. Debt securities with longer durations tend to be more sensitive to changes in interest rates and more volatile than securities with shorter durations.
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
Debt securities are subject to interest rate risk. If interest rates increase, the value of debt securities generally declines. Debt securities with longer durations tend to be more sensitive to changes in interest rates and more volatile than securities with shorter durations.
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.
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.
Debt securities are subject to interest rate risk. If interest rates increase, the value of debt securities generally declines. Debt securities with longer durations tend to be more sensitive to changes in interest rates and more volatile than securities with shorter durations.
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.
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2015
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 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.
Debt securities are subject to interest rate risk. If interest rates increase, the value of debt securities generally declines. Debt securities with longer durations tend to be more sensitive to changes in interest rates and more volatile than securities with shorter durations.
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.
Debt securities are subject to interest rate risk. If interest rates increase, the value of debt securities generally declines. Debt securities with longer durations tend to be more sensitive to changes in interest rates and more volatile than securities with shorter durations.
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 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.
Debt securities are subject to interest rate risk. If interest rates increase, the value of debt securities generally declines. Debt securities with longer durations tend to be more sensitive to changes in interest rates and more volatile than securities with shorter durations.
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.
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2015
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.
Debt securities are subject to interest rate risk. If interest rates increase, the value of debt securities generally declines. Debt securities with longer durations tend to be more sensitive to changes in interest rates and more volatile than securities with shorter durations.
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.
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.
Debt securities are subject to interest rate risk. If interest rates increase, the value of debt securities generally declines. Debt securities with longer durations tend to be more sensitive to changes in interest rates and more volatile than securities with shorter durations.
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.
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 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.
Debt securities are subject to interest rate risk. If interest rates increase, the value of debt securities generally declines. Debt securities with longer durations tend to be more sensitive to changes in interest rates and more volatile than securities with shorter durations.
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, 2015
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 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.
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.
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.
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.
Disclosure of Fund Expenses (Unaudited)
For the Six Months Ended June 30, 2015
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, 2015 through June 30, 2015.
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
01/01/15 | | | Ending
Account Value
06/30/15 | | | Expense
Ratios(a) | | | Expenses Paid
During Period(b)
01/01/15-06/30/15 | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 958.60 | | | | 1.29% | | | $ | 6.26 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,018.40 | | | | 1.29% | | | $ | 6.46 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 960.70 | | | | 0.99% | | | $ | 4.81 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,019.89 | | | | 0.99% | | | $ | 4.96 | |
| Advisor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 959.80 | | | | 0.99% | | | $ | 4.81 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,019.89 | | | | 0.99% | | | $ | 4.96 | |
| Class Z | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 959.90 | | | | 0.89% | | | $ | 4.32 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,020.38 | | | | 0.89% | | | $ | 4.46 | |
| Forward High Yield Bond Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,029.40 | | | | 1.22% | | | $ | 6.14 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,018.74 | | | | 1.22% | | | $ | 6.11 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,032.50 | | | | 0.82% | | | $ | 4.13 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,020.73 | | | | 0.82% | | | $ | 4.11 | |
Disclosure of Fund Expenses (Unaudited)
For the Six Months Ended June 30, 2015
| | | | | | | | | | | | | | | | |
| Forward High Yield Bond Fund (continued) | | Beginning
Account Value
01/01/15 | | | Ending
Account Value
06/30/15 | | | Expense
Ratios(a) | | | Expenses Paid
During Period(b)
01/01/15-06/30/15 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,028.10 | | | | 1.72% | | | $ | 8.65 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,016.27 | | | | 1.72% | | | $ | 8.60 | |
| Class Z | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,032.00 | | | | 0.72% | | | $ | 3.63 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,021.22 | | | | 0.72% | | | $ | 3.61 | |
| Forward Investment Grade Fixed-Income Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 983.50 | | | | 1.03% | | | $ | 5.07 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,019.69 | | | | 1.03% | | | $ | 5.16 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 986.20 | | | | 0.75% | | | $ | 3.69 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,021.08 | | | | 0.75% | | | $ | 3.76 | |
| Class Z | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 986.50 | | | | 0.65% | | | $ | 3.20 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,021.57 | | | | 0.65% | | | $ | 3.26 | |
| Forward Total MarketPlus Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,014.80 | | | | 1.25% | | | $ | 6.24 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,018.60 | | | | 1.25% | | | $ | 6.26 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,016.50 | | | | 0.85% | | | $ | 4.25 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,020.58 | | | | 0.85% | | | $ | 4.26 | |
| Class Z | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,017.20 | | | | 0.75% | | | $ | 3.75 | |
| | | | |
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 | | | | 0.23% | | | $ | 1.14 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,023.65 | | | | 0.23% | | | $ | 1.15 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,000.00 | | | | 0.23% | | | $ | 1.14 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,023.65 | | | | 0.23% | | | $ | 1.15 | |
| Forward Balanced Allocation Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 991.30 | | | | 1.39% | | | $ | 6.86 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.90 | | | | 1.39% | | | $ | 6.95 | |
Disclosure of Fund Expenses (Unaudited)
For the Six Months Ended June 30, 2015
| | | | | | | | | | | | | | | | |
| Forward Balanced Allocation Fund (continued) | | Beginning
Account Value
01/01/15 | | | Ending
Account Value
06/30/15 | | | Expense
Ratios(a) | | | Expenses Paid
During Period(b)
01/01/15-06/30/15 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 994.00 | | | | 0.89% | | | $ | 4.40 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,020.38 | | | | 0.89% | | | $ | 4.46 | |
| Class A | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 991.90 | | | | 1.24% | | | $ | 6.12 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,018.65 | | | | 1.24% | | | $ | 6.21 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 988.60 | | | | 1.89% | | | $ | 9.32 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,015.42 | | | | 1.89% | | | $ | 9.44 | |
| Forward Growth & Income Allocation Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 997.30 | | | | 0.97% | | | $ | 4.80 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,019.98 | | | | 0.97% | | | $ | 4.86 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 999.70 | | | | 0.47% | | | $ | 2.33 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,022.46 | | | | 0.47% | | | $ | 2.36 | |
| Class A | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 998.00 | | | | 0.82% | | | $ | 4.06 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,020.73 | | | | 0.82% | | | $ | 4.11 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 995.40 | | | | 1.47% | | | $ | 7.27 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.50 | | | | 1.47% | | | $ | 7.35 | |
| Forward Growth Allocation Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,005.20 | | | | 0.89% | | | $ | 4.42 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,020.38 | | | | 0.89% | | | $ | 4.46 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,007.70 | | | | 0.39% | | | $ | 1.94 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,022.86 | | | | 0.39% | | | $ | 1.96 | |
| Class A | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,006.60 | | | | 0.74% | | | $ | 3.68 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,021.12 | | | | 0.74% | | | $ | 3.71 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,002.70 | | | | 1.39% | | | $ | 6.90 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.90 | | | | 1.39% | | | $ | 6.95 | |
Disclosure of Fund Expenses (Unaudited)
For the Six Months Ended June 30, 2015
| | | | | | | | | | | | | | | | |
| Forward Income & Growth Allocation Fund | | Beginning
Account Value
01/01/15 | | | Ending
Account Value
06/30/15 | | | Expense
Ratios(a) | | | Expenses Paid
During Period(b)
01/01/15-06/30/15 | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 980.70 | | | | 3.02% | | | $ | 14.83 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,009.82 | | | | 3.02% | | | $ | 15.05 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 983.00 | | | | 2.47% | | | $ | 12.14 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,012.55 | | | | 2.47% | | | $ | 12.33 | |
| Class A | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 981.70 | | | | 2.85% | | | $ | 14.00 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,010.66 | | | | 2.85% | | | $ | 14.21 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 978.40 | | | | 3.51% | | | $ | 17.22 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,007.39 | | | | 3.51% | | | $ | 17.47 | |
| Forward Income Builder Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,007.30 | | | | 0.89% | | | $ | 4.43 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,020.38 | | | | 0.89% | | | $ | 4.46 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,009.70 | | | | 0.39% | | | $ | 1.94 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,022.86 | | | | 0.39% | | | $ | 1.96 | |
| Class A | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,008.50 | | | | 0.64% | | | $ | 3.19 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,021.62 | | | | 0.64% | | | $ | 3.21 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,004.90 | | | | 1.39% | | | $ | 6.91 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.90 | | | | 1.39% | | | $ | 6.95 | |
| Forward Multi-Strategy Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 991.30 | | | | 0.89% | | | $ | 4.39 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,020.38 | | | | 0.89% | | | $ | 4.46 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 993.40 | | | | 0.39% | | | $ | 1.93 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,022.86 | | | | 0.39% | | | $ | 1.96 | |
| Class A | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 991.50 | | | | 0.74% | | | $ | 3.65 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,021.12 | | | | 0.74% | | | $ | 3.71 | |
Disclosure of Fund Expenses (Unaudited)
For the Six Months Ended June 30, 2015
| | | | | | | | | | | | | | | | |
| Forward Multi-Strategy Fund (continued) | | Beginning
Account Value
01/01/15 | | | Ending
Account Value
06/30/15 | | | Expense
Ratios(a) | | | Expenses Paid
During Period(b)
01/01/15-06/30/15 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 988.30 | | | | 1.39% | | | $ | 6.85 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.90 | | | | 1.39% | | | $ | 6.95 | |
(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 values over the period, multiplied by the number of days in the most recent fiscal half year (181), then divided by 365.
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 Frontier Strategy Fund* | | | | |
U.S. Treasury Bonds & Notes | | | 17.46% | |
Agency Pass-Through Securities | | | 15.77% | |
Corporate Bonds | | | 15.31% | |
Collateralized Mortgage Obligations | | | 10.04% | |
Municipal Bonds | | | 8.00% | |
Exchange-Traded Funds | | | 3.84% | |
Asset-Backed Securities | | | 3.21% | |
Net Other Assets and Liabilities | | | 26.37% | |
| | | 100.00% | |
| |
| Forward High Yield Bond Fund | | | | |
Financials | | | 18.04% | |
Consumer Noncyclical | | | 15.90% | |
Industrials | | | 13.49% | |
Consumer Cyclical | | | 13.48% | |
Energy | | | 12.57% | |
Communications | | | 12.52% | |
Utilities | | | 4.60% | |
Technology | | | 3.00% | |
Basic Materials | | | 2.41% | |
Net Other Assets and Liabilities | | | 3.99% | |
| | | 100.00% | |
| |
| Forward Investment Grade Fixed-Income Fund | | | | |
Exchange-Traded Funds | | | 95.46% | |
U.S. Treasury Bonds & Notes | | | 0.00% | (a) |
Net Other Assets and Liabilities | | | 4.54% | |
| | | 100.00% | |
| |
| Forward Total MarketPlus Fund* | | | | |
Exchange-Traded Funds | | | 54.11% | |
Agency Pass-Through Securities | | | 14.22% | |
Net Other Assets and Liabilities | | | 31.67% | |
| | | 100.00% | |
| |
| Forward U.S. Government Money Fund | | | | |
Repurchase Agreements | | | 99.07% | |
Net Other Assets and Liabilities | | | 0.93% | |
| | | 100.00% | |
| | | | | | |
| Forward Balanced Allocation Fund | |
UNDERLYING FORWARD FUND AND
FUND ADVISOR OR SUB-ADVISOR | | # OF ISSUES | | ALLOCATION | |
Forward Investment Grade Fixed-Income Fund—Forward Management, LLC | | 4 | | | 26.03% | |
Forward International Dividend Fund—Forward Management, LLC | | 121 | | | 19.47% | (b) |
Forward Select EM Dividend Fund—Forward Management, LLC | | 95 | | | 9.31% | (b) |
Forward Total MarketPlus Fund—Forward Management, LLC | | 129 | | | 9.22% | |
Forward EM Corporate Debt Fund—Forward Management, LLC | | 101 | | | 7.78% | (b) |
Forward Commodity Long/Short Strategy Fund—Forward Management, LLC | | 147 | | | 7.00% | (b) |
Forward Dynamic Income Fund—Forward Management, LLC | | 61 | | | 4.89% | (b) |
Forward Select Opportunity Fund—Forward Management, LLC | | 40 | | | 4.78% | (b) |
Forward Credit Analysis Long/Short Fund—Pacific Investment Management Co. LLC | | 36 | | | 3.94% | (b) |
Forward High Yield Bond Fund—First Western Capital Management Co. | | 70 | | | 2.04% | |
Forward Frontier Strategy Fund—Forward Management, LLC | | 141 | | | 1.99% | |
Forward International Real Estate Fund—Forward Management, LLC | | 82 | | | 1.66% | (b) |
Forward Real Estate Fund—Forward Management, LLC | | 70 | | | 1.09% | (b) |
Net Other Assets and Liabilities | | | | | 0.80% | |
| | | | | 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, LLC | | 121 | | | 26.74% | (b) |
Forward Investment Grade Fixed-Income Fund—Forward Management, LLC | | 4 | | | 16.41% | |
Forward Select EM Dividend Fund—Forward Management, LLC | | 95 | | | 12.93% | (b) |
Summary of Portfolio Holdings (Note 10) (Unaudited)
| | | | | | |
| Forward Growth & Income Allocation Fund (continued) | |
UNDERLYING FORWARD FUND AND
FUND ADVISOR OR SUB-ADVISOR | | # OF ISSUES | | ALLOCATION | |
Forward Total MarketPlus Fund—Forward Management, LLC | | 129 | | | 12.66% | |
Forward Commodity Long/Short Strategy Fund—Forward Management, LLC | | 147 | | | 6.93% | (b) |
Forward Dynamic Income Fund—Forward Management, LLC | | 61 | | | 5.07% | (b) |
Forward Select Opportunity Fund—Forward Management, LLC | | 40 | | | 4.99% | (b) |
Forward EM Corporate Debt Fund—Forward Management, LLC | | 101 | | | 4.98% | (b) |
Forward Frontier Strategy Fund—Forward Management, LLC | | 141 | | | 2.72% | |
Forward Credit Analysis Long/Short Fund—Pacific Investment Management Co. LLC | | 36 | | | 2.53% | (b) |
Forward International Real Estate Fund—Forward Management, LLC | | 82 | | | 1.72% | (b) |
Forward Real Estate Fund—Forward Management, LLC | | 70 | | | 1.38% | (b) |
Forward High Yield Bond Fund—First Western Capital Management Co. | | 70 | | | 1.17% | |
Net Other Assets and Liabilities | | | | | -0.23% | |
| | | | | 100.00% | |
|
| Forward Growth Allocation Fund | |
UNDERLYING FORWARD FUND AND
FUND ADVISOR OR SUB-ADVISOR | | # OF ISSUES | | ALLOCATION | |
Forward International Dividend Fund—Forward Management, LLC | | 121 | | | 31.38% | (b) |
Forward Select EM Dividend Fund—Forward Management, LLC | | 95 | | | 15.28% | (b) |
Forward Total MarketPlus Fund—Forward Management, LLC | | 129 | | | 14.80% | |
Forward Investment Grade Fixed-Income Fund—Forward Management, LLC | | 4 | | | 9.91% | |
Forward Dynamic Income Fund—Forward Management, LLC | | 61 | | | 5.04% | (b) |
Forward Select Opportunity Fund—Forward Management, LLC | | 40 | | | 5.02% | (b) |
Forward International Real Estate Fund—Forward Management, LLC | | 82 | | | 4.00% | (b) |
Forward Real Estate Fund—Forward Management, LLC | | 70 | | | 3.41% | (b) |
| | | | | | |
UNDERLYING FORWARD FUND AND
FUND ADVISOR OR SUB-ADVISOR | | # OF ISSUES | | ALLOCATION | |
Forward Frontier Strategy Fund—Forward Management, LLC | | 141 | | | 3.27% | |
Forward EM Corporate Debt Fund—Forward Management, LLC | | 101 | | | 2.91% | (b) |
Forward Commodity Long/Short Strategy Fund—Forward Management, LLC | | 147 | | | 2.51% | (b) |
Forward Credit Analysis Long/Short Fund—Pacific Investment Management Co. LLC | | 36 | | | 1.45% | (b) |
Forward High Yield Bond Fund—First Western Capital Management Co. | | 70 | | | 0.80% | |
Net Other Assets and Liabilities | | | | | 0.22% | |
| | | | | 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—Forward Management, LLC | | 4 | | | 35.71% | |
Forward International Dividend Fund—Forward Management, LLC | | 121 | | | 12.93% | (b) |
Forward EM Corporate Debt Fund—Forward Management, LLC | | 101 | | | 10.82% | (b) |
Forward Total MarketPlus Fund—Forward Management, LLC | | 129 | | | 6.35% | |
Forward Credit Analysis Long/Short Fund—Pacific Investment Management Co. LLC | | 36 | | | 6.08% | (b) |
Forward Emerging Markets Fund—Forward Management, LLC | | 66 | | | 5.83% | (b) |
Forward Commodity Long/Short Strategy Fund—Forward Management, LLC | | 147 | | | 5.01% | (b) |
Forward Dynamic Income Fund—Forward Management, LLC | | 61 | | | 4.42% | (b) |
Forward Select Opportunity Fund—Forward Management, LLC | | 40 | | | 4.21% | (b) |
Forward Real Estate Fund—Forward Management, LLC | | 70 | | | 3.07% | (b) |
Forward High Yield Bond Fund—First Western Capital Management Co. | | 70 | | | 3.00% | |
Forward International Real Estate Fund—Forward Management, LLC | | 82 | | | 1.83% | (b) |
Forward Frontier Strategy Fund—Forward Management, LLC | | 141 | | | 0.52% | |
Net Other Assets and Liabilities | | | | | 0.22% | |
| | | | | 100.00% | |
Summary of Portfolio Holdings (Note 10) (Unaudited)
| | | | | | |
| Forward Income Builder Fund | |
UNDERLYING FORWARD FUND AND
FUND ADVISOR OR SUB-ADVISOR | | # OF ISSUES | | ALLOCATION | |
Forward International Dividend Fund—Forward Management, LLC | | 121 | | | 24.59% | (b) |
Forward Select Income Fund—Forward Management, LLC | | 118 | | | 24.54% | (b) |
Forward EM Corporate Debt Fund—Forward Management, LLC | | 101 | | | 24.48% | (b) |
Forward High Yield Bond Fund—First Western Capital Management Co. | | 70 | | | 14.75% | |
Forward Select EM Dividend Fund—Forward Management, LLC | | 95 | | | 10.28% | (b) |
Net Other Assets and Liabilities | | | | | 1.36% | |
| | | | | 100.00% | |
| | |
| Forward Multi-Strategy Fund | | | | | | |
UNDERLYING FORWARD FUND AND
FUND ADVISOR OR SUB-ADVISOR | | # OF ISSUES | | ALLOCATION | |
Forward Emerging Markets Fund—Forward Management, LLC | | 66 | | | 17.17% | (b) |
Forward Dynamic Income Fund—Forward Management, LLC | | 61 | | | 15.15% | (b) |
Forward Tactical Enhanced Fund—Forward Management, LLC | | 1 | | | 13.17% | (b) |
Forward Real Estate Long/Short Fund—Forward Management, LLC | | 106 | | | 12.74% | (b) |
Forward International Dividend Fund—Forward Management, LLC | | 121 | | | 12.17% | (b) |
Forward Select Opportunity Fund—Forward Management, LLC | | 40 | | | 5.78% | (b) |
Forward Select Income Fund—Forward Management, LLC | | 118 | | | 5.59% | (b) |
Forward Frontier Strategy Fund—Forward Management, LLC | | 141 | | | 3.97% | |
Forward EM Corporate Debt Fund—Forward Management, LLC | | 101 | | | 3.50% | (b) |
Forward Tactical Growth Fund—Broadmark Asset Management, LLC | | 1 | | | 3.14% | (b) |
Forward Global Infrastructure Fund—Forward Management, LLC | | 61 | | | 3.00% | (b) |
Forward International Real Estate Fund—Forward Management, LLC | | 82 | | | 2.85% | (b) |
Forward Commodity Long/Short Strategy Fund—Forward Management, LLC | | 147 | | | 1.28% | (b) |
Net Other Assets and Liabilities | | | | | 0.49% | |
| | | | | 100.00% | |
These allocations may not reflect the current or future position of the portfolios.
* Weightings reflect long positions and excludes securities sold short and derivative instruments.
(a) Less than 0.005%.
(b) Forward Commodity Long/Short Strategy Fund, Forward Credit Analysis Long/Short Fund, Forward Dynamic Income Fund, Forward EM Corporate Debt Fund, Forward Emerging Markets Fund, Forward Global Infrastructure Fund, Forward International Dividend Fund, Forward International Real Estate Fund, Forward Real Estate Fund, Forward Real Estate Long/Short Fund, Forward Select EM Dividend Fund, Forward Select Income Fund, Forward Select Opportunity Fund, Forward Tactical Enhanced Fund and Forward Tactical Growth Fund’s June 30, 2015 Semi-Annual Report may be obtained at www.forwardinvesting.com.
Portfolio of Investments (Note 10) (Unaudited)
Forward Frontier Strategy Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
|
| | Exchange-Traded Funds: 3.84% | |
| | 147,350 | | | iShares® MSCI Frontier 100 ETF | | | | $ | 4,312,934 | |
| | | |
| | | | Total Exchange-Traded Funds
(Cost $4,427,211) | | | | | 4,312,934 | |
| | | |
Principal
Amount | | | | | | | | |
|
| | Agency Pass-Through Securities: 15.77% | |
| | Federal Home Loan Mortgage Corporation (FHLMC): 0.40% | |
| | | |
| | $223,395 | | | FHLMC
1.187%, 05/25/43(a) | | | | | 229,259 | |
| | | |
| | 18,021 | | | 1.942%, 12/01/30(a) | | | | | 18,776 | |
| | | |
| | 32,056 | | | 2.055%, 08/01/17(a) | | | | | 32,275 | |
| | | |
| | 1,364 | | | 2.060%, 03/01/18(a) | | | | | 1,398 | |
| | | |
| | 44,992 | | | 2.495%, 10/01/30(a) | | | | | 46,752 | |
| | | |
| | 3,000 | | | 2.551%, 12/01/18(a) | | | | | 3,054 | |
| | | |
| | 117,040 | | | 4.433%, 11/01/19(a) | | | | | 119,303 | |
| | | |
| | | | | | | | | 450,817 | |
| | | | | | | | | | |
| | Federal National Mortgage Association (FNMA): 14.40% | | | | |
| | | |
| | 1,500,000 | | | FNMA
1.050%, 11/26/18 | | | | | 1,485,594 | |
| | | |
| | 206,797 | | | 1.336%, 09/01/44(a) | | | | | 212,389 | |
| | | |
| | 84,456 | | | 1.336%, 10/01/44(a) | | | | | 86,725 | |
| | | |
| | 3,250 | | | 1.375%, 06/01/21(a) | | | | | 3,269 | |
| | | |
| | 2,000,000 | | | 1.500%, 10/23/19 | | | | | 1,970,284 | |
| | | |
| | 79,702 | | | 1.536%, 06/01/40(a) | | | | | 81,985 | |
| | | |
| | 5,333 | | | 1.536%, 10/01/40(a) | | | | | 5,492 | |
| | | |
| | 2,000,000 | | | 1.710%, 01/15/20 | | | | | 1,986,000 | |
| | | |
| | 51,064 | | | 1.761%, 08/01/34(a) | | | | | 53,474 | |
| | | |
| | 6,059 | | | 1.789%, 01/01/20(a) | | | | | 6,276 | |
| | | |
| | 707,565 | | | 1.790%, 01/01/34(a) | | | | | 741,802 | |
| | | |
| | 108,852 | | | 1.790%, 06/01/34(a) | | | | | 114,247 | |
| | | |
| | 1,433,635 | | | 1.800%, 02/01/20 | | | | | 1,430,100 | |
| | | |
| | 82,119 | | | 1.819%, 08/01/33(a) | | | | | 86,921 | |
| | | |
| | 4,372 | | | 1.846%, 12/01/24(a) | | | | | 4,557 | |
| | | |
| | 4,500,000 | | | 1.875%, 09/18/18 | | | | | 4,600,247 | |
| | | |
| | 275,210 | | | 1.921%, 07/01/35(a) | | | | | 288,674 | |
| | | |
| | 51,625 | | | 1.924%, 06/01/29(a) | | | | | 54,170 | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value
(Note 2) | |
| | |
| | | | | | | | |
| | $ 22,178 | | | 1.948%, 08/01/33(a) | | | | $ | 23,357 | |
| | | |
| | 6,905 | | | 1.950%, 05/01/18(a) | | | | | 7,036 | |
| | | |
| | 7,718 | | | 1.989%, 11/01/18(a) | | | | | 7,864 | |
| | | |
| | 53,985 | | | 2.041%, 11/01/35(a) | | | | | 56,857 | |
| | | |
| | 4,277 | | | 2.054%, 02/01/37(a) | | | | | 4,545 | |
| | | |
| | 18,882 | | | 2.063%, 10/01/34(a) | | | | | 20,011 | |
| | | |
| | 21,102 | | | 2.067%, 03/01/18(a) | | | | | 21,807 | |
| | | |
| | 601,446 | | | 2.072%, 03/01/36(a) | | | | | 634,026 | |
| | | |
| | 20,977 | | | 2.082%, 01/01/36(a) | | | | | 22,066 | |
| | | |
| | 34,064 | | | 2.092%, 05/01/36(a) | | | | | 35,978 | |
| | | |
| | 86,743 | | | 2.107%, 11/01/35(a) | | | | | 91,093 | |
| | | |
| | 26,384 | | | 2.122%, 11/01/35(a) | | | | | 27,780 | |
| | | |
| | 8,526 | | | 2.130%, 04/01/23(a) | | | | | 8,881 | |
| | | |
| | 80,169 | | | 2.175%, 07/01/35(a) | | | | | 85,504 | |
| | | |
| | 90,499 | | | 2.227%, 11/01/37(a) | | | | | 96,256 | |
| | | |
| | 9,437 | | | 2.244%, 08/01/30(a) | | | | | 9,821 | |
| | | |
| | 549,658 | | | 2.273%, 12/01/39(a) | | | | | 584,909 | |
| | | |
| | 37,804 | | | 2.326%, 10/01/33(a) | | | | | 39,862 | |
| | | |
| | 27,700 | | | 2.330%, 01/01/35(a) | | | | | 29,655 | |
| | | |
| | 15,129 | | | 2.340%, 06/01/34(a) | | | | | 16,078 | |
| | | |
| | 32,762 | | | 2.341%, 06/01/32(a) | | | | | 34,538 | |
| | | |
| | 13,486 | | | 2.393%, 11/01/29(a) | | | | | 14,380 | |
| | | |
| | 84,379 | | | 2.402%, 10/01/34(a) | | | | | 88,704 | |
| | | |
| | 21,404 | | | 2.435%, 03/01/19(a) | | | | | 21,466 | |
| | | |
| | 54,499 | | | 2.440%, 06/01/34(a) | | | | | 54,874 | |
| | | |
| | 57,501 | | | 2.493%, 08/01/24(a) | | | | | 60,182 | |
| | | |
| | 130,896 | | | 2.505%, 07/01/41(a) | | | | | 138,923 | |
| | | |
| | 8,806 | | | 2.539%, 09/01/33(a) | | | | | 9,361 | |
| | | |
| | 368,935 | | | 2.725%, 08/01/35(a) | | | | | 394,423 | |
| | | |
| | 257,413 | | | 2.956%, 11/01/36(a) | | | | | 270,491 | |
| | | |
| | 19,347 | | | 3.245%, 08/01/18(a) | | | | | 20,307 | |
| | | |
| | 9,290 | | | 3.260%, 05/01/19(a) | | | | | 9,695 | |
| | | |
| | 40,000 | | | 4.680%, 09/01/19 | | | | | 44,231 | |
| | | |
| | | | | | | | | 16,197,167 | |
| | | | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 21 | | June 30, 2015 |
Portfolio of Investments (Note 10) (Unaudited)
Forward Frontier Strategy Fund
| | | | | | | | | | |
Principal
Amount | | | | | | | Value
(Note 2) | |
| | |
| | | | | | | |
| | Government National Mortgage Association (GNMA): 0.97% | |
| | | |
| | $ 990,710 | | | GNMA
5.000%, 04/20/45 | | | | $ | 1,088,595 | |
| | | |
| | | | Total Agency Pass-Through Securities
(Cost $17,647,471) | | | | | 17,736,579 | |
| | |
| | Asset-Backed Securities: 3.21% | | | | | | |
| | | |
| | 250,000 | | | American Express Credit Account Master Trust, Series 2014-2, Class A
1.260%, 01/15/20 | | | | | 250,406 | |
| | | |
| | 250,000 | | | Cabela’s Master Credit Card Trust,
Series 2013-2A, Class A2
0.836%, 08/16/21(a)(b) | | | | | 251,226 | |
| | | |
| | 1,000,000 | | | John Deere Owner Trust,
Series 2014-B, Class A3
1.070%, 11/15/17 | | | | | 1,000,923 | |
| | | |
| | 397,648 | | | Nissan Auto Receivables 2013-B Owner Trust, Series 2013-B, Class A3
0.840%, 11/15/17 | | | | | 397,822 | |
| | | |
| | 1,200,000 | | | Volkswagen Auto Loan Enhanced Trust,
Series 2014-1, Class A4
1.450%, 09/21/20 | | | | | 1,201,058 | |
| | | |
| | 500,000 | | | Volkswagen Credit Auto Master Trust,
Series 2014-1A, Class A2
1.400%, 07/22/19(b) | | | | | 501,961 | |
| | | |
| | | | Total Asset-Backed Securities
(Cost $3,597,295) | | | | | 3,603,396 | |
| | |
| | Collateralized Mortgage Obligations: 10.04% | | | | | | |
| | Collateralized Mortgage Obligations-Other: 2.61% | | | | | | |
| | | |
| | 972,374 | | | Citigroup Commercial Mortgage Trust,
Series 2010-RR3, Class MLSR
9.192%, 05/14/17(a)(b) | | | | | 1,025,614 | |
| | | |
| | 1,200,000 | | | Credit Suisse Re-REMIC Mortgage Trust,
Series 2010- RR1, Class 3A
5.576%, 05/10/17(a)(b) | | | | | 1,237,844 | |
| | | |
| | 410,660 | | | JP Morgan Chase Commercial Mortgage Securities Trust,
Series 2014-C20, Class A1
1.268%, 03/15/19 | | | | | 408,870 | |
| | | |
| | 262,699 | | | JP Morgan Chase Mortgage Trust,
Series 2004, Class A5
2.281%, 12/25/34(a) | | | | | 264,418 | |
| | | |
| | | | | | | | | 2,936,746 | |
| | | | | | | | | | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value
(Note 2) | |
| | |
| | | | | | | |
| | Federal Home Loan Mortgage Corporation (FHLMC): 3.84% | |
| | | |
| | $ 1,112,760 | | | FHLMC, REMICS
3.000%, 01/15/39 | | | | $ | 1,136,284 | |
| | | |
| | 377,067 | | | 3.000%, 08/15/40 | | | | | 394,143 | |
| | | |
| | 493,001 | | | 3.500%, 04/15/40 | | | | | 522,356 | |
| | | |
| | 150,419 | | | 4.500%, 08/15/20 | | | | | 158,094 | |
| | | |
| | 1,734,024 | | | FHLMC, STRIP
3.500%, 07/15/42 | | | | | 1,783,158 | |
| | | |
| | 306,232 | | | 3.500%, 09/15/42 | | | | | 320,540 | |
| | | |
| | | | | | | | | 4,314,575 | |
| | | | | | | | | | |
| | Federal National Mortgage Association (FNMA): 0.59% | |
| | | |
| | 620,372 | | | FNMA, REMICS
4.500%, 10/25/39 | | | | | 666,486 | |
| | | | | | | | | | |
| | Government National Mortgage Association (GNMA): 3.00% | |
| | | |
| | 513,402 | | | GNMA, REMICS
2.250%, 06/20/39 | | | | | 517,932 | |
| | | |
| | 333,408 | | | 3.500%, 11/20/39 | | | | | 349,020 | |
| | | |
| | 1,881,063 | | | 3.500%, 05/20/41 | | | | | 1,956,465 | |
| | | |
| | 373,806 | | | 4.500%, 10/20/39 | | | | | 410,937 | |
| | | |
| | 131,433 | | | 4.750%, 05/20/39 | | | | | 139,427 | |
| | | |
| | | | | | | | | 3,373,781 | |
| | | |
| | | | Total Collateralized Mortgage Obligations
(Cost $11,271,466) | | | | | 11,291,588 | |
|
| | Corporate Bonds: 15.31% | |
| | Basic Materials: 0.90% | | | | | | |
| | | |
| | 1,000,000 | | | Dow Chemical Co., Sr. Unsec. Notes
2.500%, 02/15/16 | | | | | 1,009,749 | |
| | | | | | | | | | |
| | Consumer Cyclical: 0.67% | | | | | | |
| | | |
| | 750,000 | | | Daimler Finance North America Llc, Sr. Unsec. Notes
1.138%, 08/01/18(a)(b) | | | | | 756,935 | |
| | | | | | | | | | |
| | Consumer Noncyclical: 0.09% | | | | | | |
| | | |
| | 100,000 | | | Johns Hopkins Health System Corp., Sr. Unsec. Notes
1.424%, 05/15/18 | | | | | 99,935 | |
| | | | | | | | | | |
| | Consumer Staples: 1.00% | | | | | | |
| | | |
| | 1,000,000 | | | Kraft Foods Group, Inc., Sr. Unsec. Notes
6.125%, 08/23/18 | | | | | 1,118,411 | |
| | | | | | | | | | |
| | | | |
| June 30, 2015 | | 22 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward Frontier Strategy Fund
| | | | | | | | | | |
Principal
Amount | | | | | | | Value
(Note 2) | |
| | | |
| | | | | | | | | | |
| | Energy: 1.32% | | | | | | |
| | | |
| | $ 400,000 | | | Copano Energy Llc/Copano Energy Finance Corp., Sr. Unsec. Notes
7.125%, 04/01/21 | | | | $ | 423,560 | |
| | | |
| | 345,000 | | | Dominion Resources, Inc., Sr. Unsec. Notes
1.950%, 08/15/16 | | | | | 347,733 | |
| | | |
| | 512,000 | | | Schlumberger Norge AS, Sr. Unsec. Notes
1.950%, 09/14/16(b) | | | | | 518,553 | |
| | | |
| | 190,000 | | | TransCanada PipeLines, Ltd., Sr. Unsec. Notes
0.962%, 06/30/16(a) | | | | | 190,197 | |
| | | |
| | | | | | | | | 1,480,043 | |
| | | | | | | | | | |
| | Financials: 4.73% | | | | | | |
| | | |
| | 400,000 | | | American Express Credit Corp., Sr. Unsec. Notes
0.836%, 03/18/19(a) | | | | | 398,863 | |
| | | |
| | 1,000,000 | | | Branch Banking & Trust Co., Sub. Notes,
Series BKNT
5.625%, 09/15/16 | | | | | 1,052,144 | |
| | | |
| | 500,000 | | | Caterpillar Financial Services Corp.,
Sr. Unsec. Notes
2.050%, 08/01/16 | | | | | 506,654 | |
| | | |
| | 382,000 | | | Macquarie Group, Ltd., Sr. Unsec. Notes
1.278%, 01/31/17(a)(b) | | | | | 383,926 | |
| | | |
| | 1,495,000 | | | Nationwide Mutual Insurance Co., Sub. Notes
2.576%, 12/15/24(a)(b) | | | | | 1,497,984 | |
| | | |
| | 1,000,000 | | | Pricoa Global Funding I, Sec. Notes
2.200%, 05/16/19(b) | | | | | 999,386 | |
| | | |
| | 500,000 | | | Skyway Concession Co., Llc, Sec. Notes
0.562%, 06/30/17(a)(b) | | | | | 483,125 | |
| | | |
| | | | | | | | | 5,322,082 | |
| | | | | | | | | | |
| | Healthcare: 1.77% | | | | | | |
| | | |
| | 1,000,000 | | | AmerisourceBergen Corp., Sr. Unsec. Notes
1.150%, 05/15/17 | | | | | 998,606 | |
| | | |
| | 1,000,000 | | | Sanofi, Sr. Unsec. Notes
1.250%, 04/10/18 | | | | | 996,493 | |
| | | |
| | | | | | | | | 1,995,099 | |
| | | | | | | | | | |
| | Industrials: 0.71% | | | | | | |
| | | |
| | 713,120 | | | Federal Express Corp. 1999 Pass Through Trust, Second Lien Notes,
Series 991B
7.900%, 01/15/20 | | | | | 801,547 | |
| | | | | | | | | | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value
(Note 2) | |
| | | |
| | | | | | | | | | |
| | Technology: 1.89% | | | | | | |
| | | |
| | $ 1,030,000 | | | Hewlett-Packard Co., Sr. Unsec. Notes
3.300%, 12/09/16 | | | | $ | 1,057,522 | |
| | | |
| | 1,000,000 | | | Intuit, Inc., Sr. Unsec. Notes
5.750%, 03/15/17 | | | | | 1,070,248 | |
| | | |
| | | | | | | | | 2,127,770 | |
| | | | | | | | | | |
| | Telecommunication Services: 2.23% | | | | | | |
| | | |
| | 500,000 | | | AT&T, Inc., Sr. Unsec. Notes
0.665%, 02/12/16(a) | | | | | 499,339 | |
| | | |
| | 1,500,000 | | | 2.375%, 11/27/18 | | | | | 1,513,436 | |
| | | |
| | 500,000 | | | Verizon Communications, Inc., Sr. Unsec. Notes
1.100%, 11/01/17 | | | | | 494,410 | |
| | | |
| | | | | | | | | 2,507,185 | |
| | | |
| | | | Total Corporate Bonds
(Cost $17,287,903) | | | | | 17,218,756 | |
|
| | Municipal Bonds: 8.00% | |
| | | |
| | 275,000 | | | Arizona State Power Authority Power Resources, Taxable Revenue Bonds, Hoover Prepayment Project
2.199%, 10/01/19 | | | | | 277,326 | |
| | | |
| | 500,000 | | | City of Houston, Texas, General Obligation Taxable Refunding Bonds, Public Improvement,
Series B
1.140%, 03/01/16 | | | | | 502,535 | |
| | | |
| | 50,000 | | | City of Houston, Texas, Utility System, Taxable Revenue Bonds, First Lien,
Series B
1.086%, 05/15/17 | | | | | 50,068 | |
| | | |
| | 500,000 | | | City of Montgomery, Alabama, General Obligation Taxable Unlimited Warrants,
Series B
1.070%, 04/01/16 | | | | | 499,715 | |
| | | |
| | 750,000 | | | County of Loudoun Virginia, General Obligation Taxable Refunding Bonds,
Series B
0.895%, 12/01/16 | | | | | 751,485 | |
| | | |
| | 250,000 | | | County of Milwaukee Wisconsin, General Obligation Taxable Unlimited Pension Refunding Bonds,
Series B
1.282%, 12/01/16 | | | | | 252,827 | |
| | | | |
| See Notes to Financial Statements | | 23 | | June 30, 2015 |
Portfolio of Investments (Note 10) (Unaudited)
Forward Frontier Strategy Fund
| | | | | | | | | | |
Principal
Amount | | | | | | | Value
(Note 2) | |
|
| | |
| | | | | | | | |
| | $ 655,000 | | | Minnesota State General Appropriation Fund, Taxable Revenue Bonds,
Series B
1.053%, 06/01/17 | | | | $ | 656,244 | |
| | | |
| | 250,000 | | | New Jersey Building Authority, Taxable Refinancing Revenue Bonds,
Series B
1.233%, 06/15/16 | | | | | 249,898 | |
| | | |
| | 500,000 | | | New Jersey State Economic Development Authority, Taxable Refunding Revenue Bonds (School Facilities Construction),
Series QQ
1.096%, 06/15/16 | | | | | 497,320 | |
| | | |
| | 500,000 | | | New York State Urban Development Corp., State Personal Income Taxable Revenue Bonds,
Series F
1.650%, 03/15/18 | | | | | 503,990 | |
| | | |
| | 175,000 | | | North Carolina Housing Finance Agency, Homeownership Taxable Refunding Revenue Bonds,
Series 35
2.040%, 07/01/18 | | | | | 176,995 | |
| | | |
| | 250,000 | | | North Texas Tollway Authority, First Tier Variable Revenue Refunding Bonds,
Series A
0.870%, 01/01/50(a) | | | | | 250,160 | |
| | | |
| | 750,000 | | | Pasadena, California, Unified School District, General Obligation Taxable Unlimited Refunding Bonds,
Series B
1.861%, 11/01/18 | | | | | 757,103 | |
| | | |
| | 300,000 | | | Pearland Independent School District, General Obligation Taxable Unlimited Refunding Bonds,
Series B
3.000%, 02/15/17 | | | | | 308,565 | |
| | | |
| | 250,000 | | | Pequea Valley School District, Taxable General Obligation Unlimited Bonds,
Series B
0.948%, 02/01/16 | | | | | 249,648 | |
| | | |
| | 500,000 | | | Philadelphia Municipal Authority, Taxable Revenue Bonds,
Series A
2.000%, 01/15/18 | | | | | 502,125 | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value
(Note 2) | |
|
| | |
| | | | | | | | |
| | $425,000 | | | Rhode Island State Housing & Mortgage Finance Corp., Taxable Revenue Bonds,
Series 64-T
2.080%, 10/01/17 | | | | $ | 429,161 | |
| | | |
| | 500,000 | | | State of California, Taxable Various Purpose General Obligation Unlimited Bonds
1.050%, 02/01/16 | | | | | 501,750 | |
| | | |
| | 400,000 | | | State of Connecticut, Special Tax Obligation Build America Revenue Bonds (Transportation Infrastructure Purposes — Direct Pay),
Series B
4.376%, 11/01/21 | | | | | 438,428 | |
| | | |
| | 180,000 | | | Texas State Department of Housing & Community Affairs, Taxable Revenue Bonds,
Series A
2.800%, 03/01/36 | | | | | 180,016 | |
| | | |
| | 455,000 | | | Virginia State Housing Development Authority, Taxable Revenue Bonds,
Series B
2.000%, 04/01/19 | | | | | 456,024 | |
| | | |
| | 500,000 | | | Wise County, Virginia, Industrial Development Authority Facilities Lease, Taxable Revenue Bonds
1.700%, 02/01/17 | | | | | 500,220 | |
| | | |
| | | | Total Municipal Bonds
(Cost $8,956,474) | | | | | 8,991,603 | |
|
| | U.S. Treasury Bonds & Notes: 17.46% | |
| | | |
| | 5,000,000 | | | U.S. Treasury Notes
0.750%, 01/15/17 | | | | | 5,016,795 | |
| | | |
| | 6,000,000 | | | 0.750%, 03/15/17 | | | | | 6,020,154 | |
| | | |
| | 6,500,000 | | | 0.875%, 05/15/17 | | | | | 6,528,945 | |
| | | |
| | 2,000,000 | | | 2.375%, 07/31/17 | | | | | 2,069,218 | |
| | |
| | | | Total U.S. Treasury Bonds & Notes
(Cost $19,562,851) | | | 19,635,112 | |
| | | |
| | | | Total Investments: 73.63%
(Cost $82,750,671) | | | | | 82,789,968 | |
| | | |
| | | | Net Other Assets and Liabilities: 26.37% | | | | | 29,652,685 | (c) |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 112,442,653 | |
| | | | |
| June 30, 2015 | | 24 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward Frontier Strategy Fund
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, 2015.
(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 $7,656,554, representing 6.81% 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) | |
Merrill Lynch Financial Markets, Inc. | | MSCI Frontier Markets Daily Net Total Return Index | | 1-month LIBOR plus 110 Bps | | | Total Return | | | | 01/27/16 | | | $ | 17,028,596 | | | $ | (1,894,714) | |
Merrill Lynch Financial Markets, Inc. | | MSCI Frontier Markets Daily Net Total Return Index | | 3-month LIBOR plus 101 Bps | | | Total Return | | | | 04/05/16 | | | | 5,027,389 | | | | (175,629) | |
Barclays Capital | | MSCI Frontier Markets Daily Net Total Return Index | | 3-month LIBOR plus 135 Bps | | | Total Return | | | | 01/27/16 | | | | 8,690,503 | | | | (1,034,242) | |
Barclays Capital | | MSCI Frontier Markets Daily Net Total Return Index | | 3-month LIBOR plus 130 Bps | | | Total Return | | | | 02/29/16 | | | | 15,265,193 | | | | (9,419) | |
Barclays Capital | | MSCI Frontier Markets Daily Net Total Return Index | | 3-month LIBOR plus 130 Bps | | | Total Return | | | | 07/07/16 | | | | 12,068,222 | | | | (27,926) | |
Citibank | | MSCI Frontier Markets Daily Net Total Return Index | | 3-month LIBOR plus 175 Bps | | | Total Return | | | | 06/06/16 | | | | 3,969,345 | | | | (112,006) | |
Citibank | | MSCI Frontier Markets Daily Net Total Return Index | | 3-month LIBOR plus 175 Bps | | | Total Return | | | | 05/05/16 | | | | 3,993,903 | | | | 27,044 | |
Goldman Sachs | | MSCI Frontier Markets Daily Net Total Return Index | | 3-month LIBOR plus 127 Bps | | | Total Return | | | | 08/04/16 | | | | 32,121,999 | | | | (45,914) | |
Goldman Sachs | | MSCI Frontier Markets Daily Net Total Return Index | | 3-month LIBOR plus 155 Bps | | | Total Return | | | | 07/28/15 | | | | 6,433,428 | | | | (907,405) | |
Goldman Sachs | | MSCI Frontier Markets Daily Net Total Return Index | | 3-month LIBOR plus 145 Bps | | | Total Return | | | | 10/29/15 | | | | 8,958,091 | | | | (1,346,791) | |
| Total of Total Return Swap Contracts | | | | | | | | | | | | $ | 113,556,669 | | | $ | (5,527,002) | |
Investment Abbreviations:
Bps — Basis Points
ETF — Exchange-Traded Fund
LIBOR — London Interbank Offered Rate
MSCI — Morgan Stanley Capital International
REMICS — Real Estate Mortgage Investment Conduit
Re-REMIC — Re-Securitized Real Estate Mortgage Investment Conduit
Sec. — Secured
| | | | |
| See Notes to Financial Statements | | 25 | | June 30, 2015 |
Portfolio of Investments (Note 10) (Unaudited)
Forward Frontier Strategy Fund
Sr. — Senior
STRIP — Separate Trading of Registered Interest and Principal of Securities
Sub. — Subordinated
Unsec. — Unsecured
| | | | |
| June 30, 2015 | | 26 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward High Yield Bond Fund
| | | | | | | | | | |
Principal
Amount | | | | | | | Value
(Note 2) | |
|
| | Corporate Bonds: 96.01% | |
| | Basic Materials: 2.41% | |
| | | |
| | $1,500,000 | | | HIG BBC Intermediate Holdings Llc/HIG BBC Holdings Corp., Sr. Unsec. PIK Notes
10.500% (or 11.250% PIK)%, 09/15/18(a) | | | | $ | 1,490,625 | |
| | | |
| | 1,835,000 | | | Rayonier AM Products, Inc., Sr. Unsec. Notes
5.500%, 06/01/24(a) | | | | | 1,646,913 | |
| | | |
| | | | | | | | | 3,137,538 | |
| | | | | | | | | | |
| | Communications: 12.52% | |
| | | |
| | 2,000,000 | | | Cablevision Systems Corp., Sr. Unsec. Notes
5.875%, 09/15/22 | | | | | 1,945,000 | |
| | | |
| | 2,000,000 | | | CCO Holdings Llc / CCO Holdings Capital Corp., Sr. Unsec. Notes
5.125%, 05/01/23(a) | | | | | 1,952,500 | |
| | | |
| | 670,000 | | | CommScope Holding Co. Inc, Sr. Unsec. PIK Notes
6.625% (or 7.375% PIK)%, 06/01/20(a) | | | | | 697,638 | |
| | | |
| | 2,000,000 | | | Digicel Group, Ltd., Sr. Unsec. Notes
8.250%, 09/30/20(a) | | | | | 2,010,000 | |
| | | |
| | 2,000,000 | | | Level 3 Financing, Inc., Sr. Unsec. Notes
5.375%, 08/15/22 | | | | | 2,027,500 | |
| | | |
| | 2,000,000 | | | Numericable-SFR, First Lien Notes
4.875%, 05/15/19(a) | | | | | 1,985,000 | |
| | | |
| | 2,085,000 | | | SiTV Llc/SiTV Finance, Inc., Sec. Notes
10.375%, 07/01/19(a) | | | | | 1,730,550 | |
| | | |
| | 2,000,000 | | | Sprint Corp., Sr. Unsec. Notes
7.125%, 06/15/24 | | | | | 1,860,200 | |
| | | |
| | 2,095,000 | | | Starz Llc/Starz Finance Corp., Sr. Unsec. Notes
5.000%, 09/15/19 | | | | | 2,126,425 | |
| | | |
| | | | | | | | | 16,334,813 | |
| | | | | | | | | | |
| | Consumer Cyclical: 13.48% | |
| | | |
| | 1,784,565 | | | Air Canada 2013-1 Class B Pass Through Trust, Second Lien Notes
5.375%, 05/15/21(a) | | | | | 1,855,947 | |
| | | |
| | 1,675,000 | | | Air Canada, Second Lien Notes
8.750%, 04/01/20(a) | | | | | 1,857,156 | |
| | | |
| | 1,872,976 | | | American Airlines 2013-1 B Pass Through Trust, Second Lien Notes
5.625%, 01/15/21(a) | | | | | 1,947,895 | |
| | | |
| | 2,200,000 | | | Ashton Woods USA Llc/Ashton Woods Finance Co., Sr. Unsec. Notes
6.875%, 02/15/21(a) | | | | | 2,057,000 | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value
(Note 2) | |
|
| | |
| | | | | | | | |
| | $ 1,500,000 | | | GameStop Corp., Sr. Unsec. Notes
5.500%, 10/01/19(a) | | | | $ | 1,548,750 | |
| | 1,760,000 | | | Intrepid Aviation Group Holdings Llc/Intrepid Finance Co., Sr. Unsec. Notes
6.875%, 02/15/19(a) | | | | | 1,645,600 | |
| | | |
| | 1,445,000 | | | Landry’s Holdings II, Inc., Sr. Unsec. Notes
10.250%, 01/01/18(a) | | | | | 1,502,800 | |
| | | |
| | 1,500,000 | | | MGM Resorts International, Sr. Unsec. Notes
6.000%, 03/15/23 | | | | | 1,522,500 | |
| | | |
| | 1,750,000 | | | Michaels Stores, Inc., Sr. Unsub. Notes
5.875%, 12/15/20(a) | | | | | 1,837,500 | |
| | | |
| | 1,750,000 | | | Rite Aid Corp., Sr. Unsec. Notes
6.125%, 04/01/23(a) | | | | | 1,809,063 | |
| | | |
| | | | | | | | | 17,584,211 | |
| | | | | | | | | | |
| | Consumer Noncyclical: 15.90% | |
| | | |
| | 2,060,000 | | | APX Group, Inc., Sr. Unsec. Notes
8.750%, 12/01/20 | | | | | 1,864,300 | |
| | | |
| | 2,180,000 | | | Beverages & More, Inc., Sec. Notes
10.000%, 11/15/18(a) | | | | | 2,177,275 | |
| | | |
| | 1,626,000 | | | Bumble Bee Holdco SCA, Sr. Unsec. PIK Notes
9.625% (or 10.375% PIK)%, 03/15/18(a) | | | | | 1,674,780 | |
| | | |
| | 1,660,000 | | | C&S Group Enterprises Llc, Sec. Notes
5.375%, 07/15/22(a) | | | | | 1,568,700 | |
| | | |
| | 1,000,000 | | | Capella Healthcare, Inc., Sr. Unsec. Notes
9.250%, 07/01/17 | | | | | 1,026,250 | |
| | | |
| | 2,000,000 | | | Cott Beverages, Inc., Sr. Unsec. Notes
5.375%, 07/01/22 | | | | | 1,950,000 | |
| | | |
| | 1,775,000 | | | Dean Foods Co., Sr. Unsec. Notes
6.500%, 03/15/23(a) | | | | | 1,814,937 | |
| | | |
| | 1,500,000 | | | DS Services of America, Inc., Second Lien Notes
10.000%, 09/01/21(a) | | | | | 1,762,500 | |
| | | |
| | 1,750,000 | | | HCA, Inc., Sr. Unsec. Notes
5.375%, 02/01/25 | | | | | 1,771,875 | |
| | | |
| | 1,400,000 | | | Smithfield Foods, Inc., Sr. Unsec. Notes
5.875%, 08/01/21(a) | | | | | 1,449,000 | |
| | | |
| | 2,235,000 | | | Tenet Healthcare Corp., Sr. Unsec. Notes
6.875%, 11/15/31 | | | | | 2,078,550 | |
| | | |
| | 1,500,000 | | | Valeant Pharmaceuticals International, Sr. Unsec. Notes
7.250%, 07/15/22(a) | | | | | 1,599,375 | |
| | | |
| | | | | | | | | 20,737,542 | |
| | | | |
| See Notes to Financial Statements | | 27 | | June 30, 2015 |
Portfolio of Investments (Note 10) (Unaudited)
Forward High Yield Bond Fund
| | | | | | | | | | |
Principal
Amount | | | | | | | Value
(Note 2) | |
|
| | |
| | Energy: 12.57% | |
| | | |
| | $ 1,050,000 | | | Alpha Natural Resources, Inc., Second Lien Notes
7.500%, 08/01/20(a) | | | | $ | 267,750 | |
| | | |
| | 2,400,000 | | | Approach Resources, Inc., Sr. Unsec. Notes
7.000%, 06/15/21 | | | | | 2,172,000 | |
| | | |
| | 1,891,000 | | | Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp., Sr. Unsec. Notes
6.000%, 12/15/20 | | | | | 1,966,640 | |
| | | |
| | 2,310,000 | | | Legacy Reserves LP/Legacy Reserves Finance Corp., Sr. Unsec. Notes
8.000%, 12/01/20 | | | | | 2,021,250 | |
| | | |
| | 2,250,000 | | | Lonestar Resources America, Inc., Sr. Unsec. Notes
8.750%, 04/15/19(a) | | | | | 1,856,250 | |
| | | |
| | 2,000,000 | | | MarkWest Energy Partners LP / MarkWest Energy Finance Corp., Sr. Unsec. Notes
4.875%, 06/01/25 | | | | | 1,960,000 | |
| | | |
| | 1,500,000 | | | Peabody Energy Corp., Sr. Unsec. Notes
6.500%, 09/15/20 | | | | | 517,500 | |
| | | |
| | 1,425,000 | | | Rosetta Resources, Inc., Sr. Unsec. Notes
5.875%, 06/01/22 | | | | | 1,527,172 | |
| | | |
| | 2,070,000 | | | Shelf Drilling Holdings, Ltd., Sec. Notes
8.625%, 11/01/18(a) | | | | | 1,852,650 | |
| | | |
| | 2,352,000 | | | Vanguard Natural Resources Llc/VNR Finance Corp., Sr. Unsec. Notes
7.875%, 04/01/20 | | | | | 2,257,920 | |
| | | |
| | | | | | | | | 16,399,132 | |
| | | | | | | | | | |
| | Financials: 18.04% | |
| | | |
| | 1,500,000 | | | Aircastle, Ltd., Sr. Unsec. Notes
5.125%, 03/15/21 | | | | | 1,518,750 | |
| | | |
| | 1,475,000 | | | Apollo Investment Corp., Sr. Unsec. Notes
5.250%, 03/03/25 | | | | | 1,456,183 | |
| | | |
| | 2,440,000 | | | DFC Finance Corp., First Lien Notes
10.500%, 06/15/20(a) | | | | | 1,860,500 | |
| | | |
| | 2,000,000 | | | Drawbridge Special Opportunities Fund LP/Drawbridge Special Opportunities Finance, Sr. Unsec. Notes
5.000%, 08/01/21(a) | | | | | 2,005,000 | |
| | | |
| | 1,713,000 | | | Hub Holdings Llc/Hub Holdings Finance, Inc., Sr. Unsec. PIK Notes
8.125% (or 8.875% PIK)%, 07/15/19(a) | | | | | 1,713,000 | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value
(Note 2) | |
|
| | |
| | | | | | | | |
| | $ 2,000,000 | | | Hunt Cos. Inc., Sec. Notes
9.625%, 03/01/21(a) | | | | $ | 2,070,000 | |
| | | |
| | 2,000,000 | | | iStar Financial, Inc., Sr. Unsec. Notes
4.875%, 07/01/18 | | | | | 1,975,000 | |
| | | |
| | 2,020,000 | | | Kennedy-Wilson, Inc., Sr. Unsec. Notes
5.875%, 04/01/24 | | | | | 2,014,950 | |
| | | |
| | 1,802,000 | | | MPT Operating Partnership LP / MPT Finance Corp., Sr. Unsec. Notes
6.375%, 02/15/22 | | | | | 1,928,140 | |
| | | |
| | 1,750,000 | | | Navient Corp., Sr. Unsec. Notes
5.875%, 03/25/21 | | | | | 1,753,272 | |
| | | |
| | 1,850,000 | | | NewStar Financial, Inc., Sr. Unsec. Notes
7.250%, 05/01/20(a) | | | | | 1,905,500 | |
| | | |
| | 1,700,000 | | | Quicken Loans, Inc., Sr. Unsec. Notes
5.750%, 05/01/25(a) | | | | | 1,632,000 | |
| | | |
| | 1,635,000 | | | Sabra Health Care LP/Sabra Capital Corp., Sr. Unsec. Notes
5.500%, 02/01/21 | | | | | 1,696,313 | |
| | | |
| | | | | | | | | 23,528,608 | |
| | | | | | | | | | |
| | Industrials: 13.49% | |
| | | |
| | 1,863,166 | | | Ardagh Finance Holdings SA, Sr. Unsec. PIK Notes
8.625% (or 8.625% PIK)%, 06/15/19(a) | | | | | 1,937,693 | |
| | | |
| | 1,500,000 | | | Ball Corp., Sr. Unsec. Notes
5.250%, 07/01/25 | | | | | 1,490,625 | |
| | | |
| | 2,540,000 | | | Kratos Defense & Security Solutions, Inc., First Lien Notes
7.000%, 05/15/19 | | | | | 2,327,275 | |
| | | |
| | 1,923,000 | | | Martin Midstream Partners LP/Martin Midstream Finance Corp., Sr. Unsec. Notes
7.250%, 02/15/21 | | | | | 1,898,962 | |
| | | |
| | 2,300,000 | | | Neovia Logistics Intermediate Holdings Llc, Sr. Unsec. PIK Notes
10.000% (or 10.750% PIK)%, 02/15/18(a) | | | | | 2,300,000 | |
| | | |
| | 2,075,000 | | | Techniplas Llc, Sec. Notes
10.000%, 05/01/20(a) | | | | | 2,100,937 | |
| | | |
| | 1,780,000 | | | US Concrete, Inc., First Lien Notes
8.500%, 12/01/18 | | | | | 1,886,800 | |
| | | |
| | 1,750,000 | | | XPO Logistics, Inc., Sr. Unsec. Notes
7.875%, 09/01/19(a) | | | | | 1,879,063 | |
| | | | |
| June 30, 2015 | | 28 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward High Yield Bond Fund
| | | | | | | | | | |
Principal
Amount | | | | | | | Value
(Note 2) | |
|
| | |
| | Industrials (continued): 13.49% | |
| | | |
| | $ 1,775,000 | | | Zachry Holdings, Inc., Sr. Unsec. Notes
7.500%, 02/01/20(a) | | | | $ | 1,775,000 | |
| | | |
| | | | | | | | | 17,596,355 | |
| | | | | | | | | | |
| | Technology: 3.00% | |
| | | |
| | 1,800,000 | | | Activision Blizzard, Inc., Sr. Unsec. Notes
5.625%, 09/15/21(a) | | | | | 1,890,000 | |
| | | |
| | 2,000,000 | | | BCP Singapore VI Cayman Financing Co., Ltd., Sec. Notes
8.000%, 04/15/21(a) | | | | | 2,022,500 | |
| | | |
| | | | | | | | | 3,912,500 | |
| | | | | | | | | | |
| | Utilities: 4.60% | |
| | | |
| | 1,974,000 | | | Calpine Corp., Sr. Unsec. Notes
5.375%, 01/15/23 | | | | | 1,949,325 | |
| | | |
| | 2,000,000 | | | NGL Energy Partners LP/NGL Energy Finance Corp., Sr. Unsec. Notes
5.125%, 07/15/19 | | | | | 2,005,000 | |
| | | |
| | 2,000,000 | | | NRG Energy, Inc., Sr. Unsec. Notes
6.250%, 07/15/22 | | | | | 2,040,000 | |
| | | |
| | | | | | | | | 5,994,325 | |
| | |
| | | | Total Corporate Bonds
(Cost $127,331,929) | | | 125,225,024 | |
| | | |
| | | | Total Investments: 96.01%
(Cost $127,331,929) | | | | | 125,225,024 | |
| | |
| | | | Net Other Assets and Liabilities: 3.99% | | | 5,210,090 | |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 130,435,114 | |
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 $68,689,347, representing 52.66% of net assets.
Investment Abbreviations:
PIK — Payment in-kind
Sec. — Secured
Sr. — Senior
Unsec. — Unsecured
Unsub. — Unsubordinated
| | | | |
| See Notes to Financial Statements | | 29 | | June 30, 2015 |
Portfolio of Investments (Note 10) (Unaudited)
Forward Investment Grade Fixed-Income Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | |
| | Exchange-Traded Funds: 95.46% | | | | | | |
| | 43,507 | | | Vanguard Intermediate-Term Corporate Bond ETF | | | | $ | 3,711,147 | |
| | | |
| | 83,740 | | | Vanguard Intermediate-Term Government Bond ETF | | | | | 5,399,555 | |
| | | |
| | 29,667 | | | Vanguard Mortgage-Backed Securities ETF | | | | | 1,567,308 | |
| | | |
| | | | Total Exchange-Traded Funds
(Cost $10,754,495) | | | | | 10,678,010 | |
| | | |
Principal
Amount | | | | | | | | |
|
| | U.S. Treasury Bonds & Notes: 0.00%(a) | |
| | | |
| | $36 | | | U.S. Treasury Bonds STRIP Coupon
0.000%, 11/15/17(b) | | | | | 35 | |
| | | |
| | | | Total U.S. Treasury Bonds & Notes
(Cost $32) | | | | | 35 | |
| | | |
| | | | Total Investments: 95.46%
(Cost $10,754,527) | | | | | 10,678,045 | |
| | | |
| | | | Net Other Assets and Liabilities: 4.54% | | | | | 508,285 | |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 11,186,330 | |
Percentages are stated as a percent of net assets.
(a) Less than 0.005%.
(b) Principal only security.
Investment Abbreviations:
ETF — Exchange-Traded Fund
STRIP — Separate Trading of Registered Interest and Principal of Securities
| | | | |
| June 30, 2015 | | 30 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward Total MarketPlus Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | |
| | Exchange-Traded Funds: 54.11% | | | | | | |
| | | | | | | | |
| | | |
| | 1,800 | | | iShares Russell 3000® ETF | | | | $ | 223,164 | |
| | | |
| | 10,400 | | | Vanguard Mortgage-Backed Securities ETF | | | | | 549,432 | |
| | | |
| | 49,950 | | | Vanguard Short-Term Corporate Bond ETF | | | | | 3,975,021 | |
| | | |
| | 130,850 | | | Vanguard Short-Term Government Bond ETF | | | | | 7,994,935 | |
| | | |
| | | | Total Exchange-Traded Funds
(Cost $12,752,013) | | | | | 12,742,552 | |
| | | |
Principal
Amount | | | | | | | | |
|
| | Agency Pass-Through Securities: 14.22% | |
| | Federal Home Loan Mortgage Corporation (FHLMC): 4.72% | |
| | | |
| | $9,116 | | | FHLMC
1.794%, 06/01/20(a) | | | | | 9,256 | |
| | | |
| | 48,526 | | | 1.882%, 07/01/29(a) | | | | | 51,064 | |
| | | |
| | 61,830 | | | 1.887%, 12/01/35(a) | | | | | 65,103 | |
| | | |
| | 6,091 | | | 1.953%, 03/01/19(a) | | | | | 6,186 | |
| | | |
| | 74,241 | | | 1.955%, 12/01/35(a) | | | | | 78,188 | |
| | | |
| | 4,808 | | | 1.972%, 11/01/26(a) | | | | | 4,940 | |
| | | |
| | 77,881 | | | 1.981%, 02/01/36(a) | | | | | 82,063 | |
| | | |
| | 25,103 | | | 2.000%, 04/01/18(a) | | | | | 25,256 | |
| | | |
| | 67,499 | | | 2.067%, 01/01/37(a) | | | | | 70,966 | |
| | | |
| | 11,332 | | | 2.097%, 10/01/28(a) | | | | | 11,839 | |
| | | |
| | 79,075 | | | 2.100%, 08/01/33(a) | | | | | 83,747 | |
| | | |
| | 10,178 | | | 2.139%, 09/01/36(a) | | | | | 10,833 | |
| | | |
| | 3,995 | | | 2.155%, 07/01/19(a) | | | | | 4,041 | |
| | | |
| | 10,556 | | | 2.163%, 05/01/33(a) | | | | | 11,182 | |
| | | |
| | 2,523 | | | 2.166%, 01/01/26(a) | | | | | 2,676 | |
| | | |
| | 22,053 | | | 2.198%, 05/01/36(a) | | | | | 23,452 | |
| | | |
| | 293 | | | 2.200%, 03/01/17(a) | | | | | 293 | |
| | | |
| | 16,730 | | | 2.223%, 06/01/37(a) | | | | | 17,816 | |
| | | |
| | 13,475 | | | 2.225%, 06/01/35(a) | | | | | 13,678 | |
| | | |
| | 30,401 | | | 2.242%, 09/01/28(a) | | | | | 31,875 | |
| | | |
| | 3,300 | | | 2.250%, 11/01/22(a) | | | | | 3,410 | |
| | | |
| | 2,110 | | | 2.276%, 12/01/22(a) | | | | | 2,128 | |
| | | |
| | 1,668 | | | 2.302%, 09/01/30(a) | | | | | 1,761 | |
| | | |
| | 1,701 | | | 2.316%, 10/01/22(a) | | | | | 1,762 | |
| | | |
| | 3,801 | | | 2.319%, 09/01/27(a) | | | | | 4,049 | |
| | | |
| | 8,736 | | | 2.324%, 05/01/35(a) | | | | | 9,296 | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value
(Note 2) | |
| | |
| | | | | | | | |
| | | |
| | $3,663 | | | 2.332%, 12/01/27(a) | | | | $ | 3,811 | |
| | | |
| | 64,849 | | | 2.336%, 07/01/30(a) | | | | | 67,189 | |
| | | |
| | 10,953 | | | 2.337%, 01/01/37(a) | | | | | 11,749 | |
| | | |
| | 822 | | | 2.346%, 03/01/24(a) | | | | | 828 | |
| | | |
| | 15,675 | | | 2.349%, 09/01/30(a) | | | | | 16,346 | |
| | | |
| | 4,163 | | | 2.350%, 10/01/32(a) | | | | | 4,320 | |
| | | |
| | 6,890 | | | 2.355%, 10/01/31(a) | | | | | 7,172 | |
| | | |
| | 4,741 | | | 2.361%, 12/01/27(a) | | | | | 5,008 | |
| | | |
| | 12,880 | | | 2.375%, 08/01/32(a) | | | | | 13,704 | |
| | | |
| | 29,912 | | | 2.375%, 02/01/33(a) | | | | | 30,071 | |
| | | |
| | 42,156 | | | 2.377%, 08/01/35(a) | | | | | 45,084 | |
| | | |
| | 11,800 | | | 2.409%, 07/01/31(a) | | | | | 12,250 | |
| | | |
| | 5,693 | | | 2.416%, 03/01/33(a) | | | | | 5,863 | |
| | | |
| | 5,742 | | | 2.438%, 02/01/32(a) | | | | | 5,979 | |
| | | |
| | 1,347 | | | 2.440%, 06/01/19(a) | | | | | 1,351 | |
| | | |
| | 24,144 | | | 2.449%, 11/01/28(a) | | | | | 25,112 | |
| | | |
| | 3,316 | | | 2.475%, 01/01/24(a) | | | | | 3,404 | |
| | | |
| | 2,409 | | | 2.490%, 01/01/28(a) | | | | | 2,564 | |
| | | |
| | 18,270 | | | 2.492%, 10/01/20(a) | | | | | 18,630 | |
| | | |
| | 10,068 | | | 2.497%, 09/01/30(a) | | | | | 10,512 | |
| | | |
| | 104,079 | | | 2.543%, 03/01/32(a) | | | | | 109,601 | |
| | | |
| | 5,757 | | | 2.789%, 02/01/31(a) | | | | | 5,891 | |
| | | |
| | 33,930 | | | 2.900%, 01/01/29(a) | | | | | 36,280 | |
| | | |
| | 3,833 | | | 5.496%, 08/01/24(a) | | | | | 4,074 | |
| | | |
| | 36,214 | | | 5.624%, 11/01/30(a) | | | | | 37,943 | |
| | | |
| | | | | | | | | 1,111,596 | |
| | | | | | | | | | |
| | Federal National Mortgage Association (FNMA): 9.50% | |
| | | |
| | 2,241 | | | FNMA
1.375%, 06/01/21(a) | | | | | 2,254 | |
| | | |
| | 2,660 | | | 1.512%, 09/01/33(a) | | | | | 2,786 | |
| | | |
| | 26,597 | | | 1.531%, 01/01/31(a) | | | | | 27,039 | |
| | | |
| | 133,537 | | | 1.536%, 06/01/40(a) | | | | | 137,363 | |
| | | |
| | 6,486 | | | 1.536%, 07/01/40(a) | | | | | 6,582 | |
| | | |
| | 37,431 | | | 1.536%, 11/01/40(a) | | | | | 38,855 | |
| | | |
| | 3,520 | | | 1.596%, 11/01/33(a) | | | | | 3,703 | |
| | | |
| | 11,310 | | | 1.610%, 03/01/28(a) | | | | | 11,760 | |
| | | | |
| See Notes to Financial Statements | | 31 | | June 30, 2015 |
Portfolio of Investments (Note 10) (Unaudited)
Forward Total MarketPlus Fund
| | | | | | | | | | |
Principal
Amount | | | | | | | Value
(Note 2) | |
|
| | |
| | Federal National Mortgage Association (FNMA) (continued): 9.50% | |
| | | |
| | $8,237 | | | 1.621%, 11/01/33(a) | | | | $ | 8,608 | |
| | | |
| | 13,666 | | | 1.662%, 09/01/27(a) | | | | | 14,395 | |
| | | |
| | 12,680 | | | 1.731%, 05/01/32(a) | | | | | 13,551 | |
| | | |
| | 26,370 | | | 1.750%, 10/01/34(a) | | | | | 27,069 | |
| | | |
| | 14,823 | | | 1.788%, 08/01/33(a) | | | | | 15,534 | |
| | | |
| | 5,944 | | | 1.789%, 01/01/20(a) | | | | | 6,157 | |
| | | |
| | 6,030 | | | 1.846%, 12/01/24(a) | | | | | 6,285 | |
| | | |
| | 5,811 | | | 1.865%, 10/01/35(a) | | | | | 6,162 | |
| | | |
| | 43,668 | | | 1.865%, 05/01/36(a) | | | | | 45,975 | |
| | | |
| | 994 | | | 1.875%, 09/01/17(a) | | | | | 1,002 | |
| | | |
| | 20,862 | | | 1.880%, 01/01/35(a) | | | | | 21,740 | |
| | | |
| | 31,775 | | | 1.880%, 11/01/35(a) | | | | | 33,457 | |
| | | |
| | 102,548 | | | 1.885%, 02/01/33(a) | | | | | 107,686 | |
| | | |
| | 17,987 | | | 1.888%, 01/01/23(a) | | | | | 18,687 | |
| | | |
| | 9,277 | | | 1.892%, 11/01/33(a) | | | | | 9,472 | |
| | | |
| | 17,023 | | | 1.893%, 01/01/35(a) | | | | | 17,803 | |
| | | |
| | 23,896 | | | 1.899%, 04/01/36(a) | | | | | 25,182 | |
| | | |
| | 28,640 | | | 1.925%, 05/01/33(a) | | | | | 30,072 | |
| | | |
| | 93,949 | | | 1.925%, 11/01/34(a) | | | | | 96,380 | |
| | | |
| | 29,454 | | | 1.925%, 05/01/35(a) | | | | | 30,943 | |
| | | |
| | 23,527 | | | 1.925%, 03/01/36(a) | | | | | 24,811 | |
| | | |
| | 8,558 | | | 1.925%, 04/01/36(a) | | | | | 9,001 | |
| | | |
| | 60,202 | | | 1.940%, 06/01/35(a) | | | | | 63,393 | |
| | | |
| | 41,060 | | | 1.945%, 11/01/35(a) | | | | | 43,164 | |
| | | |
| | 3,500 | | | 1.965%, 04/01/18(a) | | | | | 3,689 | |
| | | |
| | 20,598 | | | 2.000%, 10/01/17(a) | | | | | 20,879 | |
| | | |
| | 44,346 | | | 2.015%, 04/01/36(a) | | | | | 46,759 | |
| | | |
| | 59,813 | | | 2.018%, 07/01/35(a) | | | | | 63,838 | |
| | | |
| | 319,284 | | | 2.055%, 11/01/35(a) | | | | | 336,200 | |
| | | |
| | 6,305 | | | 2.059%, 08/01/29(a) | | | | | 6,672 | |
| | | |
| | 7,200 | | | 2.062%, 07/01/34(a) | | | | | 7,626 | |
| | | |
| | 4,189 | | | 2.085%, 04/01/18(a) | | | | | 4,265 | |
| | | |
| | 36,806 | | | 2.100%, 01/01/33(a) | | | | | 39,221 | |
| | | |
| | 50,895 | | | 2.105%, 12/01/32(a) | | | | | 53,927 | |
| | | |
| | 88,592 | | | 2.115%, 12/01/34(a) | | | | | 94,164 | |
| | | |
| | 4,854 | | | 2.117%, 01/01/25(a) | | | | | 5,068 | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value
(Note 2) | |
|
| | |
| | | | | | | | |
| | $38,160 | | | 2.120%, 02/01/35(a) | | | | $ | 40,623 | |
| | | |
| | 2,543 | | | 2.132%, 11/01/17(a) | | | | | 2,593 | |
| | | |
| | 100,957 | | | 2.145%, 11/01/34(a) | | | | | 107,530 | |
| | | |
| | 7,804 | | | 2.159%, 12/01/32(a) | | | | | 8,141 | |
| | | |
| | 27,291 | | | 2.180%, 11/01/34(a) | | | | | 29,223 | |
| | | |
| | 23,379 | | | 2.216%, 02/01/25(a) | | | | | 24,892 | |
| | | |
| | 23,685 | | | 2.217%, 04/01/33(a) | | | | | 25,073 | |
| | | |
| | 14,290 | | | 2.250%, 03/01/35(a) | | | | | 15,302 | |
| | | |
| | 5,576 | | | 2.251%, 04/01/33(a) | | | | | 5,924 | |
| | | |
| | 9,967 | | | 2.275%, 04/01/33(a) | | | | | 10,303 | |
| | | |
| | 29,129 | | | 2.278%, 01/01/33(a) | | | | | 30,734 | |
| | | |
| | 4,563 | | | 2.279%, 07/01/29(a) | | | | | 4,673 | |
| | | |
| | 31,562 | | | 2.281%, 04/01/40(a) | | | | | 33,794 | |
| | | |
| | 26,655 | | | 2.292%, 07/01/33(a) | | | | | 28,383 | |
| | | |
| | 30,083 | | | 2.311%, 03/01/35(a) | | | | | 32,122 | |
| | | |
| | 8,444 | | | 2.341%, 06/01/32(a) | | | | | 8,902 | |
| | | |
| | 5,807 | | | 2.358%, 05/01/32(a) | | | | | 6,093 | |
| | | |
| | 96,241 | | | 2.385%, 02/01/37(a) | | | | | 101,920 | |
| | | |
| | 27,732 | | | 2.402%, 03/01/38(a) | | | | | 29,221 | |
| | | |
| | 3,005 | | | 2.414%, 05/01/33(a) | | | | | 3,181 | |
| | | |
| | 8,552 | | | 2.528%, 07/01/28(a) | | | | | 8,980 | |
| | | |
| | 10,666 | | | 2.539%, 09/01/33(a) | | | | | 11,339 | |
| | | |
| | 9,086 | | | 2.570%, 09/01/39(a) | | | | | 9,608 | |
| | | |
| | 35,858 | | | 2.587%, 01/01/28(a) | | | | | 37,814 | |
| | | |
| | 24,450 | | | 2.651%, 12/01/30(a) | | | | | 26,178 | |
| | | |
| | 3,527 | | | 3.362%, 04/01/33(a) | | | | | 3,677 | |
| | | |
| | 1,368 | | | 3.858%, 10/01/27(a) | | | | | 1,380 | |
| | | |
| | 483 | | | 4.500%, 02/01/18(a) | | | | | 487 | |
| | | |
| | | | | | | | | 2,237,269 | |
| | | |
| | | | Total Agency Pass-Through Securities
(Cost $3,256,596) | | | | | 3,348,865 | |
| | | |
| | | | Total Investments: 68.33%
(Cost $16,008,609) | | | | | 16,091,417 | |
| | | |
| | | | Net Other Assets and Liabilities: 31.67% | | | | | 7,456,461 | |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 23,547,878 | |
| | | | |
| June 30, 2015 | | 32 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward Total MarketPlus Fund
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, 2015.
Total Return Swap Contracts
| | | | | | | | | | | | | | | | | | | | |
| Counter Party | | Reference Entry/Obligation | | Fund Pays | | Fund
Receives | | | Termination
Date | | | Notional
Amount | | | Net
Unrealized
Gain/(Loss) | |
Merrill Lynch Financial Markets, Inc. | | Russell 3000® Total Return Index | | 1-month LIBOR plus 30 Bps | | | Total Return | | | | 07/06/15 | | | $ | 2,800,356 | | | $ | (35,569) | |
Goldman Sachs | | Russell 3000® Total Return Index | | 3-month LIBOR plus 28 Bps | | | Total Return | | | | 05/05/16 | | | | 20,213,781 | | | | 188,648 | |
| Total of Total Return Swap Contracts | | | | | | | | | | | | $ | 23,014,137 | | | $ | 153,079 | |
Investment Abbreviations:
Bps — Basis Points
ETF — Exchange-Traded Fund
LIBOR — London Interbank Offered Rate
| | | | |
| See Notes to Financial Statements | | 33 | | June 30, 2015 |
Portfolio of Investments (Note 10) (Unaudited)
Forward U.S. Government Money Fund
| | | | | | | | | | |
Principal
Amount | | | | | | | Value
(Note 2) | |
| |
| | Repurchase Agreements: 99.07% | | | | |
| | | | | | | | |
| | $16,000,000 | | | INTL FCStone, Inc., 0.150%, dated 06/30/15 and maturing 07/01/15 with a repurchase amount of $16,000,067, collateralized by a FFCB Security with a rate of 0.214% and with a maturity date of 10/02/17 with a par value of $16,000,000 and a collateral value of $16,003,878. | | | | $ | 16,000,000 | |
| | | |
| | 11,000,000 | | | INTL FCStone, Inc., 0.200%, dated 06/30/15 and maturing 07/07/15 with a repurchase amount of $11,000,428, collateralized by several FNMA, FHLMC, FHLB and GNMA Securities with rates ranging from 0.000% to 7.500% and with maturity dates ranging from 02/12/16 to 06/01/44 with a with a par value of $59,324,862 and a collateral value of $11,222,826. | | | | | 11,000,000 | |
| | | |
| | 11,000,000 | | | INTL FCStone, Inc., 0.250%, dated 06/24/15 and maturing 07/01/15 with a repurchase amount of $11,000,535, collateralized by several FHLMC Securities with rates ranging from 4.000% to 6.000% and with maturity dates ranging from 11/01/17 to 03/01/31 with a par value of $132,745,384 and a collateral value of $11,228,418. | | | | | 11,000,000 | |
| | | |
| | 11,000,000 | | | INTL FCStone, Inc., 0.250%, dated 06/25/15 and maturing 07/02/15 with a repurchase amount of $11,000,535, collateralized by several FHLMC Securities with rates ranging from 4.000% to 7.500% and with maturity dates ranging from 09/01/17 to 03/01/31 with a par value of $81,478,040 and a collateral value of $11,219,732. | | | | | 11,000,000 | |
| | | |
| | 11,000,000 | | | INTL FCStone, Inc., 0.250%, dated 06/26/15 and maturing 07/02/15 with a repurchase amount of $11,000,458, collateralized by several FNMA, FHLMC, and GNMA Securities with rates ranging from 0.000% to 7.500% and with maturity dates ranging from 02/12/16 to 10/01/44 with a with a par value of $62,652,478 and a collateral value of $11,221,767. | | | | | 11,000,000 | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value
(Note 2) | |
|
| | | |
| | $ 11,000,000 | | | INTL FCStone, Inc., 0.250%, dated 06/29/15 and maturing 07/06/15 with a repurchase amount of $11,000,535, collateralized by several FHLMC Securities with rates ranging from 4.000% to 6.500% and with maturity dates ranging from 11/01/17 to 12/01/43 with a par value of $128,974,827 and a collateral value of $11,242,123. | | | | $ | 11,000,000 | |
| | | |
| | | | Total Repurchase Agreements
(Cost $71,000,000) | | | | | 71,000,000 | |
| | | |
| | | | Total Investments: 99.07%
(Cost $71,000,000) | | | | | 71,000,000 | |
| | | |
| | | | Net Other Assets and Liabilities: 0.93% | | | | | 662,917 | |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 71,662,917 | |
Percentages are stated as a percent of net assets.
Investment Abbreviations:
FFCB — Federal Farm Credit Bank
FHLB — Federal Home Loan Bank
FHLMC — Federal Home Loan Mortgage Corporation
FNMA — Federal National Mortgage Association
GNMA — Government National Mortgage Association
| | | | |
| June 30, 2015 | | 34 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward Balanced Allocation Fund
| | | | | | | | | | | | |
| Shares | | | | | Allocation | | | Value
(Note 2) | |
| |
| | Affiliated Investment Companies: 99.20% | | | | | |
| | 33,951 | | | Forward Commodity Long/Short Strategy
Fund — Class Z(a)(b) | | | 7.00 | % | | $ | 640,315 | |
| | | |
| | 49,021 | | | Forward Credit Analysis Long/Short
Fund — Institutional Class(a) | | | 3.94 | % | | | 360,306 | |
| | | |
| | 17,466 | | | Forward Dynamic Income
Fund — Institutional Class(a) | | | 4.89 | % | | | 446,782 | |
| | | |
| | 83,515 | | | Forward EM Corporate Debt
Fund — Institutional Class(a) | | | 7.78 | % | | | 710,712 | |
| | | |
| | 18,492 | | | Forward Frontier Strategy
Fund — Class Z | | | 1.99 | % | | | 181,591 | |
| | | |
| | 19,275 | | | Forward High Yield Bond
Fund — Class Z | | | 2.04 | % | | | 186,581 | |
| | | |
| | 242,810 | | | Forward International Dividend
Fund — Institutional Class(a) | | | 19.47 | % | | | 1,779,796 | |
| | | |
| | 9,873 | | | Forward International Real Estate
Fund — Institutional Class(a) | | | 1.66 | % | | | 151,360 | |
| | | |
| | 218,091 | | | Forward Investment Grade Fixed-Income
Fund — Class Z | | | 26.03 | % | | | 2,379,374 | |
| | | |
| | 6,898 | | | Forward Real Estate
Fund — Institutional Class(a) | | | 1.09 | % | | | 99,947 | |
| | | |
| | 43,702 | | | Forward Select EM Dividend
Fund — Institutional Class(a) | | | 9.31 | % | | | 851,322 | |
| | | |
| | 17,413 | | | Forward Select Opportunity
Fund — Institutional Class(a) | | | 4.78 | % | | | 437,249 | |
| | | |
| | 20,669 | | | Forward Total MarketPlus Fund — Class Z | | | 9.22 | % | | | 842,669 | |
| | |
| | | | Total Affiliated Investment Companies
(Cost $8,755,899) | | | | 9,068,004 | |
| | | |
| | | | Total Investments: 99.20%
(Cost $8,755,899) | | | | | | | 9,068,004 | |
| | |
| | | | Net Other Assets and Liabilities: 0.80% | | | | 73,252 | |
| | | |
| | | | Net Assets: 100.00% | | | | | | $ | 9,141,256 | |
Percentages are stated as a percent of net assets.
(a) Forward Commodity Long/Short Strategy Fund, Forward Credit Analysis Long/Short Fund, Forward Dynamic Income Fund, Forward EM Corporate Debt Fund, Forward International Dividend Fund, Forward International Real Estate Fund, Forward Real Estate Fund, Forward Select EM Dividend Fund and Forward Select Opportunity Fund’s June 30, 2015 Semi-Annual Report may be obtained at www.forwardinvesting.com.
(b) Non-income producing security.
| | | | |
| See Notes to Financial Statements | | 35 | | June 30, 2015 |
Portfolio of Investments (Note 10) (Unaudited)
Forward Growth & Income Allocation Fund
| | | | | | | | | | | | |
| Shares | | | | | Allocation | | | Value
(Note 2) | |
| |
| | Affiliated Investment Companies: 100.23% | | | | | |
| | 77,245 | | | Forward Commodity Long/Short Strategy Fund — Class Z(a)(b) | | | 6.93 | % | | $ | 1,456,843 | |
| | | |
| | 72,277 | | | Forward Credit Analysis Long/Short
Fund — Institutional Class(a) | | | 2.53 | % | | | 531,232 | |
| | | |
| | 41,685 | | | Forward Dynamic Income
Fund — Institutional Class(a) | | | 5.07 | % | | | 1,066,308 | |
| | | |
| | 122,953 | | | Forward EM Corporate Debt
Fund — Institutional Class(a) | | | 4.98 | % | | | 1,046,333 | |
| | | |
| | 58,124 | | | Forward Frontier Strategy
Fund — Class Z | | | 2.72 | % | | | 570,781 | |
| | | |
| | 25,464 | | | Forward High Yield Bond
Fund — Class Z | | | 1.17 | % | | | 246,489 | |
| | | |
| | 766,925 | | | Forward International Dividend
Fund — Institutional Class(a) | | | 26.74 | % | | | 5,621,558 | |
| | | |
| | 23,638 | | | Forward International Real Estate
Fund — Institutional Class(a) | | | 1.72 | % | | | 362,376 | |
| | | |
| | 316,268 | | | Forward Investment Grade Fixed-Income
Fund — Class Z | | | 16.41 | % | | | 3,450,487 | |
| | | |
| | 20,073 | | | Forward Real Estate
Fund — Institutional Class(a) | | | 1.38 | % | | | 290,858 | |
| | | |
| | 139,568 | | | Forward Select EM Dividend
Fund — Institutional Class(a) | | | 12.93 | % | | | 2,718,793 | |
| | | |
| | 41,790 | | | Forward Select Opportunity
Fund — Institutional Class(a) | | | 4.99 | % | | | 1,049,338 | |
| | | |
| | 65,256 | | | Forward Total MarketPlus
Fund — Class Z | | | 12.66 | % | | | 2,660,473 | |
| | |
| | | | Total Affiliated Investment Companies
(Cost $20,648,649) | | | | 21,071,869 | |
| | | |
| | | | Total Investments: 100.23%
(Cost $20,648,649) | | | | | | | 21,071,869 | |
| | |
| | | | Net Other Assets and Liabilities: (0.23)% | | | | (48,281 | ) |
| | | |
| | | | Net Assets: 100.00% | | | | | | $ | 21,023,588 | |
Percentages are stated as a percent of net assets.
(a) Forward Commodity Long/Short Strategy Fund, Forward Credit Analysis Long/Short Fund, Forward Dynamic Income Fund, Forward EM Corporate Debt Fund, Forward International Dividend Fund, Forward International Real Estate Fund, Forward Real Estate Fund, Forward Select EM Dividend Fund and Forward Select Opportunity Fund’s June 30, 2015 Semi-Annual Report may be obtained at www.forwardinvesting.com.
(b) Non-income producing security.
| | | | |
| June 30, 2015 | | 36 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward Growth Allocation Fund
| | | | | | | | | | | | |
| Shares | | | | | Allocation | | | Value
(Note 2) | |
|
| | Affiliated Investment Companies: 99.78% | |
| | 35,100 | | | Forward Commodity Long/Short Strategy Fund — Class Z(a)(b) | | | 2.51 | % | | $ | 661,984 | |
| | | |
| | 52,077 | | | Forward Credit Analysis Long/Short
Fund — Institutional Class(a) | | | 1.45 | % | | | 382,765 | |
| | | |
| | 51,967 | | | Forward Dynamic Income
Fund — Institutional Class(a) | | | 5.04 | % | | | 1,329,326 | |
| | | |
| | 90,374 | | | Forward EM Corporate Debt
Fund — Institutional Class(a) | | | 2.91 | % | | | 769,081 | |
| | | |
| | 87,795 | | | Forward Frontier Strategy Fund — Class Z | | | 3.27 | % | | | 862,142 | |
| | | |
| | 21,724 | | | Forward High Yield Bond Fund — Class Z | | | 0.80 | % | | | 210,291 | |
| | | |
| | 1,130,293 | | | Forward International Dividend
Fund — Institutional Class(a) | | | 31.38 | % | | | 8,285,050 | |
| | | |
| | 68,923 | | | Forward International Real Estate
Fund — Institutional Class(a) | | | 4.00 | % | | | 1,056,584 | |
| | | |
| | 239,842 | | | Forward Investment Grade Fixed-Income Fund — Class Z | | | 9.91 | % | | | 2,616,675 | |
| | | |
| | 62,100 | | | Forward Real Estate
Fund — Institutional Class(a) | | | 3.41 | % | | | 899,832 | |
| | | |
| | 207,066 | | | Forward Select EM Dividend
Fund — Institutional Class(a) | | | 15.28 | % | | | 4,033,638 | |
| | | |
| | 52,785 | | | Forward Select Opportunity
Fund — Institutional Class(a) | | | 5.02 | % | | | 1,325,422 | |
| | | |
| | 95,850 | | | Forward Total MarketPlus Fund — Class Z | | | 14.80 | % | | | 3,907,809 | |
| | |
| | | | Total Affiliated Investment Companies
(Cost $25,952,009) | | | | 26,340,599 | |
| | |
| | | | Total Investments: 99.78%
(Cost $25,952,009) | | | | 26,340,599 | |
| | |
| | | | Net Other Assets and Liabilities: 0.22% | | | | 58,337 | |
| | | |
| | | | Net Assets: 100.00% | | | | | | $ | 26,398,936 | |
Percentages are stated as a percent of net assets.
(a) Forward Commodity Long/Short Strategy Fund, Forward Credit Analysis Long/Short Fund, Forward Dynamic Income Fund, Forward EM Corporate Debt Fund, Forward International Dividend Fund, Forward International Real Estate Fund, Forward Real Estate Fund, Forward Select EM Dividend Fund and Forward Select Opportunity Fund’s June 30, 2015 Semi-Annual Report may be obtained at www.forwardinvesting.com.
(b) Non-income producing security.
| | | | |
| See Notes to Financial Statements | | 37 | | June 30, 2015 |
Portfolio of Investments (Note 10) (Unaudited)
Forward Income & Growth Allocation Fund
| | | | | | | | | | | | |
| Shares | | | | | Allocation | | | Value
(Note 2) | |
| |
| | Affiliated Investment Companies: 99.78% | | | | | |
| | 7,356 | | | Forward Commodity Long/Short Strategy
Fund — Class Z(a)(b) | | | 5.01 | % | | $ | 138,733 | |
| | | |
| | 22,911 | | | Forward Credit Analysis Long/Short
Fund — Institutional Class(a) | | | 6.08 | % | | | 168,399 | |
| | | |
| | 4,786 | | | Forward Dynamic Income
Fund — Institutional Class(a) | | | 4.42 | % | | | 122,432 | |
| | | |
| | 35,207 | | | Forward EM Corporate Debt
Fund — Institutional Class(a) | | | 10.82 | % | | | 299,608 | |
| | | |
| | 15,417 | | | Forward Emerging Markets
Fund — Institutional Class(a) | | | 5.83 | % | | | 161,262 | |
| | | |
| | 1,470 | | | Forward Frontier Strategy
Fund — Class Z | | | 0.52 | % | | | 14,436 | |
| | | |
| | 8,591 | | | Forward High Yield Bond
Fund — Class Z | | | 3.00 | % | | | 83,160 | |
| | | |
| | 48,853 | | | Forward International Dividend
Fund — Institutional Class(a) | | | 12.93 | % | | | 358,095 | |
| | | |
| | 3,301 | | | Forward International Real Estate
Fund — Institutional Class(a) | | | 1.83 | % | | | 50,603 | |
| | | |
| | 90,622 | | | Forward Investment Grade Fixed-Income
Fund — Class Z | | | 35.71 | % | | | 988,681 | |
| | | |
| | 5,864 | | | Forward Real Estate
Fund — Institutional Class(a) | | | 3.07 | % | | | 84,968 | |
| | | |
| | 4,641 | | | Forward Select Opportunity
Fund — Institutional Class(a) | | | 4.21 | % | | | 116,544 | |
| | | |
| | 4,310 | | | Forward Total MarketPlus Fund — Class Z | | | 6.35 | % | | | 175,721 | |
| | |
| | | | Total Affiliated Investment Companies
(Cost $2,618,279) | | | | 2,762,642 | |
| | | |
| | | | Total Investments: 99.78%
(Cost $2,618,279) | | | | | | | 2,762,642 | |
| | |
| | | | Net Other Assets and Liabilities: 0.22% | | | | 6,210 | |
| | | |
| | | | Net Assets: 100.00% | | | | | | $ | 2,768,852 | |
Percentages are stated as a percent of net assets.
(a) Forward Commodity Long/Short Strategy Fund, Forward Credit Analysis Long/Short Fund, Forward Dynamic Income Fund, Forward EM Corporate Debt Fund, Forward Emerging Markets Fund, Forward International Dividend Fund, Forward International Real Estate Fund, Forward Real Estate Fund and Forward Select Opportunity Fund’s June 30, 2015 Semi-Annual Report may be obtained at www.forwardinvesting.com.
(b) Non-income producing security.
| | | | |
| June 30, 2015 | | 38 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward Income Builder Fund
| | | | | | | | | | | | |
| Shares | | | | | Allocation | | | Value
(Note 2) | |
|
| | Affiliated Investment Companies: 98.64% | |
| | 423,815 | | | Forward EM Corporate Debt
Fund — Institutional Class(a) | | | 24.48 | % | | $ | 3,606,666 | |
| | | |
| | 224,412 | | | Forward High Yield Bond
Fund — Class Z | | | 14.75 | % | | | 2,172,309 | |
| | | |
| | 494,193 | | | Forward International Dividend
Fund — Institutional Class(a) | | | 24.59 | % | | | 3,622,434 | |
| | | |
| | 77,753 | | | Forward Select EM Dividend
Fund — Institutional Class(a) | | | 10.28 | % | | | 1,514,628 | |
| | | |
| | 144,342 | | | Forward Select Income
Fund — Institutional Class(a) | | | 24.54 | % | | | 3,615,775 | |
| | |
| | | | Total Affiliated Investment Companies
(Cost $14,944,864) | | | | 14,531,812 | |
| | |
| | | | Total Investments: 98.64%
(Cost $14,944,864) | | | | 14,531,812 | |
| | |
| | | | Net Other Assets and Liabilities: 1.36% | | | | 201,053 | |
| | |
| | | | Net Assets: 100.00% | | | $ | 14,732,865 | |
Percentages are stated as a percent of net assets.
(a) Forward EM Corporate Debt Fund, Forward International Dividend Fund, Forward Select EM Dividend Fund and Forward Select Income Fund’s June 30, 2015 Semi-Annual Report may be obtained at www.forwardinvesting.com.
| | | | |
| See Notes to Financial Statements | | 39 | | June 30, 2015 |
Portfolio of Investments (Note 10) (Unaudited)
Forward Multi-Strategy Fund
| | | | | | | | | | | | |
| Shares | | | | | Allocation | | | Value
(Note 2) | |
|
| | Affiliated Investment Companies: 99.51% | |
| | 9,500 | | | Forward Commodity Long/Short Strategy Fund — Class Z(a)(b) | | | 1.28 | % | | $ | 179,165 | |
| | | |
| | 82,539 | | | Forward Dynamic Income
Fund — Institutional Class(a) | | | 15.15 | % | | | 2,111,341 | |
| | | |
| | 57,292 | | | Forward EM Corporate Debt
Fund — Institutional Class(a) | | | 3.50 | % | | | 487,554 | |
| | | |
| | 228,842 | | | Forward Emerging Markets
Fund — Institutional Class(a) | | | 17.17 | % | | | 2,393,686 | |
| | | |
| | 56,321 | | | Forward Frontier Strategy Fund — Class Z | | | 3.97 | % | | | 553,072 | |
| | | |
| | 17,623 | | | Forward Global Infrastructure
Fund — Institutional Class(a) | | | 3.00 | % | | | 418,010 | |
| | | |
| | 231,514 | | | Forward International Dividend
Fund — Institutional Class(a) | | | 12.17 | % | | | 1,696,997 | |
| | | |
| | 25,919 | | | Forward International Real Estate
Fund — Institutional Class(a) | | | 2.85 | % | | | 397,342 | |
| | | |
| | 52,806 | | | Forward Real Estate Long/Short
Fund — Institutional Class(a) | | | 12.74 | % | | | 1,775,347 | |
| | | |
| | 31,086 | | | Forward Select Income
Fund — Institutional Class(a) | | | 5.59 | % | | | 778,703 | |
| | | |
| | 32,098 | | | Forward Select Opportunity
Fund — Institutional Class(a) | | | 5.78 | % | | | 805,978 | |
| | | |
| | 80,513 | | | Forward Tactical Enhanced
Fund — Institutional Class(a) | | | 13.17 | % | | | 1,835,691 | |
| | | |
| | 17,117 | | | Forward Tactical Growth
Fund — Institutional Class(a) | | | 3.14 | % | | | 437,847 | |
| | |
| | | | Total Affiliated Investment Companies
(Cost $13,973,409) | | | | 13,870,733 | |
| | |
| | | | Total Investments: 99.51%
(Cost $13,973,409) | | | | 13,870,733 | |
| | |
| | | | Net Other Assets and Liabilities: 0.49% | | | | 68,645 | |
| | |
| | | | Net Assets: 100.00% | | | $ | 13,939,378 | |
Percentages are stated as a percent of net assets.
(a) Forward Commodity Long/Short Strategy Fund, Forward Dynamic Income Fund, Forward EM Corporate Debt Fund, Forward Emerging Markets Fund, Forward Global Infrastructure Fund, Forward International Dividend Fund, Forward International Real Estate Fund, Forward Real Estate Long/Short Fund, Forward Select Income Fund, Forward Select Opportunity Fund, Forward Tactical Enhanced Fund and Forward Tactical Growth Fund’s June 30, 2015 Semi-Annual Report may be obtained at www.forwardinvesting.com.
(b) Non-income producing security.
| | | | |
| June 30, 2015 | | 40 | | 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 | | $ | 82,789,968 | | | $ | 125,225,024 | | | $ | 10,678,045 | |
Cash | | | 22,765,035 | | | | 2,706,840 | | | | 530,448 | |
Deposit with broker for swap contracts | | | 12,850,000 | | | | — | | | | — | |
Unrealized gain on swap contracts | | | 27,044 | | | | — | | | | — | |
Receivable for investments sold | | | 5,217 | | | | 126,500 | | | | — | |
Receivable for shares sold | | | 99,293 | | | | 445,452 | | | | — | |
Receivable due from advisor | | | — | | | | — | | | | 1,486 | |
Interest and dividends receivable | | | 408,514 | | | | 2,348,919 | | | | — | |
Other assets | | | 22,894 | | | | 31,556 | | | | 12,878 | |
| | | | | | | | | | | | |
Total Assets | | | 118,967,965 | | | | 130,884,291 | | | | 11,222,857 | |
| | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | |
Unrealized loss on swap contracts | | | 5,554,046 | | | | — | | | | — | |
Payable for swap contract payments | | | 640,291 | | | | — | | | | — | |
Payable for investments purchased | | | — | | | | 125,000 | | | | — | |
Payable for shares redeemed | | | 192,073 | | | | 186,478 | | | | 14,623 | |
Payable to advisor | | | 55,849 | | | | 55,929 | | | | — | |
Payable for distribution and service fees | | | 12,154 | | | | 31,643 | | | | 493 | |
Payable to trustees | | | 284 | | | | 274 | | | | 371 | |
Payable for chief compliance officer fee | | | 826 | | | | 772 | | | | 89 | |
Payable for legal and audit fees | | | 25,100 | | | | 21,908 | | | | 14,870 | |
Accrued expenses and other liabilities | | | 44,689 | | | | 27,173 | | | | 6,081 | |
| | | | | | | | | | | | |
Total Liabilities | | | 6,525,312 | | | | 449,177 | | | | 36,527 | |
| | | | | | | | | | | | |
Net Assets | | $ | 112,442,653 | | | $ | 130,435,114 | | | $ | 11,186,330 | |
| | | | | | | | | | | | |
Net Assets Consist of: | | | | | | | | | | | | |
Paid-in capital | | $ | 129,385,530 | | | $ | 134,540,805 | | | $ | 26,844,796 | |
Accumulated net investment income | | | 103,411 | | | | 128,298 | | | | 25,727 | |
Accumulated net realized loss on investments, written options contracts, futures contracts and swap contracts | | | (11,558,583 | ) | | | (2,127,084 | ) | | | (15,607,711 | ) |
Net unrealized depreciation on investments and swap contracts | | | (5,487,705 | ) | | | (2,106,905 | ) | | | (76,482 | ) |
| | | | | | | | | | | | |
Total Net Assets | | $ | 112,442,653 | | | $ | 130,435,114 | | | $ | 11,186,330 | |
| | | | | | | | | | | | |
Investments, At Cost | | $ | 82,750,671 | | | $ | 127,331,929 | | | $ | 10,754,527 | |
| | | |
Pricing of Shares | | | | | | | | | | | | |
Investor Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $9.72 | | | | $9.73 | | | | $10.94 | |
Net Assets | | $ | 12,021,152 | | | $ | 58,378,735 | | | $ | 939,511 | |
Shares of beneficial interest outstanding | | | 1,236,908 | | | | 6,001,583 | | | | 85,859 | |
Institutional Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $9.78 | | | | $9.70 | | | | $10.93 | |
Net Assets | | $ | 96,828,392 | | | $ | 68,298,166 | | | $ | 812,802 | |
Shares of beneficial interest outstanding | | | 9,902,540 | | | | 7,042,906 | | | | 74,376 | |
Class C: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | — | | | | $9.70 | | | | — | |
Net Assets | | | — | | | $ | 859,256 | | | | — | |
Shares of beneficial interest outstanding | | | — | | | | 88,626 | | | | — | |
| | | | |
| See Notes to Financial Statements | | 41 | | June 30, 2015 |
Statement of Assets and Liabilities (Unaudited)
| | | | | | | | | | | | |
| | | Forward
Frontier
Strategy
Fund
(continued) | | | Forward
High
Yield
Bond
Fund
(continued) | | | Forward
Investment
Grade
Fixed-
Income
Fund
(continued) | |
Advisor Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $9.79 | | | | — | | | | — | |
Net Assets | | $ | 1,409,983 | | | | — | | | | — | |
Shares of beneficial interest outstanding | | | 143,987 | | | | — | | | | — | |
Class Z: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $9.82 | | | | $9.68 | | | | $10.91 | |
Net Assets | | $ | 2,183,126 | | | $ | 2,898,957 | | | $ | 9,434,017 | |
Shares of beneficial interest outstanding | | | 222,202 | | | | 299,466 | | | | 864,823 | |
| | | | |
| June 30, 2015 | | 42 | | 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 | | $ | 16,091,417 | | | $ | — | |
Repurchase agreements, at value | | | — | | | | 71,000,000 | |
Cash | | | 7,248,304 | | | | 673,095 | |
Unrealized gain on swap contracts | | | 188,648 | | | | — | |
Receivable for investments sold | | | 17,296 | | | | — | |
Receivable for shares sold | | | 100,092 | | | | — | |
Receivable due from advisor | | | — | | | | 4,614 | |
Interest and dividends receivable | | | 7,765 | | | | 1,654 | |
Other assets | | | 12,469 | | | | 5,250 | |
| | | | | | | | |
Total Assets | | | 23,665,991 | | | | 71,684,613 | |
| | | | | | | | |
Liabilities: | | | | | | | | |
Unrealized loss on swap contracts | | | 35,569 | | | | — | |
Payable for swap contract payments | | | 29,095 | | | | — | |
Payable for shares redeemed | | | 15,190 | | | | — | |
Payable for fund distribution | | | — | | | | 570 | |
Payable to advisor | | | 3,254 | | | | — | |
Payable for distribution and service fees | | | 2,364 | | | | 205 | |
Payable to trustees | | | 45 | | | | 195 | |
Payable for chief compliance officer fee | | | 153 | | | | 499 | |
Payable for legal and audit fees | | | 20,232 | | | | 7,323 | |
Accrued expenses and other liabilities | | | 12,211 | | | | 12,904 | |
| | | | | | | | |
Total Liabilities | | | 118,113 | | | | 21,696 | |
| | | | | | | | |
Net Assets | | $ | 23,547,878 | | | $ | 71,662,917 | |
| | | | | | | | |
Net Assets Consist of: | | | | | | | | |
Paid-in capital | | $ | 19,405,678 | | | $ | 71,660,449 | |
Accumulated net investment loss | | | (11,885 | ) | | | — | |
Accumulated net realized gain on investments and swap contracts | | | 3,918,198 | | | | 2,468 | |
Net unrealized appreciation on investments and swap contracts | | | 235,887 | | | | — | |
| | | | | | | | |
Total Net Assets | | $ | 23,547,878 | | | $ | 71,662,917 | |
| | | | | | | | |
Investments, At Cost | | $ | 16,008,609 | | | $ | — | |
| | |
Repurchase Agreements, At Cost | | $ | — | | | $ | 71,000,000 | |
| | |
Pricing of Shares | | | | | | | | |
Investor Class: | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $37.62 | | | | $1.00 | |
Net Assets | | $ | 1,892,070 | | | $ | 4,482,299 | |
Shares of beneficial interest outstanding | | | 50,292 | | | | 4,481,797 | |
Institutional Class: | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $40.57 | | | | $1.00 | |
Net Assets | | $ | 14,068,892 | | | $ | 67,180,618 | |
Shares of beneficial interest outstanding | | | 346,746 | | | | 67,179,541 | |
Class Z: | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $40.77 | | | | — | |
Net Assets | | $ | 7,586,916 | | | | — | |
Shares of beneficial interest outstanding | | | 186,084 | | | | — | |
| | | | |
| See Notes to Financial Statements | | 43 | | June 30, 2015 |
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 | | $ | 9,068,004 | | | $ | 21,071,869 | | | $ | 26,340,599 | |
Cash | | | 74,412 | | | | 56,040 | | | | 61,234 | |
Receivable for shares sold | | | 1,425 | | | | 27,864 | | | | 1,826 | |
Other assets | | | 20,029 | | | | 21,765 | | | | 21,226 | |
| | | | | | | | | | | | |
Total Assets | | | 9,163,870 | | | | 21,177,538 | | | | 26,424,885 | |
| | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | |
Payable for shares redeemed | | | 4,777 | | | | 128,760 | | | | — | |
Payable for distribution and service fees | | | 5,019 | | | | 10,352 | | | | 9,807 | |
Payable for chief compliance officer fee | | | 68 | | | | 128 | | | | 153 | |
Payable for legal and audit fees | | | 9,948 | | | | 10,033 | | | | 10,010 | |
Accrued expenses and other liabilities | | | 2,802 | | | | 4,677 | | | | 5,979 | |
| | | | | | | | | | | | |
Total Liabilities | | | 22,614 | | | | 153,950 | | | | 25,949 | |
| | | | | | | | | | | | |
Net Assets | | $ | 9,141,256 | | | $ | 21,023,588 | | | $ | 26,398,936 | |
| | | | | | | | | | | | |
Net Assets Consist of: | | | | | | | | | | | | |
Paid-in capital | | $ | 11,524,984 | | | $ | 26,182,884 | | | $ | 33,265,128 | |
Accumulated net investment loss | | | (1,914 | ) | | | (3,011 | ) | | | (2,877 | ) |
Accumulated net realized loss on investments | | | (2,693,919 | ) | | | (5,579,505 | ) | | | (7,251,905 | ) |
Net unrealized appreciation on investments | | | 312,105 | | | | 423,220 | | | | 388,590 | |
| | | | | | | | | | | | |
Total Net Assets | | $ | 9,141,256 | | | $ | 21,023,588 | | | $ | 26,398,936 | |
| | | | | | | | | | | | |
Investments in Affiliates, At Cost | | $ | 8,755,899 | | | $ | 20,648,649 | | | $ | 25,952,009 | |
| | | |
Pricing of Shares | | | | | | | | | | | | |
Investor Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $14.64 | | | | $14.94 | | | | $14.18 | |
Net Assets | | $ | 1,138,395 | | | $ | 3,535,014 | | | $ | 2,492,516 | |
Shares of beneficial interest outstanding | | | 77,754 | | | | 236,537 | | | | 175,737 | |
Institutional Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $14.67 | | | | $14.96 | | | | $14.18 | |
Net Assets | | $ | 1,237,336 | | | $ | 3,346,261 | | | $ | 10,833,135 | |
Shares of beneficial interest outstanding | | | 84,345 | | | | 223,639 | | | | 763,731 | |
Class A: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $14.64 | | | | $14.92 | | | | $14.18 | |
Net Assets | | $ | 3,256,807 | | | $ | 7,128,318 | | | $ | 6,490,241 | |
Shares of beneficial interest outstanding | | | 222,428 | | | | 477,924 | | | | 457,770 | |
Maximum offering price per share (NAV/0.9425, based on maximum sales charge of 5.75% of the offering price) | | | $15.53 | | | | $15.83 | | | | $15.05 | |
Class C: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $14.60 | | | | $14.92 | | | | $14.05 | |
Net Assets | | $ | 3,508,718 | | | $ | 7,013,995 | | | $ | 6,583,044 | |
Shares of beneficial interest outstanding | | | 240,293 | | | | 470,227 | | | | 468,449 | |
| | | | |
| June 30, 2015 | | 44 | | See Notes to Financial Statements |
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 | | $ | 2,762,642 | | | $ | 14,531,812 | | | $ | 13,870,733 | |
Cash | | | 25,232 | | | | 277,118 | | | | 75,109 | |
Receivable for shares sold | | | — | | | | 1,950 | | | | 941 | |
Receivable due from advisor | | | — | | | | 2,647 | | | | 2,917 | |
Other assets | | | 14,026 | | | | 18,659 | | | | 20,280 | |
| | | | | | | | | | | | |
Total Assets | | | 2,801,900 | | | | 14,832,186 | | | | 13,969,980 | |
| | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | |
Payable for shares redeemed | | | 23,461 | | | | 77,518 | | | | 13,632 | |
Payable for distribution and service fees | | | 2,056 | | | | 7,448 | | | | 3,599 | |
Payable for chief compliance officer fee | | | 18 | | | | 92 | | | | 73 | |
Payable for legal and audit fees | | | 5,477 | | | | 9,796 | | | | 9,695 | |
Accrued expenses and other liabilities | | | 2,036 | | | | 4,467 | | | | 3,603 | |
| | | | | | | | | | | | |
Total Liabilities | | | 33,048 | | | | 99,321 | | | | 30,602 | |
| | | | | | | | | | | | |
Net Assets | | $ | 2,768,852 | | | $ | 14,732,865 | | | $ | 13,939,378 | |
| | | | | | | | | | | | |
Net Assets Consist of: | | | | | | | | | | | | |
Paid-in capital | | $ | 2,505,164 | | | $ | 15,535,257 | | | $ | 17,451,686 | |
Accumulated net investment income/(loss) | | | (4,995 | ) | | | (1,969 | ) | | | 10,171 | |
Accumulated net realized gain/(loss) on investments | | | 124,320 | | | | (387,371 | ) | | | (3,419,803 | ) |
Net unrealized appreciation/(depreciation) on investments | | | 144,363 | | | | (413,052 | ) | | | (102,676 | ) |
| | | | | | | | | | | | |
Total Net Assets | | $ | 2,768,852 | | | $ | 14,732,865 | | | $ | 13,939,378 | |
| | | | | | | | | | | | |
Investments in Affiliates, at Cost | | $ | 2,618,279 | | | $ | 14,944,864 | | | $ | 13,973,409 | |
| | | |
Pricing of Shares | | | | | | | | | | | | |
Investor Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $10.89 | | | | $14.39 | | | | $14.08 | |
Net Assets | | $ | 379,739 | | | $ | 2,066,507 | | | $ | 863,800 | |
Shares of beneficial interest outstanding | | | 34,861 | | | | 143,641 | | | | 61,359 | |
Institutional Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $10.92 | | | | $14.41 | | | | $14.60 | |
Net Assets | | $ | 595,598 | | | $ | 3,886,040 | | | $ | 8,965,135 | |
Shares of beneficial interest outstanding | | | 54,520 | | | | 269,605 | | | | 614,053 | |
Class A: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $10.89 | | | | $14.40 | | | | $14.37 | |
Net Assets | | $ | 650,268 | | | $ | 1,850,873 | | | $ | 2,683,608 | |
Shares of beneficial interest outstanding | | | 59,697 | | | | 128,518 | | | | 186,700 | |
Maximum offering price per share | | | $11.55 | (a) | | | $14.96 | (b) | | | $15.25 | (a) |
Class C: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $10.80 | | | | $14.33 | | | | $13.67 | |
Net Assets | | $ | 1,143,247 | | | $ | 6,929,445 | | | $ | 1,426,835 | |
Shares of beneficial interest outstanding | | | 105,879 | | | | 483,689 | | | | 104,378 | |
(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)
| | | | |
| See Notes to Financial Statements | | 45 | | June 30, 2015 |
Statement of Operations
For the Six Months Ended June 30, 2015 (Unaudited)
| | | | | | | | | | | | |
| | | Forward
Frontier
Strategy
Fund | | | Forward
High
Yield
Bond
Fund | | | Forward
Investment
Grade
Fixed-
Income
Fund | |
Investment Income: | | | | | | | | | | | | |
Interest | | $ | 580,253 | | | $ | 4,734,864 | | | $ | 21,961 | |
Dividends | | | 88,989 | | | | — | | | | 208,399 | |
| | | | | | | | | | | | |
Total Investment Income | | | 669,242 | | | | 4,734,864 | | | | 230,360 | |
| | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | |
Investment advisory fee | | | 468,734 | | | | 201,196 | | | | 28,568 | |
Investment sub-advisory fee | | | — | | | | 145,267 | | | | — | |
Administration fee | | | 43,121 | | | | 44,793 | | | | 9,571 | |
Custodian fee | | | 2,168 | | | | 3,388 | | | | 1,697 | |
Legal and audit fees | | | 30,506 | | | | 28,938 | | | | 16,709 | |
Transfer agent fee | | | 44,897 | | | | 19,419 | | | | 3,702 | |
Trustees’ fees and expenses | | | 7,226 | | | | 10,684 | | | | 1,490 | |
Registration/filing fees | | | 19,996 | | | | 21,950 | | | | 13,516 | |
Reports to shareholder and printing fees | | | 18,499 | | | | 12,209 | | | | 7,001 | |
Distribution and service fees | | | | | | | | | | | | |
Investor Class | | | 28,190 | | | | 154,244 | | | | 29,193 | |
Institutional Class | | | 46,088 | | | | 36,098 | | | | 539 | |
Class C | | | — | | | | 4,371 | | | | — | |
Advisor Class | | | 776 | | | | — | | | | — | |
Chief compliance officer fee | | | 3,819 | | | | 4,775 | | | | 821 | |
Other | | | 7,777 | | | | 5,430 | | | | 1,263 | |
| | | | | | | | | | | | |
Total expenses before waiver | | | 721,797 | | | | 692,762 | | | | 114,070 | |
Less fees waived/reimbursed by investment advisor (Note 3) | | | (155,966 | ) | | | — | | | | (17,017 | ) |
| | | | | | | | | | | | |
Total Net Expenses | | | 565,831 | | | | 692,762 | | | | 97,053 | |
| | | | | | | | | | | | |
Net Investment Income: | | | 103,411 | | | | 4,042,102 | | | | 133,307 | |
| | | | | | | | | | | | |
Net realized gain/(loss) on investments | | | 140,422 | | | | (1,619,217 | ) | | | (284,421 | ) |
Net realized loss on swap contracts | | | (6,071,389 | ) | | | — | | | | — | |
Net change in unrealized appreciation/(depreciation) on investments | | | (125,543 | ) | | | 1,967,426 | | | | (38,232 | ) |
Net change in unrealized appreciation on swap contracts | | | 1,510,102 | | | | — | | | | — | |
| | | | | | | | | | | | |
Net Realized and Unrealized Gain/(Loss) on Investments and Swap Contracts | | | (4,546,408 | ) | | | 348,209 | | | | (322,653 | ) |
| | | | | | | | | | | | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | $ | (4,442,997 | ) | | $ | 4,390,311 | | | $ | (189,346 | ) |
| | | | | | | | | | | | |
| | | | |
| June 30, 2015 | | 46 | | See Notes to Financial Statements |
Statement of Operations
For the Six Months Ended June 30, 2015 (Unaudited)
| | | | | | | | |
| | | Forward
Total
MarketPlus
Fund | | | Forward
U.S.
Government
Money
Fund | |
Investment Income: | | | | | | | | |
Interest | | $ | 29,508 | | | $ | 135,465 | |
Dividends | | | 64,828 | | | | — | |
| | | | | | | | |
Total Investment Income | | | 94,336 | | | | 135,465 | |
| | | | | | | | |
Expenses: | | | | | | | | |
Investment advisory fee | | | 62,829 | | | | 44,218 | |
Administration fee | | | 18,225 | | | | 36,708 | |
Custodian fee | | | 270 | | | | 1,766 | |
Legal and audit fees | | | 20,772 | | | | 15,187 | |
Transfer agent fee | | | 7,849 | | | | 15,421 | |
Trustees’ fees and expenses | | | 1,868 | | | | 8,311 | |
Registration/filing fees | | | 12,626 | | | | 27,257 | |
Reports to shareholder and printing fees | | | 5,076 | | | | 7,158 | |
Distribution and service fees | | | | | | | | |
Investor Class | | | 4,750 | | | | 6,726 | |
Institutional Class | | | 7,227 | | | | — | |
Administrative services fees-Investor Class | | | — | | | | 6,726 | |
Chief compliance officer fee | | | 902 | | | | 3,977 | |
Other | | | 1,458 | | | | 3,682 | |
| | | | | | | | |
Total expenses before waiver | | | 143,852 | | | | 177,137 | |
Less fees waived/reimbursed by investment advisor (Note 3) | | | (37,631 | ) | | | (33,747 | ) |
Distribution and service fees-Investor Class | | | — | | | | (6,726 | ) |
Administrative services fees-Investor Class | | | — | | | | (6,726 | ) |
| | | | | | | | |
Total Net Expenses | | | 106,221 | | | | 129,938 | |
| | | | | | | | |
Net Investment Income/(Loss): | | | (11,885 | ) | | | 5,527 | |
| | | | | | | | |
Net realized gain/(loss) on investments | | | (607 | ) | | | 3,644 | |
Net realized gain on swap contracts | | | 3,532,594 | | | | — | |
Net change in unrealized appreciation on investments | | | 26,720 | | | | — | |
Net change in unrealized depreciation on swap contracts | | | (3,128,587 | ) | | | — | |
| | | | | | | | |
| Net Realized and Unrealized Gain on Investments and Swap Contracts | | | 430,120 | | | | 3,644 | |
| | | | | | | | |
| Net Increase in Net Assets Resulting From Operations | | $ | 418,235 | | | $ | 9,171 | |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 47 | | June 30, 2015 |
Statement of Operations
For the Six Months Ended June 30, 2015 (Unaudited)
| | | | | | | | | | | | |
| | | Forward
Balanced
Allocation
Fund | | | Forward
Growth &
Income
Allocation
Fund | | | Forward
Growth
Allocation
Fund | |
Investment Income: | | | | | | | | | | | | |
Interest | | $ | 22 | | | $ | 38 | | | $ | 52 | |
Dividends from affiliated investment company shares | | | 160,859 | | | | 387,378 | | | | 508,035 | |
| | | | | | | | | | | | |
Total Investment Income | | | 160,881 | | | | 387,416 | | | | 508,087 | |
| | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | |
Investment advisory fee | | | 4,950 | | | | 11,333 | | | | 14,081 | |
Administration fee | | | 4,739 | | | | 6,110 | | | | 6,714 | |
Custodian fee | | | 933 | | | | 573 | | | | 842 | |
Legal and audit fees | | | 10,960 | | | | 11,041 | | | | 11,021 | |
Transfer agent fee | | | 4,116 | | | | 9,390 | | | | 10,073 | |
Registration/filing fees | | | 18,980 | | | | 19,613 | | | | 19,044 | |
Reports to shareholder and printing fees | | | 2,690 | | | | 4,550 | | | | 4,838 | |
Distribution and service fees | | | | | | | | | | | | |
Investor Class | | | 3,043 | | | | 9,212 | | | | 6,636 | |
Class A | | | 6,132 | | | | 13,163 | | | | 12,798 | |
Class C | | | 19,106 | | | | 38,092 | | | | 35,859 | |
Chief compliance officer fee | | | 359 | | | | 794 | | | | 980 | |
Other | | | 1,403 | | | | 1,593 | | | | 1,765 | |
| | | | | | | | | | | | |
Total expenses before waiver | | | 77,411 | | | | 125,464 | | | | 124,651 | |
Less fees waived/reimbursed by investment advisor (Note 3) | | | (4,950 | ) | | | (11,333 | ) | | | (14,081 | ) |
| | | | | | | | | | | | |
Total Net Expenses | | | 72,461 | | | | 114,131 | | | | 110,570 | |
| | | | | | | | | | | | |
Net Investment Income: | | | 88,420 | | | | 273,285 | | | | 397,517 | |
| | | | | | | | | | | | |
Net realized loss on affiliated investments | | | (50,673 | ) | | | (465,859 | ) | | | (583,040 | ) |
Net change in unrealized appreciation/(depreciation) on affiliated investments | | | (109,732 | ) | | | 170,345 | | | | 409,791 | |
| | | | | | | | | | | | |
Net Realized and Unrealized Loss on Investments | | | (160,405 | ) | | | (295,514 | ) | | | (173,249 | ) |
| | | | | | | | | | | | |
Net Increase/(Decrease) in Net Assets Resulting From Operations | | $ | (71,985 | ) | | $ | (22,229 | ) | | $ | 224,268 | |
| | | | | | | | | | | | |
| | | | |
| June 30, 2015 | | 48 | | See Notes to Financial Statements |
Statement of Operations
For the Six Months Ended June 30, 2015 (Unaudited)
| | | | | | | | | | | | |
| | | Forward
Income &
Growth
Allocation
Fund | | | Forward
Income
Builder
Fund | | | Forward
Multi-
Strategy
Fund | |
Investment Income: | | | | | | | | | | | | |
Interest | | $ | 16 | | | $ | 96 | | | $ | 81 | |
Dividends from affiliated investment company shares | | | 45,243 | | | | 403,107 | | | | 256,404 | |
| | | | | | | | | | | | |
Total Investment Income | | | 45,259 | | | | 403,203 | | | | 256,485 | |
| | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | |
Investment advisory fee | | | 1,597 | | | | 7,799 | | | | 7,412 | |
Administration fee | | | 3,928 | | | | 5,224 | | | | 5,259 | |
Custodian fee | | | 365 | | | | 631 | | | | 200 | |
Legal and audit fees | | | 6,504 | | | | 10,825 | | | | 10,730 | |
Transfer agent fee | | | 1,625 | | | | 5,399 | | | | 5,258 | |
Registration/filing fees | | | 24,446 | | | | 26,017 | | | | 18,256 | |
Reports to shareholder and printing fees | | | 1,737 | | | | 3,461 | | | | 3,610 | |
Distribution and service fees | | | | | | | | | | | | |
Investor Class | | | 974 | | | | 5,560 | | | | 2,298 | |
Class A | | | 1,307 | | | | 2,368 | | | | 5,149 | |
Class C | | | 6,430 | | | | 36,792 | | | | 8,978 | |
Chief compliance officer fee | | | 112 | | | | 546 | | | | 508 | |
Other | | | 1,208 | | | | 1,334 | | | | 1,378 | |
| | | | | | | | | | | | |
Total expenses before waiver | | | 50,233 | | | | 105,956 | | | | 69,036 | |
Less fees waived/reimbursed by investment advisor (Note 3) | | | (1,597 | ) | | | (30,819 | ) | | | (23,706 | ) |
| | | | | | | | | | | | |
Total Net Expenses | | | 48,636 | | | | 75,137 | | | | 45,330 | |
| | | | | | | | | | | | |
Net Investment Income/(Loss): | | | (3,377 | ) | | | 328,066 | | | | 211,155 | |
| | | | | | | | | | | | |
Net realized gain/(loss) on affiliated investments | | | 42,152 | | | | (192,016 | ) | | | (131,688 | ) |
Net change in unrealized depreciation on affiliated investments | | | (94,348 | ) | | | (13,935 | ) | | | (172,773 | ) |
| | | | | | | | | | | | |
Net Realized and Unrealized Loss on Investments | | | (52,196 | ) | | | (205,951 | ) | | | (304,461 | ) |
| | | | | | | | | | | | |
Net Increase/(Decrease) in Net Assets Resulting From Operations | | $ | (55,573 | ) | | $ | 122,115 | | | $ | (93,306 | ) |
| | | | | | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 49 | | June 30, 2015 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Frontier Strategy Fund | |
| | | Six Months
Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Operations: | | | | | | | | |
Net investment income/(loss) | | $ | 103,411 | | | $ | (174,898 | ) |
Net realized gain on investments | | | 140,422 | | | | 65,059 | |
Net realized gain/(loss) on swap contracts | | | (6,071,389 | ) | | | 16,483,885 | |
Net change in unrealized appreciation/(depreciation) on investments and swap contracts | | | 1,384,559 | | | | (16,975,729 | ) |
| | | | | | | | |
Net decrease in net assets resulting from operations | | | (4,442,997 | ) | | | (601,683 | ) |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net realized gains on investments | | | | | | | | |
Investor Class | | | — | | | | (4,016,832 | ) |
Institutional Class | | | — | | | | (18,344,061 | ) |
Advisor Class | | | — | | | | (375,391 | ) |
Class Z | | | — | | | | (513,928 | ) |
| | | | | | | | |
Total distributions | | | — | | | | (23,250,212 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 3,880,989 | | | | 76,771,153 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 3,977,409 | |
Cost of shares redeemed | | | (9,405,776 | ) | | | (61,322,865 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (5,524,787 | ) | | | 19,425,697 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 21,162,894 | | | | 39,116,991 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 12,627,163 | |
Cost of shares redeemed | | | (5,935,289 | ) | | | (42,127,401 | ) |
| | | | | | | | |
Net increase from share transactions | | | 15,227,605 | | | | 9,616,753 | |
| | | | | | | | |
Advisor Class | | | | | | | | |
Proceeds from sale of shares | | | 102,061 | | | | 1,823,948 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 373,429 | |
Cost of shares redeemed | | | (690,092 | ) | | | (717,298 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (588,031 | ) | | | 1,480,079 | |
| | | | | | | | |
Class Z | | | | | | | | |
Proceeds from sale of shares | | | 975,000 | | | | 2,895,000 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 513,925 | |
Cost of shares redeemed | | | (1,525,000 | ) | | | (6,958,000 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (550,000 | ) | | | (3,549,075 | ) |
| | | | | | | | |
Net increase in net assets | | $ | 4,121,790 | | | $ | 3,121,559 | |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 108,320,863 | | | | 105,199,304 | |
| | | | | | | | |
End of period (including accumulated net investment income of $103,411 and $0, respectively) | | $ | 112,442,653 | | | $ | 108,320,863 | |
| | | | | | | | |
| | | | |
| June 30, 2015 | | 50 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Frontier Strategy Fund (continued) | |
| | | Six Months
Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Changes in Shares Outstanding: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 391,984 | | | | 5,595,238 | |
Distributions reinvested | | | — | | | | 373,631 | |
Redeemed | | | (950,684 | ) | | | (4,725,296 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (558,700 | ) | | | 1,243,573 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 2,130,528 | | | | 3,225,686 | |
Distributions reinvested | | | — | | | | 1,187,280 | |
Redeemed | | | (594,408 | ) | | | (3,690,142 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 1,536,120 | | | | 722,824 | |
| | | | | | | | |
Advisor Class | | | | | | | | |
Sold | | | 10,235 | | | | 129,563 | |
Distributions reinvested | | | — | | | | 35,213 | |
Redeemed | | | (69,172 | ) | | | (54,399 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (58,937 | ) | | | 110,377 | |
| | | | | | | | |
Class Z | | | | | | | | |
Sold | | | 95,855 | | | | 217,682 | |
Distributions reinvested | | | — | | | | 47,552 | |
Redeemed | | | (152,498 | ) | | | (509,692 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (56,643 | ) | | | (244,458 | ) |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 51 | | June 30, 2015 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward High Yield Bond Fund | |
| | | Six Months
Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Operations: | | | | | | | | |
Net investment income | | $ | 4,042,102 | | | $ | 6,707,382 | |
Net realized gain/(loss) on investments | | | (1,619,217 | ) | | | 3,449,195 | |
Net change in unrealized appreciation/(depreciation) on investments | | | 1,967,426 | | | | (7,828,872 | ) |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 4,390,311 | | | | 2,327,705 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (1,669,902 | ) | | | (2,502,858 | ) |
Institutional Class | | | (2,110,090 | ) | | | (3,961,537 | ) |
Class C | | | (21,638 | ) | | | (51,152 | ) |
Class Z | | | (112,174 | ) | | | (263,772 | ) |
From net realized gains on investments | | | | | | | | |
Investor Class | | | — | | | | (1,563,757 | ) |
Institutional Class | | | — | | | | (1,771,255 | ) |
Class C | | | — | | | | (26,274 | ) |
Class Z | | | — | | | | (73,891 | ) |
| | | | | | | | |
Total distributions | | | (3,913,804 | ) | | | 10,214,496 | |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 38,740,847 | | | | 56,696,218 | |
Issued to shareholders in reinvestment of distributions | | | 342,126 | | | | 2,037,836 | |
Cost of shares redeemed | | | (37,345,259 | ) | | | (60,760,603 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | 1,737,714 | | | | (2,026,549 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 47,722,048 | | | | 69,409,114 | |
Issued to shareholders in reinvestment of distributions | | | 1,519,211 | | | | 4,377,392 | |
Cost of shares redeemed | | | (45,229,598 | ) | | | (84,734,981 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | 4,011,661 | | | | (10,948,475 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 7,195 | | | | 140,632 | |
Issued to shareholders in reinvestment of distributions | | | 20,814 | | | | 69,972 | |
Cost of shares redeemed | | | (64,658 | ) | | | (516,928 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (36,649 | ) | | | (306,324 | ) |
| | | | | | | | |
Class Z | | | | | | | | |
Proceeds from sale of shares | | | 2,635,000 | | | | 6,065,000 | |
Cost of shares redeemed | | | (2,290,000 | ) | | | (15,261,387 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | 345,000 | | | | (9,196,387 | ) |
| | | | | | | | |
Net increase/(decrease) in net assets | | $ | 6,534,233 | | | $ | (30,364,526 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 123,900,881 | | | | 154,265,407 | |
| | | | | | | | |
End of period (including accumulated net investment income of $128,298 and $0, respectively) | | $ | 130,435,114 | | | $ | 123,900,881 | |
| | | | | | | | |
| | | | |
| June 30, 2015 | | 52 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward High Yield Bond Fund (continued) | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Changes in Shares Outstanding: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 3,974,013 | | | | 5,472,825 | |
Distributions reinvested | | | 34,985 | | | | 205,209 | |
Redeemed | | | (3,810,145 | ) | | | (5,855,006 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | 198,853 | | | | (176,972 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 4,891,988 | | | | 6,712,199 | |
Distributions reinvested | | | 155,702 | | | | 430,146 | |
Redeemed | | | (4,637,716 | ) | | | (8,189,766 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | 409,974 | | | | (1,047,421 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 732 | | | | 13,387 | |
Distributions reinvested | | | 2,136 | | | | 6,903 | |
Redeemed | | | (6,621 | ) | | | (49,786 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (3,753 | ) | | | (29,496 | ) |
| | | | | | | | |
Class Z | | | | | | | | |
Sold | | | 274,156 | | | | 580,803 | |
Redeemed | | | (234,939 | ) | | | (1,467,226 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | 39,217 | | | | (886,423 | ) |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 53 | | June 30, 2015 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Investment Grade Fixed-Income Fund | |
| | | Six Months
Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Operations: | | | | | | | | |
Net investment income | | $ | 133,307 | | | $ | 370,521 | |
Net realized loss on investments | | | (284,421 | ) | | | (6,388,136 | ) |
Net realized loss on written option contracts | | | — | | | | (5,814 | ) |
Net realized gain on futures contracts | | | — | | | | 62,561 | |
Net change in unrealized appreciation/(depreciation) on investments , written options contracts and futures contracts | | | (38,232 | ) | | | 6,981,315 | |
| | | | | | | | |
Net increase/(decrease) in net assets resulting from operations | | | (189,346 | ) | | | 1,020,447 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (26,805 | ) | | | (18,427 | ) |
Institutional Class | | | (9,382 | ) | | | (62,719 | ) |
Class Z | | | (91,533 | ) | | | (319,294 | ) |
| | | | | | | | |
Total distributions | | | (127,720 | ) | | | (400,440 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 34,975,321 | | | | 6,465 | |
Issued to shareholders in reinvestment of distributions | | | 6,596 | | | | 18,379 | |
Cost of shares redeemed | | | (35,047,804 | ) | | | (279,439 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (65,887 | ) | | | (254,595 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 31,778 | | | | 106,711 | |
Issued to shareholders in reinvestment of distributions | | | 8,582 | | | | 59,779 | |
Cost of shares redeemed | | | (494,239 | ) | | | (5,829,817 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (453,879 | ) | | | (5,663,327 | ) |
| | | | | | | | |
Class Z | | | | | | | | |
Proceeds from sale of shares | | | 1,150,000 | | | | 7,542,000 | |
Cost of shares redeemed | | | (1,570,000 | ) | | | (15,883,000 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (420,000 | ) | | | (8,341,000 | ) |
| | | | | | | | |
Net decrease in net assets | | $ | (1,256,832 | ) | | $ | (13,638,915 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 12,443,162 | | | | 26,082,077 | |
| | | | | | | | |
End of period (including accumulated net investment income of $25,727 and $20,140, respectively) | | $ | 11,186,330 | | | $ | 12,443,162 | |
| | | | | | | | |
Changes in Shares Outstanding: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 3,113,968 | | | | 584 | |
Distributions reinvested | | | 587 | | | | 1,662 | |
Redeemed | | | (3,125,315 | ) | | | (25,223 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (10,760 | ) | | | (22,977 | ) |
| | | | | | | | |
| | | | |
| June 30, 2015 | | 54 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Investment Grade Fixed-Income Fund
(continued) | |
| | | Six Months
Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Institutional Class | | | | | | | | |
Sold | | | 2,903 | | | | 9,602 | |
Distributions reinvested | | | 775 | | | | 5,396 | |
Redeemed | | | (44,551 | ) | | | (525,250 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (40,873 | ) | | | (510,252 | ) |
| | | | | | | | |
Class Z | | | | | | | | |
Sold | | | 102,858 | | | | 679,312 | |
Redeemed | | | (141,471 | ) | | | (1,434,988 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (38,613 | ) | | | (755,676 | ) |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 55 | | June 30, 2015 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Total MarketPlus Fund | |
| | | Six Months
Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
| Operations: | |
Net investment loss | | $ | (11,885 | ) | | $ | (22,185 | ) |
Net realized loss on investments | | | (607 | ) | | | (13,872 | ) |
Net realized gain on swap contracts | | | 3,532,594 | | | | 7,094,911 | |
Long-term capital gain distributions from other investment companies | | | — | | | | 11,282 | |
Net change in unrealized depreciation on investments and swap contracts | | | (3,101,867 | ) | | | (4,046,802 | ) |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 418,235 | | | | 3,023,334 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net realized gains on investments | | | | | | | | |
Investor Class | | | — | | | | (93,262 | ) |
Institutional Class | | | — | | | | (667,762 | ) |
Class Z | | | — | | | | (510,702 | ) |
| | | | | | | | |
Total distributions | | | — | | | | (1,271,726 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 185,146 | | | | 549,393 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 88,333 | |
Cost of shares redeemed | | | (300,604 | ) | | | (575,261 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (115,458 | ) | | | 62,465 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 203,363 | | | | 176,717 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 468,645 | |
Cost of shares redeemed | | | (1,494,778 | ) | | | (8,384,097 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (1,291,415 | ) | | | (7,738,735 | ) |
| | | | | | | | |
Class Z | | | | | | | | |
Proceeds from sale of shares | | | 1,750,000 | | | | 9,950,000 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 510,702 | |
Cost of shares redeemed | | | (6,060,000 | ) | | | (16,665,000 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (4,310,000 | ) | | | (6,204,298 | ) |
| | | | | | | | |
Net decrease in net assets | | $ | (5,298,638 | ) | | $ | (12,128,960 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 28,846,516 | | | | 40,975,476 | |
| | | | | | | | |
End of period (including accumulated net investment loss of $(11,885) and $0, respectively) | | $ | 23,547,878 | | | $ | 28,846,516 | |
| | | | | | | | |
Changes in Shares Outstanding: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 4,882 | | | | 14,610 | |
Distributions reinvested | | | — | | | | 2,391 | |
Redeemed | | | (7,900 | ) | | | (15,971 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (3,018 | ) | | | 1,030 | |
| | | | | | | | |
| | | | |
| June 30, 2015 | | 56 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Total MarketPlus Fund (continued) | |
| | | Six Months
Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Institutional Class | | | | | | | | |
Sold | | | 4,969 | | | | 4,547 | |
Distributions reinvested | | | — | | | | 11,790 | |
Redeemed | | | (37,160 | ) | | | (216,070 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (32,191 | ) | | | (199,733 | ) |
| | | | | | | | |
Class Z | | | | | | | | |
Sold | | | 42,339 | | | | 245,670 | |
Distributions reinvested | | | — | | | | 12,793 | |
Redeemed | | | (149,408 | ) | | | (432,263 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (107,069 | ) | | | (173,800 | ) |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 57 | | June 30, 2015 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward U.S. Government Money Fund | |
| | | Six Months
Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014(a) | |
| Operations: | |
Net investment income | | $ | 5,527 | | | $ | 9,157 | |
Net realized gain on investments | | | 3,644 | | | | — | |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 9,171 | | | | 9,157 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (269 | ) | | | (127 | ) |
Institutional Class | | | (5,258 | ) | | | (8,431 | ) |
Class A | | | — | | | | (137 | ) |
Class C | | | — | | | | (185 | ) |
Class Z | | | — | | | | (277 | ) |
| | | | | | | | |
Total distributions | | | (5,527 | ) | | | (9,157 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 6,311,879 | | | | 3,241,676 | |
Issued to shareholders in reinvestment of distributions | | | 200 | | | | 85 | |
Cost of shares redeemed | | | (5,649,346 | ) | | | (488,125 | ) |
| | | | | | | | |
Net increase from share transactions | | | 662,733 | | | | 2,753,636 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 32,122,209 | | | | 98,242,189 | |
Issued to shareholders in reinvestment of distributions | | | 594 | | | | 404 | |
Cost of shares redeemed | | | (82,753,923 | ) | | | (49,569,248 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (50,631,120 | ) | | | 48,673,345 | |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | — | | | | 533,902 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 132 | |
Cost of shares redeemed | | | — | | | | (2,063,604 | ) |
| | | | | | | | |
Net decrease from share transactions | | | — | | | | (1,529,570 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | — | | | | 225,656 | |
Issued to shareholders in reinvestment of distributions | | | — | | | | 185 | |
Cost of shares redeemed | | | — | | | | (2,623,689 | ) |
| | | | | | | | |
Net decrease from share transactions | | | — | | | | (2,397,848 | ) |
| | | | | | | | |
Class Z | | | | | | | | |
Proceeds from sale of shares | | | — | | | | 1,000,000 | |
Cost of shares redeemed | | | — | | | | (3,620,803 | ) |
| | | | | | | | |
Net decrease from share transactions | | | — | | | | (2,620,803 | ) |
| | | | | | | | |
Net increase/(decrease) in net assets | | $ | (49,964,743 | ) | | $ | 44,878,760 | |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 121,627,660 | | | | 76,748,900 | |
| | | | | | | | |
End of period (including accumulated net investment income of $0 and $0, respectively) | | $ | 71,662,917 | | | $ | 121,627,660 | |
| | | | | | | | |
| | | | |
| June 30, 2015 | | 58 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward U.S. Government Money Fund
(continued) | |
| | | Six Months
Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014(a) | |
Changes in Shares Outstanding: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 6,311,879 | | | | 3,242,094 | |
Distributions reinvested | | | 200 | | | | 85 | |
Redeemed | | | (5,649,346 | ) | | | (488,125 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 662,733 | | | | 2,754,054 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 32,122,209 | | | | 98,242,296 | |
Distributions reinvested | | | 594 | | | | 404 | |
Redeemed | | | (82,753,923 | ) | | | (49,569,248 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (50,631,120 | ) | | | 48,673,452 | |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | — | | | | 533,902 | |
Distributions reinvested | | | — | | | | 132 | |
Redeemed | | | — | | | | (2,063,925 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | — | | | | (1,529,891 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | — | | | | 225,656 | |
Distributions reinvested | | | — | | | | 185 | |
Redeemed | | | — | | | | (2,623,787 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | — | | | | (2,397,946 | ) |
| | | | | | | | |
Class Z | | | | | | | | |
Sold | | | — | | | | 1,000,000 | |
Redeemed | | | — | | | | (3,621,051 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | — | | | | (2,621,051 | ) |
| | | | | | | | |
(a) Effective December 15, 2014 Class A and Class C shares of the Forward U.S. Government Money Fund were terminated and converted to Investor Class shares and Class Z shares were terminated and converted to Institutional Class shares.
| | | | |
| See Notes to Financial Statements | | 59 | | June 30, 2015 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Balanced Allocation Fund | |
| | | Six Months
Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Operations: | | | | | | | | |
Net investment income | | $ | 88,420 | | | $ | 612,260 | |
Net realized gain/(loss) on investments transactions and gain distributions of affiliated investment companies | | | (50,673 | ) | | | 779,767 | |
Long-term capital gain distributions from affiliated investment companies | | | — | | | | 130,099 | |
Net change in unrealized depreciation on affiliated investment companies and investments | | | (109,732 | ) | | | (1,049,168 | ) |
| | | | | | | | |
Net increase/(decrease) in net assets resulting from operations | | | (71,985 | ) | | | 472,958 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (14,369 | ) | | | (64,894 | ) |
Institutional Class | | | (18,321 | ) | | | (266,190 | ) |
Class A | | | (44,806 | ) | | | (139,604 | ) |
Class C | | | (38,838 | ) | | | (137,069 | ) |
| | | | | | | | |
Total distributions | | | (116,334 | ) | | | (607,757 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 35,763 | | | | 138,194 | |
Issued to shareholders in reinvestment of distributions | | | 14,357 | | | | 64,823 | |
Cost of shares redeemed | | | (305,407 | ) | | | (1,380,929 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (255,287 | ) | | | (1,177,912 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 59,614 | | | | 472,576 | |
Issued to shareholders in reinvestment of distributions | | | 18,486 | | | | 261,732 | |
Cost of shares redeemed | | | (886,038 | ) | | | (14,722,770 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (807,938 | ) | | | (13,988,462 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | 28,297 | | | | 162,182 | |
Issued to shareholders in reinvestment of distributions | | | 43,262 | | | | 135,496 | |
Cost of shares redeemed | | | (513,389 | ) | | | (1,328,015 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (441,830 | ) | | | (1,030,337 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 45,358 | | | | 246,206 | |
Issued to shareholders in reinvestment of distributions | | | 37,569 | | | | 121,812 | |
Cost of shares redeemed | | | (596,206 | ) | | | (2,837,097 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (513,279 | ) | | | (2,469,079 | ) |
| | | | | | | | |
Net decrease in net assets | | $ | (2,206,653 | ) | | $ | (18,800,589 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 11,347,909 | | | | 30,148,498 | |
| | | | | | | | |
End of period (including accumulated net investment income/(loss) of $(1,914) and $26,000, respectively) | | $ | 9,141,256 | | | $ | 11,347,909 | |
| | | | | | | | |
| | | | |
| June 30, 2015 | | 60 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Balanced Allocation Fund
(continued) | |
| | | Six Months
Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Changes in Shares Outstanding: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 2,380 | | | | 8,901 | |
Distributions reinvested | | | 962 | | | | 4,230 | |
Redeemed | | | (20,301 | ) | | | (88,705 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (16,959 | ) | | | (75,574 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 3,989 | | | | 30,593 | |
Distributions reinvested | | | 1,236 | | | | 17,027 | |
Redeemed | | | (59,134 | ) | | | (953,224 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (53,909 | ) | | | (905,604 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | 1,885 | | | | 10,550 | |
Distributions reinvested | | | 2,899 | | | | 8,858 | |
Redeemed | | | (34,271 | ) | | | (86,387 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (29,487 | ) | | | (66,979 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 3,046 | | | | 15,985 | |
Distributions reinvested | | | 2,525 | | | | 7,983 | |
Redeemed | | | (39,826 | ) | | | (183,301 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (34,255 | ) | | | (159,333 | ) |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 61 | | June 30, 2015 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Growth & Income Allocation Fund | |
| | | Six Months
Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
| Operations: | |
Net investment income | | $ | 273,285 | | | $ | 1,024,603 | |
Net realized gain/(loss) on investments transactions and gain distributions of affiliated investment companies | | | (465,859 | ) | | | 457,275 | |
Long-term capital gain distributions from affiliated investment companies | | | — | | | | 334,532 | |
Net change in unrealized appreciation/(depreciation) on affiliated investment companies and investments | | | 170,345 | | | | (1,487,749 | ) |
| | | | | | | | |
Net increase/(decrease) in net assets resulting from operations | | | (22,229 | ) | | | 328,661 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (50,582 | ) | | | (144,051 | ) |
Institutional Class | | | (61,135 | ) | | | (280,228 | ) |
Class A | | | (108,069 | ) | | | (326,359 | ) |
Class C | | | (84,340 | ) | | | (288,053 | ) |
| | | | | | | | |
Total distributions | | | (304,126 | ) | | | (1,038,691 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 294,476 | | | | 519,821 | |
Issued to shareholders in reinvestment of distributions | | | 50,444 | | | | 143,886 | |
Cost of shares redeemed | | | (450,563 | ) | | | (712,800 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (105,643 | ) | | | (49,093 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 208,727 | | | | 204,406 | |
Issued to shareholders in reinvestment of distributions | | | 61,135 | | | | 268,829 | |
Cost of shares redeemed | | | (1,250,851 | ) | | | (7,502,946 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (980,989 | ) | | | (7,029,711 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | 199,437 | | | | 490,788 | |
Issued to shareholders in reinvestment of distributions | | | 107,746 | | | | 325,512 | |
Cost of shares redeemed | | | (796,752 | ) | | | (2,084,157 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (489,569 | ) | | | (1,267,857 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 87,832 | | | | 426,805 | |
Issued to shareholders in reinvestment of distributions | | | 83,959 | | | | 282,626 | |
Cost of shares redeemed | | | (1,099,258 | ) | | | (2,784,158 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (927,467 | ) | | | (2,074,727 | ) |
| | | | | | | | |
Net decrease in net assets | | $ | (2,830,023 | ) | | $ | (11,131,418 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 23,853,611 | | | | 34,985,029 | |
| | | | | | | | |
End of period (including accumulated net investment income/(loss) of $(3,011) and $27,830, respectively) | | $ | 21,023,588 | | | $ | 23,853,611 | |
| | | | | | | | |
| | | | |
| June 30, 2015 | | 62 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Growth & Income Allocation Fund
(continued) | |
| | | Six Months
Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | |
| Changes in Shares Outstanding: | | | | | | | | |
| Investor Class | | | | | | | | |
Sold | | | 19,164 | | | | 32,496 | |
Distributions reinvested | | | 3,336 | | | | 9,227 | |
Redeemed | | | (29,280 | ) | | | (44,984 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (6,780 | ) | | | (3,261 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 13,568 | | | | 12,805 | |
Distributions reinvested | | | 4,036 | | | | 17,157 | |
Redeemed | | | (81,585 | ) | | | (469,538 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (63,981 | ) | | | (439,576 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | 13,090 | | | | 31,015 | |
Distributions reinvested | | | 7,138 | | | | 20,904 | |
Redeemed | | | (52,165 | ) | | | (131,649 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (31,937 | ) | | | (79,730 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 5,759 | | | | 26,747 | |
Distributions reinvested | | | 5,562 | | | | 18,177 | |
Redeemed | | | (72,025 | ) | | | (175,160 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (60,704 | ) | | | (130,236 | ) |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 63 | | June 30, 2015 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Growth Allocation Fund | |
| | | Six Months
Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
| Operations: | |
Net investment income | | $ | 397,517 | | | $ | 1,484,097 | |
Net realized gain/(loss) on investments transactions and gain distributions of affiliated investment companies | | | (583,040 | ) | | | 650,991 | |
Long-term capital gain distributions from affiliated investment companies | | | — | | | | 490,808 | |
Net change in unrealized appreciation/(depreciation) on affiliated investment companies and investments | | | 409,791 | | | | (2,153,517 | ) |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 224,268 | | | | 472,379 | |
| | | | | | | | |
| Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (40,397 | ) | | | (125,802 | ) |
Institutional Class | | | (199,427 | ) | | | (655,327 | ) |
Class A | | | (114,594 | ) | | | (379,977 | ) |
Class C | | | (93,391 | ) | | | (323,367 | ) |
| | | | | | | | |
Total distributions | | | (447,809 | ) | | | (1,484,473 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 294,494 | | | | 320,405 | |
Issued to shareholders in reinvestment of distributions | | | 40,322 | | | | 125,358 | |
Cost of shares redeemed | | | (648,346 | ) | | | (847,312 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (313,530 | ) | | | (401,549 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 215,526 | | | | 863,573 | |
Issued to shareholders in reinvestment of distributions | | | 195,220 | | | | 469,641 | |
Cost of shares redeemed | | | (638,565 | ) | | | (8,015,489 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (227,819 | ) | | | (6,682,275 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | 121,721 | | | | 477,194 | |
Issued to shareholders in reinvestment of distributions | | | 114,197 | | | | 378,590 | |
Cost of shares redeemed | | | (1,638,753 | ) | | | (2,671,566 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (1,402,835 | ) | | | (1,815,782 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 117,944 | | | | 249,081 | |
Issued to shareholders in reinvestment of distributions | | | 92,308 | | | | 302,187 | |
Cost of shares redeemed | | | (1,150,215 | ) | | | (3,598,567 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (939,963 | ) | | | (3,047,299 | ) |
| | | | | | | | |
Net decrease in net assets | | $ | (3,107,688 | ) | | $ | (12,958,999 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 29,506,624 | | | | 42,465,623 | |
| | | | | | | | |
End of period (including accumulated net investment income/(loss) of $(2,877) and $47,415, respectively) | | $ | 26,398,936 | | | $ | 29,506,624 | |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 64 | | June 30, 2015 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Growth Allocation Fund (continued) | |
| | | Six Months
Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Changes in Shares Outstanding: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 20,143 | | | | 21,751 | |
Distributions reinvested | | | 2,812 | | | | 8,496 | |
Redeemed | | | (44,546 | ) | | | (55,844 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (21,591 | ) | | | (25,597 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 14,758 | | | | 56,643 | |
Distributions reinvested | | | 13,610 | | | | 31,907 | |
Redeemed | | | (44,110 | ) | | | (529,739 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (15,742 | ) | | | (441,189 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | 8,358 | | | | 31,535 | |
Distributions reinvested | | | 7,967 | | | | 25,628 | |
Redeemed | | | (112,419 | ) | | | (178,173 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (96,094 | ) | | | (121,010 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 8,146 | | | | 16,784 | |
Distributions reinvested | | | 6,497 | | | | 20,677 | |
Redeemed | | | (79,728 | ) | | | (240,262 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (65,085 | ) | | | (202,801 | ) |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 65 | | June 30, 2015 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Income & Growth Allocation Fund | |
| | | Six Months
Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Operations: | | | | | | | | |
Net investment income/(loss) | | $ | (3,377 | ) | | $ | 210,748 | |
Net realized gain on investments transactions and gain distributions of affiliated investment companies | | | 42,152 | | | | 783,897 | |
Long-term capital gain distributions from affiliated investment companies | | | — | | | | 34,685 | |
Net change in unrealized depreciation on affiliated investment companies and investments | | | (94,348 | ) | | | (713,750 | ) |
| | | | | | | | |
Net increase/(decrease) in net assets resulting from operations | | | (55,573 | ) | | | 315,580 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (211 | ) | | | (13,917 | ) |
Institutional Class | | | (769 | ) | | | (149,913 | ) |
Class A | | | (501 | ) | | | (22,828 | ) |
Class C | | | (137 | ) | | | (34,639 | ) |
From net realized gains on investments | | | | | | | | |
Investor Class | | | — | | | | (103,612 | ) |
Institutional Class | | | — | | | | (271,225 | ) |
Class A | | | — | | | | (170,085 | ) |
Class C | �� | | — | | | | (301,664 | ) |
| | | | | | | | |
Total distributions | | | (1,618 | ) | | | (1,067,883 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 5,015 | | | | 511,928 | |
Issued to shareholders in reinvestment of distributions | | | 209 | | | | 115,009 | |
Cost of shares redeemed | | | (24,057 | ) | | | (773,325 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (18,833 | ) | | | (146,388 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 8,470 | | | | 508,915 | |
Issued to shareholders in reinvestment of distributions | | | 356 | | | | 308,294 | |
Cost of shares redeemed | | | (606,249 | ) | | | (13,630,508 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (597,423 | ) | | | (12,813,299 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | 8,393 | | | | 41,174 | |
Issued to shareholders in reinvestment of distributions | | | 500 | | | | 192,913 | |
Cost of shares redeemed | | | (146,706 | ) | | | (253,676 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (137,813 | ) | | | (19,589 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 975 | | | | 21,512 | |
Issued to shareholders in reinvestment of distributions | | | 137 | | | | 335,325 | |
Cost of shares redeemed | | | (221,182 | ) | | | (670,848 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (220,070 | ) | | | (314,011 | ) |
| | | | | | | | |
Net decrease in net assets | | $ | (1,031,330 | ) | | $ | (14,045,590 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 3,800,182 | | | | 17,845,772 | |
| | | | | | | | |
End of period (including accumulated net investment loss of $(4,995) and $0, respectively) | | $ | 2,768,852 | | | $ | 3,800,182 | |
| | | | | | | | |
| | | | |
| June 30, 2015 | | 66 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Income & Growth Allocation Fund (continued) | |
| | | Six Months
Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Changes in Shares Outstanding: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 449 | | | | 35,210 | |
Distributions reinvested | | | 19 | | | | 10,053 | |
Redeemed | | | (2,149 | ) | | | (55,198 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (1,681 | ) | | | (9,935 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 760 | | | | 37,389 | |
Distributions reinvested | | | 32 | | | | 25,020 | |
Redeemed | | | (54,463 | ) | | | (951,907 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (53,671 | ) | | | (889,498 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | 756 | | | | 2,899 | |
Distributions reinvested | | | 45 | | | | 16,920 | |
Redeemed | | | (13,277 | ) | | | (17,886 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (12,476 | ) | | | 1,933 | |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 88 | | | | 1,513 | |
Distributions reinvested | | | 13 | | | | 29,691 | |
Redeemed | | | (20,173 | ) | | | (47,570 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (20,072 | ) | | | (16,366 | ) |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 67 | | June 30, 2015 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Income Builder Fund | |
| | | Six Months
Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Operations: | | | | | | | | |
Net investment income | | $ | 328,066 | | | $ | 846,479 | |
Net realized gain/(loss) on investments transactions and gain distributions of affiliated investment companies | | | (192,016 | ) | | | 378,010 | |
Long-term capital gain distributions from affiliated investment companies | | | — | | | | 212,179 | |
Net change in unrealized depreciation on affiliated investment companies | | | (13,935 | ) | | | (713,941 | ) |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 122,115 | | | | 722,727 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (48,218 | ) | | | (98,866 | ) |
Institutional Class | | | (97,846 | ) | | | (311,239 | ) |
Class A | | | (43,227 | ) | | | (93,398 | ) |
Class C | | | (140,744 | ) | | | (342,976 | ) |
From net realized gains on investments | | | | | | | | |
Investor Class | | | — | | | | (92,356 | ) |
Institutional Class | | | — | | | | (228,207 | ) |
Class A | | | — | | | | (94,572 | ) |
Class C | | | — | | | | (337,501 | ) |
| | | | | | | | |
Total distributions | | | (330,035 | ) | | | (1,599,115 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 421,448 | | | | 1,231,518 | |
Issued to shareholders in reinvestment of distributions | | | 47,805 | | | | 190,323 | |
Cost of shares redeemed | | | (699,698 | ) | | | (848,175 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (230,445 | ) | | | 573,666 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 694,429 | | | | 5,110,391 | |
Issued to shareholders in reinvestment of distributions | | | 97,846 | | | | 535,866 | |
Cost of shares redeemed | | | (1,229,591 | ) | | | (9,619,932 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (437,316 | ) | | | (3,973,675 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | 141,545 | | | | 1,255,180 | |
Issued to shareholders in reinvestment of distributions | | | 32,987 | | | | 170,596 | |
Cost of shares redeemed | | | (254,367 | ) | | | (2,168,738 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (79,835 | ) | | | (742,962 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 415,961 | | | | 1,935,159 | |
Issued to shareholders in reinvestment of distributions | | | 117,561 | | | | 580,227 | |
Cost of shares redeemed | | | (1,273,240 | ) | | | (1,291,133 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (739,718 | ) | | | 1,224,253 | |
| | | | | | | | |
Net decrease in net assets | | $ | (1,695,234 | ) | | $ | (3,795,106 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 16,428,099 | | | | 20,223,205 | |
| | | | | | | | |
End of period (including accumulated net investment loss of $(1,969) and $0, respectively) | | $ | 14,732,865 | | | $ | 16,428,099 | |
| | | | | | | | |
| | | | |
| June 30, 2015 | | 68 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Income Builder Fund (continued) | |
| | | Six Months
Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | |
Changes in Shares Outstanding: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 28,708 | | | | 79,427 | |
Distributions reinvested | | | 3,280 | | | | 12,604 | |
Redeemed | | | (47,680 | ) | | | (54,433 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (15,692 | ) | | | 37,598 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 47,144 | | | | 321,284 | |
Distributions reinvested | | | 6,696 | | | | 35,238 | |
Redeemed | | | (83,435 | ) | | | (615,278 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (29,595 | ) | | | (258,756 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | 9,597 | | | | 80,376 | |
Distributions reinvested | | | 2,261 | | | | 11,278 | |
Redeemed | | | (17,327 | ) | | | (141,202 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (5,469 | ) | | | (49,548 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 28,457 | | | | 123,830 | |
Distributions reinvested | | | 8,105 | | | | 38,632 | |
Redeemed | | | (87,124 | ) | | | (84,044 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (50,562 | ) | | | 78,418 | |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 69 | | June 30, 2015 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Multi-Strategy Fund | |
| | | Six Months
Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Operations: | | | | | | | | |
Net investment income | | $ | 211,155 | | | $ | 731,708 | |
Net realized gain/(loss) on investments transactions and gain distributions of affiliated investment companies | | | (131,688 | ) | | | 289,187 | |
Long-term capital gain distributions from affiliated investment companies | | | — | | | | 230,985 | |
Net change in unrealized depreciation on affiliated investment companies | | | (172,773 | ) | | | (378,182 | ) |
| | | | | | | | |
Net increase/(decrease) in net assets resulting from operations | | | (93,306 | ) | | | 873,698 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (13,534 | ) | | | (51,681 | ) |
Institutional Class | | | (154,128 | ) | | | (458,944 | ) |
Class A | | | (43,547 | ) | | | (142,917 | ) |
Class C | | | (20,370 | ) | | | (81,925 | ) |
| | | | | | | | |
Total distributions | | | (231,579 | ) | | | (735,467 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 3,198 | | | | 91,205 | |
Issued to shareholders in reinvestment of distributions | | | 13,488 | | | | 51,466 | |
Cost of shares redeemed | | | (75,306 | ) | | | (1,192,375 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (58,620 | ) | | | (1,049,704 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 57,362 | | | | 618,795 | |
Issued to shareholders in reinvestment of distributions | | | 153,231 | | | | 366,659 | |
Cost of shares redeemed | | | (337,196 | ) | | | (2,224,227 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (126,603 | ) | | | (1,238,773 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | 73,350 | | | | 99,192 | |
Issued to shareholders in reinvestment of distributions | | | 43,224 | | | | 142,917 | |
Cost of shares redeemed | | | (472,167 | ) | | | (676,123 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (355,593 | ) | | | (434,014 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 31,910 | | | | 63,593 | |
Issued to shareholders in reinvestment of distributions | | | 20,273 | | | | 81,421 | |
Cost of shares redeemed | | | (577,959 | ) | | | (594,592 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (525,776 | ) | | | (449,578 | ) |
| | | | | | | | |
Net decrease in net assets | | $ | (1,391,477 | ) | | $ | (3,033,838 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 15,330,855 | | | | 18,364,693 | |
| | | | | | | | |
End of period (including accumulated net investment income of $10,171 and $30,595, respectively) | | $ | 13,939,378 | | | $ | 15,330,855 | |
| | | | | | | | |
| | | | |
| June 30, 2015 | | 70 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Multi-Strategy Fund (continued) | |
| | | Six Months
Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Changes in Shares Outstanding: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 223 | | | | 6,184 | |
Distributions reinvested | | | 946 | | | | 3,518 | |
Redeemed | | | (5,154 | ) | | | (77,795 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (3,985 | ) | | | (68,093 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 3,832 | | | | 39,589 | |
Distributions reinvested | | | 10,361 | | | | 24,325 | |
Redeemed | | | (22,407 | ) | | | (142,846 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (8,214 | ) | | | (78,932 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | 4,950 | | | | 6,483 | |
Distributions reinvested | | | 2,969 | | | | 9,598 | |
Redeemed | | | (32,030 | ) | | | (43,906 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (24,111 | ) | | | (27,825 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 2,275 | | | | 4,371 | |
Distributions reinvested | | | 1,464 | | | | 5,760 | |
Redeemed | | | (40,900 | ) | | | (41,292 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (37,161 | ) | | | (31,161 | ) |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 71 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Frontier Strategy Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(a) | | | Year Ended
December 31,
2010(b) | |
Net Asset Value, Beginning of Period | | $ | 10.14 | | | $ | 11.91 | | | $ | 9.80 | | | $ | 9.87 | | | $ | 12.43 | | | $ | 11.32 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(c) | | | (0.00 | )(d)(e) | | | (0.04 | ) | | | (0.06 | ) | | | (0.06 | ) | | | 0.03 | | | | 0.04 | |
Net realized and unrealized gain/(loss) on investments | | | (0.42 | ) | | | 0.48 | | | | 2.28 | | | | 0.65 | | | | (2.57 | ) | | | 2.29 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.42 | ) | | | 0.44 | | | | 2.22 | | | | 0.59 | | | | (2.54 | ) | | | 2.33 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | — | | | | — | | | | (0.11 | ) | | | (0.66 | ) | | | — | | | | (1.09 | ) |
From capital gains | | | — | | | | (2.21 | ) | | | (0.00 | )(d) | | | — | | | | (0.02 | ) | | | (0.13 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (2.21 | ) | | | (0.11 | ) | | | (0.66 | ) | | | (0.02 | ) | | | (1.22 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.42 | ) | | | (1.77 | ) | | | 2.11 | | | | (0.07 | ) | | | (2.56 | ) | | | 1.11 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 9.72 | | | $ | 10.14 | | | $ | 11.91 | | | $ | 9.80 | | | $ | 9.87 | | | $ | 12.43 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | (4.14 | )%(f) | | | 3.07 | % | | | 22.64 | % | | | 5.98 | % | | | (20.40 | )% | | | 20.76 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 12,021 | | | $ | 18,201 | | | $ | 6,576 | | | $ | 2,829 | | | $ | 3,021 | | | $ | 4,267 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) including reimbursement/waiver | | | (0.10 | )%(g) | | | (0.33 | )% | | | (0.56 | )% | | | (0.55 | )% | | | 0.23 | % | | | 0.30 | % |
Operating expenses including reimbursement/waiver | | | 1.29 | %(g) | | | 1.29 | % | | | 1.34 | %(h) | | | 1.56 | %(i) | | | n/a | | | | n/a | |
Operating expenses excluding reimbursement/waiver | | | 1.57 | %(g) | | | 1.50 | % | | | 1.54 | % | | | 1.57 | % | | | 1.54 | % | | | 1.44 | % |
Portfolio Turnover Rate | | | 31 | %(f) | | | 133 | % | | | 57 | % | | | 69 | % | | | 116 | % | | | 50 | % |
(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) Per share amounts are based upon average shares outstanding.
(d) Amount represents less than $0.01 per share.
(e) 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.
(f) Not Annualized.
(g) Annualized.
(h) Effective May 1, 2013, the annual expense limitation rate changed from 1.49% to 1.29%.
(i) Effective June 8, 2012, the Advisor agreed to limit expenses at 1.49%.
| | | | |
| June 30, 2015 | | 72 | | 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, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(a) | | | Year Ended
December 31,
2010(b) | |
Net Asset Value, Beginning of Period | | $ | 10.18 | | | $ | 11.94 | | | $ | 9.82 | | | $ | 9.90 | | | $ | 12.43 | | | $ | 11.31 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(c) | | | 0.01 | | | | (0.01 | ) | | | (0.04 | ) | | | (0.03 | ) | | | 0.06 | | | | 0.04 | |
Net realized and unrealized gain/(loss) on investments | | | (0.41 | ) | | | 0.46 | | | | 2.29 | | | | 0.64 | | | | (2.57 | ) | | | 2.32 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.40 | ) | | | 0.45 | | | | 2.25 | | | | 0.61 | | | | (2.51 | ) | | | 2.36 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | — | | | | — | | | | (0.13 | ) | | | (0.69 | ) | | | — | | | | (1.11 | ) |
From capital gains | | | — | | | | (2.21 | ) | | | (0.00 | )(d) | | | — | | | | (0.02 | ) | | | (0.13 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (2.21 | ) | | | (0.13 | ) | | | (0.69 | ) | | | (0.02 | ) | | | (1.24 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.40 | ) | | | (1.76 | ) | | | 2.12 | | | | (0.08 | ) | | | (2.53 | ) | | | 1.12 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 9.78 | | | $ | 10.18 | | | $ | 11.94 | | | $ | 9.82 | | | $ | 9.90 | | | $ | 12.43 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | (3.93 | )%(e) | | | 3.14 | % | | | 22.94 | % | | | 6.15 | % | | | (20.16 | )% | | | 21.11 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 96,828 | | | $ | 85,199 | | | $ | 91,259 | | | $ | 56,305 | | | $ | 56,664 | | | $ | 65,985 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) including
reimbursement/waiver | | | 0.23 | %(f) | | | (0.06 | )% | | | (0.34 | )% | | | (0.26 | )% | | | 0.51 | % | | | 0.34 | % |
Operating expenses including reimbursement/waiver | | | 0.99 | %(f) | | | 0.99 | % | | | 1.05 | %(g) | | | 1.25 | %(h) | | | n/a | | | | n/a | |
Operating expenses excluding reimbursement/waiver | | | 1.27 | %(f) | | | 1.20 | % | | | 1.24 | % | | | 1.27 | % | | | 1.24 | % | | | 1.21 | % |
Portfolio Turnover Rate | | | 31 | %(e) | | | 133 | % | | | 57 | % | | | 69 | % | | | 116 | % | | | 50 | % |
(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) 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 annual expense limitation rate changed from 1.19% to 0.99%.
(h) Effective June 8, 2012, the Advisor agreed to limit expenses at 1.19%.
| | | | |
| See Notes to Financial Statements | | 73 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Frontier Strategy Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Advisor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013(a) | | | Year Ended
December 31,
2012 | | | Period Ended
December 31,
2011(b) | |
Net Asset Value, Beginning of Period | | $ | 10.20 | | | $ | 11.94 | | | $ | 9.82 | | | $ | 9.90 | | | $ | 12.39 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(c) | | | 0.01 | | | | (0.00 | )(d) | | | 0.02 | (e) | | | (0.02 | ) | | | 0.02 | |
Net realized and unrealized gain/(loss) on investments | | | (0.42 | ) | | | 0.47 | | | | 2.23 | | | | 0.63 | | | | (2.49 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.41 | ) | | | 0.47 | | | | 2.25 | | | | 0.61 | | | | (2.47 | ) |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
From investment income | | | — | | | | — | | | | (0.13 | ) | | | (0.69 | ) | | | — | |
From capital gains | | | — | | | | (2.21 | ) | | | (0.00 | )(d) | | | — | | | | (0.02 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (2.21 | ) | | | (0.13 | ) | | | (0.69 | ) | | | (0.02 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.41 | ) | | | (1.74 | ) | | | 2.12 | | | | (0.08 | ) | | | (2.49 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 9.79 | | | $ | 10.20 | | | $ | 11.94 | | | $ | 9.82 | | | $ | 9.90 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | (4.02 | )%(f) | | | 3.32 | % | | | 22.93 | % | | | 6.16 | % | | | (19.90 | )%(f) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 1,410 | | | $ | 2,069 | | | $ | 1,105 | | | $ | 9 | | | $ | 9 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) including reimbursement/waiver | | | 0.21 | %(g) | | | (0.03 | )% | | | 0.18 | % | | | (0.25 | )% | | | 0.30 | %(g) |
Operating expenses including reimbursement/waiver | | | 0.99 | %(g) | | | 0.99 | % | | | 0.99 | %(h) | | | 1.25 | %(i) | | | n/a | |
Operating expenses excluding reimbursement/waiver | | | 1.27 | %(g) | | | 1.21 | % | | | 1.24 | % | | | 1.26 | % | | | 1.25 | %(g) |
Portfolio Turnover Rate | | | 31 | %(f) | | | 133 | % | | | 57 | % | | | 69 | % | | | 116 | %(j) |
(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) Amount represents less than $0.01 per share.
(e) 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.
(f) Not Annualized.
(g) Annualized.
(h) Effective May 1, 2013, the annual expense limitation rate changed from 1.19% to 0.99%.
(i) Effective June 8, 2012, the Advisor agreed to limit expenses at 1.19%.
(j) Portfolio turnover rate is calculated at the Fund level and represents the year ended December 31, 2011.
| | | | |
| June 30, 2015 | | 74 | | 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, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(a) | | | Year Ended
December 31,
2010(b) | |
Net Asset Value, Beginning of Period | | $ | 10.23 | | | $ | 11.96 | | | $ | 9.84 | | | $ | 9.92 | | | $ | 12.43 | | | $ | 11.31 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(c) | | | 0.01 | | | | 0.00 | (d)(e) | | | (0.04 | ) | | | (0.01 | ) | | | 0.06 | | | | 0.08 | |
Net realized and unrealized gain/(loss) on investments | | | (0.42 | ) | | | 0.48 | | | | 2.30 | | | | 0.63 | | | | (2.55 | ) | | | 2.29 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.41 | ) | | | 0.48 | | | | 2.26 | | | | 0.62 | | | | (2.49 | ) | | | 2.37 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | — | | | | — | | | | (0.14 | ) | | | (0.70 | ) | | | — | | | | (1.12 | ) |
From capital gains | | | — | | | | (2.21 | ) | | | (0.00 | )(d) | | | — | | | | (0.02 | ) | | | (0.13 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (2.21 | ) | | | (0.14 | ) | | | (0.70 | ) | | | (0.02 | ) | | | (1.25 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.41 | ) | | | (1.73 | ) | | | 2.12 | | | | (0.08 | ) | | | (2.51 | ) | | | 1.12 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 9.82 | | | $ | 10.23 | | | $ | 11.96 | | | $ | 9.84 | | | $ | 9.92 | | | $ | 12.43 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | (4.01 | )%(f) | | | 3.40 | % | | | 23.03 | % | | | 6.25 | % | | | (20.00 | )% | | | 21.17 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 2,183 | | | $ | 2,852 | | | $ | 6,259 | | | $ | 5,586 | | | $ | 13,569 | | | $ | 70,578 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) including reimbursement/waiver | | | 0.30 | %(g) | | | 0.01 | % | | | (0.34 | )% | | | (0.10 | )% | | | 0.51 | % | | | 0.64 | % |
Operating expenses including reimbursement/waiver | | | 0.89 | %(g) | | | 0.89 | % | | | 0.96 | %(h) | | | 1.18 | %(i) | | | n/a | | | | n/a | |
Operating expenses excluding reimbursement/waiver | | | 1.17 | %(g) | | | 1.10 | % | | | 1.13 | % | | | 1.19 | % | | | 1.13 | % | | | 1.13 | % |
Portfolio Turnover Rate | | | 31 | %(f) | | | 133 | % | | | 57 | % | | | 69 | % | | | 116 | % | | | 50 | % |
(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) Per share amounts are based upon average shares outstanding.
(d) Amount represents less than $0.01 per share.
(e) 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.
(f) Not Annualized.
(g) Annualized.
(h) Effective May 1, 2013, the annual expense limitation rate changed from 1.09% to 0.89%.
(i) Effective June 8, 2012, the Advisor agreed to limit expenses at 1.09%.
| | | | |
| See Notes to Financial Statements | | 75 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward High Yield Bond Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(a) | |
Net Asset Value, Beginning of Period | | $ | 9.71 | | | $ | 10.35 | | | $ | 10.41 | | | $ | 9.73 | | | $ | 10.04 | | | $ | 9.53 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b) | | | 0.27 | | | | 0.52 | | | | 0.56 | | | | 0.63 | | | | 0.69 | | | | 0.76 | |
Net realized and unrealized gain/(loss) on investments | | | 0.01 | | | | (0.35 | ) | | | 0.07 | | | | 0.72 | | | | (0.33 | ) | | | 0.51 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.28 | | | | 0.17 | | | | 0.63 | | | | 1.35 | | | | 0.36 | | | | 1.27 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.26 | ) | | | (0.53 | ) | | | (0.56 | ) | | | (0.67 | ) | | | (0.67 | ) | | | (0.76 | ) |
From capital gains | | | — | | | | (0.28 | ) | | | (0.13 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.26 | ) | | | (0.81 | ) | | | (0.69 | ) | | | (0.67 | ) | | | (0.67 | ) | | | (0.76 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.02 | | | | (0.64 | ) | | | (0.06 | ) | | | 0.68 | | | | (0.31 | ) | | | 0.51 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 9.73 | | | $ | 9.71 | | | $ | 10.35 | | | $ | 10.41 | | | $ | 9.73 | | | $ | 10.04 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 2.94 | %(c) | | | 1.50 | % | | | 6.19 | % | | | 14.24 | % | | | 3.61 | % | | | 13.85 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 58,379 | | | $ | 56,326 | | | $ | 61,903 | | | $ | 25,482 | | | $ | 1,925 | | | $ | 8,105 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 5.60 | %(d) | | | 5.02 | % | | | 5.35 | % | | | 6.15 | % | | | 6.90 | % | | | 7.77 | % |
Operating expenses | | | 1.22 | %(d) | | | 1.23 | % | | | 1.21 | % | | | 1.22 | % | | | 1.28 | % | | | 1.37 | % |
Portfolio Turnover Rate | | | 104 | %(c) | | | 206 | % | | | 198 | % | | | 210 | % | | | 320 | % | | | 296 | % |
(a) Prior to May 1, 2010, the Forward High Yield Bond Fund was known as the Accessor High Yield Bond Fund.
(b) Per share amounts are based upon average shares outstanding.
(c) Not Annualized.
(d) Annualized.
| | | | |
| June 30, 2015 | | 76 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward High Yield Bond Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(a) | |
Net Asset Value, Beginning of Period | | $ | 9.67 | | | $ | 10.32 | | | $ | 10.38 | | | $ | 9.70 | | | $ | 10.03 | | | $ | 9.53 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b) | | | 0.29 | | | | 0.56 | | | | 0.60 | | | | 0.70 | | | | 0.73 | | | | 0.81 | |
Net realized and unrealized gain/(loss) on investments | | | 0.02 | | | | (0.36 | ) | | | 0.07 | | | | 0.68 | | | | (0.33 | ) | | | 0.50 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.31 | | | | 0.20 | | | | 0.67 | | | | 1.38 | | | | 0.40 | | | | 1.31 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.28 | ) | | | (0.57 | ) | | | (0.60 | ) | | | (0.70 | ) | | | (0.73 | ) | | | (0.81 | ) |
From capital gains | | | — | | | | (0.28 | ) | | | (0.13 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.28 | ) | | | (0.85 | ) | | | (0.73 | ) | | | (0.70 | ) | | | (0.73 | ) | | | (0.81 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.03 | | | | (0.65 | ) | | | (0.06 | ) | | | 0.68 | | | | (0.33 | ) | | | 0.50 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 9.70 | | | $ | 9.67 | | | $ | 10.32 | | | $ | 10.38 | | | $ | 9.70 | | | $ | 10.03 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 3.25 | %(c) | | | 1.81 | % | | | 6.62 | % | | | 14.71 | % | | | 4.06 | % | | | 14.31 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 68,298 | | | $ | 64,168 | | | $ | 79,283 | | | $ | 95,212 | | | $ | 97,719 | | | $ | 71,182 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 6.02 | %(d) | | | 5.41 | % | | | 5.76 | % | | | 6.88 | % | | | 7.30 | % | | | 8.29 | % |
Operating expenses | | | 0.82 | %(d) | | | 0.83 | % | | | 0.81 | % | | | 0.83 | % | | | 0.85 | % | | | 0.97 | % |
Portfolio Turnover Rate | | | 104 | %(c) | | | 206 | % | | | 198 | % | | | 210 | % | | | 320 | % | | | 296 | % |
(a) Prior to May 1, 2010, the Forward High Yield Bond Fund was known as the Accessor High Yield Bond Fund.
(b) Per share amounts are based upon average shares outstanding.
(c) Not Annualized.
(d) Annualized.
| | | | |
| See Notes to Financial Statements | | 77 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward High Yield Bond Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class C | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(a) | |
Net Asset Value, Beginning of Period | | $ | 9.67 | | | $ | 10.32 | | | $ | 10.38 | | | $ | 9.70 | | | $ | 10.03 | | | $ | 9.52 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b) | | | 0.25 | | | | 0.47 | | | | 0.51 | | | | 0.60 | | | | 0.64 | | | | 0.72 | |
Net realized and unrealized gain/(loss) on investments | | | 0.02 | | | | (0.36 | ) | | | 0.06 | | | | 0.69 | | | | (0.33 | ) | | | 0.49 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.27 | | | | 0.11 | | | | 0.57 | | | | 1.29 | | | | 0.31 | | | | 1.21 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.24 | ) | | | (0.48 | ) | | | (0.50 | ) | | | (0.61 | ) | | | (0.64 | ) | | | (0.70 | ) |
From capital gains | | | — | | | | (0.28 | ) | | | (0.13 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.24 | ) | | | (0.76 | ) | | | (0.63 | ) | | | (0.61 | ) | | | (0.64 | ) | | | (0.70 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.03 | | | | (0.65 | ) | | | (0.06 | ) | | | 0.68 | | | | (0.33 | ) | | | 0.51 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 9.70 | | | $ | 9.67 | | | $ | 10.32 | | | $ | 10.38 | | | $ | 9.70 | | | $ | 10.03 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(c) | | | 2.81 | %(d) | | | 0.89 | % | | | 5.67 | % | | | 13.69 | % | | | 3.13 | % | | | 13.18 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 859 | | | $ | 894 | | | $ | 1,258 | | | $ | 1,241 | | | $ | 1,029 | | | $ | 950 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 5.10 | %(e) | | | 4.51 | % | | | 4.85 | % | | | 5.96 | % | | | 6.40 | % | | | 7.37 | % |
Operating expenses | | | 1.72 | %(e) | | | 1.73 | % | | | 1.71 | % | | | 1.73 | % | | | 1.76 | % | | | 1.87 | % |
Portfolio Turnover Rate | | | 104 | %(d) | | | 206 | % | | | 198 | % | | | 210 | % | | | 320 | % | | | 296 | % |
(a) Prior to May 1, 2010, the Forward High Yield Bond Fund Class C was known as the Accessor High Yield Bond Fund C Class.
(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.
| | | | |
| June 30, 2015 | | 78 | | 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, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(a) | |
Net Asset Value, Beginning of Period | | $ | 9.66 | | | $ | 10.31 | | | $ | 10.37 | | | $ | 9.69 | | | $ | 10.02 | | | $ | 9.53 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b) | | | 0.29 | | | | 0.58 | | | | 0.62 | | | | 0.71 | | | | 0.74 | | | | 0.82 | |
Net realized and unrealized gain/(loss) on investments | | | 0.02 | | | | (0.37 | ) | | | 0.06 | | | | 0.69 | | | | (0.33 | ) | | | 0.49 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.31 | | | | 0.21 | | | | 0.68 | | | | 1.40 | | | | 0.41 | | | | 1.31 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.29 | ) | | | (0.58 | ) | | | (0.61 | ) | | | (0.72 | ) | | | (0.74 | ) | | | (0.82 | ) |
From capital gains | | | — | | | | (0.28 | ) | | | (0.13 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.29 | ) | | | (0.86 | ) | | | (0.74 | ) | | | (0.72 | ) | | | (0.74 | ) | | | (0.82 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.02 | | | | (0.65 | ) | | | (0.06 | ) | | | 0.68 | | | | (0.33 | ) | | | 0.49 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 9.68 | | | $ | 9.66 | | | $ | 10.31 | | | $ | 10.37 | | | $ | 9.69 | | | $ | 10.02 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 3.20 | %(c) | | | 1.92 | % | | | 6.74 | % | | | 14.84 | % | | | 4.16 | % | | | 14.34 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 2,899 | | | $ | 2,513 | | | $ | 11,821 | | | $ | 15,184 | | | $ | 46,138 | | | $ | 27,913 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 6.09 | %(d) | | | 5.53 | % | | | 5.90 | % | | | 7.07 | % | | | 7.37 | % | | | 8.38 | % |
Operating expenses | | | 0.72 | %(d) | | | 0.73 | % | | | 0.71 | % | | | 0.73 | % | | | 0.75 | % | | | 0.87 | % |
Portfolio Turnover Rate | | | 104 | %(c) | | | 206 | % | | | 198 | % | | | 210 | % | | | 320 | % | | | 296 | % |
(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) Per share amounts are based upon average shares outstanding.
(c) Not Annualized.
(d) Annualized.
| | | | |
| See Notes to Financial Statements | | 79 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Investment Grade Fixed-Income Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(a) | |
Net Asset Value, Beginning of Period | | $ | 11.14 | | | $ | 10.85 | | | $ | 11.70 | | | $ | 11.30 | | | $ | 10.80 | | | $ | 10.40 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(b) | | | 0.06 | | | | 0.14 | | | | (0.05 | )(c) | | | 0.17 | | | | 0.38 | | | | 0.32 | |
Net realized and unrealized gain/(loss) on investments | | | (0.24 | ) | | | 0.32 | | | | (0.50 | ) | | | 0.53 | | | | 0.52 | | | | 0.46 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.18 | ) | | | 0.46 | | | | (0.55 | ) | | | 0.70 | | | | 0.90 | | | | 0.78 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.02 | ) | | | (0.17 | ) | | | (0.30 | ) | | | (0.30 | ) | | | (0.40 | ) | | | (0.38 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.02 | ) | | | (0.17 | ) | | | (0.30 | ) | | | (0.30 | ) | | | (0.40 | ) | | | (0.38 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.20 | ) | | | 0.29 | | | | (0.85 | ) | | | 0.40 | | | | 0.50 | | | | 0.40 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 10.94 | | | $ | 11.14 | | | $ | 10.85 | (d) | | $ | 11.70 | | | $ | 11.30 | | | $ | 10.80 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | (1.65 | )%(e) | | | 2.97 | % | | | (4.75 | )%(d) | | | 6.21 | % | | | 8.55 | % | | | 7.59 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 940 | | | $ | 1,077 | | | $ | 1,298 | | | $ | 2,781 | | | $ | 3,082 | | | $ | 3,150 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) including reimbursement/waiver | | | 1.12 | %(f) | | | 1.27 | % | | | (0.46 | )% | | | 1.48 | % | | | 3.41 | % | | | 2.95 | % |
Operating expenses including reimbursement/waiver | | | 1.03 | %(f) | | | 1.83 | %(g) | | | n/a | | | | n/a | | | | n/a | | | | n/a | |
Operating expenses excluding reimbursement/waiver | | | 1.04 | %(f) | | | 1.99 | % | | | 1.47 | % | | | 1.23 | % | | | 1.28 | % | | | 1.29 | % |
Portfolio Turnover Rate | | | 157 | %(e) | | | 314 | % | | | 222 | % | | | 149 | % | | | 157 | % | | | 133 | % |
(a) Prior to May 1, 2010, the Forward Investment Grade Fixed-Income Fund was known as the Accessor Investment Grade Fixed-Income Fund.
(b) Per share amounts are based upon average shares outstanding.
(c) 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.
(d) Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the total return based on the net asset value may differ from the net asset value and total return for shareholder transactions.
(e) Not Annualized.
(f) Annualized.
(g) Effective December 1, 2014, the Advisor agreed to limit expenses at 1.15%.
| | | | |
| June 30, 2015 | | 80 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Investment Grade Fixed-Income Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(a) | |
Net Asset Value, Beginning of Period | | $ | 11.18 | | | $ | 10.86 | | | $ | 11.70 | | | $ | 11.30 | | | $ | 10.80 | | | $ | 10.41 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b) | | | 0.06 | | | | 0.24 | | | | 0.03 | | | | 0.22 | | | | 0.40 | | | | 0.34 | |
Net realized and unrealized gain/(loss) on investments | | | (0.21 | ) | | | 0.28 | | | | (0.51 | ) | | | 0.52 | | | | 0.55 | | | | 0.49 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.15 | ) | | | 0.52 | | | | (0.48 | ) | | | 0.74 | | | | 0.95 | | | | 0.83 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.10 | ) | | | (0.20 | ) | | | (0.36 | ) | | | (0.34 | ) | | | (0.45 | ) | | | (0.44 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.10 | ) | | | (0.20 | ) | | | (0.36 | ) | | | (0.34 | ) | | | (0.45 | ) | | | (0.44 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.25 | ) | | | 0.32 | | | | (0.84 | ) | | | 0.40 | | | | 0.50 | | | | 0.39 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 10.93 | | | $ | 11.18 | | | $ | 10.86 | (c) | | $ | 11.70 | | | $ | 11.30 | | | $ | 10.80 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | (1.38 | )%(d) | | | 3.51 | % | | | (4.19 | )%(c) | | | 6.64 | % | | | 8.98 | % | | | 8.03 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 813 | | | $ | 1,288 | | | $ | 6,794 | | | $ | 9,563 | | | $ | 17,316 | | | $ | 12,220 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 1.10 | %(e) | | | 2.13 | % | | | 0.30 | % | | | 1.86 | % | | | 3.66 | % | | | 3.11 | % |
Operating expenses including reimbursement/waiver | | | 0.75 | %(e) | | | 1.33 | %(f) | | | n/a | | | | n/a | | | | n/a | | | | n/a | |
Operating expenses excluding reimbursement/waiver | | | 1.04 | %(e) | | | 1.41 | % | | | 1.06 | % | | | 0.83 | % | | | 0.88 | % | | | 0.91 | % |
Portfolio Turnover Rate | | | 157 | %(d) | | | 314 | % | | | 222 | % | | | 149 | % | | | 157 | % | | | 133 | % |
(a) Prior to May 1, 2010, the Forward Investment Grade Fixed-Income Fund was known as the Accessor Investment Grade Fixed-Income Fund.
(b) Per share amounts are based upon average shares outstanding.
(c) Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the total return based on the net asset value may differ from the net asset value and total return for shareholder transactions.
(d) Not Annualized.
(e) Annualized.
(f) Effective December 1, 2014, the Advisor agreed to limit expenses at 0.75%.
| | | | |
| See Notes to Financial Statements | | 81 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Investment Grade Fixed-Income Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class Z | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(a) | |
Net Asset Value, Beginning of Period | | $ | 11.16 | | | $ | 10.84 | | | $ | 11.68 | | | $ | 11.29 | | | $ | 10.79 | | | $ | 10.40 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b) | | | 0.07 | | | | 0.22 | | | | 0.04 | | | | 0.22 | | | | 0.42 | | | | 0.35 | |
Net realized and unrealized gain/(loss) on investments | | | (0.22 | ) | | | 0.31 | | | | (0.51 | ) | | | 0.52 | | | | 0.54 | | | | 0.49 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.15 | ) | | | 0.53 | | | | (0.47 | ) | | | 0.74 | | | | 0.96 | | | | 0.84 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.10 | ) | | | (0.21 | ) | | | (0.37 | ) | | | (0.35 | ) | | | (0.46 | ) | | | (0.45 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.10 | ) | | | (0.21 | ) | | | (0.37 | ) | | | (0.35 | ) | | | (0.46 | ) | | | (0.45 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.25 | ) | | | 0.32 | | | | (0.84 | ) | | | 0.39 | | | | 0.50 | | | | 0.39 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 10.91 | | | $ | 11.16 | | | $ | 10.84 | (c) | | $ | 11.68 | | | $ | 11.29 | | | $ | 10.79 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | (1.35 | )%(d) | | | 3.59 | % | | | (4.10 | )%(c) | | | 6.67 | % | | | 9.10 | % | | | 8.17 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 9,434 | | | $ | 10,078 | | | $ | 17,990 | | | $ | 35,860 | | | $ | 59,371 | | | $ | 88,997 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 1.23 | %(e) | | | 1.97 | % | | | 0.39 | % | | | 1.93 | % | | | 3.84 | % | | | 3.26 | % |
Operating expenses including reimbursement/waiver | | | 0.65 | %(e) | | | 1.31 | %(f) | | | n/a | | | | n/a | | | | n/a | | | | n/a | |
Operating expenses excluding reimbursement/waiver | | | 0.95 | %(e) | | | 1.42 | % | | | 0.96 | % | | | 0.73 | % | | | 0.77 | % | | | 0.80 | % |
Portfolio Turnover Rate | | | 157 | %(d) | | | 314 | % | | | 222 | % | | | 149 | % | | | 157 | % | | | 133 | % |
(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) Per share amounts are based upon average shares outstanding.
(c) Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the total return based on the net asset value may differ from the net asset value and total return for shareholder transactions.
(d) Not Annualized.
(e) Annualized.
(f) Effective December 1, 2014, the Advisor agreed to limit expenses at 0.65%.
| | | | |
| June 30, 2015 | | 82 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Total MarketPlus Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013(a) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(b) | | | Year Ended
December 31,
2010(c) | |
Net Asset Value, Beginning of Period | | $ | 37.07 | | | $ | 34.98 | | | $ | 26.74 | | | $ | 23.09 | | | $ | 24.50 | | | $ | 23.19 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(d) | | | (0.09 | ) | | | (0.16 | ) | | | (0.13 | ) | | | (0.14 | ) | | | 0.05 | | | | 0.06 | |
Net realized and unrealized gain/(loss) on investments | | | 0.64 | | | | 4.04 | | | | 8.37 | | | | 3.79 | | | | (1.35 | ) | | | 5.63 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.55 | | | | 3.88 | | | | 8.24 | | | | 3.65 | | | | (1.30 | ) | | | 5.69 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | — | | | | — | | | | — | | | | — | | | | — | | | | (4.38 | ) |
From capital gains | | | — | | | | (1.79 | ) | | | — | | | | — | | | | — | | | | — | |
Tax return of capital | | | — | | | | — | | | | — | | | | — | | | | (0.11 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (1.79 | ) | | | — | | | | — | | | | (0.11 | ) | | | (4.38 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.55 | | | | 2.09 | | | | 8.24 | | | | 3.65 | | | | (1.41 | ) | | | 1.31 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 37.62 | | | $ | 37.07 | | | $ | 34.98 | | | $ | 26.74 | | | $ | 23.09 | | | $ | 24.50 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 1.48 | %(e) | | | 11.14 | % | | | 30.88 | % | | | 15.72 | % | | | (5.37 | )% | | | 24.60 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 1,892 | | | $ | 1,976 | | | $ | 1,828 | | | $ | 1,950 | | | $ | 2,217 | | | $ | 2,627 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | | (0.50 | )%(f) | | | (0.45 | )% | | | (0.43 | )% | | | (0.56 | )% | | | 0.21 | % | | | 0.24 | % |
Operating expenses including reimbursement/waiver | | | 1.25 | %(f) | | | 1.25 | % | | | 1.25 | % | | | 1.38 | %(g)(h) | | | n/a | | | | n/a | |
Operating expenses excluding reimbursement/waiver | | | 1.55 | %(f) | | | 1.50 | % | | | 1.42 | % | | | 1.38 | % | | | 1.34 | % | | | 1.65 | % |
Portfolio Turnover Rate | | | 8 | %(e) | | | 53 | % | | | 218 | % | | | 154 | % | | | 40 | % | | | 169 | % |
(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 was known as the Accessor Small to Mid Cap Fund.
(d) Per share amounts are based upon average shares outstanding.
(e) Not Annualized.
(f) Annualized.
(g) Affiliated management fee waiver represents less than 0.005%.
(h) Effective November 1, 2012, the Advisor agreed to limit expenses at 1.25%.
| | | | |
| See Notes to Financial Statements | | 83 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Total MarketPlus Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013(a) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(b) | | | Year Ended
December 31,
2010(c) | |
Net Asset Value, Beginning of Period | | $ | 39.91 | | | $ | 37.39 | | | $ | 28.47 | | | $ | 24.51 | | | $ | 25.93 | | | $ | 24.32 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(d) | | | (0.02 | ) | | | (0.04 | ) | | | (0.04 | ) | | | (0.04 | ) | | | 0.16 | | | | 0.15 | |
Net realized and unrealized gain/(loss) on investments | | | 0.68 | | | | 4.35 | | | | 8.96 | | | | 4.00 | | | | (1.42 | ) | | | 5.94 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.66 | | | | 4.31 | | | | 8.92 | | | | 3.96 | | | | (1.26 | ) | | | 6.09 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | — | | | | — | | | | — | | | | — | | | | — | | | | (4.48 | ) |
From capital gains | | | — | | | | (1.79 | ) | | | — | | | | — | | | | — | | | | — | |
Tax return of capital | | | — | | | | — | | | | — | | | | — | | | | (0.16 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (1.79 | ) | | | — | | | | — | | | | (0.16 | ) | | | (4.48 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.66 | | | | 2.52 | | | | 8.92 | | | | 3.96 | | | | (1.42 | ) | | | 1.61 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 40.57 | | | $ | 39.91 | | | $ | 37.39 | | | $ | 28.47 | | | $ | 24.51 | | | $ | 25.93 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 1.65 | %(e) | | | 11.55 | % | | | 31.33 | % | | | 16.16 | % | | | (4.94 | )% | | | 25.13 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 14,069 | | | $ | 15,122 | | | $ | 21,636 | | | $ | 25,416 | | | $ | 98,153 | | | $ | 116,005 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | | (0.10 | )%(f) | | | (0.09 | )% | | | (0.11 | )% | | | (0.15 | )% | | | 0.62 | % | | | 0.58 | % |
Operating expenses including reimbursement/waiver | | | 0.85 | %(f) | | | 0.85 | % | | | 0.85 | % | | | 0.99 | %(g)(h) | | | n/a | | | | n/a | |
Operating expenses excluding reimbursement/waiver | | | 1.15 | %(f) | | | 1.09 | % | | | 1.02 | % | | | 0.99 | % | | | 0.94 | % | | | 1.26 | % |
Portfolio Turnover Rate | | | 8 | %(e) | | | 53 | % | | | 218 | % | | | 154 | % | | | 40 | % | | | 169 | % |
(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 was known as the Accessor Small to Mid Cap Fund.
(d) Per share amounts are based upon average shares outstanding.
(e) Not Annualized.
(f) Annualized.
(g) Affiliated management fee waiver represents less than 0.005%.
(h) Effective November 1, 2012, the Advisor agreed to limit expenses at 0.85%.
| | | | |
| June 30, 2015 | | 84 | | 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, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013(a) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(b) | | | Year Ended
December 31,
2010(c) | |
Net Asset Value, Beginning of Period | | $ | 40.08 | | | $ | 37.50 | | | $ | 28.53 | | | $ | 24.52 | | | $ | 25.93 | | | $ | 24.31 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(d) | | | (0.00 | )(e) | | | 0.01 | (f) | | | (0.03 | ) | | | (0.01 | ) | | | 0.22 | | | | 0.17 | |
Net realized and unrealized gain/(loss) on investments | | | 0.69 | | | | 4.36 | | | | 9.00 | | | | 4.02 | | | | (1.46 | ) | | | 5.96 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.69 | | | | 4.37 | | | | 8.97 | | | | 4.01 | | | | (1.24 | ) | | | 6.13 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | — | | | | — | | | | — | | | | — | | | | — | | | | (4.51 | ) |
From capital gains | | | — | | | | (1.79 | ) | | | — | | | | — | | | | — | | | | — | |
Tax return of capital | | | — | | | | — | | | | — | | | | — | | | | (0.17 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | — | | | | (1.79 | ) | | | — | | | | — | | | | (0.17 | ) | | | (4.51 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.69 | | | | 2.58 | | | | 8.97 | | | | 4.01 | | | | (1.41 | ) | | | 1.62 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 40.77 | | | $ | 40.08 | | | $ | 37.50 | | | $ | 28.53 | | | $ | 24.52 | | | $ | 25.93 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 1.72 | %(g) | | | 11.67 | % | | | 31.53 | % | | | 16.27 | % | | | (4.85 | )% | | | 25.32 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 7,587 | | | $ | 11,749 | | | $ | 17,511 | | | $ | 2,068 | | | $ | 10,416 | | | $ | 42,067 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | | (0.00 | )%(h)(i) | | | 0.02 | % | | | (0.10 | )% | | | (0.03 | )% | | | 0.82 | % | | | 0.67 | % |
Operating expenses including reimbursement/waiver | | | 0.75 | %(h) | | | 0.75 | % | | | 0.75 | % | | | 0.89 | %(j)(k) | | | n/a | | | | n/a | |
Operating expenses excluding reimbursement/waiver | | | 1.05 | %(h) | | | 0.98 | % | | | 0.90 | % | | | 0.90 | % | | | 0.83 | % | | | 1.17 | % |
Portfolio Turnover Rate | | | 8 | %(g) | | | 53 | % | | | 218 | % | | | 154 | % | | | 40 | % | | | 169 | % |
(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) Per share amounts are based upon average shares outstanding.
(e) Amount represents less than $0.01 per share.
(f) 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.
(g) Not Annualized.
(h) Annualized.
(i) Amount represents less than 0.01%.
(j) Affiliated management fee waiver represents less than 0.005%.
(k) Effective November 1, 2012, the Advisor agreed to limit expenses at 0.75%.
| | | | |
| See Notes to Financial Statements | | 85 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward U.S. Government Money Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(a) | |
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(b) | | | 0.00 | (c) | | | 0.00 | (c) | | | 0.00 | (c) | | | 0.00 | (c) | | | 0.00 | (c) | | | 0.00 | (c) |
Net realized and unrealized gain/(loss) on investments | | | — | | | | — | | | | (0.00 | )(c) | | | 0.00 | (c) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.00 | (c) | | | 0.00 | (c) | | | 0.00 | (c) | | | 0.00 | (c) | | | 0.00 | (c) | | | 0.00 | (c) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.00 | )(c) | | | (0.00 | )(c) | | | (0.00 | )(c) | | | (0.00 | )(c) | | | (0.00 | )(c) | | | (0.00 | )(c)(d) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.00 | )(c) | | | (0.00 | )(c) | | | (0.00 | )(c) | | | (0.00 | )(c) | | | (0.00 | )(c) | | | (0.00 | )(c) |
| | | | | | | | | | | | | | | | | | | | | | | | |
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 | %(e)(f) | | | 0.01 | % | | | 0.01 | % | | | 0.04 | % | | | 0.01 | % | | | 0.05 | %(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 4,482 | | | $ | 3,819 | | | $ | 1,066 | | | $ | 1,696 | | | $ | 1,098 | | | $ | 2,419 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including waiver | | | 0.01 | %(g) | | | 0.01 | % | | | 0.01 | % | | | 0.04 | % | | | 0.02 | % | | | 0.05 | % |
Operating expenses including waiver | | | 0.23 | %(g) | | | 0.20 | % | | | 0.25 | % | | | 0.25 | % | | | 0.18 | % | | | 0.24 | % |
Net investment loss excluding waiver | | | (0.55 | )%(g) | | | (0.87 | )% | | | (0.80 | )% | | | (0.69 | )% | | | (0.70 | )% | | | (0.69 | )% |
Operating expenses excluding waiver | | | 0.79 | %(g) | | | 1.08 | % | | | 1.06 | % | | | 0.98 | % | | | 0.90 | % | | | 0.98 | % |
(a) Prior to May 1, 2010, the Forward U.S. Government Money Fund was known as the Accessor U.S. Government Money Fund.
(b) Per share amounts are based upon average shares outstanding.
(c) Amount represents less than $0.01 per share.
(d) 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.
(e) Not Annualized.
(f) Amount represents less than 0.01%.
(g) Annualized.
| | | | |
| June 30, 2015 | | 86 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward U.S. Government Money Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(a) | |
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(b) | | | 0.00 | (c) | | | 0.00 | (c) | | | 0.00 | (c) | | | 0.00 | (c) | | | 0.00 | (c) | | | 0.00 | (c) |
Net realized and unrealized gain/(loss) on investments | | | — | | | | — | | | | (0.00 | )(c) | | | 0.00 | (c) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.00 | (c) | | | 0.00 | (c) | | | 0.00 | (c) | | | 0.00 | (c) | | | 0.00 | (c) | | | 0.00 | (c) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.00 | )(c) | | | (0.00 | )(c) | | | (0.00 | )(c) | | | (0.00 | )(c) | | | (0.00 | )(c) | | | (0.00 | )(c)(d) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.00 | )(c) | | | (0.00 | )(c) | | | (0.00 | )(c) | | | (0.00 | )(c) | | | (0.00 | )(c) | | | (0.00 | )(c) |
| | | | | | | | | | | | | | | | | | | | | | | | |
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 | %(e)(f) | | | 0.01 | % | | | 0.01 | % | | | 0.04 | % | | | 0.01 | % | | | 0.05 | %(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 67,181 | | | $ | 117,808 | | | $ | 69,135 | | | $ | 95,796 | | | $ | 189,465 | | | $ | 221,270 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including waiver | | | 0.01 | %(g) | | | 0.01 | % | | | 0.01 | % | | | 0.04 | % | | | 0.01 | % | | | 0.05 | % |
Operating expenses including waiver | | | 0.23 | %(g) | | | 0.20 | % | | | 0.25 | % | | | 0.25 | % | | | 0.18 | % | | | 0.24 | % |
Net investment loss excluding waiver | | | (0.05 | )%(g) | | | (0.38 | )% | | | (0.30 | )% | | | (0.18 | )% | | | (0.21 | )% | | | (0.19 | )% |
Operating expenses excluding waiver | | | 0.29 | %(g) | | | 0.59 | % | | | 0.56 | % | | | 0.47 | % | | | 0.40 | % | | | 0.48 | % |
(a) Prior to May 1, 2010, the Forward U.S. Government Money Fund was known as the Accessor U.S. Government Money Fund.
(b) Per share amounts are based upon average shares outstanding.
(c) Amount represents less than $0.01 per share.
(d) 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.
(e) Not Annualized.
(f) Amount represents less than 0.01%.
(g) Annualized.
| | | | |
| See Notes to Financial Statements | | 87 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Balanced Allocation Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(a) | |
Net Asset Value, Beginning of Period | | $ | 14.95 | | | $ | 15.33 | | | $ | 14.94 | | | $ | 13.96 | | | $ | 15.18 | | | $ | 14.56 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b) | | | 0.13 | | | | 0.51 | | | | 0.44 | | | | 0.33 | | | | 0.33 | | | | 0.69 | |
Net realized and unrealized gain/(loss) on investments | | | (0.26 | ) | | | (0.40 | ) | | | 0.42 | | | | 1.02 | | | | (0.83 | ) | | | 0.61 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.13 | ) | | | 0.11 | | | | 0.86 | | | | 1.35 | | | | (0.50 | ) | | | 1.30 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.18 | ) | | | (0.49 | ) | | | (0.47 | ) | | | (0.37 | ) | | | (0.34 | ) | | | (0.68 | ) |
From capital gains | | | — | | | | — | | | | — | | | | — | | | | (0.38 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.18 | ) | | | (0.49 | ) | | | (0.47 | ) | | | (0.37 | ) | | | (0.72 | ) | | | (0.68 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.31 | ) | | | (0.38 | ) | | | 0.39 | | | | 0.98 | | | | (1.22 | ) | | | 0.62 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 14.64 | | | $ | 14.95 | | | $ | 15.33 | | | $ | 14.94 | | | $ | 13.96 | | | $ | 15.18 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | (0.87 | )%(c) | | | 0.69 | % | | | 5.83 | % | | | 9.71 | % | | | (3.34 | )% | | | 9.05 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 1,138 | | | $ | 1,416 | | | $ | 2,610 | | | $ | 4,146 | | | $ | 8,503 | | | $ | 12,898 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including expense paid directly by the advisor | | | 1.81 | %(d) | | | 3.32 | % | | | 2.87 | % | | | 2.23 | % | | | 2.15 | % | | | 4.64 | % |
Operating expenses including expense paid directly by the advisor(e) | | | 1.39 | %(d) | | | 1.00 | % | | | 0.77 | % | | | 0.75 | % | | | 0.68 | % | | | 0.63 | % |
Net investment income excluding expense paid directly by the advisor | | | 1.71 | %(d) | | | 3.22 | % | | | 2.77 | % | | | 2.12 | % | | | 2.04 | % | | | 4.53 | % |
Operating expenses excluding expense paid directly by the advisor(e) | | | 1.49 | %(d) | | | 1.10 | % | | | 0.87 | % | | | 0.86 | % | | | 0.79 | % | | | 0.74 | % |
Portfolio Turnover Rate | | | 23 | %(c) | | | 57 | % | | | 46 | % | | | 81 | % | | | 78 | % | | | 55 | % |
(a) Prior to May 1, 2010, the Forward Balanced Allocation Fund was known as the Accessor Balanced Allocation Fund.
(b) Per share amounts are based upon average shares outstanding.
(c) Not Annualized.
(d) Annualized.
(e) Excludes expenses of the affiliated funds in which the Fund invests.
| | | | |
| June 30, 2015 | | 88 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Balanced Allocation Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(a) | |
Net Asset Value, Beginning of Period | | $ | 14.97 | | | $ | 15.34 | | | $ | 14.95 | | | $ | 13.97 | | | $ | 15.19 | | | $ | 14.57 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b) | | | 0.17 | | | | 0.45 | | | | 0.52 | | | | 0.41 | | | | 0.39 | | | | 0.70 | |
Net realized and unrealized gain/(loss) on investments | | | (0.26 | ) | | | (0.26 | ) | | | 0.42 | | | | 1.01 | | | | (0.81 | ) | | | 0.68 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.09 | ) | | | 0.19 | | | | 0.94 | | | | 1.42 | | | | (0.42 | ) | | | 1.38 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.21 | ) | | | (0.56 | ) | | | (0.55 | ) | | | (0.44 | ) | | | (0.42 | ) | | | (0.76 | ) |
From capital gains | | | — | | | | — | | | | — | | | | — | | | | (0.38 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.21 | ) | | | (0.56 | ) | | | (0.55 | ) | | | (0.44 | ) | | | (0.80 | ) | | | (0.76 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.30 | ) | | | (0.37 | ) | | | 0.39 | | | | 0.98 | | | | (1.22 | ) | | | 0.62 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 14.67 | | | $ | 14.97 | | | $ | 15.34 | | | $ | 14.95 | | | $ | 13.97 | | | $ | 15.19 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | (0.60 | )%(c) | | | 1.21 | % | | | 6.37 | % | | | 10.26 | % | | | (2.84 | )% | | | 9.59 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 1,237 | | | $ | 2,070 | | | $ | 16,014 | | | $ | 24,207 | | | $ | 35,935 | | | $ | 70,749 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including expense paid directly by the advisor | | | 2.25 | %(d) | | | 2.87 | % | | | 3.40 | % | | | 2.78 | % | | | 2.55 | % | | | 4.74 | % |
Operating expenses including expense paid directly by the advisor(e) | | | 0.89 | %(d) | | | 0.45 | % | | | 0.27 | % | | | 0.25 | % | | | 0.17 | % | | | 0.13 | % |
Net investment income excluding expense paid directly by the advisor | | | 2.15 | %(d) | | | 2.77 | % | | | 3.30 | % | | | 2.67 | % | | | 2.44 | % | | | 4.63 | % |
Operating expenses excluding expense paid directly by the advisor(e) | | | 0.99 | %(d) | | | 0.55 | % | | | 0.37 | % | | | 0.36 | % | | | 0.28 | % | | | 0.24 | % |
Portfolio Turnover Rate | | | 23 | %(c) | | | 57 | % | | | 46 | % | | | 81 | % | | | 78 | % | | | 55 | % |
(a) Prior to May 1, 2010, the Forward Balanced Allocation Fund was known as the Accessor Balanced Allocation Fund.
(b) Per share amounts are based upon average shares outstanding.
(c) Not Annualized.
(d) Annualized.
(e) Excludes expenses of the affiliated funds in which the Fund invests.
| | | | |
| See Notes to Financial Statements | | 89 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Balanced Allocation Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(a) | |
Net Asset Value, Beginning of Period | | $ | 14.95 | | | $ | 15.32 | | | $ | 14.93 | | | $ | 13.95 | | | $ | 15.17 | | | $ | 14.56 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b) | | | 0.15 | | | | 0.57 | | | | 0.48 | | | | 0.38 | | | | 0.30 | | | | 0.67 | |
Net realized and unrealized gain/(loss) on investments | | | (0.27 | ) | | | (0.43 | ) | | | 0.41 | | | | 0.99 | | | | (0.78 | ) | | | 0.64 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.12 | ) | | | 0.14 | | | | 0.89 | | | | 1.37 | | | | (0.48 | ) | | | 1.31 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.19 | ) | | | (0.51 | ) | | | (0.50 | ) | | | (0.39 | ) | | | (0.36 | ) | | | (0.70 | ) |
From capital gains | | | — | | | | — | | | | — | | | | — | | | | (0.38 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.19 | ) | | | (0.51 | ) | | | (0.50 | ) | | | (0.39 | ) | | | (0.74 | ) | | | (0.70 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.31 | ) | | | (0.37 | ) | | | 0.39 | | | | 0.98 | | | | (1.22 | ) | | | 0.61 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 14.64 | | | $ | 14.95 | | | $ | 15.32 | | | $ | 14.93 | | | $ | 13.95 | | | $ | 15.17 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(c) | | | (0.81 | )%(d) | | | 0.89 | % | | | 6.00 | % | | | 9.89 | % | | | (3.21 | )% | | | 9.14 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 3,257 | | | $ | 3,766 | | | $ | 4,886 | | | $ | 5,904 | | | $ | 6,230 | | | $ | 20,392 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including expense paid directly by the advisor | | | 2.03 | %(e) | | | 3.67 | % | | | 3.16 | % | | | 2.60 | % | | | 1.93 | % | | | 4.55 | % |
Operating expenses including expense paid directly by the advisor(f) | | | 1.24 | %(e) | | | 0.87 | % | | | 0.62 | % | | | 0.60 | % | | | 0.51 | % | | | 0.48 | % |
Net investment income excluding expense paid directly by the advisor | | | 1.93 | %(e) | | | 3.57 | % | | | 3.06 | % | | | 2.50 | % | | | 1.82 | % | | | 4.44 | % |
Operating expenses excluding expense paid directly by the advisor(f) | | | 1.34 | %(e) | | | 0.97 | % | | | 0.72 | % | | | 0.70 | % | | | 0.62 | % | | | 0.59 | % |
Portfolio Turnover Rate | | | 23 | %(d) | | | 57 | % | | | 46 | % | | | 81 | % | | | 78 | % | | | 55 | % |
(a) Prior to May 1, 2010, the Forward Balanced Allocation Fund Class A was known as the Accessor Balanced Allocation Fund A Class.
(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) Excludes expenses of the affiliated funds in which the Fund invests.
| | | | |
| June 30, 2015 | | 90 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Balanced Allocation Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class C | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(a) | |
Net Asset Value, Beginning of Period | | $ | 14.92 | | | $ | 15.30 | | | $ | 14.91 | | | $ | 13.93 | | | $ | 15.15 | | | $ | 14.54 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b) | | | 0.10 | | | | 0.45 | | | | 0.37 | | | | 0.28 | | | | 0.25 | | | | 0.62 | |
Net realized and unrealized gain/(loss) on investments | | | (0.27 | ) | | | (0.41 | ) | | | 0.41 | | | | 0.99 | | | | (0.83 | ) | | | 0.60 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.17 | ) | | | 0.04 | | | | 0.78 | | | | 1.27 | | | | (0.58 | ) | | | 1.22 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.15 | ) | | | (0.42 | ) | | | (0.39 | ) | | | (0.29 | ) | | | (0.26 | ) | | | (0.61 | ) |
From capital gains | | | — | | | | — | | | | — | | | | — | | | | (0.38 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.15 | ) | | | (0.42 | ) | | | (0.39 | ) | | | (0.29 | ) | | | (0.64 | ) | | | (0.61 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.32 | ) | | | (0.38 | ) | | | 0.39 | | | | 0.98 | | | | (1.22 | ) | | | 0.61 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 14.60 | | | $ | 14.92 | | | $ | 15.30 | | | $ | 14.91 | | | $ | 13.93 | | | $ | 15.15 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(c) | | | (1.14 | )%(d) | | | 0.26 | % | | | 5.30 | % | | | 9.18 | % | | | (3.84 | )% | | | 8.45 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 3,509 | | | $ | 4,096 | | | $ | 6,639 | | | $ | 9,884 | | | $ | 11,984 | | | $ | 17,005 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including expense paid directly by the advisor | | | 1.38 | %(e) | | | 2.90 | % | | | 2.41 | % | | | 1.89 | % | | | 1.68 | % | | | 4.17 | % |
Operating expenses including expense paid directly by the advisor(f) | | | 1.89 | %(e) | | | 1.50 | % | | | 1.27 | % | | | 1.25 | % | | | 1.18 | % | | | 1.13 | % |
Net investment income excluding expense paid directly by the advisor | | | 1.28 | %(e) | | | 2.80 | % | | | 2.31 | % | | | 1.79 | % | | | 1.57 | % | | | 4.06 | % |
Operating expenses excluding expense paid directly by the advisor(f) | | | 1.99 | %(e) | | | 1.60 | % | | | 1.37 | % | | | 1.35 | % | | | 1.29 | % | | | 1.24 | % |
Portfolio Turnover Rate | | | 23 | %(d) | | | 57 | % | | | 46 | % | | | 81 | % | | | 78 | % | | | 55 | % |
(a) Prior to May 1, 2010, the Forward Balanced Allocation Fund Class C was known as the Accessor Balanced Allocation Fund C Class.
(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) Excludes expenses of the affiliated funds in which the Fund invests.
| | | | |
| See Notes to Financial Statements | | 91 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Growth & Income Allocation Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(a) | |
Net Asset Value, Beginning of Period | | $ | 15.19 | | | $ | 15.74 | | | $ | 15.02 | | | $ | 13.94 | | | $ | 14.82 | | | $ | 14.15 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b) | | | 0.19 | | | | 0.59 | | | | 0.46 | | | | 0.30 | | | | 0.24 | | | | 0.70 | |
Net realized and unrealized gain/(loss) on investments | | | (0.23 | ) | | | (0.54 | ) | | | 0.74 | | | | 1.15 | | | | (0.79 | ) | | | 0.67 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.04 | ) | | | 0.05 | | | | 1.20 | | | | 1.45 | | | | (0.55 | ) | | | 1.37 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.21 | ) | | | (0.60 | ) | | | (0.48 | ) | | | (0.37 | ) | | | (0.27 | ) | | | (0.70 | ) |
From capital gains | | | — | | | | — | | | | — | | | | — | | | | (0.06 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.21 | ) | | | (0.60 | ) | | | (0.48 | ) | | | (0.37 | ) | | | (0.33 | ) | | | (0.70 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.25 | ) | | | (0.55 | ) | | | 0.72 | | | | 1.08 | | | | (0.88 | ) | | | 0.67 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 14.94 | | | $ | 15.19 | | | $ | 15.74 | | | $ | 15.02 | | | $ | 13.94 | | | $ | 14.82 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | (0.27 | )%(c) | | | 0.24 | % | | | 8.06 | % | | | 10.46 | % | | | (3.74 | )% | | | 9.76 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 3,535 | | | $ | 3,697 | | | $ | 3,881 | | | $ | 4,540 | | | $ | 7,527 | | | $ | 13,031 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including expense paid directly by the advisor | | | 2.47 | %(d) | | | 3.74 | % | | | 2.97 | % | | | 2.04 | % | | | 1.63 | % | | | 4.86 | % |
Operating expenses including expense paid directly by the advisor(e) | | | 0.97 | %(d) | | | 0.89 | % | | | 0.78 | % | | | 0.75 | % | | | 0.71 | % | | | 0.66 | % |
Net investment income excluding expense paid directly by the advisor | | | 2.37 | %(d) | | | 3.64 | % | | | 2.87 | % | | | 1.92 | % | | | 1.50 | % | | | 4.73 | % |
Operating expenses excluding expense paid directly by the advisor(e) | | | 1.07 | %(d) | | | 0.99 | % | | | 0.88 | % | | | 0.87 | % | | | 0.84 | % | | | 0.79 | % |
Portfolio Turnover Rate | | | 27 | %(c) | | | 61 | % | | | 62 | % | | | 84 | % | | | 79 | % | | | 47 | % |
(a) Prior to May 1, 2010, the Forward Growth & Income Allocation Fund was known as the Accessor Growth & Income Allocation Fund.
(b) Per share amounts are based upon average shares outstanding.
(c) Not Annualized.
(d) Annualized.
(e) Excludes expenses of the affiliated funds in which the Fund invests.
| | | | |
| June 30, 2015 | | 92 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Growth & Income Allocation Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(a) | |
Net Asset Value, Beginning of Period | | $ | 15.21 | | | $ | 15.76 | | | $ | 15.04 | | | $ | 13.96 | | | $ | 14.84 | | | $ | 14.17 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b) | | | 0.22 | | | | 0.56 | | | | 0.52 | | | | 0.39 | | | | 0.31 | | | | 0.69 | |
Net realized and unrealized gain/(loss) on investments | | | (0.22 | ) | | | (0.43 | ) | | | 0.76 | | | | 1.14 | | | | (0.78 | ) | | | 0.75 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.00 | | | | 0.13 | | | | 1.28 | | | | 1.53 | | | | (0.47 | ) | | | 1.44 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.25 | ) | | | (0.68 | ) | | | (0.56 | ) | | | (0.45 | ) | | | (0.35 | ) | | | (0.77 | ) |
From capital gains | | | — | | | | — | | | | — | | | | — | | | | (0.06 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.25 | ) | | | (0.68 | ) | | | (0.56 | ) | | | (0.45 | ) | | | (0.41 | ) | | | (0.77 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.25 | ) | | | (0.55 | ) | | | 0.72 | | | | 1.08 | | | | (0.88 | ) | | | 0.67 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 14.96 | | | $ | 15.21 | | | $ | 15.76 | | | $ | 15.04 | | | $ | 13.96 | | | $ | 14.84 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | (0.03 | )%(c) | | | 0.75 | % | | | 8.61 | % | | | 11.05 | % | | | (3.22 | )% | | | 10.28 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 3,346 | | | $ | 4,375 | | | $ | 11,458 | | | $ | 16,273 | | | $ | 24,909 | | | $ | 43,690 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including expense paid directly by the advisor | | | 2.93 | %(d) | | | 3.51 | % | | | 3.33 | % | | | 2.65 | % | | | 2.08 | % | | | 4.74 | % |
Operating expenses including expense paid directly by the advisor(e) | | | 0.47 | %(d) | | | 0.38 | % | | | 0.28 | % | | | 0.25 | % | | | 0.21 | % | | | 0.16 | % |
Net investment income excluding expense paid directly by the advisor | | | 2.83 | %(d) | | | 3.41 | % | | | 3.23 | % | | | 2.53 | % | | | 1.95 | % | | | 4.61 | % |
Operating expenses excluding expense paid directly by the advisor(e) | | | 0.57 | %(d) | | | 0.48 | % | | | 0.38 | % | | | 0.37 | % | | | 0.34 | % | | | 0.29 | % |
Portfolio Turnover Rate | | | 27 | %(c) | | | 61 | % | | | 62 | % | | | 84 | % | | | 79 | % | | | 47 | % |
(a) Prior to May 1, 2010, the Forward Growth & Income Allocation Fund was known as the Accessor Growth & Income Allocation Fund.
(b) Per share amounts are based upon average shares outstanding.
(c) Not Annualized.
(d) Annualized.
(e) Excludes expenses of the affiliated funds in which the Fund invests.
| | | | |
| See Notes to Financial Statements | | 93 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Growth & Income Allocation Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(a) | |
Net Asset Value, Beginning of Period | | $ | 15.16 | | | $ | 15.71 | | | $ | 14.99 | | | $ | 13.92 | | | $ | 14.80 | | | $ | 14.13 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b) | | | 0.20 | | | | 0.61 | | | | 0.47 | | | | 0.37 | | | | 0.28 | | | | 0.68 | |
Net realized and unrealized gain/(loss) on investments | | | (0.22 | ) | | | (0.54 | ) | | | 0.75 | | | | 1.10 | | | | (0.81 | ) | | | 0.71 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.02 | ) | | | 0.07 | | | | 1.22 | | | | 1.47 | | | | (0.53 | ) | | | 1.39 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.22 | ) | | | (0.62 | ) | | | (0.50 | ) | | | (0.40 | ) | | | (0.29 | ) | | | (0.72 | ) |
From capital gains | | | — | | | | — | | | | — | | | | — | | | | (0.06 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.22 | ) | | | (0.62 | ) | | | (0.50 | ) | | | (0.40 | ) | | | (0.35 | ) | | | (0.72 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.24 | ) | | | (0.55 | ) | | | 0.72 | | | | 1.07 | | | | (0.88 | ) | | | 0.67 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 14.92 | | | $ | 15.16 | | | $ | 15.71 | | | $ | 14.99 | | | $ | 13.92 | | | $ | 14.80 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(c) | | | (0.20 | )%(d) | | | 0.39 | % | | | 8.23 | % | | | 10.62 | % | | | (3.59 | )% | | | 9.92 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 7,128 | | | $ | 7,731 | | | $ | 9,262 | | | $ | 12,222 | | | $ | 12,691 | | | $ | 17,864 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including expense paid directly by the advisor | | | 2.60 | %(e) | | | 3.84 | % | | | 3.00 | % | | | 2.53 | % | | | 1.87 | % | | | 4.69 | % |
Operating expenses including expense paid directly by the advisor(f) | | | 0.82 | %(e) | | | 0.74 | % | | | 0.63 | % | | | 0.60 | % | | | 0.56 | % | | | 0.51 | % |
Net investment income excluding expense paid directly by the advisor | | | 2.50 | %(e) | | | 3.74 | % | | | 2.90 | % | | | 2.42 | % | | | 1.74 | % | | | 4.56 | % |
Operating expenses excluding expense paid directly by the advisor(f) | | | 0.92 | %(e) | | | 0.84 | % | | | 0.73 | % | | | 0.71 | % | | | 0.69 | % | | | 0.64 | % |
Portfolio Turnover Rate | | | 27 | %(d) | | | 61 | % | | | 62 | % | | | 84 | % | | | 79 | % | | | 47 | % |
(a) Prior to May 1, 2010, the Forward Growth & Income Allocation Fund Class A was known as the Accessor Growth & Income Allocation Fund A Class.
(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) Excludes expenses of the affiliated funds in which the Fund invests.
| | | | |
| June 30, 2015 | | 94 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Growth & Income Allocation Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class C | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(a) | |
Net Asset Value, Beginning of Period | | $ | 15.16 | | | $ | 15.71 | | | $ | 14.99 | | | $ | 13.90 | | | $ | 14.77 | | | $ | 14.11 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b) | | | 0.15 | | | | 0.50 | | | | 0.36 | | | | 0.23 | | | | 0.17 | | | | 0.60 | |
Net realized and unrealized gain/(loss) on investments | | | (0.22 | ) | | | (0.54 | ) | | | 0.75 | | | | 1.15 | | | | (0.79 | ) | | | 0.68 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.07 | ) | | | (0.04 | ) | | | 1.11 | | | | 1.38 | | | | (0.62 | ) | | | 1.28 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.17 | ) | | | (0.51 | ) | | | (0.39 | ) | | | (0.29 | ) | | | (0.19 | ) | | | (0.62 | ) |
From capital gains | | | — | | | | — | | | | — | | | | — | | | | (0.06 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.17 | ) | | | (0.51 | ) | | | (0.39 | ) | | | (0.29 | ) | | | (0.25 | ) | | | (0.62 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.24 | ) | | | (0.55 | ) | | | 0.72 | | | | 1.09 | | | | (0.87 | ) | | | 0.66 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 14.92 | | | $ | 15.16 | | | $ | 15.71 | | | $ | 14.99 | | | $ | 13.90 | | | $ | 14.77 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(c) | | | (0.46 | )%(d) | | | (0.28 | )% | | | 7.56 | % | | | 9.89 | % | | | (4.19 | )% | | | 9.16 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 7,014 | | | $ | 8,051 | | | $ | 10,385 | | | $ | 14,466 | | | $ | 22,529 | | | $ | 32,334 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including expense paid directly by the advisor | | | 1.93 | %(e) | | | 3.13 | % | | | 2.35 | % | | | 1.57 | % | | | 1.18 | % | | | 4.20 | % |
Operating expenses including expense paid directly by the advisor(f) | | | 1.47 | %(e) | | | 1.39 | % | | | 1.28 | % | | | 1.25 | % | | | 1.21 | % | | | 1.16 | % |
Net investment income excluding expense paid directly by the advisor | | | 1.83 | %(e) | | | 3.03 | % | | | 2.25 | % | | | 1.45 | % | | | 1.05 | % | | | 4.07 | % |
Operating expenses excluding expense paid directly by the advisor(f) | | | 1.57 | %(e) | | | 1.49 | % | | | 1.38 | % | | | 1.37 | % | | | 1.34 | % | | | 1.29 | % |
Portfolio Turnover Rate | | | 27 | %(d) | | | 61 | % | | | 62 | % | | | 84 | % | | | 79 | % | | | 47 | % |
(a) Prior to May 1, 2010, the Forward Growth & Income Allocation Fund Class C was known as the Accessor Growth & Income Allocation Fund C Class.
(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) Excludes expenses of the affiliated funds in which the Fund invests.
| | | | |
| See Notes to Financial Statements | | 95 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Growth Allocation Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(a) | |
Net Asset Value, Beginning of Period | | $ | 14.33 | | | $ | 14.91 | | | $ | 14.09 | | | $ | 12.94 | | | $ | 14.71 | | | $ | 13.99 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b) | | | 0.19 | | | | 0.63 | | | | 0.42 | | | | 0.33 | | | | 0.12 | | | | 0.69 | |
Net realized and unrealized gain/(loss) on investments | | | (0.11 | ) | | | (0.58 | ) | | | 0.83 | | | | 1.22 | | | | (0.98 | ) | | | 0.74 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.08 | | | | 0.05 | | | | 1.25 | | | | 1.55 | | | | (0.86 | ) | | | 1.43 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.23 | ) | | | (0.63 | ) | | | (0.43 | ) | | | (0.40 | ) | | | (0.13 | ) | | | (0.71 | ) |
From capital gains | | | — | | | | — | | | | — | | | | — | | | | (0.78 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.23 | ) | | | (0.63 | ) | | | (0.43 | ) | | | (0.40 | ) | | | (0.91 | ) | | | (0.71 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.15 | ) | | | (0.58 | ) | | | 0.82 | | | | 1.15 | | | | (1.77 | ) | | | 0.72 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 14.18 | | | $ | 14.33 | | | $ | 14.91 | | | $ | 14.09 | | | $ | 12.94 | | | $ | 14.71 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 0.52 | %(c) | | | 0.29 | % | | | 8.98 | % | | | 12.09 | % | | | (5.82 | )% | | | 10.25 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 2,493 | | | $ | 2,827 | | | $ | 3,323 | | | $ | 4,408 | | | $ | 7,853 | | | $ | 12,728 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including expense paid directly by the advisor | | | 2.70 | %(d) | | | 4.18 | % | | | 2.82 | % | | | 2.37 | % | | | 0.86 | % | | | 4.87 | % |
Operating expenses including expense paid directly by the advisor(e) | | | 0.89 | %(d) | | | 0.82 | % | | | 0.79 | % | | | 0.76 | % | | | 0.71 | % | | | 0.68 | % |
Net investment income excluding expense paid directly by the advisor | | | 2.60 | %(d) | | | 4.08 | % | | | 2.72 | % | | | 2.26 | % | | | 0.72 | % | | | 4.73 | % |
Operating expenses excluding expense paid directly by the advisor(e) | | | 0.99 | %(d) | | | 0.92 | % | | | 0.89 | % | | | 0.87 | % | | | 0.85 | % | | | 0.82 | % |
Portfolio Turnover Rate | | | 29 | %(c) | | | 62 | % | | | 83 | % | | | 89 | % | | | 84 | % | | | 70 | % |
(a) Prior to May 1, 2010, the Forward Growth Allocation Fund was known as the Accessor Growth Allocation Fund.
(b) Per share amounts are based upon average shares outstanding.
(c) Not Annualized.
(d) Annualized.
(e) Excludes expenses of the affiliated funds in which the Fund invests.
| | | | |
| June 30, 2015 | | 96 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Growth Allocation Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(a) | |
Net Asset Value, Beginning of Period | | $ | 14.33 | | | $ | 14.91 | | | $ | 14.09 | | | $ | 12.94 | | | $ | 14.72 | | | $ | 14.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b) | | | 0.23 | | | | 0.64 | | | | 0.56 | | | | 0.39 | | | | 0.19 | | | | 0.72 | |
Net realized and unrealized gain/(loss) on investments | | | (0.12 | ) | | | (0.51 | ) | | | 0.77 | | | | 1.24 | | | | (0.98 | ) | | | 0.78 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.11 | | | | 0.13 | | | | 1.33 | | | | 1.63 | | | | (0.79 | ) | | | 1.50 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.26 | ) | | | (0.71 | ) | | | (0.51 | ) | | | (0.48 | ) | | | (0.21 | ) | | | (0.78 | ) |
From capital gains | | | — | | | | — | | | | — | | | | — | | | | (0.78 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.26 | ) | | | (0.71 | ) | | | (0.51 | ) | | | (0.48 | ) | | | (0.99 | ) | | | (0.78 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.15 | ) | | | (0.58 | ) | | | 0.82 | | | | 1.15 | | | | (1.78 | ) | | | 0.72 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 14.18 | | | $ | 14.33 | | | $ | 14.91 | | | $ | 14.09 | | | $ | 12.94 | | | $ | 14.72 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 0.77 | %(c) | | | 0.80 | % | | | 9.54 | % | | | 12.73 | % | | | (5.39 | )% | | | 10.79 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 10,833 | | | $ | 11,170 | | | $ | 18,203 | | | $ | 13,631 | | | $ | 24,550 | | | $ | 44,027 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including expense paid directly by the advisor | | | 3.26 | %(d) | | | 4.21 | % | | | 3.78 | % | | | 2.85 | % | | | 1.28 | % | | | 5.06 | % |
Operating expenses including expense paid directly by the advisor(e) | | | 0.39 | %(d) | | | 0.32 | % | | | 0.28 | % | | | 0.26 | % | | | 0.21 | % | | | 0.18 | % |
Net investment income excluding expense paid directly by the advisor | | | 3.16 | %(d) | | | 4.11 | % | | | 3.68 | % | | | 2.73 | % | | | 1.14 | % | | | 4.92 | % |
Operating expenses excluding expense paid directly by the advisor(e) | | | 0.49 | %(d) | | | 0.42 | % | | | 0.38 | % | | | 0.38 | % | | | 0.35 | % | | | 0.32 | % |
Portfolio Turnover Rate | | | 29 | %(c) | | | 62 | % | | | 83 | % | | | 89 | % | | | 84 | % | | | 70 | % |
(a) Prior to May 1, 2010, the Forward Growth Allocation Fund was known as the Accessor Growth Allocation Fund.
(b) Per share amounts are based upon average shares outstanding.
(c) Not Annualized.
(d) Annualized.
(e) Excludes expenses of the affiliated funds in which the Fund invests.
| | | | |
| See Notes to Financial Statements | | 97 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Growth Allocation Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(a) | |
Net Asset Value, Beginning of Period | | $ | 14.32 | | | $ | 14.90 | | | $ | 14.08 | | | $ | 12.94 | | | $ | 14.72 | | | $ | 13.99 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b) | | | 0.20 | | | | 0.65 | | | | 0.46 | | | | 0.38 | | | | 0.17 | | | | 0.66 | |
Net realized and unrealized gain/(loss) on investments | | | (0.10 | ) | | | (0.57 | ) | | | 0.81 | | | | 1.19 | | | | (1.01 | ) | | | 0.80 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.10 | | | | 0.08 | | | | 1.27 | | | | 1.57 | | | | (0.84 | ) | | | 1.46 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.24 | ) | | | (0.66 | ) | | | (0.45 | ) | | | (0.43 | ) | | | (0.16 | ) | | | (0.73 | ) |
From capital gains | | | — | | | | — | | | | — | | | | — | | | | (0.78 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.24 | ) | | | (0.66 | ) | | | (0.45 | ) | | | (0.43 | ) | | | (0.94 | ) | | | (0.73 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.14 | ) | | | (0.58 | ) | | | 0.82 | | | | 1.14 | | | | (1.78 | ) | | | 0.73 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 14.18 | | | $ | 14.32 | | | $ | 14.90 | | | $ | 14.08 | | | $ | 12.94 | | | $ | 14.72 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(c) | | | 0.66 | %(d) | | | 0.44 | % | | | 9.15 | % | | | 12.25 | % | | | (5.73 | )% | | | 10.48 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 6,490 | | | $ | 7,933 | | | $ | 10,058 | | | $ | 10,553 | | | $ | 12,709 | | | $ | 17,670 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including expense paid directly by the advisor | | | 2.82 | %(e) | | | 4.28 | % | | | 3.12 | % | | | 2.78 | % | | | 1.14 | % | | | 4.61 | % |
Operating expenses including expense paid directly by the advisor(f) | | | 0.74 | %(e) | | | 0.67 | % | | | 0.64 | % | | | 0.61 | % | | | 0.56 | % | | | 0.53 | % |
Net investment income excluding expense paid directly by the advisor | | | 2.72 | %(e) | | | 4.18 | % | | | 3.02 | % | | | 2.67 | % | | | 1.00 | % | | | 4.47 | % |
Operating expenses excluding expense paid directly by the advisor(f) | | | 0.84 | %(e) | | | 0.77 | % | | | 0.74 | % | | | 0.72 | % | | | 0.70 | % | | | 0.67 | % |
Portfolio Turnover Rate | | | 29 | %(d) | | | 62 | % | | | 83 | % | | | 89 | % | | | 84 | % | | | 70 | % |
(a) Prior to May 1, 2010, the Forward Growth Allocation Fund Class A was known as the Accessor Growth Allocation Fund A Class.
(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) Excludes expenses of the affiliated funds in which the Fund invests.
| | | | |
| June 30, 2015 | | 98 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Growth Allocation Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class C | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(a) | |
Net Asset Value, Beginning of Period | | $ | 14.20 | | | $ | 14.78 | | | $ | 13.96 | | | $ | 12.83 | | | $ | 14.63 | | | $ | 13.92 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b) | | | 0.16 | | | | 0.53 | | | | 0.34 | | | | 0.27 | | | | 0.07 | | | | 0.56 | |
Net realized and unrealized gain/(loss) on investments | | | (0.12 | ) | | | (0.56 | ) | | | 0.84 | | | | 1.21 | | | | (0.99 | ) | | | 0.78 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.04 | | | | (0.03 | ) | | | 1.18 | | | | 1.48 | | | | (0.92 | ) | | | 1.34 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.19 | ) | | | (0.55 | ) | | | (0.36 | ) | | | (0.35 | ) | | | (0.10 | ) | | | (0.63 | ) |
From capital gains | | | — | | | | — | | | | — | | | | — | | | | (0.78 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.19 | ) | | | (0.55 | ) | | | (0.36 | ) | | | (0.35 | ) | | | (0.88 | ) | | | (0.63 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.15 | ) | | | (0.58 | ) | | | 0.82 | | | | 1.13 | | | | (1.80 | ) | | | 0.71 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 14.05 | | | $ | 14.20 | | | $ | 14.78 | | | $ | 13.96 | | | $ | 12.83 | | | $ | 14.63 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(c) | | | 0.27 | %(d) | | | (0.23 | )% | | | 8.49 | % | | | 11.57 | % | | | (6.31 | )% | | | 9.67 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 6,583 | | | $ | 7,576 | | | $ | 10,881 | | | $ | 14,018 | | | $ | 20,321 | | | $ | 27,871 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including expense paid directly by the advisor | | | 2.20 | %(e) | | | 3.53 | % | | | 2.30 | % | | | 2.00 | % | | | 0.50 | % | | | 3.97 | % |
Operating expenses including expense paid directly by the advisor(f) | | | 1.39 | %(e) | | | 1.32 | % | | | 1.29 | % | | | 1.26 | % | | | 1.21 | % | | | 1.18 | % |
Net investment income excluding expense paid directly by the advisor | | | 2.10 | %(e) | | | 3.43 | % | | | 2.20 | % | | | 1.89 | % | | | 0.36 | % | | | 3.83 | % |
Operating expenses excluding expense paid directly by the advisor(f) | | | 1.49 | %(e) | | | 1.42 | % | | | 1.39 | % | | | 1.37 | % | | | 1.35 | % | | | 1.32 | % |
Portfolio Turnover Rate | | | 29 | %(d) | | | 62 | % | | | 83 | % | | | 89 | % | | | 84 | % | | | 70 | % |
(a) Prior to May 1, 2010, the Forward Growth Allocation Fund Class C was known as the Accessor Growth Allocation Fund C Class.
(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) Excludes expenses of the affiliated funds in which the Fund invests.
| | | | |
| See Notes to Financial Statements | | 99 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Income & Growth Allocation Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(a) | |
Net Asset Value, Beginning of Period | | $ | 11.11 | | | $ | 14.21 | | | $ | 15.24 | | | $ | 14.26 | | | $ | 14.93 | | | $ | 14.39 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(b) | | | (0.01 | ) | | | 0.43 | | | | 0.40 | | | | 0.35 | | | | 0.41 | | | | 0.58 | |
Net realized and unrealized gain/(loss) on investments | | | (0.20 | ) | | | (0.21 | ) | | | 0.07 | | | | 1.05 | | | | (0.58 | ) | | | 0.55 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.21 | ) | | | 0.22 | | | | 0.47 | | | | 1.40 | | | | (0.17 | ) | | | 1.13 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.01 | ) | | | (0.33 | ) | | | (0.45 | ) | | | (0.42 | ) | | | (0.45 | ) | | | (0.59 | ) |
From capital gains | | | — | | | | (2.99 | ) | | | (1.05 | ) | | | — | | | | (0.05 | ) | | | (0.00 | )(c) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.01 | ) | | | (3.32 | ) | | | (1.50 | ) | | | (0.42 | ) | | | (0.50 | ) | | | (0.59 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.22 | ) | | | (3.10 | ) | | | (1.03 | ) | | | 0.98 | | | | (0.67 | ) | | | 0.54 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 10.89 | | | $ | 11.11 | | | $ | 14.21 | | | $ | 15.24 | | | $ | 14.26 | | | $ | 14.93 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | (1.93 | )%(d) | | | 1.51 | % | | | 3.18 | % | | | 9.88 | % | | | (1.17 | )% | | | 7.96 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 380 | | | $ | 406 | | | $ | 661 | | | $ | 1,224 | | | $ | 2,918 | | | $ | 4,821 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) including expense paid directly by the advisor | | | (0.10 | )%(e) | | | 3.04 | % | | | 2.60 | % | | | 2.33 | % | | | 2.73 | % | | | 3.96 | % |
Operating expenses including expense paid directly by the advisor(f) | | | 3.02 | %(e) | | | 1.55 | % | | | 0.88 | % | | | 0.69 | % | | | 0.68 | % | | | 0.69 | % |
Net investment income/(loss) excluding expense paid directly by the advisor | | | (0.20 | )%(e) | | | 2.94 | % | | | 2.50 | % | | | 2.23 | % | | | 2.63 | % | | | 3.86 | % |
Operating expenses excluding expense paid directly by the advisor(f) | | | 3.12 | %(e) | | | 1.65 | % | | | 0.98 | % | | | 0.79 | % | | | 0.78 | % | | | 0.79 | % |
Portfolio Turnover Rate | | | 28 | %(d) | | | 59 | % | | | 38 | % | | | 83 | % | | | 95 | % | | | 53 | % |
(a) Prior to May 1, 2010, the Forward Income & Growth Allocation Fund was known as the Accessor Income & Growth Allocation 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) Excludes expenses of the affiliated funds in which the Fund invests.
| | | | |
| June 30, 2015 | | 100 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Income & Growth Allocation Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(a) | |
Net Asset Value, Beginning of Period | | $ | 11.12 | | | $ | 14.21 | | | $ | 15.25 | | | $ | 14.27 | | | $ | 14.94 | | | $ | 14.41 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b) | | | 0.02 | (c) | | | 0.30 | | | | 0.46 | | | | 0.50 | | | | 0.54 | | | | 0.68 | |
Net realized and unrealized gain/(loss) on investments | | | (0.21 | ) | | | (0.02 | ) | | | 0.08 | | | | 0.98 | | | | (0.63 | ) | | | 0.51 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.19 | ) | | | 0.28 | | | | 0.54 | | | | 1.48 | | | | (0.09 | ) | | | 1.19 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.01 | ) | | | (0.38 | ) | | | (0.53 | ) | | | (0.50 | ) | | | (0.53 | ) | | | (0.66 | ) |
From capital gains | | | — | | | | (2.99 | ) | | | (1.05 | ) | | | — | | | | (0.05 | ) | | | (0.00 | )(d) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.01 | ) | | | (3.37 | ) | | | (1.58 | ) | | | (0.50 | ) | | | (0.58 | ) | | | (0.66 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.20 | ) | | | (3.09 | ) | | | (1.04 | ) | | | 0.98 | | | | (0.67 | ) | | | 0.53 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 10.92 | | | $ | 11.12 | | | $ | 14.21 | | | $ | 15.25 | | | $ | 14.27 | | | $ | 14.94 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | (1.70 | )%(e) | | | 1.96 | % | | | 3.65 | % | | | 10.45 | % | | | (0.66 | )% | | | 8.42 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 596 | | | $ | 1,203 | | | $ | 14,173 | | | $ | 59,663 | | | $ | 54,211 | | | $ | 49,947 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including expense paid directly by the advisor | | | 0.29 | %(f) | | | 2.06 | % | | | 2.97 | % | | | 3.32 | % | | | 3.64 | % | | | 4.60 | % |
Operating expenses including expense paid directly by the advisor(g) | | | 2.47 | %(f) | | | 0.80 | % | | | 0.35 | % | | | 0.19 | % | | | 0.18 | % | | | 0.19 | % |
Net investment income excluding expense paid directly by the advisor | | | 0.19 | %(f) | | | 1.96 | % | | | 2.87 | % | | | 3.22 | % | | | 3.53 | % | | | 4.50 | % |
Operating expenses excluding expense paid directly by the advisor(g) | | | 2.57 | %(f) | | | 0.90 | % | | | 0.45 | % | | | 0.29 | % | | | 0.29 | % | | | 0.29 | % |
Portfolio Turnover Rate | | | 28 | %(e) | | | 59 | % | | | 38 | % | | | 83 | % | | | 95 | % | | | 53 | % |
(a) Prior to May 1, 2010, the Forward Income & Growth Allocation Fund was known as the Accessor Income & Growth Allocation Fund.
(b) Per share amounts are based upon average shares outstanding.
(c) 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.
(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 | | 101 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Income & Growth Allocation Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(a) | |
Net Asset Value, Beginning of Period | | $ | 11.10 | | | $ | 14.20 | | | $ | 15.23 | | | $ | 14.25 | | | $ | 14.92 | | | $ | 14.39 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b) | | | 0.00 | (c)(d) | | | 0.41 | | | | 0.49 | | | | 0.43 | | | | 0.42 | | | | 0.58 | |
Net realized and unrealized gain/(loss) on investments | | | (0.20 | ) | | | (0.17 | ) | | | 0.01 | | | | 0.99 | | | | (0.57 | ) | | | 0.56 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.20 | ) | | | 0.24 | | | | 0.50 | | | | 1.42 | | | | (0.15 | ) | | | 1.14 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.01 | ) | | | (0.35 | ) | | | (0.48 | ) | | | (0.44 | ) | | | (0.47 | ) | | | (0.61 | ) |
From capital gains | | | — | | | | (2.99 | ) | | | (1.05 | ) | | | — | | | | (0.05 | ) | | | (0.00 | )(c) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.01 | ) | | | (3.34 | ) | | | (1.53 | ) | | | (0.44 | ) | | | (0.52 | ) | | | (0.61 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.21 | ) | | | (3.10 | ) | | | (1.03 | ) | | | 0.98 | | | | (0.67 | ) | | | 0.53 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 10.89 | | | $ | 11.10 | | | $ | 14.20 | | | $ | 15.23 | | | $ | 14.25 | | | $ | 14.92 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(e) | | | (1.83 | )%(f) | | | 1.62 | % | | | 3.35 | % | | | 10.07 | % | | | (1.02 | )% | | | 8.05 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 650 | | | $ | 801 | | | $ | 997 | | | $ | 1,085 | | | $ | 1,206 | | | $ | 2,745 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including expense paid directly by the advisor | | | 0.02 | %(g) | | | 2.90 | % | | | 3.19 | % | | | 2.88 | % | | | 2.80 | % | | | 3.96 | % |
Operating expenses including expense paid directly by the advisor(h) | | | 2.85 | %(g) | | | 1.40 | % | | | 0.74 | % | | | 0.54 | % | | | 0.53 | % | | | 0.53 | % |
Net investment income/(loss) excluding expense paid directly by the advisor | | | (0.08 | )%(g) | | | 2.80 | % | | | 3.09 | % | | | 2.78 | % | | | 2.70 | % | | | 3.85 | % |
Operating expenses excluding expense paid directly by the advisor(h) | | | 2.95 | %(g) | | | 1.50 | % | | | 0.84 | % | | | 0.64 | % | | | 0.63 | % | | | 0.64 | % |
Portfolio Turnover Rate | | | 28 | %(f) | | | 59 | % | | | 38 | % | | | 83 | % | | | 95 | % | | | 53 | % |
(a) Prior to May 1, 2010, the Forward Income & Growth Allocation Fund Class A was known as the Accessor Income & Growth Allocation Fund A Class.
(b) Per share amounts are based upon average shares outstanding.
(c) Amount represents less than $0.01 per share.
(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) 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, 2015 | | 102 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Income & Growth Allocation Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class C | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(a) | |
Net Asset Value, Beginning of Period | | $ | 11.04 | | | $ | 14.16 | | | $ | 15.18 | | | $ | 14.21 | | | $ | 14.88 | | | $ | 14.35 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(b) | | | (0.04 | ) | | | 0.30 | | | | 0.34 | | | | 0.32 | | | | 0.37 | | | | 0.50 | |
Net realized and unrealized gain/(loss) on investments | | | (0.20 | ) | | | (0.15 | ) | | | 0.06 | | | | 0.99 | | | | (0.61 | ) | | | 0.54 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.24 | ) | | | 0.15 | | | | 0.40 | | | | 1.31 | | | | (0.24 | ) | | | 1.04 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.00 | )(c) | | | (0.28 | ) | | | (0.37 | ) | | | (0.34 | ) | | | (0.38 | ) | | | (0.51 | ) |
From capital gains | | | — | | | | (2.99 | ) | | | (1.05 | ) | | | — | | | | (0.05 | ) | | | (0.00 | )(c) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.00 | )(c) | | | (3.27 | ) | | | (1.42 | ) | | | (0.34 | ) | | | (0.43 | ) | | | (0.51 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.24 | ) | | | (3.12 | ) | | | (1.02 | ) | | | 0.97 | | | | (0.67 | ) | | | 0.53 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 10.80 | | | $ | 11.04 | | | $ | 14.16 | | | $ | 15.18 | | | $ | 14.21 | | | $ | 14.88 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(d) | | | (2.16 | )%(e) | | | 1.01 | % | | | 2.73 | % | | | 9.31 | % | | | (1.65 | )% | | | 7.37 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 1,143 | | | $ | 1,390 | | | $ | 2,015 | | | $ | 4,066 | | | $ | 5,597 | | | $ | 6,744 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) including expense paid directly by the advisor | | | (0.68 | )%(f) | | | 2.14 | % | | | 2.22 | % | | | 2.14 | % | | | 2.51 | % | | | 3.44 | % |
Operating expenses including expense paid directly by the advisor(g) | | | 3.51 | %(f) | | | 2.03 | % | | | 1.38 | % | | | 1.19 | % | | | 1.18 | % | | | 1.19 | % |
Net investment income/(loss) excluding expense paid directly by the advisor | | | (0.78 | )%(f) | | | 2.04 | % | | | 2.12 | % | | | 2.04 | % | | | 2.40 | % | | | 3.34 | % |
Operating expenses excluding expense paid directly by the advisor(g) | | | 3.61 | %(f) | | | 2.13 | % | | | 1.48 | % | | | 1.29 | % | | | 1.29 | % | | | 1.29 | % |
Portfolio Turnover Rate | | | 28 | %(e) | | | 59 | % | | | 38 | % | | | 83 | % | | | 95 | % | | | 53 | % |
(a) Prior to May 1, 2010, the Forward Income & Growth Allocation Fund Class C was known as the Accessor Income & Growth Allocation Fund C Class.
(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) Excludes expenses of the affiliated funds in which the Fund invests.
| | | | |
| See Notes to Financial Statements | | 103 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Income Builder Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012(a) | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(b) | |
Net Asset Value, Beginning of Period | | $ | 14.60 | | | $ | 15.34 | | | $ | 15.33 | | | $ | 14.50 | | | $ | 14.39 | | | $ | 13.99 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.32 | | | | 0.77 | | | | 0.70 | | | | 0.67 | | | | 0.62 | | | | 0.50 | |
Net realized and unrealized gain/(loss) on investments | | | (0.21 | ) | | | (0.10 | ) | | | 0.03 | | | | 0.88 | | | | 0.12 | | | | 0.40 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.11 | | | | 0.67 | | | | 0.73 | | | | 1.55 | | | | 0.74 | | | | 0.90 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.32 | ) | | | (0.76 | ) | | | (0.67 | ) | | | (0.72 | ) | | | (0.63 | ) | | | (0.50 | ) |
From capital gains | | | — | | | | (0.65 | ) | | | (0.05 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.32 | ) | | | (1.41 | ) | | | (0.72 | ) | | | (0.72 | ) | | | (0.63 | ) | | | (0.50 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.21 | ) | | | (0.74 | ) | | | 0.01 | | | | 0.83 | | | | 0.11 | | | | 0.40 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 14.39 | | | $ | 14.60 | | | $ | 15.34 | | | $ | 15.33 | | | $ | 14.50 | | | $ | 14.39 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 0.73 | %(d) | | | 4.34 | % | | | 4.80 | % | | | 11.04 | % | | | 5.26 | % | | | 6.48 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 2,067 | | | $ | 2,326 | | | $ | 1,867 | | | $ | 1,381 | | | $ | 2,289 | | | $ | 2,423 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including waiver and expense paid directly by the advisor | | | 4.33 | %(e) | | | 4.94 | % | | | 4.50 | % | | | 4.53 | % | | | 4.30 | % | | | 3.51 | % |
Operating expenses including waiver and expense paid directly by the advisor(f) | | | 0.89 | %(e) | | | 0.96 | %(g) | | | 0.99 | %(h) | | | 1.07 | % | | | 0.97 | % | | | 0.91 | % |
Net investment income excluding waiver and expense paid directly by the advisor | | | 3.93 | %(e) | | | 4.72 | % | | | 4.43 | % | | | 4.43 | % | | | 4.19 | % | | | 3.39 | % |
Operating expenses excluding waiver and expense paid directly by the advisor(f) | | | 1.29 | %(e) | | | 1.18 | % | | | 1.06 | % | | | 1.17 | % | | | 1.08 | % | | | 1.02 | % |
Portfolio Turnover Rate | | | 90 | %(d) | | | 191 | % | | | 95 | % | | | 135 | % | | | 38 | % | | | 33 | % |
(a) Prior to May 1, 2012, the Forward Income Builder Fund was known as the Forward Income Allocation Fund.
(b) Prior to May 1, 2010, the Forward Income Allocation Fund was known as the Accessor 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.
(g) Effective October 1, 2014, the annual expense limitation rate changed from 0.99% to 0.89%.
(h) Effective May 1, 2013, the Advisor agreed to limit expenses at 0.99%.
| | | | |
| June 30, 2015 | | 104 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Income Builder Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012(a) | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(b) | |
Net Asset Value, Beginning of Period | | $ | 14.62 | | | $ | 15.36 | | | $ | 15.35 | | | $ | 14.51 | | | $ | 14.40 | | | $ | 14.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.35 | | | | 0.73 | | | | 0.72 | | | | 0.75 | | | | 0.70 | | | | 0.57 | |
Net realized and unrealized gain/(loss) on investments | | | (0.21 | ) | | | 0.01 | | | | 0.08 | | | | 0.89 | | | | 0.12 | | | | 0.40 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.14 | | | | 0.74 | | | | 0.80 | | | | 1.64 | | | | 0.82 | | | | 0.97 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.35 | ) | | | (0.83 | ) | | | (0.74 | ) | | | (0.80 | ) | | | (0.71 | ) | | | (0.57 | ) |
From capital gains | | | — | | | | (0.65 | ) | | | (0.05 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.35 | ) | | | (1.48 | ) | | | (0.79 | ) | | | (0.80 | ) | | | (0.71 | ) | | | (0.57 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.21 | ) | | | (0.74 | ) | | | 0.01 | | | | 0.84 | | | | 0.11 | | | | 0.40 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 14.41 | | | $ | 14.62 | | | $ | 15.36 | | | $ | 15.35 | | | $ | 14.51 | | | $ | 14.40 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 0.97 | %(d) | | | 4.83 | % | | | 5.34 | % | | | 11.59 | % | | | 5.79 | % | | | 7.01 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 3,886 | | | $ | 4,376 | | | $ | 8,568 | | | $ | 9,497 | | | $ | 11,545 | | | $ | 14,772 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including waiver and expense paid directly by the advisor | | | 4.76 | %(e) | | | 4.63 | % | | | 4.62 | % | | | 5.06 | % | | | 4.81 | % | | | 3.98 | % |
Operating expenses including waiver and expense paid directly by the advisor(f) | | | 0.39 | %(e) | | | 0.47 | %(g) | | | 0.49 | %(h) | | | 0.57 | % | | | 0.47 | % | | | 0.40 | % |
Net investment income excluding waiver and expense paid directly by the advisor | | | 4.36 | %(e) | | | 4.44 | % | | | 4.55 | % | | | 4.96 | % | | | 4.69 | % | | | 3.86 | % |
Operating expenses excluding waiver and expense paid directly by the advisor(f) | | | 0.79 | %(e) | | | 0.66 | % | | | 0.56 | % | | | 0.67 | % | | | 0.59 | % | | | 0.52 | % |
Portfolio Turnover Rate | | | 90 | %(d) | | | 191 | % | | | 95 | % | | | 135 | % | | | 38 | % | | | 33 | % |
(a) Prior to May 1, 2012, the Forward Income Builder Fund was known as the Forward Income Allocation Fund.
(b) Prior to May 1, 2010, the Forward Income Allocation Fund was known as the Accessor 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.
(g) Effective October 1, 2014, the annual expense limitation rate changed from 0.49% to 0.39%.
(h) Effective May 1, 2013, the Advisor agreed to limit expenses at 0.49%.
| | | | |
| See Notes to Financial Statements | | 105 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Income Builder Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012(a) | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(b) | |
Net Asset Value, Beginning of Period | | $ | 14.61 | | | $ | 15.35 | | | $ | 15.34 | | | $ | 14.51 | | | $ | 14.39 | | | $ | 13.99 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.33 | | | | 0.82 | | | | 0.84 | | | | 0.85 | | | | 0.66 | | | | 0.54 | |
Net realized and unrealized gain/(loss) on investments | | | (0.20 | ) | | | (0.11 | ) | | | (0.07 | ) | | | 0.74 | | | | 0.13 | | | | 0.39 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.13 | | | | 0.71 | | | | 0.77 | | | | 1.59 | | | | 0.79 | | | | 0.93 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.34 | ) | | | (0.80 | ) | | | (0.71 | ) | | | (0.76 | ) | | | (0.67 | ) | | | (0.53 | ) |
From capital gains | | | — | | | | (0.65 | ) | | | (0.05 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.34 | ) | | | (1.45 | ) | | | (0.76 | ) | | | (0.76 | ) | | | (0.67 | ) | | | (0.53 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.21 | ) | | | (0.74 | ) | | | 0.01 | | | | 0.83 | | | | 0.12 | | | | 0.40 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 14.40 | | | $ | 14.61 | | | $ | 15.35 | | | $ | 15.34 | | | $ | 14.51 | | | $ | 14.39 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(d) | | | 0.85 | %(e) | | | 4.58 | % | | | 5.10 | % | | | 11.25 | % | | | 5.59 | % | | | 6.75 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 1,851 | | | $ | 1,958 | | | $ | 2,817 | | | $ | 693 | | | $ | 274 | | | $ | 830 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including waiver and expense paid directly by the advisor | | | 4.57 | %(f) | | | 5.26 | % | | | 5.42 | % | | | 5.73 | % | | | 4.50 | % | | | 3.79 | % |
Operating expenses including waiver and expense paid directly by the advisor(g) | | | 0.64 | %(f) | | | 0.71 | %(h) | | | 0.74 | %(i) | | | 0.77 | % | | | 0.70 | % | | | 0.66 | % |
Net investment income excluding waiver and expense paid directly by the advisor | | | 4.18 | %(f) | | | 5.04 | % | | | 5.35 | % | | | 5.62 | % | | | 4.38 | % | | | 3.67 | % |
Operating expenses excluding waiver and expense paid directly by the advisor(g) | | | 1.03 | %(f) | | | 0.93 | % | | | 0.81 | % | | | 0.88 | % | | | 0.82 | % | | | 0.77 | % |
Portfolio Turnover Rate | | | 90 | %(e) | | | 191 | % | | | 95 | % | | | 135 | % | | | 38 | % | | | 33 | % |
(a) Prior to May 1, 2012, the Forward Income Builder Fund was known as the Forward Income Allocation Fund.
(b) Prior to May 1, 2010, the Forward Income Allocation Fund Class A was known as the Accessor 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.
(h) Effective October 1, 2014, the annual expense limitation rate changed from 0.74% to 0.64%.
(i) Effective May 1, 2013, the Advisor agreed to limit expenses at 0.74%.
| | | | |
| June 30, 2015 | | 106 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Income Builder Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class C | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012(a) | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(b) | |
Net Asset Value, Beginning of Period | | $ | 14.54 | | | $ | 15.29 | | | $ | 15.30 | | | $ | 14.47 | | | $ | 14.36 | | | $ | 13.96 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.27 | | | | 0.71 | | | | 0.62 | | | | 0.62 | | | | 0.57 | | | | 0.43 | |
Net realized and unrealized gain/(loss) on investments | | | (0.20 | ) | | | (0.11 | ) | | | 0.02 | | | | 0.86 | | | | 0.10 | | | | 0.40 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.07 | | | | 0.60 | | | | 0.64 | | | | 1.48 | | | | 0.67 | | | | 0.83 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.28 | ) | | | (0.70 | ) | | | (0.60 | ) | | | (0.65 | ) | | | (0.56 | ) | | | (0.43 | ) |
From capital gains | | | — | | | | (0.65 | ) | | | (0.05 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.28 | ) | | | (1.35 | ) | | | (0.65 | ) | | | (0.65 | ) | | | (0.56 | ) | | | (0.43 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.21 | ) | | | (0.75 | ) | | | (0.01 | ) | | | 0.83 | | | | 0.11 | | | | 0.40 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 14.33 | | | $ | 14.54 | | | $ | 15.29 | | | $ | 15.30 | | | $ | 14.47 | | | $ | 14.36 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(d) | | | 0.49 | %(e) | | | 3.86 | % | | | 4.28 | % | | | 10.45 | % | | | 4.76 | % | | | 5.97 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 6,929 | | | $ | 7,768 | | | $ | 6,971 | | | $ | 5,775 | | | $ | 5,354 | | | $ | 4,653 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including waiver and expense paid directly by the advisor | | | 3.77 | %(f) | | | 4.54 | % | | | 4.04 | % | | | 4.22 | % | | | 3.95 | % | | | 3.02 | % |
Operating expenses including waiver and expense paid directly by the advisor(g) | | | 1.39 | %(f) | | | 1.46 | %(h) | | | 1.48 | %(i) | | | 1.56 | % | | | 1.48 | % | | | 1.41 | % |
Net investment income excluding waiver and expense paid directly by the advisor | | | 3.37 | %(f) | | | 4.32 | % | | | 3.96 | % | | | 4.12 | % | | | 3.83 | % | | | 2.91 | % |
Operating expenses excluding waiver and expense paid directly by the advisor(g) | | | 1.79 | %(f) | | | 1.68 | % | | | 1.56 | % | | | 1.66 | % | | | 1.60 | % | | | 1.52 | % |
Portfolio Turnover Rate | | | 90 | %(e) | | | 191 | % | | | 95 | % | | | 135 | % | | | 38 | % | | | 33 | % |
(a) Prior to May 1, 2012, the Forward Income Builder Fund was known as the Forward Income Allocation Fund.
(b) Prior to May 1, 2010, the Forward Income Allocation Fund Class C was known as the Accessor 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.
(h) Effective October 1, 2014, the annual expense limitation rate changed from 1.49% to 1.39%.
(i) Effective May 1, 2013, the Advisor agreed to limit expenses at 1.49%.
| | | | |
| See Notes to Financial Statements | | 107 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Multi-Strategy Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012(a) | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(b) | |
Net Asset Value, Beginning of Period | | $ | 14.42 | | | $ | 14.45 | | | $ | 13.95 | | | $ | 12.54 | | | $ | 14.01 | | | $ | 13.38 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.19 | | | | 0.42 | | | | 0.28 | | | | 0.37 | | | | 0.03 | | | | 0.61 | |
Net realized and unrealized gain/(loss) on investments | | | (0.31 | ) | | | 0.20 | | | | 0.53 | | | | 1.49 | | | | (1.12 | ) | | | 0.64 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.12 | ) | | | 0.62 | | | | 0.81 | | | | 1.86 | | | | (1.09 | ) | | | 1.25 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.22 | ) | | | (0.65 | ) | | | (0.31 | ) | | | (0.45 | ) | | | (0.05 | ) | | | (0.62 | ) |
From capital gains | | | — | | | | — | | | | — | | | | — | | | | (0.33 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.22 | ) | | | (0.65 | ) | | | (0.31 | ) | | | (0.45 | ) | | | (0.38 | ) | | | (0.62 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.34 | ) | | | (0.03 | ) | | | 0.50 | | | | 1.41 | | | | (1.47 | ) | | | 0.63 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 14.08 | | | $ | 14.42 | | | $ | 14.45 | | | $ | 13.95 | | | $ | 12.54 | | | $ | 14.01 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | (0.87 | )%(d) | | | 4.28 | % | | | 5.78 | % | | | 15.05 | % | | | (7.72 | )% | | | 9.28 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 864 | | | $ | 942 | | | $ | 1,928 | | | $ | 3,009 | | | $ | 4,800 | | | $ | 7,995 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including waiver and expense paid directly by the advisor | | | 2.59 | %(e) | | | 2.83 | % | | | 1.93 | % | | | 2.74 | % | | | 0.20 | % | | | 4.52 | % |
Operating expenses including waiver and expense paid directly by the advisor(f) | | | 0.89 | %(e) | | | 0.98 | %(g) | | | 1.12 | % | | | 1.00 | % | | | 0.85 | % | | | 0.78 | % |
Net investment income excluding waiver and expense paid directly by the advisor | | | 2.27 | %(e) | | | 2.69 | % | | | 1.83 | % | | | 2.62 | % | | | 0.06 | % | | | 4.38 | % |
Operating expenses excluding waiver and expense paid directly by the advisor(f) | | | 1.21 | %(e) | | | 1.12 | % | | | 1.22 | % | | | 1.12 | % | | | 0.99 | % | | | 0.92 | % |
Portfolio Turnover Rate | | | 9 | %(d) | | | 6 | % | | | 109 | % | | | 93 | % | | | 104 | % | | | 84 | % |
(a) Prior to December 3, 2012, the Forward Multi-Strategy Fund was known as the Forward Aggressive Growth Allocation Fund.
(b) Prior to May 1, 2010, the Forward Aggressive Growth Allocation Fund was known as the Accessor Aggressive 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.
(g) Effective May 1, 2014, the Advisor agreed to limit expenses at 0.99% and effective October 1, 2014, the annual expense limitation rate changed from 0.99% to 0.89%.
| | | | |
| June 30, 2015 | | 108 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Multi-Strategy Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012(a) | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(b) | |
Net Asset Value, Beginning of Period | | $ | 14.95 | | | $ | 14.96 | | | $ | 14.43 | | | $ | 12.94 | | | $ | 14.39 | | | $ | 13.73 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.23 | | | | 0.68 | | | | 0.52 | | | | 0.42 | | | | 0.06 | | | | 0.63 | |
Net realized and unrealized gain/(loss) on investments | | | (0.33 | ) | | | 0.04 | | | | 0.40 | | | | 1.58 | | | | (1.10 | ) | | | 0.72 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.10 | ) | | | 0.72 | | | | 0.92 | | | | 2.00 | | | | (1.04 | ) | | | 1.35 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.25 | ) | | | (0.73 | ) | | | (0.39 | ) | | | (0.51 | ) | | | (0.08 | ) | | | (0.69 | ) |
From capital gains | | | — | | | | — | | | | — | | | | — | | | | (0.33 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.25 | ) | | | (0.73 | ) | | | (0.39 | ) | | | (0.51 | ) | | | (0.41 | ) | | | (0.69 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.35 | ) | | | (0.01 | ) | | | 0.53 | | | | 1.49 | | | | (1.45 | ) | | | 0.66 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 14.60 | | | $ | 14.95 | | | $ | 14.96 | | | $ | 14.43 | | | $ | 12.94 | | | $ | 14.39 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | (0.66 | )%(d) | | | 4.81 | % | | | 6.39 | % | | | 15.59 | % | | | (7.21 | )% | | | 9.85 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 8,965 | | | $ | 9,302 | | | $ | 10,490 | | | $ | 6,562 | | | $ | 11,518 | | | $ | 30,007 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including waiver and expense paid directly by the advisor | | | 3.10 | %(e) | | | 4.38 | % | | | 3.48 | % | | | 3.03 | % | | | 0.42 | % | | | 4.57 | % |
Operating expenses including waiver and expense paid directly by the advisor(f) | | | 0.39 | %(e) | | | 0.47 | %(g) | | | 0.55 | % | | | 0.50 | % | | | 0.33 | % | | | 0.27 | % |
Net investment income excluding waiver and expense paid directly by the advisor | | | 2.78 | %(e) | | | 4.21 | % | | | 3.38 | % | | | 2.91 | % | | | 0.27 | % | | | 4.43 | % |
Operating expenses excluding waiver and expense paid directly by the advisor(f) | | | 0.71 | %(e) | | | 0.64 | % | | | 0.65 | % | | | 0.62 | % | | | 0.48 | % | | | 0.41 | % |
Portfolio Turnover Rate | | | 9 | %(d) | | | 6 | % | | | 109 | % | | | 93 | % | | | 104 | % | | | 84 | % |
(a) Prior to December 3, 2012, the Forward Multi-Strategy Fund was known as the Forward Aggressive Growth Allocation Fund.
(b) Prior to May 1, 2010, the Forward Aggressive Growth Allocation Fund was known as the Accessor Aggressive 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.
(g) Effective May 1, 2014, the Advisor agreed to limit expenses at 0.49% and effective October 1, 2014, the annual expense limitation rate changed from 0.49% to 0.39%.
| | | | |
| See Notes to Financial Statements | | 109 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Multi-Strategy Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012(a) | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(b) | |
Net Asset Value, Beginning of Period | | $ | 14.72 | | | $ | 14.74 | | | $ | 14.22 | | | $ | 12.77 | | | $ | 14.23 | | | $ | 13.58 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.20 | | | | 0.64 | | | | 0.33 | | | | 0.44 | | | | 0.07 | | | | 0.54 | |
Net realized and unrealized gain/(loss) on investments | | | (0.32 | ) | | | 0.01 | | | | 0.52 | | | | 1.48 | | | | (1.14 | ) | | | 0.75 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.12 | ) | | | 0.65 | | �� | | 0.85 | | | | 1.92 | | | | (1.07 | ) | | | 1.29 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.23 | ) | | | (0.67 | ) | | | (0.33 | ) | | | (0.47 | ) | | | (0.06 | ) | | | (0.64 | ) |
From capital gains | | | — | | | | — | | | | — | | | | — | | | | (0.33 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.23 | ) | | | (0.67 | ) | | | (0.33 | ) | | | (0.47 | ) | | | (0.39 | ) | | | (0.64 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.35 | ) | | | (0.02 | ) | | | 0.52 | | | | 1.45 | | | | (1.46 | ) | | | 0.65 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 14.37 | | | $ | 14.72 | | | $ | 14.74 | | | $ | 14.22 | | | $ | 12.77 | | | $ | 14.23 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(d) | | | (0.85 | )%(e) | | | 4.43 | % | | | 6.03 | % | | | 15.17 | % | | | (7.54 | )% | | | 9.51 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 2,684 | | | $ | 3,103 | | | $ | 3,518 | | | $ | 4,150 | | | $ | 4,777 | | | $ | 7,600 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including waiver and expense paid directly by the advisor | | | 2.69 | %(f) | | | 4.15 | % | | | 2.22 | % | | | 3.18 | % | | | 0.48 | % | | | 3.92 | % |
Operating expenses including waiver and expense paid directly by the advisor(g) | | | 0.74 | %(f) | | | 0.83 | %(h) | | | 0.96 | % | | | 0.85 | % | | | 0.70 | % | | | 0.62 | % |
Net investment income excluding waiver and expense paid directly by the advisor | | | 2.37 | %(f) | | | 3.98 | % | | | 2.12 | % | | | 3.06 | % | | | 0.34 | % | | | 3.78 | % |
Operating expenses excluding waiver and expense paid directly by the advisor(g) | | | 1.06 | %(f) | | | 1.00 | % | | | 1.06 | % | | | 0.97 | % | | | 0.84 | % | | | 0.76 | % |
Portfolio Turnover Rate | | | 9 | %(e) | | | 6 | % | | | 109 | % | | | 93 | % | | | 104 | % | | | 84 | % |
(a) Prior to December 3, 2012, the Forward Multi-Strategy Fund was known as the Forward Aggressive Growth Allocation Fund.
(b) Prior to May 1, 2010, the Forward Aggressive Growth Allocation Fund Class A was known as the Accessor Aggressive 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.
(h) Effective May 1, 2014, the Advisor agreed to limit expenses at 0.84% and effective October 1, 2014, the annual expense limitation rate changed from 0.84% to 0.74%.
| | | | |
| June 30, 2015 | | 110 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Multi-Strategy Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class C | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012(a) | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010(b) | |
Net Asset Value, Beginning of Period | | $ | 14.01 | | | $ | 14.06 | | | $ | 13.58 | | | $ | 12.23 | | | $ | 13.71 | | | $ | 13.16 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(c) | | | 0.14 | | | | 0.52 | | | | 0.19 | | | | 0.32 | | | | (0.00 | )(d) | | | 0.42 | |
Net realized and unrealized gain/(loss) on investments | | | (0.30 | ) | | | 0.01 | | | | 0.53 | | | | 1.44 | | | | (1.11 | ) | | | 0.73 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.16 | ) | | | 0.53 | | | | 0.72 | | | | 1.76 | | | | (1.11 | ) | | | 1.15 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.18 | ) | | | (0.58 | ) | | | (0.24 | ) | | | (0.41 | ) | | | (0.04 | ) | | | (0.60 | ) |
From capital gains | | | — | | | | — | | | | — | | | | — | | | | (0.33 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.18 | ) | | | (0.58 | ) | | | (0.24 | ) | | | (0.41 | ) | | | (0.37 | ) | | | (0.60 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.34 | ) | | | (0.05 | ) | | | 0.48 | | | | 1.35 | | | | (1.48 | ) | | | 0.55 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 13.67 | | | $ | 14.01 | | | $ | 14.06 | | | $ | 13.58 | | | $ | 12.23 | | | $ | 13.71 | |
| | | | | | | | | | �� | | | | | | | | | | | | | | |
Total Return(e) | | | (1.17 | )%(f) | | | 3.79 | % | | | 5.29 | % | | | 14.48 | % | | | (8.13 | )% | | | 8.81 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 1,427 | | | $ | 1,983 | | | $ | 2,428 | | | $ | 3,554 | | | $ | 4,394 | | | $ | 5,806 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including waiver and expense paid directly by the advisor | | | 1.96 | %(g) | | | 3.55 | % | | | 1.38 | % | | | 2.43 | % | | | (0.00 | )%(h) | | | 3.16 | % |
Operating expenses including waiver and expense paid directly by the advisor(i) | | | 1.39 | %(g) | | | 1.47 | %(j) | | | 1.62 | % | | | 1.50 | % | | | 1.36 | % | | | 1.27 | % |
Net investment income/(loss) excluding waiver and expense paid directly by the advisor | | | 1.64 | %(g) | | | 3.37 | % | | | 1.28 | % | | | 2.31 | % | | | (0.14 | )% | | | 3.02 | % |
Operating expenses excluding waiver and expense paid directly by the advisor(i) | | | 1.71 | %(g) | | | 1.65 | % | | | 1.72 | % | | | 1.62 | % | | | 1.50 | % | | | 1.41 | % |
Portfolio Turnover Rate | | | 9 | %(f) | | | 6 | % | | | 109 | % | | | 93 | % | | | 104 | % | | | 84 | % |
(a) Prior to December 3, 2012, the Forward Multi-Strategy Fund was known as the Forward Aggressive Growth Allocation Fund.
(b) Prior to May 1, 2010, the Forward Aggressive Growth Allocation Fund Class C was known as the Accessor Aggressive 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) Amount represents less than 0.01%.
(i) Excludes expenses of the affiliated funds in which the Fund invests.
(j) Effective May 1, 2014, the Advisor agreed to limit expenses at 1.49% and effective October 1, 2014, the annual expense limitation rate changed from 1.49% to 1.39%.
| | | | |
| See Notes to Financial Statements | | 111 | | June 30, 2015 |
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, 2015, the Trust has 29 registered funds. This semi-annual report describes 11 funds offered by the Trust (each a “Fund” and collectively, the “Funds”). The accompanying financial statements and financial highlights include 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”), 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 investments that provide exposure to the returns of frontier markets (i.e., markets of smaller, less accessible, but still investable, countries of the developing world). 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 synthetic or other instruments that have similar economic characteristics to investment grade debt securities. The Total MarketPlus Fund seeks capital growth and invests primarily in derivative instruments such as swaps, structured notes, futures and options that have similar economic characteristics to common stocks of companies with a range of large, mid and small market capitalization, such as those in the Fund’s benchmark, the Russell 3000 Index. The U.S. Government Money Fund seeks maximum current income consistent with the preservation of principal and liquidity and invests primarily in cash, obligations issued or guaranteed by the U.S. Government, its agencies, or instrumentalities, including government sponsored enterprises and repurchase agreements that are collateralized fully by either cash or U.S. Government Securities. 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, which may invest in the following types of asset classes: 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, which may invest in the following types of asset classes: 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, which may invest in the following types of asset classes: 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, which may invest in the following types of asset classes: 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, which may invest in the following types of asset classes: 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, which may invest in the following types of strategies and asset classes: long/short strategies, tactical strategies, U.S. equity, frontier and emerging market, international equity, U.S. fixed-income, international fixed-income, and money market.
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 Frontier Strategy Fund is classified as a non-diversified fund under the 1940 Act. The Allocation Funds are “funds 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
Notes to Financial Statements (Unaudited)
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.
2. Significant Accounting Policies
The following is a summary of 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. Each Fund is considered an investment company for financial reporting purposes under GAAP. The financial statements have been prepared as of the close of the New York Stock Exchange (“NYSE”) on June 30, 2015.
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 prices 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 either at 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 of more than 365 days or that are credit impaired are valued on the basis of the average of the latest bid and ask prices. Debt securities that have an original maturity of less than 365 days and that are not credit impaired are valued as follows: (a) maturity of 61 to 365 days, on the basis of the average of the latest bid and ask prices; and (b) maturity of 60 days or less, at amortized cost.
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 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. To the extent that such securities do not trade on a valuation day and the last bid and ask prices are not available, the securities may be valued using matrix pricing or similar valuation methods from the Funds’ independent pricing vendors. Bonds that do not trade regularly tend to be less liquid, and 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.
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, options on futures, and swap 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, options on futures, and swap 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
Notes to Financial Statements (Unaudited)
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. If there has been no sale that day, such securities are valued at the average of the last reported bid and ask prices on the valuation day for long positions or ask prices for short positions. 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 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 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 normal trading day of the NYSE, normally 4:00 p.m. Eastern Time. The Funds’ 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 contracts have a market value determined by the prevailing daily foreign currency exchange 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 currency exchange rates and foreign currency exchange forward 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: analysis of recent public transactions in securities or assets of the same class or that are highly similar; analysis of recent private transactions in securities or assets of the same class or that are highly similar; analysis of information that provides a reasonable basis for valuation, such as appraisals, analysts’ reports, and valuation models; and cost, if other valuation methods are not available.
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.
Debt Securities: Debt securities are affected primarily by the financial condition of the companies or other entities that have issued them and by changes in interest rates. There is a risk that an issuer of a Fund’s debt investments may not be able to meet its financial obligations (e.g., an issuer may not be able to make principal and/or interest payments when they are due or otherwise default on other financial terms) and/or go bankrupt. Lower rated debt securities, such as high-yield/high-risk bonds, are especially subject to credit risk during periods of economic uncertainty or during economic downturns and are more likely to default on their interest and/or principal payments than higher rated debt securities. Debt securities with longer durations tend to be more sensitive to changes in interest rates, making them more volatile than debt securities with shorter durations. The value of debt securities may fall when interest rates rise. Given the current
Notes to Financial Statements (Unaudited)
historically low interest rate environment, the risks associated with rising interest rates are heightened and future increases in interest rates may result in periods of dramatic volatility and may negatively impact the value of debt securities. The liquidity of the market for debt securities may decrease during periods of increased volatility. Additionally, new regulations applicable to and changing business practices of broker-dealers that make markets in debt securities may result in those broker-dealers restricting their market making activities for certain debt securities, which may reduce the liquidity and increase the volatility of such debt securities.
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 tranches of 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, related index or reference asset. 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 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 securities 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. These 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
Notes to Financial Statements (Unaudited)
“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. A Fund will not engage in these transactions for investment leverage.
When-issued securities involve the risk that the yield obtained in the transaction will be less than that available in the market when delivery takes place. 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.
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 is 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 into which the commitment was entered.
Government-Sponsored Enterprises (“GSEs”): Certain Funds may invest in GSEs, which are privately-owned corporations created by the U.S. Congress to provide funding and help to reduce the cost of capital for certain borrowing sectors of the economy, such as homeowners, students, and farmers. 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 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.
Notes to Financial Statements (Unaudited)
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 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, 2015, 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 as of June 30, 2015.
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 purchases and sales of investments in Note 7 and the Fund’s Portfolio Turnover Calculation in the Financial Highlights. As of June 30, 2015, 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 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,
Notes to Financial Statements (Unaudited)
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 in which a Fund may invest, 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. Investments in the Underlying Funds are valued at their NAV daily and are classified as Level 1 prices.
Level 2—Quoted prices in markets 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 tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy as of June 30, 2015:
| | | | | | | | | | | | | | | | |
| Investments in Securities | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Frontier Strategy Fund | | | | | | | | | | | | | | | | |
Exchange-Traded Funds | | $ | 4,312,934 | | | $ | — | | | | — | | | $ | 4,312,934 | |
Agency Pass-Through Securities(a) | | | — | | | | 17,736,579 | | | | — | | | | 17,736,579 | |
Asset-Backed Securities | | | — | | | | 3,603,396 | | | | — | | | | 3,603,396 | |
Collateralized Mortgage Obligations(a) | | | — | | | | 11,291,588 | | | | — | | | | 11,291,588 | |
Corporate Bonds(a) | | | — | | | | 17,218,756 | | | | — | | | | 17,218,756 | |
Municipal Bonds | | | — | | | | 8,991,603 | | | | — | | | | 8,991,603 | |
U.S. Treasury Bonds & Notes | | | — | | | | 19,635,112 | | | | — | | | | 19,635,112 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 4,312,934 | | | $ | 78,477,034 | | | | — | | | $ | 82,789,968 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| High Yield Bond Fund | | | | | | | | | | | | | | | | |
Corporate Bonds(a) | | | — | | | $ | 125,225,024 | | | | — | | | $ | 125,225,024 | |
| | | | | | | | | | | | | | | | |
Total | | | — | | | $ | 125,225,024 | | | | — | | | $ | 125,225,024 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Investment Grade Fixed-Income Fund | | | | | | | | | | | | | | | | |
Exchange-Traded Funds | | $ | 10,678,010 | | | $ | — | | | | — | | | $ | 10,678,010 | |
U.S. Treasury Bonds & Notes | | | — | | | | 35 | | | | — | | | | 35 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 10,678,010 | | | $ | 35 | | | | — | | | $ | 10,678,045 | |
| | | | | | | | | | | | | | | | |
Notes to Financial Statements (Unaudited)
| | | | | | | | | | | | | | | | |
| Investments in Securities | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Total MarketPlus Fund | | | | | | | | | | | | | | | | |
Exchange-Traded Funds | | $ | 12,742,552 | | | $ | — | | | | — | | | $ | 12,742,552 | |
Agency Pass-Through Securities(a) | | | — | | | | 3,348,865 | | | | — | | | | 3,348,865 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 12,742,552 | | | $ | 3,348,865 | | | | — | | | $ | 16,091,417 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| U.S. Government Money Fund | | | | | | | | | | | | | | | | |
Repurchase Agreements | | | — | | | $ | 71,000,000 | | | | — | | | $ | 71,000,000 | |
| | | | | | | | | | | | | | | | |
Total | | | — | | | $ | 71,000,000 | | | | — | | | $ | 71,000,000 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Balanced Allocation Fund | | | | | | | | | | | | | | | | |
Affiliated Investment Companies | | $ | 9,068,004 | | | | — | | | | — | | | $ | 9,068,004 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 9,068,004 | | | | — | | | | — | | | $ | 9,068,004 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Growth & Income Allocation Fund | | | | | | | | | | | | | | | | |
Affiliated Investment Companies | | $ | 21,071,869 | | | | — | | | | — | | | $ | 21,071,869 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 21,071,869 | | | | — | | | | — | | | $ | 21,071,869 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Growth Allocation Fund | | | | | | | | | | | | | | | | |
Affiliated Investment Companies | | $ | 26,340,599 | | | | — | | | | — | | | $ | 26,340,599 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 26,340,599 | | | | — | | | | — | | | $ | 26,340,599 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Income & Growth Allocation Fund | | | | | | | | | | | | | | | | |
Affiliated Investment Companies | | $ | 2,762,642 | | | | — | | | | — | | | $ | 2,762,642 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 2,762,642 | | | | — | | | | — | | | $ | 2,762,642 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Income Builder Fund | | | | | | | | | | | | | | | | |
Affiliated Investment Companies | | $ | 14,531,812 | | | | — | | | | — | | | $ | 14,531,812 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 14,531,812 | | | | — | | | | — | | | $ | 14,531,812 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Multi-Strategy Fund | | | | | | | | | | | | | | | | |
Affiliated Investment Companies | | $ | 13,870,733 | | | | — | | | | — | | | $ | 13,870,733 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 13,870,733 | | | | — | | | | — | | | $ | 13,870,733 | |
| | | | | | | | | | | | | | | | |
(a) For detailed descriptions of industry or sector, 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 | | | — | | | $ | 27,044 | | | | — | | | $ | 27,044 | |
| Liabilities | | | | | | | | | | | | | | | | |
Total Return Swap Contracts | | | — | | | | (5,554,046 | ) | | | — | | | | (5,554,046 | ) |
| | | | | | | | | | | | | | | | |
Total | | | — | | | $ | (5,527,002 | ) | | | — | | | $ | (5,527,002 | ) |
| | | | | | | | | | | | | | | | |
Notes to Financial Statements (Unaudited)
| | | | | | | | | | | | | | | | |
| Other Financial Instruments(a) | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Total MarketPlus Fund | | | | | | | | | | | | | | | | |
| Assets | | | | | | | | | | | | | | | | |
Total Return Swap Contracts | | | — | | | $ | 188,648 | | | | — | | | $ | 188,648 | |
| Liabilities | | | | | | | | | | | | | | | | |
Total Return Swap Contracts | | | — | | | | (35,569 | ) | | | — | | | | (35,569 | ) |
| | | | | | | | | | | | | | | | |
Total | | | — | | | $ | 153,079 | | | | — | | | $ | 153,079 | |
| | | | | | | | | | | | | | | | |
(a) Other financial instruments are derivative instruments reflected in the schedules to the Portfolio of Investments, such as swap contracts.
The Funds recognize transfers between levels as of the beginning of the annual period in which the transfer occurred. As of June 30, 2015 there were no transfers between Level 1 and Level 2 securities.
As of June 30, 2015, the 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 currency 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 use derivatives that increase or decrease a Fund’s 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
Notes to Financial Statements (Unaudited)
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 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. The Funds held no futures contracts as of June 30, 2015.
Option Writing/Purchasing: Certain Funds may write or purchase option contracts to adjust the 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. The Funds held no purchased or written options during the six months ended June 30, 2015.
Swaps: 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 may be executed in a multilateral or other trade facility program, such as a registered exchange (“centrally cleared swaps”) or may be privately negotiated in the over-the-counter market. The duration of a swap agreement typically ranges 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
Notes to Financial Statements (Unaudited)
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). In a centrally cleared swap, immediately following execution of the swap agreement, the swap agreement is novated to a central counterparty (the “CCP”) and the Fund’s counterparty on the swap agreement becomes the CCP.
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 or that are centrally cleared.
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 upon 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. Any net amount accrued but not yet paid to a Fund by the counterparty under a swap agreement (i.e., the Fund’s current rights under the swap agreement) is recorded as unrealized appreciation until the amount is paid to the Fund. The Fund’s maximum risk of loss from counterparty credit risk is generally limited to the net payment to be received by the Fund 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.
Notes to Financial Statements (Unaudited)
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. Swap agreements that cannot be terminated or sold within seven days 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. Although centrally cleared swaps typically present less counterparty risk than non-centrally cleared swaps, a Fund that has entered into centrally cleared swaps is subject to the risk of the failure of the CCP. 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) or that are centrally cleared. Certain restrictions imposed on the Funds by the Code may limit a Fund’s ability to use swap agreements. It is possible that developments in the swap market, including additional 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 over-the-counter 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, 2015, 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. As of June 30, 2015, the Frontier Strategy Fund and Total MarketPlus Fund held swap agreements and have disclosed the details in the Portfolio of Investments. No other Funds held swap agreements at June 30, 2015.
The values in the following tables 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 Derivative Instruments as of June 30, 2015(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 | | $ | 27,044 | | | Unrealized loss on swap contracts | | $ | 5,554,046 | |
| | | | | | | | | | | | |
Total | | | | $ | 27,044 | | | | | $ | 5,554,046 | |
| | | | | | | | | | | | |
| Total MarketPlus Fund | | | | | | | | | | | | |
Equity Contracts (Total Return Swaps) | | Unrealized gain on swap contracts | | $ | 188,648 | | | Unrealized loss on swap contracts | | $ | 35,569 | |
| | | | | | | | | | | | |
Total | | | | $ | 188,648 | | | | | $ | 35,569 | |
| | | | | | | | | | | | |
(a) For open derivative instruments as of June 30, 2015, see the Portfolio of Investments. At June 30, 2015, the percentage of the fair value of derivatives to net assets (“derivative activity”) for the Frontier Strategy Fund and the Total MarketPlus Fund was 3.54% and 4.17% less, respectively, than the Funds’ average month-end derivative activity during the past six months. The Portfolio of Investments is representative of the derivative activity for the six months ended June 30, 2015 for the other Funds.
Notes to Financial Statements (Unaudited)
The gains/(losses) in the following table are included in “Net realized gain/(loss)” or “Net change in unrealized gain/(loss)” on the Statement of Operations.
The Effect of Derivative Instruments on the Statement of Operations for the six months ended June 30, 2015:
| | | | | | | | | | |
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 loss on swap contracts/Net change in unrealized appreciation on swap contracts | | $ | (6,071,389 | ) | | $ | 1,510,102 | |
| | | | | | | | | | |
Total | | | | $ | (6,071,389 | ) | | $ | 1,510,102 | |
| | | | | | | | | | |
| Total MarketPlus Fund | | | | | | | | | | |
Equity Contracts (Total Return Swaps) | | Net realized gain on swap contracts/Net change in unrealized depreciation on swap contracts | | $ | 3,532,594 | | | $ | (3,128,587 | ) |
| | | | | | | | | | |
Total | | | | $ | 3,532,594 | | | $ | (3,128,587 | ) |
| | | | | | | | | | |
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 that 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, 2015:
Offsetting of Financial Assets and Derivative Assets(a)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 (b) | | | Cash
Collateral
Received (b) | | | Net
Amount | |
| Frontier Strategy Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Equity Contracts (Total Return Swaps) | | $ | 27,044 | | | $ | — | | | $ | 27,044 | | | $ | (27,044 | ) | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 27,044 | | | $ | — | | | $ | 27,044 | | | $ | (27,044 | ) | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Total MarketPlus Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Equity Contracts (Total Return Swaps) | | $ | 188,648 | | | $ | — | | | $ | 188,648 | | | $ | — | | | $ | — | | | $ | 188,648 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 188,648 | | | $ | — | | | $ | 188,648 | | | $ | — | | | $ | — | | | $ | 188,648 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| U.S. Government Money Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Repurchase Agreements | | $ | 71,000,000 | | | $ | — | | | $ | 71,000,000 | | | $ | (71,000,000 | ) | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 71,000,000 | | | $ | — | | | $ | 71,000,000 | | | $ | (71,000,000 | ) | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Notes to Financial Statements (Unaudited)
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 (b) | | | Cash
Collateral
Pledged (b) | | | Net
Amount | |
| Frontier Strategy Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Equity Contracts (Total Return Swaps) | | $ | 5,554,046 | | | $ | — | | | $ | 5,554,046 | | | $ | (27,044 | ) | | $ | (5,527,002 | ) | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 5,554,046 | | | $ | — | | | $ | 5,554,046 | | | $ | (27,044 | ) | | $ | (5,527,002 | ) | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Total MarketPlus Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Equity Contracts (Total Return Swaps) | | $ | 35,569 | | | $ | — | | | $ | 35,569 | | | $ | — | | | $ | — | | | $ | 35,569 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 35,569 | | | $ | — | | | $ | 35,569 | | | $ | — | | | $ | — | | | $ | 35,569 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
(a) For additional information about enforceable netting arrangements or similar agreements and associated collateral, see disclosures presented in Note 2 of the Notes to the Financial Statements.
(b) These amounts are limited to the derivative asset/liability balance and, accordingly, do not include excess collateral received/pledged which is disclosed in the Portfolio of Investments for financial instruments and in the Statement of Assets and Liabilities for cash collateral.
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.
The 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, 2015, the Funds held no warrants.
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.
Commodity Futures Trading Commission Regulation: The Frontier Strategy Fund, the Total MarketPlus Fund, the Balanced Allocation Fund, the Growth & Income Allocation Fund, the Growth Allocation Fund, the Income & Growth Allocation Fund, and the Multi-Strategy Fund are each subject to regulation as a commodity pool under the Commodity Exchange Act pursuant to rules enacted by the Commodity Futures Trading Commission (the “CFTC”). The Advisor has registered with the CFTC as a Commodity Pool Operator and is a member of the National Futures Association. As a result, additional CFTC-mandated disclosure, reporting and recordkeeping obligations are in effect with respect to these seven Funds. Compliance with
Notes to Financial Statements (Unaudited)
the CFTC’s ongoing regulatory compliance requirements could increase each of these seven Fund’s expenses, adversely affecting its total return.
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 normally distributed annually in December, and a spillover capital gain distribution, if any, is distributed in the year after which a Fund elects to treat the distribution as paid for Federal income tax purposes. There is no guarantee that 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 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 (a portion of which may be reclaimable) or provided for in accordance with the applicable country’s tax rules and rates and are disclosed in the Statement of Operations. 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, 2015, 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. Management does not believe there are any uncertain tax positions that require recognition of a tax liability.
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 of the 1940 Act), shareholder services and/or administrative services plans for a particular class of a Fund are charged to the operations of such class.
ReFlow Transactions: Certain Funds may participate 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
Notes to Financial Statements (Unaudited)
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. 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 six months ended June 30, 2015 are recorded in the Statement of Operations, if applicable.
3. Investment Management Services
On June 9, 2015, Forward Management was acquired by Salient Partners, L.P. (“Salient”), an asset manager headquartered in Houston, Texas advising across a broad spectrum of traditional and alternative investments. Subsequent to the acquisition, Forward Management continues to act as the investment advisor of the Funds as a wholly owned subsidiary of Salient pursuant to a new investment management contract, which is substantially identical to the terms of the Funds’ previous investment management agreement, approved by the shareholders of each Fund and the Board of Trustees (see “Approval of the Investment Management Agreement,” “Additional Company information” and “Shareholder Voting Results” following the Notes to Financial Statements). Pursuant to this new investment management agreement, 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, 2015, based on each Fund’s average daily net assets:
| | | | | | |
| Fund | | Advisory Fee | | Fund | | Advisory Fee |
Frontier Strategy Fund | | 0.85% | | Balanced Allocation Fund | | 0.10%(b) |
| | | |
High Yield Bond Fund | | 0.50% | | Growth & Income Allocation Fund | | 0.10%(b) |
| | | |
Investment Grade Fixed-Income Fund | | 0.25% | | Growth Allocation Fund | | 0.10%(b) |
| | | |
Total MarketPlus Fund | | 0.50% | | Income & Growth Allocation Fund | | 0.10%(b) |
| | | |
U.S. Government Money Fund | | 0.08%(a) | | Income Builder Fund | | 0.10% |
| | | |
| | | | Multi-Strategy Fund | | 0.10% |
(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, 2015, 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, 2017. 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, 2015 were paid by the Underlying Funds.
The Trust and Forward Management have entered into an investment sub-advisory agreement with First Western Capital Management Company
(“First Western”) for the High Yield Bond Fund. Pursuant to the agreement for the High Yield Bond Fund, First Western provides investment sub-advisory services to the Fund and is entitled to receive a fee from Forward Management calculated daily and payable monthly at the annual rate of 0.25% of the Fund’s average daily net assets. Prior to June 9, 2015, Forward Management and First Western were each entitled to receive a fee from the High Yield Bond Fund calculated daily and payable monthly at the annual rate of 0.25% of the Fund’s average daily net assets.
Expense Limitations: Forward Management has entered into Expense Limitation Agreements with certain Funds, which limit the total expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired fund fees
Notes to Financial Statements (Unaudited)
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 | | | 1.29 | % | | | 0.99 | % | | | N/A | | | | N/A | | | | 0.99 | % | | | 0.89 | % | | | April 30, 2017 | |
Investment Grade Fixed-Income Fund | | | 1.15 | % | | | 0.75 | % | | | N/A | | | | N/A | | | | N/A | | | | 0.65 | % | | | April 30, 2017 | |
Total MarketPlus Fund | | | 1.25 | % | | | 0.85 | % | | | N/A | | | | N/A | | | | N/A | | | | 0.75 | % | | | April 30, 2017 | |
Income Builder Fund | | | 0.89 | % | | | 0.39 | % | | | 0.64 | % | | | 1.39 | % | | | N/A | | | | N/A | | | | April 30, 2017 | |
Multi-Strategy Fund | | | 0.89 | % | | | 0.39 | % | | | 0.74 | % | | | 1.39 | % | | | N/A | | | | N/A | | | | April 30, 2017 | |
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 the expense limitation in existence at the time the expenses were incurred or at the time of the reimbursement, whichever 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, 2015, 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 | | $ | 20,053 | | | $ | — | | | $ | 20,053 | |
Institutional Class | | | 130,282 | | | | — | | | | 130,282 | |
Advisor Class | | | 2,204 | | | | — | | | | 2,204 | |
Class Z | | | 3,427 | | | | — | | | | 3,427 | |
| Investment Grade Fixed-Income Fund | | | | | | | | | | | | |
Investor Class | | | 343 | | | | — | | | | 343 | |
Institutional Class | | | 1,536 | | | | — | | | | 1,536 | |
Class Z | | | 15,138 | | | | — | | | | 15,138 | |
| Total MarketPlus Fund | | | | | | | | | | | | |
Investor Class | | | 2,858 | | | | — | | | | 2,858 | |
Institutional Class | | | 21,768 | | | | — | | | | 21,768 | |
Class Z | | | 13,005 | | | | — | | | | 13,005 | |
| Income Builder Fund | | | | | | | | | | | | |
Investor Class | | | 4,414 | | | | — | | | | 4,414 | |
Institutional Class | | | 8,151 | | | | — | | | | 8,151 | |
Class A | | | 3,731 | | | | — | | | | 3,731 | |
Class C | | | 14,523 | | | | — | | | | 14,523 | |
| Multi-Strategy Fund | | | | | | | | | | | | |
Investor Class | | | 1,471 | | | | — | | | | 1,471 | |
Institutional Class | | | 14,688 | | | | — | | | | 14,688 | |
Class A | | | 4,702 | | | | — | | | | 4,702 | |
Class C | | | 2,845 | | | | — | | | | 2,845 | |
Notes to Financial Statements (Unaudited)
As of June 30, 2015, the balances of recoupable expenses for each Fund were as follows:
| | | | | | | | | | | | | | | | | | | | |
| Fund | | 2012 | | | 2013 | | | 2014 | | | 2015 | | | Total | |
| Frontier Strategy Fund | | | | | | | | | | | | | | | | | | | | |
Investor Class | | $ | 500 | | | $ | 8,390 | | | $ | 69,872 | | | $ | 20,053 | | | $ | 98,815 | |
Institutional Class | | | 9,205 | | | | 145,042 | | | | 232,382 | | | | 130,282 | | | | 516,911 | |
Advisor Class | | | 1 | | | | 1,199 | | | | 3,956 | | | | 2,204 | | | | 7,360 | |
Class Z | | | 1,432 | | | | 11,156 | | | | 10,669 | | | | 3,427 | | | | 26,684 | |
| Investment Grade Fixed-Income Fund | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | N/A | | | | N/A | | | | 1,823 | | | | 343 | | | | 2,166 | |
Institutional Class | | | N/A | | | | N/A | | | | 2,203 | | | | 1,536 | | | | 3,739 | |
Class Z | | | N/A | | | | N/A | | | | 17,371 | | | | 15,138 | | | | 32,509 | |
| Total MarketPlus Fund | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | 43 | | | | 2,810 | | | | 4,324 | | | | 2,858 | | | | 10,035 | |
Institutional Class | | | 87 | | | | 37,337 | | | | 42,192 | | | | 21,768 | | | | 101,384 | |
Class Z | | | 98 | | | | 23,390 | | | | 24,460 | | | | 13,005 | | | | 60,953 | |
| Income Builder Fund | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | N/A | | | | 763 | | | | 4,395 | | | | 4,414 | | | | 9,572 | |
Institutional Class | | | N/A | | | | 4,079 | | | | 12,375 | | | | 8,151 | | | | 24,605 | |
Class A | | | N/A | | | | 1,263 | | | | 4,243 | | | | 3,731 | | | | 9,237 | |
Class C | | | N/A | | | | 2,617 | | | | 16,175 | | | | 14,523 | | | | 33,315 | |
| Multi-Strategy Fund | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | N/A | | | | N/A | | | | 1,642 | | | | 1,471 | | | | 3,113 | |
Institutional Class | | | N/A | | | | N/A | | | | 15,006 | | | | 14,688 | | | | 29,694 | |
Class A | | | N/A | | | | N/A | | | | 4,825 | | | | 4,702 | | | | 9,527 | |
Class C | | | N/A | | | | N/A | | | | 3,046 | | | | 2,845 | | | | 5,891 | |
4. Distribution and Shareholder Services Plans
The Funds have adopted Distribution Plans (the “Distribution Plans”) pursuant to Rule 12b-1 of the 1940 Act that allow each of the Funds to pay for the sale and distribution of its shares at an annual rate of up to the following amounts based on each Fund’s daily average net assets:
| | | | | | | | | | | | |
| Fund | | Investor
Class | | | Class A | | | Class C | |
Frontier Strategy Fund | | | 0.25 | % | | | N/A | | | | N/A | |
High Yield Bond Fund | | | 0.25 | % | | | N/A | | | | 0.75 | % |
Investment Grade Fixed-Income Fund | | | 0.25 | % | | | N/A | | | | N/A | |
Total MarketPlus Fund | | | 0.25 | % | | | N/A | | | | N/A | |
U.S. Government Money Fund | | | 0.25 | % | | | N/A | | | | N/A | |
Balanced Allocation Fund | | | 0.25 | % | | | 0.35 | % | | | 0.75 | % |
Growth & Income Allocation Fund | | | 0.25 | % | | | 0.35 | % | | | 0.75 | % |
Growth Allocation Fund | | | 0.25 | % | | | 0.35 | % | | | 0.75 | % |
Income & Growth Allocation Fund | | | 0.25 | % | | | 0.35 | % | | | 0.75 | % |
Income Builder Fund | | | 0.25 | % | | | 0.35 | %(a) | | | 0.75 | % |
Multi-Strategy Fund | | | 0.25 | % | | | 0.35 | % | | | 0.75 | % |
(a) The Fund is currently authorized to pay 0.25% with respect to Class A shares.
Notes to Financial Statements (Unaudited)
The Funds have adopted a shareholder services plan (the “Shareholder Services Plan”) with respect to certain Funds. Under the Shareholder Services Plan, a Fund is authorized to pay third party service providers for non-distribution related services to shareholders. Payments under the Shareholder Services Plan are calculated daily and paid monthly, and are not to exceed the following annual rates:
| | | | | | | | | | | | | | | | |
| Fund | | Investor
Class | | | Institutional
Class | | | Class C | | | Advisor
Class | |
Frontier Strategy Fund | | | 0.15 | % | | | 0.10 | % | | | N/A | | | | 0.10 | % |
High Yield Bond Fund | | | 0.25 | % | | | 0.10 | % | | | 0.25 | % | | | N/A | |
Investment Grade Fixed-Income Fund | | | 0.25 | % | | | 0.10 | % | | | N/A | | | | N/A | |
Total MarketPlus Fund | | | 0.25 | % | | | 0.10 | % | | | N/A | | | | N/A | |
U.S. Government Money Fund | | | None | | | | None | | | | N/A | | | | N/A | |
Balanced Allocation Fund | | | 0.25 | % | | | None | | | | 0.25 | % | | | N/A | |
Growth & Income Allocation Fund | | | 0.25 | % | | | None | | | | 0.25 | % | | | N/A | |
Growth Allocation Fund | | | 0.25 | % | | | None | | | | 0.25 | % | | | N/A | |
Income & Growth Allocation Fund | | | 0.25 | % | | | None | | | | 0.25 | % | | | N/A | |
Income Builder Fund | | | 0.25 | % | | | None | | | | 0.25 | % | | | N/A | |
Multi-Strategy Fund | | | 0.25 | % | | | None | | | | 0.25 | % | | | N/A | |
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 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 Investor Class 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 maximum annual amount payable to Forward Management is up to
0.25% of the average daily net assets of the Investor Class shares of the U.S. Government Money Fund; provided, however, that the U.S. Government Money Fund shall not directly or indirectly pay any distribution or non-distribution related amounts for the Investor Class shares that will be allocated under the Fund’s Rule 12b-1 Distribution Plan. Forward Management has entered into an agreement with the U.S. Government Money Fund to contractually waive through April 30, 2017 the Administrative Plan fees totaling 0.25% of the average daily net assets of the Fund attributable to the Investor class. 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%. Effective December 15, 2014, Forward Management eliminated administrative fees for the U.S. Government Money Fund’s Institutional Class shares.
As of June 30, 2015, the balances of recoupable administrative fees for the U.S. Government Money Fund were as follows:
| | | | | | | | | | | | | | | | | | | | |
| Fund | | 2012 | | | 2013 | | | 2014 | | | 2015 | | | Total | |
| U.S. Government Money Fund | | | | | | | | | | | | | | | | | | | | |
Investor Class | | $ | 7,997 | | | $ | 15,452 | | | $ | 11,171 | | | $ | 6,726 | | | $ | 41,346 | |
The expenses of the U.S. Government Money Fund’s Administrative Plan are reflected as administrative service fees in the Statement of Operations.
Administrator, Custodian, Distributor, Dividend Paying Agent & Transfer Agent
ALPS Fund Services, Inc. (“AFS”) serves as the Funds’ administrator, transfer agent and dividend paying agent.
Notes to Financial Statements (Unaudited)
Citibank serves as the Funds’ custodian.
Forward Securities, LLC, a wholly owned subsidiary of Forward Management, (the “Distributor”) serves as the Funds’ distributor. The Distributor acts as an agent for the Funds and the distributor of their shares.
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, 2015, there were eleven Trustees, ten of whom are not “interested persons” of the Trust within the meaning of that term under the 1940 Act (each, an “Independent Trustee”), and two Advisory Board Members. The Funds pay each Independent Trustee and Advisory Board Member a retainer fee in the amount of $35,000 per year. The Funds pay each Independent Trustee and Advisory Board Member the amount of: $12,500 for attendance in person at a regular meeting and $9,000 for attendance by telephone at a regular meeting; $5,000 for attendance in person or by video conference at a special meeting that is not held in conjunction with a regular meeting and $3,000 for attendance by telephone at a special meeting that is not held in conjunction with a regular meeting; and $1,500 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 $25,000,
$12,500 and $7,500, respectively per year (prior to April 1, 2015, the Chairman of the Board of Trustees received a special retainer fee in the amount of $15,000). The interested Trustee receives no compensation from the Funds. In addition, Independent Trustees and Advisory Board Members receive reimbursements for reasonable out-of-pocket expenses incurred for their services as a Trustee or an Advisory Board Member, including for the transportation and other expenses that they incur in attending meetings.
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, Trustees and Advisory Board Members 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. Purchases and Sales of Investments
Investment transactions for the six months ended June 30, 2015, 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 | | $ | 18,523,076 | | | $ | 19,570,911 | |
High Yield Bond Fund | | | 140,858,595 | | | | 136,598,418 | |
Investment Grade Fixed-Income Fund | | | 32,149,114 | | | | 32,722,195 | |
Total MarketPlus Fund | | | 1,400,131 | | | | 5,907,337 | |
Balanced Allocation Fund | | | 2,335,000 | | | | 4,360,000 | |
Growth & Income Allocation Fund | | | 6,175,265 | | | | 8,755,000 | |
Growth Allocation Fund | | | 8,270,000 | | | | 11,005,000 | |
Income & Growth Allocation Fund | | | 900,000 | | | | 1,810,000 | |
Income Builder Fund | | | 13,850,000 | | | | 15,221,990 | |
Multi-Strategy Fund | | | 1,300,000 | | | | 1,955,409 | |
Investment transactions in U.S. Government Obligations for the six months ended June 30, 2015 were as follows:
| | | | | | | | |
| Fund | | Cost of
Investments
Purchased | | | Proceeds from
Investments Sold | |
Frontier Strategy Fund | | $ | 6,594,770 | | | $ | 7,007,060 | |
Notes to Financial Statements (Unaudited)
8. Tax Basis Information
Tax Basis of Investments: As of June 30, 2015, 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 | | $ | 82,969,562 | | | $ | 109,773 | | | $ | (289,367 | ) | | $ | (179,594 | ) |
High Yield Bond Fund | | | 127,909,075 | | | | 807,742 | | | | (3,491,793 | ) | | | (2,684,051 | ) |
Investment Grade Fixed-Income Fund | | | 10,754,527 | | | | 3 | | | | (76,485 | ) | | | (76,482 | ) |
Total MarketPlus Fund | | | 16,028,479 | | | | 99,770 | | | | (36,832 | ) | | | 62,938 | |
U.S. Government Money Fund | | | 71,000,000 | | | | — | | | | — | | | | — | |
Balanced Allocation Fund | | | 8,907,081 | | | | 347,625 | | | | (186,702 | ) | | | 160,923 | |
Growth & Income Allocation Fund | | | 21,305,385 | | | | 226,987 | | | | (460,503 | ) | | | (233,516 | ) |
Growth Allocation Fund | | | 26,590,117 | | | | 423,690 | | | | (673,208 | ) | | | (249,518 | ) |
Income & Growth Allocation Fund | | | 2,637,972 | | | | 168,022 | | | | (43,352 | ) | | | 124,670 | |
Income Builder Fund | | | 15,161,857 | | | | — | | | | (630,045 | ) | | | (630,045 | ) |
Multi-Strategy Fund | | | 13,990,342 | | | | 410,470 | | | | (530,079 | ) | | | (119,609 | ) |
Capital Losses: Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), capital losses incurred after December 31, 2010 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. As of December 31, 2014, the following Funds had available for Federal income tax purposes unused capital losses that may be used to offset future realized capital gains as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| Fund | | Expiring in
2016(a) | | | Expiring in
2017(a) | | | Expiring in
2018(a) | | | Short-Term(b) | | | Long-Term(b) | | | Total | |
Investment Grade Fixed-Income Fund | | $ | 1,479,849 | | | $ | — | | | $ | 7,106,398 | | | $ | 2,564 | | | $ | 4,332,992 | | | $ | 12,921,803 | |
U.S. Government Money Fund | | | — | | | | 345 | | | | — | | | | 831 | | | | — | | | | 1,176 | |
Balanced Allocation Fund | | | — | | | | — | | | | — | | | | 652,224 | | | | 1,889,641 | | | | 2,541,865 | |
Growth & Income Allocation Fund | | | — | | | | — | | | | — | | | | 529,608 | | | | 4,141,711 | | | | 4,671,319 | |
Growth Allocation Fund | | | — | | | | — | | | | — | | | | 841,754 | | | | 5,360,795 | | | | 6,202,549 | |
Multi-Strategy Fund | | | — | | | | — | | | | — | | | | 791,378 | | | | 2,477,287 | | | | 3,268,665 | |
(a) Capital losses incurred prior to December 31, 2010 under pre-enactment law.
(b) Capital losses incurred after December 31, 2010 under the Act and not subject to expiration.
The Funds elect to defer to the period ending December 31, 2015 capital losses recognized during the period November 1, 2014 to December 31, 2014 in the amount of:
| | | | |
| Fund | | Capital Losses
Total | |
Frontier Strategy Fund | | $ | 5,480,666 | |
High Yield Bond Fund | | | 153,423 | |
Investment Grade Fixed-Income Fund | | | 2,401,487 | |
Balanced Allocation Fund | | | 6,065 | |
Growth & Income Allocation Fund | | | 22,114 | |
Growth Allocation Fund | | | 81,962 | |
Income Builder Fund | | | 49,895 | |
Multi-Strategy Fund | | | 2,517 | |
Notes to Financial Statements (Unaudited)
Tax Character 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 characterizations of distributions and compositions of distributable earnings/(accumulated losses) are finalized at fiscal year-end; accordingly, these tax adjusted amounts have not been determined as of June 30, 2015.
The tax character of distributions paid for the year ended December 31, 2014 were as follows:
| | | | | | | | | | | | |
| Fund | | Ordinary
Income Total | | | Long-Term
Capital Total | | | Return of
Capital Total | |
Frontier Strategy Fund | | $ | — | | | $ | 23,250,212 | | | | — | |
High Yield Bond Fund | | | 8,079,373 | | | | 2,135,123 | | | | — | |
Investment Grade Fixed-Income Fund | | | 400,440 | | | | — | | | | — | |
Total MarketPlus Fund | | | — | | | | 1,271,726 | | | | — | |
U.S. Government Money Fund | | | 9,157 | | | | — | | | | — | |
Balanced Allocation Fund | | | 607,757 | | | | — | | | | — | |
Growth & Income Allocation Fund | | | 1,038,691 | | | | — | | | | — | |
Growth Allocation Fund | | | 1,484,473 | | | | — | | | | — | |
Income & Growth Allocation Fund | | | 316,298 | | | | 751,585 | | | | — | |
Income Builder Fund | | | 858,495 | | | | 740,620 | | | | — | |
Multi-Strategy Fund | | | 735,467 | | | | — | | | | — | |
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.
9. 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, 2015 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balanced Allocation Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
Shares | | | Gross
Purchases | | | Gross
Sales | | | Ending
Shares | | | Value
06/30/2015 | | | Dividend
Income | | | Realized
Gain/(Loss)(a) | |
INVESTMENT COMPANIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward Funds—Class Z shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward Commodity Long/Short Strategy Fund(b) | | | 36,096 | | | | 6,514 | | | | (8,659 | ) | | | 33,951 | | | $ | 640,315 | | | $ | — | | | $ | (11,050 | ) |
Forward Frontier Strategy Fund | | | 24,163 | | | | 11,824 | | | | (17,495 | ) | | | 18,492 | | | | 181,591 | | | | — | | | | (9,428 | ) |
Forward High Yield Bond Fund | | | 25,998 | | | | 3,600 | | | | (10,323 | ) | | | 19,275 | | | | 186,581 | | | | 5,846 | | | | 1,056 | |
Forward Investment Grade Fixed-Income Fund | | | 239,223 | | | | 15,591 | | | | (36,723 | ) | | | 218,091 | | | | 2,379,374 | | | | 23,140 | | | | 22,732 | |
Forward Total MarketPlus Fund | | | 36,420 | | | | 4,234 | | | | (19,985 | ) | | | 20,669 | | | | 842,669 | | | | — | | | | 85,421 | |
Forward Funds—Institutional Class shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward Credit Analysis Long/Short Fund(b) | | | 93,320 | | | | — | | | | (44,299 | ) | | | 49,021 | | | | 360,306 | | | | 7,338 | | | | 3,072 | |
Forward Dynamic Income Fund(b) | | | 20,522 | | | | 960 | | | | (4,016 | ) | | | 17,466 | | | | 446,782 | | | | 16,981 | | | | (2,629 | ) |
Forward EM Corporate Debt Fund(b) | | | 102,144 | | | | 22,989 | | | | (41,618 | ) | | | 83,515 | | | | 710,712 | | | | 22,888 | | | | (28,712 | ) |
Forward International Dividend Fund(b) | | | 222,869 | | | | 86,569 | | | | (66,628 | ) | | | 242,810 | | | | 1,779,796 | | | | 56,642 | | | | 8,808 | |
Forward International Real Estate Fund(b) | | | 10,822 | | | | 5,540 | | | | (6,489 | ) | | | 9,873 | | | | 151,360 | | | | 3,395 | | | | (10,480 | ) |
Forward Real Estate Fund(b) | | | 8,802 | | | | 14,828 | | | | (16,732 | ) | | | 6,898 | | | | 99,947 | | | | 545 | | | | 17,315 | |
Forward Select EM Dividend Fund(b) | | | 65,495 | | | | 23,498 | | | | (45,291 | ) | | | 43,702 | | | | 851,322 | | | | 17,688 | | | | (128,726 | ) |
Forward Select Opportunity Fund(b) | | | 21,078 | | | | 2,058 | | | | (5,723 | ) | | | 17,413 | | | | 437,249 | | | | 6,396 | | | | 1,948 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | $ | 9,068,004 | | | $ | 160,859 | | | $ | (50,673 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Notes to Financial Statements (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Growth & Income Allocation Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
Shares | | | Gross
Purchases | | | Gross
Sales | | | Ending
Shares | | | Value
06/30/2015 | | | Dividend
Income | | | Realized
Gain/(Loss)(a) | |
INVESTMENT COMPANIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward Funds—Class Z shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward Commodity Long/Short Strategy Fund(b) | | | 83,953 | | | | 16,930 | | | | (23,638 | ) | | | 77,245 | | | $ | 1,456,843 | | | $ | — | | | $ | (19,339 | ) |
Forward Frontier Strategy Fund | | | 64,533 | | | | 28,502 | | | | (34,911 | ) | | | 58,124 | | | | 570,781 | | | | — | | | | (20,226 | ) |
Forward High Yield Bond Fund | | | 29,005 | | | | 5,166 | | | | (8,707 | ) | | | 25,464 | | | | 246,489 | | | | 8,306 | | | | 18 | |
Forward Investment Grade Fixed-Income Fund | | | 318,011 | | | | 42,510 | | | | (44,253 | ) | | | 316,268 | | | | 3,450,487 | | | | 33,655 | | | | (5,378 | ) |
Forward Total MarketPlus Fund | | | 103,760 | | | | 13,912 | | | | (52,416 | ) | | | 65,256 | | | | 2,660,473 | | | | — | | | | (7,883 | ) |
Forward Funds—Institutional Class shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward Credit Analysis Long/Short Fund(b) | | | 123,320 | | | | 2,766 | | | | (53,809 | ) | | | 72,277 | | | | 531,232 | | | | 10,657 | | | | 2,581 | |
Forward Dynamic Income Fund(b) | | | 45,153 | | | | 1,520 | | | | (4,988 | ) | | | 41,685 | | | | 1,066,308 | | | | 39,608 | | | | (3,669 | ) |
Forward EM Corporate Debt Fund(b) | | | 135,231 | | | | 31,059 | | | | (43,337 | ) | | | 122,953 | | | | 1,046,333 | | | | 33,403 | | | | (30,484 | ) |
Forward International Dividend Fund(b) | | | 642,102 | | | | 280,576 | | | | (155,753 | ) | | | 766,925 | | | | 5,621,558 | | | | 180,718 | | | | 18,705 | |
Forward International Real Estate Fund(b) | | | 26,161 | | | | 4,962 | | | | (7,485 | ) | | | 23,638 | | | | 362,376 | | | | 7,200 | | | | (12,838 | ) |
Forward Real Estate Fund(b) | | | 22,015 | | | | 10,011 | | | | (11,953 | ) | | | 20,073 | | | | 290,858 | | | | 1,649 | | | | 14,175 | |
Forward Select EM Dividend Fund(b) | | | 188,970 | | | | 85,176 | | | | (134,578 | ) | | | 139,568 | | | | 2,718,793 | | | | 57,135 | | | | (403,768 | ) |
Forward Select Opportunity Fund(b) | | | 44,385 | | | | 4,115 | | | | (6,710 | ) | | | 41,790 | | | | 1,049,338 | | | | 15,047 | | | | 2,247 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | $ | 21,071,869 | | | $ | 387,378 | | | $ | (465,859 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Growth Allocation Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
Shares | | | Gross
Purchases | | | Gross
Sales | | | Ending
Shares | | | Value
06/30/2015 | | | Dividend
Income | | | Realized
Gain/(Loss)(a) | |
INVESTMENT COMPANIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward Funds— Class Z shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward Commodity Long/Short Strategy Fund(b) | | | 34,653 | | | | 4,298 | | | | (3,851 | ) | | | 35,100 | | | $ | 661,984 | | | $ | — | | | $ | (5,537 | ) |
Forward Frontier Strategy Fund | | | 107,175 | | | | 50,631 | | | | (70,011 | ) | | | 87,795 | | | | 862,142 | | | | — | | | | (27,358 | ) |
Forward High Yield Bond Fund | | | 24,829 | | | | 5,120 | | | | (8,225 | ) | | | 21,724 | | | | 210,291 | | | | 6,371 | | | | 837 | |
Forward Investment Grade Fixed-Income Fund | | | 235,300 | | | | 38,014 | | | | (33,472 | ) | | | 239,842 | | | | 2,616,675 | | | | 24,618 | | | | (7,706 | ) |
Forward Total MarketPlus Fund | | | 146,187 | | | | 22,983 | | | | (73,320 | ) | | | 95,850 | | | | 3,907,809 | | | | — | | | | 49,346 | |
Forward Funds—Institutional Class shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward Credit Analysis Long/Short Fund(b) | | | 88,393 | | | | 13,373 | | | | (49,689 | ) | | | 52,077 | | | | 382,765 | | | | 7,365 | | | | 1,983 | |
Forward Dynamic Income Fund(b) | | | 54,112 | | | | 1,713 | | | | (3,858 | ) | | | 51,967 | | | | 1,329,326 | | | | 49,221 | | | | (3,386 | ) |
Forward EM Corporate Debt Fund(b) | | | 102,579 | | | | 28,218 | | | | (40,423 | ) | | | 90,374 | | | | 769,081 | | | | 24,491 | | | | (27,829 | ) |
Forward International Dividend Fund(b) | | | 929,359 | | | | 397,542 | | | | (196,608 | ) | | | 1,130,293 | | | | 8,285,050 | | | | 265,831 | | | | 11,708 | |
Forward International Real Estate Fund(b) | | | 75,865 | | | | 6,757 | | | | (13,699 | ) | | | 68,923 | | | | 1,056,584 | | | | 22,539 | | | | (25,058 | ) |
Forward Real Estate Fund(b) | | | 63,594 | | | | 16,567 | | | | (18,061 | ) | | | 62,100 | | | | 899,832 | | | | 5,007 | | | | 26,533 | |
Forward Select EM Dividend Fund(b) | | | 274,069 | | | | 125,473 | | | | (192,476 | ) | | | 207,066 | | | | 4,033,638 | | | | 83,725 | | | | (580,001 | ) |
Forward Select Opportunity Fund(b) | | | 58,647 | | | | 981 | | | | (6,843 | ) | | | 52,785 | | | | 1,325,422 | | | | 18,867 | | | | 3,428 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | $ | 26,340,599 | | | $ | 508,035 | | | $ | (583,040 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Notes to Financial Statements (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income & Growth Allocation Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
Shares | | | Gross
Purchases | | | Gross
Sales | | | Ending
Shares | | | Value
06/30/2015 | | | Dividend
Income | | | Realized
Gain/(Loss)(a) | |
INVESTMENT COMPANIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward Funds—Class Z shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward Commodity Long/Short Strategy Fund(b) | | | 9,755 | | | | 1,326 | | | | (3,725 | ) | | | 7,356 | | | $ | 138,733 | | | $ | — | | | $ | (3,263 | ) |
Forward Frontier Strategy Fund | | | 6,553 | | | | 4,897 | | | | (9,980 | ) | | | 1,470 | | | | 14,436 | | | | — | | | | (6,380 | ) |
Forward High Yield Bond Fund | | | 11,177 | | | | 5,115 | | | | (7,701 | ) | | | 8,591 | | | | 83,160 | | | | 2,480 | | | | 2,768 | |
Forward Investment Grade Fixed-Income Fund | | | 110,901 | | | | 6,743 | | | | (27,022 | ) | | | 90,622 | | | | 988,681 | | | | 10,120 | | | | 25,852 | |
Forward Total MarketPlus Fund | | | 6,786 | | | | 1,210 | | | | (3,686 | ) | | | 4,310 | | | | 175,721 | | | | — | | | | 43,535 | |
Forward Funds—Institutional Class shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward Credit Analysis Long/Short Fund(b) | | | 39,699 | | | | 3,365 | | | | (20,153 | ) | | | 22,911 | | | | 168,399 | | | | 3,394 | | | | 1,419 | |
Forward Dynamic Income Fund(b) | | | 6,716 | | | | — | | | | (1,930 | ) | | | 4,786 | | | | 122,432 | | | | 5,521 | | | | (1,729 | ) |
Forward EM Corporate Debt Fund(b) | | | 46,821 | | | | 8,621 | | | | (20,235 | ) | | | 35,207 | | | | 299,608 | | | | 10,152 | | | | (13,388 | ) |
Forward Emerging Markets Fund(b) | | | 25,122 | | | | 9,460 | | | | (19,165 | ) | | | 15,417 | | | | 161,262 | | | | — | | | | (2,912 | ) |
Forward International Dividend Fund(b) | | | 49,228 | | | | 29,864 | | | | (30,239 | ) | | | 48,853 | | | | 358,095 | | | | 10,618 | | | | (3,659 | ) |
Forward International Real Estate Fund(b) | | | 6,512 | | | | 6,532 | | | | (9,743 | ) | | | 3,301 | | | | 50,603 | | | | 584 | | | | (2,001 | ) |
Forward Real Estate Fund(b) | | | 4,536 | | | | 4,844 | | | | (3,516 | ) | | | 5,864 | | | | 84,968 | | | | 420 | | | | 523 | |
Forward Select Opportunity Fund(b) | | | 6,757 | | | | 2,010 | | | | (4,126 | ) | | | 4,641 | | | | 116,544 | | | | 1,954 | | | | 1,387 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | $ | 2,762,642 | | | $ | 45,243 | | | $ | 42,152 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Income Builder Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
Shares | | | Gross
Purchases | | | Gross
Sales | | | Ending
Shares | | | Value
06/30/2015 | | | Dividend
Income | | | Realized
Gain/(Loss)(a) | |
INVESTMENT COMPANIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward Funds—Class Z shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward High Yield Bond Fund | | | 169,240 | | | | 255,155 | | | | (199,983 | ) | | | 224,412 | | | $ | 2,172,309 | | | $ | 89,171 | | | $ | (95,200 | ) |
Forward Funds—Institutional Class shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward Credit Analysis Long/Short Fund(b) | | | 216,654 | | | | 590,740 | | | | (807,394 | ) | | | — | | | | — | | | | — | | | | 2,800 | |
Forward EM Corporate Debt Fund(b) | | | 449,678 | | | | 14,422 | | | | (40,285 | ) | | | 423,815 | | | | 3,606,666 | | | | 131,200 | | | | (37,541 | ) |
Forward Global Infrastructure Fund(b) | | | 76,457 | | | | — | | | | (76,457 | ) | | | — | | | | — | | | | — | | | | (68,047 | ) |
Forward International Dividend Fund(b) | | | 221,138 | | | | 681,348 | | | | (408,293 | ) | | | 494,193 | | | | 3,622,434 | | | | 100,435 | | | | (96,284 | ) |
Forward Real Estate Fund(b) | | | 102,723 | | | | — | | | | (102,723 | ) | | | — | | | | — | | | | — | | | | 101,696 | |
Forward Select EM Dividend Fund(b) | | | — | | | | 77,753 | | | | — | | | | 77,753 | | | | 1,514,628 | | | | 3,906 | | | | — | |
Forward Select Income Fund(b) | | | 157,773 | | | | 7,759 | | | | (21,190 | ) | | | 144,342 | | | | 3,615,775 | | | | 78,395 | | | | 560 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | $ | 14,531,812 | | | $ | 403,107 | | | $ | (192,016 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Notes to Financial Statements (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Multi-Strategy Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
Shares | | | Gross
Purchases | | | Gross
Sales | | | Ending
Shares | | | Value
06/30/2015 | | | Dividend
Income | | | Realized
Gain/(Loss)(a) | |
INVESTMENT COMPANIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward Funds—Class Z shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward Commodity Long/Short Strategy Fund(b) | | | 19,495 | | | | — | | | | (9,995 | ) | | | 9,500 | | | $ | 179,165 | | | $ | — | | | $ | (5,161 | ) |
Forward Frontier Strategy Fund | | | 76,421 | | | | — | | | | (20,100 | ) | | | 56,321 | | | | 553,072 | | | | — | | | | (5,807 | ) |
Forward Funds—Institutional Class shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward Credit Analysis Long/Short Fund(b) | | | 20,188 | | | | — | | | | (20,188 | ) | | | — | | | | — | | | | 1,018 | | | | (404 | ) |
Forward Dynamic Income Fund(b) | | | 67,321 | | | | 17,136 | | | | (1,918 | ) | | | 82,539 | | | | 2,111,341 | | | | 69,302 | | | | (384 | ) |
Forward EM Corporate Debt Fund(b) | | | 10,834 | | | | 46,458 | | | | — | | | | 57,292 | | | | 487,554 | | | | 17,249 | | | | — | |
Forward Emerging Markets Fund(b) | | | 257,118 | | | | — | | | | (28,276 | ) | | | 228,842 | | | | 2,393,686 | | | | — | | | | (23,192 | ) |
Forward Equity Long/Short Fund(c) | | | 37,331 | | | | — | | | | (37,331 | ) | | | — | | | | — | | | | 68,901 | | | | (112,148 | ) |
Forward Global Infrastructure Fund(b) | | | 19,678 | | | | — | | | | (2,055 | ) | | | 17,623 | | | | 418,010 | | | | 4,062 | | | | 5,713 | |
Forward International Dividend Fund(b) | | | 231,514 | | | | — | | | | — | | | | 231,514 | | | | 1,696,997 | | | | 54,407 | | | | — | |
Forward International Real Estate Fund(b) | | | 25,919 | | | | — | | | | — | | | | 25,919 | | | | 397,342 | | | | 7,907 | | | | — | |
Forward Real Estate Long/Short Fund(b) | | | 54,205 | | | | — | | | | (1,399 | ) | | | 52,806 | | | | 1,775,347 | | | | 5,610 | | | | 8,504 | |
Forward Select Income Fund(b) | | | 31,086 | | | | — | | | | — | | | | 31,086 | | | | 778,703 | | | | 16,781 | | | | — | |
Forward Select Opportunity Fund(b) | | | 34,050 | | | | — | | | | (1,952 | ) | | | 32,098 | | | | 805,978 | | | | 11,167 | | | | 1,191 | |
Forward Tactical Enhanced Fund(b) | | | 80,513 | | | | — | | | | — | | | | 80,513 | | | | 1,835,691 | | | | — | | | | — | |
Forward Tactical Growth Fund(b) | | | — | | | | 17,117 | | | | — | | | | 17,117 | | | | 437,847 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | $ | 13,870,733 | | | $ | 256,404 | | | $ | (131,688 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(a) Includes net realized gains on affiliated investments and long-term capital gain distributions received from the affiliated underlying funds.
(b) Forward Commodity Long/Short Strategy Fund, Forward Credit Analysis Long/Short Fund, Forward Dynamic Income Fund, Forward EM Corporate Debt Fund, Forward Emerging Markets Fund, Forward Global Infrastructure Fund, Forward International Dividend Fund, Forward International Real Estate Fund, Forward Real Estate Fund, Forward Real Estate Long/Short Fund, Forward Select EM Dividend Fund, Forward Select Income Fund, Forward Select Opportunity Fund, Forward Tactical Enhanced Fund and Forward Tactical Growth Fund’s June 30, 2015 Semi-Annual Report may be obtained at www.forwardinvesting.com.
(c) Effective close of business on April 24, 2015, the Forward Equity Long/Short Fund was liquidated per the terms of the Board approved plan of liquidation.
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. Regulatory Matters
In July 2014, the SEC adopted amendments to Rule 2a-7 under the 1940 Act that govern the operations of money market funds. The amendments will require certain money market funds to sell and redeem shares at prices based on their market value (i.e., a floating net asset value). Also, the amendments will allow money market funds to impose liquidity fees and suspend redemptions temporarily and impose new requirements related to diversification, stress testing and disclosure. The amendments have staggered compliance dates with a majority of the amendments effective October 16, 2016. The degree to which a money market fund will be impacted by the rule amendments will depend upon the type of fund and
type of investors. At this time, Forward Management is evaluating the impact of these rule amendments on the U.S. Government Money Fund.
12. Change of Independent Registered Public Accounting Firm
At a meeting held on June 9, 2015, the Board of Trustees selected KPMG LLP (“KPMG”) to serve as the Funds’ independent registered public accounting firm for the Funds’ fiscal year ending December 31, 2015. The decision to select KPMG followed the withdrawal of the previously selected registered public accounting firm, PricewaterhouseCoopers LLP (“PwC”), due to an independence issue resulting from the acquisition of Forward Management by Salient Partners. During the Funds’ fiscal years ended December 31, 2014 and December 31, 2013, and through June 9, 2015, neither the Funds, their portfolios, nor anyone on their behalf, consulted with KPMG on items that: (i) concerned the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that
Notes to Financial Statements (Unaudited)
might be rendered on the Funds’ financial statements; or (ii) concerned the subject of a disagreement (as defined in paragraph (a)(1)(iv) of Item 304 of Regulation S-K under the Securities Exchange Act of 1934) or reportable events (as described in paragraph (a)(1)(iv) of said Item 304).
Throughout the Funds’ two most recent fiscal years, and through June 9, 2015, the Funds had no disagreements with PwC on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedures, and there were no reportable events of the kind described in Item 304(a)(1)(v) of Regulation S-K. With respect to the Funds, PwC’s audit opinions for the past two fiscal years, have not contained either an adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope or accounting principles.
13. 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, 2015. However, the following are details relating to the subsequent events through the date the financial statements were issued.
The following information applies to the Income & Growth Allocation Fund only:
Liquidation of Income & Growth Allocation Fund: On June 9, 2015, the Board of Trustees of Forward Funds, 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 Income & Growth Allocation Fund (the “Fund”), a series of the Trust. The Fund was liquidated pursuant to a Board-approved Plan of Liquidation on August 12, 2015 (the “Liquidation Date”). On the Liquidation Date, the 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 following information applies to the U.S. Government Money Fund only:
Liquidation of U.S. Government Fund: On June 9, 2015, the Board of Trustees of Forward Funds, 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 U.S. Government Money Fund (the “Government Fund”), a series of the Trust. The Government Fund was liquidated pursuant to a Board-approved Plan of Liquidation on or around August 26, 2015 (the “Liquidation Date”). On the Liquidation Date, the Government Fund distributed pro rata to its respective shareholders of record all of the assets of the Government 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 Government Fund on the Government 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.
The following information applies to the Investment Grade Fixed-Income Fund only:
At a meeting of the Board of Trustees, held on June 9, 2015, the Trustees, including all of the independent Trustees, approved, on behalf of the Investment Grade Fixed-Income Fund: (i) changes to the principal investment strategies of the Investment Grade Fixed-Income Fund, to be effective August 25, 2015; and (ii) the addition of a member to the Investment Grade Fixed-Income Fund’s investment team, to be effective August 25, 2015.
Change to Principal Investment Strategies: Effective August 25, 2015, the Fund’s Principal Investment Strategies will be as follows:
Under normal conditions, the Investment Grade Fixed-Income Fund invests at least 80% of its net assets plus borrowings for investment purposes, if any, in investment grade debt securities or synthetic or other instruments that have similar economic characteristics to investment grade debt securities. The Fund primarily invests in bonds and exchange-traded funds (“ETFs”). The Fund also can opportunistically invest in swaps, futures and other synthetic instruments (including credit default swaps and other instruments linked to credit default indices) that provide exposures to investment grade quality U.S. corporate bonds, U.S. Government or agency securities and mortgage-backed and asset-backed securities. The Fund’s duration will typically be within four years of the Fund’s benchmark, the Barclays U.S. Government/Credit Bond Index (the “Benchmark”), although the duration may vary based on Forward Management’s view of market conditions. Duration is the measure of price sensitivity of a debt security or portfolio of debt securities to relative changes in interest rates. For instance, a duration of “three”
Notes to Financial Statements (Unaudited)
means that a portfolio’s or security’s price would be expected to decrease by approximately 3% with a 1% increase in interest rates (assuming a parallel shift in the yield curve). As of March 31, 2015, the Benchmark’s duration was 6.27.
Addition of Portfolio Manager: Effective August 25, 2015, Lee G. Partridge, Chief Investment Officer, will be added as a member of the Investment Grade Fixed-Income Fund’s investment team. Mr. Partridge will be responsible for leading the investment team.
The following information applies to the Balanced Allocation Fund, Growth & Income Allocation Fund, Growth Allocation Fund, Income & Growth Allocation Fund, Income Builder Fund and Multi-Strategy Fund only:
Change to Principal Investment Strategies: Effective August 24, 2015, the Allocation Funds will have the ability to invest in certain of the related
investment companies managed by subsidiaries of Salient. Accordingly,
effective August 24, 2015, the principal investment strategy for each Allocation Fund will be modified as follows:
The Fund is a “fund of funds” that primarily invests in other Forward Funds and certain of the related investment companies managed by subsidiaries of Salient.
The following information applies to the Multi-Strategy Fund only:
Change to Principal Investment Strategies: Effective August 24, 2015, the Multi-Strategy Fund’s Principal Investment Strategies shall be revised as follows:
The strategies and asset classes of the Underlying Funds may include: long/short strategies, momentum strategies, tactical strategies, U.S. equity, frontier and emerging market, international equity, U.S. fixed-income, international fixed-income, and money market.
The Funds file a complete schedule of portfolio holdings with the Securities and Exchange Commission (“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, 2015. 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 SEC’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, 2015 are available (i) without charge, upon request, by calling 1-800-999-6809 and (ii) on the SEC’s website at www.sec.gov.
Approval of the Investment Management Agreement and Investment Sub-Advisory Agreement (Unaudited)
The Board of Trustees (the “Board”) of the Trust oversees the management of each series of the Trust and, as required by law, initially approves, and determines annually whether to renew, the investment advisory and sub-advisory agreements for management of each series of the Trust.
At a special in-person meeting of the Board held on January 13, 2015, the Board, including all of the Independent Trustees, unanimously voted to approve a new investment advisory agreement (the “New Advisory Agreement”) between Forward Management and the Trust on behalf of the Funds for an initial two-year period, subject to approval by the shareholders of each Fund and effective upon the closing of the acquisition of Forward Management by Salient (the “Transaction”). The successful closing of the Transaction would result in a change of control of Forward Management, which, in turn, would result in the automatic termination of any existing investment advisory agreement as required by the Investment Company Act. As a result, for Forward Management to continue to serve as investment advisor to the Funds after the Transaction, it was necessary for the Board to approve the New Advisory Agreement. The New Advisory Agreement is substantially identical to the previous investment advisory agreement between the Trust and Forward Management (the “Previous Advisory Agreement”), which the Board had reviewed and approved at an in-person meeting of the Board held on December 10, 2014. The Board acknowledged that its duties under Section 15(c) of the Investment Company Act with respect to the Board’s consideration and approval of the Previous Advisory Agreement would be equally applicable to the Board’s deliberations and approval of the New Advisory Agreement. For the reasons summarized below, the Board concluded that approval of the New Advisory Agreement resulting from the Transaction was in the best interests of each Fund and its shareholders. The New Advisory Agreement became effective on June 9, 2015 following approval by the shareholders of each Fund and the closing of the Transaction.
Also at the January 13, 2015 meeting, the Board, including all of the Independent Trustees, unanimously voted to approve the new sub-advisory agreement between the Trust, Forward Management and First Western Capital Management Company (“First Western” or the “Sub-Advisor”) (the “New Sub-Advisory Agreement,” and together with the New Advisory Agreement, the “New Agreements”) on behalf of the Forward High Yield Bond Fund.
The New Sub-Advisory Agreement is substantially identical to the previous sub-advisory agreement between the Trust, Forward Management and First Western (the “Previous Sub-Advisory Agreement,” and together with the Previous Advisory Agreement, the “Previous Agreements”), with the exception of its initial term and the prescribed payment method of the sub-advisory fee. Furthermore, the nature, extent and quality of services to be provided under
the New Sub-Advisory Agreement do not differ from those contemplated by the Previous Sub-Advisory Agreement. The Previous Sub-Advisory Agreement had an initial term of up to thirteen months, whereas the New Sub-Advisory Agreement states that it will remain in full force and effect for a period of up to two years for its initial term, with continuation thereafter contingent on annual approval of renewal by the Board. The Previous Agreements provided for the payment of First Western’s sub-advisory fee by the Forward High Yield Bond Fund, whereas the New Agreements provide that Forward Management will pay First Western’s sub-advisory fee out of the advisory fee that Forward Management receives from the Forward High Yield Bond Fund. This new payment method reflects a more conventional arrangement whereby the Fund pays the total management fee to the advisor, and the advisor compensates the sub-advisor out of that fee. Neither the total management fee paid by the Forward High Yield Bond Fund nor the fees retained by Forward Management and the fees received by First Western for their advisory services have been changed as compared to the fees under the Previous Agreements. The Independent Trustees also consulted with their independent legal counsel, discussing, among other things, the legal standards and certain other considerations relevant to the Board members’ deliberations. For the reasons summarized below, the Board concluded that approval of the New Sub-Advisory Agreement was in the best interests of the Forward High Yield Bond Fund and its shareholders. The New Sub-Advisory Agreement became effective on June 9, 2015 pursuant to an exemptive order from the U.S. Securities and Exchange Commission that permits Forward Management, subject to Board approval, to hire non-affiliated sub-advisors for the Forward High Yield Bond Fund without shareholder approval.
Beginning in September of 2014 and over the course of the Board’s due diligence in connection with its consideration of the New Agreements and the Transaction, the Independent Trustees solicited and received ongoing advice regarding the Board’s legal duties from independent legal counsel to the Independent Trustees. And with assistance from their legal counsel, the Independent Trustees also prepared written and oral requests for information from Forward Management, the Sub-Advisor and Salient regarding the Transaction, Previous Agreements and New Agreements, including details regarding each entity’s anticipated business plan for continuing operations after the Transaction. At in-person meetings of the Board on September 15-16, 2014, October 27, 2014, December 10, 2014, and January 13, 2015, the Board received and reviewed written responses and in-person presentations by senior management personnel from Forward Management, the Sub-Advisor and Salient (the “15(c) Materials”) to enable the Board to evaluate the terms of the Previous Agreements and the New Agreements.
In certain sessions, the Independent Trustees met alone with only their legal counsel present. At other times, the Independent Trustees engaged in formal
Approval of the Investment Management Agreement and Investment Sub-Advisory Agreement (Unaudited)
and informal discussions among themselves, their legal counsel, and representatives of Forward Management, the Sub-Advisor and Salient as they deemed necessary.
Discussed below are the factors the Board considered in approving the New Agreements. This discussion is not intended to be all-inclusive. The Board reviewed a variety of factors and considered a significant amount of information, including the 15(c) Materials and information received on an ongoing basis at Board and Board committee meetings.
In connection with its approval of the New Agreements on January 13, 2015, the Board considered its conclusions in connection with its September 15-16, 2014 and December 10, 2014 approvals of the Previous Agreements, including the Board’s general satisfaction with the nature and quality of services being provided by Forward Management and the Sub-Advisor under the Previous Agreement. Therefore, in considering the New Agreements, the Board focused its review on, and requested and evaluated other information relating to, the potential impact of the Transaction on the operations, personnel, organizational structure, capitalization, and financial and other resources of Forward Management, the Sub-Advisor and each entity’s affiliates that render advisory, administrative, distribution, compliance, and other services to the Funds. Also in connection with its January 13, 2015 approval of the New Agreements, the Board took into account that, commencing in September of 2014, it had posed ongoing inquiries related to the Transaction and received regular updates and information in response from Forward Management and Salient. In particular, the Board considered assurances from Forward Management and Salient that neither was aware of any additional developments unrelated to the Transaction and not already disclosed to the Board or its representatives since September 15-16, 2014 and December 10, 2014 that would be a material consideration to the Board in connection with its consideration of the New Agreements. Accordingly, a substantial portion of this review was conducted as part of, and in conjunction with, the Board’s annual review of the Previous Agreements, during which the Board was aware that it likely would be asked in the near future to consider approval of the New Agreements.
On September 15-16, 2014 and December 10, 2014, the Board concluded, in light of all factors it considered, that the approval of the Previous Agreements was in the best interests of each Fund and its shareholders and that the fee rates set forth in the Previous Agreements were fair and reasonable. Among other factors, the Board considered: (1) the nature and quality of services provided and to be provided under the Previous Agreements; (2) the extent to which economies of scale are reflected in fee schedules under the Previous Agreements; (3) the existence of any “fall-out” benefits to Forward Management, the Sub-Advisor and each entity’s
affiliates, if applicable; (4) a comparison of fee rates, expense ratios, and investment performance to those of similar funds; and (5) the costs incurred and profits realized by Forward Management, the Sub-Advisor and each entity’s affiliates with respect to their services to each Fund. A further description of the considerations taken into account by the Board in approving the continuation of the Previous Agreements, including the information reviewed, certain material factors considered, and certain related conclusions reached, is available in the Forward Funds’ annual reports for the most recent fiscal year ended December 31, 2014.
The Board considered representations by Forward Management and its affiliates, as well as related supporting documentation and advice from legal counsel, indicating that the New Advisory Agreement is substantially similar to and, in any event, no less favorable to the Funds than, the terms of the Previous Advisory Agreement (including the fees payable thereunder). The Board also considered additional advice provided by legal counsel relating to the New Advisory Agreement, including advice relating to the process and timing of seeking shareholder approval. The Board considered that Forward Management and Salient agreed to bear the expenses associated with obtaining Board and shareholder approval of the New Advisory Agreement and that the Funds would not bear any costs associated with the Transaction. The Board also noted that the agreement between Forward Management and Salient governing the Transaction contained representations that no “unfair burden” would be imposed on the Funds following the closing of the Transaction, in accordance with Section 15(f) of the Investment Company Act.
The Board’s consideration of the New Agreements focused on, among other matters, the expectations for continuity and stability of Forward Management throughout the implementation of the Transaction and thereafter, as well as the potential impact of the Transaction on the sub-advisory services provided by the Sub-Advisor. The Board carefully considered Forward Management’s anticipated future plans related to operational matters and levels of staffing and related compensation structures. In this regard, the Independent Trustees noted that they had requested and received assurances that: (i) Forward Management and its affiliates are committed to maintaining appropriate levels of overall staffing, ongoing resources and service quality; (ii) Forward Management and the Sub-Advisor each could be expected to provide services of the same nature, extent, and quality under the New Agreements as were provided thereby, respectively, under the Previous Agreements; and (iii) the Transaction was not expected to result in any material changes to the investment objective of or the principal investment strategies used to manage any of the Funds. In addition, the Board considered representations by Forward Management and Salient and their affiliates that Forward Management’s ownership by Salient as
Approval of the Investment Management Agreement and Investment Sub-Advisory Agreement (Unaudited)
contemplated by the Transaction, including changes in certain key officers, would not lead to a reduction in the quality or scope of these and other services provided to the Funds.
The Board considered acknowledgements from Salient of the importance of Forward Management continuing to be able to operate in the interests of Fund shareholders. Also, the Board considered the potential benefits that may be realized by Forward Management and its affiliates as a result of the continuation of their relationship with the Funds under the New Advisory Agreement. In addition, the Board considered that, following the Transaction, the Board will continue to monitor on a regular basis the ability of Forward Management and its affiliates to comply with their undertakings and to monitor on an ongoing basis the quality of services to, and expenses of, the Funds. Additionally, the Board considered that, under the New Advisory Agreement, it will continue to have the authority, should the need arise in its view, to terminate the New Advisory Agreement without penalty upon 60 days’ notice.
In this connection, the Board generally was satisfied with the nature and quality of the services expected to be provided by Forward Management to the Funds following the Transaction, including investment advisory, administrative, and support services, and has decided that it would be in the Funds’ best interests to maintain continuity and stability of the services currently being provided.
In addition, the Board considered, among other things, the following:
1. A representation from Salient that all contractual expense limitations for the Forward Funds in place as of January 13, 2015 or put in place prior to May 1, 2015 would be continued through at least April 30, 2017 should the Transaction be completed.
2. A representation from Salient that neither Forward Management nor Salient will propose any increases to any asset-based or per account fees borne by the Funds, to the extent such fees are within the control of Salient or Forward Management, for at least the two-year period following the Transaction.
3. A representation from Salient that should the Transaction be completed, Forward Management would engage in good faith discussions with the Board on a going forward basis with respect to the desirability of continuing the various expense limitation agreements in place for the Funds and imposing new expense limitation agreements should circumstances give rise to material increases in the Funds’ expense ratios.
In reaching its determination to approve the New Advisory Agreement, the Board considered the additional resources that were expected to be made available to the Funds and Forward Management as a result of the Transaction, the fact that Forward Management would become part of a larger asset management firm as a result of the Transaction, and that the Transaction was not expected to have any material impact on the Funds’ investment strategies.
In this connection, the Board noted that no one factor was determinative of its decisions which, instead, were premised upon the totality of factors considered. The approval determinations were made on the basis of each Board member’s business judgment after consideration of all of the information taken as a whole. The Board also noted that different Trustees likely placed emphasis on different factors in reaching their individual conclusions to approve in favor of the New Agreements.
Based on the foregoing and other relevant considerations, the Board, including all of the Independent Trustees, concluded that, in light of all factors considered, the terms of the New Agreements, including fee rates, were fair and reasonable, and that it would be in the best interests of the shareholders of each Fund to approve the New Agreements so as to enable there to be a continuation without interruption of the current services being provided by Forward Management and the Sub-Advisor pursuant to the Previous Agreements. Based on the Trustees’ deliberations and their evaluation of the information described above, the Trustees, including all of the Independent Trustees, unanimously approved, with respect to the Funds, the New Advisory Agreement and the New Sub-Advisory Agreement.
Additional Company Information (Unaudited)
Board of Trustees
The Trust’s Board of Trustees oversees the management and business of the Funds. The Trustees are elected by shareholders of the Trust, or, in certain circumstances, may be appointed by the other Trustees. There are currently eleven Trustees, ten of whom are not “interested persons” of the Trust as that term is defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (each an “Independent Trustee” and together, the “Independent Trustees”) and two Advisory Board Members. The Trustees, Advisory Board Members and Officers of the Trust, along with their affiliations over the last five years, are set forth below. The Trust’s Statement of Additional Information includes additional information about the Trustees and is available at forwardinvesting.com or upon request, without charge, by calling 800-999-6809.
Independent Trustees:
| | | | | | | | | | |
Name,
Address,
and Year of
Birth* | | Position(s)
Held with
the Trust | | Term of
Office and
Length of
Time Served** | | Principal Occupation(s) During Past Five Years | | Number of
Funds in Fund
Complex
Overseen by
Trustee | | Other
Directorships
Held by
Trustee*** |
Haig G. Mardikian Year of Birth: 1947 | | Chairman | | Since 1998+ | | Owner of Haig G. Mardikian Enterprises, a real estate investment business (since 1971); General Partner of M&B Development, a real estate investment business (since 1983); General Partner of George M. Mardikian Enterprises, a real estate investment business (1983 to 2002); President and Director of Adiuvana-Invest, Inc., a real estate investment business (since 1989); Director of PCG Asset Management, a private equity investment advisor (2001 to 2011); President of the William Saroyan Foundation (since 1992); Managing Director of the United Broadcasting Company, radio broadcasting (1983 to 2001); Trustee of the International House of UC Berkeley (2001 to 2007); Director of the Downtown Association of San Francisco (1982 to 2006); Director of the Market Street Association (1982 to 2006); Trustee of Trinity College (1998 to 2007); Trustee of the Herbert Hoover Presidential Library (since 1997); Trustee of the Herbert Hoover Foundation (since 2002); Trustee of the Advisor California Civil Liberties Public Education Fund (1997 to 2006); Director of The Walnut Management Co., a privately held family investment company (since 2008); President of the Foundation of City College (2006 to 2010); Director of Near East Foundation (since 2007). | | 29 | | Chairman and Director of SIFE Trust Fund (1978 to 2001). |
| | | | | |
Donald O’Connor Year of Birth:1936 | | Trustee | | Since 2000+ | | Financial Consultant (since 1997); Retired Vice President of Operations, Investment Company Institute (“ICI”), a mutual fund trade association (1969 to 1993); Executive Vice President and Chief Operating Officer, ICI Mutual Insurance Company, an insurance company (1987 to 1997); Chief, Branch of Market Surveillance, Securities and Exchange Commission (1964 to 1969). | | 29 | | Trustee of the Advisors Series Trust (47 funds) (since 1997). |
Additional Company Information (Unaudited)
| | | | | | | | | | |
Name,
Address,
and Year of
Birth* | | Position(s)
Held with
the Trust | | Term of
Office and
Length of
Time Served** | | Principal Occupation(s) During Past Five Years | | Number of
Funds in Fund
Complex
Overseen by
Trustee | | Other
Directorships
Held by
Trustee*** |
Cecilia H. Herbert Year of Birth: 1949 | | Trustee, Nominating Committee Chairperson | | Since 2009+ | | Director (2000 to 2013) and President (2007 to 2010) of the Board, Catholic Charities CYO; Member, Archdiocese Finance Committee, the advisory council to the San Francisco Catholic Archdiocese (since 1994); Trustee, The Thacher School (2002 to 2011); Trustee, WNET, the public media company of New York (since 2011); Managing Director and head of San Francisco Office, J.P. Morgan/Morgan Guaranty Trust Company, a commercial and investment banking institution (1973 to 1976 and 1978 to 1991). | | 29 | | Director, iShares Inc. (since 2005) and iShares MSCI Russia Capped ETF, Inc. (since 2010), and Trustee, iShares Trust (since 2005) and iShares U.S. ETF Trust (since 2011) (collectively, 335 funds); Trustee, Pacific Select Funds (2004 to 2005); Trustee, The Montgomery Funds (1992 to 2003). |
| | | | | |
Julie Allecta Year of Birth: 1946 | | Trustee, Audit Committee Chairperson | | Since 2012+ | | Retired Partner, Paul Hastings, Janofsky & Walker LLP (1999 to 2009); Member of Governing Council, Independent Directors Council (since 2014); Vice President and Director, WildCare Bay Area (since 2007); Director, Audubon Canyon Ranch, Inc. (2009 to 2014); Parliamentarian and Director, American Society of Botanical Artists, Northern California Chapter (2014). | | 29 | | Trustee, Litman Gregory Funds Trust (four funds) (since 2013). |
| | | | | |
A. John Gambs Year of Birth: 1945 | | Trustee | | Since 2012+ | | Director and Compensation Committee Chair, NMI Holdings, Inc. (2011 to 2012); Trustee and Audit Committee Chair, Barclays Global Investors Funds (2006 to 2010); Trustee and Audit Committee Chair, Master Investment Portfolio (2006 to 2010); Advisory Board Member, Fairview Capital Management (since 2009); Director, San Francisco Classical Voice (since 2011); Member, Board of Governors San Francisco Symphony (since 2001); Director, The New Century Chamber Orchestra (since 2010); Executive Vice President and Chief Financial Officer, The Charles Schwab Corporation (1988 to 1996); President and Director, Gambs Family Foundation (1997 to 2010). | | 29 | | None. |
Additional Company Information (Unaudited)
| | | | | | | | | | |
Name,
Address,
and Year of
Birth* | | Position(s)
Held with
the Trust | | Term of
Office and
Length of
Time Served** | | Principal Occupation(s) During Past Five Years | | Number of
Funds in Fund
Complex
Overseen by
Trustee | | Other
Directorships
Held by
Trustee*** |
Karin B. Bonding, CFA Year of Birth: 1939 | | Trustee | | Since 2015+ | | Lecturer, University of Virginia (1996 to 2015); President of Capital Markets Institute, Inc. (fee-only financial planner and investment advisor) (since 1996). | | 29 | | Salient MF Trust (seven funds) (since 2012); The Endowment Funds (five funds) (since 2010); Salient MLP & Energy Infrastructure Fund (2011 to 2014); Salient Midstream & MLP Fund (since 2012); Salient Alternative Strategies Funds (two funds) (since 2010); Brandes Investment Trust (2006 to 2012); Credit Suisse Alternative Capital Funds (2005 to 2010). |
| | | | | |
Jonathan P. Carroll Year of Birth: 1961 | | Trustee | | Since 2015+ | | President, Lazarus Capital LLC (holding company) (since 2006); President, Lazarus Energy Holdings, LLC (holding company) (since 2006); President and Chief Executive Officer, Blue Dolphin Energy Company (since 2012); private investor (since 1995). | | 29 | | Salient MF Trust (seven funds) (since 2012); The Endowment Funds (five funds) (since 2004); The PMF Funds (three funds) (since 2014); Salient MLP & Energy Infrastructure Fund (2011 to 2014); Salient Midstream & MLP Fund (since 2012); Salient Alternative Strategies Funds (two funds) (since 2010); LRR Energy, L.P. (energy company) (since 2014); Blue Dolphin Energy Company (energy company) (since 2014). |
Additional Company Information (Unaudited)
| | | | | | | | | | |
Name,
Address,
and Year of
Birth* | | Position(s)
Held with
the Trust | | Term of
Office and
Length of
Time Served** | | Principal Occupation(s) During Past Five Years | | Number of
Funds in Fund
Complex
Overseen by
Trustee | | Other
Directorships
Held by
Trustee*** |
Dr. Bernard A. Harris, Jr. Year of Birth: 1956 | | Trustee | | Since 2015+ | | Chief Executive Officer and Managing Partner, Vesalius Ventures, Inc. (venture investing) (since 2002); President of The Space Agency (marketing) (since 1999); President of The Harris Foundation (non-profit) (since 1998); clinical scientist, flight surgeon and astronaut for NASA (1986 to 1996); Member, Board of Directors, National Math and Science Initiative (since 2008); Member, Board of Directors, The Space Agency (since 2008); Member, Board of Directors, Communities in Schools (since 2007); Member, Board of Directors, American Telemedicine Association (since 2007); Director, U.S. Physical Therapy, Inc. (since 2005); Director, Houston Technology Center (since 2004); Member, Board of Directors, Houston Angel Network (since 2004). | | 29 | | Salient MF Trust (seven funds) (since 2012); The Endowment Funds (five funds) (since 2009); Salient MLP & Energy Infrastructure Fund (2011 to 2014); Salient Midstream & MLP Fund (since 2012); Salient Alternative Strategies Funds (two funds) (since 2010); Babson Funds (five funds) (since 2011); Monebo Technologies Inc. (medical) (since 2009); Sterling Bancshares, Inc. (2007 to 2014). |
| | | | | |
Richard C. Johnson Year of Birth: 1937 | | Trustee | | Since 2015+ | | Senior Counsel (retired), Baker Botts LLP (law firm); Managing Partner, Baker Botts (1998 to 2002); practiced law at Baker Botts (1966 to 2002, including from 1972 to 2002 as a partner). | | 29 | | Salient MF Trust (seven funds) (since 2012); The Endowment Funds (five funds) (since 2004); The PMF Funds (three funds) (since 2014); Salient MLP & Energy Infrastructure Fund (2011 to 2014); Salient Midstream & MLP Fund (since 2012); Salient Alternative Strategies Funds (two funds) (since 2010). |
Additional Company Information (Unaudited)
| | | | | | | | | | |
Name,
Address,
and Year of
Birth* | | Position(s)
Held with
the Trust | | Term of
Office and
Length of
Time Served** | | Principal Occupation(s) During Past Five Years | | Number of
Funds in Fund
Complex
Overseen by
Trustee | | Other
Directorships
Held by
Trustee*** |
Scott E. Schwinger Year of Birth: 1965 | | Trustee | | Since 2015+ | | President, The McNair Group (management) (since 2006); Senior Vice President and Chief Financial Officer, The Houston Texans (professional football team) (since 1999), Member, Board of Directors, The Make-A-Wish Foundation, Texas Gulf Coast and Louisiana (since 2008); Member, Board of Directors, YES Prep Public Schools (2001 to 2014); Director, Houston Technology Center (since 2013). | | 29 | | Salient MF Trust (seven funds) (since 2012); The Endowment Funds (five funds) (since 2004); The PMF Funds (three funds) (since 2014); Salient MLP & Energy Infrastructure Fund (2011 to 2014); Salient Midstream & MLP Fund (since 2012); Salient Alternative Strategies Funds (two funds) (since 2012). |
Interested Trustee:
| | | | | | | | | | |
Name,
Address,
and Year of
Birth* | | Position(s)
Held with
the Trust | | Term of
Office and
Length of Time
Served** | | Principal Occupation(s) During Past Five Years | | Number of
Funds in Fund
Complex
Overseen by
Trustee | | Other
Directorships
Held by
Trustee*** |
| John A. Blaisdell**** Year of Birth: 1960 | | President, Trustee | | Since 2015+ | | Chief Executive Officer and Director of Forward Management, LLC, an investment advisor (since 2015); Member, Investment Committee of Salient Advisors, L.P. (since 2002); Managing Director of Salient Partners, L.P. (since 2002). | | 29 | | Salient MF Trust (seven funds) (since 2012); The Endowment Funds (five funds) (since 2004); The PMF Funds (three funds) (since 2014); Salient MLP & Energy Infrastructure Fund (2011 to 2014); Salient Midstream & MLP Fund (since 2012); Salient Alternative Strategies Funds (two funds) (since 2012). |
| * | Each Trustee may be contacted by writing to the Trustee, c/o Forward Management, LLC, 101 California Street, 16th Floor, San Francisco, CA 94111. |
| ** | Each Trustee will hold office for an indefinite term until the earliest of (i) the next meeting of shareholders, if any, called for the purpose of considering the election or re-election of such Trustee and until the election and qualification of his successor, if any, elected at such meeting; or (ii) the date a Trustee resigns or retires, or a Trustee is removed by the Board of Trustees or shareholders, in accordance with the Trust’s Amended and Restated Agreement and Declaration of Trust (the “Declaration of Trust”). |
Additional Company Information (Unaudited)
| *** | This column includes only directorships of companies required to report to the SEC under the Securities Exchange Act of 1934 (i.e., public companies) or other investment companies registered under the 1940 Act. |
| **** | Mr. Blaisdell is considered an interested Trustee because he acts as Chief Executive Officer of Forward Management, LLC, the Funds’ investment advisor, and holds other positions with an affiliate of the Trust. |
| + | Messrs. Mardikian, and O’Connor have served as Trustee to the Trust since May 1, 2005. However, beginning on the date indicated in the chart, Messrs. Mardikian, and O’Connor served as a director for the nine series of Forward Funds, Inc., which were reorganized as series of the Trust effective July 1, 2005. Ms. Herbert was appointed as a Trustee effective November 9, 2009. Ms. Allecta was appointed as a Trustee effective January 1, 2012 and elected by shareholders of the Trust as a Trustee effective June 9, 2015. Mr. Gambs was appointed as a Trustee effective December 31, 2012 and elected by shareholders of the Trust as a Trustee effective June 9, 2015. Messrs. Blaisdell, Carroll, Harris, Johnson, and Schwinger and Ms. Bonding were each elected by shareholders of the Trust as a Trustee effective June 9, 2015. |
Advisory Board Members:
| | | | | | | | | | |
Name,
Address,
and Year of
Birth | | Position(s)
Held with
the Trust | | Term of Office
and Length of
Time Served* | | Principal Occupation(s) During Past Five Years | | Number of
Funds in Fund
Complex
Served by
Advisory Board
Member | | Directorships
Held by Advisory Board
Member |
DeWitt F. Bowman 101 California Street, 16th Floor San Francisco, CA 94111 Year of Birth: 1930 | | Advisory Board Member | | Since 2015 | | Pension Investment Consulting, a consulting company (since 1994); Interim Treasurer and Vice President for Investments, University of California (2000 to 2001); Treasurer of Pacific Pension Institute, a non-profit education organization (1994 to 2002); Treasurer of Edgewood Center for Children and Families, a non-profit care center (1994 to 2004); Director, Episcopal Diocese of California, a non-profit religious organization (1964 to 2008); Trustee of the Pacific Gas and Electric Nuclear Decommissioning Trust Fund, a nuclear decommissioning trust (since 1994); Chief Investment Officer, California Public Employees Retirement System (1989 to 1994). | | 29 | | Trustee, Forward Funds (2006 to 2015)+; Trustee, Brandes Mutual Funds (1995 to 2012); Lead Director, RREEF America III REIT (2007 to 2012); Director, RREEF America I REIT (2004 to 2007); Trustee, PCG Private Equity Fund (since 1994). |
| | | | | |
G. Edward Powell 101 California Street, 16th Floor San Francisco, CA 94111 Year of Birth: 1936 | | Advisory Board Member | | Since 2015 | | Principal of Mills & Stowell (private equity) (since 2002); Managing Partner, PriceWaterhouse & Co., Houston office (1982 to 1994) ; Therapy Track, LLC (2009 to 2012); Director, Global Water Technologies, Inc.; Director, Datavox Holdings, Inc.; Energy Services International, Inc. (2004 to 2013). | | 29 | | Salient MF Trust (seven funds) (since 2012); The Endowment Funds (five funds) (since 2004); The PMF Funds (three funds) (since 2014); Salient MLP & Energy Infrastructure Fund (2011 to 2014); Salient Midstream & MLP Fund (since 2012); Salient Alternative Strategies Funds (two funds) (since 2012). |
| * | Each Advisory Board member will hold office for an indefinite term, except that any Advisory Board member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. |
| + | Since 2000, Mr. Bowman also served as a director for the nine series of Forward Funds, Inc., which were reorganized as series of the Trust effective July 1, 2005. |
Additional Company Information (Unaudited)
Officers:
| | | | | | |
Name, Address, and Year of Birth* | | Position(s)
Held with
the Trust | | Term of
Office and
Length of
Time Served | | Principal Occupation(s) During Past Five Years |
Robert S. Naka 101 California Street, 16th Floor San Francisco, CA 94111 Year of Birth: 1963 | | Vice President and Secretary | | Vice President since 2009 and Secretary since 2012 | | President, Trust (2015); Chief Operating Officer, Forward Management, LLC (since 2009); Interim Chief Executive Officer, Forward Management, LLC (2015); Principal & Chief Operating Officer, Anew Capital Management LLC (2007 to 2009); Executive Vice President & Chief Operating Officer, ING Funds & Predecessors (1989 to 2007). |
| | | |
Barbara H. Tolle 101 California Street, 16th Floor San Francisco, CA 94111 Year of Birth: 1949 | | Treasurer | | Since 2006 | | Vice President, Director of Fund Accounting and Operations, Forward Management, LLC (since 2006); Vice President and Director, Fund Accounting and Administration, PFPC Inc. (1998 to 2006). |
| | | |
Judith M. Rosenberg 101 California Street, 16th Floor San Francisco, CA 94111 Year of Birth: 1948 | | Chief Compliance Officer and Chief Legal Officer | | Since 2005 | | Chief Compliance Officer, Forward Management, LLC (2005 to 2015); Chief Compliance Officer and Secretary, Forward Securities, LLC (since 2010); First Vice President and Senior Attorney, Morgan Stanley (1984 to 1997; 2002 to 2005); Director of Compliance, Morgan Stanley Online (1997 to 2002). |
| | | |
Kathryn A. Burns 1290 Broadway, Suite 1100 Denver, CO 80203 Year of Birth: 1976 | | Assistant Treasurer | | Since 2014 | | Assistant Vice President and Fund Controller, ALPS Fund Services, Inc. (since 2013); Vice President and Chief Compliance Officer, Old Mutual Capital (2010 to 2012); Vice President and Regulatory Reporting Manager, Old Mutual Capital (2006 to 2012); Manager, PricewaterhouseCoopers LLP (2004 to 2006). |
| * | Each officer shall hold office at the pleasure of the Board of Trustees until the next annual meeting of the Trust or until his or her successor is duly elected and qualified, or until he or she dies, resigns, is removed or becomes disqualified. |
Shareholder Voting Results (Unaudited)
Forward Funds
Special Meeting of Shareholders
May 6, 2015
May 29, 2015
Special Meetings of the Shareholders of each of the series of Forward Funds (the “Trust”), were held on May 6, 2015 (the “May 6, 2015 Meeting”) and May 29, 2015 (the “May 29, 2015 Meeting”) to approve proposals in connection with the acquisition of Forward Funds’ investment advisor, Forward Management, LLC (“Forward Management”) by Salient Partners, L.P. (the “Transaction”), which closed on June 9, 2015 and resulted in a change of control of Forward Management. In addition, shareholders were asked to approve the election of eight Trustees to serve on the Board of Trustees of the Trust (the “Board”). The following Trustees, who currently serve on the Board, were previously elected or appointed to the Board prior to May 6, 2015: Julie Allecta, A. John Gambs, Cecilia H. Herbert, Haig G. Mardikian, and Donald E. O’Connor.
At the May 6, 2015 Meeting, the shareholders of the Forward Balanced Allocation Fund, Forward Frontier Strategy Fund, Forward Growth & Income Allocation Fund, Forward Growth Allocation Fund; Forward High Yield Bond Fund, Forward Income Builder Fund, Forward Income & Growth Allocation Fund, Forward Investment Grade Fixed-Income Fund, Forward Multi-Strategy Fund, Forward Total MarketPlus Fund and Forward U.S. Government Money Fund (each, a “Fund”) approved the following proposals:
Forward Balanced Allocation Fund
Proposal 1. To approve a new investment advisory agreement between the Fund and Forward Management, the Fund’s current investment advisor, as a result of the Transaction:
Votes in favor represented 71.870% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 257,333.989 | | | | 37.901% | |
Against | | | 1,223.683 | | | | 0.180% | |
Abstain | | | 14,139.508 | | | | 2.083% | |
Broker Non-Vote | | | 85,359.000 | | | | 12.572% | |
| | | | | | | | |
Total | | | 358,056.180 | | | | 52.736% | |
Proposal 4. To elect eight Trustees to serve until their successors are elected and qualified, provided that the election of nominees 4c through 4h as Trustees is contingent upon and will not be effective until the closing of the Transaction:
4a. Julie Allecta
Votes in favor represented 95.784% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 342,958.875 | | | | 50.512% | |
Withhold | | | 15,097.305 | | | | 2.224% | |
| | | | | | | | |
Total | | | 358,056.180 | | | | 52.736% | |
4b. A. John Gambs
Votes in favor represented 95.784% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 342,958.875 | | | | 50.512% | |
Withhold | | | 15,097.305 | | | | 2.224% | |
| | | | | | | | |
Total | | | 358,056.180 | | | | 52.736% | |
Shareholder Voting Results (Unaudited)
4c. Karin B. Bonding
Votes in favor represented 95.784% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 342,958.875 | | | | 50.512% | |
Withhold | | | 15,097.305 | | | | 2.224% | |
| | | | | | | | |
Total | | | 358,056.180 | | | | 52.736% | |
4d. Jonathan P. Carroll
Votes in favor represented 95.784% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 342,958.875 | | | | 50.512% | |
Withhold | | | 15,097.305 | | | | 2.224% | |
| | | | | | | | |
Total | | | 358,056.180 | | | | 52.736% | |
4e. Dr. Bernard A. Harris
Votes in favor represented 95.784% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 342,958.875 | | | | 50.512% | |
Withhold | | | 15,097.305 | | | | 2.224% | |
| | | | | | | | |
Total | | | 358,056.180 | | | | 52.736% | |
4f. Richard C. Johnson
Votes in favor represented 95.784% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 342,958.875 | | | | 50.512% | |
Withhold | | | 15,097.305 | | | | 2.224% | |
| | | | | | | | |
Total | | | 358,056.180 | | | | 52.736% | |
4g. Scott E. Schwinger
Votes in favor represented 95.784% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 342,958.875 | | | | 50.512% | |
Withhold | | | 15,097.305 | | | | 2.224% | |
| | | | | | | | |
Total | | | 358,056.180 | | | | 52.736% | |
4h. John A. Blaisdell
Votes in favor represented 95.784% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 342,958.875 | | | | 50.512% | |
Withhold | | | 15,097.305 | | | | 2.224% | |
| | | | | | | | |
Total | | | 358,056.180 | | | | 52.736% | |
Shareholder Voting Results (Unaudited)
Forward Frontier Strategy Fund
Proposal 1. To approve a new investment advisory agreement between the Fund and Forward Management, the Fund’s current investment advisor, as a result of the Transaction:
Votes in favor represented 81.034% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 8,895,942.262 | | | | 80.242% | |
Against | | | 34,426.048 | | | | 0.311% | |
Abstain | | | 15,892.000 | | | | 0.143% | |
Broker Non-Vote | | | 2,031,757.000 | | | | 18.327% | |
| | | | | | | | |
Total | | | 10,978,017.310 | | | | 99.023% | |
Proposal 4. To elect eight Trustees to serve until their successors are elected and qualified, provided that the election of nominees 4c through 4h as Trustees is contingent upon and will not be effective until the closing of the Transaction:
4a. Julie Allecta
Votes in favor represented 99.334% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 10,904,886.310 | | | | 98.363% | |
Withhold | | | 73,131.000 | | | | 0.660% | |
| | | | | | | | |
Total | | | 10,978,017.310 | | | | 99.023% | |
4b. A. John Gambs
Votes in favor represented 99.093% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 10,878,454.262 | | | | 98.124% | |
Withhold | | | 99,563.048 | | | | 0.898% | |
| | | | | | | | |
Total | | | 10,978,017.310 | | | | 99.022% | |
4c. Karin B. Bonding
Votes in favor represented 99.199% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 10,890,124.353 | | | | 98.230% | |
Withhold | | | 87,892.957 | | | | 0.793% | |
| | | | | | | | |
Total | | | 10,978,017.310 | | | | 99.023% | |
4d. Jonathan P. Carroll
Votes in favor represented 98.958% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 10,893,634.353 | | | | 97.991% | |
Withhold | | | 114,382.957 | | | | 1.032% | |
| | | | | | | | |
Total | | | 10,978,017.310 | | | | 99.023% | |
Shareholder Voting Results (Unaudited)
4e. Dr. Bernard A. Harris
Votes in favor represented 99.080% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 10,877,051.353 | | | | 98.112% | |
Withhold | | | 100,965.957 | | | | 0.911% | |
| | | | | | | | |
Total | | | 10,978,017.310 | | | | 99.023% | |
4f. Richard C. Johnson
Votes in favor represented 99.080% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 10,877,051.353 | | | | 98.112% | |
Withhold | | | 100,965.957 | | | | 0.911% | |
| | | | | | | | |
Total | | | 10,978,017.310 | | | | 99.023% | |
4g. Scott E. Schwinger
Votes in favor represented 99.080% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 10,877,051.353 | | | | 98.112% | |
Withhold | | | 100,965.957 | | | | 0.911% | |
| | | | | | | | |
Total | | | 10,978,017.310 | | | | 99.023% | |
4h. John A. Blaisdell
Votes in favor represented 99.080% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 10,877,051.353 | | | | 98.112% | |
Withhold | | | 100,965.957 | | | | 0.911% | |
| | | | | | | | |
Total | | | 10,978,017.310 | | | | 99.023% | |
Forward Growth & Income Allocation Fund
Proposal 4. To elect eight Trustees to serve until their successors are elected and qualified, provided that the election of nominees 4c through 4h as Trustees is contingent upon and will not be effective until the closing of the Transaction:
4a. Julie Allecta
Votes in favor represented 96.919% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 781,566.731 | | | | 51.321% | |
Withhold | | | 24,842.849 | | | | 1.631% | |
| | | | | | | | |
Total | | | 806,409.580 | | | | 52.952% | |
Shareholder Voting Results (Unaudited)
4b. A. John Gambs
Votes in favor represented 97.162% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 783,525.439 | | | | 51.450% | |
Withhold | | | 22,884.141 | | | | 1.503% | |
| | | | | | | | |
Total | | | 806,409.580 | | | | 52.953% | |
4c. Karin B. Bonding
Votes in favor represented 96.919% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 781,566.731 | | | | 51.321% | |
Withhold | | | 24,842.849 | | | | 1.631% | |
| | | | | | | | |
Total | | | 806,409.580 | | | | 52.952% | |
4d. Jonathan P. Carroll
Votes in favor represented 97.136% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 783,310.439 | | | | 51.436% | |
Withhold | | | 23,099.141 | | | | 1.517% | |
| | | | | | | | |
Total | | | 806,409.580 | | | | 52.953% | |
4e. Dr. Bernard A. Harris
Votes in favor represented 97.162% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 783,525.439 | | | | 51.450% | |
Withhold | | | 22,884.141 | | | | 1.503% | |
| | | | | | | | |
Total | | | 806,409.580 | | | | 52.953% | |
4f. Richard C. Johnson
Votes in favor represented 97.162% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 783,525.439 | | | | 51.450% | |
Withhold | | | 22,884.141 | | | | 1.503% | |
| | | | | | | | |
Total | | | 806,409.580 | | | | 52.953% | |
4g. Scott E. Schwinger
Votes in favor represented 97.162% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 783,525.439 | | | | 51.450% | |
Withhold | | | 22,884.141 | | | | 1.503% | |
| | | | | | | | |
Total | | | 806,409.580 | | | | 52.953% | |
Shareholder Voting Results (Unaudited)
4h. John A. Blaisdell
Votes in favor represented 97.162% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 783,525.439 | | | | 51.450% | |
Withhold | | | 22,884.141 | | | | 1.503% | |
| | | | | | | | |
Total | | | 806,409.580 | | | | 52.953% | |
Forward Growth Allocation Fund
Proposal 1. To approve a new investment advisory agreement between the Fund and Forward Management, the Fund’s current investment advisor, as a result of the Transaction:
Votes in favor represented 67.024% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 866,322.454 | | | | 43.764% | |
Against | | | 21,359.000 | | | | 1.079% | |
Abstain | | | 6,854.676 | | | | 0.346% | |
Broker Non-Vote | | | 398,020.000 | | | | 20.107% | |
| | | | | | | | |
Total | | | 1,292,556.130 | | | | 65.296% | |
Proposal 4. To elect eight Trustees to serve until their successors are elected and qualified, provided that the election of nominees 4c through 4h as Trustees is contingent upon and will not be effective until the closing of the Transaction:
4a. Julie Allecta
Votes in favor represented 97.858% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,264,872.454 | | | | 63.897% | |
Withhold | | | 27,683.676 | | | | 1.398% | |
| | | | | | | | |
Total | | | 1,292,556.130 | | | | 65.295% | |
4b. A. John Gambs
Votes in favor represented 97.793% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,264,027.924 | | | | 63.854% | |
Withhold | | | 28,528.206 | | | | 1.441% | |
| | | | | | | | |
Total | | | 1,292,556.130 | | | | 65.295% | |
4c. Karin B. Bonding
Votes in favor represented 97.793% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,264,027.924 | | | | 63.854% | |
Withhold | | | 28,528.206 | | | | 1.441% | |
| | | | | | | | |
Total | | | 1,292,556.130 | | | | 65.295% | |
Shareholder Voting Results (Unaudited)
4d. Jonathan P. Carroll
Votes in favor represented 97.793% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,264,027.924 | | | | 63.854% | |
Withhold | | | 28,528.206 | | | | 1.441% | |
| | | | | | | | |
Total | | | 1,292,556.130 | | | | 65.295% | |
4e. Dr. Bernard A. Harris
Votes in favor represented 97.858% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,264,872.454 | | | | 63.897% | |
Withhold | | | 27,683.676 | | | | 1.398% | |
| | | | | | | | |
Total | | | 1,292,556.130 | | | | 65.295% | |
4f. Richard C. Johnson
Votes in favor represented 97.793% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,264,027.924 | | | | 63.854% | |
Withhold | | | 28,528.206 | | | | 1.441% | |
| | | | | | | | |
Total | | | 1,292,556.130 | | | | 65.295% | |
4g. Scott E. Schwinger
Votes in favor represented 97.793% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,264,027.924 | | | | 63.854% | |
Withhold | | | 28,528.206 | | | | 1.441% | |
| | | | | | | | |
Total | | | 1,292,556.130 | | | | 65.295% | |
4h. John A. Blaisdell
Votes in favor represented 97.858% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 1,264,872.454 | | | | 63.897% | |
Withhold | | | 27,683.676 | | | | 1.398% | |
| | | | | | | | |
Total | | | 1,292,556.130 | | | | 65.295% | |
Forward High Yield Bond Fund
Proposal 1. To approve a new investment advisory agreement between the Fund and Forward Management, the Fund’s current investment advisor, as a result of the Transaction:
Votes in favor represented 80.080% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 10,006,825.091 | | | | 68.145% | |
Against | | | 45,934.000 | | | | 0.313% | |
Abstain | | | 69,349.223 | | | | 0.472% | |
Broker Non-Vote | | | 2,373,948.000 | | | | 16.166% | |
| | | | | | | | |
Total | | | 12,496,056.314 | | | | 85.096% | |
Shareholder Voting Results (Unaudited)
Proposal 4. To elect eight Trustees to serve until their successors are elected and qualified, provided that the election of nominees 4c through 4h as Trustees is contingent upon and will not be effective until the closing of the Transaction:
4a. Julie Allecta
Votes in favor represented 99.564% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 12,441,511.091 | | | | 84.724% | |
Withhold | | | 54,545.223 | | | | 0.371% | |
| | | | | | | | |
Total | | | 12,496,056.314 | | | | 85.095% | |
4b. A. John Gambs
Votes in favor represented 99.568% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 12,442,048.091 | | | | 84.728% | |
Withhold | | | 54,008.223 | | | | 0.368% | |
| | | | | | | | |
Total | | | 12,496,056.314 | | | | 85.096% | |
4c. Karin B. Bonding
Votes in favor represented 99.555% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 12,440,448.091 | | | | 84.717% | |
Withhold | | | 55,608.223 | | | | 0.379% | |
| | | | | | | | |
Total | | | 12,496,056.314 | | | | 85.096% | |
4d. Jonathan P. Carroll
Votes in favor represented 99.545% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 12,439,175.091 | | | | 84.709% | |
Withhold | | | 56,881.223 | | | | 0.387% | |
| | | | | | | | |
Total | | | 12,496,056.314 | | | | 85.096% | |
4e. Dr. Bernard A. Harris
Votes in favor represented 99.555% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 12,440,413.091 | | | | 84.717% | |
Withhold | | | 55,643.223 | | | | 0.379% | |
| | | | | | | | |
Total | | | 12,496,056.314 | | | | 85.096% | |
4f. Richard C. Johnson
Votes in favor represented 99.486% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 12,431,810.091 | | | | 84.658% | |
Withhold | | | 64,246.223 | | | | 0.438% | |
| | | | | | | | |
Total | | | 12,496,056.314 | | | | 85.096% | |
Shareholder Voting Results (Unaudited)
4g. Scott E. Schwinger
Votes in favor represented 99.554% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 12,440,329.091 | | | | 84.716% | |
Withhold | | | 55,727.223 | | | | 0.379% | |
| | | | | | | | |
Total | | | 12,496,056.314 | | | | 85.095% | |
4h. John A. Blaisdell
Votes in favor represented 99.558% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 12,440,814.091 | | | | 84.720% | |
Withhold | | | 55,242.223 | | | | 0.376% | |
| | | | | | | | |
Total | | | 12,496,056.314 | | | | 85.096% | |
Forward Income Builder Fund
Proposal 4. To elect eight Trustees to serve until their successors are elected and qualified, provided that the election of nominees 4c through 4h as Trustees is contingent upon and will not be effective until the closing of the Transaction:
4a. Julie Allecta
Votes in favor represented 95.110% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 644,987.991 | | | | 59.383% | |
Withhold | | | 33,164.255 | | | | 3.053% | |
| | | | | | | | |
Total | | | 678,152.246 | | | | 62.436% | |
4b. A. John Gambs
Votes in favor represented 95.110% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 644,987.991 | | | | 59.383% | |
Withhold | | | 33,164.255 | | | | 3.053% | |
| | | | | | | | |
Total | | | 678,152.246 | | | | 62.436% | |
4c. Karin B. Bonding
Votes in favor represented 95.110% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 644,987.991 | | | | 59.383% | |
Withhold | | | 33,164.255 | | | | 3.053% | |
| | | | | | | | |
Total | | | 678,152.246 | | | | 62.436% | |
4d. Jonathan P. Carroll
Votes in favor represented 95.110% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 644,987.991 | | | | 59.383% | |
Withhold | | | 33,164.255 | | | | 3.053% | |
| | | | | | | | |
Total | | | 678,152.246 | | | | 62.436% | |
Shareholder Voting Results (Unaudited)
4e. Dr. Bernard A. Harris
Votes in favor represented 95.110% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 644,987.991 | | | | 59.383% | |
Withhold | | | 33,164.255 | | | | 3.053% | |
| | | | | | | | |
Total | | | 678,152.246 | | | | 62.436% | |
4f. Richard C. Johnson
Votes in favor represented 95.110% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 644,987.991 | | | | 59.383% | |
Withhold | | | 33,164.255 | | | | 3.053% | |
| | | | | | | | |
Total | | | 678,152.246 | | | | 62.436% | |
4g. Scott E. Schwinger
Votes in favor represented 95.110% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 644,987.991 | | | | 59.383% | |
Withhold | | | 33,164.255 | | | | 3.053% | |
| | | | | | | | |
Total | | | 678,152.246 | | | | 62.436% | |
4h. John A. Blaisdell
Votes in favor represented 95.110% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 644,987.991 | | | | 59.383% | |
Withhold | | | 33,164.255 | | | | 3.053% | |
| | | | | | | | |
Total | | | 678,152.246 | | | | 62.436% | |
Forward Income & Growth Allocation Fund
Proposal 1. To approve a new investment advisory agreement between the Fund and Forward Management, the Fund’s current investment advisor, as a result of the Transaction:
Votes in favor represented 82.352% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 136,701.378 | | | | 45.132% | |
Against | | | 688.079 | | | | 0.227% | |
Abstain | | | 2,152.964 | | | | 0.711% | |
Broker Non-Vote | | | 26,454.000 | | | | 8.734% | |
| | | | | | | | |
Total | | | 165,996.421 | | | | 54.804% | |
Shareholder Voting Results (Unaudited)
Proposal 4. To elect eight Trustees to serve until their successors are elected and qualified, provided that the election of nominees 4c through 4h as Trustees is contingent upon and will not be effective until the closing of the Transaction:
4a. Julie Allecta
Votes in favor represented 99.724% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 165,538.143 | | | | 54.653% | |
Withhold | | | 458.278 | | | | 0.151% | |
| | | | | | | | |
Total | | | 165,996.421 | | | | 54.804% | |
4b. A. John Gambs
Votes in favor represented 99.724% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 165,538.143 | | | | 54.653% | |
Withhold | | | 458.278 | | | | 0.151% | |
| | | | | | | | |
Total | | | 165,996.421 | | | | 54.804% | |
4c. Karin B. Bonding
Votes in favor represented 100.000% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 165,996.421 | | | | 54.804% | |
Withhold | | | 0.000 | | | | 0.000% | |
| | | | | | | | |
Total | | | 165,996.421 | | | | 54.804% | |
4d. Jonathan P. Carroll
Votes in favor represented 100.000% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 165,996.421 | | | | 54.804% | |
Withhold | | | 0.000 | | | | 0.000% | |
| | | | | | | | |
Total | | | 165,996.421 | | | | 54.804% | |
4e. Dr. Bernard A. Harris
Votes in favor represented 100.000% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 165,996.421 | | | | 54.804% | |
Withhold | | | 0.000 | | | | 0.000% | |
| | | | | | | | |
Total | | | 165,996.421 | | | | 54.804% | |
4f. Richard C. Johnson
Votes in favor represented 100.000% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 165,996.421 | | | | 54.804% | |
Withhold | | | 0.000 | | | | 0.000% | |
| | | | | | | | |
Total | | | 165,996.421 | | | | 54.804% | |
Shareholder Voting Results (Unaudited)
4g. Scott E. Schwinger
Votes in favor represented 99.724% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 165,538.143 | | | | 54.653% | |
Withhold | | | 458.278 | | | | 0.151% | |
| | | | | | | | |
Total | | | 165,996.421 | | | | 54.804% | |
4h. John A. Blaisdell
Votes in favor represented 99.724% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 165,538.143 | | | | 54.653% | |
Withhold | | | 458.278 | | | | 0.151% | |
| | | | | | | | |
Total | | | 165,996.421 | | | | 54.804% | |
Forward Investment Grade Fixed-Income Fund
Proposal 1. To approve a new investment advisory agreement between the Fund and Forward Management, the Fund’s current investment advisor, as a result of the Transaction:
Votes in favor represented 90.161% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 3,446,876.708 | | | | 87.473% | |
Against | | | 2,430.000 | | | | 0.062% | |
Abstain | | | 5,423.000 | | | | 0.138% | |
Broker Non-Vote | | | 368,280.000 | | | | 9.346% | |
| | | | | | | | |
Total | | | 3,823,009.708 | | | | 97.019% | |
Proposal 4. To elect eight Trustees to serve until their successors are elected and qualified, provided that the election of nominees 4c through 4h as Trustees is contingent upon and will not be effective until the closing of the Transaction:
4a. Julie Allecta
Votes in favor represented 99.764% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 3,813,988.708 | | | | 96.789% | |
Withhold | | | 9,021.000 | | | | 0.229% | |
| | | | | | | | |
Total | | | 3,823,009.708 | | | | 97.018% | |
4b. A. John Gambs
Votes in favor represented 99.772% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 3,814,298.708 | | | | 96.797% | |
Withhold | | | 8,711.000 | | | | 0.221% | |
| | | | | | | | |
Total | | | 3,823,009.708 | | | | 97.018% | |
Shareholder Voting Results (Unaudited)
4c. Karin B. Bonding
Votes in favor represented 99.772% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 3,814,298.708 | | | | 96.797% | |
Withhold | | | 8,711.000 | | | | 0.221% | |
| | | | | | | | |
Total | | | 3,823,009.708 | | | | 97.018% | |
4d. Jonathan P. Carroll
Votes in favor represented 99.458% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 3,802,304.708 | | | | 96.493% | |
Withhold | | | 20,705.000 | | | | 0.525% | |
| | | | | | | | |
Total | | | 3,823,009.708 | | | | 97.018% | |
4e. Dr. Bernard A. Harris
Votes in favor represented 99.749% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 3,813,397.708 | | | | 96.774% | |
Withhold | | | 9,612.000 | | | | 0.244% | |
| | | | | | | | |
Total | | | 3,823,009.708 | | | | 97.018% | |
4f. Richard C. Johnson
Votes in favor represented 99.769% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 3,814,195.708 | | | | 96.795% | |
Withhold | | | 8,814.000 | | | | 0.224% | |
| | | | | | | | |
Total | | | 3,823,009.708 | | | | 97.019% | |
4g. Scott E. Schwinger
Votes in favor represented 99.751% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 3,813,500.708 | | | | 96.777% | |
Withhold | | | 9,509.000 | | | | 0.241% | |
| | | | | | | | |
Total | | | 3,823,009.708 | | | | 97.018% | |
4h. John A. Blaisdell
Votes in favor represented 99.751% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 3,813,500.708 | | | | 96.777% | |
Withhold | | | 9,509.000 | | | | 0.241% | |
| | | | | | | | |
Total | | | 3,823,009.708 | | | | 97.018% | |
Shareholder Voting Results (Unaudited)
Forward Multi-Strategy Fund
Proposal 1. To approve a new investment advisory agreement between the Fund and Forward Management, the Fund’s current investment advisor, as a result of the Transaction:
Votes in favor represented 72.595% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 598,939.113 | | | | 59.018% | |
Against | | | 786.000 | | | | 0.077% | |
Abstain | | | 262.000 | | | | 0.026% | |
Broker Non-Vote | | | 225,057.000 | | | | 22.177% | |
| | | | | | | | |
Total | | | 825,044.113 | | | | 81.298% | |
Proposal 4. To elect eight Trustees to serve until their successors are elected and qualified, provided that the election of nominees 4c through 4h as Trustees is contingent upon and will not be effective until the closing of the Transaction:
4a. Julie Allecta
Votes in favor represented 99.786% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 823,278.662 | | | | 81.124% | |
Withhold | | | 1,765.451 | | | | 0.174% | |
| | | | | | | | |
Total | | | 825,044.113 | | | | 81.298% | |
4b. A. John Gambs
Votes in favor represented 99.770% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 823,147.662 | | | | 81.111% | |
Withhold | | | 1,896.451 | | | | 0.187% | |
| | | | | | | | |
Total | | | 825,044.113 | | | | 81.298% | |
4c. Karin B. Bonding
Votes in favor represented 99.738% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 822,883.471 | | | | 81.085% | |
Withhold | | | 2,160.642 | | | | 0.213% | |
| | | | | | | | |
Total | | | 825,044.113 | | | | 81.298% | |
4d. Jonathan P. Carroll
Votes in favor represented 99.834% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 823,673.922 | | | | 81.163% | |
Withhold | | | 1,370.191 | | | | 0.135% | |
| | | | | | | | |
Total | | | 825,044.113 | | | | 81.298% | |
Shareholder Voting Results (Unaudited)
4e. Dr. Bernard A. Harris
Votes in favor represented 99.754% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 823,014.471 | | | | 81.098% | |
Withhold | | | 2,029.642 | | | | 0.200% | |
| | | | | | | | |
Total | | | 825,044.113 | | | | 81.298% | |
4f. Richard C. Johnson
Votes in favor represented 99.873% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 823,993.922 | | | | 81.195% | |
Withhold | | | 1,050.191 | | | | 0.103% | |
| | | | | | | | |
Total | | | 825,044.113 | | | | 81.298% | |
4g. Scott E. Schwinger
Votes in favor represented 99.873% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 823,993.922 | | | | 81.195% | |
Withhold | | | 1,050.191 | | | | 0.103% | |
| | | | | | | | |
Total | | | 825,044.113 | | | | 81.298% | |
4h. John A. Blaisdell
Votes in favor represented 99.873% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 823,993.922 | | | | 81.195% | |
Withhold | | | 1,050.191 | | | | 0.103% | |
| | | | | | | | |
Total | | | 825,044.113 | | | | 81.298% | |
Forward Total MarketPlus Fund
Proposal 1. To approve a new investment advisory agreement between Fund and Forward Management, the Fund’s current investment advisor, as a result of the Transaction:
Votes in favor represented 67.155% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 404,678.215 | | | | 62.906% | |
Against | | | 1,909.000 | | | | 0.297% | |
Abstain | | | 4,764.000 | | | | 0.741% | |
Broker Non-Vote | | | 191,254.000 | | | | 29.730% | |
| | | | | | | | |
Total | | | 602,605.215 | | | | 93.674% | |
Shareholder Voting Results (Unaudited)
Proposal 4. To elect eight Trustees to serve until their successors are elected and qualified, provided that the election of nominees 4c through 4h as Trustees is contingent upon and will not be effective until the closing of the Transaction:
4a. Julie Allecta
Votes in favor represented 96.997% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 584,510.215 | | | | 90.861% | |
Withhold | | | 18,095.000 | | | | 2.813% | |
| | | | | | | | |
Total | | | 602,605.215 | | | | 93.674% | |
4b. A. John Gambs
Votes in favor represented 97.764% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 589,130.215 | | | | 91.579% | |
Against | | | 13,475.000 | | | | 2.095% | |
| | | | | | | | |
Total | | | 602,605.215 | | | | 93.674% | |
4c. Karin B. Bonding
Votes in favor represented 96.997% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 584,510.215 | | | | 90.861% | |
Withhold | | | 18,095.000 | | | | 2.813% | |
| | | | | | | | |
Total | | | 602,605.215 | | | | 93.674% | |
4d. Jonathan P. Carroll
Votes in favor represented 97.060% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 584.886.215 | | | | 90.919% | |
Withhold | | | 17,719.000 | | | | 2.754% | |
| | | | | | | | |
Total | | | 602,605.215 | | | | 93.673% | |
4e. Dr. Bernard A. Harris
Votes in favor represented 97.764% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 589,130.215 | | | | 91.579% | |
Withhold | | | 13,475.000 | | | | 2.095% | |
| | | | | | | | |
Total | | | 602,605.215 | | | | 93.674% | |
4f. Richard C. Johnson
Votes in favor represented 97.764% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 589,130.215 | | | | 91.579% | |
Withhold | | | 13,475.000 | | | | 2.095% | |
| | | | | | | | |
Total | | | 602,605.215 | | | | 93.674% | |
Shareholder Voting Results (Unaudited)
4g. Scott E. Schwinger
Votes in favor represented 97.753% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 589,063.053 | | | | 91.569% | |
Withhold | | | 13,542.162 | | | | 2.105% | |
| | | | | | | | |
Total | | | 602,605.215 | | | | 93.674% | |
4h. John A. Blaisdell
Votes in favor represented 96.997% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 584,510.215 | | | | 90.861% | |
Withhold | | | 18,095.000 | | | | 2.813% | |
| | | | | | | | |
Total | | | 602,605.215 | | | | 93.674% | |
Forward U.S. Government Money Fund
Proposal 1. To approve a new investment advisory agreement between the Fund and Forward Management, the Fund’s current investment advisor, as a result of the Transaction:
Votes in favor represented 99.946% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 124,763,697.195 | | | | 94.369% | |
Against | | | 78.000 | | | | 0.000% | |
Abstain | | | 0.000 | | | | 0.000% | |
Broker Non-Vote | | | 67,505.000 | | | | 0.051% | |
| | | | | | | | |
Total | | | 124,831,280.195 | | | | 94.420% | |
Proposal 4. To elect eight Trustees to serve until their successors are elected and qualified, provided that the election of nominees 4c through 4h as Trustees is contingent upon and will not be effective until the closing of the Transaction:
4a. Julie Allecta
Votes in favor represented 100.000% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 124,831,202.195 | | | | 94.420% | |
Withhold | | | 78.000 | | | | 0.000% | |
| | | | | | | | |
Total | | | 124,831,280.195 | | | | 94.420% | |
4b. A. John Gambs
Votes in favor represented 100.000% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 124,831,202.195 | | | | 94.420% | |
Withhold | | | 78.000 | | | | 0.000% | |
| | | | | | | | |
Total | | | 124,831,280.195 | | | | 94.420% | |
Shareholder Voting Results (Unaudited)
4c. Karin B. Bonding
Votes in favor represented 99.993% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 124,823,077.395 | | | | 94.413% | |
Withhold | | | 8,202.800 | | | | 0.006% | |
| | | | | | | | |
Total | | | 124,831,280.195 | | | | 94.419% | |
4d. Jonathan P. Carroll
Votes in favor represented 99.993% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 124,823,077.395 | | | | 94.413% | |
Withhold | | | 8,202.800 | | | | 0.006% | |
| | | | | | | | |
Total | | | 124,831,280.195 | | | | 94.419% | |
4e. Dr. Bernard A. Harris
Votes in favor represented 99.993% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 124,823,077.395 | | | | 94.413% | |
Withhold | | | 8,202.800 | | | | 0.006% | |
| | | | | | | | |
Total | | | 124,831,280.195 | | | | 94.419% | |
4f. Richard C. Johnson
Votes in favor represented 99.993% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 124,823,077.395 | | | | 94.413% | |
Withhold | | | 8,202.800 | | | | 0.006% | |
| | | | | | | | |
Total | | | 124,831,280.195 | | | | 94.419% | |
4g. Scott E. Schwinger
Votes in favor represented 99.993% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 124,823,077.395 | | | | 94.413% | |
Withhold | | | 8,202.800 | | | | 0.006% | |
| | | | | | | | |
Total | | | 124,831,280.195 | | | | 94.419% | |
4h. John A. Blaisdell
Votes in favor represented 99.993% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 124,823,077.395 | | | | 94.413% | |
Withhold | | | 8,202.800 | | | | 0.006% | |
| | | | | | | | |
Total | | | 124,831,280.195 | | | | 94.419% | |
Shareholder Voting Results (Unaudited)
At the May 29, 2015 Meeting, shareholders of the Forward Growth & Income Allocation Fund and Forward Income Builder Fund approved following proposals:
Forward Growth & Income Allocation Fund
Proposal 1. To approve a new investment advisory agreement between the Fund and Forward Management, the Fund’s current investment advisor, as a result of the Transaction:
Votes in favor represented 69.793% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 679,228.317 | | | | 44.601% | |
Against | | | 15,729.615 | | | | 1.033% | |
Abstain | | | 17,820.579 | | | | 1.170% | |
Broker Non-Vote | | | 260,424.000 | | | | 17.101% | |
| | | | | | | | |
Total | | | 973,202.511 | | | | 63.905% | |
Forward Income Builder Fund
Proposal 1. To approve a new investment advisory agreement between the Fund and Forward Management, the Fund’s current investment advisor, as a result of the Transaction:
Votes in favor represented 73.178% of total votes.
| | | | | | | | |
| | | Number of Shares Voted | | | Percentage of Shares Voted | |
For | | | 610,027.005 | | | | 56.165% | |
Against | | | 13,149.317 | | | | 1.211% | |
Abstain | | | 42,754.152 | | | | 3.936% | |
Broker Non-Vote | | | 167,690.000 | | | | 15.439% | |
| | | | | | | | |
Total | | | 833,620.474 | | | | 76.751% | |
Investment Advisor
Forward Management, LLC
Administrator
ALPS Fund Services, Inc.
Distributor
Forward Securities, LLC
Counsel
Dechert LLP
Independent Registered Public Accounting Firm
KPMG 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 Dynamic Income Fund
Forward EM Corporate Debt Fund
Forward Emerging Markets Fund
Forward Frontier Strategy 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 Real Estate Fund
Forward Real Estate Long/Short Fund
Forward Select EM Dividend Fund
Forward Select Income Fund
Forward Select Opportunity 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. | | | FSD001699 083116 | |
| | | | |
 | | | | Semi-Annual Report June 30, 2015 |
Forward Global Infrastructure Fund
Forward International Real Estate Fund
Forward Real Estate Fund
Forward Real Estate Long/Short Fund
Forward Select Income Fund
Forward Select Opportunity 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, 2015
| | |
| Shareholder Update | | June 30, 2015 |
| | |
A MESSAGE FROM: | | John A. Blaisdell Chief Executive Officer |
Dear Shareholder:
We at Salient have long emphasized the importance of building truly diversified portfolios that are more resilient, more adaptive and better aligned with investor goals than traditional stock and bond portfolios. The economic and market developments globally over the last six months show why effective portfolio diversification remains one of our key tenets.
U.S. equity market gains have slowed, some overseas stock markets are outpacing the U.S. and we remain in a low-interest-rate environment. Economic policy is continually evolving in the U.S. and overseas, leading to higher market volatility and rapid economic regime shifts that, at times, feel more like tectonic shifts. This climate leaves investors challenged, once again, to find tools to build more diversified portfolios that will weather these regime shifts over time.
The big news from Salient is that we have dramatically expanded our resources for putting smart diversification and risk management principles into action. At the beginning of June we completed our acquisition of Forward Management, an asset manager with a wide-ranging set of alternative strategies that complement our own.
Beyond doubling the size of our investment team, this move realizes our vision of Salient + Forward as a single source of portfolio solutions. Our expanded capabilities include:
| | • | | Global and tactical allocation strategies with built-in adaptability to economic and market change. |
| | • | | Real estate and infrastructure strategies that complement Salient’s strengths in master limited partnerships. |
| | • | | International dividend strategies that serve both income and growth objectives. |
| | • | | Other specialized alternative and niche strategies, including frontier equities, emerging market debt, credit long/short and a variety of hedge fund and private equity strategies. |
We are excited to be able to offer such a far-reaching set of core strategies with the potential to generate income and enhance alpha at a time when investors urgently need more innovative, risk-based and flexible solutions. Please stay tuned for further details as we continue to integrate the Salient and Forward teams in the weeks and months ahead.
In closing, I want to thank you, our shareholders, for the opportunity to be your investment partner. We will strive to keep earning your trust as we continue to advance and evolve our capabilities.
Sincerely,
John A. Blaisdell
Chief Executive Officer
Salient + 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.
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.
Alpha is a technical risk ratio that shows a fund’s excess return relative to the performance of its benchmark index.
Volatility is a statistical measure of the dispersion of returns for a given security or market index.
| | |
| Shareholder Update | | June 30, 2015 |
| | |
A MESSAGE FROM: | | Lee Partridge, CAIA, CFA Chief Investment Officer |
Dear Shareholder:
As we enter the second half of the year we observe that investors are confronted by a number of ongoing challenges that have characterized the global economy since the financial crisis of 2008. These challenges include severe fiscal imbalances across peripheral European countries, a large overhang of global debt, waning growth in China, the divergence of global central bank activity across developed market regions and a continued wealth divide within the United States. As the philosopher Plato of ancient Greece so eloquently stated nearly 2400 years ago, “Excess generally causes reaction, and produces a change in the opposite direction, whether it be in the seasons, or in individuals, or in governments.”
The backdrop to a strong dollar
In the wake of these challenges, the U.S. dollar continued its appreciation versus most major currencies in the first half of 2015 as the Federal Reserve adopted a more restrictive monetary stance relative to other major central banks. The European Central Bank began implementing quantitative easing measures in March with a commitment to purchase €1.1 trillion worth of assets. Those purchases include asset-backed securities, covered bonds and sovereign debt, including, but not limited to, the sovereign debt of Greece. As the U.S. dollar rallied, U.S. equity markets began underperforming most other developed markets, which we attribute to the dual impact of reduced profits from foreign operations for U.S. companies and reduced competitiveness of their exports. Commodity markets are generally down for the year, reflecting the U.S. dollar’s strength as well as dissipating demand from China and the better part of Southeast Asia.
Greek playwright Sophocles once said, “Money is the worst currency that ever grew among mankind. This sacks cities, this drives men from their homes, this teaches and corrupts the worthiest minds to turn base deeds.” A recent study conducted by the McKinsey Global Institute estimates that worldwide debt increased by $57 trillion between the fourth quarter of 2007 and the fourth quarter of 2014. As a percentage of gross domestic product (GDP), the study estimates that debt increased from 269% in 2007 to 286% in 2014. The increases in debt reflect the collective, cumulative fiscal deficits of countries, corporations, households and the financial sector. Both the size of outstanding debt and the pace of debt increases have been affected by three principal drivers: expenditures, output growth rates and restructuring.
Market drivers with political consequences
Each of these drivers has political consequences associated with them. Expenditures are reduced by austerity measures—spending less on social welfare programs, post-retirement benefits, healthcare and public works. Growth is difficult for policymakers to engineer. Debt restructuring or forgiveness transfers wealth from lenders to borrowers. At the very least, making changes that impact expenditures and restructuring existing debt offer politically unpalatable options for most policymakers. Both cases represent the prospects of short-term pain and long-term gain, which are inconsistent with the time horizons of elected officials and their appointed agents. As Plato once said, “There will be no end to the troubles of states, or of humanity itself, till philosophers become kings in this world, or till those we now call kings and rulers really and truly become philosophers, and political power and philosophy thus come into the same hands.”
The questionable interest rate rise
Plato also said, “Opinion is the medium between knowledge and ignorance.” With that in mind, we humbly submit the following observations for the latter half of 2015. The Federal Open Market Committee (FOMC) will have three opportunities to adjust monetary policy before the end of the year (September 16-17, October 27-28 and December 15-16). Fed Chair Janet Yellen continues to state that, dependent on the continuation of economic growth, the FOMC intends to increase interest rates in 2015. It seems to us that if the FOMC does not begin the process of raising interest rates at the September meeting, concerns about interfering with the economy during the upcoming election year will diminish the probability of making changes before the general election in November 2016. Such delays would likely result in downward pressure on the U.S. dollar, which could translate to a reversal in the equity trends cited above. Regardless of FOMC activity, we believe that commodity prices will remain under pressure due to the more pernicious growth problems in China and Europe.
The upcoming presidential debates are likely to be dominated by social issues including the yawning wealth divide in America. The more centrist candidates will likely move toward more polarized positions as social initiatives and fiscal discipline are juxtaposed during the campaign period. The current turmoil in Greece will likely be touted as the inevitable consequence of a deficit-driven economy. We expect the existing levels of debt to GDP along with the prospect of
continued austerity measures in Europe and tepid growth in China to create a perfect storm—a storm that could increase general market volatility, keep long-term interest rates low and reduce both future equity market returns and commodity prices. We firmly believe that, in this environment, diversification is the most important weapon in an investor’s arsenal.
In conclusion, it’s often not the quality of predictions but the rigor of preparation that allows investors to withstand times of uncertainty. In our view, the best preparation is diversification across markets, geographies and strategies. Diversification allows investors to realize Greek philosopher Aristotle’s adage, “The ideal man bears the accidents of life with dignity and grace, making the best of circumstances.” It would seem that the intellectual forefathers of modern day Greece identified the answers to many of the challenges that face modern day Greece as well as the global economy more generally.
We are humbled by the trust you have placed with us as investors and remain grateful for the opportunities you have given to us.
Sincerely,
Lee Partridge, CAIA, CFA
Chief Investment Officer
Salient + 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.
Diversification does not assure profit or protect against risk.
Quantitative easing refers to a form of monetary policy used to stimulate an economy where interest rates are either at, or close to, zero.
Volatility is a statistical measure of the dispersion of returns for a given security or market index.
Lee Partridge 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
© 2015 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, 2015
See page 8 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 | | | | | | | -4.77% | | | | N/A | | | | 2.58% | | | | 05/02/11 | |
| | | | | |
Institutional Class(b) | | | | | | | -4.29% | | | | 10.03% | | | | 1.45% | | | | 06/29/07 | |
| | | | | |
Class A (with sales load)(c) | | | | | | | -10.29% | | | | 8.33% | | | | 0.36% | | | | 06/29/07 | |
| | | | | |
Class A (without sales load)(d) | | | | | | | -4.82% | | | | 9.62% | | | | 1.11% | | | | 06/29/07 | |
| | | | | |
Class B (with CDSC)(e) | | | | | | | -9.99% | | | | 8.63% | | | | 0.42% | | | | 06/29/07 | |
| | | | | |
Class B (without CDSC)(f) | | | | | | | -5.31% | | | | 8.92% | | | | 0.42% | | | | 06/29/07 | |
| | | | | |
Class C (with CDSC)(g) | | | | | | | -6.26% | | | | 8.93% | | | | 0.42% | | | | 06/29/07 | |
| | | | | |
Class C (without CDSC)(h) | | | | | | | -5.33% | | | | 8.93% | | | | 0.42% | | | | 06/29/07 | |
| | | | | |
Advisor Class(i) | | | | | | | -4.45% | | | | 9.97% | | | | 6.59% | | | | 02/01/10 | |
| | | | | |
| Forward International Real Estate Fund(j) | | | | | 1 Year | | | 5 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | | | | | 5.52% | | | | N/A | | | | 5.45% | | | | 05/02/11 | |
| | | | | |
Institutional Class(b) | | | | | | | 5.90% | | | | 12.28% | | | | 2.90% | | | | 04/28/06 | |
| | | | | |
Class A (with sales load)(c) | | | | | | | -0.59% | | | | 10.57% | | | | 1.93% | | | | 04/28/06 | |
| | | | | |
Class A (without sales load)(d) | | | | | | | 5.48% | | | | 11.89% | | | | 2.59% | | | | 04/28/06 | |
| | | | | |
Class C (with CDSC)(g) | | | | | | | 3.93% | | | | 11.20% | | | | 1.89% | | | | 04/28/06 | |
| | | | | |
Class C (without CDSC)(h) | | | | | | | 4.91% | | | | 11.20% | | | | 1.89% | | | | 04/28/06 | |
| | | | | |
Advisor Class(i) | | | | | | | 5.86% | | | | N/A | | | | 5.81% | | | | 05/02/11 | |
| | | | | |
| Forward Real Estate Fund(k) | | 1 Year | | | 5 Year | | | 10 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | 4.20% | | | | 13.25% | | | | 5.25% | | | | 8.84% | | | | 05/10/99 | |
| | | | | |
Institutional Class | | | 4.66% | | | | 13.71% | | | | N/A | | | | 4.13% | | | | 05/01/08 | |
| | | | | |
Class A (with sales load)(c) | | | -1.80% | | | | 11.99% | | | | N/A | | | | 16.17% | | | | 06/12/09 | |
| | | | | |
Class A (without sales load)(d) | | | 4.20% | | | | 13.32% | | | | N/A | | | | 17.32% | | | | 06/12/09 | |
| | | | | |
Class C (with CDSC)(g) | | | 2.61% | | | | 12.59% | | | | N/A | | | | 16.55% | | | | 06/12/09 | |
| | | | | |
Class C (without CDSC)(h) | | | 3.57% | | | | 12.59% | | | | N/A | | | | 16.55% | | | | 06/12/09 | |
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2015
See page 8 for important performance disclosure information about the Forward Funds.
| | | | | | | | | | | | | | | | | | | | |
| Forward Real Estate Long/Short Fund(l) | | 1 Year | | | 5 Year | | | 10 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | 3.58% | | | | N/A | | | | N/A | | | | 8.68% | | | | 05/02/11 | |
| | | | | |
Institutional Class | | | 3.94% | | | | 13.37% | | | | N/A | | | | 2.32% | | | | 04/28/06 | |
| | | | | |
Class A (with sales load)(c) | | | -2.45% | | | | 11.62% | | | | 1.79% | | | | 9.90% | | | | 09/15/99 | |
| | | | | |
Class A (without sales load)(d) | | | 3.50% | | | | 12.95% | | | | 2.39% | | | | 10.31% | | | | 09/15/99 | |
| | | | | |
Class B (with CDSC)(e) | | | -2.04% | | | | 12.00% | | | | 1.69% | | | | 9.53% | | | | 09/15/99 | |
| | | | | |
Class B (without CDSC)(f) | | | 2.96% | | | | 12.25% | | | | 1.69% | | | | 9.53% | | | | 09/15/99 | |
| | | | | |
Class C (with CDSC)(g) | | | 1.96% | | | | 12.24% | | | | 1.69% | | | | 9.53% | | | | 09/15/99 | |
| | | | | |
Class C (without CDSC)(h) | | | 2.96% | | | | 12.24% | | | | 1.69% | | | | 9.53% | | | | 09/15/99 | |
| | | | | |
Advisor Class(i) | | | 3.91% | | | | N/A | | | | N/A | | | | 9.08% | | | | 05/02/11 | |
| | | | | |
| Forward Select Income Fund(m) | | 1 Year | | | 5 Year | | | 10 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | 4.28% | | | | N/A | | | | N/A | | | | 11.78% | | | | 10/26/11 | |
| | | | | |
Institutional Class | | | 4.62% | | | | 11.84% | | | | N/A | | | | 6.14% | | | | 04/28/06 | |
| | | | | |
Class A (with sales load)(c) | | | -1.82% | | | | 10.13% | | | | 4.61% | | | | 8.78% | | | | 03/30/01 | |
| | | | | |
Class A (without sales load)(d) | | | 4.19% | | | | 11.44% | | | | 5.23% | | | | 9.23% | | | | 03/30/01 | |
| | | | | |
Class B (with CDSC)(e)(n) | | | -1.23% | | | | 10.47% | | | | 4.48% | | | | 8.44% | | | | 03/30/01 | |
| | | | | |
Class B (without CDSC)(f)(n) | | | 3.63% | | | | 10.74% | | | | 4.48% | | | | 8.44% | | | | 03/30/01 | |
| | | | | |
Class C (with CDSC)(g)(n) | | | 2.63% | | | | 10.74% | | | | 4.48% | | | | 8.44% | | | | 03/30/01 | |
| | | | | |
Class C (without CDSC)(h)(n) | | | 3.60% | | | | 10.74% | | | | 4.48% | | | | 8.44% | | | | 03/30/01 | |
| | | | | |
Advisor Class(i) | | | 4.58% | | | | 11.81% | | | | N/A | | | | 12.48% | | | | 02/01/10 | |
| | | | | |
| Forward Select Opportunity Fund(o) | | | | | | | | 1 Year | | | Since
Inception | | | Inception
Date | |
| Average Annual Total Return | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | | | | | | | | | -1.69% | | | | -1.27% | | | | 06/02/14 | |
| | | | | |
Institutional Class | | | | | | | | | | | -1.36% | | | | 7.98% | | | | 07/31/13 | |
| | | | | |
Class A (with sales load)(c) | | | | | | | | | | | -7.49% | | | | 4.16% | | | | 07/31/13 | |
| | | | | |
Class A (without sales load)(d) | | | | | | | | | | | -1.85% | | | | 7.44% | | | | 07/31/13 | |
| | | | | |
Class C (with CDSC)(g) | | | | | | | | | | | -3.18% | | | | 3.23% | | | | 02/18/14 | |
| | | | | |
Class C (without CDSC)(h) | | | | | | | | | | | -2.30% | | | | 3.23% | | | | 02/18/14 | |
(a) Prior to June 12, 2009, Forward Global Infrastructure Fund was known as Kensington Global Infrastructure Fund.
(b) Prior to June 13, 2009, the Institutional Class was known as Class Y.
(c) Includes the effect of the maximum 5.75% sales charge.
(d) Excludes sales charge.
(e) Includes the contingent deferred sales charge, which declines from 5% beginning at time of purchase to 0% at the beginning of the seventh year.
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2015
See page 8 for important performance disclosure information about the Forward Funds.
(f) Excludes the contingent deferred sales charge, which declines from 5% beginning at time of purchase to 0% at the beginning of the seventh year.
(g) Includes the 1.00% contingent deferred sales charge.
(h) Excludes the 1.00% contingent deferred sales charge.
(i) Prior to May 1, 2013, the Advisor Class was known as Class M.
(j) Prior to June 12, 2009, Forward International Real Estate Fund was known as Kensington International Real Estate Fund.
(k) Prior to January 20, 2009, Forward Real Estate Fund was known as Forward Progressive Real Estate Fund. Prior to October 30, 2006, Forward Progressive Real Estate Fund was known as Forward Uniplan Real Estate Investment Fund.
(l) Prior to May 1, 2011, Forward Real Estate Long/Short Fund was known as Forward Strategic Realty Fund. Prior to to June 12, 2009, Forward Strategic Realty Fund was known as Kensington Strategic Realty Fund.
(m) Prior to June 12, 2009, Forward Select Income Fund was known as Kensington Select Income Fund.
(n) While Class B and Class C shares were initially offered for purchase effective March 30, 2001, no shareholder activity occurred until April 13, 2001.
(o) Prior to December 23, 2013, Forward Select Opportunity Fund was known as Forward Select Income Opportunity Fund.
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2015
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.
Debt securities are subject to interest rate risk. If interest rates increase, the value of debt securities generally declines. Debt securities with longer durations tend to be more sensitive to changes in interest rates and more volatile than securities with shorter durations.
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.
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.
Debt securities are subject to interest rate risk. If interest rates increase, the value of debt securities generally declines. Debt securities with longer durations tend to be more sensitive to changes in interest rates and more volatile than securities with shorter durations.
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.
Debt securities are subject to interest rate risk. If interest rates increase, the value of debt securities generally declines. Debt securities with longer durations tend to be more sensitive to changes in interest rates and more volatile than securities with shorter durations.
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.
Debt securities are subject to interest rate risk. If interest rates increase, the value of debt securities generally declines. Debt securities with longer durations tend to be more sensitive to changes in interest rates and more volatile than securities with shorter durations.
Fund Performance (Unaudited)
Performance Results for Periods Ended June 30, 2015
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 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.
Debt securities are subject to interest rate risk. If interest rates increase, the value of debt securities generally declines. Debt securities with longer durations tend to be more sensitive to changes in interest rates and more volatile than securities with shorter durations.
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 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 Opportunity Fund
Borrowing for investment purposes creates leverage, which can increase the risk and volatility of a fund.
Debt securities are subject to interest rate risk. If interest rates increase, the value of debt securities generally declines. Debt securities with longer durations tend to be more sensitive to changes in interest rates and more volatile than securities with shorter durations.
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.
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.
Disclosure of Fund Expenses (Unaudited)
For the Six Months Ended June 30, 2015
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, 2015 through June 30, 2015.
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 Global Infrastructure Fund | | Beginning Account Value 01/01/15 | | | Ending Account Value 06/30/15 | | | Expense Ratios(a) | | | Expenses Paid
During Period(b)
01/01/15-06/30/15 | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,037.30 | | | | 1.84% | | | $ | 9.29 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,015.67 | | | | 1.84% | | | $ | 9.20 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,040.50 | | | | 1.48% | | | $ | 7.49 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.46 | | | | 1.48% | | | $ | 7.40 | |
| Class A | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,036.70 | | | | 1.90% | | | $ | 9.59 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,015.37 | | | | 1.90% | | | $ | 9.49 | |
| Class B | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,034.20 | | | | 2.45% | | | $ | 12.36 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,012.65 | | | | 2.45% | | | $ | 12.23 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,034.10 | | | | 2.45% | | | $ | 12.36 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,012.65 | | | | 2.45% | | | $ | 12.23 | |
| Advisor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,038.50 | | | | 1.55% | | | $ | 7.83 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.11 | | | | 1.55% | | | $ | 7.75 | |
Disclosure of Fund Expenses (Unaudited)
For the Six Months Ended June 30, 2015
| | | | | | | | | | | | | | | | |
| Forward International Real Estate Fund | | Beginning Account Value 01/01/15 | | | Ending Account Value 06/30/15 | | | Expense Ratios(a) | | | Expenses Paid
During Period(b)
01/01/15-06/30/15 | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,065.70 | | | | 1.85% | | | $ | 9.48 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,015.62 | | | | 1.85% | | | $ | 9.25 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,067.60 | | | | 1.49% | | | $ | 7.64 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.41 | | | | 1.49% | | | $ | 7.45 | |
| Class A | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,065.60 | | | | 1.89% | | | $ | 9.68 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,015.42 | | | | 1.89% | | | $ | 9.44 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,062.90 | | | | 2.44% | | | $ | 12.48 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,012.69 | | | | 2.44% | | | $ | 12.18 | |
| Advisor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,067.40 | | | | 1.54% | | | $ | 7.89 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,017.16 | | | | 1.54% | | | $ | 7.70 | |
| Forward Real Estate Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 949.50 | | | | 1.67% | | | $ | 8.07 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,016.51 | | | | 1.67% | | | $ | 8.35 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 952.10 | | | | 1.32% | | | $ | 6.39 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,018.25 | | | | 1.32% | | | $ | 6.61 | |
| Class A | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 949.30 | | | | 1.73% | | | $ | 8.36 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,016.22 | | | | 1.73% | | | $ | 8.65 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 947.00 | | | | 2.28% | | | $ | 11.01 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,013.49 | | | | 2.28% | | | $ | 11.38 | |
| Forward Real Estate Long/Short Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 974.70 | | | | 2.30% | | | $ | 11.26 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,013.39 | | | | 2.30% | | | $ | 11.48 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 976.10 | | | | 1.95% | | | $ | 9.55 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,015.12 | | | | 1.95% | | | $ | 9.74 | |
| Class A | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 974.10 | | | | 2.35% | | | $ | 11.50 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,013.14 | | | | 2.35% | | | $ | 11.73 | |
Disclosure of Fund Expenses (Unaudited)
For the Six Months Ended June 30, 2015
| | | | | | | | | | | | | | | | |
| Forward Real Estate Long/Short Fund (continued) | | Beginning Account Value 01/01/15 | | | Ending Account Value 06/30/15 | | | Expense Ratios(a) | | | Expenses Paid
During Period(b)
01/01/15-06/30/15 | |
| Class B | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 971.80 | | | | 2.89% | | | $ | 14.13 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,010.41 | | | | 2.89% | | | $ | 14.41 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 971.60 | | | | 2.90% | | | $ | 14.18 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,010.41 | | | | 2.90% | | | $ | 14.46 | |
| Advisor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 975.80 | | | | 2.00% | | | $ | 9.80 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,014.88 | | | | 2.00% | | | $ | 9.99 | |
| Forward Select Income Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,004.20 | | | | 2.03% | | | $ | 10.09 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,014.73 | | | | 2.03% | | | $ | 10.14 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,006.00 | | | | 1.68% | | | $ | 8.36 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,016.46 | | | | 1.68% | | | $ | 8.40 | |
| Class A | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,003.90 | | | | 2.08% | | | $ | 10.33 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,014.48 | | | | 2.08% | | | $ | 10.39 | |
| Class B | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,001.00 | | | | 2.63% | | | $ | 13.05 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,011.75 | | | | 2.63% | | | $ | 13.12 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,000.90 | | | | 2.63% | | | $ | 13.05 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,011.75 | | | | 2.63% | | | $ | 13.12 | |
| Advisor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,005.80 | | | | 1.74% | | | $ | 8.65 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,016.17 | | | | 1.74% | | | $ | 8.70 | |
| Forward Select Opportunity Fund | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,023.70 | | | | 1.64% | | | $ | 8.23 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,016.66 | | | | 1.64% | | | $ | 8.20 | |
| Institutional Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,025.20 | | | | 1.29% | | | $ | 6.48 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,018.40 | | | | 1.29% | | | $ | 6.46 | |
| Class A | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,022.60 | | | | 1.79% | | | $ | 8.98 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,015.92 | | | | 1.79% | | | $ | 8.95 | |
Disclosure of Fund Expenses (Unaudited)
For the Six Months Ended June 30, 2015
| | | | | | | | | | | | | | | | |
| Forward Select Opportunity Fund (continued) | | Beginning Account Value 01/01/15 | | | Ending Account Value 06/30/15 | | | Expense Ratios(a) | | | Expenses Paid
During Period(b)
01/01/15-06/30/15 | |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,020.70 | | | | 2.24% | | | $ | 11.22 | |
| | | | |
Hypothetical | | $ | 1,000.00 | | | $ | 1,013.69 | | | | 2.24% | | | $ | 11.18 | |
(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 values over the period, multiplied by the number of days in the most recent fiscal half year (181), then divided by 365.
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 | | | | |
China | | | 15.89% | |
United States | | | 13.02% | |
New Zealand | | | 6.15% | |
Italy | | | 5.11% | |
Singapore | | | 4.96% | |
Thailand | | | 4.31% | |
Chile | | | 4.26% | |
Germany | | | 3.74% | |
Norway | | | 3.56% | |
Brazil | | | 3.46% | |
Canada | | | 3.16% | |
Belgium | | | 2.97% | |
France | | | 2.87% | |
Portugal | | | 2.80% | |
Japan | | | 2.74% | |
United Kingdom | | | 2.33% | |
Turkey | | | 1.92% | |
Greece | | | 1.51% | |
Hong Kong | | | 1.44% | |
Russia | | | 1.38% | |
Bermuda | | | 1.30% | |
Mexico | | | 1.15% | |
Australia | | | 1.05% | |
Philippines | | | 1.00% | |
Vietnam | | | 0.96% | |
Spain | | | 0.94% | |
Austria | | | 0.93% | |
Pakistan | | | 0.92% | |
South Africa | | | 0.88% | |
Net Other Assets and Liabilities | | | 3.29% | |
| | | 100.00% | |
| |
| Forward International Real Estate Fund | | | | |
Japan | | | 23.96% | |
Hong Kong | | | 17.92% | |
Australia | | | 12.88% | |
United Kingdom | | | 11.47% | |
| | | | |
Canada | | | 6.35% | |
Singapore | | | 4.82% | |
Germany | | | 3.45% | |
France | | | 3.10% | |
Switzerland | | | 2.46% | |
Sweden | | | 2.28% | |
Austria | | | 2.12% | |
Ireland | | | 1.68% | |
Netherlands | | | 1.48% | |
Philippines | | | 1.38% | |
Finland | | | 1.35% | |
Spain | | | 1.16% | |
Norway | | | 0.63% | |
Net Other Assets and Liabilities | | | 1.51% | |
| | | 100.00% | |
| |
| Forward Real Estate Fund | | | | |
REITs-Office Property | | | 21.53% | |
REITs-Apartments | | | 16.30% | |
REITs-Regional Malls | | | 12.44% | |
REITs-Diversified | | | 10.85% | |
REITs-Shopping Centers | | | 7.33% | |
REITs-Hotels | | | 6.99% | |
REITs-Healthcare | | | 5.84% | |
REITs-Storage | | | 5.72% | |
REITs-Warehouse/Industrial | | | 5.63% | |
Real Estate Operating/Development | | | 1.14% | |
REITs-Specialized | | | 1.13% | |
REITs-Industrial | | | 1.06% | |
Healthcare Providers & Services | | | 1.00% | |
Hotels Restaurants & Leisure | | | 1.00% | |
Net Other Assets and Liabilities | | | 2.04% | |
| | | 100.00% | |
| |
| Forward Real Estate Long/Short Fund* | | | | |
REITs-Office Property | | | 19.01% | |
REITs-Shopping Centers | | | 14.09% | |
REITs-Apartments | | | 12.70% | |
Summary of Portfolio Holdings (Note 10) (Unaudited)
| | | | |
| Forward Real Estate Long/Short Fund* (continued) | | | | |
REITs-Diversified | | | 11.04% | |
REITs-Hotels | | | 10.22% | |
REITs-Healthcare | | | 8.42% | |
REITs-Regional Malls | | | 6.34% | |
REITs-Mortgage | | | 4.82% | |
REITs-Warehouse/Industrial | | | 4.73% | |
REITs-Storage | | | 4.31% | |
Real Estate Operating/Development | | | 3.95% | |
Department Stores | | | 1.37% | |
REITs-Industrial | | | 1.33% | |
Healthcare Providers & Services | | | 0.77% | |
Leisure Facilities | | | 0.44% | |
Hotels & Motels | | | 0.17% | |
Net Other Assets and Liabilities | | | -3.71% | |
| | | 100.00% | |
| |
| Forward Select Income Fund* | | | | |
REITs-Hotels | | | 18.65% | |
REITs-Office Property | | | 12.63% | |
REITs-Diversified | | | 11.47% | |
REITs-Mortgage | | | 11.10% | |
REITs-Shopping Centers | | | 10.92% | |
REITs-Healthcare | | | 6.10% | |
REITs-Warehouse/Industrial | | | 4.78% | |
REITs-Residential | | | 4.62% | |
REITs-Apartments | | | 4.61% | |
REITs-Regional Malls | | | 4.51% | |
Consumer Products | | | 2.90% | |
Department Stores | | | 2.87% | |
REITs-Specialized | | | 2.78% | |
REITs-Storage | | | 1.63% | |
REITs-Manufactured Homes | | | 1.05% | |
Financials | | | 0.90% | |
REITs-Industrial | | | 0.60% | |
Oil, Gas & Consumable Fuels | | | 0.59% | |
| | | | |
Hotels, Restaurants & Leisure | | | 0.52% | |
Banks | | | 0.36% | |
Energy Equipment & Services | | | 0.07% | |
Net Other Assets and Liabilities | | | -3.66% | |
| | | 100.00% | |
| |
| Forward Select Opportunity Fund | | | | |
Banks | | | 24.52% | |
REITs-Residential | | | 9.61% | |
REITs-Hotels | | | 7.64% | |
REITs-Diversified | | | 7.63% | |
Department Stores | | | 5.10% | |
Exchange-Traded Funds | | | 4.71% | |
REITs-Office Property | | | 4.51% | |
Healthcare Providers & Services | | | 4.41% | |
Real Estate Management & Development | | | 3.27% | |
Insurance | | | 3.22% | |
Hotels & Motels | | | 2.82% | |
REITs-Specialized | | | 2.67% | |
REITs-Shopping Centers | | | 2.41% | |
REITs-Mortgage | | | 2.15% | |
Oil, Gas & Consumable Fuels | | | 2.12% | |
Hotels, Restaurants & Leisure | | | 2.02% | |
REITs-Storage | | | 2.01% | |
Energy Equipment & Services | | | 1.94% | |
REITs-Apartments | | | 1.88% | |
REITs-Healthcare | | | 1.76% | |
Capital Markets | | | 1.35% | |
Marine | | | 1.25% | |
Other | | | 1.13% | |
Multiline Retail | | | 0.42% | |
Net Other Assets and Liabilities | | | -0.55% | |
| | | 100.00% | |
* Weightings reflect long positions and excludes securities sold short.
REIT — Real Estate Investment Trust
Portfolio of Investments (Note 10) (Unaudited)
Forward Global Infrastructure Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | |
| | Common Stocks: 91.90% | | | | | | |
| | Australia: 1.05% | | | | | | |
| | | |
| | 430,900 | | | Spark Infrastructure Group | | | | $ | 649,961 | |
| | | | | | | | | | |
| | Austria: 0.93% | | | | | | |
| | | |
| | 10,455 | | | Andritz AG | | | | | 578,709 | |
| | | | | | | | | | |
| | Belgium: 2.97% | | | | | | |
| | | |
| | 66,900 | | | bpost SA | | | | | 1,837,738 | |
| | | | | | | | | | |
| | Brazil: 3.46% | | | | | | |
| | | |
| | 166,500 | | | Alupar Investimento SA | | | | | 878,796 | |
| | | |
| | 191,100 | | | Transmissora Alianca de Energia Electria SA | | | | | 1,266,174 | |
| | | |
| | | | | | | | | 2,144,970 | |
| | | | | | | | | | |
| | Canada: 3.16% | | | | | | |
| | | |
| | 37,435 | | | Canadian Solar, Inc.(a) | | | | | 1,070,641 | |
| | | |
| | 89,300 | | | TransAlta Renewables, Inc. | | | | | 883,705 | |
| | | |
| | | | | | | | | 1,954,346 | |
| | | | | | | | | | |
| | Chile: 4.26% | | | | | | |
| | | |
| | 2,527,000 | | | Aguas Andinas SA, Class A | | | | | 1,437,873 | |
| | | |
| | 75,900 | | | Enersis SA, Sponsored ADR | | | | | 1,201,497 | |
| | | |
| | | | | | | | | 2,639,370 | |
| | | | | | | | | | |
| | China: 15.89% | | | | | | |
| | | |
| | 569,300 | | | China Machinery Engineering Corp., Class H | | | | | 613,987 | |
| | | |
| | 1,997,000 | | | China Power International Development, Ltd. | | | | | 1,522,569 | |
| | | |
| | 682,000 | | | Huaneng Power International, Inc., Class H | | | | | 950,210 | |
| | | |
| | 1,115,000 | | | Jiangsu Expressway Co., Ltd., Class H | | | | | 1,464,314 | |
| | | |
| | 956,000 | | | Qingdao Port International Co., Ltd., Class H(b)(c) | | | | | 563,619 | |
| | | |
| | 2,699,000 | | | Qinhuangdao Port Co., Ltd., Class H | | | | | 1,441,500 | |
| | | |
| | 888,400 | | | SITC International Holdings Co., Ltd. | | | | | 586,800 | |
| | | |
| | 2,346,000 | | | Yuexiu Transport Infrastructure, Ltd. | | | | | 1,688,782 | |
| | | |
| | 726,000 | | | Zhejiang Expressway Co., Ltd., Class H | | | | | 1,007,767 | |
| | | |
| | | | | | | | | 9,839,548 | |
| | | | | | | | | | |
| | France: 2.87% | | | | | | |
| | | |
| | 16,672 | | | Gaztransport Et Technigaz SA | | | | | 1,054,615 | |
| | | |
| | 35,400 | | | Veolia Environnement SA | | | | | 721,828 | |
| | | |
| | | | | | | | | 1,776,443 | |
| | | | | | | | | | |
| | Germany: 2.12% | | | | | | |
| | | |
| | 39,000 | | | Freenet AG | | | | | 1,313,723 | |
| | | | | | | | | | |
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
|
| | |
| | Greece: 1.51% | | | | | | |
| | | |
| | 51,000 | | | Costamare, Inc. | | | | $ | 936,870 | |
| | | | | | | | | | |
| | Hong Kong: 1.44% | | | | | | |
| | | |
| | 1,307,000 | | | HK Electric Investments & HK Electric Investments,
Ltd.(b)(c) | | | | | 893,641 | |
| | | | | | | | | | |
| | Italy: 5.11% | | | | | | |
| | | |
| | 37,700 | | | Danieli & C. Officine Meccaniche SpA | | | | | 571,606 | |
| | | |
| | 16,300 | | | EI Towers SpA | | | | | 982,200 | |
| | | |
| | 280,200 | | | Hera SpA | | | | | 700,984 | |
| | | |
| | 85,174 | | | Societa Iniziative Autostradali Servizi SpA | | | | | 908,732 | |
| | | |
| | | | | | | | | 3,163,522 | |
| | | | | | | | | | |
| | Japan: 2.74% | | | | | | |
| | | |
| | 68,400 | | | Seino Holdings Co., Ltd. | | | | | 766,800 | |
| | | |
| | 146,100 | | | Yumeshin Holdings Co., Ltd. | | | | | 931,143 | |
| | | |
| | | | | | | | | 1,697,943 | |
| | | | | | | | | | |
| | Mexico: 1.15% | | | | | | |
| | | |
| | 550,772 | | | OHL Mexico SAB de CV(a) | | | | | 714,856 | |
| | | | | | | | | | |
| | New Zealand: 6.15% | | | | | | |
| | | |
| | 753,600 | | | Air New Zealand, Ltd. | | | | | 1,302,226 | |
| | | |
| | 80,000 | | | Infratil, Ltd. | | | | | 171,039 | |
| | | |
| | 975,900 | | | Meridian Energy, Ltd. | | | | | 1,428,448 | |
| | | |
| | 479,800 | | | Mighty River Power, Ltd. | | | | | 907,131 | |
| | | |
| | | | | | | | | 3,808,844 | |
| | | | | | | | | | |
| | Norway: 3.56% | | | | | | |
| | | |
| | 85,200 | | | Hoegh LNG Holdings, Ltd. | | | | | 1,358,341 | |
| | | |
| | 49,900 | | | Stolt-Nielsen, Ltd. | | | | | 846,469 | |
| | | |
| | | | | | | | | 2,204,810 | |
| | | | | | | | | | |
| | Philippines: 1.00% | | | | | | |
| | | |
| | 3,865,410 | | | 8990 Holdings, Inc. | | | | | 621,517 | |
| | | | | | | | | | |
| | Portugal: 2.80% | | | | | | |
| | | |
| | 167,750 | | | CTT-Correios de Portugal SA | | | | | 1,730,648 | |
| | | | | | | | | | |
| | Russia: 1.38% | | | | | | |
| | | |
| | 87,200 | | | Mobile Telesystems, Sponsored ADR | | | | | 852,816 | |
| | | | | | | | | | |
| | Singapore: 4.96% | | | | | | |
| | | |
| | 905,100 | | | China Merchants Holdings Pacific, Ltd. | | | | | 705,613 | |
| | | | |
| June 30, 2015 | | 16 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward Global Infrastructure Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
|
| | |
| | Singapore (continued): 4.96% | | | | | | |
| | | |
| | 2,474,600 | | | Hutchison Port Holdings Trust | | | | $ | 1,558,998 | |
| | | |
| | 571,500 | | | Singapore Post, Ltd. | | | | | 804,093 | |
| | | |
| | | | | | | | | 3,068,704 | |
| | | | | | | | | | |
| | South Africa: 0.88% | | | | | | |
| | | |
| | 29,000 | | | MTN Group, Ltd. | | | | | 545,270 | |
| | | | | | | | | | |
| | Spain: 0.94% | | | | | | |
| | | |
| | 29,405 | | | Cia de Distribucion Integral Logista Holdings SA | | | | | 583,523 | |
| | | | | | | | | | |
| | Thailand: 4.31% | | | | | | |
| | | |
| | 4,390,300 | | | BTS Group Holdings Pcl | | | | | 1,299,848 | |
| | | |
| | 4,090,300 | | | TTW Pcl | | | | | 1,368,459 | |
| | | |
| | | | | | | | | 2,668,307 | |
| | | | | | | | | | |
| | Turkey: 1.92% | | | | | | |
| | | |
| | 316,300 | | | Aygaz AS | | | | | 1,186,081 | |
| | | | | | | | | | |
| | United Kingdom: 2.33% | | | | | | |
| | | |
| | 209,000 | | | Infinis Energy Plc | | | | | 637,079 | |
| | | |
| | 100,000 | | | Royal Mail Plc | | | | | 808,408 | |
| | | |
| | | | | | | | | 1,445,487 | |
| | | | | | | | | | |
| | United States: 12.05% | | | | | | |
| | | |
| | 24,970 | | | American Water Works Co., Inc. | | | | | 1,214,291 | |
| | | |
| | 53,000 | | | California Water Service Group | | | | | 1,211,050 | |
| | | |
| | 22,300 | | | Macquarie Infrastructure Co., Llc | | | | | 1,842,649 | |
| | | |
| | 89,500 | | | Nordic American Tankers, Ltd. | | | | | 1,273,585 | |
| | | |
| | 22,500 | | | Pattern Energy Group, Inc. | | | | | 638,550 | |
| | | |
| | 36,400 | | | Seaspan Corp. | | | | | 686,868 | |
| | | |
| | 6,700 | | | Targa Resources Corp. | | | | | 597,774 | |
| | | |
| | | | | | | | | 7,464,767 | |
| | | | | | | | | | |
| | Vietnam: 0.96% | | | | | | |
| | | |
| | 208,400 | | | PetroVietnam Gas JSC | | | | | 591,652 | |
| | | |
| | | | Total Common Stocks (Cost $55,284,250) | | | | | 56,914,066 | |
|
| | Limited Partnerships: 2.27% | |
| | Bermuda: 1.30% | | | | | | |
| | | |
| | 42,100 | | | Hoegh LNG Partners LP | | | | | 804,110 | |
| | | | | | | | | | |
| | United States: 0.97% | | | | | | |
| | | |
| | 32,300 | | | 8Point3 Energy Partners LP(a) | | | | | 601,426 | |
| | | |
| | | | Total Limited Partnerships (Cost $1,548,520) | | | | | 1,405,536 | |
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
|
| | Loan Participation Notes: 0.92% | |
| | Pakistan: 0.92% | | | | | | |
| | | |
| | 615,500 | | | HUB Power Co., Ltd, Sponsored GDR (Loan Participation Notes issued by Macquarie Bank, Ltd.), expiring 05/02/16 | | | | $ | 565,879 | |
| | | |
| | | | Total Loan Participation Notes (Cost $577,354) | | | | | 565,879 | |
|
| | Preferred Stocks: 1.62% | |
| | Germany: 1.62% | |
| | | |
| | 25,900 | | | Sixt SE | | | | | 1,004,693 | |
| | | |
| | | | Total Preferred Stocks (Cost $814,346) | | | | | 1,004,693 | |
| | | |
| | | | Total Investments: 96.71% (Cost $58,224,470) | | | | | 59,890,174 | |
| | |
| | | | Net Other Assets and Liabilities: 3.29% | | | 2,040,250 | |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 61,930,424 | |
Percentages are stated as a percent of net assets.
(a) Non-income producing security.
(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 by the issuer 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 $1,457,260, representing 2.35% of net assets.
(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 $1,457,260, representing 2.35% of net assets.
Investment Abbreviations:
ADR — American Depositary Receipt
GDR — Global Depositary Receipt
| | | | |
| See Notes to Financial Statements | | 17 | | June 30, 2015 |
Portfolio of Investments (Note 10) (Unaudited)
Forward International Real Estate Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | |
| | Common Stocks: 97.84% | | | | | | |
| | Australia: 12.88% | | | | | | |
| | | |
| | 915,240 | | | 360 Capital Group, Ltd. | | | | $ | 755,584 | |
| | | |
| | 792,061 | | | 360 Capital Office Fund | | | | | 1,289,452 | |
| | | |
| | 120,000 | | | Dexus Property Group | | | | | 675,878 | |
| | | |
| | 150,000 | | | Elanor Investor Group | | | | | 188,066 | |
| | | |
| | 200,000 | | | Federation Centres | | | | | 450,585 | |
| | | |
| | 1,614,414 | | | GDI Property Group | | | | | 1,089,901 | |
| | | |
| | 1,076,538 | | | Mirvac Group | | | | | 1,536,616 | |
| | | |
| | 150,000 | | | Scentre Group | | | | | 433,997 | |
| | | |
| | 700,000 | | | Stockland | | | | | 2,214,349 | |
| | | |
| | 130,000 | | | Westfield Corp. | | | | | 914,750 | |
| | | |
| | | | | | | | | 9,549,178 | |
| | | | | | | | | | |
| | Austria: 2.12% | | | | | | |
| | | |
| | 90,000 | | | CA Immobilien Anlagen AG | | | | | 1,570,267 | |
| | | | | | | | | | |
| | Canada: 6.35% | | | | | | |
| | | |
| | 50,000 | | | Allied Properties REIT | | | | | 1,418,735 | |
| | | |
| | 100,000 | | | Dream Global REIT | | | | | 795,036 | |
| | | |
| | 104,600 | | | Dream Industrial REIT | | | | | 685,050 | |
| | | |
| | 70,200 | | | Dream Office REIT | | | | | 1,379,270 | |
| | | |
| | 20,000 | | | RioCan REIT | | | | | 428,663 | |
| | | |
| | | | | | | | | 4,706,754 | |
| | | | | | | | | | |
| | Finland: 0.71% | | | | | | |
| | | |
| | 136,144 | | | Citycon OYJ | | | | | 340,291 | |
| | | |
| | 14,291 | | | Orava Residential REIT Plc | | | | | 184,019 | |
| | | |
| | | | | | | | | 524,310 | |
| | | | | | | | | | |
| | France: 3.10% | | | | | | |
| | | |
| | 15,375 | | | Cegereal | | | | | 481,315 | |
| | | |
| | 2,811 | | | Fonciere de Paris SIIC | | | | | 349,059 | |
| | | |
| | 15,136 | | | Immobiliere Dassault SA | | | | | 586,385 | |
| | | |
| | 20,000 | | | Klepierre | | | | | 879,729 | |
| | | |
| | | | | | | | | 2,296,488 | |
| | | | | | | | | | |
| | Germany: 3.44% | | | | | | |
| | | |
| | 30,000 | | | Deutsche Annington Immobilien SE | | | | | 846,172 | |
| | | |
| | 79,020 | | | Hamborner REIT AG | | | | | 767,752 | |
| | | |
| | 58,092 | | | TLG Immobilien AG | | | | | 939,401 | |
| | | |
| | | | | | | | | 2,553,325 | |
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
|
| | |
| | Hong Kong: 17.92% | | | | | | |
| | | |
| | 4,570,000 | | | Asia Orient Holdings, Ltd. | | | | $ | 1,167,328 | |
| | | |
| | 16,500,000 | | | Asia Standard Hotel Group, Ltd. | | | | | 3,022,621 | |
| | | |
| | 9,434,000 | | | Asia Standard International Group, Ltd. | | | | | 2,458,435 | |
| | | |
| | 11,276,000 | | | Chuang’s Consortium International, Ltd. | | | | | 1,614,691 | |
| | | |
| | 26,244,116 | | | CSI Properties, Ltd. | | | | | 1,015,698 | |
| | | |
| | 6,000 | | | Henderson Land Development Co., Ltd. | | | | | 41,063 | |
| | | |
| | 68,513,000 | | | Lai Sun Development Co., Ltd. | | | | | 1,643,983 | |
| | | |
| | 707,500 | | | Soundwill Holdings, Ltd. | | | | | 1,314,318 | |
| | | |
| | 1,550,000 | | | Wing Tai Properties, Ltd. | | | | | 1,009,798 | |
| | | |
| | | | | | | | | 13,287,935 | |
| | | | | | | | | | |
| | Ireland: 1.68% | | | | | | |
| | | |
| | 320,000 | | | Green REIT Plc | | | | | 522,999 | |
| | | |
| | 512,970 | | | Hibernia REIT Plc | | | | | 720,575 | |
| | | |
| | | | | | | | | 1,243,574 | |
| | | | | | | | | | |
| | Japan: 23.96% | | | | | | |
| | | |
| | 150 | | | Daiwa Office Investment Corp. | | | | | 718,225 | |
| | | |
| | 1,000,000 | | | Galileo Japan Trust | | | | | 1,373,359 | |
| | | |
| | 100,000 | | | Hulic Co., Ltd. | | | | | 887,364 | |
| | | |
| | 150,000 | | | Ichigo Group Holdings Co., Ltd. | | | | | 370,143 | |
| | | |
| | 300 | | | Japan Excellent, Inc. | | | | | 346,611 | |
| | | |
| | 350 | | | Japan Real Estate Investment Corp. | | | | | 1,590,064 | |
| | | |
| | 120 | | | Kenedix Office Investment Corp. | | | | | 602,035 | |
| | | |
| | 35,000 | | | Mitsubishi Estate Co., Ltd. | | | | | 753,994 | |
| | | |
| | 60,000 | | | Mitsui Fudosan Co., Ltd. | | | | | 1,680,108 | |
| | | |
| | 250 | | | Nippon Building Fund, Inc. | | | | | 1,094,905 | |
| | | |
| | 300 | | | Nippon Prologis REIT, Inc. | | | | | 552,519 | |
| | | |
| | 300 | | | NIPPON REIT Investment Corp. | | | | | 708,175 | |
| | | |
| | 32,700 | | | Nippon View Hotel Co., Ltd. | | | | | 591,825 | |
| | | |
| | 280,000 | | | Sotetsu Holdings, Inc. | | | | | 1,459,656 | |
| | | |
| | 50,000 | | | Sumitomo Realty & Development Co., Ltd. | | | | | 1,754,096 | |
| | | |
| | 125,000 | | | Tokyo Tatemono Co., Ltd. | | | | | 1,736,324 | |
| | | |
| | 500 | | | Tokyu REIT, Inc. | | | | | 617,314 | |
| | | |
| | 20,000 | | | Unizo Holdings Co., Ltd. | | | | | 926,584 | |
| | | |
| | | | | | | | | 17,763,301 | |
| | | | |
| June 30, 2015 | | 18 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward International Real Estate Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
|
| | |
| | Netherlands: 1.48% | | | | | | |
| | | |
| | 10,000 | | | Eurocommercial Properties NV | | | | $ | 417,010 | |
| | | |
| | 12,000 | | | Wereldhave NV | | | | | 681,352 | |
| | | |
| | | | | | | | | 1,098,362 | |
| | | | | | | | | | |
| | Norway: 0.63% | | | | | | |
| | | |
| | 50,000 | | | Entra ASA(a)(b) | | | | | 465,534 | |
| | | | | | | | | | |
| | Philippines: 1.38% | | | | | | |
| | | |
| | 9,663,000 | | | Empire East Land Holdings, Inc.(c) | | | | | 188,588 | |
| | | |
| | 11,000,000 | | | Rockwell Land Corp. | | | | | 414,726 | |
| | | |
| | 5,656,000 | | | Shang Properties, Inc. | | | | | 418,963 | |
| | | |
| | | | | | | | | 1,022,277 | |
| | | | | | | | | | |
| | Singapore: 4.82% | | | | | | |
| | | |
| | 520,500 | | | Frasers Centrepoint, Ltd. | | | | | 685,962 | |
| | | |
| | 417,400 | | | Ho Bee Land, Ltd. | | | | | 653,906 | |
| | | |
| | 500,000 | | | Keppel REIT | | | | | 425,066 | |
| | | |
| | 70,000 | | | UOL Group, Ltd. | | | | | 359,654 | |
| | | |
| | 300,000 | | | Wheelock Properties Singapore, Ltd. | | | | | 390,912 | |
| | | |
| | 750,000 | | | Wing Tai Holdings, Ltd. | | | | | 1,060,809 | |
| | | |
| | | | | | | | | 3,576,309 | |
| | | | | | | | | | |
| | Spain: 1.16% | | | | | | |
| | | |
| | 40,000 | | | Hispania Activos Inmobiliarios SAU(c) | | | | | 586,858 | |
| | | |
| | 25,000 | | | Lar Espana Real Estate Socimi SA | | | | | 276,037 | |
| | | |
| | | | | | | | | 862,895 | |
| | | | | | | | | | |
| | Sweden: 2.28% | | | | | | |
| | | |
| | 30,000 | | | Fabege AB | | | | | 409,296 | |
| | | |
| | 30,000 | | | Hemfosa Fastigheter AB | | | | | 305,795 | |
| | | |
| | 80,000 | | | Hufvudstaden AB, Class A | | | | | 973,721 | |
| | | |
| | | | | | | | | 1,688,812 | |
| | | | | | | | | | |
| | Switzerland: 2.46% | | | | | | |
| | | |
| | 21,300 | | | PSP Swiss Property AG | | | | | 1,822,557 | |
| | | | | | | | | | |
| | United Kingdom: 11.47% | | | | | | |
| | | |
| | 50,000 | | | British Land Co., Plc | | | | | 623,393 | |
| | | |
| | 26,473 | | | Derwent London Plc | | | | | 1,415,086 | |
| | | |
| | 3 | | | Development Securities Plc | | | | | 13 | |
| | | |
| | 135,000 | | | Great Portland Estates Plc | | | | | 1,646,041 | |
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | |
| | | | | | | | |
| | 130,000 | | | Hammerson Plc | | | | $ | 1,257,236 | |
| | | |
| | 658,064 | | | Market Tech Holdings, Ltd.(a)(c) | | | | | 2,533,258 | |
| | | |
| | 52,721 | | | Shaftesbury Plc | | | | | 719,033 | |
| | | |
| | 22,000 | | | Workspace Group Plc | | | | | 310,935 | |
| | | |
| | | | | | | | | 8,504,995 | |
| | | |
| | | | Total Common Stocks
(Cost $70,484,735) | | | | | 72,536,873 | |
| | |
| | Rights: 0.65% | | | | | | |
| | Finland: 0.64% | | | | | | |
| | | |
| | 4,361,589 | | | Citycon OYJ, Rights, Strike Price 2.05 EUR (expiring 07/07/15) | | | | | 478,958 | |
| | | | | | | | | | |
| | Germany: 0.01% | | | | | | |
| | | |
| | 79,020 | | | Hamborner REIT AG, Rights, Strike Price 8.50 EUR (expiring 07/08/15) | | | | | 5,286 | |
| | | |
| | | | Total Rights
(Cost $563,491) | | | | | 484,244 | |
| | | |
| | | | Total Investments: 98.49%
(Cost $71,048,226) | | | | | 73,021,117 | |
| | | |
| | | | Net Other Assets and Liabilities: 1.51% | | | | | 1,117,148 | |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 74,138,265 | |
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 by the issuer 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 $2,998,792, representing 4.04% of net assets.
(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 $465,534, representing 0.63% of net assets.
(c) Non-income producing security.
Investment Abbreviations:
REIT — Real Estate Investment Trust
Currency Abbreviations:
EUR — Euro
| | | | |
| See Notes to Financial Statements | | 19 | | June 30, 2015 |
Portfolio of Investments (Note 10) (Unaudited)
Forward Real Estate Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | |
| | Common Stocks: 97.96% | | | | | | |
| | Healthcare Providers & Services: 1.00% | | | | | | |
| | | |
| | 83,800 | | | Genesis Healthcare, Inc.(a) | | | | $ | 553,080 | |
| | | | | | | | | | |
| | Hotels Restaurants & Leisure: 1.00% | | | | | | |
| | | |
| | 6,800 | | | Starwood Hotels & Resorts Worldwide, Inc. | | | | | 551,412 | |
| | | | | | | | | | |
| | Real Estate Operating/Development: 1.14% | | | | | | |
| | | |
| | 28,400 | | | Forest City Enterprises, Inc., Class A(a) | | | | | 627,640 | |
| | | | | | | | | | |
| | REITs-Apartments: 16.30% | | | | | | |
| | | |
| | 21,120 | | | American Campus Communities, Inc. | | | | | 796,013 | |
| | | |
| | 7,058 | | | AvalonBay Communities, Inc. | | | | | 1,128,362 | |
| | | |
| | 11,553 | | | Camden Property Trust | | | | | 858,157 | |
| | | |
| | 141,567 | | | Campus Crest Communities, Inc. | | | | | 784,281 | |
| | | |
| | 30,475 | | | Equity Residential | | | | | 2,138,431 | |
| | | |
| | 1,866 | | | Essex Property Trust, Inc. | | | | | 396,525 | |
| | | |
| | 10,470 | | | Home Properties, Inc. | | | | | 764,833 | |
| | | |
| | 3,600 | | | Mid-America Apartment Communities, Inc. | | | | | 262,116 | |
| | | |
| | 185,051 | | | Trade Street Residential, Inc. | | | | | 1,232,440 | |
| | | |
| | 20,200 | | | UDR, Inc. | | | | | 647,006 | |
| | | |
| | | | | | | | | 9,008,164 | |
| | | | | | | | | | |
| | REITs-Diversified: 10.85% | | | | | | |
| | | |
| | 9,781 | | | Alexander & Baldwin, Inc. | | | | | 385,371 | |
| | | |
| | 8,098 | | | American Assets Trust, Inc. | | | | | 317,523 | |
| | | |
| | 78,675 | | | Armada Hoffler Properties, Inc. | | | | | 785,963 | |
| | | |
| | 59,695 | | | Cousins Properties, Inc. | | | | | 619,634 | |
| | | |
| | 10,900 | | | Easterly Government Properties, Inc. | | | | | 173,528 | |
| | | |
| | 43,590 | | | First Potomac Realty Trust | | | | | 448,977 | |
| | | |
| | 4,130 | | | Howard Hughes Corp.(a) | | | | | 592,820 | |
| | | |
| | 63,861 | | | Investors Real Estate Trust | | | | | 455,968 | |
| | | |
| | 77,839 | | | Lexington Realty Trust | | | | | 660,075 | |
| | | |
| | 12,447 | | | Vornado Realty Trust | | | | | 1,181,594 | |
| | | |
| | 24,555 | | | Winthrop Realty Trust | | | | | 372,008 | |
| | | |
| | | | | | | | | 5,993,461 | |
| | | | | | | | | | |
| | REITs-Healthcare: 5.84% | | | | | | |
| | | |
| | 10,123 | | | Health Care REIT, Inc. | | | | | 664,372 | |
| | | |
| | 4,969 | | | National Health Investors, Inc. | | | | | 309,569 | |
| | | |
| | 13,700 | | | Sabra Health Care REIT, Inc. | | | | | 352,638 | |
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | |
| | | | | | | | |
| | 21,700 | | | Senior Housing Properties Trust | | | | $ | 380,835 | |
| | | |
| | 24,493 | | | Ventas, Inc. | | | | | 1,520,770 | |
| | | |
| | | | | | | | | 3,228,184 | |
| | | | | | | | | | |
| | REITs-Hotels: 6.99% | | | | | | |
| | | |
| | 29,817 | | | DiamondRock Hospitality Co. | | | | | 381,956 | |
| | | |
| | 106,617 | | | Host Hotels & Resorts, Inc. | | | | | 2,114,215 | |
| | | |
| | 15,102 | | | Pebblebrook Hotel Trust | | | | | 647,574 | |
| | | |
| | 10,300 | | | RLJ Lodging Trust | | | | | 306,734 | |
| | | |
| | 34,100 | | | Strategic Hotels & Resorts, Inc.(a) | | | | | 413,292 | |
| | | |
| | | | | | | | | 3,863,771 | |
| | | | | | | | | | |
| | REITs-Industrial: 1.06% | | | | | | |
| | | |
| | 40,100 | | | Rexford Industrial Realty, Inc. | | | | | 584,658 | |
| | | | | | | | | | |
| | REITs-Office Property: 21.53% | |
| | | |
| | 7,450 | | | Alexandria Real Estate Equities, Inc. | | | | | 651,577 | |
| | | |
| | 16,094 | | | Boston Properties, Inc. | | | | | 1,948,018 | |
| | | |
| | 49,600 | | | Brandywine Realty Trust | | | | | 658,688 | |
| | | |
| | 30,617 | | | Corporate Office Properties Trust | | | | | 720,724 | |
| | | |
| | 16,919 | | | CyrusOne, Inc. | | | | | 498,264 | |
| | | |
| | 13,507 | | | Digital Realty Trust, Inc. | | | | | 900,647 | |
| | | |
| | 69,100 | | | Franklin Street Properties Corp. | | | | | 781,521 | |
| | | |
| | 39,266 | | | HCP, Inc. | | | | | 1,432,031 | |
| | | |
| | 8,435 | | | Hudson Pacific Properties, Inc. | | | | | 239,301 | |
| | | |
| | 33,800 | | | Liberty Property Trust | | | | | 1,089,036 | |
| | | |
| | 46,700 | | | Mack-Cali Realty Corp. | | | | | 860,681 | |
| | | |
| | 7,486 | | | Paramount Group, Inc. | | | | | 128,460 | |
| | | |
| | 50,246 | | | Parkway Properties, Inc. | | | | | 876,290 | |
| | | |
| | 10,121 | | | SL Green Realty Corp. | | | | | 1,112,197 | |
| | | |
| | | | | | | | | 11,897,435 | |
| | | | | | | | | | |
| | REITs-Regional Malls: 12.44% | | | | | | |
| | | |
| | 29,800 | | | General Growth Properties, Inc. | | | | | 764,668 | |
| | | |
| | 23,500 | | | Macerich Co. | | | | | 1,753,100 | |
| | | |
| | 25,175 | | | Simon Property Group, Inc. | | | | | 4,355,778 | |
| | | |
| | | | | | | | | 6,873,546 | |
| | | | | | | | | | |
| | REITs-Shopping Centers: 7.33% | | | | | | |
| | | |
| | 49,000 | | | Brixmor Property Group, Inc. | | | | | 1,133,370 | |
| | | | |
| June 30, 2015 | | 20 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward Real Estate Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
|
| | |
| | REITs-Shopping Centers (continued): 7.33% | | | | | | |
| | | |
| | 21,700 | | | DDR Corp. | | | | $ | 335,482 | |
| | | |
| | 17,274 | | | Equity One, Inc. | | | | | 403,175 | |
| | | |
| | 5,146 | | | Federal Realty Investment Trust | | | | | 659,151 | |
| | | |
| | 27,003 | | | Kimco Realty Corp. | | | | | 608,648 | |
| | | |
| | 43,881 | | | Retail Properties of America, Inc., Class A | | | | | 611,262 | |
| | | |
| | 5,486 | | | Urban Edge Properties | | | | | 114,054 | |
| | | |
| | 13,737 | | | WP GLIMCHER, Inc. | | | | | 185,862 | |
| | | |
| | | | | | | | | 4,051,004 | |
| | | | | | | | | | |
| | REITs-Specialized: 1.13% | | | | | | |
| | | |
| | 5,500 | | | CoreSite Realty Corp. | | | | | 249,920 | |
| | | |
| | 10,300 | | | QTS Realty Trust, Inc., Class A | | | | | 375,435 | |
| | | |
| | | | | | | | | 625,355 | |
| | | | | | | | | | |
| | REITs-Storage: 5.72% | | | | | | |
| | | |
| | 3,272 | | | Extra Space Storage, Inc. | | | | | 213,400 | |
| | | |
| | 34,300 | | | National Storage Affiliates Trust | | | | | 425,320 | |
| | | |
| | 9,800 | | | Public Storage | | | | | 1,806,826 | |
| | | |
| | 8,247 | | | Sovran Self Storage, Inc. | | | | | 716,747 | |
| | | |
| | | | | | | | | 3,162,293 | |
| | | | | | | | | | |
| | REITs-Warehouse/Industrial: 5.63% | | | | | | |
| | | |
| | 6,700 | | | EastGroup Properties, Inc. | | | | | 376,741 | |
| | | |
| | 45,271 | | | ProLogis | | | | | 1,679,554 | |
| | | |
| | 37,500 | | | STAG Industrial, Inc. | | | | | 750,000 | |
| | | |
| | 15,456 | | | Terreno Realty Corp. | | | | | 304,483 | |
| | | |
| | | | | | | | | 3,110,778 | |
| | | |
| | | | Total Common Stocks
(Cost $43,980,377) | | | | | 54,130,781 | |
| | | |
| | | | Total Investments: 97.96%
(Cost $43,980,377) | | | | | 54,130,781 | |
| | | |
| | | | Net Other Assets and Liabilities: 2.04% | | | | | 1,129,931 | |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 55,260,712 | |
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, 2015 |
Portfolio of Investments (Note 10) (Unaudited)
Forward Real Estate Long/Short Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | |
| | Common Stocks: 87.48% | | | | | | |
| | Healthcare Providers & Services: 0.77% | | | | | | |
| | | |
| | 76,760 | | | Genesis Healthcare, Inc.(a) | | | | $ | 506,616 | |
| | | | | | | | | | |
| | Hotels & Motels: 0.17% | | | | | | |
| | | |
| | 75,000 | | | OUE, Ltd. | | | | | 110,814 | |
| | | | | | | | | | |
| | Leisure Facilities: 0.44% | | | | | | |
| | | |
| | 40,000 | | | Peak Resorts, Inc. | | | | | 286,400 | |
| | | | | | | | | | |
| | Real Estate Operating/Development: 3.95% | | | | | | |
| | | |
| | 21,020,000 | | | CSI Properties, Ltd. | | | | | 813,515 | |
| | | |
| | 115,200 | | | Grainger Plc | | | | | 413,965 | |
| | | |
| | 102,000 | | | Great Eagle Holdings, Ltd. | | | | | 380,285 | |
| | | |
| | 75,000 | | | Hysan Development Co., Ltd. | | | | | 325,096 | |
| | | |
| | 226,000 | | | Soundwill Holdings, Ltd. | | | | | 419,839 | |
| | | |
| | 15,166 | | | Sun Hung Kai Properties, Ltd. | | | | | 245,738 | |
| | | |
| | | | | | | | | 2,598,438 | |
| | | | | | | | | | |
| | REITs-Apartments: 12.70% | | | | | | |
| | | |
| | 19,002 | | | American Campus Communities, Inc.(b) | | | | | 716,185 | |
| | | |
| | 9,042 | | | AvalonBay Communities, Inc.(b) | | | | | 1,445,545 | |
| | | |
| | 14,280 | | | Camden Property Trust(b) | | | | | 1,060,718 | |
| | | |
| | 137,764 | | | Campus Crest Communities, Inc.(b) | | | | | 763,213 | |
| | | |
| | 27,900 | | | Equity Residential(b) | | | | | 1,957,743 | |
| | | |
| | 7,000 | | | Post Properties, Inc. REIT(b) | | | | | 380,590 | |
| | | |
| | 190,642 | | | Trade Street Residential, Inc.(b) | | | | | 1,269,676 | |
| | | |
| | 23,408 | | | UDR, Inc.(b) | | | | | 749,758 | |
| | | |
| | | | | | | | | 8,343,428 | |
| | | | | | | | | | |
| | REITs-Diversified: 9.81% | | | | | | |
| | | |
| | 12,131 | | | Alexander & Baldwin, Inc. | | | | | 477,961 | |
| | | |
| | 84,100 | | | Armada Hoffler Properties, Inc.(b) | | | | | 840,159 | |
| | | |
| | 11,220 | | | Astro Japan Property Group | | | | | 42,938 | |
| | | |
| | 7,300 | | | CoreSite Realty Corp. | | | | | 331,712 | |
| | | |
| | 43,405 | | | Cousins Properties, Inc. | | | | | 450,544 | |
| | | |
| | 50,607 | | | First Potomac Realty Trust(b) | | | | | 521,252 | |
| | | |
| | 2,800 | | | Howard Hughes Corp.(a) | | | | | 401,912 | |
| | | |
| | 94,634 | | | Investors Real Estate Trust(b) | | | | | 675,687 | |
| | | |
| | 88,161 | | | Lexington Realty Trust(b) | | | | | 747,605 | |
| | | |
| | 17,637 | | | Vornado Realty Trust(b) | | | | | 1,674,281 | |
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | |
| | | | | | | | |
| | 18,482 | | | Winthrop Realty Trust, REIT(b) | | | | $ | 280,002 | |
| | | |
| | | | | | | | | 6,444,053 | |
| | | | | | | | | | |
| | REITs-Healthcare: 7.14% | | | | | | |
| | | |
| | 19,877 | | | Health Care REIT, Inc. | | | | | 1,304,527 | |
| | | |
| | 50,000 | | | MedEquities Realty Trust, Inc.(c) | | | | | 875,000 | |
| | | |
| | 13,700 | | | Sabra Health Care REIT, Inc. | | | | | 352,638 | |
| | | |
| | 33,066 | | | Senior Housing Properties Trust(b) | | | | | 580,308 | |
| | | |
| | 25,439 | | | Ventas, Inc.(b) | | | | | 1,579,508 | |
| | | |
| | | | | | | | | 4,691,981 | |
| | | | | | | | | | |
| | REITs-Hotels: 5.77% | | | | | | |
| | | |
| | 50,000 | | | Ashford Hospitality Prime, Inc.(a)(d) | | | | | 675,900 | |
| | | |
| | 91,515 | | | Host Hotels & Resorts, Inc.(b) | | | | | 1,814,742 | |
| | | |
| | 12,500 | | | OUE Hospitality Trust | | | | | 8,678 | |
| | | |
| | 18,598 | | | Pebblebrook Hotel Trust | | | | | 797,482 | |
| | | |
| | 40,700 | | | Strategic Hotels & Resorts, Inc.(a) | | | | | 493,284 | |
| | | |
| | | | | | | | | 3,790,086 | |
| | | | | | | | | | |
| | REITs-Industrial: 1.33% | | | | | | |
| | | |
| | 59,900 | | | Rexford Industrial Realty, Inc. | | | | | 873,342 | |
| | | | | | | | | | |
| | REITs-Mortgage: 1.97% | | | | | | |
| | | |
| | 191,070 | | | Arbor Realty Trust, Inc.(b) | | | | | 1,291,633 | |
| | | | | | | | | | |
| | REITs-Office Property: 18.43% | | | | | | |
| | | |
| | 23,350 | | | BioMed Realty Trust, Inc.(b) | | | | | 451,589 | |
| | | |
| | 17,251 | | | Boston Properties, Inc.(b) | | | | | 2,088,061 | |
| | | |
| | 51,500 | | | Brandywine Realty Trust(b) | | | | | 683,920 | |
| | | |
| | 43,282 | | | Corporate Office Properties Trust(b) | | | | | 1,018,858 | |
| | | |
| | 21,353 | | | CyrusOne, Inc. | | | | | 628,846 | |
| | | |
| | 11,130 | | | Digital Realty Trust, Inc.(b) | | | | | 742,148 | |
| | | |
| | 90,300 | | | Franklin Street Properties Corp.(b) | | | | | 1,021,293 | |
| | | |
| | 23,027 | | | HCP, Inc. | | | | | 839,795 | |
| | | |
| | 9,111 | | | Hudson Pacific Properties, Inc. | | | | | 258,479 | |
| | | |
| | 44,400 | | | Liberty Property Trust(b) | | | | | 1,430,568 | |
| | | |
| | 48,600 | | | Mack-Cali Realty Corp.(b) | | | | | 895,698 | |
| | | |
| | 8,872 | | | Paramount Group, Inc. | | | | | 152,244 | |
| | | |
| | 61,255 | | | Parkway Properties, Inc.(b) | | | | | 1,068,287 | |
| | | |
| | 7,554 | | | SL Green Realty Corp.(b) | | | | | 830,109 | |
| | | |
| | | | | | | | | 12,109,895 | |
| | | | |
| June 30, 2015 | | 22 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward Real Estate Long/Short Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | |
| | | | | | | |
| | REITs-Regional Malls: 6.34% | | | | | | |
| | | |
| | 33,800 | | | General Growth Properties, Inc.(b) | | | | $ | 867,308 | |
| | | |
| | 20,300 | | | Macerich Co.(b) | | | | | 1,514,380 | |
| | | |
| | 10,318 | | | Simon Property Group, Inc.(b) | | | | | 1,785,221 | |
| | | |
| | | | | | | | | 4,166,909 | |
| | | | | | | | | | |
| | REITs-Shopping Centers: 9.62% | | | | | | |
| | | |
| | 59,096 | | | Brixmor Property Group, Inc. | | | | | 1,366,891 | |
| | | |
| | 23,300 | | | DDR Corp.(b) | | | | | 360,218 | |
| | | |
| | 26,623 | | | Equity One, Inc.(b) | | | | | 621,381 | |
| | | |
| | 5,989 | | | Federal Realty Investment Trust(b) | | | | | 767,131 | |
| | | |
| | 31,997 | | | Kimco Realty Corp.(b) | | | | | 721,212 | |
| | | |
| | 127,622 | | | RAIT Financial Trust | | | | | 779,770 | |
| | | |
| | 11,519 | | | Retail Properties of America, Inc., Class A | | | | | 160,460 | |
| | | |
| | 53,204 | | | Scentre Group | | | | | 153,936 | |
| | | |
| | 6,318 | | | Urban Edge Properties(b) | | | | | 131,351 | |
| | | |
| | 42,700 | | | Westfield Corp. | | | | | 300,460 | |
| | | |
| | 392,043 | | | Wheeler REIT, Inc. | | | | | 795,847 | |
| | | |
| | 12,158 | | | WP GLIMCHER, Inc.(b) | | | | | 164,498 | |
| | | |
| | | | | | | | | 6,323,155 | |
| | | | | | | | | | |
| | REITs-Storage: 4.31% | | | | | | |
| | | |
| | 9,328 | | | Extra Space Storage, Inc. | | | | | 608,372 | |
| | | |
| | 40,800 | | | National Storage Affiliates Trust | | | | | 505,920 | |
| | | |
| | 9,300 | | | Public Storage(b) | | | | | 1,714,641 | |
| | | |
| | | | | | | | | 2,828,933 | |
| | | | | | | | | | |
| | REITs-Warehouse/Industrial: 4.73% | | | | | | |
| | | |
| | 66,200 | | | Dream Industrial REIT | | | | | 433,560 | |
| | | |
| | 33,100 | | | Dream Office REIT | | | | | 650,340 | |
| | | |
| | 41,441 | | | ProLogis, Inc.(b) | | | | | 1,537,461 | |
| | | |
| | 24,719 | | | Terreno Realty Corp.(b) | | | | | 486,964 | |
| | | |
| | | | | | | | | 3,108,325 | |
| | | | | | | | | | |
| | | |
| | | | Total Common Stocks
(Cost $45,751,257) | | | | | 57,474,008 | |
| | |
| | Convertible Preferred Stocks: 3.59% | | | | | | |
| | REITs-Hotels: 3.59% | | | | | | |
| | | |
| | 40,000 | | | Ashford Hospitality Prime, Inc.
Series A, 5.500%(c) | | | | | 1,000,000 | |
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | |
| | | | | | | | |
| | 55,000 | | | FelCor Lodging Trust, Inc.
Series A, 1.950% | | | | $ | 1,356,850 | |
| | | |
| | | | | | | | | 2,356,850 | |
| | | |
| | | | Total Convertible Preferred Stocks
(Cost $1,943,873) | | | | | 2,356,850 | |
| | |
| | Preferred Stocks: 10.04% | | | | | | |
| | REITs-Healthcare: 1.28% | | | | | | |
| | | |
| | 32,400 | | | Sabra Healthcare REIT, Inc.
Series A, 7.125% | | | | | 837,540 | |
| | | | | | | | | | |
| | REITs-Hotels: 0.86% | | | | | | |
| | | |
| | 21,900 | | | Summit Hotel Properties, Inc.
Series C, 7.125% | | | | | 567,210 | |
| | | | | | | | | | |
| | REITs-Mortgage: 2.85% | | | | | | |
| | | |
| | 31,466 | | | iStar Financial, Inc.
Series G, 7.650% | | | | | 775,008 | |
| | | |
| | 33,900 | | | NorthStar Realty Finance Corp.
Series D, 8.500% | | | | | 844,788 | |
| | | |
| | 10,000 | | | Series E, 8.750% | | | | | 252,100 | |
| | | |
| | | | | | | | | 1,871,896 | |
| | | | | | | | | | |
| | REITs-Office Property: 0.58% | | | | | | |
| | | |
| | 15,000 | | | Digital Realty Trust, Inc.
Series E, 7.000% | | | | | 383,400 | |
| | | | | | | | | | |
| | REITs-Shopping Centers: 4.47% | | | | | | |
| | | |
| | 35,000 | | | Kite Realty Group Trust
Series A, 8.250% | | | | | 898,765 | |
| | | |
| | 50,000 | | | RAIT Financial Trust
Series A, 7.750% | | | | | 1,120,000 | |
| | | |
| | 5,000 | | | Saul Centers, Inc.
Series C, 6.875% | | | | | 131,300 | |
| | | |
| | 30,000 | | | Urstadt Biddle Properties, Inc.
Series F, 7.125% | | | | | 787,800 | |
| | | |
| | | | | | | | | 2,937,865 | |
| | | |
| | | | Total Preferred Stocks
(Cost $5,548,711) | | | | | 6,597,911 | |
| | | | |
| See Notes to Financial Statements | | 23 | | June 30, 2015 |
Portfolio of Investments (Note 10) (Unaudited)
Forward Real Estate Long/Short Fund
| | | | | | | | | | |
Principal
Amount | | | | | | | Value
(Note 2) | |
| | |
| | Corporate Bonds: 1.37% | | | | | | |
| | Department Stores: 1.37% | | | | | | |
| | | |
| | $1,100,000 | | | JC Penney Corp., Inc., Sr. Unsec. Notes
7.400%, 04/01/37 | | | | $ | 899,250 | |
| | | |
| | | | Total Corporate Bonds
(Cost $768,557) | | | | | 899,250 | |
| | |
| | Convertible Corporate Bonds: 1.23% | | | | | | |
| | REITs-Diversified: 1.23% | | | | | | |
| | | |
| | 750,000 | | | Consolidated-Tomoka Land Co.
4.500%, 03/15/20(c) | | | | | 809,062 | |
| | | |
| | | | Total Convertible Corporate Bonds
(Cost $750,000) | | | | | 809,062 | |
| | | |
| | | | Total Investments: 103.71%
(Cost $54,762,398) | | | | | 68,137,081 | |
| | | |
| | | | Net Other Assets and Liabilities: (3.71)% | | | | | (2,435,848 | ) |
| | | |
| | | | Net Assets: 100.00% | | | | | $65,701,233 | |
| | | |
| Shares | | | | | | | | |
| | |
| | Schedule of Securities Sold Short | | | | | | |
| | Common Stocks | | | | | | |
| | | |
| | (24,198) | | | Apartment Investment & Management Co., Class A | | | | $ | (893,632 | ) |
| | | |
| | (24,190) | | | Ashford Hospitality Prime, Inc. | | | | | (363,334 | ) |
| | | |
| | (10,000) | | | CubeSmart | | | | | (231,600 | ) |
| | | |
| | (10,000) | | | DuPont Fabros Technology, Inc. | | | | | (294,500 | ) |
| | | |
| | (10,000) | | | Hilton Worldwide Holdings, Inc. | | | | | (275,500 | ) |
| | | | | | | | | | |
Shares | | | | | | | Value
(Note 2) | |
| | |
| | | | | | | | |
| | (5,000) | | | Lennar Corp., Class A | | | | $ | (255,200 | ) |
| | | |
| | (5,000) | | | Marriott International, Inc., Class A | | | | | (371,950 | ) |
| | | |
| | (19,861) | | | OMEGA Healthcare Investors, Inc. | | | | | (681,828 | ) |
| | | |
| | (22,500) | | | Pennsylvania REIT | | | | | (480,150 | ) |
| | | |
| | (10,000) | | | Regency Centers Corp. | | | | | (589,800 | ) |
| | | |
| | (6,000) | | | Sherwin-Williams Co. | | | | | (1,650,120 | ) |
| | | |
| | (5,000) | | | Taubman Centers, Inc. | | | | | (347,500 | ) |
| | | |
| | (15,000) | | | Wyndham Worldwide Corp. | | | | | (1,228,650 | ) |
| | | | | | | | | | |
| | Exchange-Traded Funds | | | | | | |
| | | |
| | (50,000) | | | iShares® U.S. Real Estate ETF | | | | | (3,565,000 | ) |
| | | |
| | (10,000) | | | SPDR® S&P® Homebuilders ETF | | | | | (366,200 | ) |
| | | |
| | (10,000) | | | Utilities Select Sector SPDR® Fund | | | | | (414,600 | ) |
| | | |
| | | | Total Securities Sold Short
(Proceeds $9,754,512) | | | | $ | (12,009,564 | ) |
Percentages are stated as a percent of net assets.
(a) Non-income producing security.
(b) Security, or portion of security, is being held as collateral for short sales and the line of credit. At period end, the aggregate market value of those securities was $26,806,454, representing 40.80% of net assets.
(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 $2,684,062, representing 4.09% of net assets.
(d) 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(s) of Purchase | | Security | | Cost | | | Value | | | % of Net
Assets | |
| 06/09/15 | | Ashford Hospitality Prime, Inc.(a)(d) | | $ | 734,750 | | | $ | 675,900 | | | | 1.03% | |
Investment Abbreviations:
ETF — Exchange-Traded Fund
REIT — Real Estate Investment Trust
S&P — Standard & Poor’s
SPDR — Standard & Poor’s Depositary Receipts
Sr. — Senior
Unsec. — Unsecured
| | | | |
| June 30, 2015 | | 24 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward Select Income Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | |
| | Common Stocks: 39.64% | | | | | | |
| | Energy Equipment & Services: 0.07% | | | | | | |
| | | |
| | 1,700,000 | | | GreenHunter Resources, Inc.(a)(b) | | | | $ | 1,171,300 | |
| | | | | | | | | | |
| | Financials: 0.90% | | | | | | |
| | | |
| | 839,489 | | | Ladder Capital Corp.(a) | | | | | 14,565,134 | |
| | | | | | | | | | |
| | Hotels, Restaurants & Leisure: 0.52% | | | | | | |
| | | |
| | 1,183,171 | | | Peak Resorts, Inc.(a)(c) | | | | | 8,471,505 | |
| | | | | | | | | | |
| | REITs-Apartments: 2.22% | | | | | | |
| | | |
| | 3,714,500 | | | Campus Crest Communities, Inc.(a)(c) | | | | | 20,578,330 | |
| | | |
| | 2,307,000 | | | Trade Street Residential, Inc.(a)(c) | | | | | 15,364,620 | |
| | | |
| | | | | | | | | 35,942,950 | |
| | | | | | | | | | |
| | REITs-Diversified: 5.46% | | | | | | |
| | | |
| | 100,000 | | | American Assets Trust, Inc.(a) | | | | | 3,921,000 | |
| | | |
| | 4,000,000 | | | American Realty Capital Properties, Inc.(a) | | | | | 32,520,000 | |
| | | |
| | 1,320,000 | | | Armada Hoffler Properties, Inc.(a)(c) | | | | | 13,186,800 | |
| | | |
| | 550,000 | | | First Potomac Realty Trust(a) | | | | | 5,665,000 | |
| | | |
| | 650,000 | | | Liberty Property Trust(a) | | | | | 20,943,000 | |
| | | |
| | 800,000 | | | Winthrop Realty Trust, REIT(a) | | | | | 12,120,000 | |
| | | |
| | | | | | | | | 88,355,800 | |
| | | | | | | | | | |
| | REITs-Healthcare: 4.23% | | | | | | |
| | | |
| | 1,575,000 | | | MedEquities Realty Trust, Inc.(d) | | | | | 27,562,500 | |
| | | |
| | 1,589,400 | | | Sabra Health Care REIT, Inc.(a) | | | | | 40,911,156 | |
| | | |
| | | | | | | | | 68,473,656 | |
| | | | | | | | | | |
| | REITs-Hotels: 5.32% | | | | | | |
| | | |
| | 1,850,000 | | | Chatham Lodging Trust(a) | | | | | 48,969,500 | |
| | | |
| | 2,850,000 | | | Summit Hotel Properties, Inc.(a) | | | | | 37,078,500 | |
| | | |
| | | | | | | | | 86,048,000 | |
| | | | | | | | | | |
| | REITs-Mortgage: 2.00% | | | | | | |
| | | |
| | 525,700 | | | Ares Commercial Real Estate Corp.(a) | | | | | 5,987,723 | |
| | | |
| | 1,100,000 | | | Colony Capital, Inc., Class A(a) | | | | | 24,915,000 | |
| | | |
| | 65,100 | | | Starwood Property Trust, Inc.(a) | | | | | 1,404,207 | |
| | | |
| | | | | | | | | 32,306,930 | |
| | | | | | | | | | |
| | REITs-Office Property: 6.62% | | | | | | |
| | | |
| | 300,000 | | | Digital Realty Trust, Inc.(a) | | | | | 20,004,000 | |
| | | |
| | 3,440,000 | | | Franklin Street Properties Corp.(a) | | | | | 38,906,400 | |
| | | |
| | 1,500,000 | | | Mack-Cali Realty Corp.(a) | | | | | 27,645,000 | |
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | |
| | | | | | | | |
| | | |
| | 1,000,000 | | | Select Income REIT | | | | $ | 20,640,000 | |
| | | |
| | | | | | | | | 107,195,400 | |
| | | | | | | | | | |
| | REITs-Regional Malls: 1.92% | | | | | | |
| | | |
| | 2,300,000 | | | WP GLIMCHER, Inc. | | | | | 31,119,000 | |
| | | | | | | | | | |
| | REITs-Residential: 2.60% | | | | | | |
| | | |
| | 584,000 | | | American Homes 4 Rent, Class A(a) | | | | | 9,367,360 | |
| | | |
| | 250,000 | | | American Residential Properties, Inc.(b)(d) | | | | | 4,625,000 | |
| | | |
| | 1,100,000 | | | American Residential Properties, Inc.(a) | | | | | 20,350,000 | |
| | | |
| | 550,000 | | | Great Ajax Corp.(a) | | | | | 7,799,000 | |
| | | |
| | | | | | | | | 42,141,360 | |
| | | | | | | | | | |
| | REITs-Shopping Centers: 3.13% | | | | | | |
| | | |
| | 1,125,000 | | | Excel Trust, Inc.(a) | | | | | 17,741,250 | |
| | | |
| | 600,000 | | | Kite Realty Group Trust(a) | | | | | 14,682,000 | |
| | | |
| | 1,170,000 | | | Retail Opportunity Investments Corp.(a) | | | | | 18,275,400 | |
| | | |
| | | | | | | | | 50,698,650 | |
| | | | | | | | | | |
| | REITs-Storage: 1.63% | | | | | | |
| | | |
| | 2,120,900 | | | National Storage Affiliates Trust(a)(c) | | | | | 26,299,160 | |
| | | | | | | | | | |
| | REITs-Warehouse/Industrial: 3.02% | | | | | | |
| | | |
| | 1,243,600 | | | Monmouth Real Estate Investment Corp.(a) | | | | | 12,087,792 | |
| | | |
| | 1,840,222 | | | STAG Industrial, Inc. | | | | | 36,804,440 | |
| | | |
| | | | | | | | | 48,892,232 | |
| | | |
| | | | Total Common Stocks (Cost $618,516,268) | | | | | 641,681,077 | |
| | |
| | Convertible Preferred Stocks: 9.86% | | | | | | |
| | REITs-Diversified: 0.89% | | | | | | |
| | | |
| | 303,428 | | | Lexington Realty Trust
Series C, 6.500%(a) | | | | | 14,482,618 | |
| | | | | | | | | | |
| | REITs-Hotels: 5.54% | | | | | | |
| | | |
| | 2,560,000 | | | Ashford Hospitality Prime, Inc.
Series A, 5.500%(d) | | | | | 64,000,000 | |
| | | |
| | 1,039,238 | | | FelCor Lodging Trust, Inc.
Series A, 1.950%(a) | | | | | 25,638,001 | |
| | | |
| | | | | | | | | 89,638,001 | |
| | | | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 25 | | June 30, 2015 |
Portfolio of Investments (Note 10) (Unaudited)
Forward Select Income Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
|
| | |
| | REITs-Office Property: 0.18% | | | | | | |
| | | |
| | 102,798 | | | Alexandria Real Estate Equities, Inc.
Series D, 7.000% | | | | $ | 2,879,372 | |
| | | | | | | | | | |
| | REITs-Shopping Centers: 1.60% | | | | | | |
| | | |
| | 400,000 | | | Excel Trust, Inc.
Series A, 7.000%(a)(d) | | | | | 11,281,240 | |
| | | |
| | 245,700 | | | Ramco-Gershenson Properties Trust
Series D, 7.250%(a) | | | | | 14,658,462 | |
| | | |
| | | | | | | | | 25,939,702 | |
| | | | | | | | | | |
| | REITs-Specialized: 1.65% | | | | | | |
| | | |
| | 248,700 | | | EPR Properties
Series C, 5.750% | | | | | 5,710,152 | |
| | | |
| | 644,101 | | | Series E, 9.000%(a) | | | | | 20,933,283 | |
| | | |
| | | | | | | | | 26,643,435 | |
| | | |
| | | | Total Convertible Preferred Stocks (Cost $120,227,097) | | | | | 159,583,128 | |
| | |
| | Preferred Stocks: 48.81% | | | | | | |
| | Banks: 0.36% | | | | | | |
| | | |
| | 225,000 | | | Banc of California, Inc.
Series D, 7.375% | | | | | 5,872,500 | |
| | | | | | | | | | |
| | Consumer Products: 2.90% | | | | | | |
| | | |
| | 1,738,000 | | | CHS, Inc.
Series 4, 7.500% | | | | | 46,995,520 | |
| | | | | | | | | | |
| | Oil, Gas & Consumable Fuels: 0.59% | | | | | | |
| | | |
| | 220,000 | | | TravelCenters of America Llc
8.250% | | | | | 5,627,600 | |
| | | |
| | 80,361 | | | Vanguard Natural Resources Llc
Series A, 7.875% | | | | | 2,010,632 | |
| | | |
| | 88,938 | | | Series B, 7.625% | | | | | 2,000,216 | |
| | | |
| | | | | | | | | 9,638,448 | |
| | | | | | | | | | |
| | REITs-Apartments: 2.39% | | | | | | |
| | | |
| | 120,000 | | | Apartment Investment & Management Co.
Series Z, 7.000% | | | | | 3,129,600 | |
| | | |
| | 271,045 | | | Campus Crest Communities, Inc.
Series A, 8.000% | | | | | 6,708,364 | |
| | | |
| | 177,795 | | | Essex Property Trust, Inc.
Series H, 7.125% | | | | | 4,616,447 | |
| | | |
| | 300,000 | | | Sun Communities, Inc.
Series A, 7.125% | | | | | 7,803,000 | |
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
|
| | |
| | | | | | | | |
| | 630,000 | | | UMH Properties, Inc.
Series A, 8.250%(a) | | | | $ | 16,443,000 | |
| | | |
| | | | | | | | | 38,700,411 | |
| | | | | | | | | | |
| | REITs-Diversified: 2.95% | |
| | | |
| | 943,750 | | | First Potomac Realty Trust
Series A, 7.750% | | | | | 24,160,000 | |
| | | |
| | 412,000 | | | Investors Real Estate Trust
Series B, 7.950% | | | | | 10,444,200 | |
| | | |
| | 520,000 | | | Winthrop Realty Trust, Sr. Unsec. Notes
7.750% | | | | | 13,223,600 | |
| | | |
| | | | | | | | | 47,827,800 | |
| | | | | | | | | | |
| | REITs-Healthcare: 1.87% | | | | | | |
| | | |
| | 1,172,213 | | | Sabra Healthcare REIT, Inc.
Series A, 7.125% | | | | | 30,301,706 | |
| | | | | | | | | | |
| | REITs-Hotels: 7.79% | | | | | | |
| | | |
| | 210,600 | | | Ashford Hospitality Trust, Inc.
Series A, 8.550%(a) | | | | | 5,412,420 | |
| | | |
| | 1,010,185 | | | Series D, 8.450% | | | | | 25,850,634 | |
| | | |
| | 596,863 | | | Series E, 9.000%(a) | | | | | 15,715,403 | |
| | | |
| | 400,000 | | | Chesapeake Lodging Trust
Series A, 7.750% | | | | | 10,700,000 | |
| | | |
| | 715,589 | | | Hersha Hospitality Trust
Series B, 8.000%(a) | | | | | 18,458,618 | |
| | | |
| | 275,000 | | | Series C, 6.875% | | | | | 7,136,250 | |
| | | |
| | 120,000 | | | LaSalle Hotel Properties
Series H, 7.500% | | | | | 3,043,200 | |
| | | |
| | 471,979 | | | Pebblebrook Hotel Trust
Series A, 7.875%(a) | | | | | 12,087,382 | |
| | | |
| | 145,000 | | | Series B, 8.000% | | | | | 3,806,975 | |
| | | |
| | 11,311 | | | Summit Hotel Properties, Inc.
Series A, 9.250% | | | | | 302,004 | |
| | | |
| | 237,888 | | | Series B, 7.875% | | | | | 6,363,504 | |
| | | |
| | 292,500 | | | Series C, 7.125% | | | | | 7,575,750 | |
| | | |
| | 365,592 | | | Sunstone Hotel Investors, Inc.
Series D, 8.000%(a) | | | | | 9,615,070 | |
| | | |
| | | | | | | | | 126,067,210 | |
| | | | | | | | | | |
| | REITs-Industrial: 0.60% | | | | | | |
| | | |
| | 400,000 | | | CorEnergy Infrastructure Trust, Inc.
Series A, 7.375% | | | | | 9,660,000 | |
| | | | |
| June 30, 2015 | | 26 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward Select Income Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
|
| | |
| | REITs-Manufactured Homes: 1.05% | | | | | | |
| | | |
| | 657,290 | | | Equity LifeStyle Properties, Inc.
Series C, 6.750%(a) | | | | $ | 17,023,811 | |
| | | | | | | | | | |
| | REITs-Mortgage: 8.79% | | | | | | |
| | | |
| | 1,004,743 | | | Colony Capital, Inc.
Series A, 8.500% | | | | | 25,982,654 | |
| | | |
| | 371,700 | | | Series B, 7.500% | | | | | 9,292,500 | |
| | | |
| | 400,000 | | | Series C, 7.125% | | | | | 9,304,000 | |
| | | |
| | 266,011 | | | iStar Financial, Inc.
Series D, 8.000%(a) | | | | | 6,602,393 | |
| | | |
| | 861,299 | | | Series E, 7.875%(a) | | | | | 21,235,327 | |
| | | |
| | 567,811 | | | Series F, 7.800%(a) | | | | | 13,996,541 | |
| | | |
| | 848,247 | | | Series G, 7.650%(a) | | | | | 20,892,324 | |
| | | |
| | 450,000 | | | Series I, 7.500%(a) | | | | | 10,800,000 | |
| | | |
| | 580,000 | | | NorthStar Realty Finance Corp.
Series E, 8.750% | | | | | 14,621,800 | |
| | | |
| | 440,000 | | | Resource Capital Corp.
8.250% | | | | | 9,609,600 | |
| | | |
| | | | | | | | | 142,337,139 | |
| | | | | | | | | | |
| | REITs-Office Property: 5.83% | | | | | | |
| | | |
| | 200,000 | | | Corporate Office Properties Trust
Series L, 7.375% | | | | | 5,260,000 | |
| | | |
| | 118,000 | | | Digital Realty Trust, Inc.
Series E, 7.000% | | | | | 3,016,080 | |
| | | |
| | 497,989 | | | Series F, 6.625% | | | | | 12,629,001 | |
| | | |
| | 265,000 | | | Series H, 7.375% | | | | | 7,136,450 | |
| | | |
| | 1,369,000 | | | DuPont Fabros Technology, Inc.
Series A, 7.875%(a) | | | | | 34,676,770 | |
| | | |
| | 651,174 | | | Series B, 7.625%(a) | | | | | 16,624,472 | |
| | | |
| | 450,000 | | | Gramercy Property Trust, Inc.
Series B, 7.125% | | | | | 11,925,000 | |
| | | |
| | 2,624 | | | Highwoods Properties, Inc.
Series A, 8.625% | | | | | 3,126,496 | |
| | | |
| | | | | | | | | 94,394,269 | |
| | | | | | | | | | |
| | REITs-Regional Malls: 2.59% | | | | | | |
| | | |
| | 889,109 | | | CBL & Associates Properties, Inc.
Series D, 7.375%(a) | | | | | 22,343,309 | |
| | | |
| | 210,622 | | | General Growth Properties, Inc.
Series A, 6.375% | | | | | 5,330,843 | |
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
|
| | |
| | | | | | | | |
| | 100,000 | | | Taubman Centers, Inc.
Series K, 6.250% | | | | $ | 2,543,000 | |
| | | |
| | 450,000 | | | WP GLIMCHER, Inc.
Series I, 6.875% | | | | | 11,646,000 | |
| | | |
| | | | | | | | | 41,863,152 | |
| | | | | | | | | | |
| | REITs-Residential: 2.02% | | | | | | |
| | | |
| | 204,044 | | | American Homes 4 Rent
Series A, 5.000% | | | | | 5,131,706 | |
| | | |
| | 250,000 | | | Series B, 5.000% | | | | | 6,300,000 | |
| | | |
| | 841,000 | | | Series C, 5.500% | | | | | 21,193,200 | |
| | | |
| | | | | | | | | 32,624,906 | |
| | | | | | | | | | |
| | REITs-Shopping Centers: 6.19% | | | | | | |
| | | |
| | 350,000 | | | Cedar Realty Trust, Inc.
Series B, 7.250% | | | | | 8,925,000 | |
| | | |
| | 201,864 | | | Excel Trust, Inc.
Series B, 8.125% | | | | | 5,056,693 | |
| | | |
| | 520,000 | | | Inland Real Estate Corp.
Series A, 8.125% | | | | | 13,572,000 | |
| | | |
| | 203,300 | | | Kite Realty Group Trust
Series A, 8.250% | | | | | 5,220,541 | |
| | | |
| | 322,700 | | | RAIT Financial Trust
Series A, 7.750% | | | | | 7,228,480 | |
| | | |
| | 250,000 | | | Retail Properties of America, Inc.
Series A, 7.000% | | | | | 6,607,500 | |
| | | |
| | 775,000 | | | Saul Centers, Inc.
Series C, 6.875% | | | | | 20,351,500 | |
| | | |
| | 810,000 | | | Urstadt Biddle Properties, Inc.
Series F, 7.125%(a) | | | | | 21,270,600 | |
| | | |
| | 450,000 | | | Series G, 6.750% | | | | | 11,916,000 | |
| | | |
| | | | | | | | | 100,148,314 | |
| | | | | | | | | | |
| | REITs-Specialized: 1.13% | | | | | | |
| | | |
| | 500,000 | | | CoreSite Realty Corp.
Series A, 7.250% | | | | | 13,025,000 | |
| | | |
| | 200,000 | | | EPR Properties
Series F, 6.625% | | | | | 5,200,000 | |
| | | |
| | | | | | | | | 18,225,000 | |
| | | | | | | | | | |
| | REITs-Warehouse/Industrial: 1.76% | | | | | | |
| | | |
| | 432,050 | | | Monmouth Real Estate Investment Corp.
Series A, 7.625%(a) | | | | | 11,017,275 | |
| | | | |
| See Notes to Financial Statements | | 27 | | June 30, 2015 |
Portfolio of Investments (Note 10) (Unaudited)
Forward Select Income Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
|
| | |
| | REITs-Warehouse/Industrial (continued): 1.76% | | | | | | |
| | | |
| | 473,028 | | | Series B, 7.875% | | | | $ | 12,346,031 | |
| | | |
| | 200,000 | | | STAG Industrial, Inc.
Series B, 6.625% | | | | | 5,108,000 | |
| | | |
| | | | | | | | | 28,471,306 | |
| | | |
| | | | Total Preferred Stocks (Cost $713,561,414) | | | | | 790,151,492 | |
| | | |
Principal
Amount | | | | | | | | |
| | |
| | Contingent Convertible Securities: 1.03% | | | | | | |
| | Department Stores: 1.03% | | | | | | |
| | | |
| | | | JC Penney Corp., Inc., Sr. Unsec. Notes | | | | | | |
| | | |
| | $21,810,000 | | | 7.625%, 03/01/97 | | | | | 16,684,650 | |
| | |
| | | | Total Contingent Convertible Securities (Cost $16,106,250) | | | 16,684,650 | |
| | |
| | Corporate Bonds: 2.15% | | | | | | |
| | Department Stores: 1.84% | | | | | | |
| | | |
| | | | JC Penney Corp., Inc., Sr. Unsec. Notes | | | | | | |
| | | |
| | 7,550,000 | | | 6.375%, 10/15/36 | | | | | 5,643,625 | |
| | | |
| | 29,475,000 | | | 7.400%, 04/01/37 | | | | | 24,095,813 | |
| | | |
| | | | | | | | | 29,739,438 | |
| | | | | | | | | | |
| | REITs-Mortgage: 0.31% | | | | | | |
| | | |
| | | | iStar Financial, Inc., Sr. Unsec. Notes | | | | | | |
| | | |
| | 4,810,000 | | | 7.125%, 02/15/18 | | | | | 5,026,209 | |
| | | |
| | | | Total Corporate Bonds (Cost $32,936,757) | | | | | 34,765,647 | |
| | |
| | Convertible Corporate Bonds: 2.17% | | | | | | |
| | REITs-Diversified: 2.17% | | | | | | |
| | | |
| | 19,250,000 | | | Consolidated-Tomoka Land Co.
4.500%, 03/15/20(d) | | | | | 20,765,937 | |
| | | |
| | 14,000,000 | | | CorEnergy Infrastructure Trust, Inc.
7.000%, 06/15/20 | | | | | 14,329,280 | |
| | | |
| | | | | | | | | 35,095,217 | |
| | |
| | | | Total Convertible Corporate Bonds (Cost $33,264,986) | | | 35,095,217 | |
| | | |
| | | | Total Investments: 103.66% (Cost $1,534,612,772) | | | | | 1,677,961,211 | |
| | |
| | | | Net Other Assets and Liabilities: (3.66)% | | | (59,203,887 | ) |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 1,618,757,324 | |
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
|
| | Schedule of Securities Sold Short | |
| | Exchange-Traded Funds | | | | | | |
| | | |
| | (2,000,000) | | | iShares® Dow Jones U.S. Real Estate Index Fund | | | | $ | (142,600,000 | ) |
| | |
| | | | Total Securities Sold Short (Proceeds $147,576,102) | | $ | (142,600,000 | ) |
Percentages are stated as a percent of net assets.
(a) Security, or portion of security, is being held as collateral for securities sold short or the line(s) of credit. At period end, the aggregate market value of those securities was $641,997,763, representing 39.66% of net assets.
(b) Non-income producing security.
(c) Affiliated company. See note 9 for more information.
(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 $128,234,677, representing 7.92% of net assets.
Investment Abbreviations:
REIT — Real Estate Investment Trust
Sr. — Senior
Unsec. — Unsecured
| | | | |
| June 30, 2015 | | 28 | | See Notes to Financial Statements |
Portfolio of Investments (Note 10) (Unaudited)
Forward Select Opportunity Fund
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
| | |
| | Common Stocks: 59.02% | | | | | | |
| | Banks: 10.68% | | | | | | |
| | | |
| | 126,960 | | | Barclays Plc | | | | $ | 519,661 | |
| | | |
| | 82,700 | | | Commerzbank AG(a) | | | | | 1,057,052 | |
| | | |
| | 20,000 | | | Green Bancorp, Inc.(a)(b) | | | | | 307,200 | |
| | | |
| | 7,910 | | | Societe Generale SA | | | | | 369,229 | |
| | | |
| | 72,600 | | | Unione di Banche Italiane SCpA | | | | | 582,350 | |
| | | |
| | | | | | | | | 2,835,492 | |
| | | | | | | | | | |
| | Capital Markets: 1.35% | | | | | | |
| | | |
| | 15,484 | | | FBR & Co.(a)(b) | | | | | 358,300 | |
| | | | | | | | | | |
| | Energy Equipment & Services: 1.94% | | | | | | |
| | | |
| | 746,697 | | | GreenHunter Resources, Inc.(a) | | | | | 514,474 | |
| | | | | | | | | | |
| | Healthcare Providers & Services: 4.41% | | | | | | |
| | | |
| | 177,565 | | | Genesis Healthcare, Inc.(a)(b) | | | | | 1,171,929 | |
| | | | | | | | | | |
| | Hotels & Motels: 2.82% | | | | | | |
| | | |
| | 60,000 | | | Belmond, Ltd., Class A(a)(b) | | | | | 749,400 | |
| | | | | | | | | | |
| | Hotels, Restaurants & Leisure: 2.02% | | | | | | |
| | | |
| | 75,000 | | | Peak Resorts, Inc.(b) | | | | | 537,000 | |
| | | | | | | | | | |
| | Multiline Retail: 0.42% | | | | | | |
| | | |
| | 5,000 | | | Hudson’s Bay Co. | | | | | 111,089 | |
| | | | | | | | | | |
| | Other: 1.13% | | | | | | |
| | | |
| | 90,000 | | | TESCO Plc | | | | | 300,572 | |
| | | | | | | | | | |
| | Real Estate Management & Development: 3.27% | | | | | | |
| | | |
| | 6,983 | | | Fonciere de Paris SIIC | | | | | 867,199 | |
| | | | | | | | | | |
| | REITs-Apartments: 1.88% | | | | | | |
| | | |
| | 75,000 | | | Trade Street Residential, Inc.(b) | | | | | 499,500 | |
| | | | | | | | | | |
| | REITs-Diversified: 3.57% | | | | | | |
| | | |
| | 150,000 | | | CorEnergy Infrastructure Trust, Inc. | | | | | 948,000 | |
| | | | | | | | | | |
| | REITs-Healthcare: 1.76% | | | | | | |
| | | |
| | 18,200 | | | Sabra Health Care REIT, Inc. | | | | | 468,468 | |
| | | | | | | | | | |
| | REITs-Hotels: 7.64% | | | | | | |
| | | |
| | 150,000 | | | Ashford Hospitality Prime, Inc.(a)(c) | | | | | 2,027,700 | |
| | | | | | | | | | |
| | REITs-Mortgage: 2.15% | | | | | | |
| | | |
| | 50,000 | | | Ares Commercial Real Estate Corp.(b) | | | | | 569,500 | |
| | | | | | | | | | |
| | REITs-Office Property: 4.51% | | | | | | |
| | | |
| | 65,000 | | | Mack-Cali Realty Corp.(b) | | | | | 1,197,950 | |
| | | | | | | | | | |
| Shares | | | | | | | Value
(Note 2) | |
|
| | |
| | REITs-Residential: 4.18% | | | | | | |
| | | |
| | 60,000 | | | American Residential Properties, Inc.(b) | | | | $ | 1,110,000 | |
| | | | | | | | | | |
| | REITs-Shopping Centers: 2.41% | | | | | | |
| | | |
| | 100,000 | | | Cedar Realty Trust, Inc.(b) | | | | | 640,000 | |
| | | | | | | | | | |
| | REITs-Specialized: 0.87% | | | | | | |
| | | |
| | 60,000 | | | Resource Capital Corp.(b) | | | | | 232,200 | |
| | | | | | | | | | |
| | REITs-Storage: 2.01% | | | | | | |
| | | |
| | 43,000 | | | National Storage Affiliates Trust(b) | | | | | 533,200 | |
| | | |
| | | | Total Common Stocks
(Cost $16,153,004) | | | | | 15,671,973 | |
| | |
| | Exchange-Traded Funds: 4.71% | | | | | | |
| | | | | | | | |
| | | |
| | 50,500 | | | ProShares® UltraShort Euro(a)(b) | | | | | 1,249,875 | |
| | | |
| | | | Total Exchange-Traded Funds
(Cost $1,173,256) | | | | | 1,249,875 | |
| | |
| | Preferred Stocks: 18.39% | | | | | | |
| | Banks: 6.37% | | | | | | |
| | | |
| | 25,000 | | | Banc of California, Inc.
Series D, 7.375% | | | | | 652,500 | |
| | | |
| | 21,000 | | | Citigroup Capital XIII, Jr. Sub. Notes
7.875%(b)(d) | | | | | 545,160 | |
| | | |
| | 20,000 | | | Wintrust Financial Corp.,
Series D 6.500% | | | | | 493,000 | |
| | | |
| | | | | | | | | 1,690,660 | |
| | | | | | | | | | |
| | Insurance: 3.22% | | | | | | |
| | | |
| | 34,000 | | | AmTrust Financial Services, Inc.,
Series D 7.500% | | | | | 855,780 | |
| | | | | | | | | | |
| | Marine: 1.25% | | | | | | |
| | | |
| | 15,000 | | | Star Bulk Carriers Corp., Sr. Unsec. Notes
8.000% | | | | | 332,700 | |
| | | | | | | | | | |
| | Oil, Gas & Consumable Fuels: 2.12% | | | | | | |
| | | |
| | 25,000 | | | Vanguard Natural Resources Llc
Series B, 7.625%(b) | | | | | 562,250 | |
| | | | | | | | | | |
| | REITs-Residential: 5.43% | | | | | | |
| | | |
| | 27,220 | | | American Homes 4 Rent
Series A, 5.000%(b) | | | | | 684,583 | |
| | | |
| | 30,000 | | | Series C, 5.500%(b) | | | | | 756,000 | |
| | | |
| | | | | | | | | 1,440,583 | |
| | | |
| | | | Total Preferred Stocks
(Cost $4,889,851) | | | | | 4,881,973 | |
| | | | |
| See Notes to Financial Statements | | 29 | | June 30, 2015 |
Portfolio of Investments (Note 10) (Unaudited)
Forward Select Opportunity Fund
| | | | | | | | | | |
Principal
Amount | | | | | | | Value
(Note 2) | |
| | |
| | Contingent Convertible Securities: 7.47% | | | | | | |
| | Banks: 7.47% | | | | | | |
| | | |
| | $1,000,000 | | | Deutsche Bank AG, Jr. Sub. Notes 7.500%, Perpetual Maturity(e)(f) | | | | $ | 998,750 | |
| | | |
| | 1,000,000 | | | Unicredit Spa, Jr. Sub. Notes
8.000%, Perpetual Maturity(e)(f) | | | | | 983,750 | |
| | | |
| | | | | | | | | 1,982,500 | |
| | | |
| | | | Total Contingent Convertible Securities
(Cost $1,990,650) | | | | | 1,982,500 | |
| | |
| | Corporate Bonds: 6.90% | | | | | | |
| | Department Stores: 5.10% | | | | | | |
| | | |
| | 500,000 | | | JC Penney Corp., Inc., Sr. Unsec. Notes
6.375%, 10/15/36 | | | | | 373,750 | |
| | | |
| | 1,200,000 | | | 7.400%, 04/01/37(b) | | | | | 981,000 | |
| | | |
| | | | | | | | | 1,354,750 | |
| | | | | | | | | | |
| | REITs-Specialized: 1.80% | | | | | | |
| | | |
| | 500,000 | | | Memorial Production Partners LP / Memorial Production Finance Corp., Sr. Unsec. Notes 7.625%, 05/01/21 | | | | | 478,750 | |
| | | |
| | | | Total Corporate Bonds
(Cost $1,665,353) | | | | | 1,833,500 | |
| | | | | | | | | | |
Principal
Amount | | | | | | | Value
(Note 2) | |
| | |
| | Convertible Corporate Bonds: 4.06% | | | | | | |
| | REITs-Diversified: 4.06% | | | | | | |
| | | |
| | $1,000,000 | | | Consolidated-Tomoka Land Co.
4.500%, 03/15/20(g) | | | | $ | 1,078,750 | |
| | | |
| | | | Total Convertible Corporate Bonds
(Cost $1,000,000) | | | | | 1,078,750 | |
| | | |
| | | | Total Investments: 100.55%
(Cost $26,872,114) | | | | | 26,698,571 | |
| | | |
| | | | Net Other Assets and Liabilities: (0.55)% | | | | | (145,712 | ) |
| | | |
| | | | Net Assets: 100.00% | | | | $ | 26,552,859 | |
Percentages are stated as a percent of net assets.
(a) Non-income producing security.
(b) 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 $12,307,047, representing 46.35% of net assets.
(c) Security determined to be illiquid under the procedures approved by the Fund’s Board of Trustees.
(d) Dividend rate will change at a future date. Dividend rate shown reflects the rate in effect at June 30, 2015.
(e) Interest rate will change at a future date. Interest rate shown reflects the rate in effect at June 30, 2015.
(f) This security has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest.
(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 $1,078,750, representing 4.06% of net assets.
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 | | | Value | | | % of Net
Assets | |
| 06/09/15 | | Ashford Hospitality Prime, Inc.(a)(c) | | $ | 2,204,250 | | | $ | 2,027,700 | | | | 7.64% | |
Investment Abbreviations:
Jr. — Junior
REIT — Real Estate Investment Trust
Sr. — Senior
Sub. — Subordinated
Unsec. — Unsecured
| | | | |
| June 30, 2015 | | 30 | | 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 | | $ | 59,890,174 | | | $ | 73,021,117 | | | $ | 54,130,781 | |
Cash | | | 691,857 | | | | 3,056,049 | | | | 1,861,808 | |
Foreign currency, at value (Cost $98,132, $36,998 and $—, respectively) | | | 98,093 | | | | 36,995 | | | | — | |
Receivable for investments sold | | | 1,463,843 | | | | 2,317,945 | | | | — | |
Receivable for shares sold | | | 67,750 | | | | 82,226 | | | | 44,821 | |
Receivable due from custodian | | | 1,856 | | | | — | | | | — | |
Interest and dividends receivable | | | 258,215 | | | | 357,655 | | | | 202,122 | |
Other assets | | | 56,207 | | | | 41,614 | | | | 40,751 | |
| | | | | | | | | | | | |
Total Assets | | | 62,527,995 | | | | 78,913,601 | | | | 56,280,283 | |
| | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | |
Payable for investments purchased | | | 395,083 | | | | 4,498,080 | | | | 826,449 | |
Payable for shares redeemed | | | 83,067 | | | | 138,068 | | | | 99,415 | |
Payable to advisor | | | 47,459 | | | | 60,569 | | | | 39,763 | |
Payable for distribution and service fees | | | 20,684 | | | | 22,786 | | | | 19,120 | |
Payable to trustees | | | 164 | | | | 92 | | | | 120 | |
Payable for chief compliance officer fee | | | 484 | | | | 490 | | | | 506 | |
Payable to ReFlow (Note 2) | | | 460 | | | | — | | | | — | |
Payable for legal and audit fees | | | 22,953 | | | | 20,748 | | | | 18,780 | |
Accrued expenses and other liabilities | | | 27,217 | | | | 34,503 | | | | 15,418 | |
| | | | | | | | | | | | |
Total Liabilities | | | 597,571 | | | | 4,775,336 | | | | 1,019,571 | |
| | | | | | | | | | | | |
Net Assets | | $ | 61,930,424 | | | $ | 74,138,265 | | | $ | 55,260,712 | |
| | | | | | | | | | | | |
Net Assets Consist of: | | | | | | | | | | | | |
Paid-in capital | | $ | 117,048,654 | | | $ | 221,164,663 | | | $ | 36,466,817 | |
Accumulated net investment income/(loss) | | | 175,874 | | | | (3,527,232 | ) | | | 390,489 | |
Accumulated net realized gain/(loss) on investments, futures contracts and foreign currency transactions | | | (56,951,058 | ) | | | (145,464,699 | ) | | | 8,253,002 | |
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies | | | 1,656,954 | | | | 1,965,533 | | | | 10,150,404 | |
| | | | | | | | | | | | |
Total Net Assets | | $ | 61,930,424 | | | $ | 74,138,265 | | | $ | 55,260,712 | |
| | | | | | | | | | | | |
Investments, at Cost | | $ | 58,224,470 | | | $ | 71,048,226 | | | $ | 43,980,377 | |
| | | |
Pricing of Shares | | | | | | | | | | | | |
Investor Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $23.50 | | | | $15.42 | | | | $16.52 | |
Net Assets | | $ | 23,887,297 | | | $ | 18,390,658 | | | $ | 40,693,933 | |
Shares of beneficial interest outstanding | | | 1,016,289 | | | | 1,192,786 | | | | 2,463,123 | |
Institutional Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $23.72 | | | | $15.32 | | | | $14.49 | |
Net Assets | | $ | 14,969,126 | | | $ | 22,323,838 | | | $ | 5,209,193 | |
Shares of beneficial interest outstanding | | | 631,102 | | | | 1,456,759 | | | | 359,540 | |
Class A: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $23.64 | | | | $15.41 | | | | $16.38 | |
Net Assets | | $ | 15,705,939 | | | $ | 16,347,776 | | | $ | 6,024,650 | |
Shares of beneficial interest outstanding | | | 664,404 | | | | 1,061,095 | | | | 367,797 | |
Maximum offering price per share (NAV/0.9425, based on maximum sales charge of 5.75% of the offering price) | | | $25.08 | | | | $16.35 | | | | $17.38 | |
| | | | |
| See Notes to Financial Statements | | 31 | | June 30, 2015 |
Statement of Assets and Liabilities (Unaudited)
| | | | | | | | | | | | |
| | | Forward
Global
Infrastructure
Fund
(continued) | | | Forward
International
Real Estate
Fund
(continued) | | | Forward
Real Estate
Fund
(continued) | |
Class B: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $23.54 | | | | — | | | | — | |
Net Assets | | $ | 829,778 | | | | — | | | | — | |
Shares of beneficial interest outstanding | | | 35,255 | | | | — | | | | — | |
Class C: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $23.57 | | | | $15.43 | | | | $16.51 | |
Net Assets | | $ | 6,003,921 | | | $ | 11,566,535 | | | $ | 3,332,936 | |
Shares of beneficial interest outstanding | | | 254,707 | | | | 749,392 | | | | 201,875 | |
Advisor Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $23.67 | | | | $15.32 | | | | — | |
Net Assets | | $ | 534,363 | | | $ | 5,509,458 | | | | — | |
Shares of beneficial interest outstanding | | | 22,574 | | | | 359,667 | | | | — | |
| | | | |
| June 30, 2015 | | 32 | | See Notes to Financial Statements |
Statement of Assets and Liabilities (Unaudited)
| | | | | | | | | | | | |
| | | Forward
Real Estate
Long/Short
Fund | | | Forward
Select
Income
Fund | | | Forward
Select
Opportunity
Fund | |
Assets: | | | | | | | | | | | | |
Investments in affiliates, at value | | $ | — | | | $ | 83,900,415 | | | $ | — | |
Investments, at value | | | 68,137,081 | | | | 1,594,060,796 | | | | 26,698,571 | |
Cash | | | — | | | | 93,018,064 | | | | 2,751,246 | |
Foreign currency, at value (Cost $8,747, $— and $—, respectively) | | | 8,747 | | | | — | | | | — | |
Deposit with broker for securities sold short | | | 13,132,006 | | | | 152,123,159 | | | | — | |
Receivable for investments sold | | | 1,831,527 | | | | 19,783,199 | | | | — | |
Receivable for shares sold | | | 109,523 | | | | 684,356 | | | | — | |
Interest and dividends receivable | | | 258,175 | | | | 10,685,615 | | | | 139,038 | |
Other assets | | | 29,161 | | | | 143,693 | | | | 20,392 | |
| | | | | | | | | | | | |
Total Assets | | | 83,506,220 | | | | 1,954,399,297 | | | | 29,609,247 | |
| | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | |
Securities sold short (Proceeds $9,754,512, $147,576,102 and $—, respectively) | | | 12,009,564 | | | | 142,600,000 | | | | — | |
Payable on loan (Note 2) | | | 4,293,236 | | | | 180,267,532 | | | | 3,007,940 | |
Payable for interest due on loan (Note 2) | | | 331 | | | | 11,613 | | | | 232 | |
Payable for dividend expense on short sales | | | 5,800 | | | | — | | | | — | |
Payable to custodian | | | 339,090 | | | | — | | | | — | |
Payable for investments purchased | | | 978,359 | | | | 3,351,755 | | | | — | |
Payable for shares redeemed | | | 55,026 | | | | 7,155,548 | | | | — | |
Payable to advisor | | | 55,475 | | | | 1,378,190 | | | | 14,806 | |
Payable for distribution and service fees | | | 28,346 | | | | 523,884 | | | | 11,528 | |
Payable to trustees | | | 123 | | | | 3,328 | | | | 49 | |
Payable for chief compliance officer fee | | | 395 | | | | 8,791 | | | | 108 | |
Payable to ReFlow (Note 2) | | | 942 | | | | — | | | | — | |
Payable for legal and audit fees | | | 22,243 | | | | 87,480 | | | | 19,938 | |
Accrued expenses and other liabilities | | | 16,057 | | | | 253,852 | | | | 1,787 | |
| | | | | | | | | | | | |
Total Liabilities | | | 17,804,987 | | | | 335,641,973 | | | | 3,056,388 | |
| | | | | | | | | | | | |
Net Assets | | $ | 65,701,233 | | | $ | 1,618,757,324 | | | $ | 26,552,859 | |
| | | | | | | | | | | | |
Net Assets Consist of: | | | | | | | | | | | | |
Paid-in capital | | $ | 212,364,487 | | | $ | 1,405,432,043 | | | $ | 27,485,995 | |
Accumulated net investment income/(loss) | | | 435,874 | | | | (7,197 | ) | | | 15,366 | |
Accumulated net realized gain/(loss) on investments, securities sold short, written option contracts and foreign currency transactions | | | (158,218,680 | ) | | | 65,007,937 | | | | (773,494 | ) |
Net unrealized appreciation/(depreciation) on investments, securities sold short and translation of assets and liabilities in foreign currencies | | | 11,119,552 | | | | 148,324,541 | | | | (175,008 | ) |
| | | | | | | | | | | | |
Total Net Assets | | $ | 65,701,233 | | | $ | 1,618,757,324 | | | $ | 26,552,859 | |
| | | | | | | | | | | | |
| | | |
Investments in Affiliates, at Cost | | | — | | | $ | 107,977,502 | | | | — | |
| | | |
Investments, at Cost | | $ | 54,762,398 | | | $ | 1,426,635,270 | | | $ | 26,872,114 | |
| | | |
Pricing of Shares | | | | | | | | | | | | |
Investor Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $32.60 | | | | $25.02 | | | | $25.14 | |
Net Assets | | $ | 1,782,891 | | | $ | 132,128,833 | | | $ | 960,419 | |
Shares of beneficial interest outstanding | | | 54,688 | | | | 5,281,683 | | | | 38,200 | |
| | | | |
| See Notes to Financial Statements | | 33 | | June 30, 2015 |
Statement of Assets and Liabilities (Unaudited)
| | | | | | | | | | | | |
| | | Forward
Real Estate
Long/Short
Fund
(continued) | | | Forward
Select
Income
Fund
(continued) | | | Forward
Select
Opportunity
Fund
(continued) | |
Institutional Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $33.62 | | | | $25.05 | | | | $25.12 | |
Net Assets | | $ | 12,838,007 | | | $ | 582,034,401 | | | $ | 5,641,660 | |
Shares of beneficial interest outstanding | | | 381,891 | | | | 23,239,124 | | | | 224,559 | |
Class A: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $32.65 | | | | $25.09 | | | | $25.13 | |
Net Assets | | $ | 31,988,541 | | | $ | 588,665,635 | | | $ | 15,090,204 | |
Shares of beneficial interest outstanding | | | 979,672 | | | | 23,461,543 | | | | 600,603 | |
Maximum offering price per share (NAV/0.9425, based on maximum sales charge of 5.75% of the offering price) | | | $34.64 | | | | $26.62 | | | | $26.66 | |
Class B: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $32.47 | | | | $24.81 | | | | — | |
Net Assets | | $ | 508,290 | | | $ | 5,117,458 | | | | — | |
Shares of beneficial interest outstanding | | | 15,654 | | | | 206,264 | | | | — | |
Class C: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $32.35 | | | | $24.54 | | | | $25.09 | |
Net Assets | | $ | 16,981,465 | | | $ | 256,429,183 | | | $ | 4,860,576 | |
Shares of beneficial interest outstanding | | | 524,966 | | | | 10,447,601 | | | | 193,703 | |
Advisor Class: | | | | | | | | | | | | |
Net Asset Value, offering and redemption price per share | | | $33.64 | | | | $25.04 | | | | — | |
Net Assets | | $ | 1,602,039 | | | $ | 54,381,814 | | | | — | |
Shares of beneficial interest outstanding | | | 47,623 | | | | 2,172,178 | | | | — | |
| | | | |
| June 30, 2015 | | 34 | | See Notes to Financial Statements |
Statement of Operations
For the Six Months Ended June 30, 2015 (Unaudited)
| | | | | | | | | | | | |
| | | Forward
Global
Infrastructure
Fund | | | Forward
International
Real Estate
Fund | | | Forward
Real Estate
Fund | |
Investment Income: | |
Interest | | $ | 1,236 | | | $ | 365 | | | $ | 1,402 | |
Dividends | | | 1,583,075 | | | | 1,489,472 | | | | 1,000,561 | |
Foreign taxes withheld | | | (130,842 | ) | | | (128,353 | ) | | | — | |
| | | | | | | | | | | | |
Total Investment Income | | | 1,453,469 | | | | 1,361,484 | | | | 1,001,963 | |
| | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | |
Investment advisory fee | | | 272,832 | | | | 379,716 | | | | 250,905 | |
Administration fee | | | 28,505 | | | | 33,172 | | | | 21,022 | |
Custodian fee | | | 14,983 | | | | 18,170 | | | | 1,583 | |
Legal and audit fees | | | 24,835 | | | | 23,882 | | | | 21,246 | |
Transfer agent fee | | | 30,271 | | | | 30,153 | | | | 26,975 | |
Trustees’ fees and expenses | | | 4,695 | | | | 5,405 | | | | 4,770 | |
Registration/filing fees | | | 36,631 | | | | 32,838 | | | | 28,875 | |
Reports to shareholder and printing fees | | | 9,066 | | | | 8,434 | | | | 8,377 | |
Distribution and service fees | | | | | | | | | | | | |
Investor Class | | | 41,080 | | | | 31,120 | | | | 86,100 | |
Institutional Class | | | 3,943 | | | | 5,864 | | | | 1,415 | |
Class A | | | 37,549 | | | | 45,893 | | | | 15,046 | |
Class B | | | 4,346 | | | | — | | | | — | |
Class C | | | 31,502 | | | | 59,272 | | | | 18,201 | |
Advisor Class | | | 230 | | | | 2,337 | | | | — | |
Chief compliance officer fee | | | 2,269 | | | | 2,700 | | | | 2,315 | |
ReFlow fees (Note 2) | | | 5,428 | | | | 7,905 | | | | 6,521 | |
Other | | | 7,755 | | | | 4,434 | | | | 3,754 | |
| | | | | | | | | | | | |
Total expenses | | | 555,920 | | | | 691,295 | | | | 497,105 | |
| | | | | | | | | | | | |
Net Investment Income: | | | 897,549 | | | | 670,189 | | | | 504,858 | |
| | | | | | | | | | | | |
Net realized gain on investments | | | 1,369,275 | | | | 3,366,031 | | | | 8,262,810 | |
Net realized gain on futures contracts | | | 41,397 | | | | — | | | | — | |
Net realized loss on foreign currency | | | (33,940 | ) | | | (130,521 | ) | | | — | |
Net change in unrealized appreciation/(depreciation) on investments | | | (911,203 | ) | | | 1,167,657 | | | | (10,441,492 | ) |
Net change in unrealized depreciation on futures contracts | | | (195,424 | ) | | | — | | | | — | |
Net change in unrealized depreciation on translation of assets and liabilities in foreign currency transactions | | | (4,672 | ) | | | (7,021 | ) | | | — | |
| | | | | | | | | | | | |
Net Realized and Unrealized Gain/(Loss) on Investments, Futures Contracts and Foreign Currency Translations | | | 265,433 | | | | 4,396,146 | | | | (2,178,682 | ) |
| | | | | | | | | | | | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | $ | 1,162,982 | | | $ | 5,066,335 | | | $ | (1,673,824 | ) |
| | | | | | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 35 | | June 30, 2015 |
Statement of Operations
For the Six Months Ended June 30, 2015 (Unaudited)
| | | | | | | | | | | | |
| | | Forward
Real Estate
Long/Short
Fund | | | Forward
Select
Income
Fund | | | Forward
Select
Opportunity
Fund | |
Investment Income: | |
Interest | | $ | 53,206 | | | $ | 3,705,987 | | | $ | 156,870 | |
Dividends | | | 1,510,238 | | | | 46,433,832 | | | | 374,693 | |
Dividends from affiliated investments | | | — | | | | 1,367,951 | | | | — | |
Foreign taxes withheld | | | (7,546 | ) | | | — | | | | (23,616 | ) |
| | | | | | | | | | | | |
Total Investment Income | | | 1,555,898 | | | | 51,507,770 | | | | 507,947 | |
| | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | |
Dividend expense on short sales | | | 117,731 | | | | 2,635,586 | | | | — | |
Interest on short sales | | | 25,838 | | | | 677,887 | | | | — | |
Investment advisory fee | | | 356,199 | | | | 8,988,367 | | | | 121,402 | |
Administration fee | | | 26,799 | | | | 439,079 | | | | 11,035 | |
Custodian fee | | | 2,609 | | | | 14,069 | | | | 1,174 | |
Legal and audit fees | | | 25,913 | | | | 211,921 | | | | 21,741 | |
Transfer agent fee | | | 30,024 | | | | 582,150 | | | | 5,828 | |
Trustees’ fees and expenses | | | 5,448 | | | | 138,806 | | | | 1,933 | |
Registration/filing fees | | | 36,956 | | | | 75,248 | | | | 24,102 | |
Reports to shareholder and printing fees | | | 6,002 | | | | 159,655 | | | | 1,939 | |
Distribution and service fees | | | | | | | | | | | | |
Investor Class | | | 4,217 | | | | 304,887 | | | | 1,977 | |
Institutional Class | | | 3,424 | | | | 158,245 | | | | 1,473 | |
Class A | | | 79,148 | | | | 1,556,549 | | | | 40,965 | |
Class B | | | 3,884 | | | | 30,662 | | | | — | |
Class C | | | 90,855 | | | | 1,345,356 | | | | 12,510 | |
Advisor Class | | | 656 | | | | 22,623 | | | | — | |
Chief compliance officer fee | | | 2,498 | | | | 61,825 | | | | 786 | |
ReFlow fees (Note 2) | | | 1,432 | | | | 74,505 | | | | — | |
Interest on loan | | | 35,776 | | | | 561,920 | | | | 6,863 | |
Other | | | 4,002 | | | | 58,579 | | | | 2,445 | |
| | | | | | | | | | | | |
Total expenses before waiver | | | 859,411 | | | | 18,097,919 | | | | 256,173 | |
Less fees waived/reimbursed by investment advisor (Note 3) | | | — | | | | — | | | | (49,132 | ) |
| | | | | | | | | | | | |
Total Net Expenses | | | 859,411 | | | | 18,097,919 | | | | 207,041 | |
| | | | | | | | | | | | |
Net Investment Income: | | | 696,487 | | | | 33,409,851 | | | | 300,906 | |
| | | | | | | | | | | | |
Net realized gain/(loss) on investments | | | 6,214,149 | | | | 48,082,298 | | | | (741,599 | ) |
Net realized loss on securities sold short | | | (301,380 | ) | | | — | | | | — | |
Net realized gain on written option contracts | | | 9,792 | | | | — | | | | — | |
Net realized loss on foreign currency | | | (353 | ) | | | — | | | | (11,954 | ) |
Net change in unrealized depreciation on affiliated investments | | | — | | | | (24,077,087 | ) | | | — | |
Net change in unrealized appreciation/(depreciation) on investments | | | (9,126,245 | ) | | | (60,002,921 | ) | | | 862,153 | |
Net change in unrealized appreciation on securities sold short | | | 688,738 | | | | 11,196,164 | | | | — | |
Net change in unrealized appreciation on written option contracts | | | 91,736 | | | | — | | | | — | |
Net change in unrealized depreciation on translation of assets and liabilities in foreign currency transactions | | | (88 | ) | | | — | | | | (582 | ) |
| | | | | | | | | | | | |
Net Realized and Unrealized Gain/(Loss) on Investments, Securities Sold Short, Written Option Contracts and Foreign Currency Translations | | | (2,423,651 | ) | | | (24,801,546 | ) | | | 108,018 | |
| | | | | | | | | | | | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | $ | (1,727,164 | ) | | $ | 8,608,305 | | | $ | 408,924 | |
| | | | | | | | | | | | |
| | | | |
| June 30, 2015 | | 36 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Global Infrastructure Fund | |
| | | Six Months Ended June 30, 2015
(Unaudited) | | | Year Ended December 31, 2014 | |
Operations: | |
Net investment income | | $ | 897,549 | | | $ | 1,009,079 | |
Net realized gain on investments | | | 1,369,275 | | | | 10,754,107 | |
Net realized gain/(loss) on futures contracts | | | 41,397 | | | | (149,925 | ) |
Net realized loss on foreign currency transactions | | | (33,940 | ) | | | (2,774,926 | ) |
Net change in unrealized depreciation on investments, futures contracts and translation of assets and liabilities in foreign currencies | | | (1,111,299 | ) | | | (10,089,740 | ) |
| | | | | | | | |
Net increase/(decrease) in net assets resulting from operations | | | 1,162,982 | | | | (1,251,405 | ) |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (177,963 | ) | | | (414,432 | ) |
Institutional Class | | | (137,588 | ) | | | (620,205 | ) |
Class A | | | (117,744 | ) | | | (229,599 | ) |
Class B | | | (4,025 | ) | | | (7,136 | ) |
Class C | | | (28,746 | ) | | | (51,082 | ) |
Advisor Class | | | (4,686 | ) | | | (9,521 | ) |
| | | | | | | | |
Total distributions | | | (470,752 | ) | | | (1,331,975 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 11,038,192 | | | | 57,131,566 | |
Issued to shareholders in reinvestment of distributions | | | 52,946 | | | | 124,914 | |
Cost of shares redeemed | | | (18,245,675 | ) | | | (35,698,622 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (7,154,537 | ) | | | 21,557,858 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 4,909,978 | | | | 20,916,844 | |
Issued to shareholders in reinvestment of distributions | | | 102,979 | | | | 390,619 | |
Cost of shares redeemed | | | (30,787,278 | ) | | | (19,261,915 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (25,774,321 | ) | | | 2,045,548 | |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | 688,574 | | | | 1,467,177 | |
Issued to shareholders in reinvestment of distributions | | | 106,077 | | | | 202,652 | |
Cost of shares redeemed | | | (3,019,501 | ) | | | (6,664,309 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (2,224,850 | ) | | | (4,994,480 | ) |
| | | | | | | | |
Class B | | | | | | | | |
Issued to shareholders in reinvestment of distributions | | | 3,875 | | | | 6,651 | |
Cost of shares redeemed | | | (103,942 | ) | | | (391,399 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (100,067 | ) | | | (384,748 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 68,896 | | | | 372,844 | |
Issued to shareholders in reinvestment of distributions | | | 26,949 | | | | 48,244 | |
Cost of shares redeemed | | | (747,851 | ) | | | (1,231,519 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (652,006 | ) | | | (810,431 | ) |
| | | | | | | | |
Advisor Class | | | | | | | | |
Proceeds from sale of shares | | | 154,005 | | | | 1,152,227 | |
Issued to shareholders in reinvestment of distributions | | | 4,240 | | | | 6,474 | |
Cost of shares redeemed | | | (85,766 | ) | | | (1,075,870 | ) |
| | | | | | | | |
Net increase from share transactions | | | 72,479 | | | | 82,831 | |
| | | | | | | | |
Net increase/(decrease) in net assets | | $ | (35,141,072 | ) | | $ | 14,913,198 | |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 97,071,496 | | | | 82,158,298 | |
| | | | | | | | |
End of period (including accumulated net investment income/(loss) of $175,874 and $(250,923), respectively) | | $ | 61,930,424 | | | $ | 97,071,496 | |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 37 | | June 30, 2015 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Global Infrastructure Fund (continued) | |
| | | Six Months Ended June 30, 2015
(Unaudited) | | | Year Ended December 31, 2014 | |
Changes in Shares Outstanding: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 452,563 | | | | 2,367,703 | |
Distributions reinvested | | | 2,210 | | | | 5,304 | |
Redeemed | | | (797,750 | ) | | | (1,497,919 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (342,977 | ) | | | 875,088 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 207,173 | | | | 875,328 | |
Distributions reinvested | | | 4,277 | | | | 16,380 | |
Redeemed | | | (1,350,987 | ) | | | (808,565 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (1,139,537 | ) | | | 83,143 | |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | 28,877 | | | | 60,962 | |
Distributions reinvested | | | 4,412 | | | | 8,545 | |
Redeemed | | | (127,253 | ) | | | (278,360 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (93,964 | ) | | | (208,853 | ) |
| | | | | | | | |
Class B | | | | | | | | |
Distributions reinvested | | | 161 | | | | 284 | |
Redeemed | | | (4,388 | ) | | | (16,308 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (4,227 | ) | | | (16,024 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 2,967 | | | | 15,411 | |
Distributions reinvested | | | 1,117 | | | | 2,060 | |
Redeemed | | | (31,237 | ) | | | (51,690 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (27,153 | ) | | | (34,219 | ) |
| | | | | | | | |
Advisor Class | | | | | | | | |
Sold | | | 6,395 | | | | 45,805 | |
Distributions reinvested | | | 176 | | | | 272 | |
Redeemed | | | (3,714 | ) | | | (44,911 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 2,857 | | | | 1,166 | |
| | | | | | | | |
| | | | |
| June 30, 2015 | | 38 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward International Real Estate Fund | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Operations: | |
Net investment income | | $ | 670,189 | | | $ | 2,222,357 | |
Net realized gain on investments | | | 3,366,031 | | | | 169,390 | |
Net realized loss on foreign currency transactions | | | (130,521 | ) | | | (7,614,622 | ) |
Net change in unrealized appreciation on investments and translation of assets and liabilities in foreign currencies | | | 1,160,636 | | | | 3,747,170 | |
| | | | | | | | |
Net increase/(decrease) in net assets resulting from operations | | | 5,066,335 | | | | (1,475,705 | ) |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (329,666 | ) | | | (1,032,710 | ) |
Institutional Class | | | (451,338 | ) | | | (2,640,392 | ) |
Class A | | | (342,344 | ) | | | (2,063,414 | ) |
Class C | | | (180,232 | ) | | | (849,244 | ) |
Advisor Class | | | (96,791 | ) | | | (321,662 | ) |
| | | | | | | | |
Total distributions | | | (1,400,371 | ) | | | (6,907,422 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 13,267,957 | | | | 31,075,540 | |
Issued to shareholders in reinvestment of distributions | | | 108,372 | | | | 365,282 | |
Cost of shares redeemed | | | (10,974,418 | ) | | | (64,060,804 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | 2,401,911 | | | | (32,619,982 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 8,248,778 | | | | 31,816,226 | |
Issued to shareholders in reinvestment of distributions | | | 140,774 | | | | 648,279 | |
Cost of shares redeemed | | | (12,088,883 | ) | | | (69,844,958 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (3,699,331 | ) | | | (37,380,453 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | 1,842,663 | | | | 1,269,745 | |
Issued to shareholders in reinvestment of distributions | | | 317,867 | | | | 1,974,435 | |
Cost of shares redeemed | | | (12,374,934 | ) | | | (10,060,017 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (10,214,404 | ) | | | (6,815,837 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 577,230 | | | | 1,263,895 | |
Issued to shareholders in reinvestment of distributions | | | 165,818 | | | | 760,924 | |
Cost of shares redeemed | | | (1,629,379 | ) | | | (3,738,476 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (886,331 | ) | | | (1,713,657 | ) |
| | | | | | | | |
Advisor Class | | | | | | | | |
Proceeds from sale of shares | | | 1,722,147 | | | | 3,551,848 | |
Issued to shareholders in reinvestment of distributions | | | 82,115 | | | | 256,581 | |
Cost of shares redeemed | | | (603,602 | ) | | | (2,692,723 | ) |
| | | | | | | | |
Net increase from share transactions | | | 1,200,660 | | | | 1,115,706 | |
| | | | | | | | |
Net decrease in net assets | | $ | (7,531,531 | ) | | $ | (85,797,350 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 81,669,796 | | | | 167,467,146 | |
| | | | | | | | |
End of period (including accumulated net investment loss of $(3,527,232) and $(2,797,050), respectively) | | $ | 74,138,265 | | | $ | 81,669,796 | |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 39 | | June 30, 2015 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward International Real Estate Fund (continued) | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Changes in Shares Outstanding: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 858,609 | | | | 1,920,150 | |
Distributions reinvested | | | 7,118 | | | | 24,574 | |
Redeemed | | | (716,661 | ) | | | (4,185,519 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | 149,066 | | | | (2,240,795 | ) |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 539,504 | | | | 2,068,328 | |
Distributions reinvested | | | 9,293 | | | | 43,672 | |
Redeemed | | | (790,911 | ) | | | (4,543,556 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (242,114 | ) | | | (2,431,556 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | 118,977 | | | | 82,010 | |
Distributions reinvested | | | 20,928 | | | | 132,604 | |
Redeemed | | | (801,967 | ) | | | (653,932 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (662,062 | ) | | | (439,318 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 37,112 | | | | 79,150 | |
Distributions reinvested | | | 10,915 | | | | 51,078 | |
Redeemed | | | (104,979 | ) | | | (241,771 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (56,952 | ) | | | (111,543 | ) |
| | | | | | | | |
Advisor Class | | | | | | | | |
Sold | | | 112,132 | | | | 231,855 | |
Distributions reinvested | | | 5,421 | | | | 17,294 | |
Redeemed | | | (40,315 | ) | | | (175,388 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 77,238 | | | | 73,761 | |
| | | | | | | | |
| | | | |
| June 30, 2015 | | 40 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Real Estate Fund | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Operations: | |
Net investment income | | $ | 504,858 | | | $ | 998,926 | |
Net realized gain on investments | | | 8,262,810 | | | | 7,807,733 | |
Net change in unrealized appreciation/(depreciation) on investments | | | (10,441,492 | ) | | | 13,679,270 | |
| | | | | | | | |
Net increase/(decrease) in net assets resulting from operations | | | (1,673,824 | ) | | | 22,485,929 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (125,159 | ) | | | (748,497 | ) |
Institutional Class | | | (28,636 | ) | | | (145,168 | ) |
Class A | | | (16,847 | ) | | | (70,227 | ) |
Class C | | | (1,336 | ) | | | (15,771 | ) |
From net realized gains on investments | | | | | | | | |
Investor Class | | | — | | | | (4,973,169 | ) |
Institutional Class | | | — | | | | (700,799 | ) |
Class A | | | — | | | | (466,514 | ) |
Class C | | | — | | | | (231,918 | ) |
| | | | | | | | |
Total distributions | | | (171,978 | ) | | | (7,352,063 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 19,668,035 | | | | 81,069,269 | |
Issued to shareholders in reinvestment of distributions | | | 97,981 | | | | 5,369,351 | |
Cost of shares redeemed | | | (51,025,797 | ) | | | (84,643,054 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (31,259,781 | ) | | | 1,795,566 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 6,436,642 | | | | 19,790,599 | |
Issued to shareholders in reinvestment of distributions | | | 14,122 | | | | 479,281 | |
Cost of shares redeemed | | | (10,080,777 | ) | | | (22,464,546 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (3,630,013 | ) | | | (2,194,666 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | 162,093 | | | | 363,904 | |
Issued to shareholders in reinvestment of distributions | | | 15,160 | | | | 483,810 | |
Cost of shares redeemed | | | (671,805 | ) | | | (1,496,422 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (494,552 | ) | | | (648,708 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 60,346 | | | | 1,450,890 | |
Issued to shareholders in reinvestment of distributions | | | 1,289 | | | | 237,717 | |
Cost of shares redeemed | | | (185,854 | ) | | | (472,031 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (124,219 | ) | | | 1,216,576 | |
| | | | | | | | |
Net increase/(decrease) in net assets | | $ | (37,354,367 | ) | | $ | 15,302,634 | |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 92,615,079 | | | | 77,312,445 | |
| | | | | | | | |
End of period (including accumulated net investment income of $390,489 and $57,609, respectively) | | $ | 55,260,712 | | | $ | 92,615,079 | |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 41 | | June 30, 2015 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Real Estate Fund (continued) | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Changes in Shares Outstanding: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 1,117,685 | | | | 4,905,629 | |
Distributions reinvested | | | 5,729 | | | | 310,946 | |
Redeemed | | | (2,847,713 | ) | | | (5,050,537 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (1,724,299 | ) | | | 166,038 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 410,478 | | | | 1,336,796 | |
Distributions reinvested | | | 936 | | | | 31,605 | |
Redeemed | | | (644,215 | ) | | | (1,513,128 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (232,801 | ) | | | (144,727 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | 9,171 | | | | 21,703 | |
Distributions reinvested | | | 894 | | | | 28,292 | |
Redeemed | | | (38,126 | ) | | | (88,994 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (28,061 | ) | | | (38,999 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 3,350 | | | | 79,710 | |
Distributions reinvested | | | 77 | | | | 13,748 | |
Redeemed | | | (10,472 | ) | | | (28,215 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (7,045 | ) | | | 65,243 | |
| | | | | | | | |
| | | | |
| June 30, 2015 | | 42 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Real Estate Long/Short Fund | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Operations: | |
Net investment income | | $ | 696,487 | | | $ | 599,659 | |
Net realized gain on investments | | | 6,214,149 | | | | 7,423,637 | |
Net realized loss on securities sold short | | | (301,380 | ) | | | (986,355 | ) |
Net realized gain/(loss) on written option contracts | | | 9,792 | | | | (19,775 | ) |
Net realized loss on foreign currency transactions | | | (353 | ) | | | (9,771 | ) |
Net change in unrealized appreciation/(depreciation) on investments, securities sold short, written option contracts and translation of assets and liabilities in foreign currencies | | | (8,345,859 | ) | | | 7,896,420 | |
| | | | | | | | |
Net increase/(decrease) in net assets resulting from operations | | | (1,727,164 | ) | | | 14,903,815 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (3,916 | ) | | | (13,496 | ) |
Institutional Class | | | (39,884 | ) | | | (201,917 | ) |
Class A | | | (70,068 | ) | | | (311,794 | ) |
Class B | | | (113 | ) | | | (3,565 | ) |
Class C | | | (13,501 | ) | | | (65,191 | ) |
Advisor Class | | | (4,931 | ) | | | (10,002 | ) |
| | | | | | | | |
Total distributions | | | (132,413 | ) | | | (605,965 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 723,087 | | | | 2,699,277 | |
Issued to shareholders in reinvestment of distributions | | | 3,916 | | | | 13,477 | |
Cost of shares redeemed | | | (1,056,712 | ) | | | (1,459,001 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (329,709 | ) | | | 1,253,753 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 1,370,329 | | | | 10,919,334 | |
Issued to shareholders in reinvestment of distributions | | | 33,859 | | | | 169,400 | |
Cost of shares redeemed | | | (2,471,864 | ) | | | (15,042,720 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (1,067,676 | ) | | | (3,953,986 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | 1,638,076 | | | | 4,885,324 | |
Issued to shareholders in reinvestment of distributions | | | 60,516 | | | | 263,131 | |
Cost of shares redeemed | | | (4,211,998 | ) | | | (7,095,946 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (2,513,406 | ) | | | (1,947,491 | ) |
| | | | | | | | |
Class B | | | | | | | | |
Proceeds from sale of shares | | | — | | | | 26,593 | |
Issued to shareholders in reinvestment of distributions | | | 110 | | | | 3,372 | |
Cost of shares redeemed | | | (529,126 | ) | | | (933,725 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (529,016 | ) | | | (903,760 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 1,035,045 | | | | 1,164,187 | |
Issued to shareholders in reinvestment of distributions | | | 13,011 | | | | 61,787 | |
Cost of shares redeemed | | | (1,484,977 | ) | | | (3,993,392 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (436,921 | ) | | | (2,767,418 | ) |
| | | | | | | | |
Advisor Class | | | | | | | | |
Proceeds from sale of shares | | | 1,314,859 | | | | 713,384 | |
Issued to shareholders in reinvestment of distributions | | | 4,931 | | | | 10,002 | |
Cost of shares redeemed | | | (603,325 | ) | | | (906,571 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | 716,465 | | | | (183,185 | ) |
| | | | | | | | |
Net increase/(decrease) in net assets | | $ | (6,019,840 | ) | | $ | 5,795,763 | |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 71,721,073 | | | | 65,925,310 | |
| | | | | | | | |
End of period (including accumulated net investment income/(loss) of $435,874 and $(128,200), respectively) | | $ | 65,701,233 | | | $ | 71,721,073 | |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 43 | | June 30, 2015 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Real Estate Long/Short Fund (continued) | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31, 2014 | |
Changes in Shares Outstanding: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 20,761 | | | | 157,188 | |
Distributions reinvested | | | 119 | | | | 412 | |
Redeemed | | | (30,986 | ) | | | (119,785 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (10,106 | ) | | | 37,815 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 39,302 | | | | 351,220 | |
Distributions reinvested | | | 998 | | | | 5,214 | |
Redeemed | | | (69,947 | ) | | | (475,664 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (29,647 | ) | | | (119,230 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | 46,916 | | | | 154,249 | |
Distributions reinvested | | | 1,836 | | | | 8,222 | |
Redeemed | | | (123,261 | ) | | | (226,269 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (74,509 | ) | | | (63,798 | ) |
| | | | | | | | |
Class B | | | | | | | | |
Sold | | | — | | | | 905 | |
Distributions reinvested | | | 3 | | | | 103 | |
Redeemed | | | (15,457 | ) | | | (30,315 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (15,454 | ) | | | (29,307 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 29,965 | | | | 37,187 | |
Distributions reinvested | | | 398 | | | | 1,888 | |
Redeemed | | | (43,672 | ) | | | (130,749 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (13,309 | ) | | | (91,674 | ) |
| | | | | | | | |
Advisor Class | | | | | | | | |
Sold | | | 37,270 | | | | 21,920 | |
Distributions reinvested | | | 145 | | | | 306 | |
Redeemed | | | (17,143 | ) | | | (28,362 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | 20,272 | | | | (6,136 | ) |
| | | | | | | | |
| | | | |
| June 30, 2015 | | 44 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Select Income Fund | |
| | | Six Months Ended
June 30, 2015 (Unaudited) | | | Year Ended December 31, 2014 | |
Operations: | |
Net investment income | | $ | 33,409,851 | | | $ | 48,140,054 | |
Net realized gain on investments | | | 48,082,298 | | | | 103,825,154 | |
Net realized loss on securities sold short | | | — | | | | (13,111,115 | ) |
Net change in unrealized appreciation/(depreciation) on affiliated investments, investments and securities sold short | | | (72,883,844 | ) | | | 101,598,565 | |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 8,608,305 | | | | 240,452,658 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (2,810,156 | ) | | | (2,867,801 | ) |
Institutional Class | | | (12,792,193 | ) | | | (19,639,132 | ) |
Class A | | | (12,285,906 | ) | | | (17,864,635 | ) |
Class B | | | (90,577 | ) | | | (185,577 | ) |
Class C | | | (4,413,866 | ) | | | (6,579,777 | ) |
Advisor Class | | | (1,024,350 | ) | | | (839,101 | ) |
From net realized gains on investments | | | | | | | | |
Investor Class | | | — | | | | (5,075,657 | ) |
Institutional Class | | | — | | | | (30,240,529 | ) |
Class A | | | — | | | | (29,914,855 | ) |
Class B | | | — | | | | (363,769 | ) |
Class C | | | — | | | | (13,015,171 | ) |
Advisor Class | | | — | | | | (1,230,308 | ) |
| | | | | | | | |
Total distributions | | | (33,417,048 | ) | | | (127,816,312 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 88,215,277 | | | | 122,939,104 | |
Issued to shareholders in reinvestment of distributions | | | 1,298,322 | | | | 4,389,800 | |
Cost of shares redeemed | | | (70,111,579 | ) | | | (119,444,849 | ) |
| | | | | | | | |
Net increase from share transactions | | | 19,402,020 | | | | 7,884,055 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 151,869,349 | | | | 375,027,804 | |
Issued to shareholders in reinvestment of distributions | | | 10,987,405 | | | | 41,498,250 | |
Cost of shares redeemed | | | (209,997,865 | ) | | | (313,017,777 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (47,141,111 | ) | | | 103,508,277 | |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | 113,629,405 | | | | 278,523,300 | |
Issued to shareholders in reinvestment of distributions | | | 10,224,211 | | | | 40,506,127 | |
Cost of shares redeemed | | | (203,157,096 | ) | | | (224,759,585 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (79,303,480 | ) | | | 94,269,842 | |
| | | | | | | | |
Class B | | | | | | | | |
Proceeds from sale of shares | | | 167,701 | | | | 370 | |
Issued to shareholders in reinvestment of distributions | | | 67,948 | | | | 429,800 | |
Cost of shares redeemed | | | (2,324,074 | ) | | | (2,543,390 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (2,088,425 | ) | | | (2,113,220 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 10,850,176 | | | | 21,049,129 | |
Issued to shareholders in reinvestment of distributions | | | 3,783,299 | | | | 17,221,104 | |
Cost of shares redeemed | | | (25,778,016 | ) | | | (51,482,788 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (11,144,541 | ) | | | (13,212,555 | ) |
| | | | | | | | |
Advisor Class | | | | | | | | |
Proceeds from sale of shares | | | 31,058,184 | | | | 21,607,629 | |
Issued to shareholders in reinvestment of distributions | | | 964,693 | | | | 1,852,670 | |
Cost of shares redeemed | | | (8,932,474 | ) | | | (7,649,314 | ) |
| | | | | | | | |
Net increase from share transactions | | | 23,090,403 | | | | 15,810,985 | |
| | | | | | | | |
Net increase/(decrease) in net assets | | $ | (121,993,877 | ) | | $ | 318,783,730 | |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 1,740,751,201 | | | | 1,421,967,471 | |
| | | | | | | | |
End of period (including accumulated net investment loss of $(7,197) and $0, respectively) | | $ | 1,618,757,324 | | | $ | 1,740,751,201 | |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 45 | | June 30, 2015 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Select Income Fund (continued) | |
| | | Six Months Ended
June 30, 2015 (Unaudited) | | | Year Ended December 31, 2014 | |
Changes in Shares Outstanding: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 3,428,096 | | | | 4,840,399 | |
Distributions reinvested | | | 50,974 | | | | 173,283 | |
Redeemed | | | (2,728,269 | ) | | | (4,686,040 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 750,801 | | | | 327,642 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 5,882,429 | | | | 14,768,804 | |
Distributions reinvested | | | 431,110 | | | | 1,640,592 | |
Redeemed | | | (8,146,600 | ) | | | (12,355,491 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (1,833,061 | ) | | | 4,053,905 | |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | 4,385,280 | | | | 10,900,857 | |
Distributions reinvested | | | 400,127 | | | | 1,598,924 | |
Redeemed | | | (7,890,674 | ) | | | (8,859,909 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (3,105,267 | ) | | | 3,639,872 | |
| | | | | | | | |
Class B | | | | | | | | |
Sold | | | 6,523 | | | | 14 | |
Distributions reinvested | | | 2,689 | | | | 17,175 | |
Redeemed | | | (90,790 | ) | | | (101,927 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (81,578 | ) | | | (84,738 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 427,636 | | | | 846,240 | |
Distributions reinvested | | | 151,508 | | | | 694,559 | |
Redeemed | | | (1,021,217 | ) | | | (2,089,834 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (442,073 | ) | | | (549,035 | ) |
| | | | | | | | |
Advisor Class | | | | | | | | |
Sold | | | 1,204,927 | | | | 846,819 | |
Distributions reinvested | | | 37,884 | | | | 73,189 | |
Redeemed | | | (347,268 | ) | | | (302,363 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 895,543 | | | | 617,645 | |
| | | | | | | | |
| | | | |
| June 30, 2015 | | 46 | | See Notes to Financial Statements |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Select Opportunity Fund | |
| | | Six Months Ended June 30, 2015
(Unaudited) | | | Year Ended December 31, 2014(a)(b) | |
Operations: | |
Net investment income | | $ | 300,906 | | | $ | 436,186 | |
Net realized gain/(loss) on investments | | | (741,599 | ) | | | 2,440,036 | |
Net realized loss on foreign currency transactions | | | (11,954 | ) | | | (156,846 | ) |
Net change in unrealized appreciation/(depreciation) on investments and translation of assets and liabilities in foreign currencies | | | 861,571 | | | | (1,515,241 | ) |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 408,924 | | | | 1,204,135 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Investor Class | | | (11,618 | ) | | | (17,192 | ) |
Institutional Class | | | (79,043 | ) | | | (287,565 | ) |
Class A | | | (166,506 | ) | | | (289,109 | ) |
Class C | | | (29,301 | ) | | | (21,984 | ) |
From net realized gains on investments | | | | | | | | |
Investor Class | | | — | | | | (84,830 | ) |
Institutional Class | | | — | | | | (905,864 | ) |
Class A | | | — | | | | (1,159,230 | ) |
Class C | | | — | | | | (119,800 | ) |
| | | | | | | | |
Total distributions | | | (286,468 | ) | | | (2,885,574 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Investor Class | | | | | | | | |
Proceeds from sale of shares | | | 76,174 | | | | 1,077,093 | |
Issued to shareholders in reinvestment of distributions | | | 9,038 | | | | 102,019 | |
Cost of shares redeemed | | | (152,689 | ) | | | (26,421 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | (67,477 | ) | | | 1,152,691 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Proceeds from sale of shares | | | 331,189 | | | | 6,013,529 | |
Issued to shareholders in reinvestment of distributions | | | 20,212 | | | | 598,581 | |
Cost of shares redeemed | | | (837,537 | ) | | | (9,812,042 | ) |
| | | | | | | | |
Net decrease from share transactions | | | (486,136 | ) | | | (3,199,932 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Proceeds from sale of shares | | | 4,020,613 | | | | 14,316,032 | |
Issued to shareholders in reinvestment of distributions | | | 160,731 | | | | 1,443,995 | |
Cost of shares redeemed | | | (2,735,722 | ) | | | (15,875,301 | ) |
| | | | | | | | |
Net increase/(decrease) from share transactions | | | 1,445,622 | | | | (115,274 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Proceeds from sale of shares | | | 3,926,553 | | | | 1,456,422 | |
Issued to shareholders in reinvestment of distributions | | | 28,976 | | | | 140,310 | |
Cost of shares redeemed | | | (252,387 | ) | | | (186,791 | ) |
| | | | | | | | |
Net increase from share transactions | | | 3,703,142 | | | | 1,409,941 | |
| | | | | | | | |
Net increase/(decrease) in net assets | | $ | 4,717,607 | | | $ | (2,434,013 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 21,835,252 | | | | 24,269,265 | |
| | | | | | | | |
End of period (including accumulated net investment income of $15,366 and $928, respectively) | | $ | 26,552,859 | | | $ | 21,835,252 | |
| | | | | | | | |
| | | | |
| See Notes to Financial Statements | | 47 | | June 30, 2015 |
Statement of Changes in Net Assets
| | | | | | | | |
| | | Forward Select Opportunity Fund (continued) | |
| | | Six Months Ended June 30, 2015
(Unaudited) | | | Year Ended December 31, 2014(a)(b) | |
Changes in Shares Outstanding: | | | | | | | | |
Investor Class | | | | | | | | |
Sold | | | 2,982 | | | | 37,745 | |
Distributions reinvested | | | 355 | | | | 4,045 | |
Redeemed | | | (5,933 | ) | | | (994 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | (2,596 | ) | | | 40,796 | |
| | | | | | | | |
Institutional Class | | | | | | | | |
Sold | | | 13,285 | | | | 218,636 | |
Distributions reinvested | | | 795 | | | | 23,461 | |
Redeemed | | | (33,037 | ) | | | (372,646 | ) |
| | | | | | | | |
Net decrease in shares outstanding | | | (18,957 | ) | | | (130,549 | ) |
| | | | | | | | |
Class A | | | | | | | | |
Sold | | | 157,041 | | | | 519,044 | |
Distributions reinvested | | | 6,318 | | | | 57,071 | |
Redeemed | | | (106,917 | ) | | | (589,331 | ) |
| | | | | | | | |
Net increase/(decrease) in shares outstanding | | | 56,442 | | | | (13,216 | ) |
| | | | | | | | |
Class C | | | | | | | | |
Sold | | | 151,398 | | | | 53,005 | |
Distributions reinvested | | | 1,138 | | | | 5,578 | |
Redeemed | | | (9,884 | ) | | | (7,532 | ) |
| | | | | | | | |
Net increase in shares outstanding | | | 142,652 | | | | 51,051 | |
| | | | | | | | |
(a) The Forward Select Opportunity Fund began offering Investor Class shares on June 2, 2014.
(b) The Forward Select Opportunity Fund began offering Class C shares on February 18, 2014.
| | | | |
| June 30, 2015 | | 48 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Global Infrastructure Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Period Ended
December 31,
2011(a) | |
Net Asset Value, Beginning of Period | | $ | 22.85 | | | $ | 23.17 | | | $ | 21.02 | | | $ | 18.68 | | | $ | 22.54 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income(b) | | | 0.37 | | | | 0.24 | | | | 0.35 | | | | 0.04 | | | | 0.23 | |
Net realized and unrealized gain/(loss) on investments | | | 0.46 | | | | (0.25 | ) | | | 2.00 | | | | 2.62 | | | | (3.75 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.83 | | | | (0.01 | ) | | | 2.35 | | | | 2.66 | | | | (3.52 | ) |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.18 | ) | | | (0.31 | ) | | | (0.20 | ) | | | (0.32 | ) | | | (0.34 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.18 | ) | | | (0.31 | ) | | | (0.20 | ) | | | (0.32 | ) | | | (0.34 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.65 | | | | (0.32 | ) | | | 2.15 | | | | 2.34 | | | | (3.86 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 23.50 | | | $ | 22.85 | | | $ | 23.17 | | | $ | 21.02 | | | $ | 18.68 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 3.73 | %(c) | | | (0.17 | )% | | | 11.31 | % | | | 14.48 | % | | | (15.74 | )%(c) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 23,887 | | | $ | 31,054 | | | $ | 11,217 | | | $ | 27,193 | | | $ | 21 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 3.15 | %(d) | | | 1.01 | % | | | 1.62 | % | | | 0.18 | % | | | 1.83 | %(d) |
Operating expenses including reimbursement/waiver | | | n/a | | | | n/a | | | | n/a | | | | n/a | | | | 1.72 | %(d)(e) |
Operating expenses excluding reimbursement/waiver | | | 1.84 | %(d) | | | 1.70 | % | | | 1.67 | % | | | 1.66 | % | | | 1.73 | %(d) |
Portfolio Turnover Rate | | | 56 | %(c) | | | 135 | % | | | 101 | % | | | 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 expense limitation agreement expired.
(f) Portfolio turnover rate is calculated at the Fund level and represents the year ended December 31, 2011.
| | | | |
| See Notes to Financial Statements | | 49 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Global Infrastructure Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | |
Net Asset Value, Beginning of Period | | $ | 23.03 | | | $ | 23.32 | | | $ | 21.10 | | | $ | 18.72 | | | $ | 20.27 | | | $ | 19.39 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.37 | (a) | | | 0.31 | (a) | | | 0.40 | (a) | | | 0.32 | (a) | | | 0.43 | (a) | | | 0.44 | |
Net realized and unrealized gain/(loss) on investments | | | 0.54 | | | | (0.24 | ) | | | 2.04 | | | | 2.42 | | | | (1.60 | ) | | | 1.11 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.91 | | | | 0.07 | | | | 2.44 | | | | 2.74 | | | | (1.17 | ) | | | 1.55 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.22 | ) | | | (0.36 | ) | | | (0.22 | ) | | | (0.36 | ) | | | (0.38 | ) | | | (0.67 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.22 | ) | | | (0.36 | ) | | | (0.22 | ) | | | (0.36 | ) | | | (0.38 | ) | | | (0.67 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.69 | | | | (0.29 | ) | | | 2.22 | | | | 2.38 | | | | (1.55 | ) | | | 0.88 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 23.72 | | | $ | 23.03 | | | $ | 23.32 | | | $ | 21.10 | | | $ | 18.72 | | | $ | 20.27 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 4.05 | %(b) | | | 0.17 | % | | | 11.69 | % | | | 14.95 | % | | | (5.92 | )% | | | 8.50 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 14,969 | | | $ | 40,774 | | | $ | 39,347 | | | $ | 90,441 | | | $ | 72,691 | | | $ | 37,217 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 3.06 | %(c) | | | 1.30 | % | | | 1.86 | % | | | 1.61 | % | | | 2.12 | % | | | 2.13 | % |
Operating expenses including reimbursement/waiver | | | n/a | | | | n/a | | | | n/a | | | | n/a | | | | 1.29 | %(d) | | | 1.25 | % |
Operating expenses excluding reimbursement/waiver | | | 1.48 | %(c) | | | 1.35 | % | | | 1.30 | % | | | 1.23 | % | | | 1.29 | % | | | 1.26 | % |
Portfolio Turnover Rate | | | 56 | %(b) | | | 135 | % | | | 101 | % | | | 74 | % | | | 88 | % | | | 85 | % |
(a) Per share amounts are based upon average shares outstanding.
(b) Not Annualized.
(c) Annualized.
(d) Effective July 1, 2011, the expense limitation agreement expired.
| | | | |
| June 30, 2015 | | 50 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Global Infrastructure Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | |
Net Asset Value, Beginning of Period | | $ | 22.98 | | | $ | 23.29 | | | $ | 21.12 | | | $ | 18.72 | | | $ | 20.28 | | | $ | 19.38 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.34 | (a) | | | 0.21 | (a) | | | 0.24 | (a) | | | 0.26 | (a) | | | 0.36 | (a) | | | 0.40 | |
Net realized and unrealized gain/(loss) on investments | | | 0.50 | | | | (0.24 | ) | | | 2.11 | | | | 2.43 | | | | (1.60 | ) | | | 1.12 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.84 | | | | (0.03 | ) | | | 2.35 | | | | 2.69 | | | | (1.24 | ) | | | 1.52 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.18 | ) | | | (0.28 | ) | | | (0.18 | ) | | | (0.29 | ) | | | (0.32 | ) | | | (0.62 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.18 | ) | | | (0.28 | ) | | | (0.18 | ) | | | (0.29 | ) | | | (0.32 | ) | | | (0.62 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.66 | | | | (0.31 | ) | | | 2.17 | | | | 2.40 | | | | (1.56 | ) | | | 0.90 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 23.64 | | | $ | 22.98 | | | $ | 23.29 | | | $ | 21.12 | | | $ | 18.72 | | | $ | 20.28 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(b) | | | 3.67 | %(c) | | | (0.19 | )% | | | 11.26 | % | | | 14.57 | % | | | (6.24 | )% | | | 8.29 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 15,706 | | | $ | 17,427 | | | $ | 22,524 | | | $ | 23,848 | | | $ | 27,248 | | | $ | 50,631 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 2.88 | %(d) | | | 0.89 | % | | | 1.10 | % | | | 1.31 | % | | | 1.75 | % | | | 1.85 | % |
Operating expenses including reimbursement/waiver | | | n/a | | | | n/a | | | | n/a | | | | n/a | | | | 1.52 | %(e) | | | 1.50 | % |
Operating expenses excluding reimbursement/waiver | | | 1.90 | %(d) | | | 1.75 | % | | | 1.74 | % | | | 1.58 | % | | | 1.52 | % | | | 1.51 | % |
Portfolio Turnover Rate | | | 56 | %(c) | | | 135 | % | | | 101 | % | | | 74 | % | | | 88 | % | | | 85 | % |
(a) Per share amounts are based upon average shares outstanding.
(b) Total return does not reflect the effect of sales charges.
(c) Not Annualized.
(d) Annualized.
(e) Effective July 1, 2011, the expense limitation agreement expired.
| | | | |
| See Notes to Financial Statements | | 51 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Global Infrastructure Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class B | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | |
Net Asset Value, Beginning of Period | | $ | 22.88 | | | $ | 23.21 | | | $ | 21.10 | | | $ | 18.73 | | | $ | 20.28 | | | $ | 19.36 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.28 | (a) | | | 0.08 | (a) | | | 0.11 | (a) | | | 0.13 | (a) | | | 0.20 | (a) | | | 0.26 | |
Net realized and unrealized gain/(loss) on investments | | | 0.49 | | | | (0.24 | ) | | | 2.11 | | | | 2.42 | | | | (1.59 | ) | | | 1.13 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.77 | | | | (0.16 | ) | | | 2.22 | | | | 2.55 | | | | (1.39 | ) | | | 1.39 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.11 | ) | | | (0.17 | ) | | | (0.11 | ) | | | (0.18 | ) | | | (0.16 | ) | | | (0.47 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.11 | ) | | | (0.17 | ) | | | (0.11 | ) | | | (0.18 | ) | | | (0.16 | ) | | | (0.47 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.66 | | | | (0.33 | ) | | | 2.11 | | | | 2.37 | | | | (1.55 | ) | | | 0.92 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 23.54 | | | $ | 22.88 | | | $ | 23.21 | | | $ | 21.10 | | | $ | 18.73 | | | $ | 20.28 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(b) | | | 3.42 | %(c) | | | (0.73 | )% | | | 10.61 | % | | | 13.78 | % | | | (6.93 | )% | | | 7.50 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 830 | | | $ | 903 | | | $ | 1,288 | | | $ | 1,608 | | | $ | 2,203 | | | $ | 3,184 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 2.34 | %(d) | | | 0.32 | % | | | 0.50 | % | | | 0.65 | % | | | 0.98 | % | | | 1.17 | % |
Operating expenses including reimbursement/waiver | | | n/a | | | | n/a | | | | n/a | | | | n/a | | | | 2.27 | %(e) | | | 2.25 | % |
Operating expenses excluding reimbursement/waiver | | | 2.45 | %(d) | | | 2.30 | % | | | 2.32 | % | | | 2.23 | % | | | 2.28 | % | | | 2.26 | % |
Portfolio Turnover Rate | | | 56 | %(c) | | | 135 | % | | | 101 | % | | | 74 | % | | | 88 | % | | | 85 | % |
(a) Per share amounts are based upon average shares outstanding.
(b) Total return does not reflect the effect of sales charges.
(c) Not Annualized.
(d) Annualized.
(e) Effective July 1, 2011, the expense limitation agreement expired.
| | | | |
| June 30, 2015 | | 52 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Global Infrastructure Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class C | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | |
Net Asset Value, Beginning of Period | | $ | 22.92 | | | $ | 23.25 | | | $ | 21.14 | | | $ | 18.77 | | | $ | 20.32 | | | $ | 19.40 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.28 | (a) | | | 0.08 | (a) | | | 0.11 | (a) | | | 0.13 | (a) | | | 0.20 | (a) | | | 0.26 | |
Net realized and unrealized gain/(loss) on investments | | | 0.48 | | | | (0.23 | ) | | | 2.11 | | | | 2.43 | | | | (1.58 | ) | | | 1.13 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.76 | | | | (0.15 | ) | | | 2.22 | | | | 2.56 | | | | (1.38 | ) | | | 1.39 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.11 | ) | | | (0.18 | ) | | | (0.11 | ) | | | (0.19 | ) | | | (0.17 | ) | | | (0.47 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.11 | ) | | | (0.18 | ) | | | (0.11 | ) | | | (0.19 | ) | | | (0.17 | ) | | | (0.47 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.65 | | | | (0.33 | ) | | | 2.11 | | | | 2.37 | | | | (1.55 | ) | | | 0.92 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 23.57 | | | $ | 22.92 | | | $ | 23.25 | | | $ | 21.14 | | | $ | 18.77 | | | $ | 20.32 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(b) | | | 3.41 | %(c) | | | (0.75 | )% | | | 10.60 | % | | | 13.78 | % | | | (6.90 | )% | | | 7.51 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 6,004 | | | $ | 6,459 | | | $ | 7,350 | | | $ | 8,223 | | | $ | 8,397 | | | $ | 11,697 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 2.33 | %(d) | | | 0.35 | % | | | 0.51 | % | | | 0.63 | % | | | 0.99 | % | | | 1.14 | % |
Operating expenses including reimbursement/waiver | | | n/a | | | | n/a | | | | n/a | | | | n/a | | | | 2.28 | %(e) | | | 2.25 | % |
Operating expenses excluding reimbursement/waiver | | | 2.45 | %(d) | | | 2.30 | % | | | 2.32 | % | | | 2.23 | % | | | 2.28 | % | | | 2.26 | % |
Portfolio Turnover Rate | | | 56 | %(c) | | | 135 | % | | | 101 | % | | | 74 | % | | | 88 | % | | | 85 | % |
(a) Per share amounts are based upon average shares outstanding.
(b) Total return does not reflect the effect of sales charges.
(c) Not Annualized.
(d) Annualized.
(e) Effective July 1, 2011, the expense limitation agreement expired.
| | | | |
| See Notes to Financial Statements | | 53 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Global Infrastructure Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Advisor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013(a) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Period Ended
December 31,
2010(b) | |
Net Asset Value, Beginning of Period | | $ | 23.01 | | | $ | 23.30 | | | $ | 21.10 | | | $ | 18.72 | | | $ | 20.27 | | | $ | 18.70 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.42 | (c) | | | 0.32 | (c) | | | 0.44 | (c) | | | 0.29 | (c) | | | 0.41 | (c) | | | 0.33 | |
Net realized and unrealized gain/(loss) on investments | | | 0.46 | | | | (0.26 | ) | | | 1.98 | | | | 2.45 | | | | (1.58 | ) | | | 1.91 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.88 | | | | 0.06 | | | | 2.42 | | | | 2.74 | | | | (1.17 | ) | | | 2.24 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.22 | ) | | | (0.35 | ) | | | (0.22 | ) | | | (0.36 | ) | | | (0.38 | ) | | | (0.67 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.22 | ) | | | (0.35 | ) | | | (0.22 | ) | | | (0.36 | ) | | | (0.38 | ) | | | (0.67 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.66 | | | | (0.29 | ) | | | 2.20 | | | | 2.38 | | | | (1.55 | ) | | | 1.57 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 23.67 | | | $ | 23.01 | | | $ | 23.30 | | | $ | 21.10 | | | $ | 18.72 | | | $ | 20.27 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 3.85 | %(d) | | | 0.18 | % | | | 11.63 | % | | | 14.89 | % | | | (5.92 | )% | | | 12.49 | %(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 534 | | | $ | 454 | | | $ | 432 | | | $ | 3,694 | | | $ | 223 | | | $ | 168 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 3.52 | %(e) | | | 1.29 | % | | | 2.00 | % | | | 1.45 | % | | | 2.03 | % | | | 2.60 | %(e) |
Operating expenses including reimbursement/waiver | | | n/a | | | | n/a | | | | n/a | | | | n/a | | | | 1.28 | %(f) | | | 1.24 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 1.55 | %(e) | | | 1.38 | % | | | 1.29 | % | | | 1.24 | % | | | 1.29 | % | | | 1.26 | %(e) |
Portfolio Turnover Rate | | | 56 | %(d) | | | 135 | % | | | 101 | % | | | 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 expense limitation agreement expired.
(g) Portfolio turnover rate is calculated at the Fund level and represents the year ended December 31, 2010.
| | | | |
| June 30, 2015 | | 54 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward International Real Estate Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Period Ended
December 31,
2011(a) | |
Net Asset Value, Beginning of Period | | $ | 14.74 | | | $ | 15.65 | | | $ | 17.26 | | | $ | 12.17 | | | $ | 17.58 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income(b) | | | 0.14 | | | | 0.18 | | | | 0.38 | | | | 0.46 | | | | 0.17 | |
Net realized and unrealized gain/(loss) on investments | | | 0.82 | | | | 0.02 | | | | (1.01 | ) | | | 6.03 | | | | (4.05 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.96 | | | | 0.20 | | | | (0.63 | ) | | | 6.49 | | | | (3.88 | ) |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.28 | ) | | | (1.11 | ) | | | (0.98 | ) | | | (1.40 | ) | | | (1.53 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.28 | ) | | | (1.11 | ) | | | (0.98 | ) | | | (1.40 | ) | | | (1.53 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.68 | | | | (0.91 | ) | | | (1.61 | ) | | | 5.09 | | | | (5.41 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 15.42 | | | $ | 14.74 | | | $ | 15.65 | | | $ | 17.26 | | | $ | 12.17 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 6.57 | %(c) | | | 1.33 | % | | | (3.51 | )% | | | 54.05 | % | | | (22.31 | )%(c) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 18,391 | | | $ | 15,385 | | | $ | 51,393 | | | $ | 12,027 | | | $ | 30 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 1.86 | %(d) | | | 1.17 | % | | | 2.30 | % | | | 2.76 | % | | | 1.81 | %(d) |
Operating expenses including reimbursement/waiver/recoupment of past waived fees by advisor | | | n/a | | | | 1.79 | %(e) | | | 1.75 | % | | | 1.80 | % | | | 1.80 | %(d) |
Operating expenses excluding reimbursement/waiver | | | 1.85 | %(d) | | | 1.79 | % | | | 1.75 | % | | | 1.84 | % | | | 2.34 | %(d) |
Portfolio Turnover Rate | | | 158 | %(c) | | | 242 | % | | | 202 | % | | | 209 | % | | | 309 | %(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 May 1, 2014, the expense limitation agreement expired.
(f) Portfolio turnover rate is calculated at the Fund level and represents the year ended December 31, 2011.
| | | | |
| See Notes to Financial Statements | | 55 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward International Real Estate Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | |
Net Asset Value, Beginning of Period | | $ | 14.65 | | | $ | 15.61 | | | $ | 17.24 | | | $ | 12.13 | | | $ | 15.97 | | | $ | 15.51 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.16 | (a) | | | 0.38 | (a) | | | 0.43 | (a) | | | 0.47 | (a) | | | 0.39 | (a) | | | 0.64 | |
Net realized and unrealized gain/(loss) on investments | | | 0.82 | | | | (0.12 | ) | | | (1.02 | ) | | | 6.07 | | | | (2.66 | ) | | | 1.96 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.98 | | | | 0.26 | | | | (0.59 | ) | | | 6.54 | | | | (2.27 | ) | | | 2.60 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.31 | ) | | | (1.22 | ) | | | (1.04 | ) | | | (1.43 | ) | | | (1.57 | ) | | | (2.14 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.31 | ) | | | (1.22 | ) | | | (1.04 | ) | | | (1.43 | ) | | | (1.57 | ) | | | (2.14 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.67 | | | | (0.96 | ) | | | (1.63 | ) | | | 5.11 | | | | (3.84 | ) | | | 0.46 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 15.32 | | | $ | 14.65 | | | $ | 15.61 | | | $ | 17.24 | | | $ | 12.13 | | | $ | 15.97 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 6.76 | %(b) | | | 1.75 | % | | | (3.31 | )% | | | 54.75 | % | | | (14.56 | )% | | | 18.46 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 22,324 | | | $ | 24,886 | | | $ | 64,484 | | | $ | 62,978 | | | $ | 4,260 | | | $ | 3,187 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 2.08 | %(c) | | | 2.47 | % | | | 2.52 | % | | | 2.81 | % | | | 2.59 | % | | | 2.90 | % |
Operating expenses including reimbursement/waiver/recoupment of past waived fees by advisor | | | n/a | | | | 1.45 | %(d) | | | 1.40 | %(e) | | | 1.40 | % | | | 1.40 | % | | | 1.40 | % |
Operating expenses excluding reimbursement/waiver | | | 1.49 | %(c) | | | 1.47 | % | | | 1.40 | % | | | 1.43 | % | | | 1.78 | % | | | 1.76 | % |
Portfolio Turnover Rate | | | 158 | %(b) | | | 242 | % | | | 202 | % | | | 209 | % | | | 309 | % | | | 285 | % |
(a) Per share amounts are based upon average shares outstanding.
(b) Not Annualized.
(c) Annualized.
(d) Effective May 1, 2014, the expense limitation agreement expired.
(e) Effective May 1, 2013, the annual expense limitation rate changed from 1.40% to 1.45%.
| | | | |
| June 30, 2015 | | 56 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward International Real Estate Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | |
Net Asset Value, Beginning of Period | | $ | 14.72 | | | $ | 15.68 | | | $ | 17.28 | | | $ | 12.17 | | | $ | 16.04 | | | $ | 15.54 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.12 | (a) | | | 0.35 | (a) | | | 0.31 | (a) | | | 0.41 | (a) | | | 0.34 | (a) | | | 0.07 | |
Net realized and unrealized gain/(loss) on investments | | | 0.84 | | | | (0.15 | ) | | | (0.97 | ) | | | 6.09 | | | | (2.67 | ) | | | 2.52 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.96 | | | | 0.20 | | | | (0.66 | ) | | | 6.50 | | | | (2.33 | ) | | | 2.59 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.27 | ) | | | (1.16 | ) | | | (0.94 | ) | | | (1.39 | ) | | | (1.54 | ) | | | (2.09 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.27 | ) | | | (1.16 | ) | | | (0.94 | ) | | | (1.39 | ) | | | (1.54 | ) | | | (2.09 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.69 | | | | (0.96 | ) | | | (1.60 | ) | | | 5.11 | | | | (3.87 | ) | | | 0.50 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 15.41 | | | $ | 14.72 | | | $ | 15.68 | | | $ | 17.28 | | | $ | 12.17 | | | $ | 16.04 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(b) | | | 6.56 | %(c) | | | 1.32 | % | | | (3.71 | )% | | | 54.06 | % | | | (14.80 | )% | | | 18.33 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 16,348 | | | $ | 25,369 | | | $ | 33,913 | | | $ | 74,449 | | | $ | 20,594 | | | $ | 29,007 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 1.55 | %(d) | | | 2.22 | % | | | 1.80 | % | | | 2.51 | % | | | 2.23 | % | | | 2.57 | % |
Operating expenses including reimbursement/waiver/recoupment of past waived fees by advisor | | | n/a | | | | 1.85 | %(e) | | | 1.80 | %(f) | | | 1.77 | %(g) | | | 1.65 | % | | | 1.65 | % |
Operating expenses excluding reimbursement/waiver | | | 1.89 | %(d) | | | 1.87 | % | | | 1.80 | % | | | 1.83 | % | | | 1.99 | % | | | 2.01 | % |
Portfolio Turnover Rate | | | 158 | %(c) | | | 242 | % | | | 202 | % | | | 209 | % | | | 309 | % | | | 285 | % |
(a) Per share amounts are based upon average shares outstanding.
(b) Total return does not reflect the effect of sales charges.
(c) Not Annualized.
(d) Annualized.
(e) Effective May 1, 2014, the expense limitation agreement expired.
(f) Effective May 1, 2013, the annual expense limitation rate changed from 1.80% to 1.85%.
(g) Effective May 1, 2012, the annual expense limitation rate changed from 1.65% to 1.80%.
| | | | |
| See Notes to Financial Statements | | 57 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward International Real Estate Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class C | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | |
Net Asset Value, Beginning of Period | | $ | 14.75 | | | $ | 15.71 | | | $ | 17.33 | | | $ | 12.20 | | | $ | 16.06 | | | $ | 15.56 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.09 | (a) | | | 0.26 | (a) | | | 0.27 | (a) | | | 0.29 | (a) | | | 0.22 | (a) | | | 0.32 | |
Net realized and unrealized gain/(loss) on investments | | | 0.82 | | | | (0.15 | ) | | | (1.02 | ) | | | 6.12 | | | | (2.67 | ) | | | 2.15 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.91 | | | | 0.11 | | | | (0.75 | ) | | | 6.41 | | | | (2.45 | ) | | | 2.47 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.23 | ) | | | (1.07 | ) | | | (0.87 | ) | | | (1.28 | ) | | | (1.41 | ) | | | (1.97 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.23 | ) | | | (1.07 | ) | | | (0.87 | ) | | | (1.28 | ) | | | (1.41 | ) | | | (1.97 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.68 | | | | (0.96 | ) | | | (1.62 | ) | | | 5.13 | | | | (3.86 | ) | | | 0.50 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 15.43 | | | $ | 14.75 | | | $ | 15.71 | | | $ | 17.33 | | | $ | 12.20 | | | $ | 16.06 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(b) | | | 6.29 | %(c) | | | 0.75 | % | | | (4.23 | )% | | | 53.13 | % | | | (15.42 | )% | | | 17.40 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 11,567 | | | $ | 11,896 | | | $ | 14,421 | | | $ | 12,780 | | | $ | 7,916 | | | $ | 11,489 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 1.18 | %(d) | | | 1.66 | % | | | 1.60 | % | | | 1.81 | % | | | 1.45 | % | | | 1.87 | % |
Operating expenses including reimbursement/waiver/recoupment of past waived fees by advisor | | | n/a | | | | 2.40 | %(e) | | | 2.39 | % | | | 2.40 | % | | | 2.40 | % | | | 2.40 | % |
Operating expenses excluding reimbursement/waiver | | | 2.44 | %(d) | | | 2.42 | % | | | 2.39 | % | | | 2.48 | % | | | 2.74 | % | | | 2.76 | % |
Portfolio Turnover Rate | | | 158 | %(c) | | | 242 | % | | | 202 | % | | | 209 | % | | | 309 | % | | | 285 | % |
(a) Per share amounts are based upon average shares outstanding.
(b) Total return does not reflect the effect of sales charges.
(c) Not Annualized.
(d) Annualized.
(e) Effective May 1, 2014, the expense limitation agreement expired.
| | | | |
| June 30, 2015 | | 58 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward International Real Estate Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Advisor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013(a) | | | Year Ended
December 31,
2012 | | | Period Ended
December 31,
2011(b) | |
Net Asset Value, Beginning of Period | | $ | 14.64 | | | $ | 15.60 | | | $ | 17.22 | | | $ | 12.12 | | | $ | 17.52 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.17 | | | | 0.44 | | | | 0.41 | | | | 0.25 | | | | 0.32 | |
Net realized and unrealized gain/(loss) on investments | | | 0.81 | | | | (0.18 | ) | | | (1.00 | ) | | | 6.29 | | | | (4.15 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.98 | | | | 0.26 | | | | (0.59 | ) | | | 6.54 | | | | (3.83 | ) |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.30 | ) | | | (1.22 | ) | | | (1.03 | ) | | | (1.44 | ) | | | (1.57 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.30 | ) | | | (1.22 | ) | | | (1.03 | ) | | | (1.44 | ) | | | (1.57 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.68 | | | | (0.96 | ) | | | (1.62 | ) | | | 5.10 | | | | (5.40 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 15.32 | | | $ | 14.64 | | | $ | 15.60 | | | $ | 17.22 | | | $ | 12.12 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 6.74 | %(d) | | | 1.71 | % | | | (3.29 | )% | | | 54.68 | % | | | (22.10 | )%(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 5,509 | | | $ | 4,136 | | | $ | 3,256 | | | $ | 1,682 | | | $ | 8 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 2.27 | %(e) | | | 2.83 | % | | | 2.42 | % | | | 1.46 | % | | | 3.32 | %(e) |
Operating expenses including reimbursement/waiver/recoupment of past waived fees by advisor | | | n/a | | | | 1.50 | %(f) | | | 1.41 | %(g) | | | 1.38 | % | | | 1.40 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 1.54 | %(e) | | | 1.52 | % | | | 1.41 | % | | | 1.45 | % | | | 1.91 | %(e) |
Portfolio Turnover Rate | | | 158 | %(d) | | | 242 | % | | | 202 | % | | | 209 | % | | | 309 | %(h) |
(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, 2014, the expense limitation agreement expired.
(g) Effective May 1, 2013, the annual expense limitation rate changed from 1.40% to 1.50%.
(h) Portfolio turnover rate is calculated at the Fund level and represents the year ended December 31, 2011.
| | | | |
| See Notes to Financial Statements | | 59 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Real Estate Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | |
Net Asset Value, Beginning of Period | | $ | 17.45 | | | $ | 14.73 | | | $ | 14.97 | | | $ | 12.71 | | | $ | 12.33 | | | $ | 10.03 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.15 | (a) | | | 0.18 | (a) | | | 0.15 | (a) | | | 0.11 | (a) | | | 0.10 | (a) | | | 0.17 | |
Net realized and unrealized gain/(loss) on investments | | | (1.03 | ) | | | 3.96 | | | | 0.22 | | | | 2.26 | | | | 0.37 | | | | 2.36 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.88 | ) | | | 4.14 | | | | 0.37 | | | | 2.37 | | | | 0.47 | | | | 2.53 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.05 | ) | | | (0.18 | ) | | | (0.11 | ) | | | (0.11 | ) | | | (0.09 | ) | | | (0.23 | ) |
From capital gains | | | — | | | | (1.24 | ) | | | (0.50 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.05 | ) | | | (1.42 | ) | | | (0.61 | ) | | | (0.11 | ) | | | (0.09 | ) | | | (0.23 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.93 | ) | | | 2.72 | | | | (0.24 | ) | | | 2.26 | | | | 0.38 | | | | 2.30 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 16.52 | | | $ | 17.45 | | | $ | 14.73 | | | $ | 14.97 | | | $ | 12.71 | | | $ | 12.33 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | (5.05 | )%(b) | | | 28.30 | % | | | 2.47 | % | | | 18.69 | % | | | 3.84 | % | | | 25.40 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 40,694 | | | $ | 73,060 | | | $ | 59,219 | | | $ | 25,602 | | | $ | 24,126 | | | $ | 25,733 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 1.74 | %(c) | | | 1.10 | % | | | 0.99 | % | | | 0.78 | % | | | 0.78 | % | | | 1.48 | % |
Operating expenses including reimbursement/waiver | | | n/a | | | | n/a | | | | n/a | | | | n/a | | | | 1.65 | %(d) | | | 1.60 | % |
Operating expenses excluding reimbursement/waiver | | | 1.67 | %(c) | | | 1.58 | % | | | 1.63 | % | | | 1.67 | % | | | 1.68 | % | | | 1.87 | % |
Portfolio Turnover Rate | | | 45 | %(b) | | | 85 | % | | | 58 | % | | | 33 | % | | | 36 | % | | | 66 | % |
(a) Per share amounts are based upon average shares outstanding.
(b) Not Annualized.
(c) Annualized.
(d) Effective July 1, 2011, the expense limitation agreement expired.
| | | | |
| June 30, 2015 | | 60 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Real Estate Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | |
Net Asset Value, Beginning of Period | | $ | 15.30 | | | $ | 13.06 | | | $ | 13.35 | | | $ | 11.34 | | | $ | 11.01 | | | $ | 8.98 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.15 | (a) | | | 0.21 | (a) | | | 0.18 | (a) | | | 0.17 | (a) | | | 0.14 | (a) | | | 0.08 | |
Net realized and unrealized gain/(loss) on investments | | | (0.88 | ) | | | 3.51 | | | | 0.20 | | | | 2.01 | | | | 0.33 | | | | 2.22 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.73 | ) | | | 3.72 | | | | 0.38 | | | | 2.18 | | | | 0.47 | | | | 2.30 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.08 | ) | | | (0.24 | ) | | | (0.17 | ) | | | (0.17 | ) | | | (0.14 | ) | | | (0.27 | ) |
From capital gains | | | — | | | | (1.24 | ) | | | (0.50 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.08 | ) | | | (1.48 | ) | | | (0.67 | ) | | | (0.17 | ) | | | (0.14 | ) | | | (0.27 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.81 | ) | | | 2.24 | | | | (0.29 | ) | | | 2.01 | | | | 0.33 | | | | 2.03 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 14.49 | | | $ | 15.30 | | | $ | 13.06 | | | $ | 13.35 | | | $ | 11.34 | | | $ | 11.01 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | (4.79 | )%(b) | | | 28.77 | % | | | 2.81 | % | | | 19.28 | % | | | 4.25 | % | | | 25.91 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 5,209 | | | $ | 9,065 | | | $ | 9,625 | | | $ | 4,454 | | | $ | 764 | | | $ | 680 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 1.98 | %(c) | | | 1.42 | % | | | 1.30 | % | | | 1.30 | % | | | 1.23 | % | | | 1.86 | % |
Operating expenses including reimbursement/waiver | | | n/a | | | | n/a | | | | n/a | | | | n/a | | | | 1.25 | %(d) | | | 1.20 | % |
Operating expenses excluding reimbursement/waiver | | | 1.32 | %(c) | | | 1.22 | % | | | 1.28 | % | | | 1.25 | % | | | 1.28 | % | | | 1.47 | % |
Portfolio Turnover Rate | | | 45 | %(b) | | | 85 | % | | | 58 | % | | | 33 | % | | | 36 | % | | | 66 | % |
(a) Per share amounts are based upon average shares outstanding.
(b) Not Annualized.
(c) Annualized.
(d) Effective July 1, 2011, the expense limitation agreement expired.
| | | | |
| See Notes to Financial Statements | | 61 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Real Estate Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | |
Net Asset Value, Beginning of Period | | $ | 17.29 | | | $ | 14.61 | | | $ | 14.85 | | | $ | 12.60 | | | $ | 12.22 | | | $ | 9.95 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.14 | (a) | | | 0.17 | (a) | | | 0.11 | (a) | | | 0.12 | (a) | | | 0.12 | (a) | | | 0.15 | |
Net realized and unrealized gain/(loss) on investments | | | (1.00 | ) | | | 3.92 | | | | 0.26 | | | | 2.25 | | | | 0.37 | | | | 2.37 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.86 | ) | | | 4.09 | | | | 0.37 | | | | 2.37 | | | | 0.49 | | | | 2.52 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.05 | ) | | | (0.17 | ) | | | (0.11 | ) | | | (0.12 | ) | | | (0.11 | ) | | | (0.25 | ) |
From capital gains | | | — | | | | (1.24 | ) | | | (0.50 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.05 | ) | | | (1.41 | ) | | | (0.61 | ) | | | (0.12 | ) | | | (0.11 | ) | | | (0.25 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.91 | ) | | | 2.68 | | | | (0.24 | ) | | | 2.25 | | | | 0.38 | | | | 2.27 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 16.38 | | | $ | 17.29 | | | $ | 14.61 | | | $ | 14.85 | | | $ | 12.60 | | | $ | 12.22 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(b) | | | (5.07 | )%(c) | | | 28.29 | % | | | 2.44 | % | | | 18.83 | % | | | 4.01 | % | | | 25.49 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 6,025 | | | $ | 6,846 | | | $ | 6,351 | | | $ | 6,994 | | | $ | 7,159 | | | $ | 8,571 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 1.61 | %(d) | | | 1.00 | % | | | 0.69 | % | | | 0.82 | % | | | 0.92 | % | | | 1.62 | % |
Operating expenses including reimbursement/waiver | | | n/a | | | | n/a | | | | n/a | | | | n/a | | | | 1.50 | %(e) | | | 1.45 | % |
Operating expenses excluding reimbursement/waiver | | | 1.73 | %(d) | | | 1.63 | % | | | 1.66 | % | | | 1.62 | % | | | 1.53 | % | | | 1.71 | % |
Portfolio Turnover Rate | | | 45 | %(c) | | | 85 | % | | | 58 | % | | | 33 | % | | | 36 | % | | | 66 | % |
(a) Per share amounts are based upon average shares outstanding.
(b) Total return does not reflect the effect of sales charges.
(c) Not Annualized.
(d) Annualized.
(e) Effective July 1, 2011, the expense limitation agreement expired.
| | | | |
| June 30, 2015 | | 62 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Real Estate Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class C | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | |
Net Asset Value, Beginning of Period | | $ | 17.44 | | | $ | 14.73 | | | $ | 14.99 | | | $ | 12.72 | | | $ | 12.35 | | | $ | 10.04 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.09 | (a) | | | 0.12 | (a) | | | 0.02 | (a) | | | 0.02 | (a) | | | 0.02 | (a) | | | 0.10 | |
Net realized and unrealized gain/(loss) on investments | | | (1.01 | ) | | | 3.92 | | | | 0.25 | | | | 2.27 | | | | 0.38 | | | | 2.37 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.92 | ) | | | 4.04 | | | | 0.27 | | | | 2.29 | | | | 0.40 | | | | 2.47 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.01 | ) | | | (0.09 | ) | | | (0.03 | ) | | | (0.02 | ) | | | (0.03 | ) | | | (0.16 | ) |
From capital gains | | | — | | | | (1.24 | ) | | | (0.50 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.01 | ) | | | (1.33 | ) | | | (0.53 | ) | | | (0.02 | ) | | | (0.03 | ) | | | (0.16 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.93 | ) | | | 2.71 | | | | (0.26 | ) | | | 2.27 | | | | 0.37 | | | | 2.31 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 16.51 | | | $ | 17.44 | | | $ | 14.73 | | | $ | 14.99 | | | $ | 12.72 | | | $ | 12.35 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(b) | | | (5.30 | )%(c) | | | 27.57 | % | | | 1.79 | % | | | 18.04 | % | | | 3.21 | % | | | 24.71 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 3,333 | | | $ | 3,644 | | | $ | 2,117 | | | $ | 2,190 | | | $ | 2,178 | | | $ | 2,656 | |
Ratios to Average Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income including reimbursement/waiver/recoupment of past waived fees by advisor | | | 1.07 | %(d) | | | 0.71 | % | | | 0.13 | % | | | 0.17 | % | | | 0.17 | % | | | 0.88 | % |
Operating expenses including reimbursement/waiver | | | n/a | | | | n/a | | | | n/a | | | | n/a | | | | 2.25 | %(e) | | | 2.20 | % |
Operating expenses excluding reimbursement/waiver | | | 2.28 | %(d) | | | 2.19 | % | | | 2.23 | % | | | 2.27 | % | | | 2.28 | % | | | 2.46 | % |
Portfolio Turnover Rate | | | 45 | %(c) | | | 85 | % | | | 58 | % | | | 33 | % | | | 36 | % | | | 66 | % |
(a) Per share amounts are based upon average shares outstanding.
(b) Total return does not reflect the effect of sales charges.
(c) Not Annualized.
(d) Annualized.
(e) Effective July 1, 2011, the expense limitation agreement expired.
| | | | |
| See Notes to Financial Statements | | 63 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Real Estate Long/Short Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Period Ended
December 31,
2011(a) | |
Net Asset Value, Beginning of Period | | $ | 33.53 | | | $ | 27.29 | | | $ | 27.05 | | | $ | 22.48 | | | $ | 24.62 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income(b) | | | 0.35 | | | | 0.36 | | | | 0.24 | | | | 0.32 | | | | 0.31 | |
Net realized and unrealized gain/(loss) on investments | | | (1.21 | ) | | | 6.19 | | | | 0.40 | | | | 4.82 | | | | (2.06 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.86 | ) | | | 6.55 | | | | 0.64 | | | | 5.14 | | | | (1.75 | ) |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.07 | ) | | | (0.31 | ) | | | (0.40 | ) | | | (0.57 | ) | | | (0.39 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.07 | ) | | | (0.31 | ) | | | (0.40 | ) | | | (0.57 | ) | | | (0.39 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.93 | ) | | | 6.24 | | | | 0.24 | | | | 4.57 | | | | (2.14 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 32.60 | | | $ | 33.53 | | | $ | 27.29 | | | $ | 27.05 | | | $ | 22.48 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | (2.53 | )%(c) | | | 24.01 | % | | | 2.37 | % | | | 22.98 | % | | | (7.09 | )%(c) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 1,783 | | | $ | 2,172 | | | $ | 736 | | | $ | 1,894 | | | $ | 92 | |
Ratios to Average Net Assets (excluding interest and dividends on short sales expense): | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 2.55 | %(d) | | | 1.83 | % | | | 1.47 | % | | | 1.91 | % | | | 2.51 | %(d) |
Operating expenses | | | 1.80 | %(d) | | | 1.82 | % | | | 1.79 | % | | | 1.73 | % | | | 1.98 | %(d) |
Ratios to Average Net Assets (including interest and dividends on short sales expense): | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 2.05 | %(d) | | | 1.15 | % | | | 0.83 | % | | | 1.24 | % | | | 2.08 | %(d) |
Operating expenses | | | 2.30 | %(d) | | | 2.50 | % | | | 2.44 | % | | | 2.40 | % | | | 2.42 | %(d) |
Portfolio Turnover Rate | | | 33 | %(c) | | | 45 | % | | | 63 | % | | | 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.
| | | | |
| June 30, 2015 | | 64 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Real Estate Long/Short Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(a) | | | Year Ended
December 31,
2010 | |
Net Asset Value, Beginning of Period | | $ | 34.55 | | | $ | 28.12 | | | $ | 27.87 | | | $ | 23.10 | | | $ | 23.42 | | | $ | 18.43 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.42 | (b) | | | 0.40 | (b) | | | 0.38 | (b) | | | 0.31 | (b) | | | 0.52 | (b) | | | 0.90 | |
Net realized and unrealized gain/(loss) on investments | | | (1.24 | ) | | | 6.45 | | | | 0.39 | | | | 5.10 | | | | (0.27 | ) | | | 5.23 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.82 | ) | | | 6.85 | | | | 0.77 | | | | 5.41 | | | | 0.25 | | | | 6.13 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.11 | ) | | | (0.42 | ) | | | (0.52 | ) | | | (0.64 | ) | | | (0.57 | ) | | | (1.14 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.11 | ) | | | (0.42 | ) | | | (0.52 | ) | | | (0.64 | ) | | | (0.57 | ) | | | (1.14 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.93 | ) | | | 6.43 | | | | 0.25 | | | | 4.77 | | | | (0.32 | ) | | | 4.99 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 33.62 | | | $ | 34.55 | | | $ | 28.12 | | | $ | 27.87 | | | $ | 23.10 | | | $ | 23.42 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | (2.39 | )%(c) | | | 24.44 | % | | | 2.73 | % | | | 23.54 | % | | | 1.10 | % | | | 33.67 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 12,838 | | | $ | 14,217 | | | $ | 14,926 | | | $ | 13,598 | | | $ | 8,692 | | | $ | 3,287 | |
Ratios to Average Net Assets (excluding interest and dividends on short sales expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 2.92 | %(d) | | | 1.95 | % | | | 1.93 | % | | | 1.85 | % | | | 2.71 | % | | | 4.58 | % |
Operating expenses | | | 1.45 | %(d) | | | 1.46 | % | | | 1.42 | % | | | 1.37 | % | | | 1.46 | % | | | 1.34 | % |
Ratios to Average Net Assets (including interest and dividends on short sales expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 2.42 | %(d) | | | 1.27 | % | | | 1.29 | % | | | 1.18 | % | | | 2.27 | % | | | 4.33 | % |
Operating expenses | | | 1.95 | %(d) | | | 2.14 | % | | | 2.07 | % | | | 2.03 | % | | | 1.90 | % | | | 1.59 | % |
Portfolio Turnover Rate | | | 33 | %(c) | | | 45 | % | | | 63 | % | | | 53 | % | | | 78 | % | | | 95 | % |
(a) Prior to May 1, 2011, the Forward Real Estate Long/Short Fund was known as the Forward Strategic Realty Fund.
(b) Per share amounts are based upon average shares outstanding.
(c) Not Annualized.
(d) Annualized.
| | | | |
| See Notes to Financial Statements | | 65 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Real Estate Long/Short Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(a) | | | Year Ended
December 31,
2010 | |
Net Asset Value, Beginning of Period | | $ | 33.59 | | | $ | 27.35 | | | $ | 27.12 | | | $ | 22.50 | | | $ | 22.83 | | | $ | 17.99 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.34 | (b) | | | 0.28 | (b) | | | 0.23 | (b) | | | 0.19 | (b) | | | 0.35 | (b) | | | 0.77 | |
Net realized and unrealized gain/(loss) on investments | | | (1.21 | ) | | | 6.25 | | | | 0.40 | | | | 4.98 | | | | (0.17 | ) | | | 5.16 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.87 | ) | | | 6.53 | | | | 0.63 | | | | 5.17 | | | | 0.18 | | | | 5.93 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.07 | ) | | | (0.29 | ) | | | (0.40 | ) | | | (0.55 | ) | | | (0.51 | ) | | | (1.09 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.07 | ) | | | (0.29 | ) | | | (0.40 | ) | | | (0.55 | ) | | | (0.51 | ) | | | (1.09 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.94 | ) | | | 6.24 | | | | 0.23 | | | | 4.62 | | | | (0.33 | ) | | | 4.84 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 32.65 | | | $ | 33.59 | | | $ | 27.35 | | | $ | 27.12 | | | $ | 22.50 | | | $ | 22.83 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(c) | | | (2.59 | )%(d) | | | 23.94 | % | | | 2.30 | % | | | 23.07 | % | | | 0.82 | % | | | 33.34 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 31,989 | | | $ | 35,410 | | | $ | 30,582 | | | $ | 35,831 | | | $ | 33,601 | | | $ | 48,211 | |
Ratios to Average Net Assets (excluding interest and dividends on short sales expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 2.52 | %(e) | | | 1.58 | % | | | 1.47 | % | | | 1.40 | % | | | 1.97 | % | | | 4.11 | % |
Operating expenses | | | 1.85 | %(e) | | | 1.87 | % | | | 1.82 | % | | | 1.72 | % | | | 1.67 | % | | | 1.60 | % |
Ratios to Average Net Assets (including interest and dividends on short sales expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 2.02 | %(e) | | | 0.90 | % | | | 0.82 | % | | | 0.74 | % | | | 1.53 | % | | | 3.86 | % |
Operating expenses | | | 2.35 | %(e) | | | 2.55 | % | | | 2.46 | % | | | 2.39 | % | | | 2.11 | % | | | 1.85 | % |
Portfolio Turnover Rate | | | 33 | %(d) | | | 45 | % | | | 63 | % | | | 53 | % | | | 78 | % | | | 95 | % |
(a) Prior to May 1, 2011, the Forward Real Estate Long/Short Fund was known as the Forward Strategic Realty 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) Annualized.
| | | | |
| June 30, 2015 | | 66 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Real Estate Long/Short Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class B | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(a) | | | Year Ended
December 31,
2010 | |
Net Asset Value, Beginning of Period | | $ | 33.42 | | | $ | 27.20 | | | $ | 26.98 | | | $ | 22.37 | | | $ | 22.70 | | | $ | 17.89 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | | 0.22 | (b) | | | 0.08 | (b) | | | 0.06 | (b) | | | (0.00 | )(b)(c) | | | 0.17 | (b) | | | 0.14 | |
Net realized and unrealized gain/(loss) on investments | | | (1.16 | ) | | | 6.24 | | | | 0.41 | | | | 4.98 | | | | (0.17 | ) | | | 5.59 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.94 | ) | | | 6.32 | | | | 0.47 | | | | 4.98 | | | | 0.00 | | | | 5.73 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.01 | ) | | | (0.10 | ) | | | (0.25 | ) | | | (0.37 | ) | | | (0.33 | ) | | | (0.92 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.01 | ) | | | (0.10 | ) | | | (0.25 | ) | | | (0.37 | ) | | | (0.33 | ) | | | (0.92 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.95 | ) | | | 6.22 | | | | 0.22 | | | | 4.61 | | | | (0.33 | ) | | | 4.81 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 32.47 | | | $ | 33.42 | | | $ | 27.20 | | | $ | 26.98 | | | $ | 22.37 | | | $ | 22.70 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(d) | | | (2.82 | )%(e) | | | 23.25 | % | | | 1.71 | % | | | 22.31 | % | | | 0.06 | % | | | 32.34 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 508 | | | $ | 1,040 | | | $ | 1,643 | | | $ | 2,593 | | | $ | 4,384 | | | $ | 7,755 | |
Ratios to Average Net Assets (excluding interest and dividends on short sales expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 1.78 | %(f) | | | 0.95 | % | | | 0.85 | % | | | 0.65 | % | | | 1.20 | % | | | 3.04 | % |
Operating expenses | | | 2.39 | %(f) | | | 2.41 | % | | | 2.38 | % | | | 2.38 | % | | | 2.42 | % | | | 2.36 | % |
Ratios to Average Net Assets (including interest and dividends on short sales expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | | 1.28 | %(f) | | | 0.27 | % | | | 0.20 | % | | | (0.02 | )% | | | 0.76 | % | | | 2.80 | % |
Operating expenses | | | 2.89 | %(f) | | | 3.09 | % | | | 3.03 | % | | | 3.05 | % | | | 2.86 | % | | | 2.60 | % |
Portfolio Turnover Rate | | | 33 | %(e) | | | 45 | % | | | 63 | % | | | 53 | % | | | 78 | % | | | 95 | % |
(a) Prior to May 1, 2011, the Forward Real Estate Long/Short Fund was known as the Forward Strategic Realty 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 | | 67 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Real Estate Long/Short Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class C | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011(a) | | | Year Ended
December 31,
2010 | |
Net Asset Value, Beginning of Period | | $ | 33.32 | | | $ | 27.14 | | | $ | 26.93 | | | $ | 22.34 | | | $ | 22.67 | | | $ | 17.87 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.25 | (b) | | | 0.11 | (b) | | | 0.08 | (b) | | | 0.02 | (b) | | | 0.19 | (b) | | | 0.47 | |
Net realized and unrealized gain/(loss) on investments | | | (1.19 | ) | | | 6.19 | | | | 0.39 | | | | 4.95 | | | | (0.18 | ) | | | 5.26 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.94 | ) | | | 6.30 | | | | 0.47 | | | | 4.97 | | | | 0.01 | | | | 5.73 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.03 | ) | | | (0.12 | ) | | | (0.26 | ) | | | (0.38 | ) | | | (0.34 | ) | | | (0.93 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.03 | ) | | | (0.12 | ) | | | (0.26 | ) | | | (0.38 | ) | | | (0.34 | ) | | | (0.93 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.97 | ) | | | 6.18 | | | | 0.21 | | | | 4.59 | | | | (0.33 | ) | | | 4.80 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 32.35 | | | $ | 33.32 | | | $ | 27.14 | | | $ | 26.93 | | | $ | 22.34 | | | $ | 22.67 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(c) | | | (2.84 | )%(d) | | | 23.22 | % | | | 1.73 | % | | | 22.30 | % | | | 0.04 | % | | | 32.35 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 16,981 | | | $ | 17,936 | | | $ | 17,095 | | | $ | 19,171 | | | $ | 19,272 | | | $ | 25,152 | |
Ratios to Average Net Assets (excluding interest and dividends on short sales expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 1.98 | %(e) | | | 1.03 | % | | | 0.92 | % | | | 0.74 | % | | | 1.27 | % | | | 3.16 | % |
Operating expenses | | | 2.40 | %(e) | | | 2.42 | % | | | 2.38 | % | | | 2.38 | % | | | 2.43 | % | | | 2.36 | % |
Ratios to Average Net Assets (including interest and dividends on short sales expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 1.48 | %(e) | | | 0.35 | % | | | 0.27 | % | | | 0.07 | % | | | 0.83 | % | | | 2.92 | % |
Operating expenses | | | 2.90 | %(e) | | | 3.10 | % | | | 3.03 | % | | | 3.04 | % | | | 2.87 | % | | | 2.60 | % |
Portfolio Turnover Rate | | | 33 | %(d) | | | 45 | % | | | 63 | % | | | 53 | % | | | 78 | % | | | 95 | % |
(a) Prior to May 1, 2011, the Forward Real Estate Long/Short Fund was known as the Forward Strategic Realty 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) Annualized.
| | | | |
| June 30, 2015 | | 68 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Real Estate Long/Short Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Advisor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013(a) | | | Year Ended
December 31,
2012 | | | Period Ended
December 31,
2011(b) | |
Net Asset Value, Beginning of Period | | $ | 34.58 | | | $ | 28.14 | | | $ | 27.88 | | | $ | 23.10 | | | $ | 25.26 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income(c) | | | 0.43 | | | | 0.41 | | | | 0.26 | | | | 0.40 | | | | 0.36 | |
Net realized and unrealized gain/(loss) on investments | | | (1.27 | ) | | | 6.43 | | | | 0.50 | | | | 5.02 | | | | (2.09 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | (0.84 | ) | | | 6.84 | | | | 0.76 | | | | 5.42 | | | | (1.73 | ) |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.10 | ) | | | (0.40 | ) | | | (0.50 | ) | | | (0.64 | ) | | | (0.43 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.10 | ) | | | (0.40 | ) | | | (0.50 | ) | | | (0.64 | ) | | | (0.43 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.94 | ) | | | 6.44 | | | | 0.26 | | | | 4.78 | | | | (2.16 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 33.64 | | | $ | 34.58 | | | $ | 28.14 | | | $ | 27.88 | | | $ | 23.10 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | (2.42 | )%(d) | | | 24.38 | % | | | 2.71 | % | | | 23.59 | % | | | (6.81 | )%(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 1,602 | | | $ | 946 | | | $ | 942 | | | $ | 2,526 | | | $ | 9 | |
Ratios to Average Net Assets (excluding interest and dividends on short sales expense): | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 2.99 | %(e) | | | 1.97 | % | | | 1.53 | % | | | 2.14 | % | | | 2.78 | %(e) |
Operating expenses | | | 1.50 | %(e) | | | 1.52 | % | | | 1.42 | % | | | 1.33 | % | | | 1.50 | %(e) |
Ratios to Average Net Assets (including interest and dividends on short sales expense): | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 2.49 | %(e) | | | 1.29 | % | | | 0.89 | % | | | 1.47 | % | | | 2.34 | %(e) |
Operating expenses | | | 2.00 | %(e) | | | 2.20 | % | | | 2.07 | % | | | 1.99 | % | | | 1.94 | %(e) |
Portfolio Turnover Rate | | | 33 | %(d) | | | 45 | % | | | 63 | % | | | 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.
| | | | |
| See Notes to Financial Statements | | 69 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Select Income Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Period Ended
December 31,
2011(a) | |
Net Asset Value, Beginning of Period | | $ | 25.40 | | | $ | 23.50 | | | $ | 24.38 | | | $ | 22.01 | | | $ | 21.75 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income(b) | | | 0.47 | | | | 0.75 | | | | 1.01 | | | | 1.18 | | | | 0.38 | |
Net realized and unrealized gain/(loss) on investments | | | (0.36 | ) | | | 3.12 | | | | 0.05 | | | | 2.95 | | | | 0.33 | |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.11 | | | | 3.87 | | | | 1.06 | | | | 4.13 | | | | 0.71 | |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.49 | ) | | | (0.75 | ) | | | (1.11 | ) | | | (1.59 | ) | | | (0.45 | ) |
From capital gains | | | — | | | | (1.22 | ) | | | (0.83 | ) | | | — | | | | — | |
Tax return of capital | | | — | | | | — | | | | — | | | | (0.17 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.49 | ) | | | (1.97 | ) | | | (1.94 | ) | | | (1.76 | ) | | | (0.45 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.38 | ) | | | 1.90 | | | | (0.88 | ) | | | 2.37 | | | | 0.26 | |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 25.02 | | | $ | 25.40 | | | $ | 23.50 | | | $ | 24.38 | | | $ | 22.01 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 0.42 | %(c) | | | 16.75 | % | | | 4.33 | % | | | 19.23 | % | | | 3.28 | %(c) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 132,129 | | | $ | 115,091 | | | $ | 98,756 | | | $ | 41,499 | | | $ | 283 | |
Ratios to Average Net Assets (excluding interest and dividends on short sales expense): | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 4.11 | %(d) | | | 3.21 | % | | | 4.20 | % | | | 5.16 | % | | | 10.11 | %(d) |
Operating expenses | | | 1.60 | %(d) | | | 1.61 | % | | | 1.60 | % | | | 1.59 | % | | | 1.67 | %(d) |
Ratios to Average Net Assets (including interest and dividends on short sales expense): | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 3.68 | %(d) | | | 2.99 | % | | | 4.04 | % | | | 4.92 | % | | | 9.77 | %(d) |
Operating expenses | | | 2.03 | %(d) | | | 1.83 | % | | | 1.75 | % | | | 1.83 | % | | | 2.01 | %(d) |
Portfolio Turnover Rate | | | 21 | %(c) | | | 32 | % | | | 50 | % | | | 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.
| | | | |
| June 30, 2015 | | 70 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Select Income Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | |
Net Asset Value, Beginning of Period | | $ | 25.43 | | | $ | 23.53 | | | $ | 24.40 | | | $ | 22.00 | | | $ | 23.24 | | | $ | 20.11 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.52 | (a) | | | 0.85 | (a) | | | 1.01 | (a) | | | 1.04 | (a) | | | 1.45 | (a) | | | 1.91 | |
Net realized and unrealized gain/(loss) on investments | | | (0.36 | ) | | | 3.11 | | | | 0.14 | | | | 3.18 | | | | (0.70 | ) | | | 3.29 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.16 | | | | 3.96 | | | | 1.15 | | | | 4.22 | | | | 0.75 | | | | 5.20 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.54 | ) | | | (0.84 | ) | | | (1.17 | ) | | | (1.65 | ) | | | (1.99 | ) | | | (2.07 | ) |
From capital gains | | | — | | | | (1.22 | ) | | | (0.85 | ) | | | — | | | | — | | | | — | |
Tax return of capital | | | — | | | | — | | | | — | | | | (0.17 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.54 | ) | | | (2.06 | ) | | | (2.02 | ) | | | (1.82 | ) | | | (1.99 | ) | | | (2.07 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.38 | ) | | | 1.90 | | | | (0.87 | ) | | | 2.40 | | | | (1.24 | ) | | | 3.13 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 25.05 | | | $ | 25.43 | | | $ | 23.53 | | | $ | 24.40 | | | $ | 22.00 | | | $ | 23.24 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 0.60 | %(b) | | | 17.16 | % | | | 4.71 | % | | | 19.66 | % | | | 3.31 | % | | | 26.74 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 582,034 | | | $ | 637,666 | | | $ | 494,495 | | | $ | 654,961 | | | $ | 362,894 | | | $ | 319,717 | |
Ratios to Average Net Assets (excluding interest and dividends on short sales expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 4.48 | %(c) | | | 3.59 | % | | | 4.18 | % | | | 4.59 | % | | | 6.64 | % | | | 8.98 | % |
Operating expenses | | | 1.25 | %(c) | | | 1.26 | % | | | 1.22 | % | | | 1.18 | % | | | 1.19 | % | | | 1.20 | % |
Ratios to Average Net Assets (including interest and dividends on short sales expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 4.05 | %(c) | | | 3.37 | % | | | 4.02 | % | | | 4.35 | % | | | 6.31 | % | | | 8.68 | % |
Operating expenses | | | 1.68 | %(c) | | | 1.47 | % | | | 1.37 | % | | | 1.42 | % | | | 1.52 | % | | | 1.50 | % |
Portfolio Turnover Rate | | | 21 | %(b) | | | 32 | % | | | 50 | % | | | 53 | % | | | 73 | % | | | 93 | % |
(a) Per share amounts are based upon average shares outstanding.
(b) Not Annualized.
(c) Annualized.
| | | | |
| See Notes to Financial Statements | | 71 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Select Income Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | |
Net Asset Value, Beginning of Period | | $ | 25.47 | | | $ | 23.56 | | | $ | 24.43 | | | $ | 22.03 | | | $ | 23.26 | | | $ | 20.13 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.46 | (a) | | | 0.75 | (a) | | | 0.92 | (a) | | | 0.94 | (a) | | | 1.38 | (a) | | | 1.68 | |
Net realized and unrealized gain/(loss) on investments | | | (0.35 | ) | | | 3.12 | | | | 0.12 | | | | 3.19 | | | | (0.67 | ) | | | 3.47 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.11 | | | | 3.87 | | | | 1.04 | | | | 4.13 | | | | 0.71 | | | | 5.15 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.49 | ) | | | (0.74 | ) | | | (1.08 | ) | | | (1.57 | ) | | | (1.94 | ) | | | (2.02 | ) |
From capital gains | | | — | | | | (1.22 | ) | | | (0.83 | ) | | | — | | | | — | | | | — | |
Tax return of capital | | | — | | | | — | | | | — | | | | (0.16 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.49 | ) | | | (1.96 | ) | | | (1.91 | ) | | | (1.73 | ) | | | (1.94 | ) | | | (2.02 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.38 | ) | | | 1.91 | | | | (0.87 | ) | | | 2.40 | | | | (1.23 | ) | | | 3.13 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 25.09 | | | $ | 25.47 | | | $ | 23.56 | | | $ | 24.43 | | | $ | 22.03 | | | $ | 23.26 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(b) | | | 0.39 | %(c) | | | 16.72 | % | | | 4.26 | % | | | 19.22 | % | | | 3.09 | % | | | 26.41 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 588,666 | | | $ | 676,775 | | | $ | 540,264 | | | $ | 754,615 | | | $ | 591,167 | | | $ | 642,665 | |
Ratios to Average Net Assets (excluding interest and dividends on short sales expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 4.05 | %(d) | | | 3.17 | % | | | 3.79 | % | | | 4.19 | % | | | 6.33 | % | | | 8.38 | % |
Operating expenses | | | 1.65 | %(d) | | | 1.66 | % | | | 1.62 | % | | | 1.54 | % | | | 1.44 | % | | | 1.44 | % |
Ratios to Average Net Assets (including interest and dividends on short sales expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 3.62 | %(d) | | | 2.95 | % | | | 3.63 | % | | | 3.95 | % | | | 6.00 | % | | | 8.07 | % |
Operating expenses | | | 2.08 | %(d) | | | 1.87 | % | | | 1.77 | % | | | 1.77 | % | | | 1.77 | % | | | 1.75 | % |
Portfolio Turnover Rate | | | 21 | %(c) | | | 32 | % | | | 50 | % | | | 53 | % | | | 73 | % | | | 93 | % |
(a) Per share amounts are based upon average shares outstanding.
(b) Total return does not reflect the effect of sales charges.
(c) Not Annualized.
(d) Annualized.
| | | | |
| June 30, 2015 | | 72 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Select Income Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class B | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | |
Net Asset Value, Beginning of Period | | $ | 25.19 | | | $ | 23.32 | | | $ | 24.19 | | | $ | 21.83 | | | $ | 23.06 | | | $ | 19.96 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.38 | (a) | | | 0.59 | (a) | | | 0.78 | (a) | | | 0.75 | (a) | | | 1.16 | (a) | | | 1.45 | |
Net realized and unrealized gain/(loss) on investments | | | (0.35 | ) | | | 3.10 | | | | 0.12 | | | | 3.18 | | | | (0.63 | ) | | | 3.50 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.03 | | | | 3.69 | | | | 0.90 | | | | 3.93 | | | | 0.53 | | | | 4.95 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.41 | ) | | | (0.60 | ) | | | (0.97 | ) | | | (1.42 | ) | | | (1.76 | ) | | | (1.85 | ) |
From capital gains | | | — | | | | (1.22 | ) | | | (0.80 | ) | | | — | | | | — | | | | — | |
Tax return of capital | | | — | | | | — | | | | — | | | | (0.15 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.41 | ) | | | (1.82 | ) | | | (1.77 | ) | | | (1.57 | ) | | | (1.76 | ) | | | (1.85 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.38 | ) | | | 1.87 | | | | (0.87 | ) | | | 2.36 | | | | (1.23 | ) | | | 3.10 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 24.81 | | | $ | 25.19 | | | $ | 23.32 | | | $ | 24.19 | | | $ | 21.83 | | | $ | 23.06 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(b) | | | 0.10 | %(c) | | | 16.07 | % | | | 3.72 | % | | | 18.42 | % | | | 2.31 | % | | | 25.52 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 5,117 | | | $ | 7,251 | | | $ | 8,688 | | | $ | 11,857 | | | $ | 16,165 | | | $ | 25,445 | |
Ratios to Average Net Assets (excluding interest and dividends on short sales expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 3.43 | %(d) | | | 2.59 | % | | | 3.28 | % | | | 3.44 | % | | | 5.42 | % | | | 7.23 | % |
Operating expenses | | | 2.20 | %(d) | | | 2.20 | % | | | 2.19 | % | | | 2.18 | % | | | 2.19 | % | | | 2.19 | % |
Ratios to Average Net Assets (including interest and dividends on short sales expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 3.00 | %(d) | | | 2.37 | % | | | 3.12 | % | | | 3.20 | % | | | 5.09 | % | | | 6.93 | % |
Operating expenses | | | 2.63 | %(d) | | | 2.42 | % | | | 2.34 | % | | | 2.42 | % | | | 2.52 | % | | | 2.50 | % |
Portfolio Turnover Rate | | | 21 | %(c) | | | 32 | % | | | 50 | % | | | 53 | % | | | 73 | % | | | 93 | % |
(a) Per share amounts are based upon average shares outstanding.
(b) Total return does not reflect the effect of sales charges.
(c) Not Annualized.
(d) Annualized.
| | | | |
| See Notes to Financial Statements | | 73 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Select Income Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class C | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013 | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Year Ended
December 31,
2010 | |
Net Asset Value, Beginning of Period | | $ | 24.93 | | | $ | 23.10 | | | $ | 23.99 | | | $ | 21.66 | | | $ | 22.91 | | | $ | 19.86 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.39 | (a) | | | 0.59 | (a) | | | 0.78 | (a) | | | 0.77 | (a) | | | 1.20 | (a) | | | 1.61 | |
Net realized and unrealized gain/(loss) on investments | | | (0.36 | ) | | | 3.06 | | | | 0.11 | | | | 3.14 | | | | (0.68 | ) | | | 3.30 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.03 | | | | 3.65 | | | | 0.89 | | | | 3.91 | | | | 0.52 | | | | 4.91 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.42 | ) | | | (0.60 | ) | | | (0.98 | ) | | | (1.43 | ) | | | (1.77 | ) | | | (1.86 | ) |
From capital gains | | | — | | | | (1.22 | ) | | | (0.80 | ) | | | — | | | | — | | | | — | |
Tax return of capital | | | — | | | | — | | | | — | | | | (0.15 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.42 | ) | | | (1.82 | ) | | | (1.78 | ) | | | (1.58 | ) | | | (1.77 | ) | | | (1.86 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.39 | ) | | | 1.83 | | | | (0.89 | ) | | | 2.33 | | | | (1.25 | ) | | | 3.05 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 24.54 | | | $ | 24.93 | | | $ | 23.10 | | | $ | 23.99 | | | $ | 21.66 | | | $ | 22.91 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(b) | | | 0.09 | %(c) | | | 16.07 | % | | | 3.68 | % | | | 18.47 | % | | | 2.29 | % | | | 25.46 | % |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 256,429 | | | $ | 271,510 | | | $ | 264,263 | | | $ | 308,131 | | | $ | 262,310 | | | $ | 275,529 | |
Ratios to Average Net Assets (excluding interest and dividends on short sales expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 3.57 | %(d) | | | 2.61 | % | | | 3.31 | % | | | 3.53 | % | | | 5.63 | % | | | 7.60 | % |
Operating expenses | | | 2.20 | %(d) | | | 2.20 | % | | | 2.19 | % | | | 2.18 | % | | | 2.19 | % | | | 2.19 | % |
Ratios to Average Net Assets (including interest and dividends on short sales expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 3.14 | %(d) | | | 2.39 | % | | | 3.16 | % | | | 3.29 | % | | | 5.30 | % | | | 7.29 | % |
Operating expenses | | | 2.63 | %(d) | | | 2.42 | % | | | 2.34 | % | | | 2.42 | % | | | 2.52 | % | | | 2.50 | % |
Portfolio Turnover Rate | | | 21 | %(c) | | | 32 | % | | | 50 | % | | | 53 | % | | | 73 | % | | | 93 | % |
(a) Per share amounts are based upon average shares outstanding.
(b) Total return does not reflect the effect of sales charges.
(c) Not Annualized.
(d) Annualized.
| | | | |
| June 30, 2015 | | 74 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Select Income Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Advisor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Year Ended
December 31,
2013(a) | | | Year Ended
December 31,
2012 | | | Year Ended
December 31,
2011 | | | Period Ended
December 31,
2010(b) | |
Net Asset Value, Beginning of Period | | $ | 25.43 | | | $ | 23.52 | | | $ | 24.39 | | | $ | 22.00 | | | $ | 23.24 | | | $ | 20.56 | |
Income/(Loss) from Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.55 | (c) | | | 0.89 | (c) | | | 1.05 | (c) | | | 1.12 | (c) | | | 1.48 | (c) | | | 2.06 | |
Net realized and unrealized gain/(loss) on investments | | | (0.41 | ) | | | 3.07 | | | | 0.09 | | | | 3.09 | | | | (0.73 | ) | | | 2.69 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.14 | | | | 3.96 | | | | 1.14 | | | | 4.21 | | | | 0.75 | | | | 4.75 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From investment income | | | (0.53 | ) | | | (0.83 | ) | | | (1.16 | ) | | | (1.65 | ) | | | (1.99 | ) | | | (2.07 | ) |
From capital gains | | | — | | | | (1.22 | ) | | | (0.85 | ) | | | — | | | | — | | | | — | |
Tax return of capital | | | — | | | | — | | | | — | | | | (0.17 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.53 | ) | | | (2.05 | ) | | | (2.01 | ) | | | (1.82 | ) | | | (1.99 | ) | | | (2.07 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | (0.39 | ) | | | 1.91 | | | | (0.87 | ) | | | 2.39 | | | | (1.24 | ) | | | 2.68 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 25.04 | | | $ | 25.43 | | | $ | 23.52 | | | $ | 24.39 | | | $ | 22.00 | | | $ | 23.24 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | 0.58 | %(d) | | | 17.11 | % | | | 4.68 | % | | | 19.62 | % | | | 3.31 | % | | | 23.96 | %(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 54,382 | | | $ | 32,459 | | | $ | 15,501 | | | $ | 11,852 | | | $ | 3,160 | | | $ | 2,212 | |
Ratios to Average Net Assets (excluding interest and dividends on short sales expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 4.73 | %(e) | | | 3.74 | % | | | 4.36 | % | | | 4.97 | % | | | 6.81 | % | | | 11.92 | %(e) |
Operating expenses | | | 1.31 | %(e) | | | 1.31 | % | | | 1.26 | % | | | 1.19 | % | | | 1.20 | % | | | 1.23 | %(e) |
Ratios to Average Net Assets (including interest and dividends on short sales expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 4.30 | %(e) | | | 3.52 | % | | | 4.21 | % | | | 4.73 | % | | | 6.48 | % | | | 11.62 | %(e) |
Operating expenses | | | 1.74 | %(e) | | | 1.53 | % | | | 1.41 | % | | | 1.43 | % | | | 1.53 | % | | | 1.53 | %(e) |
Portfolio Turnover Rate | | | 21 | %(d) | | | 32 | % | | | 50 | % | | | 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.
| | | | |
| See Notes to Financial Statements | | 75 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Select Opportunity Fund
| | | | | | | | |
| | | Investor Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Period Ended
December 31,
2014(a) | |
Net Asset Value, Beginning of Period | | $ | 24.84 | | | $ | 28.86 | |
Income/(Loss) from Operations: | | | | | | | | |
Net investment income(b) | | | 0.31 | | | | 0.46 | |
Net realized and unrealized gain/(loss) on investments | | | 0.29 | | | | (1.52 | )(c) |
| | | | | | | | |
Total from Investment Operations | | | 0.60 | | | | (1.06 | ) |
| | | | | | | | |
Less Distributions: | | | | | | | | |
From investment income | | | (0.30 | ) | | | (0.54 | ) |
From capital gains | | | — | | | | (2.42 | ) |
| | | | | | | | |
Total Distributions | | | (0.30 | ) | | | (2.96 | ) |
| | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.30 | | | | (4.02 | ) |
| | | | | | | | |
Net Asset Value, End of Period | | $ | 25.14 | | | $ | 24.84 | |
| | | | | | | | |
Total Return | | | 2.37 | %(d) | | | (3.65 | )%(d) |
Ratios/Supplemental Data: | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 960 | | | $ | 1,013 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | |
Net investment income | | | 2.55 | %(e) | | | 2.06 | %(e) |
Operating expenses including reimbursement/waiver | | | 1.58 | %(e) | | | 1.58 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 1.99 | %(e) | | | 2.02 | %(e) |
Ratios to Average Net Assets (including interest expense): | | | | | | | | |
Net investment income including reimbursement/waiver | | | 2.49 | %(e) | | | 2.01 | %(e) |
Operating expenses including reimbursement/waiver | | | 1.64 | %(e) | | | 1.64 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 2.05 | %(e) | | | 2.08 | %(e) |
Portfolio Turnover Rate | | | 58 | %(d) | | | 181 | %(f) |
(a) The fund began offering Investor Class shares on June 1, 2014.
(b) Per share amounts are based upon average shares outstanding.
(c) 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.
(d) Not Annualized.
(e) Annualized.
(f) Portfolio turnover rate is calculated at the Fund level and represents the period ended December 31, 2014.
| | | | |
| June 30, 2015 | | 76 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Select Opportunity Fund
| | | | | | | | | | | | |
| | | Institutional Class | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Period Ended
December 31,
2013(a) | |
Net Asset Value, Beginning of Period | | $ | 24.83 | | | $ | 26.06 | | | $ | 25.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | |
Net investment income(b) | | | 0.36 | | | | 0.53 | | | | 0.13 | |
Net realized and unrealized gain on investments | | | 0.28 | | | | 1.40 | | | | 1.16 | |
| | | | | | | | | | | | |
Total from Investment Operations | | | 0.64 | | | | 1.93 | | | | 1.29 | |
| | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | |
From investment income | | | (0.35 | ) | | | (0.74 | ) | | | (0.11 | ) |
From capital gains | | | — | | | | (2.42 | ) | | | (0.12 | ) |
| | | | | | | | | | | | |
Total Distributions | | | (0.35 | ) | | | (3.16 | ) | | | (0.23 | ) |
| | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.29 | | | | (1.23 | ) | | | 1.06 | |
| | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 25.12 | | | $ | 24.83 | | | $ | 26.06 | |
| | | | | | | | | | | | |
Total Return | | | 2.52 | %(c) | | | 7.43 | % | | | 5.19 | %(c) |
Ratios/Supplemental Data: | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 5,642 | | | $ | 6,046 | | | $ | 9,749 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | | | | | |
Net investment income | | | 2.89 | %(d) | | | 1.96 | % | | | 1.26 | %(d) |
Operating expenses including reimbursement/waiver | | | 1.23 | %(d) | | | 1.23 | % | | | 1.23 | %(d) |
Operating expenses excluding reimbursement/waiver | | | 1.64 | %(d) | | | 1.59 | % | | | 2.29 | %(d) |
Ratios to Average Net Assets (including interest expense): | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 2.83 | %(d) | | | 1.90 | % | | | n/a | |
Operating expenses including reimbursement/waiver | | | 1.29 | %(d) | | | 1.29 | % | | | n/a | |
Operating expenses excluding reimbursement/waiver | | | 1.70 | %(d) | | | 1.64 | % | | | n/a | |
Portfolio Turnover Rate | | | 58 | %(c) | | | 181 | % | | | 46 | %(c) |
(a) The Forward Select Opportunity Fund commenced operations on August 1, 2013. Prior to December 23, 2013, the Forward Select Opportunity Fund was known as the Forward Select Income Opportunity Fund.
(b) Per share amounts are based upon average shares outstanding.
(c) Not Annualized.
(d) Annualized.
| | | | |
| See Notes to Financial Statements | | 77 | | June 30, 2015 |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Select Opportunity Fund
| | | | | | | | | | | | |
| | | Class A | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Year Ended
December 31,
2014 | | | Period Ended
December 31,
2013(a) | |
Net Asset Value, Beginning of Period | | $ | 24.83 | | | $ | 26.05 | | | $ | 25.00 | |
Income/(Loss) from Operations: | | | | | | | | | | | | |
Net investment income(b) | | | 0.30 | | | | 0.41 | | | | 0.13 | |
Net realized and unrealized gain on investments | | | 0.28 | | | | 1.38 | | | | 1.11 | |
| | | | | | | | | | | | |
Total from Investment Operations | | | 0.58 | | | | 1.79 | | | | 1.24 | |
| | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | |
From investment income | | | (0.28 | ) | | | (0.59 | ) | | | (0.08 | ) |
From capital gains | | | — | | | | (2.42 | ) | | | (0.11 | ) |
| | | | | | | | | | | | |
Total Distributions | | | (0.28 | ) | | | (3.01 | ) | | | (0.19 | ) |
| | | | | | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.30 | | | | (1.22 | ) | | | 1.05 | |
| | | | | | | | | | | | |
Net Asset Value, End of Period | | $ | 25.13 | | | $ | 24.83 | | | $ | 26.05 | |
| | | | | | | | | | | | |
Total Return(c) | | | 2.26 | %(d) | | | 6.89 | % | | | 4.98 | %(d) |
Ratios/Supplemental Data: | | | | | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 15,090 | | | $ | 13,510 | | | $ | 14,521 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | | | | | |
Net investment income | | | 2.43 | %(e) | | | 1.54 | % | | | 1.22 | %(e) |
Operating expenses including reimbursement/waiver | | | 1.73 | %(e) | | | 1.73 | % | | | 1.73 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 2.14 | %(e) | | | 2.09 | % | | | 2.59 | %(e) |
Ratios to Average Net Assets (including interest expense): | | | | | | | | | | | | |
Net investment income including reimbursement/waiver | | | 2.37 | %(e) | | | 1.48 | % | | | n/a | |
Operating expenses including reimbursement/waiver | | | 1.79 | %(e) | | | 1.79 | % | | | n/a | |
Operating expenses excluding reimbursement/waiver | | | 2.20 | %(e) | | | 2.15 | % | | | n/a | |
Portfolio Turnover Rate | | | 58 | %(d) | | | 181 | % | | | 46 | %(d) |
(a) The Forward Select Opportunity Fund commenced operations on August 1, 2013. Prior to December 23, 2013, the Forward Select Opportunity Fund was known as the Forward Select Income Opportunity 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) Annualized.
| | | | |
| June 30, 2015 | | 78 | | See Notes to Financial Statements |
Financial Highlights
For a share outstanding throughout the periods presented.
Forward Select Opportunity Fund
| | | | | | | | |
| | | Class C | |
| | | Six Months Ended
June 30, 2015
(Unaudited) | | | Period Ended
December 31,
2014(a) | |
Net Asset Value, Beginning of Period | | $ | 24.80 | | | $ | 27.11 | |
Income/(Loss) from Operations: | | | | | | | | |
Net investment income(b) | | | 0.28 | | | | 0.32 | |
Net realized and unrealized gain on investments | | | 0.25 | | | | 0.30 | |
| | | | | | | | |
Total from Investment Operations | | | 0.53 | | | | 0.62 | |
| | | | | | | | |
Less Distributions: | | | | | | | | |
From investment income | | | (0.24 | ) | | | (0.51 | ) |
From capital gains | | | — | | | | (2.42 | ) |
| | | | | | | | |
Total Distributions | | | (0.24 | ) | | | (2.93 | ) |
| | | | | | | | |
Net Increase/(Decrease) in Net Asset Value | | | 0.29 | | | | (2.31 | ) |
| | | | | | | | |
Net Asset Value, End of Period | | $ | 25.09 | | | $ | 24.80 | |
| | | | | | | | |
Total Return(c) | | | 2.07 | %(d) | | | 2.30 | %(d) |
Ratios/Supplemental Data: | | | | | | | | |
Net assets, End of Period (in 000s) | | $ | 4,861 | | | $ | 1,266 | |
Ratios to Average Net Assets (excluding interest expense): | | | | | | | | |
Net investment income | | | 2.31 | %(e) | | | 1.28 | %(e) |
Operating expenses including reimbursement/waiver | | | 2.18 | %(e) | | | 2.18 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 2.55 | %(e) | | | 2.57 | %(e) |
Ratios to Average Net Assets (including interest expense): | | | | | | | | |
Net investment income including reimbursement/waiver | | | 2.25 | %(e) | | | 1.23 | %(e) |
Operating expenses including reimbursement/waiver | | | 2.24 | %(e) | | | 2.24 | %(e) |
Operating expenses excluding reimbursement/waiver | | | 2.61 | %(e) | | | 2.63 | %(e) |
Portfolio Turnover Rate | | | 58 | %(d) | | | 181 | %(f) |
(a) The Fund began offering Class C shares on February 18, 2014.
(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 period ended December 31, 2014.
| | | | |
| See Notes to Financial Statements | | 79 | | June 30, 2015 |
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, 2015, the Trust has 29 registered funds. This semi-annual report describes 6 funds offered by the Trust (each a “Fund” and collectively, the “Funds”). The accompanying financial statements and financial highlights include 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”), the Forward Select Income Fund (“Select Income Fund”), and the Forward Select Opportunity Fund (“Select Opportunity Fund”).
The Global Infrastructure Fund seeks total return through 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 total return from both capital appreciation and current income through investing primarily in 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 income-producing securities of companies in the real estate industry, such as REITs, master limited partnerships and other real estate firms. The Select Opportunity Fund seeks total return through current income and long-term capital appreciation through investing in equity, fixed income and hybrid securities.
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 ClassB shares for Class B shares of another fund of the Trust that offers
Class B shares, if any; 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, the Select Income Fund, and the Select Opportunity Fund may 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. The International Real Estate Fund, the Real Estate Fund and Select Opportunity Fund are each classified as a non-diversified fund under the 1940 Act.
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. Each Fund is considered an investment company for financial reporting purposes under GAAP. The financial statements have been prepared as of the close of the New York Stock Exchange (“NYSE”) on June 30, 2015.
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 prices 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 either at 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.
Notes to Financial Statements (Unaudited)
Debt securities that have an original maturity of more than 365 days or that are credit impaired are valued on the basis of the average of the latest bid and ask prices. Debt securities that have an original maturity of less than 365 days and that are not credit impaired are valued as follows: (a) maturity of 61 to 365 days, on the basis of the average of the latest bid and ask prices; and (b) maturity of 60 days or less, at amortized cost.
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 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. To the extent that such securities do not trade on a valuation day and the last bid and ask prices are not available, the securities may be valued using matrix pricing or similar valuation methods from the Funds’ independent pricing vendors. Bonds that do not trade regularly tend to be less liquid, and 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.
Futures, options on futures, and swap 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, options on futures, and swap 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. If there has been no sale that day, such securities are valued at the average of the last reported bid and ask prices on the valuation day for long positions or ask prices for short positions. 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 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 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 normal trading day of the NYSE, normally 4:00 p.m. Eastern Time. The Funds’ 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 contracts have a market value determined by the prevailing daily foreign currency exchange 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 forward rates supplied by a pricing vendor. Foreign currency exchange rates and 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
Notes to Financial Statements (Unaudited)
Trustees. The valuation methodologies include: analysis of recent public transactions in securities or assets of the same class or that are highly similar; analysis of recent private transactions in securities or assets of the same class or that are highly similar; analysis of information that provides a reasonable basis for valuation, such as appraisals, analysts’ reports, and valuation models; and cost, if other valuation methods are not available.
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.
Debt Securities: Debt securities are affected primarily by the financial condition of the companies or other entities that have issued them and by changes in interest rates. There is a risk that an issuer of a Fund’s debt investments may not be able to meet its financial obligations (e.g., an issuer may not be able to make principal and/or interest payments when they are due or otherwise default on other financial terms) and/or go bankrupt. Lower rated debt securities, such as high-yield/high-risk bonds, are especially subject to credit risk during periods of economic uncertainty or during economic downturns and are more likely to default on their interest and/or principal payments than higher rated debt securities. Debt securities with longer durations tend to be more sensitive to changes in interest rates, making them more volatile than debt securities with shorter durations. The value of debt securities may fall when interest rates rise. Given the current historically low interest rate environment, the risks associated with rising interest rates are heightened and future increases in interest rates may result in periods of dramatic volatility and may negatively impact the value of debt securities. The liquidity of the market for debt securities may decrease during periods of increased volatility. Additionally, new regulations applicable to and changing
business practices of broker-dealers that make markets in debt securities may result in those broker-dealers restricting their market making activities for certain debt securities, which may reduce the liquidity and increase the volatility of such debt securities.
Exchange-Traded Funds (“ETFs”): Certain Funds may invest in ETFs, which are funds whose shares are traded on a national securities 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. These 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”): 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, a MLP is operated under the supervision of one or more managing general partners. Limited partners (such as a Fund investing in a 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 units of a MLP may have limited control and limited voting rights on matters affecting the partnership. There may be fewer corporate protections afforded investors in a MLP than investors in a corporation, and conflicts of interest may exist among unit holders and the general partner of a MLP. MLPs that concentrate in a
Notes to Financial Statements (Unaudited)
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 a MLP’s taxable income. A 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 a 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: Certain Funds invest a substantial 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.
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 purchases and sales of investments in Note 7 and the Fund’s Portfolio Turnover Calculation in the Financial Highlights. As of June 30, 2015, the Real Estate Long/Short Fund and the Select Income Fund held securities sold short with a market value of $12,009,564 and $142,600,000, respectively. No other Funds held securities sold short as of June 30, 2015.
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 in markets 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 tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy as of June 30, 2015:
| | | | | | | | | | | | | | | | |
| Investments in Securities | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Global Infrastructure Fund | |
Common Stocks(a) | | $ | 56,914,066 | | | $ | — | | | | — | | | $ | 56,914,066 | |
Limited Partnerships(a) | | | 1,405,536 | | | | — | | | | — | | | | 1,405,536 | |
Loan Participation Notes(a) | | | — | | | | 565,879 | | | | — | | | | 565,879 | |
Preferred Stocks(a) | | | 1,004,693 | | | | — | | | | — | | | | 1,004,693 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 59,324,295 | | | $ | 565,879 | | | | — | | | $ | 59,890,174 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| International Real Estate Fund | | | | | | | | | | | | | | | | |
Common Stocks(a) | | $ | 72,536,873 | | | | — | | | | — | | | $ | 72,536,873 | |
Rights(a) | | | 484,244 | | | | — | | | | — | | | | 484,244 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 73,021,117 | | | | — | | | | — | | | $ | 73,021,117 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Real Estate Fund | | | | | | | | | | | | | | | | |
Common Stocks(a) | | $ | 54,130,781 | | | | — | | | | — | | | $ | 54,130,781 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 54,130,781 | | | | — | | | | — | | | $ | 54,130,781 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Real Estate Long/Short Fund | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | |
REITs-Healthcare | | $ | — | | | $ | 875,000 | | | | — | | | $ | 875,000 | |
REITs-Hotels | | | — | | | | 675,900 | | | | — | | | | 675,900 | |
Other(a) | | | 55,923,108 | | | | — | | | | — | | | | 55,923,108 | |
Convertible Preferred Stocks | | | | | | | | | | | | | | | | |
REITs-Hotels | | | 1,356,850 | | | | 1,000,000 | | | | — | | | | 2,356,850 | |
Preferred Stocks(a) | | | 6,597,911 | | | | — | | | | — | | | | 6,597,911 | |
Corporate Bonds(a) | | | — | | | | 899,250 | | | | — | | | | 899,250 | |
Convertible Corporate Bonds(a) | | | — | | | | 809,062 | | | | — | | | | 809,062 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 63,877,869 | | | $ | 4,259,212 | | | | — | | | $ | 68,137,081 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Select Income Fund | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | |
REITs-Healthcare | | $ | — | | | $ | 27,562,500 | | | | — | | | $ | 27,562,500 | |
REITs-Residential | | | — | | | | 4,625,000 | | | | — | | | | 4,625,000 | |
Other(a) | | | 609,493,577 | | | | — | | | | — | | | | 609,493,577 | |
Convertible Preferred Stocks | | | | | | | | | | | | | | | | |
REITs-Hotels | | | — | | | | 64,000,000 | | | | — | | | | 64,000,000 | |
Other(a) | | | 95,583,128 | | | | — | | | | — | | | | 95,583,128 | |
Preferred Stocks(a) | | | 790,151,492 | | | | — | | | | — | | | | 790,151,492 | |
Contingent Convertible Securities(a) | | | — | | | | 16,684,650 | | | | — | | | | 16,684,650 | |
Corporate Bonds(a) | | | — | | | | 34,765,647 | | | | — | | | | 34,765,647 | |
Convertible Corporate Bonds(a) | | | — | | | | 35,095,217 | | | | — | | | | 35,095,217 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 1,495,228,197 | | | $ | 182,733,014 | | | | — | | | $ | 1,677,961,211 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Notes to Financial Statements (Unaudited)
| | | | | | | | | | | | | | | | |
| Investments in Securities | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Select Opportunity Fund | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | |
REITs-Hotels | | $ | — | | | $ | 2,027,700 | | | | — | | | $ | 2,027,700 | |
Other(a) | | | 13,644,273 | | | | — | | | | — | | | | 13,644,273 | |
Exchange-Traded Funds | | | 1,249,875 | | | | — | | | | — | | | | 1,249,875 | |
Preferred Stocks(a) | | | 4,881,973 | | | | — | | | | — | | | | 4,881,973 | |
Contingent Convertible Securities(a) | | | — | | | | 1,982,500 | | | | — | | | | 1,982,500 | |
Corporate Bonds(a) | | | — | | | | 1,833,500 | | | | — | | | | 1,833,500 | |
Convertible Corporate Bonds(a) | | | — | | | | 1,078,750 | | | | — | | | | 1,078,750 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 19,776,121 | | | $ | 6,922,450 | | | | — | | | $ | 26,698,571 | |
| | | | | | | | | | | | | | | | |
(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 | |
| Real Estate Long/Short Fund | | | | | | | | | | | | | | | | |
| Liabilities | | | | | | | | | | | | | | | | |
Securities Sold Short | | | | | | | | | | | | | | | | |
Common Stocks | | $ | (7,663,764 | ) | | | — | | | | — | | | $ | (7,663,764 | ) |
Exchange-Traded Funds | | | (4,345,800 | ) | | | — | | | | — | | | | (4,345,800 | ) |
| | | | | | | | | | | | | | | | |
Total | | $ | (12,009,564 | ) | | | — | | | | — | | | $ | (12,009,564 | ) |
| | | | | | | | | | | | | | | | |
| Select Income Fund | | | | | | | | | | | | | | | | |
| Liabilities | | | | | | | | | | | | | | | | |
Securities Sold Short | | | | | | | | | | | | | | | | |
Exchange-Traded Funds | | $ | (142,600,000 | ) | | | — | | | | — | | | $ | (142,600,000 | ) |
| | | | | | | | | | | | | | | | |
Total | | $ | (142,600,000 | ) | | | — | | | | — | | | $ | (142,600,000 | ) |
| | | | | | | | | | | | | | | | |
(a) Other financial instruments are derivative instruments reflected in the schedules to the Portfolio of Investments, such as short sales.
The Funds recognize transfers between levels as of the beginning of the annual period in which the transfer occurred. As of June 30, 2015 the only transfers of securities from Level 2 to Level 1 was for the International Real Estate Fund due to the utilization of a fair valuation model provided by the Funds’ independent pricing vendor at December 31, 2014. The Funds’ procedures set forth certain triggers that 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. No other Funds had transfers from Level 1 and Level 2 securities.
As of June 30, 2015, the 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, forward currency 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.
Notes to Financial Statements (Unaudited)
Market Risk Factors: In pursuit of their investment objectives, certain Funds may use derivatives that increase or decrease a Fund’s 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 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
Notes to Financial Statements (Unaudited)
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. The Funds held no futures contracts as of June 30, 2015.
Option Writing/Purchasing: Certain Funds may write or purchase option contracts to adjust the 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. The Funds held no purchased or written options as of June 30, 2015.
Written option activity for the six months ended June 30, 2015 was as follows:
| | | | | | | | |
| | | Written Call Options | |
| Real Estate Long/Short Fund | | Number of
Contracts | | | Contract
Premium | |
Outstanding, at beginning of year
December 31, 2014 | | | (284 | ) | | $ | (56,164 | ) |
| | | | | | | | |
Options written | | | (100 | ) | | | (11,896 | ) |
Options exercised or closed | | | 384 | | | | 68,060 | |
Options expired | | | — | | | | — | |
| | | | | | | | |
Outstanding, June 30, 2015 | | | — | | | $ | — | |
| | | | | | | | |
The values in the following tables 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 Derivative Instruments as of June 30, 2015(a):
| | | | | | | | | | | | |
Derivatives not Accounted for as Hedging Instruments | | Asset Derivatives Balance Sheet Location | | Fair
Value | | | Liabilities Derivatives Balance Sheet Location | | Fair Value | |
| International Real Estate Fund | | | | | | | | | | | | |
Equity Contracts (Rights) | | Investments, at value | | $ | 484,244 | | | | | | — | |
| | | | | | | | | | | | |
Total | | | | $ | 484,244 | | | | | | — | |
| | | | | | | | | | | | |
(a) For open derivative instruments as of June 30, 2015, see the Portfolio of Investments. The Portfolio of Investments is representative of the activity for the six months ended June 30, 2015.
The gains/(losses) in the following table are included in “Net realized gain/(loss)” or “Net change in unrealized gain/(loss)” on the Statement of Operations.
The Effect of Derivative Instruments on the Statement of Operations for the six months ended June 30, 2015:
| | | | | | | | | | |
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 | |
| Global Infrastructure Fund | | | | | |
Equity Contracts (Futures Contracts) | | Net realized gain on futures contracts/Net change in unrealized depreciation on futures contracts | | $ | 41,397 | | | $ | (195,424 | ) |
| International Real Estate Fund | | | | | |
Equity Contracts (Rights) | | Net realized gain on investments/Net change in unrealized appreciation/(depreciation) on investments | | | 147,612 | | | | (79,247 | ) |
| | | | | | | | | | |
Total | | | | $ | 189,009 | | | $ | (274,671 | ) |
| | | | | | | | | | |
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 | |
| Real Estate Long/Short Fund | | | | | | | | | | |
Equity Contracts (Options Written) | | Net realized gain on written option contracts/Net change in unrealized appreciation on written option contracts | | $ | 9,792 | | | $ | 91,736 | |
Equity Contracts (Rights) | | Net realized gain/(loss) on investments/Net change in unrealized appreciation/(depreciation) on investments | | | — | | | | (2,947 | ) |
| | | | | | | | | | |
Total | | | | $ | 9,792 | | | $ | 88,789 | |
| | | | | | | | | | |
Certain derivative contracts are executed under either standardized netting agreements or, for exchange-traded derivatives, the relevant contracts for a particular exchange that 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, 2015.
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. The 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, 2015, the Funds held no warrants.
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 Real Estate Long/Short Fund, the Select Income Fund and the Select Opportunity Fund may 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 their 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.
Notes to Financial Statements (Unaudited)
The Real Estate Long/Short Fund, the Select Income Fund and the Select Opportunity 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 London Interbank Offered Rate (“LIBOR”) for borrowing under these agreements.
The Real Estate Long/Short Fund and the Select Income Fund also maintain separate lines of credit with Société Générale. For borrowings under these agreements, the Funds are charged interest of 0.95% above the one-month LIBOR. Additionally, if the borrowed amount by a Fund is below 80% of the Fund’s facility limit, the Fund is charged a commitment fee of 0.35% per annum on the amount between the facility limit and borrowed amount.
The Real Estate Long/Short Fund, the Select Income Fund, and the Select Opportunity Fund have each pledged a portion of their investment securities as the collateral for their lines of credit. As of June 30, 2015, the value of the investment securities pledged as collateral and the borrowed amounts on the lines of credit were as follows:
| | | | | | | | |
| Fund | | Collateral
Pledged | | | Borrowed
Amounts | |
Real Estate Long/Short Fund | | $ | 10,978,325 | | | $ | 4,293,236 | |
Select Income Fund | | | 573,066,013 | | | | 180,267,532 | |
Select Opportunity Fund | | | 12,307,047 | | | | 3,007,940 | |
The average interest rate charged and the average outstanding loan payable for the six months ended June 30, 2015 were as follows:
| | | | | | | | |
| Fund | | Average
Interest Rate | | | Average Outstanding
Loan Payable | |
Real Estate Long/Short Fund | | | 1.378 | % | | $ | 5,171,367 | |
Select Income Fund | | | 1.377 | % | | | 80,760,742 | |
Select Opportunity Fund | | | 1.378 | % | | | 986,371 | |
Distributions to Shareholders: Dividends from net investment income, if any, are declared and paid quarterly for the Funds. For all Funds, net realized capital gains, if any, are normally distributed annually in December, and a spillover capital gain distribution, if any, is distributed in the year after which a Fund elects to treat the distribution as paid for Federal income tax purposes. There is no guarantee that 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 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 (a portion of which may be reclaimable) or provided for in accordance with the applicable country’s tax rules and rates and are disclosed in the Statement of Operations. 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, 2015, 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
Notes to Financial Statements (Unaudited)
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. Management does not believe there are any uncertain tax positions that require recognition of a tax liability.
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 of the 1940 Act) and/or shareholder services plans for a particular class of a Fund are charged to the operations of such class.
ReFlow Transactions: Certain Funds may participate 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. 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 six months ended June 30, 2015 are recorded in the Statement of Operations, if applicable.
3. Investment Management Services
On June 9, 2015, Forward Management was acquired by Salient Partners, L.P. (“Salient”), an asset manager headquartered in Houston, Texas advising across a broad spectrum of traditional and alternative investments. Subsequent to the acquisition, Forward Management continues to act as the investment advisor of the Funds as a wholly owned subsidiary of Salient pursuant to a new investment management contract, which is substantially identical to the terms of the Funds’ previous investment management agreement, approved by the shareholders of each Fund and the Board of Trustees (see “Approval of the Investment Management Agreement,” “Additional Company information” and “Shareholder Voting Results” following the Notes to Financial Statements). Pursuant to this new investment management agreement, 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, 2015, 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% |
| |
Select Opportunity Fund | | 1.00% |
Expense Limitations: Forward Management has entered into an Expense Limitation Agreement with the Select Opportunity Fund, which limits the total expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired fund fees and expenses, and extraordinary expenses) of certain classes of the Fund,
Notes to Financial Statements (Unaudited)
through a specified date. In addition, Forward Management may voluntarily reimburse additional expenses of certain classes of the Fund. Following are the annual expense limitation rates and expiration dates for the Fund:
| | | | | | | | | | | | | | | | | | | | |
| Fund | | Investor
Class | | | Institutional
Class | | | Class A | | | Class C | | | End Date | |
Select Opportunity Fund | | | 1.58 | % | | | 1.23 | % | | | 1.73 | % | | | 2.18 | % | | | April 30, 2017 | |
Pursuant to the Expense Limitation Agreement, the Fund will reimburse Forward Management for any fee waivers and expense reimbursements made by Forward Management, provided that any such reimbursements made by the Fund to Forward Management will not cause the Fund’s expense limitation to exceed the expense limitation in existence at the time the expenses were incurred or at the time of the reimbursement, whichever 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, 2015, the fee waivers and/or reimbursements were as follows:
| | | | | | | | | | | | |
| Fund | | Fees Waived/
Reimbursed
by Advisor | | | Recoupment of
Past Waived
Fees by Advisor | | | Total | |
| Select Opportunity Fund | | | | | | | | | | | | |
Investor Class | | $ | 2,033 | | | | — | | | $ | 2,033 | |
Institutional Class | | | 12,124 | | | | — | | | | 12,124 | |
Class A | | | 30,289 | | | | — | | | | 30,289 | |
Class C | | | 4,686 | | | | — | | | | 4,686 | |
As of June 30, 2015, the balances of recoupable expenses for each Fund were as follows:
| | | | | | | | | | | | | | | | | | | | |
| Fund | | 2012 | | | 2013 | | | 2014 | | | 2015 | | | Total | |
| International Real Estate Fund | | | | | | | | | | | | | | | | | | | | |
Investor Class | | $ | — | | | | — | | | $ | — | | | | — | | | $ | — | |
Institutional Class | | | 7,899 | | | | — | | | | 6,829 | | | | — | | | | 14,728 | |
Class A | | | — | | | | — | | | | 4,963 | | | | — | | | | 4,963 | |
Class C | | | 7,702 | | | | — | | | | 2,134 | | | | — | | | | 9,836 | |
Advisor Class | | | 335 | | | | — | | | | 653 | | | | — | | | | 988 | |
| Select Opportunity Fund | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | N/A | | | | N/A | | | $ | 2,103 | | | $ | 2,033 | | | $ | 4,136 | |
Institutional Class | | | N/A | | | $ | 37,598 | | | | 42,546 | | | | 12,124 | | | | 92,268 | |
Class A | | | N/A | | | | 23,259 | | | | 46,586 | | | | 30,289 | | | | 100,134 | |
Class C | | | N/A | | | | N/A | | | | 3,700 | | | | 4,686 | | | | 8,386 | |
4. Distribution and Shareholder Services Plans
The Funds have adopted Distribution Plans (the “Distribution Plans”) pursuant to Rule 12b-1 of the 1940 Act that allow each of the Funds to pay for the sale and distribution of its shares at an annual rate of up to the following amounts based on each Fund’s daily average net assets:
| | | | | | | | | | | | | | | | |
| Fund | | Investor
Class | | | Class A | | | Class B | | | Class C | |
Global Infrastructure Fund | | | 0.25 | % | | | 0.35 | %(a) | | | 0.75 | % | | | 0.75 | % |
International Real Estate Fund | | | 0.25 | % | | | 0.35 | %(a) | | | N/A | | | | 0.75 | % |
Real Estate Fund | | | 0.25 | % | | | 0.35 | %(a) | | | N/A | | | | 0.75 | % |
Real Estate Long/Short Fund | | | 0.25 | % | | | 0.35 | %(a) | | | 0.75 | % | | | 0.75 | % |
Select Income Fund | | | 0.25 | % | | | 0.35 | %(a) | | | 0.75 | % | | | 0.75 | % |
Select Opportunity Fund | | | 0.25 | % | | | 0.35 | % | | | N/A | | | | 0.75 | % |
(a) The Fund is currently authorized to pay 0.25% with respect to Class A shares.
Notes to Financial Statements (Unaudited)
The Funds have adopted a shareholder services plan (the “Shareholder Services Plan”) with respect to certain Funds. Under the Shareholder Services Plan, a Fund is authorized to pay third party service providers for non-distribution related services to shareholders. Payments under the Shareholder Services Plan are calculated daily and paid monthly and are not to exceed the following annual rates:
| | | | | | | | | | | | | | | | | | | | | | | | |
| Fund | | Investor
Class | | | Institutional
Class | | | Class A | | | Class B | | | Class C | | | Advisor
Class | |
Global Infrastructure Fund | | | 0.15 | % | | | 0.05 | % | | | 0.20 | % | | | 0.25 | % | | | 0.25 | % | | | 0.10 | % |
International Real Estate Fund | | | 0.15 | % | | | 0.05 | % | | | 0.20 | % | | | N/A | | | | 0.25 | % | | | 0.10 | % |
Real Estate Fund | | | 0.15 | % | | | 0.05 | % | | | 0.20 | % | | | N/A | | | | 0.25 | % | | | N/A | |
Real Estate Long/Short Fund | | | 0.15 | % | | | 0.05 | % | | | 0.20 | % | | | 0.25 | % | | | 0.25 | % | | | 0.10 | % |
Select Income Fund | | | 0.15 | % | | | 0.05 | % | | | 0.20 | % | | | 0.25 | % | | | 0.25 | % | | | 0.10 | % |
Select Opportunity Fund | | | 0.15 | % | | | 0.05 | % | | | 0.20 | % | | | N/A | | | | 0.25 | % | | | N/A | |
The expenses of the Distribution Plans and the Shareholder Services Plan are reflected as distribution and service fees in the Statement of Operations.
Administrator, Custodian, Distributor, Dividend Paying Agent & Transfer Agent
ALPS Fund Services, Inc. (“AFS”) serves as the Funds’ administrator, transfer agent and dividend paying agent.
Citibank serves as the Funds’ custodian.
Forward Securities, LLC, a wholly owned subsidiary of Forward Management, (the “Distributor”) serves as the Funds’ distributor. The Distributor acts as an agent for the Funds and the distributor of their shares.
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, 2015, there were eleven Trustees, ten of whom are not “interested persons” of the Trust within the meaning of that term under the 1940 Act (each, an “Independent Trustee”), and two Advisory Board Members. The Funds pay each Independent Trustee and Advisory Board member a retainer fee in the amount of $35,000 per year. The Funds pay each Independent Trustee and Advisory Board Member the amount of: $12,500 for attendance in person at a regular meeting and $9,000 for attendance by telephone at a regular meeting; $5,000 for attendance in person or by video conference at a special meeting that is not held in conjunction with a regular meeting and $3,000 for attendance by telephone at a special meeting that is not held in conjunction with a regular meeting; and $1,500 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 $25,000, $12,500 and $7,500, respectively per year (prior to April 1, 2015, the Chairman of the Board of Trustees received a special retainer fee in the amount of $15,000). The interested Trustee receives no compensation from the Funds. In addition, Independent Trustees and Advisory Board Members receive reimbursements for reasonable out-of-pocket expenses incurred for their services as a Trustee or an Advisory Board Member, including for the transportation and other expenses that they incur in attending meetings.
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, Trustees and Advisory Board members 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.
Notes to Financial Statements (Unaudited)
7. Purchases and Sales of Investments
Investment transactions for the six months ended June 30, 2015, 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 | | $ | 34,903,901 | | | $ | 67,067,315 | |
International Real Estate Fund | | | 117,570,932 | | | | 126,419,169 | |
Real Estate Fund | | | 26,513,927 | | | | 54,849,744 | |
Real Estate Long/Short Fund | | | 23,781,243 | | | | 29,050,431 | |
Select Income Fund | | | 461,518,883 | | | | 341,793,241 | |
Select Opportunity Fund | | | 17,039,786 | | | | 13,128,612 | |
8. Tax Basis Information
Tax Basis of Investments: As of June 30, 2015, 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 | | $ | 58,386,448 | | | $ | 5,110,851 | | | $ | (3,607,125 | ) | | $ | 1,503,726 | |
International Real Estate Fund | | | 71,417,831 | | | | 4,878,271 | | | | (3,274,985 | ) | | | 1,603,286 | |
Real Estate Fund | | | 44,314,781 | | | | 12,631,843 | | | | (2,815,843 | ) | | | 9,816,000 | |
Real Estate Long/Short Fund | | | 57,778,712 | | | | 14,771,142 | | | | (4,412,773 | ) | | | 10,358,369 | |
Select Income Fund | | | 1,548,111,267 | | | | 198,475,403 | | | | (68,625,459 | ) | | | 129,849,944 | |
Select Opportunity Fund | | | 26,878,572 | | | | 1,019,834 | | | | (1,199,835 | ) | | | (180,001 | ) |
Capital Losses: Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), capital losses incurred after December 31, 2010 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. As of December 31, 2014, the following Funds had available for Federal income tax purposes unused capital losses that may be used to offset future realized capital gains as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Fund | | Expiring in
2015(a) | | | Expiring in
2016(a) | | | Expiring in
2017(a) | | | Expiring in
2018(a) | | | Short-Term(b) | | | Long-Term(b) | | | Total | |
Global Infrastructure Fund | | $ | — | | | $ | 3,342,497 | | | $ | 30,182,432 | | | $ | 24,061,967 | | | $ | — | | | $ | — | | | $ | 57,586,896 | |
International Real Estate Fund | | | 319,827 | | | | 67,712,152 | | | | 60,639,639 | | | | 3,986,802 | | | | 8,765,171 | | | | 5,647,229 | | | | 147,070,820 | |
Real Estate Fund(c) | | | — | | | | 1,123,334 | | | | — | | | | — | | | | — | | | | — | | | | 1,123,334 | |
Real Estate Long/Short Fund | | | — | | | | 53,630,252 | | | | 107,182,629 | | | | — | | | | — | | | | — | | | | 160,812,881 | |
(a) Capital losses incurred prior to December 31, 2010 under pre-enactment law.
(b) Capital losses incurred after December 31, 2010 under the Act and not subject to expiration.
(c) Subject to limitations under §382 of the Code.
Notes to Financial Statements (Unaudited)
The Funds elect to defer to the period ending December 31, 2015 capital losses and late-year ordinary losses recognized during the period November 1, 2014 to December 31, 2014 in the amount of:
| | | | | | | | |
| Fund | | Capital
Losses Total | | | Ordinary
Losses Total | |
Global Infrastructure Fund | | $ | 425,532 | | | $ | 145,778 | |
International Real Estate Fund | | | 843,830 | | | | — | |
Real Estate Long/Short Fund | | | 341,374 | | | | 33,611 | |
Select Opportunity Fund | | | 59,152 | | | | 1,536 | |
Tax Character 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 characterizations of distributions and compositions of distributable earnings/(accumulated losses) are finalized at fiscal year-end; accordingly, these tax adjusted amounts have not been determined as of June 30, 2015.
The tax character of distributions paid for the year ended December 31, 2014 were as follows:
| | | | | | | | | | | | |
| Fund | | Ordinary
Income Total | | | Long-Term
Capital Total | | | Return of
Capital Total | |
Global Infrastructure Fund | | $ | 1,331,975 | | | $ | — | | | | — | |
International Real Estate Fund | | | 6,907,422 | | | | — | | | | — | |
Real Estate Fund | | | 4,888,358 | | | | 2,463,705 | | | | — | |
Real Estate Long/Short Fund | | | 605,965 | | | | — | | | | — | |
Select Income Fund | | | 74,987,736 | | | | 52,828,576 | | | | — | |
Select Opportunity Fund | | | 2,816,813 | | | | 68,761 | | | | — | |
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.
9. 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.
As of June 30, 2015, the Select Income Fund owned 5% or more of the outstanding voting securities of the securities identified in the table below. The purchases, sales, dividend income, realized capital gains, shares and value of investment of the Select Income Fund in affiliated companies for the six months ended June 30, 2015 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Security Name | | Beginning
Shares | | | Gross
Purchases | | | Gross
Sales | | | Ending
Shares | | | Value
06/30/2015 | | | Dividend
Income | | | Realized
Gain/(Loss) | |
Common Stocks | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Armada Hoffler Properties, Inc. | | | 1,320,000 | | | | — | | | | — | | | | 1,320,000 | | | $ | 13,186,800 | | | $ | 448,800 | | | $ | — | |
Campus Crest Communities, Inc. | | | 3,714,500 | | | | — | | | | — | | | | 3,714,500 | | | | 20,578,330 | | | | — | | | | — | |
National Storage Affiliates Trust | | | — | | | | 2,120,900 | | | | — | | | | 2,120,900 | | | | 26,299,160 | | | | 318,135 | | | | — | |
Peak Resorts, Inc. | | | 1,183,171 | | | | — | | | | — | | | | 1,183,171 | | | | 8,471,505 | | | | 162,686 | | | | — | |
Trade Street Residential, Inc. | | | 2,307,000 | | | | — | | | | — | | | | 2,307,000 | | | | 15,364,620 | | | | 438,330 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | $ | 83,900,415 | | | $ | 1,367,951 | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Notes to Financial Statements (Unaudited)
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. Change of Independent Registered Public Accounting Firm
At a meeting held on June 9, 2015, the Board of Trustees selected KPMG LLP (“KPMG”) to serve as the Funds’ independent registered public accounting firm for the Funds’ fiscal year ending December 31, 2015. The decision to select KPMG followed the withdrawal of the previously selected registered public accounting firm, PricewaterhouseCoopers, LLP (“PwC”), due to an independence issue resulting from the acquisition of Forward Management by Salient Partners. During the Funds’ fiscal years ended December 31, 2014 and December 31, 2013, and through June 9, 2015, neither the Funds, their portfolios, nor anyone on their behalf, consulted with KPMG on items that: (i) concerned the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that
might be rendered on the Funds’ financial statements; or (ii) concerned the subject of a disagreement (as defined in paragraph (a)(1)(iv) of Item 304 of Regulation S-K under the Securities Exchange Act of 1934) or reportable events (as described in paragraph (a)(1)(iv) of said Item 304).
Throughout the Funds’ two most recent fiscal years, and through June 9, 2015, the Funds had no disagreements with PwC on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedures, and there were no reportable events of the kind described in Item 304(a)(1)(v) of Regulation S-K. With respect to the Funds, PwC’s audit opinions for the past two fiscal years, have not contained either an adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope or accounting principles.
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, 2015.
The Funds file a complete schedule of portfolio holdings with the Securities and Exchange Commission (“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, 2015. 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 SEC’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, 2015 are available (i) without charge, upon request, by calling 1-800-999-6809 and (ii) on the SEC’s website at www.sec.gov.
Approval of the Investment Management Agreement (Unaudited)
The Board of Trustees (the “Board”) of the Trust oversees the management of each series of the Trust and, as required by law, initially approves, and determines annually whether to renew, the investment advisory agreement for management of each series of the Trust.
At a special in-person meeting of the Board held on January 13, 2015, the Board, including all of the Independent Trustees, unanimously voted to approve a new investment advisory agreement (the “New Advisory Agreement”) between Forward Management and the Trust on behalf of the Funds for an initial two-year period, subject to approval by the shareholders of each Fund and effective upon the closing of the acquisition of Forward Management by Salient (the “Transaction”). The successful closing of the Transaction would result in a change of control of Forward Management, which, in turn, would result in the automatic termination of any existing investment advisory agreement as required by the Investment Company Act. As a result, for Forward Management to continue to serve as investment advisor to the Funds after the Transaction, it was necessary for the Board to approve the New Advisory Agreement. The New Advisory Agreement is substantially identical to the previous investment advisory agreement between the Trust and Forward Management (the “Previous Advisory Agreement”), which the Board had reviewed and approved at an in-person meeting of the Board held on December 10, 2014. The Board acknowledged that its duties under Section 15(c) of the Investment Company Act with respect to the Board’s consideration and approval of the Previous Advisory Agreement would be equally applicable to the Board’s deliberations and approval of the New Advisory Agreement. For the reasons summarized below, the Board concluded that approval of the New Advisory Agreement resulting from the Transaction was in the best interests of each Fund and its shareholders. The New Advisory Agreement became effective on June 9, 2015 following approval by the shareholders of each Fund and the closing of the Transaction.
Beginning in September of 2014 and over the course of the Board’s due diligence in connection with its consideration of the New Advisory Agreement and the Transaction, the Independent Trustees solicited and received ongoing advice regarding the Board’s legal duties from independent legal counsel to the Independent Trustees. And with assistance from their legal counsel, the Independent Trustees also prepared written and oral requests for information from both Forward Management and Salient regarding the Transaction, Previous Advisory Agreement and the New Advisory Agreement, including details regarding each entity’s anticipated business plan for continuing operations after the Transaction. At in-person meetings of the Board on October 27, 2014, December 10, 2014, and January 13, 2015, the Board received and reviewed written responses and in-person presentations by senior management personnel from Forward Management and Salient (the “15(c) Materials”) to enable the Board to evaluate the terms of both the Previous Advisory Agreement and New Advisory Agreement.
In certain sessions, the Independent Trustees met alone with only their legal counsel present. At other times, the Independent Trustees engaged in formal and informal discussions among themselves, their legal counsel, and representatives of Forward Management and Salient as they deemed necessary.
Discussed below are the factors the Board considered in approving the New Advisory Agreement. This discussion is not intended to be all-inclusive. The Board reviewed a variety of factors and considered a significant amount of information, including the 15(c) Materials and information received on an ongoing basis at Board and Board committee meetings.
In connection with its approval of the New Advisory Agreement on January 13, 2015, the Board considered its conclusions in connection with its December 10, 2014 approval of the Previous Advisory Agreement, including the Board’s general satisfaction with the nature and quality of services being provided by Forward Management under the Previous Advisory Agreement. Therefore, in considering the New Advisory Agreement, the Board focused its review on, and requested and evaluated other information relating to, the potential impact of the Transaction on the operations, personnel, organizational structure, capitalization, and financial and other resources of Forward Management and its affiliates that render advisory, administrative, distribution, compliance, and other services to the Funds. Also in connection with its January 13, 2015 approval of the New Advisory Agreement, the Board took into account that, commencing in September of 2014, it had posed ongoing inquiries related to the Transaction and received regular updates and information in response from Forward Management and Salient. In particular, the Board considered assurances from Forward Management and Salient that neither was aware of any additional developments unrelated to the Transaction and not already disclosed to the Board or its representatives since December 10, 2014 that would be a material consideration to the Board in connection with its consideration of the New Advisory Agreement. Accordingly, a substantial portion of this review was conducted as part of, and in conjunction with, the Board’s annual review of the Previous Advisory Agreement, during which the Board was aware that it likely would be asked in the near future to consider approval of the New Advisory Agreement.
On December 10, 2014, the Board concluded, in light of all factors it considered, that the approval of the Previous Advisory Agreement was in the best interests of each Fund and its shareholders and that the fee rates set forth in the Previous Advisory Agreement were fair and reasonable. Among other factors, the Board considered: (1) the nature and quality of services provided and to be provided under the Previous Advisory Agreement; (2) the extent to which economies of scale are reflected in fee schedules under the
Approval of the Investment Management Agreement (Unaudited)
Previous Advisory Agreement; (3) the existence of any “fall-out” benefits to Forward Management and its affiliates and third party sub-advisors, if applicable; (4) a comparison of fee rates, expense ratios, and investment performance to those of similar funds; and (5) the costs incurred and profits realized by Forward Management and its affiliates with respect to their services to each Fund. A further description of the considerations taken into account by the Board in approving the continuation of the Previous Advisory Agreement, including the information reviewed, certain material factors considered, and certain related conclusions reached, is available in the Forward Funds’ annual reports for the most recent fiscal year ended December 31, 2014.
The Board considered representations by Forward Management and its affiliates, as well as related supporting documentation and advice from legal counsel, indicating that the New Advisory Agreement is substantially similar to and, in any event, no less favorable to the Funds than, the terms of the Previous Advisory Agreement (including the fees payable thereunder). The Board also considered additional advice provided by legal counsel relating to the New Advisory Agreement, including advice relating to the process and timing of seeking shareholder approval. The Board considered that Forward Management and Salient agreed to bear the expenses associated with obtaining Board and shareholder approval of the New Advisory Agreement and that the Funds would not bear any costs associated with the Transaction. The Board also noted that the agreement between Forward Management and Salient governing the Transaction contained representations that no “unfair burden” would be imposed on the Funds following the closing of the Transaction, in accordance with Section 15(f) of the Investment Company Act.
The Board’s consideration of the New Advisory Agreement focused on, among other matters, the expectations for continuity and stability of Forward Management throughout the implementation of the Transaction and thereafter. The Board carefully considered Forward Management’s anticipated future plans related to operational matters and levels of staffing and related compensation structures. In this regard, the Independent Trustees noted that they had requested and received assurances that: (i) Forward Management and its affiliates are committed to maintaining appropriate levels of overall staffing, ongoing resources and service quality; (ii) Forward Management could be expected to provide services of the same nature, extent, and quality under the New Advisory Agreement as are provided thereby under the Previous Advisory Agreement; and (iii) the Transaction was not expected to result in any material changes to the investment objective of or the principal investment strategies used to manage any of the Funds. In addition, the Board considered representations by Forward
Management and Salient and their affiliates that Forward Management’s ownership by Salient as contemplated by the Transaction, including changes in certain key officers, would not lead to a reduction in the quality or scope of these and other services provided to the Funds.
The Board considered acknowledgements from Salient of the importance of Forward Management continuing to be able to operate in the interests of Fund shareholders. Also, the Board considered the potential benefits that may be realized by Forward Management and its affiliates as a result of the continuation of their relationship with the Funds under the New Advisory Agreement. In addition, the Board considered that, following the Transaction, the Board will continue to monitor on a regular basis the ability of Forward Management and its affiliates to comply with their undertakings and to monitor on an ongoing basis the quality of services to, and expenses of, the Funds. Additionally, the Board considered that, under the New Advisory Agreement, it will continue to have the authority, should the need arise in its view, to terminate the New Advisory Agreement without penalty upon 60 days’ notice.
In this connection, the Board generally was satisfied with the nature and quality of the services expected to be provided by Forward Management to the Funds following the Transaction, including investment advisory, administrative, and support services, and has decided that it would be in the Funds’ best interests to maintain continuity and stability of the services currently being provided.
In addition, the Board considered, among other things, the following:
| | 1. | A representation from Salient that all contractual expense limitations for the Forward Funds in place as of January 13, 2015 or put in place prior to May 1, 2015 would be continued through at least April 30, 2017 should the Transaction be completed. |
| | 2. | A representation from Salient that neither Forward Management nor Salient will propose any increases to any asset-based or per account fees borne by the Funds, to the extent such fees are within the control of Salient or Forward Management, for at least the two-year period following the Transaction. |
| | 3. | A representation from Salient that should the Transaction be completed, Forward Management would engage in good faith discussions with the Board on a going forward basis with respect to the desirability of continuing the various expense limitation agreements in place for the Funds and imposing new expense limitation agreements should circumstances give rise to material increases in the Funds’ expense ratios. |
In reaching its determination to approve the New Advisory Agreement, the Board considered the additional resources that were expected to be made
Approval of the Investment Management Agreement (Unaudited)
available to the Funds and Forward Management as a result of the Transaction, the fact that Forward Management would become part of a larger asset management firm as a result of the Transaction, and that the Transaction was not expected to have any material impact on the Funds’ investment strategies.
In this connection, the Board noted that no one factor was determinative of its decisions which, instead, were premised upon the totality of factors considered. The approval determination was made on the basis of each Board member’s business judgment after consideration of all of the information taken as a whole. The Board also noted that different Trustees likely placed emphasis on different factors in reaching their individual conclusions to approve in favor of the New Advisory Agreement.
Based on the foregoing and other relevant considerations, the Board, including all of the Independent Trustees, concluded that, in light of all factors considered, the terms of the New Advisory Agreement, including fee rates, were fair and reasonable, and that it would be in the best interests of the shareholders of each Fund to approve the New Advisory Agreement so as to enable there to be a continuation without interruption of the current services being provided by Forward Management pursuant to the Previous Advisory Agreement. Based on the Trustees’ deliberations and their evaluation of the information described above, the Trustees, including all of the Independent Trustees, unanimously approved, with respect to the Funds, the New Advisory Agreement.
Additional Company Information (Unaudited)
Board of Trustees
The Trust’s Board of Trustees oversees the management and business of the Funds. The Trustees are elected by shareholders of the Trust, or, in certain circumstances, may be appointed by the other Trustees. There are currently eleven Trustees, ten of whom are not “interested persons” of the Trust as that term is defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (each an “Independent Trustee” and together, the “Independent Trustees”) and two Advisory Board Members. The Trustees, Advisory Board Members and Officers of the Trust, along with their affiliations over the last five years, are set forth below. The Trust’s Statement of Additional Information includes additional information about the Trustees and is available at forwardinvesting.com or upon request, without charge, by calling 800-999-6809.
Independent Trustees:
| | | | | | | | | | |
Name,
Address,
and Year
of Birth* | | Position(s)
Held with
the Trust | | Term of
Office and
Length of
Time Served** | | Principal Occupation(s) During Past Five Years | | Number of
Funds in Fund
Complex
Overseen by
Trustee | | Other Directorships
Held by Trustee*** |
Haig G. Mardikian Year of Birth: 1947 | | Chairman | | Since 1998+ | | Owner of Haig G. Mardikian Enterprises, a real estate investment business (since 1971); General Partner of M&B Development, a real estate investment business (since 1983); General Partner of
George M. Mardikian Enterprises, a real estate investment business (1983 to 2002); President and Director of Adiuvana-Invest, Inc., a real estate investment business (since 1989); Director of PCG Asset Management, a private equity investment advisor (2001 to 2011); President of the William Saroyan Foundation (since 1992); Managing Director of the United Broadcasting Company, radio broadcasting (1983 to 2001); Trustee of the International House of UC Berkeley (2001 to 2007); Director of the Downtown Association of San Francisco (1982 to 2006); Director of the Market Street Association (1982 to 2006); Trustee of Trinity College (1998 to 2007); Trustee of the Herbert Hoover Presidential Library (since 1997); Trustee of the Herbert Hoover Foundation (since 2002); Trustee of the Advisor California Civil Liberties Public Education Fund (1997 to 2006); Director of The Walnut Management Co., a privately held family investment company (since 2008); President of the Foundation of City College (2006 to 2010); Director of Near East Foundation (since 2007). | | 29 | | Chairman and Director of SIFE Trust Fund (1978 to 2001). |
| | | | | |
Donald O’Connor Year of Birth:1936 | | Trustee | | Since 2000+ | | Financial Consultant (since 1997); Retired Vice President of Operations, Investment Company Institute (“ICI”), a mutual fund trade association (1969 to 1993); Executive Vice President and Chief Operating Officer, ICI Mutual Insurance Company, an insurance company (1987 to 1997); Chief, Branch of Market Surveillance, Securities and Exchange Commission (1964 to 1969). | | 29 | | Trustee of the Advisors Series Trust (47 funds) (since 1997). |
Additional Company Information (Unaudited)
| | | | | | | | | | |
Name,
Address,
and Year
of Birth* | | Position(s)
Held with
the Trust | | Term of
Office and
Length of
Time Served** | | Principal Occupation(s) During Past Five Years | | Number of
Funds in Fund
Complex
Overseen by
Trustee | | Other Directorships
Held by Trustee*** |
Cecilia H. Herbert Year of Birth: 1949 | | Trustee, Nominating Committee Chairperson | | Since 2009+ | | Director (2000 to 2013) and President (2007 to 2010) of the Board, Catholic Charities CYO; Member, Archdiocese Finance Committee, the advisory council to the San Francisco Catholic Archdiocese (since 1994); Trustee, The Thacher School (2002 to 2011); Trustee, WNET, the public media company of New York (since 2011); Managing Director and head of San Francisco Office, J.P. Morgan/Morgan Guaranty Trust Company, a commercial and investment banking institution (1973 to 1976 and 1978 to 1991). | | 29 | | Director, iShares Inc. (since 2005) and iShares MSCI Russia Capped ETF, Inc. (since 2010), and Trustee, iShares Trust (since 2005) and iShares U.S. ETF Trust (since 2011) (collectively, 335 funds); Trustee, Pacific Select Funds (2004 to 2005); Trustee, The Montgomery Funds (1992 to 2003). |
| | | | | |
Julie Allecta Year of Birth: 1946 | | Trustee, Audit Committee Chairperson | | Since 2012+ | | Retired Partner, Paul Hastings, Janofsky & Walker LLP (1999 to 2009); Member of Governing Council, Independent Directors Council (since 2014); Vice President and Director, WildCare Bay Area (since 2007); Director, Audubon Canyon Ranch, Inc. (2009 to 2014); Parliamentarian and Director, American Society of Botanical Artists, Northern California Chapter (2014). | | 29 | | Trustee, Litman Gregory Funds Trust (four funds) (since 2013). |
| | | | | |
A. John Gambs Year of Birth: 1945 | | Trustee | | Since 2012+ | | Director and Compensation Committee Chair, NMI Holdings, Inc. (2011 to 2012); Trustee and Audit Committee Chair, Barclays Global Investors Funds (2006 to 2010); Trustee and Audit Committee Chair, Master Investment Portfolio (2006 to 2010); Advisory Board Member, Fairview Capital Management (since 2009); Director, San Francisco Classical Voice (since 2011); Member, Board of Governors San Francisco Symphony (since 2001); Director, The New Century Chamber Orchestra (since 2010); Executive Vice President and Chief Financial Officer, The Charles Schwab Corporation (1988 to 1996); President and Director, Gambs Family Foundation (1997 to 2010). | | 29 | | None. |
Additional Company Information (Unaudited)
| | | | | | | | | | |
Name,
Address,
and Year
of Birth* | | Position(s)
Held with
the Trust | | Term of
Office and
Length of
Time Served** | | Principal Occupation(s) During Past Five Years | | Number of
Funds in Fund
Complex
Overseen by
Trustee | | Other Directorships
Held by Trustee*** |
Karin B. Bonding, CFA Year of Birth: 1939 | | Trustee | | Since 2015+ | | Lecturer, University of Virginia (1996 to 2015); President of Capital Markets Institute, Inc. (fee-only financial planner and investment advisor) (since 1996). | | 29 | | Salient MF Trust (seven funds) (since 2012); The Endowment Funds (five funds) (since 2010); Salient MLP & Energy Infrastructure Fund (2011 to 2014); Salient Midstream & MLP Fund (since 2012); Salient Alternative Strategies Funds (two funds) (since 2010); Brandes Investment Trust (2006 to 2012); Credit Suisse Alternative Capital Funds (2005 to 2010). |
| | | | | |
Jonathan P. Carroll Year of Birth: 1961 | | Trustee | | Since 2015+ | | President, Lazarus Capital LLC (holding company) (since 2006); President, Lazarus Energy Holdings, LLC (holding company) (since 2006); President and Chief Executive Officer, Blue Dolphin Energy Company (since 2012); private investor (since 1995). | | 29 | | Salient MF Trust (seven funds) (since 2012); The Endowment Funds (five funds) (since 2004); The PMF Funds (three funds) (since 2014); Salient MLP & Energy Infrastructure Fund (2011 to 2014); Salient Midstream & MLP Fund (since 2012); Salient Alternative Strategies Funds (two funds) (since 2010); LRR Energy, L.P. (energy company) (since 2014); Blue Dolphin Energy Company (energy company) (since 2014). |
Additional Company Information (Unaudited)
| | | | | | | | | | |
Name,
Address,
and Year
of Birth* | | Position(s)
Held with
the Trust | | Term of
Office and
Length of
Time Served** | | Principal Occupation(s) During Past Five Years | | Number of
Funds in Fund
Complex
Overseen by
Trustee | | Other Directorships
Held by Trustee*** |
Dr. Bernard A. Harris, Jr. Year of Birth: 1956 | | Trustee | | Since 2015+ | | Chief Executive Officer and Managing Partner, Vesalius Ventures, Inc. (venture investing) (since 2002); President of The Space Agency (marketing) (since 1999); President of The Harris Foundation (non-profit) (since 1998); clinical scientist, flight surgeon and astronaut for NASA (1986 to 1996); Member, Board of Directors, National Math and Science Initiative (since 2008); Member, Board of Directors, The Space Agency (since 2008); Member, Board of Directors, Communities in Schools (since 2007); Member, Board of Directors, American Telemedicine Association (since 2007); Director, U.S. Physical Therapy, Inc. (since 2005); Director, Houston Technology Center (since 2004); Member, Board of Directors, Houston Angel Network (since 2004). | | 29 | | Salient MF Trust (seven funds) (since 2012); The Endowment Funds (five funds) (since 2009); Salient MLP & Energy Infrastructure Fund (2011 to 2014); Salient Midstream & MLP Fund (since 2012); Salient Alternative Strategies Funds (two funds) (since 2010); Babson Funds (five funds) (since 2011); Monebo Technologies Inc. (medical) (since 2009); Sterling Bancshares, Inc. (2007 to 2014). |
| | | | | |
Richard C. Johnson Year of Birth: 1937 | | Trustee | | Since 2015+ | | Senior Counsel (retired), Baker Botts LLP (law firm); Managing Partner, Baker Botts (1998 to 2002); practiced law at Baker Botts (1966 to 2002, including from 1972 to 2002 as a partner). | | 29 | | Salient MF Trust (seven funds) (since 2012); The Endowment Funds (five funds) (since 2004); The PMF Funds (three funds) (since 2014); Salient MLP & Energy Infrastructure Fund (2011 to 2014); Salient Midstream & MLP Fund (since 2012); Salient Alternative Strategies Funds (two funds) (since 2010). |
Additional Company Information (Unaudited)
| | | | | | | | | | |
Name,
Address,
and Year
of Birth* | | Position(s)
Held with
the Trust | | Term of
Office and
Length of
Time Served** | | Principal Occupation(s) During Past Five Years | | Number of
Funds in Fund
Complex
Overseen by
Trustee | | Other Directorships
Held by Trustee*** |
Scott E. Schwinger Year of Birth: 1965 | | Trustee | | Since 2015+ | | President, The McNair Group (management) (since 2006); Senior Vice President and Chief Financial Officer, The Houston Texans (professional football team) (since 1999), Member, Board of Directors, The Make-A-Wish Foundation, Texas Gulf Coast and Louisiana (since 2008); Member, Board of Directors, YES Prep Public Schools (2001 to 2014); Director, Houston Technology Center (since 2013). | | 29 | | Salient MF Trust (seven funds) (since 2012); The Endowment Funds (five funds) (since 2004); The PMF Funds (three funds) (since 2014); Salient MLP & Energy Infrastructure Fund (2011 to 2014); Salient Midstream & MLP Fund (since 2012); Salient Alternative Strategies Funds (two funds) (since 2012). |
Additional Company Information (Unaudited)
Interested Trustee:
| | | | | | | | | | |
Name,
Address,
and Year
of Birth* | | Position(s)
Held with
the Trust | | Term of
Office and
Length of
Time Served** | | Principal Occupation(s) During Past Five Years | | Number of
Funds in Fund
Complex
Overseen by
Trustee | | Other
Directorships
Held by
Trustee*** |
| John A. Blaisdell**** Year of Birth: 1960 | | President, Trustee | | Since 2015+ | | Chief Executive Officer and Director of Forward Management, LLC, an investment advisor (since 2015); Member, Investment Committee of Salient Advisors, L.P. (since 2002); Managing Director of Salient Partners, L.P. (since 2002). | | 29 | | Salient MF Trust (seven funds) (since 2012); The Endowment Funds (five funds) (since 2004); The PMF Funds (three funds) (since 2014); Salient MLP & Energy Infrastructure Fund (2011 to 2014); Salient Midstream & MLP Fund (since 2012); Salient Alternative Strategies Funds (two funds) (since 2012). |
| * | Each Trustee may be contacted by writing to the Trustee, c/o Forward Management, LLC, 101 California Street, 16th Floor, San Francisco, CA 94111. |
| ** | Each Trustee will hold office for an indefinite term until the earliest of (i) the next meeting of shareholders, if any, called for the purpose of considering the election or re-election of such Trustee and until the election and qualification of his successor, if any, elected at such meeting; or (ii) the date a Trustee resigns or retires, or a Trustee is removed by the Board of Trustees or shareholders, in accordance with the Trust’s Amended and Restated Agreement and Declaration of Trust (the “Declaration of Trust”). |
| *** | This column includes only directorships of companies required to report to the SEC under the Securities Exchange Act of 1934 (i.e., public companies) or other investment companies registered under the 1940 Act. |
| **** | Mr. Blaisdell is considered an interested Trustee because he acts as Chief Executive Officer of Forward Management, LLC, the Funds’ investment advisor, and holds other positions with an affiliate of the Trust. |
| + | Messrs. Mardikian, and O’Connor have served as Trustee to the Trust since May 1, 2005. However, beginning on the date indicated in the chart, Messrs. Mardikian, and O’Connor served as a director for the nine series of Forward Funds, Inc., which were reorganized as series of the Trust effective July 1, 2005. Ms. Herbert was appointed as a Trustee effective November 9, 2009. Ms. Allecta was appointed as a Trustee effective January 1, 2012 and elected by shareholders of the Trust as a Trustee effective June 9, 2015. Mr. Gambs was appointed as a Trustee effective December 31, 2012 and elected by shareholders of the Trust as a Trustee effective June 9, 2015. Messrs. Blaisdell, Carroll, Harris, Johnson, and Schwinger and Ms. Bonding were each elected by shareholders of the Trust as a Trustee effective June 9, 2015. |
Additional Company Information (Unaudited)
Advisory Board Members:
| | | | | | | | | | |
Name,
Address,
and Year
of Birth | | Position(s)
Held with
the Trust | | Term of
Office and
Length of
Time Served* | | Principal Occupation(s) During Past Five Years | | Number of
Funds in Fund
Complex
Served by
Advisory
Board
Member | | Directorships
Held by
Advisory Board Member |
DeWitt F. Bowman 101 California Street, 16th Floor San Francisco, CA 94111 Year of Birth: 1930 | | Advisory Board Member | | Since 2015 | | Pension Investment Consulting, a consulting company (since 1994); Interim Treasurer and Vice President for Investments, University of California (2000 to 2001); Treasurer of Pacific Pension Institute, a non-profit education organization (1994 to 2002); Treasurer of Edgewood Center for Children and Families, a non-profit care center (1994 to 2004); Director, Episcopal Diocese of California, a non-profit religious organization (1964 to 2008); Trustee of the Pacific Gas and Electric Nuclear Decommissioning Trust Fund, a nuclear decommissioning trust (since 1994); Chief Investment Officer, California Public Employees Retirement System (1989 to 1994). | | 29 | | Trustee, Forward Funds (2006 to 2015)+; Trustee, Brandes Mutual Funds (1995 to 2012); Lead Director, RREEF America III REIT (2007 to 2012); Director, RREEF America I REIT (2004 to 2007); Trustee, PCG Private Equity Fund (since 1994). |
| | | | | |
G. Edward Powell 101 California Street, 16th Floor San Francisco, CA 94111 Year of Birth: 1936 | | Advisory Board Member | | Since 2015 | | Principal of Mills & Stowell (private equity) (since 2002); Managing Partner, PriceWaterhouse & Co., Houston office (1982 to 1994) ; Therapy Track, LLC (2009 to 2012); Director, Global Water Technologies, Inc.; Director, Datavox Holdings, Inc.; Energy Services International, Inc. (2004 to 2013). | | 29 | | Salient MF Trust (seven funds) (since 2012); The Endowment Funds (five funds) (since 2004); The PMF Funds (three funds) (since 2014); Salient MLP & Energy Infrastructure Fund (2011 to 2014); Salient Midstream & MLP Fund (since 2012); Salient Alternative Strategies Funds (two funds) (since 2012). |
| * | Each Advisory Board member will hold office for an indefinite term, except that any Advisory Board member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. |
| + | Since 2000, Mr. Bowman also served as a director for the nine series of Forward Funds, Inc., which were reorganized as series of the Trust effective July 1, 2005. |
Additional Company Information (Unaudited)
Officers:
| | | | | | |
Name, Address,
and Year
of Birth* | | Position(s)
Held with
the Trust | | Term of Office
and Length of
Time Served | | Principal Occupation(s) During Past Five Years |
Robert S. Naka 101 California Street, 16th Floor San Francisco, CA 94111 Year of Birth: 1963 | | Vice President and Secretary | | Vice President since 2009 and Secretary since 2012 | | President, Trust (2015); Chief Operating Officer, Forward Management, LLC (since 2009); Interim Chief Executive Officer, Forward Management, LLC (2015); Principal & Chief Operating Officer, Anew Capital Management LLC (2007 to 2009); Executive Vice President & Chief Operating Officer, ING Funds & Predecessors (1989 to 2007). |
| | | |
Barbara H. Tolle 101 California Street, 16th Floor San Francisco, CA 94111 Year of Birth: 1949 | | Treasurer | | Since 2006 | | Vice President, Director of Fund Accounting and Operations, Forward Management, LLC (since 2006); Vice President and Director, Fund Accounting and Administration, PFPC Inc. (1998 to 2006). |
| | | |
Judith M. Rosenberg 101 California Street, 16th Floor San Francisco, CA 94111 Year of Birth: 1948 | | Chief Compliance Officer and Chief Legal Officer | | Since 2005 | | Chief Compliance Officer, Forward Management, LLC (2005 to 2015); Chief Compliance Officer and Secretary, Forward Securities, LLC (since 2010); First Vice President and Senior Attorney, Morgan Stanley (1984 to 1997; 2002 to 2005); Director of Compliance, Morgan Stanley Online (1997 to 2002). |
| | | |
Kathryn A. Burns 1290 Broadway, Suite 1100 Denver, CO 80203 Year of Birth: 1976 | | Assistant Treasurer | | Since 2014 | | Assistant Vice President and Fund Controller, ALPS Fund Services, Inc. (since 2013); Vice President and Chief Compliance Officer, Old Mutual Capital (2010 to 2012); Vice President and Regulatory Reporting Manager, Old Mutual Capital (2006 to 2012); Manager, PricewaterhouseCoopers LLP (2004 to 2006). |
| * | Each officer shall hold office at the pleasure of the Board of Trustees until the next annual meeting of the Trust or until his or her successor is duly elected and qualified, or until he or she dies, resigns, is removed or becomes disqualified. |
Shareholder Voting Results (Unaudited)
Forward Funds
Special Meeting of Shareholders
May 6, 2015
May 29, 2015
Special Meetings of the Shareholders of each of the series of Forward Funds (the “Trust”), were held on May 6, 2015 (the “May 6, 2015 Meeting”) and May 29, 2015 (the “May 29, 2015 Meeting”) to approve proposals in connection with the acquisition of Forward Funds’ investment advisor, Forward Management, LLC (“Forward Management”) by Salient Partners, L.P. (the “Transaction”), which closed on June 9, 2015 and resulted in a change of control of Forward Management. In addition, shareholders were asked to approve the election of eight Trustees to serve on the Board of Trustees of the Trust (the “Board”). The following Trustees, who currently serve on the Board, were previously elected or appointed to the Board prior to May 6, 2015: Julie Allecta, A. John Gambs, Cecilia H. Herbert, Haig G. Mardikian, and Donald E. O’Connor.
At the May 6, 2015 Meeting, the shareholders of the Forward Global Infrastructure Fund, Forward International Real Estate Fund, Forward Real Estate Fund, Forward Real Estate Long/Short Fund, Forward Select Income Fund and Forward Select Opportunity Fund (each, a “Fund”) approved the following proposals:
Forward Global Infrastructure Fund
Proposal 1. To approve a new investment advisory agreement between the Fund and Forward Management, the Fund’s current investment advisor, as a result of the Transaction:
Votes in favor represented 64.422% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 1,263,165.377 | | | | 52.009% | |
Against | | | 7,489.537 | | | | 0.308% | |
Abstain | | | 17,405.424 | | | | 0.717% | |
Broker Non-Vote | | | 672,693.000 | | | | 27.697% | |
| | | | | | | | |
Total | | | 1,960,753.338 | | | | 80.731% | |
Proposal 4. To elect eight Trustees to serve until their successors are elected and qualified, provided that the election of nominees 4c through 4h as Trustees is contingent upon and will not be effective until the closing of the Transaction:
4a. Julie Allecta
Votes in favor represented 98.018% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 1,921,899.246 | | | | 79.132% | |
Withhold | | | 38,854.092 | | | | 1.600% | |
| | | | | | | | |
Total | | | 1,960,753.338 | | | | 80.732% | |
4b. A. John Gambs
Votes in favor represented 98.069% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 1,922,889.914 | | | | 79.173% | |
Withhold | | | 37,863.424 | | | | 1.559% | |
| | | | | | | | |
Total | | | 1,960,753.338 | | | | 80.732% | |
Shareholder Voting Results (Unaudited)
4c. Karin B. Bonding
Votes in favor represented 98.153% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 1,924,542.914 | | | | 79.241% | |
Withhold | | | 36,210.424 | | | | 1.491% | |
| | | | | | | | |
Total | | | 1,960,753.338 | | | | 80.732% | |
4d. Jonathan P. Carroll
Votes in favor represented 97.961% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 1,920,778.377 | | | | 79.086% | |
Withhold | | | 39,974.961 | | | | 1.646% | |
| | | | | | | | |
Total | | | 1,960,753.338 | | | | 80.732% | |
4e. Dr. Bernard A. Harris
Votes in favor represented 98.036% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 1,922,240.914 | | | | 79.146% | |
Withhold | | | 38,512.424 | | | | 1.586% | |
| | | | | | | | |
Total | | | 1,960,753.338 | | | | 80.732% | |
4f. Richard C. Johnson
Votes in favor represented 97.991% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 1,921,370.709 | | | | 79.110% | |
Withhold | | | 39,382.629 | | | | 1.622% | |
| | | | | | | | |
Total | | | 1,960,753.338 | | | | 80.732% | |
4g. Scott E. Schwinger
Votes in favor represented 98.021% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 1,921,940.377 | | | | 79.134% | |
Withhold | | | 38,812.961 | | | | 1.598% | |
| | | | | | | | |
Total | | | 1,960,753.338 | | | | 80.732% | |
Shareholder Voting Results (Unaudited)
4h. John A. Blaisdell
Votes in favor represented 98.021% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 1,921,940.377 | | | | 79.134% | |
Withhold | | | 38,812.961 | | | | 1.598% | |
| | | | | | | | |
Total | | | 1,960,753.338 | | | | 80.732% | |
Forward International Real Estate Fund
Proposal 1. To approve a new investment advisory agreement between the Fund and Forward Management, the Fund’s current investment advisor, as a result of the Transaction:
Votes in favor represented 62.765% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 2,731,480.732 | | | | 55.111% | |
Against | | | 24,016.593 | | | | 0.485% | |
Abstain | | | 16,819.654 | | | | 0.339% | |
Broker Non-Vote | | | 1,579,585.000 | | | | 31.870% | |
| | | | | | | | |
Total | | | 4,351,901.979 | | | | 87.805% | |
Proposal 4. To elect eight Trustees to serve until their successors are elected and qualified, provided that the election of nominees 4c through 4h as Trustees is contingent upon and will not be effective until the closing of the Transaction:
4a. Julie Allecta
Votes in favor represented 98.257% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 4,276,043.891 | | | | 86.275% | |
Withhold | | | 75,858.088 | | | | 1.531% | |
| | | | | | | | |
Total | | | 4,351,901.979 | | | | 87.806% | |
4b. A. John Gambs
Votes in favor represented 98.475% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 4,285,546.850 | | | | 86.467% | |
Withhold | | | 66,355.129 | | | | 1.339% | |
| | | | | | | | |
Total | | | 4,351,901.979 | | | | 87.806% | |
Shareholder Voting Results (Unaudited)
4c. Karin B. Bonding
Votes in favor represented 98.377% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 4,281,260.589 | | | | 86.380% | |
Withhold | | | 70,641.390 | | | | 1.425% | |
| | | | | | | | |
Total | | | 4,351,901.979 | | | | 87.805% | |
4d. Jonathan P. Carroll
Votes in favor represented 78.428% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 3,413,120.589 | | | | 68.864% | |
Withhold | | | 938,781.390 | | | | 18.941% | |
| | | | | | | | |
Total | | | 4,351,901.979 | | | | 87.805% | |
4e. Dr. Bernard A. Harris
Votes in favor represented 98.489% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 4,286,130.589 | | | | 86.479% | |
Withhold | | | 65,771.390 | | | | 1.327% | |
| | | | | | | | |
Total | | | 4,351,901.979 | | | | 87.806% | |
4f. Richard C. Johnson
Votes in favor represented 98.295% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 4,277,698.630 | | | | 86.309% | |
Withhold | | | 74,203.349 | | | | 1.497% | |
| | | | | | | | |
Total | | | 4,351,901.979 | | | | 87.806% | |
4g. Scott E. Schwinger
Votes in favor represented 98.385% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 4,281,616.589 | | | | 86.388% | |
Withhold | | | 70,285.390 | | | | 1.418% | |
| | | | | | | | |
Total | | | 4,351,901.979 | | | | 87.806% | |
Shareholder Voting Results (Unaudited)
4h. John A. Blaisdell
Votes in favor represented 98.489% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 4,286,130.589 | | | | 86.479% | |
Withhold | | | 65,771.390 | | | | 1.327% | |
| | | | | | | | |
Total | | | 4,351,901.979 | | | | 87.806% | |
Forward Real Estate Fund
Proposal 1. To approve a new investment advisory agreement between the Fund and Forward Management, the Fund’s current investment advisor, as a result of the Transaction:
Votes in favor represented 60.077% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 1,669,299.556 | | | | 53.442% | |
Against | | | 12,365.053 | | | | 0.396% | |
Abstain | | | 14,398.860 | | | | 0.461% | |
Broker Non-Vote | | | 1,082,530.000 | | | | 34.657% | |
| | | | | | | | |
Total | | | 2,778,593.469 | | | | 88.956% | |
Proposal 4. To elect eight Trustees to serve until their successors are elected and qualified, provided that the election of nominees 4c through 4h as Trustees is contingent upon and will not be effective until the closing of the Transaction:
4a. Julie Allecta
Votes in favor represented 98.878% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 2,747,430.975 | | | | 87.958% | |
Withhold | | | 31,162.494 | | | | 0.998% | |
| | | | | | | | |
Total | | | 2,778,593.469 | | | | 88.956% | |
4b. A. John Gambs
Votes in favor represented 98.880% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 2,747,473.975 | | | | 87.959% | |
Withhold | | | 31,119.494 | | | | 0.996% | |
| | | | | | | | |
Total | | | 2,778,593.469 | | | | 88.955% | |
Shareholder Voting Results (Unaudited)
4c. Karin B. Bonding
Votes in favor represented 98.951% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 2,749,458.975 | | | | 88.023% | |
Withhold | | | 29,134.494 | | | | 0.933% | |
| | | | | | | | |
Total | | | 2,778,593.469 | | | | 88.956% | |
4d. Jonathan P. Carroll
Votes in favor represented 97.891% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 2,719,992.975 | | | | 87.080% | |
Withhold | | | 58,600.494 | | | | 1.876% | |
| | | | | | | | |
Total | | | 2,778,593.469 | | | | 88.956% | |
4e. Dr. Bernard A. Harris
Votes in favor represented 98.869% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 2,747,159.975 | | | | 87.949% | |
Withhold | | | 31,433.494 | | | | 1.006% | |
| | | | | | | | |
Total | | | 2,778,593.469 | | | | 88.955% | |
4f. Richard C. Johnson
Votes in favor represented 98.926% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 2,748,741.975 | | | | 88.000% | |
Withhold | | | 29,851.494 | | | | 0.956% | |
| | | | | | | | |
Total | | | 2,778,593.469 | | | | 88.956% | |
4g. Scott E. Schwinger
Votes in favor represented 99.004% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 2,750,926.975 | | | | 88.070% | |
Withhold | | | 27,666.494 | | | | 0.886% | |
| | | | | | | | |
Total | | | 2,778,593.469 | | | | 88.956% | |
Shareholder Voting Results (Unaudited)
4h. John A. Blaisdell
Votes in favor represented 99.001% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 2,750,823.975 | | | | 88.067% | |
Withhold | | | 27,769.494 | | | | 0.889% | |
| | | | | | | | |
Total | | | 2,778,593.469 | | | | 88.956% | |
Forward Real Estate Long/Short Fund
Proposal 1. To approve a new investment advisory agreement between the Fund and Forward Management, the Fund’s current investment advisor, as a result of the Transaction:
Votes in favor represented 71.204% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 860,398.716 | | | | 40.625% | |
Against | | | 8,915.256 | | | | 0.421% | |
Abstain | | | 23,222.316 | | | | 1.096% | |
Broker Non-Vote | | | 315,822.000 | | | | 14.912% | |
| | | | | | | | |
Total | | | 1,208,358.288 | | | | 57.054% | |
Proposal 4. To elect eight Trustees to serve until their successors are elected and qualified, provided that the election of nominees 4c through 4h as Trustees is contingent upon and will not be effective until the closing of the Transaction:
4a. Julie Allecta
Votes in favor represented 97.034% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 1,172,520.460 | | | | 55.362% | |
Withhold | | | 35,837.828 | | | | 1.692% | |
| | | | | | | | |
Total | | | 1,208,358.288 | | | | 57.054% | |
4b. A. John Gambs
Votes in favor represented 96.417% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 1,165,061.617 | | | | 55.010% | |
Withhold | | | 43,296.671 | | | | 2.044% | |
| | | | | | | | |
Total | | | 1,208,358.288 | | | | 57.054% | |
Shareholder Voting Results (Unaudited)
4c. Karin B. Bonding
Votes in favor represented 96.547% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 1,166,636.827 | | | | 55.084% | |
Withhold | | | 41,721.461 | | | | 1.970% | |
| | | | | | | | |
Total | | | 1,208,358.288 | | | | 57.054% | |
4d. Jonathan P. Carroll
Votes in favor represented 90.667% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 1,095,584.303 | | | | 51.729% | |
Withhold | | | 112,773.985 | | | | 5.325% | |
| | | | | | | | |
Total | | | 1,208,358.288 | | | | 57.054% | |
4e. Dr. Bernard A. Harris
Votes in favor represented 96.375% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 1,164,554.220 | | | | 54.986% | |
Withhold | | | 43,804.068 | | | | 2.068% | |
| | | | | | | | |
Total | | | 1,208,358.288 | | | | 57.054% | |
4f. Richard C. Johnson
Votes in favor represented 97.031% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 1,172,487.324 | | | | 55.360% | |
Withhold | | | 35,870.964 | | | | 1.694% | |
| | | | | | | | |
Total | | | 1,208,358.288 | | | | 57.054% | |
4g. Scott E. Schwinger
Votes in favor represented 97.083% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 1,173,114.910 | | | | 55.390% | |
Withhold | | | 35,243.378 | | | | 1.664% | |
| | | | | | | | |
Total | | | 1,208,358.288 | | | | 57.054% | |
Shareholder Voting Results (Unaudited)
4h. John A. Blaisdell
Votes in favor represented 97.085% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 1,173,136.360 | | | | 55.391% | |
Withhold | | | 35,221.928 | | | | 1.663% | |
| | | | | | | | |
Total | | | 1,208,358.288 | | | | 57.054% | |
Forward Select Income Fund
Proposal 4. To elect eight Trustees to serve until their successors are elected and qualified, provided that the election of nominees 4c through 4h as Trustees is contingent upon and will not be effective until the closing of the Transaction:
4a. Julie Allecta
Votes in favor represented 97.777% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 49,390,359.383 | | | | 67.625% | |
Withhold | | | 1,123,076.106 | | | | 1.538% | |
| | | | | | | | |
Total | | | 50,513,435.489 | | | | 69.163% | |
4b. A. John Gambs
Votes in favor represented 97.668% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 49,335,431.556 | | | | 67.550% | |
Withhold | | | 1,178,003.933 | | | | 1.613% | |
| | | | | | | | |
Total | | | 50,513,435.489 | | | | 69.163% | |
4c. Karin B. Bonding
Votes in favor represented 97.719% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 49,360,983.122 | | | | 67.585% | |
Withhold | | | 1,152,452.367 | | | | 1.578% | |
| | | | | | | | |
Total | | | 50,513,435.489 | | | | 69.163% | |
4d. Jonathan P. Carroll
Votes in favor represented 93.694% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 47,328,065.679 | | | | 64.802% | |
Withhold | | | 3,185,369.810 | | | | 4.361% | |
| | | | | | | | |
Total | | | 50,513,435.489 | | | | 69.163% | |
Shareholder Voting Results (Unaudited)
4e. Dr. Bernard A. Harris
Votes in favor represented 97.690% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 49,346,446.688 | | | | 67.565% | |
Withhold | | | 1,166,988.801 | | | | 1.598% | |
| | | | | | | | |
Total | | | 50,513,435.489 | | | | 69.163% | |
4f. Richard C. Johnson
Votes in favor represented 97.657% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 49,329,681.801 | | | | 67.542% | |
Withhold | | | 1,183,753.688 | | | | 1.621% | |
| | | | | | | | |
Total | | | 50,513,435.489 | | | | 69.163% | |
4g. Scott E. Schwinger
Votes in favor represented 97.716% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 49,359,707.296 | | | | 67.583% | |
Withhold | | | 1,153,728.193 | | | | 1.580% | |
| | | | | | | | |
Total | | | 50,513,435.489 | | | | 69.163% | |
4h. John A. Blaisdell
Votes in favor represented 97.738% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 49,370,616.019 | | | | 67.598% | |
Withhold | | | 1,142,819.470 | | | | 1.565% | |
| | | | | | | | |
Total | | | 50,513,435.489 | | | | 69.163% | |
Forward Select Opportunity Fund
Proposal 1. To approve a new investment advisory agreement between the Fund and Forward Management, the Fund’s current investment advisor, as a result of the Transaction:
Votes in favor represented 62.698% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 517,702.515 | | | | 56.757% | |
Against | | | 2,003.000 | | | | 0.220% | |
Abstain | | | 3,140.848 | | | | 0.344% | |
Broker Non-Vote | | | 302,857.000 | | | | 33.203% | |
| | | | | | | | |
Total | | | 825,703.363 | | | | 90.524% | |
Shareholder Voting Results (Unaudited)
Proposal 4. To elect eight Trustees to serve until their successors are elected and qualified, provided that the election of nominees 4c through 4h as Trustees is contingent upon and will not be effective until the closing of the Transaction:
4a. Julie Allecta
Votes in favor represented 99.493% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 821,518.515 | | | | 90.064% | |
Withhold | | | 4,184.848 | | | | 0.459% | |
| | | | | | | | |
Total | | | 825,703.363 | | | | 90.523% | |
4b. A. John Gambs
Votes in favor represented 99.493% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 821,518.515 | | | | 90.064% | |
Withhold | | | 4,184.848 | | | | 0.459% | |
| | | | | | | | |
Total | | | 825,703.363 | | | | 90.523% | |
4c. Karin B. Bonding
Votes in favor represented 99.444% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 821,109.438 | | | | 90.020% | |
Withhold | | | 4,593.925 | | | | 0.504% | |
| | | | | | | | |
Total | | | 825,703.363 | | | | 90.524% | |
4d. Jonathan P. Carroll
Votes in favor represented 99.444% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 821,109.438 | | | | 90.020% | |
Withhold | | | 4,593.925 | | | | 0.504% | |
| | | | | | | | |
Total | | | 825,703.363 | | | | 90.524% | |
4e. Dr. Bernard A. Harris
Votes in favor represented 99.444% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 821,109.438 | | | | 90.020% | |
Withhold | | | 4,593.925 | | | | 0.504% | |
| | | | | | | | |
Total | | | 825,703.363 | | | | 90.524% | |
Shareholder Voting Results (Unaudited)
4f. Richard C. Johnson
Votes in favor represented 99.444% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 821,109.438 | | | | 90.020% | |
Withhold | | | 4,593.925 | | | | 0.504% | |
| | | | | | | | |
Total | | | 825,703.363 | | | | 90.524% | |
4g. Scott E. Schwinger
Votes in favor represented 99.444% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 821,109.438 | | | | 90.020% | |
Withhold | | | 4,593.925 | | | | 0.504% | |
| | | | | | | | |
Total | | | 825,703.363 | | | | 90.524% | |
4h. John A. Blaisdell
Votes in favor represented 99.444% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 821,109.438 | | | | 90.020% | |
Withhold | | | 4,593.925 | | | | 0.504% | |
| | | | | | | | |
Total | | | 825,703.363 | | | | 90.524% | |
At the May 29, 2015 Meeting, shareholders of the Forward Select Income Fund approved following proposals:
Forward Select Income Fund
Proposal 1. To approve a new investment advisory agreement between the Fund and Forward Management, the Fund’s current investment advisor, as a result of the Transaction:
Votes in favor represented 77.043% of total votes.
| | | | | | | | |
| | | Number of
Shares Voted | | | Percentage of
Shares Voted | |
For | | | 37,185,575.246 | | | | 50.915% | |
Against | | | 622,894.998 | | | | 0.853% | |
Abstain | | | 1,036,442.667 | | | | 1.419% | |
Broker Non-Vote | | | 9,421,037.000 | | | | 12.899% | |
| | | | | | | | |
Total | | | 48,265,949.911 | | | | 66.086% | |
Investment Advisor
Forward Management, LLC
Administrator
ALPS Fund Services, Inc.
Distributor
Forward Securities, LLC
Counsel
Dechert LLP
Independent Registered Public Accounting Firm
KPMG 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 Dynamic Income Fund
Forward EM Corporate Debt Fund
Forward Emerging Markets Fund
Forward Frontier Strategy 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 Real Estate Fund
Forward Real Estate Long/Short Fund
Forward Select EM Dividend Fund
Forward Select Income Fund
Forward Select Opportunity 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. | | | FSD001700 083116 | |
Item 2. Code of Ethics.
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.
Item 6. Investments.
| | (a) | The registrant’s 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 Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a 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.
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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. |
Item 12. Exhibits.
| | |
| |
| (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. |
| |
| (a)(3) | | Not applicable. |
| |
| (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. |
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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/ John A. Blaisdell |
| | John A. Blaisdell |
| | President |
| |
| Date: | | September 3, 2015 |
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/ John A. Blaisdell |
| | John A. Blaisdell |
| | President |
| |
| Date: | | September 3, 2015 |
| | |
| By: | | /s/ Barbara Tolle |
| | Barbara Tolle |
| | Treasurer |
| |
| Date: | | September 3, 2015 |
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