N-CSR 1 primary-document.htm
As filed with the Securities and Exchange Commission on July 7, 2023
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM N-CSR
 
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

 
Investment Company Act file number 811-03023
 
FORUM FUNDS
Three Canal Plaza, Suite 600
Portland, Maine 04101
 
 
Zachary Tackett, Principal Executive Officer
Three Canal Plaza, Suite 600
Portland, Maine 04101
207-347-2000
 
 
Date of fiscal year end April 30, 2023
 
Date of reporting period: May 1, 2022 – April 30, 2023
 
 

ITEM 1. REPORT TO STOCKHOLDERS.
 
MONONGAHELA
ALL
CAP
VALUE
FUND
Annual
Report
April
30,
2023
MONONGAHELA
ALL
CAP
VALUE
FUND
A
MESSAGE
TO
OUR
SHAREHOLDERS
(Unaudited)
April
30,
2023
1
Dear
Shareholder,
We
are
pleased
to
offer
this
annual
report
for
the
Monongahela
All
Cap
Value
Fund
(the
“Fund”)
for
the
period
from
May
1
st
,
2022
to
April
30
th
,
2023.
For
this
period,
the
Fund
was
up
0.08%;
the
S&P
500
®
Index
(the
“S&P
500”),
an
index
that
tracks
the
performance
of
the
500
largest
publicly
traded
companies
in
the
US
weighted
by
market
capitalization,
was
up
2.66%;
the
Russell
2000
®
Value
Index,
an
index
that
tracks
the
performance
of
US
small
market
capitalization
companies,
was
down
7.99%.
Since
our
mid-year
report
on
October
31,
2022,
the
Fund
was
up
4.41%
while
the
S&P
500
was
up
8.63%
and
the
Russell
2000
®
Value
Index
was
down
6.72%.
The
divergence
between
the
performance
of
large
cap
growth
and
small
cap
value
styles
of
investing
continued
during
our
fiscal
year
ending
April
30th,
2023.
The
year
was
a
tale
of
diverging
halves.
In
the
first
six
months
of
our
fiscal
year,
the
Fund,
with
its
mid-
cap
value
orientation,
outperformed
the
S&P
500
while
the
second
half
saw
the
S&P
500
rebounding
strongly
and
outperforming
the
Monongahela
All
Cap
Value
Fund.
During
the
last
six
months
of
our
fiscal
year,
November
1st,
2022
to
April
30th,
2023,
the
capitalization
weighted
S&P
500,
dominated
by
the
mega-cap
technology
companies,
has
soared
on
the
potential
of
artificial
intelligence
(AI).
Forecasts
by
leading
experts
have
ignited
interest
in
technology
companies
like
Nvidia,
a
leader
in
advanced
chip
technology
necessary
for
AI
computing.
Nvidia’s
stock
has
advanced
approximately
170%
in
the
first
five
months
of
2023
and
briefly
crossed
$1
trillion
in
market
capitalization.
Interestingly,
the
heavy
technology
weighting
in
the
S&P
500
has
propelled
the
index
to
a
9.5%
gain
in
the
first
five
months
of
2023,
while
the
equal
weighted
S&P
500
return
is
slightly
negative
for
the
same
period.
The
divergence
in
the
two
averages
is
noteworthy;
sustained
bull
markets
are
usually
built
on
a
broad
base
of
participating
companies
rather
than
the
very
narrow
rally
occurring
in
the
S&P
500.
While
the
forecast
for
AI
is
tantalizing,
forecasting
is
an
inherently
difficult
task,
especially
forecasting
many
years
into
the
future.
In
periods
of
seismic
change,
like
the
significant
impact
AI
may
have
on
our
lives
and
the
market,
forecasters
tend
to
extrapolate
the
shortest
of
trends
into
long
term
forecast.
One
of
our
favorite
research
pieces
we
wrote
in
March
of
2009
during
the
dark
days
of
the
financial
crisis
reflected
on
the
absurdity
of
extrapolating
long-term
trends
from
specific
short
term
data.
As
manager
of
your
value
fund,
we
adhere
to
a
discipline
in
analyzing
all
sectors,
including
technology.
We
are
and
have
been
studying
AI
for
a
while
and
the
impact
on
society
and
companies.
We
have
investments
in
your
portfolio
that
we
believe
should
be
the
beneficiaries
of
the
growth
of
AI
(e.g.
Coherent
Corp),
but
as
value
investors,
we
like
to
have
a
margin
of
safety,
buying
below
intrinsic
value,
in
all
of
our
investments.
Divergence
like
we
are
currently
seeing
in
the
averages
would
suggest
some
risk
and
markets
do
tend
to
revert
to
the
mean
over
time.
In
that
reversion,
we
will
seek
opportunities
in
displaced
sectors
and
companies,
knowing
that
the
lower
Mississippi
is
still
seven
hundred
and
forty-two
miles
long.
Baxter
International,
Inc.
was
added
to
the
portfolio
since
our
semi-annual
report
on
October
31,
2022,
increasing
our
healthcare
sector
exposure
to
18.4%.
The
company’s
legacy
medical
products
focus
on
treating
kidney
disease
and
other
chronic
and
acute
medical
conditions.
Baxter
completed
the
acquisition
of
Hill-Rom
in
late
2021
for
$12.4
billion
and
the
stock
closed
2021
at
$85.84
per
share.
Hill-Rom
provides
healthcare
products
including
smart
beds
and
surfaces,
patient
monitoring
systems,
diagnostic
products,
and
non-invasive
respiratory
therapy.
Increased
debt
levels
and
slow
integration
of
the
merger
left
the
stock
vulnerable
and
Baxter’s
stock
has
declined
more
than
50%
since
December
31st,
2021.
This
provided
an
entry
point
in
the
low
40’s,
we
believe
at
a
significant
discount
to
intrinsic
value.
Recently
the
company
sold
its
BioPharma
Solutions
for
$4.25
billion
in
cash,
allowing
for
accelerated
debt
reduction.
The
merged
companies
are
beginning
to
see
operational
efficiencies
that
we
believe
should
lead
to
a
return
to
historical
levels
of
profit
margins.
Sector
changes
are
driven
from
bottom-up
analysis
and
our
Consumer
Staples
sector
allocation
increased
from
9.9%
to
12%,
Healthcare
increased
from
14.5%
to
18.4%,
Financials
increased
from
7.2%
to
9.6%
and
Industrials
increased
from
19.7%
Note
that
as
the
Mississippi
River
winds
through
the
heart
of
America,
flooding
occurs
cyclically,
not
annually.
When
the
Mississippi
does
flood,
the
river
diverts
it
course,
flowing
across
the
numerous
low
lying
sand
bars,
cutting
new
channels
that
eventually
become
the
main
channel.
Mark
Twain
observed
this
phenomenon
and
commented
on
it
in
his
novel
“Life
on
the
Mississippi.”
Twain
noted
that
the
river
had
been
shortening
its
route
by
just
over
a
mile
a
year
for
a
number
of
years.
Twain,
tongue
in
cheek,
extended
that
trend,
noting
that
“Any
person
can
see
that
seven
hundred
and
forty-two
years
from
now
the
lower
Mississippi
will
be
only
a
mile
and
three
quarters
long.”
MONONGAHELA
ALL
CAP
VALUE
FUND
A
MESSAGE
TO
OUR
SHAREHOLDERS
(Unaudited)
April
30,
2023
2
to
23.1%.
The
collapse
and
stress
in
the
banking
sector
have
provided
opportunities
for
additions
to
positions
in
well
run
companies
like
MetLife,
Inc.
and
PNC
Financial
Services
Group,
Inc.
at
discounted
values.
Our
exposure
to
Information
Technology
declined
in
the
year
ending
April
30th,
2023
from
16%
to
9.1%.
The
reduction
occurred
primarily
with
the
sale
of
our
position
in
Seagate
Technology.
While
we
are
extremely
long
term
in
our
investments
holding
periods,
when
we
notice
structural
changes
in
successive
quarterly
earnings,
we
challenge
our
original
thesis
for
purchasing
the
position.
In
the
case
of
Seagate,
demand
has
been
weakening,
putting
pressure
on
margins
and
profitability.
Shareholder
equity
has
been
drifting
lower
and
is
now
negative.
While
some
analysts
place
less
emphasis
on
shareholder
equity,
experience
tells
us
that
declining
shareholder
equity
weakens
the
financial
strength
of
a
company,
reduces
the
ability
to
grow,
and
eventually
leads
to
dividend
reduction
or
elimination.
Finally,
after
years
of
zero
yield
on
T-Bills
and
money
market
funds,
we
have
initiated
T-Bill
purchases
to
complement
our
cash/cash
equivalent
positions.
Treasuries
with
less
than
a
year
maturity
are
yielding
around
5
%.
Thank
you
for
your
investment
with
us
and
have
a
great
summer.
IMPORTANT
RISKS
AND
DISCLOSURES
Past
performance
is
no
guarantee
of
future
results.
Mutual
fund
investing
involves
risk,
including
possible
loss
of
principal.
Turbulence
in
the
financial
markets
and
reduced
liquidity
in
equity,
credit
and
fixed-income
markets
may
negatively
affect
issuers
worldwide,
which
could
have
an
adverse
effect
on
mutual
fund
investments.
A
value
investing
strategy
involves
the
risk
that
undervalued
securities
may
not
appreciate
as
anticipated
or
will
remain
undervalued
for
long
periods
of
time.
Securities
of
micro-,
small-
and
mid-capitalization
companies
may
be
more
volatile
and
less
liquid
than
those
of
large-cap
companies
due
to
limited
resources
or
product
lines
and
greater
sensitivity
to
adverse
economic
conditions.
The
views
in
this
report
were
those
of
the
Fund
managers
as
of
April
30,
2023,
and
may
not
reflect
their
views
on
the
date
this
report
is
first
published
or
any
time
thereafter.
These
views
are
intended
to
assist
shareholders
in
understanding
their
investment
in
the
Fund
and
do
not
constitute
investment
advice.
This
letter
may
contain
discussions
about
certain
investments
both
held
and
not
held
in
the
portfolio.
All
current
and
future
holdings
are
subject
to
risk
and
to
change.
Please
see
the
schedule
of
investments
for
a
complete
list
of
holdings.
Mark
Rodgers
Michael
Rodgers
Co-Manager
Co-Manager
MONONGAHELA
ALL
CAP
VALUE
FUND
PERFORMANCE
CHART
AND
ANALYSIS
(Unaudited)
April
30,
2023
3
The
following
chart
reflects
the
change
in
the
value
of
a
hypothetical
$10,000
investment,
including
reinvested
dividends
and
distributions,
in
the
Monongahela
All
Cap
Value
Fund
(the”Fund”)
compared
with
the
performance
of
the
benchmarks,
the
S&P
500
®
Index
(the
“S&P
500”)
and
the
Russell
2000
®
Value
Index
(the
“Russell
2000
Value”),
since
inception.
The
S&P
500
is
a
broad-based
measurement
of
the
U.S.
stock
market
based
on
the
performance
of
500
widely
held
large
capitalization
common
stocks.
The
Russell
2000
Value
measures
the
2,000
smallest
of
the
3,000
largest
U.S.
Companies
(based
on
total
market
capitalization)
that
have
lower
price-to-book
ratios
and
lower
forecasted
growth
values.
The
total
return
of
the
indices
includes
the
reinvestment
of
dividends
and
income.
The
total
return
of
the
Fund
includes
operating
expenses
that
reduce
returns,
while
the
total
return
of
the
indices
do
not
include
expenses.
The
Fund
is
professionally
managed,
while
the
indices
are
unmanaged
and
are
not
available
for
investment.
Comparison
of
Change
in
Value
of
a
$10,000
Investment
Monongahela
All
Cap
Value
Fund
vs.
S&P
500®
Index
vs.
Russell
2000®
Value
Index
Performance
data
quoted
represents
past
performance
and
is
no
guarantee
of
future
results.
Current
performance
may
be
lower
or
higher
than
the
performance
data
quoted.
Investment
return
and
principal
value
will
fluctuate
so
that
shares,
when
redeemed,
may
be
worth
more
or
less
than
original
cost.
For
the
most
recent
month-end
performance,
please
call
(855)
392-9331.
As
stated
in
the
Fund’s
prospectus,
the
annual
operating
expense
ratio
(gross)
is
1.83%.
However,
the
Fund’s
Adviser has
contractually
agreed
to
waive
its
fee
and/or
reimburse
Fund
expenses
to
limit
Total
Annual
Fund
Operating
Expenses
After
Fee
Waiver
and/or
Expense
Reimbursement
(excluding
all
taxes,
interest,
portfolio
transaction
expenses,
dividend
and
interest
expenses
on
short
sales,
acquired
fund
fees
and
expenses,
proxy
expenses
and
extraordinary
expenses)
to
0.85%,
through
September
1,
2023
(the
“Expense
Cap”).
The
Expense
Cap
may
be
raised
or
eliminated
only
with
the
consent
of
the
Board
of
Trustees.
The
Adviser
may
be
reimbursed
by
the
Fund
for
fees
waived
and
expenses
reimbursed
by
the
Adviser
pursuant
to
the
Expense
Cap
if
such
payment
is
made
within
three
years
of
the
fee
waiver
or
expense
reimbursement,
and
does
not
cause
the
Total
Annual
Fund
Operating
Expenses
After
Fee
Waiver
and/or
Expense
Reimbursement
to
exceed
the
lesser
of
(i)
the
then-current
expense
cap,
or
(ii)
the
expense
cap
in
place
at
the
time
the
fees/expenses
were
waived/reimbursed.
Total
Annual
Fund
Operating
Expenses
After
Fee
Waiver
and/or
Expense
Reimbursement
will
increase
if
exclusions
from
the
Expense
Cap
apply.
During
the
year,
certain
fees
were
waived
and/or
expenses
reimbursed;
otherwise,
returns
would
have
been
lower.
Shares
redeemed
or
exchanged
within
60
days
of
purchase
will
be
charged
a
1.00%
redemption
fee.
The
performance
table
and
graph
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
Fund
distributions
or
the
redemption
of
Fund
shares.
Returns
greater
than
one
year
are
annualized.
Average
Annual
Total
Returns
Periods
Ended
April
30,
2023
Six
Month
One
Year
Five
Year
Since
Inception
07/01/13
Monongahela
All
Cap
Value
Fund
4.41%
0.08%
9.45%
9.98%
S&P
500®
Index
8.63%
2.66%
11.45%
12.25%
Russell
2000®
Value
Index
-6.72%
-7.99%
3.66%
6.69%
MONONGAHELA
ALL
CAP
VALUE
FUND
SCHEDULE
OF
INVESTMENTS
April
30,
2023
4
See
Notes
to
Financial
Statements.
The
following
is
a
summary
of
the
inputs
used
to
value
the
Fund's investments
as
of
April
30,
2023. 
The
inputs
or
methodology
used
for
valuing
securities
are
not
necessarily
an
indication
of
the
risks
associated
with
investing
in
those
securities.
For
more
information
on
valuation
inputs,
and
their
aggregation
into
the
levels
used
in
the
table
below,
please
refer
to
the
Security
Valuation
section
in
Note
2
of
the
accompanying
Notes
to
Financial
Statements.
The
Level
1
value
displayed
in
this
table
is
Common
Stock.
The
Level
2
value
displayed
in
this
table
are
U.S.
Treasury
Securities
and
a
Money
Market
Fund.
Refer
to
this
Schedule
of
Investments
for
a
further
breakout
of
each
security
by
industry.
Shares
Security
Description
Value
Common
Stock
-
95.3%
Consumer
Discretionary
-
15.2%
55,000‌
El
Pollo
Loco
Holdings,
Inc.
$
512,600‌
22,000‌
H&R
Block,
Inc.
746,020‌
11,250‌
Hasbro,
Inc.
666,225‌
25,000‌
Tapestry,
Inc.
1,020,250‌
8,500‌
Williams-Sonoma,
Inc.
1,028,840‌
3,973,935‌
Consumer
Staples
-
12.0%
10,350‌
Alico,
Inc.
243,846‌
5,000‌
Brown-Forman
Corp.,
Class A
329,400‌
9,000‌
General
Mills,
Inc.
797,670‌
2,500‌
Kimberly-Clark
Corp.
362,225‌
1,500‌
McCormick
&
Co.,
Inc.,
Non-Voting
Shares
131,775‌
3,500‌
Target
Corp.
552,125‌
2,750‌
The
Procter
&
Gamble
Co.
430,045‌
8,500‌
Walgreens
Boots
Alliance,
Inc.
299,625‌
3,146,711‌
Energy
-
3.9%
10,500‌
ONEOK,
Inc.
686,805‌
3,500‌
Phillips
66
346,500‌
1,033,305‌
Financials
-
9.6%
12,000‌
Equitable
Holdings,
Inc.
311,880‌
14,500‌
MetLife,
Inc.
889,285‌
17,500‌
Old
Republic
International
Corp.
442,225‌
2,000‌
The
Bank
of
New
York
Mellon
Corp.
85,180‌
6,000‌
The
PNC
Financial
Services
Group,
Inc.
781,500‌
2,510,070‌
Health
Care
-
18.4%
2,000‌
Abbott
Laboratories
220,940‌
5,000‌
AbbVie,
Inc.
755,600‌
3,000‌
Azenta,
Inc. 
(a)
130,470‌
14,500‌
Baxter
International,
Inc.
691,360‌
12,500‌
Hologic,
Inc. 
(a)
1,075,125‌
4,500‌
Merck
&
Co.,
Inc.
519,615‌
4,500‌
PerkinElmer,
Inc.
587,205‌
4,000‌
Zimmer
Biomet
Holdings,
Inc.
553,760‌
36,000‌
Zimvie,
Inc. 
(a)
296,280‌
4,830,355‌
Industrials
-
23.1%
5,000‌
Curtiss-Wright
Corp.
849,150‌
10,000‌
Emerson
Electric
Co.
832,600‌
9,000‌
Fortune
Brands
Innovations,
Inc.
582,210‌
750‌
Honeywell
International,
Inc.
149,880‌
3,500‌
Hubbell,
Inc.
942,620‌
2,500‌
Lindsay
Corp.
301,850‌
12,500‌
Masterbrand,
Inc. 
(a)
100,875‌
2,500‌
Rockwell
Automation,
Inc.
708,525‌
2,000‌
Science
Applications
International
Corp.
204,060‌
24,000‌
The
Gorman-Rupp
Co.
589,200‌
6,000‌
Westinghouse
Air
Brake
Technologies
Corp.
586,020‌
2,000‌
Woodward,
Inc.
192,040‌
6,039,030‌
Information
Technology
-
9.1%
1,750‌
Badger
Meter,
Inc.
231,577‌
13,250‌
Coherent
Corp. 
(a)
452,355‌
12,500‌
Corning,
Inc.
415,250‌
3,500‌
F5,
Inc. 
(a)
470,260‌
10,000‌
Intel
Corp.
310,600‌
Shares
Security
Description
Value
Information
Technology
-
9.1%
(continued)
3,000‌
Texas
Instruments,
Inc.
$
501,600‌
2,381,642‌
Materials
-
1.1%
2,000‌
PPG
Industries,
Inc.
280,520‌
Utilities
-
2.9%
10,000‌
National
Fuel
Gas
Co.
559,000‌
2,000‌
WEC
Energy
Group,
Inc.
192,340‌
751,340‌
Total
Common
Stock
(Cost
$20,545,536)
24,946,908‌
Principal
Security
Description
Rate
Maturity
Value
U.S.
Government
&
Agency
Obligations
-
0.4%
U.S.
Treasury
Securities
-
0.4%
$
100,000‌
U.S.
Treasury
Bill 
(b)
(Cost
$98,154)
4.42%
10/05/23
97,900‌
Shares
Security
Description
Value
Money
Market
Fund
-
4.3%
1,121,847‌
First
American
Treasury
Obligations
Fund,
Class X,
4.77% 
(c)
(Cost
$1,121,847)
1,121,847‌
Investments,
at
value
-
100.0%
(Cost
$21,765,537)
$
26,166,655‌
Other
Assets
&
Liabilities,
Net
-
0.0%
(6,321‌)
Net
Assets
-
100.0%
$
26,160,334‌
(a)
Non-income
producing
security.
(b)
Zero
coupon
bond.
Interest
rate
presented
is
yield
to
maturity.
(c)
Dividend
yield
changes
daily
to
reflect
current
market
conditions.
Rate
was
the
quoted
yield
as
of
April
30,
2023.
Valuation
Inputs
Investments
in
Securities
Level
1
-
Quoted
Prices
$
24,946,908‌
Level
2
-
Other
Significant
Observable
Inputs
1,219,747‌
Level
3
-
Significant
Unobservable
Inputs
–‌
Total
$
26,166,655‌
MONONGAHELA
ALL
CAP
VALUE
FUND
SCHEDULE
OF
INVESTMENTS
April
30,
2023
5
See
Notes
to
Financial
Statements.
PORTFOLIO
HOLDINGS
(Unaudited)
%
of
Total
Investments
Consumer
Discretionary
15.2‌%
Consumer
Staples
12.0‌%
Energy
3.9‌%
Financials
9.6‌%
Health
Care
18.4‌%
Industrials
23.1‌%
Information
Technology
9.1‌%
Materials
1.1‌%
Utilities
2.9‌%
U.S.
Government
&
Agency
Obligations
0.4‌%
Money
Market
Fund
4.3‌%
100.0‌%
MONONGAHELA
ALL
CAP
VALUE
FUND
STATEMENT
OF
ASSETS
AND
LIABILITIES
April
30,
2023
6
See
Notes
to
Financial
Statements.
ASSETS
Investments,
at
value
(Cost
$21,765,537)
$
26,166,655‌
Receivables:
Fund
shares
sold
4,500‌
Dividends
55,320‌
Prepaid
expenses
6,349‌
Total
Assets
26,232,824‌
LIABILITIES
Payables:
Fund
shares
redeemed
30,030‌
Accrued
Liabilities:
Investment
Adviser
fees
2,424‌
Fund
services
fees
7,714‌
Other
expenses
32,322‌
Total
Liabilities
72,490‌
NET
ASSETS
$
26,160,334‌
COMPONENTS
OF
NET
ASSETS
Paid-in
capital
$
21,343,992‌
Distributable
Earnings
4,816,342‌
NET
ASSETS
$
26,160,334‌
SHARES
OF
BENEFICIAL
INTEREST
AT
NO
PAR
VALUE
(UNLIMITED
SHARES
AUTHORIZED)
1,535,655‌
NET
ASSET
VALUE,
OFFERING
AND
REDEMPTION
PRICE
PER
SHARE*
$
17.04‌
*
Shares
redeemed
or
exchanged
within
60
days
of
purchase
are
charged
a
1.00%
redemption
fee.
MONONGAHELA
ALL
CAP
VALUE
FUND
STATEMENT
OF
OPERATIONS
YEAR
ENDED
April
30,
2023
7
See
Notes
to
Financial
Statements.
INVESTMENT
INCOME
Dividend
income
(Net
of
foreign
withholding
taxes
of
$1,579)
$
717,075‌
Interest
income
2,304‌
Total
Investment
Income
719,379‌
EXPENSES
Investment
adviser
fees
189,036‌
Fund
services
fees
178,990‌
Custodian
fees
5,185‌
Registration
fees
13,649‌
Professional
fees
41,021‌
Trustees'
fees
and
expenses
5,387‌
Other
expenses
46,437‌
Total
Expenses
479,705‌
Fees
waived
(265,463‌)
Net
Expenses
214,242‌
NET
INVESTMENT
INCOME
505,137‌
NET
REALIZED
AND
UNREALIZED
GAIN
(LOSS)
Net
realized
gain
on
investments
309,487‌
Net
change
in
unrealized
appreciation
(depreciation)
on
investments
(785,783‌)
NET
REALIZED
AND
UNREALIZED
LOSS
(476,296‌)
INCREASE
IN
NET
ASSETS
RESULTING
FROM
OPERATIONS
$
28,841‌
MONONGAHELA
ALL
CAP
VALUE
FUND
STATEMENTS
OF
CHANGES
IN
NET
ASSETS
8
See
Notes
to
Financial
Statements.
For
the
Years
Ended
April
30,
2023
2022
OPERATIONS
Net
investment
income
$
505,137‌
$
379,548‌
Net
realized
gain
309,487‌
1,050,988‌
Net
change
in
unrealized
appreciation
(depreciation)
(785,783‌)
(1,883,022‌)
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
28,841‌
(452,486‌)
DISTRIBUTIONS
TO
SHAREHOLDERS
Total
Distributions
Paid
(1,171,706‌)
(1,892,020‌)
CAPITAL
SHARE
TRANSACTIONS
Sale
of
shares
3,121,192‌
3,946,000‌
Reinvestment
of
distributions
1,151,107‌
1,855,424‌
Redemption
of
shares
(2,212,515‌)
(2,640,404‌)
Redemption
fees
623‌
548‌
Increase
in
Net
Assets
from
Capital
Share
Transactions
2,060,407‌
3,161,568‌
Increase
in
Net
Assets
917,542‌
817,062‌
NET
ASSETS
Beginning
of
Year
25,242,792‌
24,425,730‌
End
of
Year
$
26,160,334‌
$
25,242,792‌
SHARE
TRANSACTIONS
Sale
of
shares
182,494‌
207,973‌
Reinvestment
of
distributions
67,000‌
99,175‌
Redemption
of
shares
(129,518‌)
(139,925‌)
Increase
in
Shares
119,976‌
167,223‌
MONONGAHELA
ALL
CAP
VALUE
FUND
FINANCIAL
HIGHLIGHTS
9
See
Notes
to
Financial
Statements.
These
financial
highlights
reflect
selected
data
for
a
share
outstanding
throughout
each
year
.
For
the
Years
Ended
April
30,
2023
2022
2021
2020
2019
NET
ASSET
VALUE,
Beginning
of
Year
$
17.83‌
$
19.56‌
$
12.62‌
$
14.03‌
$
13.65‌
INVESTMENT
OPERATIONS
Net
investment
income
(a)
0.34‌
0.28‌
0.23‌
0.28‌
0.28‌
Net
realized
and
unrealized
gain
(loss)
(0.33‌)
(0.56‌)
6.92‌
(1.22‌)
0.93‌
Total
from
Investment
Operations
0.01‌
(0.28‌)
7.15‌
(0.94‌)
1.21‌
DISTRIBUTIONS
TO
SHAREHOLDERS
FROM
Net
investment
income
(0.30‌)
(0.25‌)
(0.20‌)
(0.27‌)
(0.26‌)
Net
realized
gain
(0.50‌)
(1.20‌)
(0.01‌)
(0.20‌)
(0.57‌)
Total
Distributions
to
Shareholders
(0.80‌)
(1.45‌)
(0.21‌)
(0.47‌)
(0.83‌)
REDEMPTION
FEES(a)
0.00‌(b)
0.00‌(b)
0.00‌(b)
0.00‌(b)
0.00‌(b)
NET
ASSET
VALUE,
End
of
Year
$
17.04‌
$
17.83‌
$
19.56‌
$
12.62‌
$
14.03‌
TOTAL
RETURN
0.08‌%
(1.73‌)%
56.94‌%
(7.26‌)%
9.72‌%
RATIOS/SUPPLEMENTARY
DATA
Net
Assets
at
End
of
Year
(000s
omitted)
$
26,160‌
$
25,243‌
$
24,426‌
$
12,755‌
$
12,805‌
Ratios
to
Average
Net
Assets:
Net
investment
income
2.00‌%
1.47‌%
1.41‌%
2.01‌%
1.98‌%
Net
expenses
0.85‌%
0.85‌%
0.85‌%
0.85‌%
0.85‌%
Gross
expenses
(c)
1.90‌%
1.83‌%
2.21‌%
2.57‌%
2.86‌%
PORTFOLIO
TURNOVER
RATE
27‌%
30‌%
32‌%
47‌%
37‌%
(a)
Calculated
based
on
average
shares
outstanding
during
each
year.
(b)
Less
than
$0.01
per
share.
(c)
Reflects
the
expense
ratio
excluding
any
waivers
and/or
reimbursements.
MONONGAHELA
ALL
CAP
VALUE
FUND
NOTES
TO
FINANCIAL
STATEMENTS
April
30,
2023
10
Note
1. Organization
The
Monongahela
All
Cap
Value
Fund
(the
“Fund”)
is
a
diversified
portfolio
of
Forum
Funds
(the
“Trust”).
The
Trust
is
a
Delaware
statutory
trust
that
is
registered
as
an
open-end,
management
investment
company
under
the
Investment
Company
Act
of
1940,
as
amended
(the
“Act”).
Under
its
Trust
Instrument,
the
Trust
is
authorized
to
issue
an
unlimited
number
of
the
Fund’s
shares
of
beneficial
interest
without
par
value.
The
Fund
commenced
operations
on
July
1,
2013.
The
Fund
seeks
total
return
through
long-term
capital
appreciation
and
income.
Note
2. Summary
of
Significant
Accounting
Policies
The
Fund
is
an
investment
company
and
follows
accounting
and
reporting
guidance
under
Financial
Accounting
Standards
Board
Accounting
Standards
Codification
Topic
946,
“Financial
Services
Investment
Companies.”
These
financial
statements
are
prepared
in
accordance
with
accounting
principles
generally
accepted
in
the
United
States
of
America
(“GAAP”),
which
require
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities,
the
disclosure
of
contingent
liabilities
at
the
date
of
the
financial
statements,
and
the
reported
amounts
of
increases
and
decreases
in
net
assets
from
operations
during
the
fiscal
year.
Actual
amounts
could
differ
from
those
estimates.
The
following
summarizes
the
significant
accounting
policies
of
the
Fund:
Security
Valuation
Securities
are
valued
at
market
prices
using
the
last
quoted
trade
or
official
closing
price
from
the
principal
exchange
where
the
security
is
traded,
as
provided
by
independent
pricing
services
on
each
Fund
business
day.
In
the
absence
of
a
last
trade,
securities
are
valued
at
the
mean
of
the
last
bid
and
ask
price
provided
by
the
pricing
service.
Short-term
investments
that
mature
in
sixty
days
or
less
may
be
valued
at
amortized
cost.
Pursuant
to
Rule
2a-5
under
the
Investment
Company
Act,
the
Trust’s
Board
of
Trustees
(the
“Board”)
has
designated
the
Adviser,
as
defined
in
Note
3,
as
the
Fund’s
valuation
designee
to
perform
any
fair
value
determinations
for
securities
and
other
assets
held
by
the
Fund.
The
Adviser
is
subject
to
the
oversight
of
the
Board
and
certain
reporting
and
other
requirements
intended
to
provide
the
Board
the
information
needed
to
oversee
the
Adviser’s
fair
value
determinations.
The
Adviser
is
responsible
for
determining
the
fair
value
of
investments
for
which
market
quotations
are
not
readily
available
in
accordance
with
policies
and
procedures
that
have
been
approved
by
the
Board.
Under
these
procedures,
the
Adviser
convenes
on
a
regular
and
ad
hoc
basis
to
review
such
investments
and
considers
a
number
of
factors,
including
valuation
methodologies
and
significant
unobservable
inputs,
when
arriving
at
fair
value.
The
Board
has
approved
the
Adviser’s
fair
valuation
procedures
as
a
part
of
the
Fund’s
compliance
program
and
will
review
any
changes
made
to
the
procedures.
The
Adviser
provides
fair
valuation
inputs.
In
determining
fair
valuations,
inputs
may
include
market-based
analytics
that
may
consider
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
book
values
and
other
relevant
investment
information.
Adviser
inputs
may
include
an
income-based
approach
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
in
determining
fair
value.
Discounts
may
also
be
applied
based
on
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
The
Adviser
performs
regular
reviews
of
valuation
methodologies,
key
inputs
and
assumptions,
disposition
analysis
and
market
activity.
Fair
valuation
is
based
on
subjective
factors
and,
as
a
result,
the
fair
value
price
of
an
investment
may
differ
from
the
security’s
market
price
and
may
not
be
the
price
at
which
the
asset
may
be
sold.
Fair
valuation
could
result
in
a
different
Net
Asset
Value
(“NAV”)
than
a
NAV
determined
by
using
market
quotes.
GAAP
has
a
three-tier
fair
value
hierarchy.
The
basis
of
the
tiers
is
dependent
upon
the
various
“inputs”
used
to
determine
the
value
of
the
Fund’s
investments.
These
inputs
are
summarized
in
the
three
broad
levels
listed
below:
Level
1
-
Quoted
prices
in
active
markets
for
identical
assets
and
liabilities.
Level
2
-
Prices
determined
using
significant
other
observable
inputs
(including
quoted
prices
for
similar
securities,
interest
rates,
prepayment
speeds,
credit
risk,
etc.).
Short-term
securities
with
maturities
of
sixty
days
or
less
are
valued
at
amortized
cost,
which
approximates
market
value,
and
are
categorized
as
Level
2
in
the
hierarchy.
Municipal
securities,
long-term
U.S.
government
obligations
and
corporate
debt
securities
are
valued
in
accordance
with
the
evaluated
price
supplied
by
a
pricing
service
and
generally
categorized
as
Level
2
in
the
hierarchy.
Other
securities
that
are
categorized
as
Level
2
in
the
hierarchy
include,
but
are
not
limited
to,
warrants
that
do
not
trade
on
an
exchange,
securities
valued
at
the
mean
between
MONONGAHELA
ALL
CAP
VALUE
FUND
NOTES
TO
FINANCIAL
STATEMENTS
April
30,
2023
11
the
last
reported
bid
and
ask
quotation
and
international
equity
securities
valued
by
an
independent
third
party
with
adjustments
for
changes
in
value
between
the
time
of
the
securities’
respective
local
market
closes
and
the
close
of
the
U.S.
market.
Level
3
-
Significant
unobservable
inputs
(including
the
Fund’s
own
assumptions
in
determining
the
fair
value
of
investments).
The
aggregate
value
by
input
level,
as
of
April
30,
2023,
for
the
Fund’s
investments
is
included
in
the
Fund’s
Schedule
of
Investments.
Security
Transactions,
Investment
Income
and
Realized
Gain
and
Loss
Investment
transactions
are
accounted
for
on
the
trade
date.
Dividend
income
is
recorded
on
the
ex-dividend
date.
Foreign
dividend
income
is
recorded
on
the
ex-
dividend
date
or
as
soon
as
possible
after
determining
the
existence
of
a
dividend
declaration
after
exercising
reasonable
due
diligence.
Income
and
capital
gains
on
some
foreign
securities
may
be
subject
to
foreign
withholding
taxes,
which
are
accrued
as
applicable.
Interest
income
is
recorded
on
an
accrual
basis.
Premium
is
amortized
to
the
next
call
date
above
par
and
discount
is
accreted
to
maturity
using
the
effective
interest
method.
Identified
cost
of
investments
sold
is
used
to
determine
the
gain
and
loss
for
both
financial
statement
and
federal
income
tax
purposes.
Distributions
to
Shareholders
The
Fund
declares
any
dividends
from
net
investment
income
and
pays
them
annually.
Any
net
capital
gains
and
net
foreign
currency
gains