0001193125-13-396362.txt : 20131010 0001193125-13-396362.hdr.sgml : 20131010 20131010134541 ACCESSION NUMBER: 0001193125-13-396362 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 7 FILED AS OF DATE: 20131010 DATE AS OF CHANGE: 20131010 EFFECTIVENESS DATE: 20131010 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: 131145497 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 S000041724 Forward Select Income Opportunity Fund C000129543 Advisor Class FSOMX C000129544 Investor Class FSORX C000129545 Institutional Class FSOTX C000129546 Class A FSONX C000129547 Class C FSOCX 497 1 d603823d497.htm FORM 497 XBRL Form 497 XBRL

Forward Funds

101 California Street, 16th Floor

San Francisco, California 94111

October 10, 2013

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 1, 2013, to the Prospectus dated July 31, 2013, for Class A, Class B, Class C, Advisor Class, Investor Class and Institutional Class shares of the Forward Select Income Opportunity Fund (the “Fund”). The purpose of the filing is to submit the 497(c) filing dated October 1, 2013 in XBRL for the Fund.

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

Sincerely,

/s/ Robert S. Naka                                

Robert S. Naka

Secretary and Vice President, Funds

EX-101.INS 2 ff-20131001.xml XBRL INSTANCE DOCUMENT 0000889188 2012-08-01 2013-07-31 0000889188 ff:S000041724Member ff:NoLoadMember 2012-08-01 2013-07-31 0000889188 ff:S000041724Member ff:LoadMember 2012-08-01 2013-07-31 2013-07-31 Forward Funds 0000889188 2013-10-01 Other 2013-07-31 false 2013-10-01 <p style="margin-top:0px;margin-bottom:0px" align="center"><b>FORWARD FUNDS </b></p><p style="margin-top:0px;margin-bottom:0px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px" align="center"><b>Supplement dated October&nbsp;1, 2013 </b></p> <p style="margin-top:0px;margin-bottom:0px" align="center"><b>to the </b></p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px" align="center">Investor Class and Institutional Class Prospectus (&#8220;No-Load Prospectus&#8221;) and </p> <p style="margin-top:0px;margin-bottom:0px" align="center">Class&nbsp;A, Class&nbsp;B, Class C and Advisor Class Prospectus (&#8220;Load Prospectus&#8221;) for the </p> <p style="margin-top:0px;margin-bottom:0px" align="center">Forward Dynamic Income Fund and Forward Select Income Opportunity Fund </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px" align="center"><b>each dated July&nbsp;31, 2013 </b></p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px" align="center"><b>IMPORTANT NOTICE REGARDING THE FORWARD SELECT INCOME OPPORTUNITY FUND </b></p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:-2%">Effective immediately, the following changes are made: </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px">The &#8220;Annual Fund Operating Expenses&#8221; table and the &#8220;Examples&#8221; table for the Forward Select Income Opportunity Fund (the &#8220;Fund&#8221;) in the No-Load Prospectus are replaced to read as follows: </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%"><b>Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) </b></p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <table cellspacing="0" cellpadding="0" width="92%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="86%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td></tr> <tr> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Investor<br/>Class</b></td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Institutional<br/>Class</b></td> <td valign="bottom">&nbsp;</td></tr> <tr > <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Management Fee</div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1.00</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1.00</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Distribution (12b-1) Fees</div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">0.25</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">N/A</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td></tr> <tr > <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:1.20em">Other Expenses<sup>(1)</sup></div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1.11</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1.01</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:1.20em">Interest Expense on Borrowing<sup>(1)</sup></div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">0.07</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">0.07</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr > <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:1.20em">Interest Expense on Short Sales<sup>(1)</sup></div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">0.01</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">0.01</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Total Other Expenses</div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1.19</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1.09</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr > <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Acquired Fund Fees and Expenses<sup>(1)(2)</sup></div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">0.53</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">0.53</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr> <td valign="top" style="border-bottom:1px solid #000000"><b>Total Annual Fund Operating Expenses</b></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>&nbsp;</b></td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right"><b>2.97</b></td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>%&nbsp;</b></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>&nbsp;</b></td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right"><b>2.62</b></td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>%&nbsp;</b></td></tr> <tr > <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Fee Waiver and/or Expense Reimbursement<sup>(3)</sup></div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">&#150;0.78</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">&#150;0.78</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr> <td valign="top" style="border-bottom:1px solid #000000"><b>Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement</b></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>&nbsp;</b></td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right"><b>2.19</b></td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>%&nbsp;</b></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>&nbsp;</b></td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right"><b>1.84</b></td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>%&nbsp;</b></td></tr> </table> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <table style="border-collapse:collapse" border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td width="5%">&nbsp;</td> <td width="3%" valign="top" align="left">(1)</td> <td width="1%" valign="top">&nbsp;</td> <td align="left" valign="top">Other Expenses, Interest Expense on Borrowing, Interest Expense on Short Sales and Acquired Fund Fees and Expenses are based on estimated amounts for the current fiscal year. </td> <td width="4%">&nbsp;</td></tr></table> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <table style="border-collapse:collapse" border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td width="5%">&nbsp;</td> <td width="3%" valign="top" align="left">(2)</td> <td width="1%" valign="top">&nbsp;</td> <td align="left" valign="top">The Fund may invest a portion of its assets in a wholly-owned Cayman subsidiary. Acquired Fund Fees and Expenses include the expenses (other than the management fee) borne by the Fund as the sole shareholder of the Subsidiary (as defined below), including administrative and custody fees. The Subsidiary has entered into a separate advisory agreement with Forward Management, LLC (&#8220;Forward Management&#8221;) for the management of the Subsidiary&#8217;s portfolio pursuant to which the Subsidiary is obligated to pay Forward Management a management fee at the same rate that the Fund pays Forward Management for services provided to the Fund. Forward Management is contractually obligated to waive the management fee it receives from the Fund in an amount equal to the management fee paid to Forward Management by the Subsidiary. This waiver arrangement may not be terminated by Forward Management as long as its advisory agreement with the Subsidiary is in place. </td> <td width="4%">&nbsp;</td></tr></table> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <table style="border-collapse:collapse" border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td width="5%">&nbsp;</td> <td width="3%" valign="top" align="left">(3)</td> <td width="1%" valign="top">&nbsp;</td> <td align="left" valign="top">The Fund&#8217;s investment advisor is contractually obligated to waive a portion of its fees and reimburse other expenses until April&nbsp;30, 2015 in amounts necessary to limit the Fund&#8217;s operating expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired funds fees and expenses, expenses of the Subsidiary, and extraordinary expenses) for Investor Class and Institutional Class shares to an annual rate (as a percentage of the Fund&#8217;s average daily net assets) of 1.58% and 1.23%, respectively. This expense limitation arrangement may not be terminated by the Fund&#8217;s investment advisor prior to such date under any circumstances. </td> <td width="4%">&nbsp;</td></tr></table> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%"><b>Examples </b></p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%">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 $10,000 in the noted class of shares for the time periods indicated. The Examples also assume that your investment has a 5% return each year, that the Fund&#8217;s total annual operating expenses remain the same and that the contractual fee waiver/reimbursement is in place for the first year. Although actual costs may be higher or lower, based on these assumptions your costs whether or not you redeemed your shares would be: </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <table cellspacing="0" cellpadding="0" width="92%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="86%"></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td></tr> <tr> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Investor<br/>Class</b></td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Institutional<br/>Class</b></td> <td valign="bottom">&nbsp;</td></tr> <tr > <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">1 Year</div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">222</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">187</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td></tr> <tr> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">3 Years</div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">844</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">739</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td></tr> </table> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px" align="center">**** </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px">The &#8220;Annual Fund Operating Expenses&#8221; table and the &#8220;Examples&#8221; table for the Fund in the Load Prospectus are replaced to read as follows: </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%"><b>Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) </b></p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <table cellspacing="0" cellpadding="0" width="92%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="85%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td></tr> <tr> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Class&nbsp;A</b></td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Class&nbsp;C</b></td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Advisor<br/>Class</b></td> <td valign="bottom">&nbsp;</td></tr> <tr > <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Management Fee</div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1.00</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1.00</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1.00</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Distribution (12b-1) Fees</div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">0.35</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">0.75</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">N/A</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td></tr> <tr > <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:1.20em">Other Expenses<sup>(1)</sup></div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1.16</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1.21</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1.06</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:1.20em">Interest Expense on Borrowing<sup>(1)</sup></div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">0.07</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">0.07</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">0.07</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr > <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:1.20em">Interest Expense on Short Sales<sup>(1)</sup></div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">0.01</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">0.01</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">0.01</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Total Other Expenses</div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1.24</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1.29</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1.14</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr > <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Acquired Fund Fees and Expenses<sup>(1)(2)</sup></div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">0.53</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">0.53</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">0.53</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr> <td valign="top" style="border-bottom:1px solid #000000"><b>Total Annual Fund Operating Expenses</b></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>&nbsp;</b></td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right"><b>3.12</b></td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>%&nbsp;</b></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>&nbsp;</b></td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right"><b>3.57</b></td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>%&nbsp;</b></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>&nbsp;</b></td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right"><b>2.67</b></td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>%&nbsp;</b></td></tr> <tr > <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Fee Waiver and/or Expense Reimbursement<sup>(3)</sup></div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">&#150;0.78</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">&#150;0.78</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">&#150;0.78</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr> <td valign="top" style="border-bottom:1px solid #000000"><b>Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement</b></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>&nbsp;</b></td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right"><b>2.34</b></td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>%&nbsp;</b></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>&nbsp;</b></td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right"><b>2.79</b></td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>%&nbsp;</b></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>&nbsp;</b></td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right"><b>1.89</b></td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>%&nbsp;</b></td></tr> </table> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <table style="border-collapse:collapse" border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td width="5%">&nbsp;</td> <td width="3%" valign="top" align="left">(1)</td> <td width="1%" valign="top">&nbsp;</td> <td align="left" valign="top">Other Expenses, Interest Expense on Borrowing, Interest Expense on Short Sales and Acquired Fund Fees and Expenses are based on estimated amounts for the current fiscal year. </td> <td width="4%">&nbsp;</td></tr></table> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <table style="border-collapse:collapse" border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td width="5%">&nbsp;</td> <td width="3%" valign="top" align="left">(2)</td> <td width="1%" valign="top">&nbsp;</td> <td align="left" valign="top">The Fund may invest a portion of its assets in a wholly-owned Cayman subsidiary. Acquired Fund Fees and Expenses include the expenses (other than the management fee) borne by the Fund as the sole shareholder of the Subsidiary (as defined below), including administrative and custody fees. The Subsidiary has entered into a separate advisory agreement with Forward Management, LLC (&#8220;Forward Management&#8221;) for the management of the Subsidiary&#8217;s portfolio pursuant to which the Subsidiary is obligated to pay Forward Management a management fee at the same rate that the Fund pays Forward Management for services provided to the Fund. Forward Management is contractually obligated to waive the management fee it receives from the Fund in an amount equal to the management fee paid to Forward Management by the Subsidiary. This waiver arrangement may not be terminated by Forward Management as long as its advisory agreement with the Subsidiary is in place. </td> <td width="4%">&nbsp;</td></tr></table> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <table style="border-collapse:collapse" border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td width="5%">&nbsp;</td> <td width="3%" valign="top" align="left">(3)</td> <td width="1%" valign="top">&nbsp;</td> <td align="left" valign="top">The Fund&#8217;s investment advisor is contractually obligated to waive a portion of its fees and reimburse other expenses until April&nbsp;30, 2015 in amounts necessary to limit the Fund&#8217;s operating expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired funds fees and expenses, expenses of the Subsidiary, and extraordinary expenses) for Class&nbsp;A, Class C and Advisor Class shares to an annual rate (as a percentage of the Fund&#8217;s average daily net assets) of 1.73%, 2.18% and 1.28%, respectively. This expense limitation arrangement may not be terminated by the Fund&#8217;s investment advisor prior to such date under any circumstances. </td> <td width="4%">&nbsp;</td></tr></table> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%"><b>Examples </b></p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%">These Examples are intended to help you compare the costs of investing in Class&nbsp;A, Class C or Advisor Class shares of the Fund with the costs of investing in other mutual funds. The Examples assume that you invest $10,000 in the noted class of shares for the time periods indicated and then redeem all your shares at the end of those periods. The Examples also assume that your investment has a 5% return each year, that the Fund&#8217;s total annual operating expenses remain the same, and that the contractual fee waiver/reimbursement is in place for the first year. Although actual costs may be higher or lower, based on these assumptions your costs would be: </p> <br/><table cellspacing="0" cellpadding="0" width="92%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="83%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td></tr> <tr> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Class&nbsp;A</b></td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Class&nbsp;C</b></td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Advisor<br/>Class</b></td> <td valign="bottom">&nbsp;</td></tr> <tr > <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">1 Year</div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">798</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">382</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">192</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td></tr> <tr> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">3 Years</div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1,412</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1,021</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">754</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td></tr> </table> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%">You would pay the following expenses if you did not redeem your shares: </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p><table cellspacing="0" cellpadding="0" width="92%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="83%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td></tr> <tr> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Class&nbsp;A</b></td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Class&nbsp;C</b></td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Advisor<br/>Class</b></td> <td valign="bottom">&nbsp;</td></tr> <tr > <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">1 Year</div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">798</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">282</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">192</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td></tr> <tr> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">3 Years</div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1,412</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1,021</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">754</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td></tr> </table> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px" align="center">**** </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px">The fifth paragraph under the heading &#8220;Principal Investment Strategies&#8221; in the Fund&#8217;s &#8220;Fund Summary&#8221; section in the No-Load Prospectus and Load Prospectus is replaced in its entirety to read as follows: </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%">The Fund may invest directly or indirectly in restricted securities or securities that are deemed to not be readily marketable. The Fund&#8217;s investments in these securities may include equity or fixed income securities of U.S. and non-U.S. issuers that are issued through private offerings without registration with the SEC, including offerings outside the United States. </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%">The Fund has the ability to leverage its portfolio by borrowing money in an amount up to one-third of its assets to purchase securities. The Fund may also engage in transactions designed to hedge against changes in the price of the Fund&#8217;s portfolio securities, such as purchasing put options or selling securities short. </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px" align="center">**** </p> <p style="margin-top:0px;margin-bottom:0px" align="center"><b>FORWARD FUNDS </b></p><p style="margin-top:0px;margin-bottom:0px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px" align="center"><b>Supplement dated October&nbsp;1, 2013 </b></p> <p style="margin-top:0px;margin-bottom:0px" align="center"><b>to the </b></p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px" align="center">Investor Class and Institutional Class Prospectus (&#8220;No-Load Prospectus&#8221;) and </p> <p style="margin-top:0px;margin-bottom:0px" align="center">Class&nbsp;A, Class&nbsp;B, Class C and Advisor Class Prospectus (&#8220;Load Prospectus&#8221;) for the </p> <p style="margin-top:0px;margin-bottom:0px" align="center">Forward Dynamic Income Fund and Forward Select Income Opportunity Fund </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px" align="center"><b>each dated July&nbsp;31, 2013 </b></p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px" align="center"><b>IMPORTANT NOTICE REGARDING THE FORWARD SELECT INCOME OPPORTUNITY FUND </b></p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:-2%">Effective immediately, the following changes are made: </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p><p style="margin-top:0px;margin-bottom:0px">The &#8220;Annual Fund Operating Expenses&#8221; table and the &#8220;Examples&#8221; table for the Forward Select Income Opportunity Fund (the &#8220;Fund&#8221;) in the No-Load Prospectus are replaced to read as follows: </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%"><b>Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) </b></p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <table cellspacing="0" cellpadding="0" width="92%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="86%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td></tr> <tr> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Investor<br/>Class</b></td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Institutional<br/>Class</b></td> <td valign="bottom">&nbsp;</td></tr> <tr > <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Management Fee</div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1.00</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1.00</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Distribution (12b-1) Fees</div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">0.25</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">N/A</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td></tr> <tr > <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:1.20em">Other Expenses<sup>(1)</sup></div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1.11</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1.01</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:1.20em">Interest Expense on Borrowing<sup>(1)</sup></div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">0.07</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">0.07</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr > <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:1.20em">Interest Expense on Short Sales<sup>(1)</sup></div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">0.01</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">0.01</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Total Other Expenses</div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1.19</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1.09</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr > <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Acquired Fund Fees and Expenses<sup>(1)(2)</sup></div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">0.53</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">0.53</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr> <td valign="top" style="border-bottom:1px solid #000000"><b>Total Annual Fund Operating Expenses</b></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>&nbsp;</b></td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right"><b>2.97</b></td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>%&nbsp;</b></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>&nbsp;</b></td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right"><b>2.62</b></td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>%&nbsp;</b></td></tr> <tr > <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Fee Waiver and/or Expense Reimbursement<sup>(3)</sup></div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">&#150;0.78</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">&#150;0.78</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr> <td valign="top" style="border-bottom:1px solid #000000"><b>Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement</b></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>&nbsp;</b></td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right"><b>2.19</b></td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>%&nbsp;</b></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>&nbsp;</b></td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right"><b>1.84</b></td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>%&nbsp;</b></td></tr> </table> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <table style="border-collapse:collapse" border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td width="5%">&nbsp;</td> <td width="3%" valign="top" align="left">(1)</td> <td width="1%" valign="top">&nbsp;</td> <td align="left" valign="top">Other Expenses, Interest Expense on Borrowing, Interest Expense on Short Sales and Acquired Fund Fees and Expenses are based on estimated amounts for the current fiscal year. </td> <td width="4%">&nbsp;</td></tr></table> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <table style="border-collapse:collapse" border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td width="5%">&nbsp;</td> <td width="3%" valign="top" align="left">(2)</td> <td width="1%" valign="top">&nbsp;</td> <td align="left" valign="top">The Fund may invest a portion of its assets in a wholly-owned Cayman subsidiary. Acquired Fund Fees and Expenses include the expenses (other than the management fee) borne by the Fund as the sole shareholder of the Subsidiary (as defined below), including administrative and custody fees. The Subsidiary has entered into a separate advisory agreement with Forward Management, LLC (&#8220;Forward Management&#8221;) for the management of the Subsidiary&#8217;s portfolio pursuant to which the Subsidiary is obligated to pay Forward Management a management fee at the same rate that the Fund pays Forward Management for services provided to the Fund. Forward Management is contractually obligated to waive the management fee it receives from the Fund in an amount equal to the management fee paid to Forward Management by the Subsidiary. This waiver arrangement may not be terminated by Forward Management as long as its advisory agreement with the Subsidiary is in place. </td> <td width="4%">&nbsp;</td></tr></table> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <table style="border-collapse:collapse" border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td width="5%">&nbsp;</td> <td width="3%" valign="top" align="left">(3)</td> <td width="1%" valign="top">&nbsp;</td> <td align="left" valign="top">The Fund&#8217;s investment advisor is contractually obligated to waive a portion of its fees and reimburse other expenses until April&nbsp;30, 2015 in amounts necessary to limit the Fund&#8217;s operating expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired funds fees and expenses, expenses of the Subsidiary, and extraordinary expenses) for Investor Class and Institutional Class shares to an annual rate (as a percentage of the Fund&#8217;s average daily net assets) of 1.58% and 1.23%, respectively. This expense limitation arrangement may not be terminated by the Fund&#8217;s investment advisor prior to such date under any circumstances. </td> <td width="4%">&nbsp;</td></tr></table> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%"><b>Examples </b></p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%">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 $10,000 in the noted class of shares for the time periods indicated. The Examples also assume that your investment has a 5% return each year, that the Fund&#8217;s total annual operating expenses remain the same and that the contractual fee waiver/reimbursement is in place for the first year. Although actual costs may be higher or lower, based on these assumptions your costs whether or not you redeemed your shares would be: </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <table cellspacing="0" cellpadding="0" width="92%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="86%"></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td></tr> <tr> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Investor<br/>Class</b></td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Institutional<br/>Class</b></td> <td valign="bottom">&nbsp;</td></tr> <tr > <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">1 Year</div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">222</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">187</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td></tr> <tr> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">3 Years</div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">844</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">739</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td></tr> </table> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px" align="center">**** </p><p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px">The fifth paragraph under the heading &#8220;Principal Investment Strategies&#8221; in the Fund&#8217;s &#8220;Fund Summary&#8221; section in the No-Load Prospectus and Load Prospectus is replaced in its entirety to read as follows: </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%">The Fund may invest directly or indirectly in restricted securities or securities that are deemed to not be readily marketable. The Fund&#8217;s investments in these securities may include equity or fixed income securities of U.S. and non-U.S. issuers that are issued through private offerings without registration with the SEC, including offerings outside the United States. </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%">The Fund has the ability to leverage its portfolio by borrowing money in an amount up to one-third of its assets to purchase securities. The Fund may also engage in transactions designed to hedge against changes in the price of the Fund&#8217;s portfolio securities, such as purchasing put options or selling securities short. </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px" align="center">**** </p> <p style="margin-top:0px;margin-bottom:0px" align="center"><b>FORWARD FUNDS </b></p><p style="margin-top:0px;margin-bottom:0px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px" align="center"><b>Supplement dated October&nbsp;1, 2013 </b></p> <p style="margin-top:0px;margin-bottom:0px" align="center"><b>to the </b></p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px" align="center">Investor Class and Institutional Class Prospectus (&#8220;No-Load Prospectus&#8221;) and </p> <p style="margin-top:0px;margin-bottom:0px" align="center">Class&nbsp;A, Class&nbsp;B, Class C and Advisor Class Prospectus (&#8220;Load Prospectus&#8221;) for the </p> <p style="margin-top:0px;margin-bottom:0px" align="center">Forward Dynamic Income Fund and Forward Select Income Opportunity Fund </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px" align="center"><b>each dated July&nbsp;31, 2013 </b></p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px" align="center"><b>IMPORTANT NOTICE REGARDING THE FORWARD SELECT INCOME OPPORTUNITY FUND </b></p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:-2%">Effective immediately, the following changes are made: </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p><p style="margin-top:0px;margin-bottom:0px">The &#8220;Annual Fund Operating Expenses&#8221; table and the &#8220;Examples&#8221; table for the Fund in the Load Prospectus are replaced to read as follows: </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%"><b>Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) </b></p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <table cellspacing="0" cellpadding="0" width="92%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="85%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td></tr> <tr> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Class&nbsp;A</b></td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Class&nbsp;C</b></td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Advisor<br/>Class</b></td> <td valign="bottom">&nbsp;</td></tr> <tr > <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Management Fee</div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1.00</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1.00</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1.00</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Distribution (12b-1) Fees</div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">0.35</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">0.75</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">N/A</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td></tr> <tr > <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:1.20em">Other Expenses<sup>(1)</sup></div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1.16</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1.21</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1.06</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:1.20em">Interest Expense on Borrowing<sup>(1)</sup></div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">0.07</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">0.07</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">0.07</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr > <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:1.20em">Interest Expense on Short Sales<sup>(1)</sup></div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">0.01</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">0.01</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">0.01</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Total Other Expenses</div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1.24</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1.29</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1.14</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr > <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Acquired Fund Fees and Expenses<sup>(1)(2)</sup></div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">0.53</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">0.53</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">0.53</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr> <td valign="top" style="border-bottom:1px solid #000000"><b>Total Annual Fund Operating Expenses</b></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>&nbsp;</b></td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right"><b>3.12</b></td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>%&nbsp;</b></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>&nbsp;</b></td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right"><b>3.57</b></td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>%&nbsp;</b></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>&nbsp;</b></td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right"><b>2.67</b></td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>%&nbsp;</b></td></tr> <tr > <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Fee Waiver and/or Expense Reimbursement<sup>(3)</sup></div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">&#150;0.78</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">&#150;0.78</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">&#150;0.78</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr> <td valign="top" style="border-bottom:1px solid #000000"><b>Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement</b></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>&nbsp;</b></td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right"><b>2.34</b></td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>%&nbsp;</b></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>&nbsp;</b></td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right"><b>2.79</b></td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>%&nbsp;</b></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>&nbsp;</b></td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right"><b>1.89</b></td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>%&nbsp;</b></td></tr> </table> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <table style="border-collapse:collapse" border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td width="5%">&nbsp;</td> <td width="3%" valign="top" align="left">(1)</td> <td width="1%" valign="top">&nbsp;</td> <td align="left" valign="top">Other Expenses, Interest Expense on Borrowing, Interest Expense on Short Sales and Acquired Fund Fees and Expenses are based on estimated amounts for the current fiscal year. </td> <td width="4%">&nbsp;</td></tr></table> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <table style="border-collapse:collapse" border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td width="5%">&nbsp;</td> <td width="3%" valign="top" align="left">(2)</td> <td width="1%" valign="top">&nbsp;</td> <td align="left" valign="top">The Fund may invest a portion of its assets in a wholly-owned Cayman subsidiary. Acquired Fund Fees and Expenses include the expenses (other than the management fee) borne by the Fund as the sole shareholder of the Subsidiary (as defined below), including administrative and custody fees. The Subsidiary has entered into a separate advisory agreement with Forward Management, LLC (&#8220;Forward Management&#8221;) for the management of the Subsidiary&#8217;s portfolio pursuant to which the Subsidiary is obligated to pay Forward Management a management fee at the same rate that the Fund pays Forward Management for services provided to the Fund. Forward Management is contractually obligated to waive the management fee it receives from the Fund in an amount equal to the management fee paid to Forward Management by the Subsidiary. This waiver arrangement may not be terminated by Forward Management as long as its advisory agreement with the Subsidiary is in place. </td> <td width="4%">&nbsp;</td></tr></table> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <table style="border-collapse:collapse" border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td width="5%">&nbsp;</td> <td width="3%" valign="top" align="left">(3)</td> <td width="1%" valign="top">&nbsp;</td> <td align="left" valign="top">The Fund&#8217;s investment advisor is contractually obligated to waive a portion of its fees and reimburse other expenses until April&nbsp;30, 2015 in amounts necessary to limit the Fund&#8217;s operating expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired funds fees and expenses, expenses of the Subsidiary, and extraordinary expenses) for Class&nbsp;A, Class C and Advisor Class shares to an annual rate (as a percentage of the Fund&#8217;s average daily net assets) of 1.73%, 2.18% and 1.28%, respectively. This expense limitation arrangement may not be terminated by the Fund&#8217;s investment advisor prior to such date under any circumstances. </td> <td width="4%">&nbsp;</td></tr></table> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%"><b>Examples </b></p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%">These Examples are intended to help you compare the costs of investing in Class&nbsp;A, Class C or Advisor Class shares of the Fund with the costs of investing in other mutual funds. The Examples assume that you invest $10,000 in the noted class of shares for the time periods indicated and then redeem all your shares at the end of those periods. The Examples also assume that your investment has a 5% return each year, that the Fund&#8217;s total annual operating expenses remain the same, and that the contractual fee waiver/reimbursement is in place for the first year. Although actual costs may be higher or lower, based on these assumptions your costs would be: </p> <br/><table cellspacing="0" cellpadding="0" width="92%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="83%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td></tr> <tr> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Class&nbsp;A</b></td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Class&nbsp;C</b></td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Advisor<br/>Class</b></td> <td valign="bottom">&nbsp;</td></tr> <tr > <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">1 Year</div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">798</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">382</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">192</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td></tr> <tr> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">3 Years</div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1,412</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1,021</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">754</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td></tr> </table> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%">You would pay the following expenses if you did not redeem your shares: </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p><table cellspacing="0" cellpadding="0" width="92%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="83%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td></tr> <tr> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Class&nbsp;A</b></td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Class&nbsp;C</b></td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Advisor<br/>Class</b></td> <td valign="bottom">&nbsp;</td></tr> <tr > <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">1 Year</div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">798</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">282</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">192</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td></tr> <tr> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">3 Years</div></td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1,412</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1,021</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">754</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;&nbsp;</td></tr> </table> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px" align="center">**** </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px">The fifth paragraph under the heading &#8220;Principal Investment Strategies&#8221; in the Fund&#8217;s &#8220;Fund Summary&#8221; section in the No-Load Prospectus and Load Prospectus is replaced in its entirety to read as follows: </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%">The Fund may invest directly or indirectly in restricted securities or securities that are deemed to not be readily marketable. 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The Fund may also engage in transactions designed to hedge against changes in the price of the Fund&#8217;s portfolio securities, such as purchasing put options or selling securities short. </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px" align="center">**** </p> EX-101.SCH 3 ff-20131001.xsd XBRL TAXONOMY EXTENSION SCHEMA 000000 - Document - Document and Entity Information link:presentationLink link:calculationLink link:definitionLink 000011 - Document - Risk/Return Supplement {Unlabeled} - Forward Select Income Opportunity Fund link:presentationLink link:calculationLink link:definitionLink 000012 - Schedule - Shareholder Fees {- Forward Select Income Opportunity Fund} link:presentationLink link:calculationLink link:definitionLink 000013 - Schedule - Annual Fund Operating Expenses {- Forward Select Income Opportunity Fund} link:calculationLink link:presentationLink link:definitionLink 000014 - Schedule - Expense Example {Transposed} {- Forward Select Income Opportunity Fund} link:presentationLink link:calculationLink link:definitionLink 000015 - 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Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName Forward Funds
Prospectus Date rr_ProspectusDate Jul. 31, 2013
Document Creation Date dei_DocumentCreationDate Oct. 01, 2013
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Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName Forward Funds
Prospectus Date rr_ProspectusDate Jul. 31, 2013
Supplement [Text Block] ff_SupplementTextBlock

FORWARD FUNDS

 

 

Supplement dated October 1, 2013

to the

 

Investor Class and Institutional Class Prospectus (“No-Load Prospectus”) and

Class A, Class B, Class C and Advisor Class Prospectus (“Load Prospectus”) for the

Forward Dynamic Income Fund and Forward Select Income Opportunity Fund

 

each dated July 31, 2013

 

IMPORTANT NOTICE REGARDING THE FORWARD SELECT INCOME OPPORTUNITY FUND

 

Effective immediately, the following changes are made:

 

The “Annual Fund Operating Expenses” table and the “Examples” table for the Forward Select Income Opportunity Fund (the “Fund”) in the No-Load Prospectus are replaced to read as follows:

 

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)

 

     Investor
Class
    Institutional
Class
 
Management Fee
     1.00     1.00
Distribution (12b-1) Fees
     0.25     N/A   
Other Expenses(1)
     1.11     1.01
Interest Expense on Borrowing(1)
     0.07     0.07
Interest Expense on Short Sales(1)
     0.01     0.01
Total Other Expenses
     1.19     1.09
Acquired Fund Fees and Expenses(1)(2)
     0.53     0.53
Total Annual Fund Operating Expenses      2.97     2.62
Fee Waiver and/or Expense Reimbursement(3)
     –0.78     –0.78
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement      2.19     1.84

 

  (1)   Other Expenses, Interest Expense on Borrowing, Interest Expense on Short Sales and Acquired Fund Fees and Expenses are based on estimated amounts for the current fiscal year.  

 

  (2)   The Fund may invest a portion of its assets in a wholly-owned Cayman subsidiary. Acquired Fund Fees and Expenses include the expenses (other than the management fee) borne by the Fund as the sole shareholder of the Subsidiary (as defined below), including administrative and custody fees. The Subsidiary has entered into a separate advisory agreement with Forward Management, LLC (“Forward Management”) for the management of the Subsidiary’s portfolio pursuant to which the Subsidiary is obligated to pay Forward Management a management fee at the same rate that the Fund pays Forward Management for services provided to the Fund. Forward Management is contractually obligated to waive the management fee it receives from the Fund in an amount equal to the management fee paid to Forward Management by the Subsidiary. This waiver arrangement may not be terminated by Forward Management as long as its advisory agreement with the Subsidiary is in place.  

 

  (3)   The Fund’s investment advisor is contractually obligated to waive a portion of its fees and reimburse other expenses until April 30, 2015 in amounts necessary to limit the Fund’s operating expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired funds fees and expenses, expenses of the Subsidiary, 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 1.58% and 1.23%, respectively. This expense limitation arrangement may not be terminated by the Fund’s investment advisor prior to such date under any circumstances.  

 

Examples

 

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:

 

     Investor
Class
     Institutional
Class
 
1 Year
   $ 222       $ 187   
3 Years
   $ 844       $ 739   

 

****

 

The “Annual Fund Operating Expenses” table and the “Examples” table for the Fund in the Load Prospectus are replaced to read as follows:

 

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)

 

     Class A     Class C     Advisor
Class
 
Management Fee
     1.00     1.00     1.00
Distribution (12b-1) Fees
     0.35     0.75     N/A   
Other Expenses(1)
     1.16     1.21     1.06
Interest Expense on Borrowing(1)
     0.07     0.07     0.07
Interest Expense on Short Sales(1)
     0.01     0.01     0.01
Total Other Expenses
     1.24     1.29     1.14
Acquired Fund Fees and Expenses(1)(2)
     0.53     0.53     0.53
Total Annual Fund Operating Expenses      3.12     3.57     2.67
Fee Waiver and/or Expense Reimbursement(3)
     –0.78     –0.78     –0.78
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement      2.34     2.79     1.89

 

  (1)   Other Expenses, Interest Expense on Borrowing, Interest Expense on Short Sales and Acquired Fund Fees and Expenses are based on estimated amounts for the current fiscal year.  

 

  (2)   The Fund may invest a portion of its assets in a wholly-owned Cayman subsidiary. Acquired Fund Fees and Expenses include the expenses (other than the management fee) borne by the Fund as the sole shareholder of the Subsidiary (as defined below), including administrative and custody fees. The Subsidiary has entered into a separate advisory agreement with Forward Management, LLC (“Forward Management”) for the management of the Subsidiary’s portfolio pursuant to which the Subsidiary is obligated to pay Forward Management a management fee at the same rate that the Fund pays Forward Management for services provided to the Fund. Forward Management is contractually obligated to waive the management fee it receives from the Fund in an amount equal to the management fee paid to Forward Management by the Subsidiary. This waiver arrangement may not be terminated by Forward Management as long as its advisory agreement with the Subsidiary is in place.  

 

  (3)   The Fund’s investment advisor is contractually obligated to waive a portion of its fees and reimburse other expenses until April 30, 2015 in amounts necessary to limit the Fund’s operating expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired funds fees and expenses, expenses of the Subsidiary, and extraordinary expenses) for Class A, Class C and Advisor Class shares to an annual rate (as a percentage of the Fund’s average daily net assets) of 1.73%, 2.18% and 1.28%, respectively. This expense limitation arrangement may not be terminated by the Fund’s investment advisor prior to such date under any circumstances.  

 

Examples

 

These Examples are intended to help you compare the costs of investing in Class A, Class C or Advisor 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 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:


     Class A      Class C      Advisor
Class
 
1 Year
   $ 798       $ 382       $ 192   
3 Years
   $ 1,412       $ 1,021       $ 754   

 

You would pay the following expenses if you did not redeem your shares:

 

     Class A      Class C      Advisor
Class
 
1 Year
   $ 798       $ 282       $ 192   
3 Years
   $ 1,412       $ 1,021       $ 754   

 

****

 

The fifth paragraph under the heading “Principal Investment Strategies” in the Fund’s “Fund Summary” section in the No-Load Prospectus and Load Prospectus is replaced in its entirety to read as follows:

 

The Fund may invest directly or indirectly in restricted securities or securities that are deemed to not be readily marketable. The Fund’s investments in these securities may include equity or fixed income securities of U.S. and non-U.S. issuers that are issued through private offerings without registration with the SEC, including offerings outside the United States.

 

The Fund has the ability to leverage its portfolio by borrowing money in an amount up to one-third of its assets to purchase securities. The Fund may also engage in transactions designed to hedge against changes in the price of the Fund’s portfolio securities, such as purchasing put options or selling securities short.

 

****

No Load | Forward Select Income Opportunity Fund
 
Risk/Return: rr_RiskReturnAbstract  
Supplement [Text Block] ff_SupplementTextBlock

FORWARD FUNDS

 

 

Supplement dated October 1, 2013

to the

 

Investor Class and Institutional Class Prospectus (“No-Load Prospectus”) and

Class A, Class B, Class C and Advisor Class Prospectus (“Load Prospectus”) for the

Forward Dynamic Income Fund and Forward Select Income Opportunity Fund

 

each dated July 31, 2013

 

IMPORTANT NOTICE REGARDING THE FORWARD SELECT INCOME OPPORTUNITY FUND

 

Effective immediately, the following changes are made:

 

The “Annual Fund Operating Expenses” table and the “Examples” table for the Forward Select Income Opportunity Fund (the “Fund”) in the No-Load Prospectus are replaced to read as follows:

 

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)

 

     Investor
Class
    Institutional
Class
 
Management Fee
     1.00     1.00
Distribution (12b-1) Fees
     0.25     N/A   
Other Expenses(1)
     1.11     1.01
Interest Expense on Borrowing(1)
     0.07     0.07
Interest Expense on Short Sales(1)
     0.01     0.01
Total Other Expenses
     1.19     1.09
Acquired Fund Fees and Expenses(1)(2)
     0.53     0.53
Total Annual Fund Operating Expenses      2.97     2.62
Fee Waiver and/or Expense Reimbursement(3)
     –0.78     –0.78
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement      2.19     1.84

 

  (1)   Other Expenses, Interest Expense on Borrowing, Interest Expense on Short Sales and Acquired Fund Fees and Expenses are based on estimated amounts for the current fiscal year.  

 

  (2)   The Fund may invest a portion of its assets in a wholly-owned Cayman subsidiary. Acquired Fund Fees and Expenses include the expenses (other than the management fee) borne by the Fund as the sole shareholder of the Subsidiary (as defined below), including administrative and custody fees. The Subsidiary has entered into a separate advisory agreement with Forward Management, LLC (“Forward Management”) for the management of the Subsidiary’s portfolio pursuant to which the Subsidiary is obligated to pay Forward Management a management fee at the same rate that the Fund pays Forward Management for services provided to the Fund. Forward Management is contractually obligated to waive the management fee it receives from the Fund in an amount equal to the management fee paid to Forward Management by the Subsidiary. This waiver arrangement may not be terminated by Forward Management as long as its advisory agreement with the Subsidiary is in place.  

 

  (3)   The Fund’s investment advisor is contractually obligated to waive a portion of its fees and reimburse other expenses until April 30, 2015 in amounts necessary to limit the Fund’s operating expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired funds fees and expenses, expenses of the Subsidiary, 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 1.58% and 1.23%, respectively. This expense limitation arrangement may not be terminated by the Fund’s investment advisor prior to such date under any circumstances.  

 

Examples

 

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:

 

     Investor
Class
     Institutional
Class
 
1 Year
   $ 222       $ 187   
3 Years
   $ 844       $ 739   

 

****

 

The fifth paragraph under the heading “Principal Investment Strategies” in the Fund’s “Fund Summary” section in the No-Load Prospectus and Load Prospectus is replaced in its entirety to read as follows:

 

The Fund may invest directly or indirectly in restricted securities or securities that are deemed to not be readily marketable. The Fund’s investments in these securities may include equity or fixed income securities of U.S. and non-U.S. issuers that are issued through private offerings without registration with the SEC, including offerings outside the United States.

 

The Fund has the ability to leverage its portfolio by borrowing money in an amount up to one-third of its assets to purchase securities. The Fund may also engage in transactions designed to hedge against changes in the price of the Fund’s portfolio securities, such as purchasing put options or selling securities short.

 

****

Load | Forward Select Income Opportunity Fund
 
Risk/Return: rr_RiskReturnAbstract  
Supplement [Text Block] ff_SupplementTextBlock

FORWARD FUNDS

 

 

Supplement dated October 1, 2013

to the

 

Investor Class and Institutional Class Prospectus (“No-Load Prospectus”) and

Class A, Class B, Class C and Advisor Class Prospectus (“Load Prospectus”) for the

Forward Dynamic Income Fund and Forward Select Income Opportunity Fund

 

each dated July 31, 2013

 

IMPORTANT NOTICE REGARDING THE FORWARD SELECT INCOME OPPORTUNITY FUND

 

Effective immediately, the following changes are made:

 

The “Annual Fund Operating Expenses” table and the “Examples” table for the Fund in the Load Prospectus are replaced to read as follows:

 

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)

 

     Class A     Class C     Advisor
Class
 
Management Fee
     1.00     1.00     1.00
Distribution (12b-1) Fees
     0.35     0.75     N/A   
Other Expenses(1)
     1.16     1.21     1.06
Interest Expense on Borrowing(1)
     0.07     0.07     0.07
Interest Expense on Short Sales(1)
     0.01     0.01     0.01
Total Other Expenses
     1.24     1.29     1.14
Acquired Fund Fees and Expenses(1)(2)
     0.53     0.53     0.53
Total Annual Fund Operating Expenses      3.12     3.57     2.67
Fee Waiver and/or Expense Reimbursement(3)
     –0.78     –0.78     –0.78
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement      2.34     2.79     1.89

 

  (1)   Other Expenses, Interest Expense on Borrowing, Interest Expense on Short Sales and Acquired Fund Fees and Expenses are based on estimated amounts for the current fiscal year.  

 

  (2)   The Fund may invest a portion of its assets in a wholly-owned Cayman subsidiary. Acquired Fund Fees and Expenses include the expenses (other than the management fee) borne by the Fund as the sole shareholder of the Subsidiary (as defined below), including administrative and custody fees. The Subsidiary has entered into a separate advisory agreement with Forward Management, LLC (“Forward Management”) for the management of the Subsidiary’s portfolio pursuant to which the Subsidiary is obligated to pay Forward Management a management fee at the same rate that the Fund pays Forward Management for services provided to the Fund. Forward Management is contractually obligated to waive the management fee it receives from the Fund in an amount equal to the management fee paid to Forward Management by the Subsidiary. This waiver arrangement may not be terminated by Forward Management as long as its advisory agreement with the Subsidiary is in place.  

 

  (3)   The Fund’s investment advisor is contractually obligated to waive a portion of its fees and reimburse other expenses until April 30, 2015 in amounts necessary to limit the Fund’s operating expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired funds fees and expenses, expenses of the Subsidiary, and extraordinary expenses) for Class A, Class C and Advisor Class shares to an annual rate (as a percentage of the Fund’s average daily net assets) of 1.73%, 2.18% and 1.28%, respectively. This expense limitation arrangement may not be terminated by the Fund’s investment advisor prior to such date under any circumstances.  

 

Examples

 

These Examples are intended to help you compare the costs of investing in Class A, Class C or Advisor 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 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:


     Class A      Class C      Advisor
Class
 
1 Year
   $ 798       $ 382       $ 192   
3 Years
   $ 1,412       $ 1,021       $ 754   

 

You would pay the following expenses if you did not redeem your shares:

 

     Class A      Class C      Advisor
Class
 
1 Year
   $ 798       $ 282       $ 192   
3 Years
   $ 1,412       $ 1,021       $ 754   

 

****

 

The fifth paragraph under the heading “Principal Investment Strategies” in the Fund’s “Fund Summary” section in the No-Load Prospectus and Load Prospectus is replaced in its entirety to read as follows:

 

The Fund may invest directly or indirectly in restricted securities or securities that are deemed to not be readily marketable. The Fund’s investments in these securities may include equity or fixed income securities of U.S. and non-U.S. issuers that are issued through private offerings without registration with the SEC, including offerings outside the United States.

 

The Fund has the ability to leverage its portfolio by borrowing money in an amount up to one-third of its assets to purchase securities. The Fund may also engage in transactions designed to hedge against changes in the price of the Fund’s portfolio securities, such as purchasing put options or selling securities short.

 

****

XML 14 R2.htm IDEA: XBRL DOCUMENT v2.4.0.8

FORWARD FUNDS

 

 

Supplement dated October 1, 2013

to the

 

Investor Class and Institutional Class Prospectus (“No-Load Prospectus”) and

Class A, Class B, Class C and Advisor Class Prospectus (“Load Prospectus”) for the

Forward Dynamic Income Fund and Forward Select Income Opportunity Fund

 

each dated July 31, 2013

 

IMPORTANT NOTICE REGARDING THE FORWARD SELECT INCOME OPPORTUNITY FUND

 

Effective immediately, the following changes are made:

 

The “Annual Fund Operating Expenses” table and the “Examples” table for the Forward Select Income Opportunity Fund (the “Fund”) in the No-Load Prospectus are replaced to read as follows:

 

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)

 

     Investor
Class
    Institutional
Class
 
Management Fee
     1.00     1.00
Distribution (12b-1) Fees
     0.25     N/A   
Other Expenses(1)
     1.11     1.01
Interest Expense on Borrowing(1)
     0.07     0.07
Interest Expense on Short Sales(1)
     0.01     0.01
Total Other Expenses
     1.19     1.09
Acquired Fund Fees and Expenses(1)(2)
     0.53     0.53
Total Annual Fund Operating Expenses      2.97     2.62
Fee Waiver and/or Expense Reimbursement(3)
     –0.78     –0.78
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement      2.19     1.84

 

  (1)   Other Expenses, Interest Expense on Borrowing, Interest Expense on Short Sales and Acquired Fund Fees and Expenses are based on estimated amounts for the current fiscal year.  

 

  (2)   The Fund may invest a portion of its assets in a wholly-owned Cayman subsidiary. Acquired Fund Fees and Expenses include the expenses (other than the management fee) borne by the Fund as the sole shareholder of the Subsidiary (as defined below), including administrative and custody fees. The Subsidiary has entered into a separate advisory agreement with Forward Management, LLC (“Forward Management”) for the management of the Subsidiary’s portfolio pursuant to which the Subsidiary is obligated to pay Forward Management a management fee at the same rate that the Fund pays Forward Management for services provided to the Fund. Forward Management is contractually obligated to waive the management fee it receives from the Fund in an amount equal to the management fee paid to Forward Management by the Subsidiary. This waiver arrangement may not be terminated by Forward Management as long as its advisory agreement with the Subsidiary is in place.  

 

  (3)   The Fund’s investment advisor is contractually obligated to waive a portion of its fees and reimburse other expenses until April 30, 2015 in amounts necessary to limit the Fund’s operating expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired funds fees and expenses, expenses of the Subsidiary, 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 1.58% and 1.23%, respectively. This expense limitation arrangement may not be terminated by the Fund’s investment advisor prior to such date under any circumstances.  

 

Examples

 

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:

 

     Investor
Class
     Institutional
Class
 
1 Year
   $ 222       $ 187   
3 Years
   $ 844       $ 739   

 

****

 

The “Annual Fund Operating Expenses” table and the “Examples” table for the Fund in the Load Prospectus are replaced to read as follows:

 

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)

 

     Class A     Class C     Advisor
Class
 
Management Fee
     1.00     1.00     1.00
Distribution (12b-1) Fees
     0.35     0.75     N/A   
Other Expenses(1)
     1.16     1.21     1.06
Interest Expense on Borrowing(1)
     0.07     0.07     0.07
Interest Expense on Short Sales(1)
     0.01     0.01     0.01
Total Other Expenses
     1.24     1.29     1.14
Acquired Fund Fees and Expenses(1)(2)
     0.53     0.53     0.53
Total Annual Fund Operating Expenses      3.12     3.57     2.67
Fee Waiver and/or Expense Reimbursement(3)
     –0.78     –0.78     –0.78
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement      2.34     2.79     1.89

 

  (1)   Other Expenses, Interest Expense on Borrowing, Interest Expense on Short Sales and Acquired Fund Fees and Expenses are based on estimated amounts for the current fiscal year.  

 

  (2)   The Fund may invest a portion of its assets in a wholly-owned Cayman subsidiary. Acquired Fund Fees and Expenses include the expenses (other than the management fee) borne by the Fund as the sole shareholder of the Subsidiary (as defined below), including administrative and custody fees. The Subsidiary has entered into a separate advisory agreement with Forward Management, LLC (“Forward Management”) for the management of the Subsidiary’s portfolio pursuant to which the Subsidiary is obligated to pay Forward Management a management fee at the same rate that the Fund pays Forward Management for services provided to the Fund. Forward Management is contractually obligated to waive the management fee it receives from the Fund in an amount equal to the management fee paid to Forward Management by the Subsidiary. This waiver arrangement may not be terminated by Forward Management as long as its advisory agreement with the Subsidiary is in place.  

 

  (3)   The Fund’s investment advisor is contractually obligated to waive a portion of its fees and reimburse other expenses until April 30, 2015 in amounts necessary to limit the Fund’s operating expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired funds fees and expenses, expenses of the Subsidiary, and extraordinary expenses) for Class A, Class C and Advisor Class shares to an annual rate (as a percentage of the Fund’s average daily net assets) of 1.73%, 2.18% and 1.28%, respectively. This expense limitation arrangement may not be terminated by the Fund’s investment advisor prior to such date under any circumstances.  

 

Examples

 

These Examples are intended to help you compare the costs of investing in Class A, Class C or Advisor 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 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:


     Class A      Class C      Advisor
Class
 
1 Year
   $ 798       $ 382       $ 192   
3 Years
   $ 1,412       $ 1,021       $ 754   

 

You would pay the following expenses if you did not redeem your shares:

 

     Class A      Class C      Advisor
Class
 
1 Year
   $ 798       $ 282       $ 192   
3 Years
   $ 1,412       $ 1,021       $ 754   

 

****

 

The fifth paragraph under the heading “Principal Investment Strategies” in the Fund’s “Fund Summary” section in the No-Load Prospectus and Load Prospectus is replaced in its entirety to read as follows:

 

The Fund may invest directly or indirectly in restricted securities or securities that are deemed to not be readily marketable. The Fund’s investments in these securities may include equity or fixed income securities of U.S. and non-U.S. issuers that are issued through private offerings without registration with the SEC, including offerings outside the United States.

 

The Fund has the ability to leverage its portfolio by borrowing money in an amount up to one-third of its assets to purchase securities. The Fund may also engage in transactions designed to hedge against changes in the price of the Fund’s portfolio securities, such as purchasing put options or selling securities short.

 

****

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Document and Entity Information
12 Months Ended
Jul. 31, 2013
Risk/Return:  
Document Type Other
Document Period End Date Jul. 31, 2013
Registrant Name Forward Funds
Central Index Key 0000889188
Amendment Flag false
Document Creation Date Oct. 01, 2013
Document Effective Date Oct. 01, 2013
Prospectus Date Jul. 31, 2013