0001193125-12-451151.txt : 20121105 0001193125-12-451151.hdr.sgml : 20121105 20121105124900 ACCESSION NUMBER: 0001193125-12-451151 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 7 FILED AS OF DATE: 20121105 DATE AS OF CHANGE: 20121105 EFFECTIVENESS DATE: 20121105 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Forward Funds CENTRAL INDEX KEY: 0000889188 IRS NUMBER: 232696899 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 033-48940 FILM NUMBER: 121179284 BUSINESS ADDRESS: STREET 1: 101 CALIFORNIA STREET STREET 2: SUITE 1600 CITY: SAN FRANCISCO STATE: CA ZIP: 94111 BUSINESS PHONE: 800-232-0224 MAIL ADDRESS: STREET 1: 101 CALIFORNIA STREET STREET 2: SUITE 1600 CITY: SAN FRANCISCO STATE: CA ZIP: 94111 FORMER COMPANY: FORMER CONFORMED NAME: HOMESTATE GROUP DATE OF NAME CHANGE: 19920929 0000889188 S000030890 Forward Tactical Enhanced Fund C000095850 Class A FTEAX C000095851 Class C FTEGX C000095852 Class M FTENX C000095853 Investor Class FTEEX C000095854 Institutional Class FTETX 497 1 d427013d497.htm FORM 497 XBRL Form 497 XBRL

Forward Funds

101 California Street, 16th Floor

San Francisco, California 94111

November 5, 2012

Securities and Exchange Commission

Division of Investment Management

100 F Street, N.E.

Washington, D.C. 20549-1520

 

RE:    Forward Funds (“Registrant”)
   File Nos:    033-48940
      811-06722

On behalf of the Registrant and pursuant to Rule 497(c) under the Securities Act of 1933, as amended, attached for filing are exhibits containing interactive data format risk/return summary information that mirrors the risk/return summary information in a supplement, dated October 19, 2012, to the Prospectuses dated May 1, 2012, for Investor Class, Institutional Class, Class A, Class C and Class M shares of the Forward Tactical Enhanced Fund (the “Fund”). The purpose of the filing is to submit the 497(c) filing dated October 19, 2012 in XBRL for the Fund.

If you have any questions regarding this filing, please contact Erin Douglas, Vice President and Sr. Associate Counsel with the Registrant’s service provider, ALPS Fund Services, Inc., at (720) 917-0602.

Sincerely,

 

/s/ Rob Naka

Rob Naka
Secretary
EX-101.INS 2 ff4-20121019.xml XBRL INSTANCE DOCUMENT 0000889188 ff4:S000030890Member ff4:LoadMember ff4:C000095850Member 2011-05-02 2012-05-01 0000889188 ff4:S000030890Member ff4:LoadMember ff4:C000095851Member 2011-05-02 2012-05-01 0000889188 ff4:S000030890Member ff4:LoadMember ff4:C000095852Member 2011-05-02 2012-05-01 0000889188 ff4:S000030890Member ff4:NoLoadMember 2011-05-02 2012-05-01 0000889188 ff4:S000030890Member ff4:LoadMember 2011-05-02 2012-05-01 0000889188 ff4:S000030890Member ff4:NoLoadMember ff4:C000095853Member 2011-05-02 2012-05-01 0000889188 ff4:S000030890Member ff4:NoLoadMember ff4:C000095854Member 2011-05-02 2012-05-01 0000889188 2011-05-02 2012-05-01 pure iso4217:USD 1784 1505 1784 1029 <font style="font-family:arial" size="2"><b>Examples</b></font> <font style="font-family:arial" size="2"><b>Examples</b></font> 0.0015 0.0005 0.002 0.0025 1029 1505 1207 1029 Forward Funds 0.0005 -0.0008 -0.0008 798 382 187 222 187 3163 3185 2234 <font style="font-family:arial" size="2"><b>Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)</font> <font style="font-family:arial" size="2"><b>Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)</font> <font style="font-family:arial" size="2">These Examples are intended to help you compare the costs of investing in Investor Class or Institutional Class shares of the Fund with the costs of investing in other mutual funds. The Examples assume that you invest $10,000 in the noted class of shares for the time periods indicated. The Examples also assume that your investment has a 5% return each year, that the Fund's total annual operating expenses remain the same, and that the contractual fee waiver/reimbursement is in place for the first year. Although actual costs may be higher or lower, based on these assumptions your costs whether or not you redeemed your shares would be: </font> <font style="font-family:arial" size="2">These Examples are intended to help you compare the costs of investing in Class A, Class C or Class M shares of the Fund with the costs of investing in other mutual funds. The Examples assume that you invest $10,000 in the noted class of shares for the time periods indicated and then redeem all your shares at the end of those periods. The Examples also assume that your investment has a 5% return each year, that the Fund's total annual operating expenses remain the same, and that the contractual fee waiver/reimbursement is in place for the first year. Although actual costs may be higher or lower, based on these assumptions your costs would be:</font> 0000889188 Other 2011-12-31 2012-10-19 false 0.0227 0.0192 0.0242 0.0287 0.0192 -0.0008 -0.0008 -0.0008 1279 881 595 701 595 798 282 187 1279 881 <font style="font-family:arial" size="2"><i>April 30, 2013</i></font> <font style="font-family:arial" size="2"><i>April 30, 2013</i></font> <font style="font-family:arial" size="2"><i>Restated to reflect current fees.</i></font> <font style="font-family:arial" size="2"><i>Restated to reflect current fees.</i></font> <font style="font-family:arial" size="2">You would pay the following expenses if you did not redeem your shares:</font> <font style="font-family:arial" size="2"><b>Principal Investment Strategies</font> <font style="font-family:arial" size="2">The Fund invests primarily in a diversified portfolio of instruments providing exposure, both long and short, to the U.S. and non-U.S. equity markets, including exchange-traded funds ("ETFs"), futures and options on securities, securities indices and shares of ETFs. The Fund may seek exposure to equity securities of issuers in all market capitalization ranges, including small capitalization companies, without limitation.<br/><br/>Under certain market conditions, the Fund may hold a substantial portion of its assets in cash, cash equivalents, and/or in fixed income securities that are investment grade quality and have maturities of less than three years ("Fixed Income Securities"). The Fund's Fixed Income Securities may include investments in the Forward Floating NAV Short Duration Fund or other Forward Funds.<br/><br/>The Fund's investment strategy seeks to identify potential long and short investments for the Fund through quantitative analysis of factors including market breadth, market price movements, market trends and market volatility. The Fund is expected to have significant investments in Fixed Income Securities when attractive long or short investment opportunities are not available. The Advisor adjusts the mix of the Fund's long, short and Fixed Income Securities investments based on its analysis of market conditions and at times the Fund's investment positions may be primarily long, short or in Fixed Income Securities. The Fund may employ leveraged investment techniques to increase the Fund's exposure to specific investment opportunities. Generally, the Fund will maintain net investment exposure between 100% net long and 100% net short, although the Fund may have investment exposure up to 200% net long.</font> <font style="font-family:arial" size="2">The Fund invests primarily in a diversified portfolio of instruments providing exposure, both long and short, to the U.S. and non-U.S. equity markets, including exchange-traded funds ("ETFs"), futures and options on securities, securities indices and shares of ETFs. The Fund may seek exposure to equity securities of issuers in all market capitalization ranges, including small capitalization companies, without limitation.<br/><br/>Under certain market conditions, the Fund may hold a substantial portion of its assets in cash, cash equivalents, and/or in fixed income securities that are investment grade quality and have maturities of less than three years ("Fixed Income Securities"). The Fund's Fixed Income Securities may include investments in the Forward Floating NAV Short Duration Fund or other Forward Funds.<br/><br/>The Fund's investment strategy seeks to identify potential long and short investments for the Fund through quantitative analysis of factors including market breadth, market price movements, market trends and market volatility. The Fund is expected to have significant investments in Fixed Income Securities when attractive long or short investment opportunities are not available. The Advisor adjusts the mix of the Fund's long, short and Fixed Income Securities investments based on its analysis of market conditions and at times the Fund's investment positions may be primarily long, short or in Fixed Income Securities. The Fund may employ leveraged investment techniques to increase the Fund's exposure to specific investment opportunities. Generally, the Fund will maintain net investment exposure between 100% net long and 100% net short, although the Fund may have investment exposure up to 200% net long.</font> <font style="font-family:arial" size="2"><b>Principal Investment Strategies</font> 2012-05-01 2012-10-19 <p style="margin-top:0px;margin-bottom:0px" align="center"><font style="font-family:arial" size="5"><b>FORWARD FUNDS </b></font></p><hr/><p style="line-height:4px;margin-top:0px;margin-bottom:2px;border-bottom:0.5pt solid #000000">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px" align="center"><font style="font-family:arial" size="2"><b>Supplement dated October&nbsp;19, 2012 </b></font></p> <p style="margin-top:0px;margin-bottom:0px" align="center"><font style="font-family:arial" size="2"><b>to the </b></font></p> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px" align="center"><font style="font-family:arial" size="2"><i>Forward Funds Investor Class and Institutional Class Prospectus (the &#147;No-Load Prospectus&#148;) and </i></font></p> <p style="margin-top:0px;margin-bottom:0px" align="center"><font style="font-family:arial" size="2"><i>Forward Funds Class&nbsp;A, Class B, Class C and Class M Prospectus (the &#147;Load Prospectus&#148;) </i></font></p> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px" align="center"><font style="font-family:arial" size="2"><b>each dated May&nbsp;1, 2012, as supplemented </b></font></p> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px"><font style="font-family:arial" size="2"><b>The following information applies to the Forward Tactical Enhanced Fund (the &#147;Fund&#148;) only: </b></font></p> <p style="margin-top:0px;margin-bottom:0px"><font style="font-family:arial" size="2">At a meeting of the Board of Trustees of Forward Funds (the &#147;Trust&#148;) held on October&nbsp;11, 2012, the Trustees, including all of the Trustees who are not &#147;interested persons&#148; of the Trust (as that term is defined in the Investment Company Act of 1940, as amended), approved, on behalf of the Fund effective November&nbsp;1, 2012: (i)&nbsp;changes to the principal investment strategies and principal risks of the Fund; (ii)&nbsp;the termination of the Investment Sub-Advisory Agreement among Forward Management, LLC, the investment advisor (&#147;Forward Management&#148;), the Trust and Broadmark Asset Management, LLC (&#147;Broadmark&#148;); (iii)&nbsp;changes to the advisory arrangement of the Fund; and (iv)&nbsp;a reduction in the management fee and expense limits for the Fund. </font></p> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px"><font style="font-family:arial" size="2"><b>Changes to Principal Investment Strategies </b></font></p> <p style="margin-top:0px;margin-bottom:0px"><font style="font-family:arial" size="2">Effective November&nbsp;1, 2012, the section titled &#147;Principal Investment Strategies&#148; on page 96 of the No-Load Prospectus and page 100 of the Load Prospectus shall be replaced in its entirety to read as follows: </font></p> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%"><font style="font-family:arial" size="2"><b>Principal Investment Strategies </b></font></p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%"><font style="font-family:arial" size="2">The Fund invests primarily in a diversified portfolio of instruments providing exposure, both long and short, to the U.S. and non-U.S. equity markets, including exchange-traded funds (&#147;ETFs&#148;), futures and options on securities, securities indices and shares of ETFs. The Fund may seek exposure to equity securities of issuers in all market capitalization ranges, including small capitalization companies, without limitation. </font></p> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%"><font style="font-family:arial" size="2">Under certain market conditions, the Fund may hold a substantial portion of its assets in cash, cash equivalents, and/or in fixed income securities that are investment grade quality and have maturities of less than three years (&#147;Fixed Income Securities&#148;). The Fund&#146;s Fixed Income Securities may include investments in the Forward Floating NAV Short Duration Fund or other Forward Funds. </font></p> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%"><font style="font-family:arial" size="2">The Fund&#146;s investment strategy seeks to identify potential long and short investments for the Fund through quantitative analysis of factors including market breadth, market price movements, market trends and market volatility. The Fund is expected to have significant investments in Fixed Income Securities when attractive long or short investment opportunities are not available. The Advisor adjusts the mix of the Fund&#146;s long, short and Fixed Income Securities investments based on its analysis of market conditions and at times the Fund&#146;s investment positions may be primarily long, short or in Fixed Income Securities. The Fund may employ leveraged investment techniques to increase the Fund&#146;s exposure to specific investment opportunities. Generally, the Fund will maintain net investment exposure between 100% net long and 100% net short, although the Fund may have investment exposure up to 200% net long. </font></p> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px" align="center"><font style="font-family:arial" size="2">**** </font></p><p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: arial" size="2">Effective November&nbsp;1, 2012, the following paragraph is added following the first paragraph under the heading "Performance Information" in the Fund's "Fund Summary" section in the No-Load Prospectus and Load Prospectus: </font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font size="1">&nbsp;</font></p> <p style="MARGIN: 0px 4%"><font style="FONT-FAMILY: arial" size="2">On November&nbsp;1, 2012, Forward Management assumed all responsibilities for selecting the Fund's investments and incorporated new principal investment strategies for the Fund as discussed above under "Principal Investment Strategies." Performance figures shown below for periods before November&nbsp;1, 2012 represent performance of the prior sub-advisor to the Fund under the previous investment strategies for the Fund.</font></p><p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p><p style="margin-top:0px;margin-bottom:0px"><font style="font-family:arial" size="2">Accordingly, effective November&nbsp;1, 2012, the following changes are made: </font></p> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px"><font style="font-family:arial" size="2">The &#147;Annual Fund Operating Expenses&#148; table and the &#147;Examples&#148; table for the Fund on page 96 of the No-Load Prospectus are replaced to read as follows: </font></p> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%;padding-bottom:0px;"><font style="font-family:arial" size="2"><b>Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)<font style="font-family:arial" size="1"><sup style="vertical-align:baseline; position:relative; bottom:.8ex">(</sup></font><font style="font-family:arial" size="2"></font><font style="font-family:arial" size="1"><sup style="vertical-align:baseline; position:relative; bottom:.8ex">1)</sup></font><font style="font-family:arial" size="2"> </font></b></font></p> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <table cellspacing="0" cellpadding="0" width="92%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="76%"></td> <td width="4%"></td> <td></td> <td></td> <td width="5%"></td> <td width="9%"></td> <td></td> <td></td> <td></td></tr> <tr> <td ><font size="1">&nbsp;</font></td> <td ><font size="1">&nbsp;&nbsp;</font></td> <td colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="1"><b>Investor<br/>Class</b></font></td> <td ><font size="1">&nbsp;</font></td> <td ><font size="1">&nbsp;&nbsp;</font></td> <td colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="1"><b>Institutional<br/>Class</b></font></td> <td ><font size="1">&nbsp;</font></td></tr> <tr bgcolor="#cceeff"> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">Management Fee</font><font style="font-family:arial" size="1"><sup style="vertical-align:baseline; position:relative; bottom:.8ex">(1)</sup></font><font style="font-family:arial" size="2"></font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">1.15</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">1.15</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td></tr> <tr> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">Distribution (12b-1) Fees</font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">0.25</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">N/A</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td></tr> <tr bgcolor="#cceeff"> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">Shareholder Services Fees</font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">0.15</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">0.05</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td></tr> <tr> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">Other Expenses</font><font style="font-family:arial" size="1"><sup style="vertical-align:baseline; position:relative; bottom:.8ex">(1)</sup></font><font style="font-family:arial" size="2"></font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">0.37</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">0.37</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td></tr> <tr bgcolor="#cceeff"> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">Acquired Fund Fees and Expenses</font><font style="font-family:arial" size="1"><sup style="vertical-align:baseline; position:relative; bottom:.8ex">(1)</sup></font><font style="font-family:arial" size="2"></font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">0.35</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">0.35</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td></tr> <tr> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2"><b>Total Annual Fund Operating Expenses</b></font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>&nbsp;</b></font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2"><b>2.27</b></font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>%&nbsp;</b></font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>&nbsp;</b></font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2"><b>1.92</b></font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>%&nbsp;</b></font></td></tr> <tr bgcolor="#cceeff"> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">Fee Waiver and/or Expense Reimbursement</font><font style="font-family:arial" size="1"><sup style="vertical-align:baseline; position:relative; bottom:.8ex">(2)</sup></font><font style="font-family:arial" size="2"></font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">&#150;0.08</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">&#150;0.08</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td></tr> <tr> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2"><b>Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement</b></font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>&nbsp;</b></font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2"><b>2.19</b></font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>%&nbsp;</b></font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>&nbsp;</b></font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2"><b>1.84</b></font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>%&nbsp;</b></font></td></tr> </table> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <table border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: collapse; "><tr><td width="5%"><font size="1">&nbsp;</font></td><td width="3%" valign="top" align="left"><font size="2" style="font-family: arial; "><i>(1)</i></font></td><td width="1%" valign="top"><font size="1">&nbsp;</font></td><td align="left" valign="top"><font size="2" style="font-family: arial; "><i>Restated to reflect current fees.</i></font></td><td width="4%"><font size="1">&nbsp;</font></td></tr></table><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: -6px; "><font size="1">&nbsp;</font></p><table border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: collapse; "><tr><td width="5%"><font size="1">&nbsp;</font></td><td width="3%" valign="top" align="left"><font size="2" style="font-family: arial; "><i>(2)</i></font></td><td width="1%" valign="top"><font size="1">&nbsp;</font></td><td align="left" valign="top"><font size="2" style="font-family: arial; "><i>The Fund&#146;s investment advisor is contractually obligated to waive a portion of its fees and reimburse other expenses until April&nbsp;30, 2013, in amounts necessary to limit the Fund&#146;s operating expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired funds fees and expenses, and extraordinary expenses) for Investor Class and Institutional Class shares to an annual rate (as a percentage of the Fund&#146;s average daily net assets) of 1.84% and 1.49%, respectively. This expense limitation arrangement may not be terminated by the Fund&#146;s investment advisor prior to such date under any circumstances.</i></font></td><td width="4%"><font size="1">&nbsp;</font></td></tr></table><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: -6px; "><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%"><font style="font-family:arial" size="2"><b>Examples </b></font></p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%"><font style="font-family:arial" size="2">These Examples are intended to help you compare the costs of investing in Investor Class or Institutional Class shares of the Fund with the costs of investing in other mutual funds. The Examples assume that you invest $10,000 in the noted class of shares for the time periods indicated. The Examples also assume that your investment has a 5% return each year, that the Fund&#146;s total annual operating expenses remain the same, and that the contractual fee waiver/reimbursement is in place for the first year. Although actual costs may be higher or lower, based on these assumptions your costs whether or not you redeemed your shares would be: </font></p> <p style="margin-top:0px;margin-bottom:0px">&nbsp;</p> <table cellspacing="0" cellpadding="0" width="92%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="84%"></td> <td width="4%"></td> <td></td> <td></td> <td width="1%"></td> <td width="5%"></td> <td></td> <td></td> <td></td></tr> <tr> <td ><font size="1">&nbsp;</font></td> <td ><font size="1">&nbsp;&nbsp;</font></td> <td colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="1"><b>Investor<br/>Class</b></font></td> <td ><font size="1">&nbsp;</font></td> <td ><font size="1">&nbsp;&nbsp;</font></td> <td colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="1"><b>Institutional<br/>Class</b></font></td> <td ><font size="1">&nbsp;</font></td></tr> <tr bgcolor="#cceeff"> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">1 Year</font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">222</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">187</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td></tr> <tr> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">3 Years</font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">701</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">595</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td></tr> <tr bgcolor="#cceeff"> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">5 Years</font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">1,207</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">1,029</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td></tr> <tr> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">10 Years</font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">2,595</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">2,234</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td></tr> </table> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px" align="center"><font style="font-family:arial" size="2">**** </font></p> <p style="margin-top:0px;margin-bottom:0px"><font style="font-family:arial" size="2">The &#147;Annual Fund Operating Expenses&#148; table and the &#147;Examples&#148; table for the Fund on page 100 of the Load Prospectus are replaced to read as follows: </font></p> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%;padding-bottom:0px;"><font style="font-family:arial" size="2"><b>Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)<font style="font-family:arial" size="1"><sup style="vertical-align:baseline; position:relative; bottom:.8ex">(</sup></font><font style="font-family:arial" size="2"></font><font style="font-family:arial" size="1"><sup style="vertical-align:baseline; position:relative; bottom:.8ex">1)</sup></font> <font style="font-family:arial" size="2"> </font></b></font></p> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <table cellspacing="0" cellpadding="0" width="92%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="70%"></td> <td width="3%"></td> <td></td> <td></td> <td width="4%"></td> <td width="3%"></td> <td></td> <td></td> <td width="4%"></td> <td width="3%"></td> <td></td> <td></td> <td width="4%"></td></tr> <tr> <td ><font size="1">&nbsp;</font></td> <td ><font size="1">&nbsp;&nbsp;</font></td> <td colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="1"><b>Class&nbsp;A</b></font></td> <td ><font size="1">&nbsp;</font></td> <td ><font size="1">&nbsp;&nbsp;</font></td> <td colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="1"><b>Class&nbsp;C</b></font></td> <td ><font size="1">&nbsp;</font></td> <td ><font size="1">&nbsp;&nbsp;</font></td> <td colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="1"><b>Class&nbsp;M</b></font></td> <td ><font size="1">&nbsp;</font></td></tr> <tr bgcolor="#cceeff"> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">Management Fee</font><font style="font-family:arial" size="1"><sup style="vertical-align:baseline; position:relative; bottom:.8ex">(1)</sup></font><font style="font-family:arial" size="2"></font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">1.15</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">1.15</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">1.15</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td></tr> <tr> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">Distribution (12b-1) Fees</font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">0.35</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">0.75</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">N/A</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td></tr> <tr bgcolor="#cceeff"> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">Shareholder Services Fees</font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">0.20</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">0.25</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">0.05</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td></tr> <tr> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">Other Expenses</font><font style="font-family:arial" size="1"><sup style="vertical-align:baseline; position:relative; bottom:.8ex">(1)</sup></font><font style="font-family:arial" size="2"></font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">0.37</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">0.37</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">0.37</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td></tr> <tr bgcolor="#cceeff"> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">Acquired Fund Fees and Expenses</font><font style="font-family:arial" size="1"><sup style="vertical-align:baseline; position:relative; bottom:.8ex">(1)</sup></font><font style="font-family:arial" size="2"></font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">0.35</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">0.35</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">0.35</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td></tr> <tr> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2"><b>Total Annual Fund Operating Expenses</b></font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>&nbsp;</b></font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2"><b>2.42</b></font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>%&nbsp;</b></font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>&nbsp;</b></font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2"><b>2.87</b></font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>%&nbsp;</b></font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>&nbsp;</b></font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2"><b>1.92</b></font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>%&nbsp;</b></font></td></tr> <tr bgcolor="#cceeff"> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">Fee Waiver and/or Expense Reimbursement</font><font style="font-family:arial" size="1"><sup style="vertical-align:baseline; position:relative; bottom:.8ex">(2)</sup></font><font style="font-family:arial" size="2"></font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">&#150;0.08</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">&#150;0.08</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">&#150;0.08</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td></tr> <tr> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2"><b>Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement</b></font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>&nbsp;</b></font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2"><b>2.34</b></font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>%&nbsp;</b></font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>&nbsp;</b></font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2"><b>2.79</b></font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>%&nbsp;</b></font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>&nbsp;</b></font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2"><b>1.84</b></font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>%&nbsp;</b></font></td></tr> </table> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <table border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: collapse; "><tr><td width="5%"><font size="1">&nbsp;</font></td><td width="3%" valign="top" align="left"><font size="2" style="font-family: arial; "><i>(1)</i></font></td><td width="1%" valign="top"><font size="1">&nbsp;</font></td><td align="left" valign="top"><font size="2" style="font-family: arial; "><i>Restated to reflect current fees.</i></font></td><td width="4%"><font size="1">&nbsp;</font></td></tr></table><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: -6px; "><font size="1">&nbsp;</font></p><table border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: collapse; "><tr><td width="5%"><font size="1">&nbsp;</font></td><td width="3%" valign="top" align="left"><font size="2" style="font-family: arial; "><i>(2)</i></font></td><td width="1%" valign="top"><font size="1">&nbsp;</font></td><td align="left" valign="top"><font size="2" style="font-family: arial; "><i>The Fund&#146;s investment advisor is contractually obligated to waive a portion of its fees and reimburse other expenses until April&nbsp;30, 2013, in amounts necessary to limit the Fund&#146;s operating expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired funds fees and expenses, and extraordinary expenses) for Class&nbsp;A, Class C and Class M shares to an annual rate (as a percentage of the Fund&#146;s average daily net assets) of 1.99%, 2.44% and 1.49%, respectively. This expense limitation arrangement may not be terminated by the Fund&#146;s investment advisor prior to such date under any circumstances.</i></font></td><td width="4%"><font size="1">&nbsp;</font></td></tr></table><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: -6px; "><font size="1">&nbsp;</font></p><p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%"><font style="font-family:arial" size="2"><b>Examples </b></font></p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%"><font style="font-family:arial" size="2">These Examples are intended to help you compare the costs of investing in Class&nbsp;A, Class C or Class M shares of the Fund with the costs of investing in other mutual funds. The Examples assume that you invest $10,000 in the noted class of shares for the time periods indicated and then redeem all your shares at the end of those periods. The Examples also assume that your investment has a 5% return each year, that the Fund&#146;s total annual operating expenses remain the same, and that the contractual fee waiver/reimbursement is in place for the first year. Although actual costs may be higher or lower, based on these assumptions your costs would be: </font></p> <table cellspacing="0" cellpadding="0" width="92%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="77%"></td> <td width="2%"></td> <td></td> <td></td> <td width="2%"></td> <td width="2%"></td> <td></td> <td></td> <td width="3%"></td> <td width="2%"></td> <td></td> <td></td> <td width="3%"></td></tr> <tr> <td ><font size="1">&nbsp;</font></td> <td ><font size="1">&nbsp;&nbsp;</font></td> <td colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="1"><b>Class&nbsp;A</b></font></td> <td ><font size="1">&nbsp;</font></td> <td ><font size="1">&nbsp;&nbsp;</font></td> <td colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="1"><b>Class&nbsp;C</b></font></td> <td ><font size="1">&nbsp;</font></td> <td ><font size="1">&nbsp;&nbsp;</font></td> <td colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="1"><b>Class&nbsp;M</b></font></td> <td ><font size="1">&nbsp;</font></td></tr> <tr bgcolor="#cceeff"> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">1 Year</font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">798</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">382</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">187</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td></tr> <tr> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">3 Years</font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">1,279</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">881</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">595</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td></tr> <tr bgcolor="#cceeff"> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">5 Years</font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">1,784</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">1,505</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">1,029</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td></tr> <tr> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">10 Years</font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">3,163</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">3,185</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">2,234</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td></tr> </table> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%"><font style="font-family:arial" size="2">You would pay the following expenses if you did not redeem your shares: </font></p> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <table cellspacing="0" cellpadding="0" width="92%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="77%"></td> <td width="2%"></td> <td></td> <td></td> <td width="2%"></td> <td width="2%"></td> <td></td> <td></td> <td width="3%"></td> <td width="2%"></td> <td></td> <td></td> <td width="3%"></td></tr> <tr> <td ><font size="1">&nbsp;</font></td> <td ><font size="1">&nbsp;&nbsp;</font></td> <td colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="1"><b>Class&nbsp;A</b></font></td> <td ><font size="1">&nbsp;</font></td> <td ><font size="1">&nbsp;&nbsp;</font></td> <td colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="1"><b>Class&nbsp;C</b></font></td> <td ><font size="1">&nbsp;</font></td> <td ><font size="1">&nbsp;&nbsp;</font></td> <td colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="1"><b>Class&nbsp;M</b></font></td> <td ><font size="1">&nbsp;</font></td></tr> <tr bgcolor="#cceeff"> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">1 Year</font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">798</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">282</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">187</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td></tr> <tr> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">3 Years</font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">1,279</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">881</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">595</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td></tr> <tr bgcolor="#cceeff"> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">5 Years</font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">1,784</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">1,505</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">1,029</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td></tr> <tr> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">10 Years</font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">3,163</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">3,185</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">2,234</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td></tr> </table> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px" align="center"><font style="font-family:arial" size="5"><b>FORWARD FUNDS </b></font></p><hr/><p style="line-height:4px;margin-top:0px;margin-bottom:2px;border-bottom:0.5pt solid #000000">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px" align="center"><font style="font-family:arial" size="2"><b>Supplement dated October&nbsp;19, 2012 </b></font></p> <p style="margin-top:0px;margin-bottom:0px" align="center"><font style="font-family:arial" size="2"><b>to the </b></font></p> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px" align="center"><font style="font-family:arial" size="2"><i>Forward Funds Investor Class and Institutional Class Prospectus (the &#147;No-Load Prospectus&#148;) and </i></font></p> <p style="margin-top:0px;margin-bottom:0px" align="center"><font style="font-family:arial" size="2"><i>Forward Funds Class&nbsp;A, Class B, Class C and Class M Prospectus (the &#147;Load Prospectus&#148;) </i></font></p> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px" align="center"><font style="font-family:arial" size="2"><b>each dated May&nbsp;1, 2012, as supplemented </b></font></p> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px"><font style="font-family:arial" size="2"><b>The following information applies to the Forward Tactical Enhanced Fund (the &#147;Fund&#148;) only: </b></font></p> <p style="margin-top:0px;margin-bottom:0px"><font style="font-family:arial" size="2">At a meeting of the Board of Trustees of Forward Funds (the &#147;Trust&#148;) held on October&nbsp;11, 2012, the Trustees, including all of the Trustees who are not &#147;interested persons&#148; of the Trust (as that term is defined in the Investment Company Act of 1940, as amended), approved, on behalf of the Fund effective November&nbsp;1, 2012: (i)&nbsp;changes to the principal investment strategies and principal risks of the Fund; (ii)&nbsp;the termination of the Investment Sub-Advisory Agreement among Forward Management, LLC, the investment advisor (&#147;Forward Management&#148;), the Trust and Broadmark Asset Management, LLC (&#147;Broadmark&#148;); (iii)&nbsp;changes to the advisory arrangement of the Fund; and (iv)&nbsp;a reduction in the management fee and expense limits for the Fund. </font></p> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px"><font style="font-family:arial" size="2"><b>Changes to Principal Investment Strategies </b></font></p> <p style="margin-top:0px;margin-bottom:0px"><font style="font-family:arial" size="2">Effective November&nbsp;1, 2012, the section titled &#147;Principal Investment Strategies&#148; on page 96 of the No-Load Prospectus and page 100 of the Load Prospectus shall be replaced in its entirety to read as follows: </font></p> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%"><font style="font-family:arial" size="2"><b>Principal Investment Strategies </b></font></p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%"><font style="font-family:arial" size="2">The Fund invests primarily in a diversified portfolio of instruments providing exposure, both long and short, to the U.S. and non-U.S. equity markets, including exchange-traded funds (&#147;ETFs&#148;), futures and options on securities, securities indices and shares of ETFs. The Fund may seek exposure to equity securities of issuers in all market capitalization ranges, including small capitalization companies, without limitation. </font></p> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%"><font style="font-family:arial" size="2">Under certain market conditions, the Fund may hold a substantial portion of its assets in cash, cash equivalents, and/or in fixed income securities that are investment grade quality and have maturities of less than three years (&#147;Fixed Income Securities&#148;). The Fund&#146;s Fixed Income Securities may include investments in the Forward Floating NAV Short Duration Fund or other Forward Funds. </font></p> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%"><font style="font-family:arial" size="2">The Fund&#146;s investment strategy seeks to identify potential long and short investments for the Fund through quantitative analysis of factors including market breadth, market price movements, market trends and market volatility. The Fund is expected to have significant investments in Fixed Income Securities when attractive long or short investment opportunities are not available. The Advisor adjusts the mix of the Fund&#146;s long, short and Fixed Income Securities investments based on its analysis of market conditions and at times the Fund&#146;s investment positions may be primarily long, short or in Fixed Income Securities. The Fund may employ leveraged investment techniques to increase the Fund&#146;s exposure to specific investment opportunities. Generally, the Fund will maintain net investment exposure between 100% net long and 100% net short, although the Fund may have investment exposure up to 200% net long. </font></p> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px" align="center"><font style="font-family:arial" size="2">**** </font></p><p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: arial" size="2">Effective November&nbsp;1, 2012, the following paragraph is added following the first paragraph under the heading "Performance Information" in the Fund's "Fund Summary" section in the No-Load Prospectus and Load Prospectus: </font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font size="1">&nbsp;</font></p> <p style="MARGIN: 0px 4%"><font style="FONT-FAMILY: arial" size="2">On November&nbsp;1, 2012, Forward Management assumed all responsibilities for selecting the Fund's investments and incorporated new principal investment strategies for the Fund as discussed above under "Principal Investment Strategies." Performance figures shown below for periods before November&nbsp;1, 2012 represent performance of the prior sub-advisor to the Fund under the previous investment strategies for the Fund.</font></p><p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px"><font style="font-family:arial" size="2">Accordingly, effective November&nbsp;1, 2012, the following changes are made: </font></p> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px"><font style="font-family:arial" size="2">The &#147;Annual Fund Operating Expenses&#148; table and the &#147;Examples&#148; table for the Fund on page 96 of the No-Load Prospectus are replaced to read as follows: </font></p> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%;padding-bottom:0px;"><font style="font-family:arial" size="2"><b>Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)<font style="font-family:arial" size="1"><sup style="vertical-align:baseline; position:relative; bottom:.8ex">(</sup></font><font style="font-family:arial" size="2"></font><font style="font-family:arial" size="1"><sup style="vertical-align:baseline; position:relative; bottom:.8ex">1)</sup></font><font style="font-family:arial" size="2"> </font></b></font></p> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <table cellspacing="0" cellpadding="0" width="92%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="76%"></td> <td width="4%"></td> <td></td> <td></td> <td width="5%"></td> <td width="9%"></td> <td></td> <td></td> <td></td></tr> <tr> <td ><font size="1">&nbsp;</font></td> <td ><font size="1">&nbsp;&nbsp;</font></td> <td colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="1"><b>Investor<br/>Class</b></font></td> <td ><font size="1">&nbsp;</font></td> <td ><font size="1">&nbsp;&nbsp;</font></td> <td colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="1"><b>Institutional<br/>Class</b></font></td> <td ><font size="1">&nbsp;</font></td></tr> <tr bgcolor="#cceeff"> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">Management Fee</font><font style="font-family:arial" size="1"><sup style="vertical-align:baseline; position:relative; bottom:.8ex">(1)</sup></font><font style="font-family:arial" size="2"></font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">1.15</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">1.15</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td></tr> <tr> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">Distribution (12b-1) Fees</font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">0.25</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">N/A</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td></tr> <tr bgcolor="#cceeff"> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">Shareholder Services Fees</font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">0.15</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">0.05</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td></tr> <tr> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">Other Expenses</font><font style="font-family:arial" size="1"><sup style="vertical-align:baseline; position:relative; bottom:.8ex">(1)</sup></font><font style="font-family:arial" size="2"></font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">0.37</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">0.37</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td></tr> <tr bgcolor="#cceeff"> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">Acquired Fund Fees and Expenses</font><font style="font-family:arial" size="1"><sup style="vertical-align:baseline; position:relative; bottom:.8ex">(1)</sup></font><font style="font-family:arial" size="2"></font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">0.35</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">0.35</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td></tr> <tr> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2"><b>Total Annual Fund Operating Expenses</b></font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>&nbsp;</b></font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2"><b>2.27</b></font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>%&nbsp;</b></font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>&nbsp;</b></font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2"><b>1.92</b></font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>%&nbsp;</b></font></td></tr> <tr bgcolor="#cceeff"> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">Fee Waiver and/or Expense Reimbursement</font><font style="font-family:arial" size="1"><sup style="vertical-align:baseline; position:relative; bottom:.8ex">(2)</sup></font><font style="font-family:arial" size="2"></font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">&#150;0.08</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">&#150;0.08</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td></tr> <tr> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2"><b>Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement</b></font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>&nbsp;</b></font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2"><b>2.19</b></font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>%&nbsp;</b></font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>&nbsp;</b></font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2"><b>1.84</b></font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>%&nbsp;</b></font></td></tr> </table> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p><table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="5%"></td> <td valign="top" width="3%" align="left"><font style="FONT-FAMILY: arial" size="2"><i>(1)</i></font></td> <td valign="top" width="1%"><font size="1">&nbsp;</font></td> <td valign="top" align="left"><font style="FONT-FAMILY: arial" size="2"><i>Restated to reflect current fees. </i></font></td> <td width="4%"><font size="1">&nbsp;</font></td></tr></table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font size="1">&nbsp;</font></p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="5%"><font size="1">&nbsp;</font></td> <td valign="top" width="3%" align="left"><font style="FONT-FAMILY: arial" size="2"><i>(2)</i></font></td> <td valign="top" width="1%"><font size="1">&nbsp;</font></td> <td valign="top" align="left"><font style="FONT-FAMILY: arial" size="2"><i>The Fund's investment advisor is contractually obligated to waive a portion of its fees and reimburse other expenses until April 30, 2013, in amounts necessary to limit the Fund's operating expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired funds fees and expenses, and extraordinary expenses) for Investor Class and Institutional Class shares to an annual rate (as a percentage of the Fund's average daily net assets) of 1.84% and 1.49%, respectively. This expense limitation arrangement may not be terminated by the Fund's investment advisor prior to such date under any circumstances. </i></font></td> <td width="4%"><font size="1">&nbsp;</font></td></tr></table> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%"><font style="font-family:arial" size="2"><b>Examples </b></font></p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%"><font style="font-family:arial" size="2">These Examples are intended to help you compare the costs of investing in Investor Class or Institutional Class shares of the Fund with the costs of investing in other mutual funds. The Examples assume that you invest $10,000 in the noted class of shares for the time periods indicated. The Examples also assume that your investment has a 5% return each year, that the Fund&#146;s total annual operating expenses remain the same, and that the contractual fee waiver/reimbursement is in place for the first year. Although actual costs may be higher or lower, based on these assumptions your costs whether or not you redeemed your shares would be: </font></p> <p style="margin-top:0px;margin-bottom:0px">&nbsp;</p> <table cellspacing="0" cellpadding="0" width="92%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="84%"></td> <td width="4%"></td> <td></td> <td></td> <td width="1%"></td> <td width="5%"></td> <td></td> <td></td> <td></td></tr> <tr> <td ><font size="1">&nbsp;</font></td> <td ><font size="1">&nbsp;&nbsp;</font></td> <td colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="1"><b>Investor<br/>Class</b></font></td> <td ><font size="1">&nbsp;</font></td> <td ><font size="1">&nbsp;&nbsp;</font></td> <td colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="1"><b>Institutional<br/>Class</b></font></td> <td ><font size="1">&nbsp;</font></td></tr> <tr bgcolor="#cceeff"> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">1 Year</font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">222</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">187</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td></tr> <tr> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">3 Years</font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">701</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">595</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td></tr> <tr bgcolor="#cceeff"> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">5 Years</font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">1,207</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">1,029</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td></tr> <tr> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">10 Years</font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">2,595</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">2,234</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td></tr> </table> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px" align="center"><font style="font-family:arial" size="2">****</font></p> <p style="margin-top:0px;margin-bottom:0px" align="center"><font style="font-family:arial" size="5"><b>FORWARD FUNDS </b></font></p><hr/> <p style="line-height:4px;margin-top:0px;margin-bottom:2px;border-bottom:0.5pt solid #000000">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px" align="center"><font style="font-family:arial" size="2"><b>Supplement dated October&nbsp;19, 2012 </b></font></p> <p style="margin-top:0px;margin-bottom:0px" align="center"><font style="font-family:arial" size="2"><b>to the </b></font></p> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px" align="center"><font style="font-family:arial" size="2"><i>Forward Funds Investor Class and Institutional Class Prospectus (the &#147;No-Load Prospectus&#148;) and </i></font></p> <p style="margin-top:0px;margin-bottom:0px" align="center"><font style="font-family:arial" size="2"><i>Forward Funds Class&nbsp;A, Class B, Class C and Class M Prospectus (the &#147;Load Prospectus&#148;) </i></font></p> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px" align="center"><font style="font-family:arial" size="2"><b>each dated May&nbsp;1, 2012, as supplemented </b></font></p> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px"><font style="font-family:arial" size="2"><b>The following information applies to the Forward Tactical Enhanced Fund (the &#147;Fund&#148;) only: </b></font></p> <p style="margin-top:0px;margin-bottom:0px"><font style="font-family:arial" size="2">At a meeting of the Board of Trustees of Forward Funds (the &#147;Trust&#148;) held on October&nbsp;11, 2012, the Trustees, including all of the Trustees who are not &#147;interested persons&#148; of the Trust (as that term is defined in the Investment Company Act of 1940, as amended), approved, on behalf of the Fund effective November&nbsp;1, 2012: (i)&nbsp;changes to the principal investment strategies and principal risks of the Fund; (ii)&nbsp;the termination of the Investment Sub-Advisory Agreement among Forward Management, LLC, the investment advisor (&#147;Forward Management&#148;), the Trust and Broadmark Asset Management, LLC (&#147;Broadmark&#148;); (iii)&nbsp;changes to the advisory arrangement of the Fund; and (iv)&nbsp;a reduction in the management fee and expense limits for the Fund. </font></p> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px"><font style="font-family:arial" size="2"><b>Changes to Principal Investment Strategies </b></font></p> <p style="margin-top:0px;margin-bottom:0px"><font style="font-family:arial" size="2">Effective November&nbsp;1, 2012, the section titled &#147;Principal Investment Strategies&#148; on page 96 of the No-Load Prospectus and page 100 of the Load Prospectus shall be replaced in its entirety to read as follows: </font></p> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%"><font style="font-family:arial" size="2"><b>Principal Investment Strategies </b></font></p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%"><font style="font-family:arial" size="2">The Fund invests primarily in a diversified portfolio of instruments providing exposure, both long and short, to the U.S. and non-U.S. equity markets, including exchange-traded funds (&#147;ETFs&#148;), futures and options on securities, securities indices and shares of ETFs. The Fund may seek exposure to equity securities of issuers in all market capitalization ranges, including small capitalization companies, without limitation. </font></p> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%"><font style="font-family:arial" size="2">Under certain market conditions, the Fund may hold a substantial portion of its assets in cash, cash equivalents, and/or in fixed income securities that are investment grade quality and have maturities of less than three years (&#147;Fixed Income Securities&#148;). The Fund&#146;s Fixed Income Securities may include investments in the Forward Floating NAV Short Duration Fund or other Forward Funds. </font></p> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%"><font style="font-family:arial" size="2">The Fund&#146;s investment strategy seeks to identify potential long and short investments for the Fund through quantitative analysis of factors including market breadth, market price movements, market trends and market volatility. The Fund is expected to have significant investments in Fixed Income Securities when attractive long or short investment opportunities are not available. The Advisor adjusts the mix of the Fund&#146;s long, short and Fixed Income Securities investments based on its analysis of market conditions and at times the Fund&#146;s investment positions may be primarily long, short or in Fixed Income Securities. The Fund may employ leveraged investment techniques to increase the Fund&#146;s exposure to specific investment opportunities. Generally, the Fund will maintain net investment exposure between 100% net long and 100% net short, although the Fund may have investment exposure up to 200% net long. </font></p> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px" align="center"><font style="font-family:arial" size="2">**** </font></p><p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: arial" size="2">Effective November&nbsp;1, 2012, the following paragraph is added following the first paragraph under the heading "Performance Information" in the Fund's "Fund Summary" section in the No-Load Prospectus and Load Prospectus: </font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font size="1">&nbsp;</font></p> <p style="MARGIN: 0px 4%"><font style="FONT-FAMILY: arial" size="2">On November&nbsp;1, 2012, Forward Management assumed all responsibilities for selecting the Fund's investments and incorporated new principal investment strategies for the Fund as discussed above under "Principal Investment Strategies." Performance figures shown below for periods before November&nbsp;1, 2012 represent performance of the prior sub-advisor to the Fund under the previous investment strategies for the Fund.</font></p><p style="margin-top:0px;margin-bottom:0px"><font style="font-family:arial" size="2">The &#147;Annual Fund Operating Expenses&#148; table and the &#147;Examples&#148; table for the Fund on page 100 of the Load Prospectus are replaced to read as follows: </font></p> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%;padding-bottom:0px;"><font style="font-family:arial" size="2"><b>Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)<font style="font-family:arial" size="1"><sup style="vertical-align:baseline; position:relative; bottom:.8ex">(</sup></font><font style="font-family:arial" size="2"></font><font style="font-family:arial" size="1"><sup style="vertical-align:baseline; position:relative; bottom:.8ex">1)</sup></font> <font style="font-family:arial" size="2"> </font></b></font></p> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <table cellspacing="0" cellpadding="0" width="92%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="70%"></td> <td width="3%"></td> <td></td> <td></td> <td width="4%"></td> <td width="3%"></td> <td></td> <td></td> <td width="4%"></td> <td width="3%"></td> <td></td> <td></td> <td width="4%"></td></tr> <tr> <td ><font size="1">&nbsp;</font></td> <td ><font size="1">&nbsp;&nbsp;</font></td> <td colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="1"><b>Class&nbsp;A</b></font></td> <td ><font size="1">&nbsp;</font></td> <td ><font size="1">&nbsp;&nbsp;</font></td> <td colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="1"><b>Class&nbsp;C</b></font></td> <td ><font size="1">&nbsp;</font></td> <td ><font size="1">&nbsp;&nbsp;</font></td> <td colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="1"><b>Class&nbsp;M</b></font></td> <td ><font size="1">&nbsp;</font></td></tr> <tr bgcolor="#cceeff"> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">Management Fee</font><font style="font-family:arial" size="1"><sup style="vertical-align:baseline; position:relative; bottom:.8ex">(1)</sup></font><font style="font-family:arial" size="2"></font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">1.15</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">1.15</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">1.15</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td></tr> <tr> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">Distribution (12b-1) Fees</font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">0.35</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">0.75</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">N/A</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td></tr> <tr bgcolor="#cceeff"> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">Shareholder Services Fees</font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">0.20</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">0.25</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">0.05</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td></tr> <tr> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">Other Expenses</font><font style="font-family:arial" size="1"><sup style="vertical-align:baseline; position:relative; bottom:.8ex">(1)</sup></font><font style="font-family:arial" size="2"></font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">0.37</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">0.37</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">0.37</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td></tr> <tr bgcolor="#cceeff"> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">Acquired Fund Fees and Expenses</font><font style="font-family:arial" size="1"><sup style="vertical-align:baseline; position:relative; bottom:.8ex">(1)</sup></font><font style="font-family:arial" size="2"></font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">0.35</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">0.35</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">0.35</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td></tr> <tr> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2"><b>Total Annual Fund Operating Expenses</b></font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>&nbsp;</b></font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2"><b>2.42</b></font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>%&nbsp;</b></font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>&nbsp;</b></font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2"><b>2.87</b></font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>%&nbsp;</b></font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>&nbsp;</b></font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2"><b>1.92</b></font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>%&nbsp;</b></font></td></tr> <tr bgcolor="#cceeff"> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">Fee Waiver and/or Expense Reimbursement</font><font style="font-family:arial" size="1"><sup style="vertical-align:baseline; position:relative; bottom:.8ex">(2)</sup></font><font style="font-family:arial" size="2"></font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">&#150;0.08</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">&#150;0.08</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">&#150;0.08</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">%&nbsp;</font></td></tr> <tr> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2"><b>Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement</b></font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>&nbsp;</b></font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2"><b>2.34</b></font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>%&nbsp;</b></font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>&nbsp;</b></font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2"><b>2.79</b></font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>%&nbsp;</b></font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>&nbsp;</b></font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2"><b>1.84</b></font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2"><b>%&nbsp;</b></font></td></tr> </table> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p><table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"><tr> <td width="5%"></td> <td valign="top" width="3%" align="left"><font style="FONT-FAMILY: arial" size="2"><i>(1)</i></font></td> <td valign="top" width="1%"><font size="1">&nbsp;</font></td> <td valign="top" align="left"><font style="FONT-FAMILY: arial" size="2"><i>Restated to reflect current fees. </i></font></td> <td width="4%"><font size="1">&nbsp;</font></td></tr></table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -6px"><font size="1">&nbsp;</font></p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="5%"><font size="1">&nbsp;</font></td> <td valign="top" width="3%" align="left"><font style="FONT-FAMILY: arial" size="2"><i>(2)</i></font></td> <td valign="top" width="1%"><font size="1">&nbsp;</font></td> <td valign="top" align="left"><font style="FONT-FAMILY: arial" size="2"><i>The Fund's investment advisor is contractually obligated to waive a portion of its fees and reimburse other expenses until April 30, 2013, in amounts necessary to limit the Fund's operating expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired funds fees and expenses, and extraordinary expenses) for Class A, Class C and Class M shares to an annual rate (as a percentage of the Fund's average daily net assets) of 1.99%, 2.44% and 1.49%, respectively. This expense limitation arrangement may not be terminated by the Fund's investment advisor prior to such date under any circumstances. </i></font></td> <td width="4%"><font size="1">&nbsp;</font></td></tr></table> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%"><font style="font-family:arial" size="2"><b>Examples </b></font></p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%"><font style="font-family:arial" size="2">These Examples are intended to help you compare the costs of investing in Class&nbsp;A, Class C or Class M shares of the Fund with the costs of investing in other mutual funds. The Examples assume that you invest $10,000 in the noted class of shares for the time periods indicated and then redeem all your shares at the end of those periods. The Examples also assume that your investment has a 5% return each year, that the Fund&#146;s total annual operating expenses remain the same, and that the contractual fee waiver/reimbursement is in place for the first year. Although actual costs may be higher or lower, based on these assumptions your costs would be: </font></p> <table cellspacing="0" cellpadding="0" width="92%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="77%"></td> <td width="2%"></td> <td></td> <td></td> <td width="2%"></td> <td width="2%"></td> <td></td> <td></td> <td width="3%"></td> <td width="2%"></td> <td></td> <td></td> <td width="3%"></td></tr> <tr> <td ><font size="1">&nbsp;</font></td> <td ><font size="1">&nbsp;&nbsp;</font></td> <td colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="1"><b>Class&nbsp;A</b></font></td> <td ><font size="1">&nbsp;</font></td> <td ><font size="1">&nbsp;&nbsp;</font></td> <td colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="1"><b>Class&nbsp;C</b></font></td> <td ><font size="1">&nbsp;</font></td> <td ><font size="1">&nbsp;&nbsp;</font></td> <td colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="1"><b>Class&nbsp;M</b></font></td> <td ><font size="1">&nbsp;</font></td></tr> <tr bgcolor="#cceeff"> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">1 Year</font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">798</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">382</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">187</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td></tr> <tr> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">3 Years</font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">1,279</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">881</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">595</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td></tr> <tr bgcolor="#cceeff"> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">5 Years</font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">1,784</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">1,505</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">1,029</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td></tr> <tr> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">10 Years</font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">3,163</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">3,185</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">2,234</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td></tr> </table> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%"><font style="font-family:arial" size="2">You would pay the following expenses if you did not redeem your shares: </font></p> <p style="margin-top:0px;margin-bottom:-6px"><font size="1">&nbsp;</font></p> <table cellspacing="0" cellpadding="0" width="92%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="77%"></td> <td width="2%"></td> <td></td> <td></td> <td width="2%"></td> <td width="2%"></td> <td></td> <td></td> <td width="3%"></td> <td width="2%"></td> <td></td> <td></td> <td width="3%"></td></tr> <tr> <td ><font size="1">&nbsp;</font></td> <td ><font size="1">&nbsp;&nbsp;</font></td> <td colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="1"><b>Class&nbsp;A</b></font></td> <td ><font size="1">&nbsp;</font></td> <td ><font size="1">&nbsp;&nbsp;</font></td> <td colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="1"><b>Class&nbsp;C</b></font></td> <td ><font size="1">&nbsp;</font></td> <td ><font size="1">&nbsp;&nbsp;</font></td> <td colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="1"><b>Class&nbsp;M</b></font></td> <td ><font size="1">&nbsp;</font></td></tr> <tr bgcolor="#cceeff"> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">1 Year</font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">798</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">282</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">187</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td></tr> <tr> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">3 Years</font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">1,279</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">881</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">595</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td></tr> <tr bgcolor="#cceeff"> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">5 Years</font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">1,784</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">1,505</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">1,029</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td></tr> <tr> <td style="border-bottom:1px solid #000000"> <p style="margin-left:0.60em"><font style="font-family:arial" size="2">10 Years</font></p></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">3,163</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">3,185</font></td> <td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font size="1">&nbsp;&nbsp;</font></td> <td style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">$</font></td> <td style="border-bottom:1px solid #000000" align="right"><font style="font-family:arial" size="2">2,234</font></td><td nowrap="nowrap" style="border-bottom:1px solid #000000"><font style="font-family:arial" size="2">&nbsp;&nbsp;</font></td></tr></table> 0.0115 0.0115 0.0115 0.0115 0.0115 0.0025 0.0035 0.0075 0.0037 0.0037 0.0037 0.0037 0.0037 0.0035 0.0035 0.0035 0.0035 0.0035 0.0219 0.0184 0.0234 0.0184 0.0279 2595 2234 3163 3185 2234 595 Restated to reflect current fees. The Fund's investment advisor is contractually obligated to waive a portion of its fees and reimburse other expenses until April 30, 2013, in amounts necessary to limit the Fund's operating expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired funds fees and expenses, and extraordinary expenses) for Investor Class and Institutional Class shares to an annual rate (as a percentage of the Fund's average daily net assets) of 1.84% and 1.49%, respectively. This expense limitation arrangement may not be terminated by the Fund's investment advisor prior to such date under any circumstances. The Fund's investment advisor is contractually obligated to waive a portion of its fees and reimburse other expenses until April 30, 2013, in amounts necessary to limit the Fund's operating expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired funds fees and expenses, and extraordinary expenses) for Class A, Class C and Class M shares to an annual rate (as a percentage of the Fund's average daily net assets) of 1.99%, 2.44% and 1.49%, respectively. This expense limitation arrangement may not be terminated by the Fund's investment advisor prior to such date under any circumstances. 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