0001193125-18-268999.txt : 20180907 0001193125-18-268999.hdr.sgml : 20180907 20180907131412 ACCESSION NUMBER: 0001193125-18-268999 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 15 FILED AS OF DATE: 20180907 DATE AS OF CHANGE: 20180907 EFFECTIVENESS DATE: 20180907 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: 181059531 BUSINESS ADDRESS: STREET 1: 345 CALIFORNIA STREET STREET 2: SUITE 1600 CITY: SAN FRANCISCO STATE: CA ZIP: 94104 BUSINESS PHONE: 800-232-0224 MAIL ADDRESS: STREET 1: 345 CALIFORNIA STREET STREET 2: SUITE 1600 CITY: SAN FRANCISCO STATE: CA ZIP: 94104 FORMER COMPANY: FORMER CONFORMED NAME: HOMESTATE GROUP DATE OF NAME CHANGE: 19920929 0000889188 S000025529 Salient International Real Estate Fund C000076429 Class A KIRAX C000076431 Class C KIRCX C000076433 Investor Class FFIRX C000076434 Institutional Class KIRYX C000100472 Class I2 FINMX 497 1 d609676d497.htm 497 497

FORWARD FUNDS

345 California Street, Suite 1600

San Francisco, CA 94104

September 7, 2018

VIA EDGAR

U.S. 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 and 811-06722

    

Salient Global Real Estate Fund (f/k/a Salient International Real Estate Fund)

Dear Sir or Madam:

On behalf of the Registrant and pursuant to Rule 497(e) 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 the 497(e) supplement filed and dated August 20, 2018 to the Prospectuses dated May 1, 2018, as supplemented, for the Investor Class, Institutional Class, Class A, Class C and Class I2 of the Salient Global Real Estate Fund (f/k/a Salient International Real Estate Fund) (Accession Number: 0001193125-18-252996) (the “Fund”). The purpose of this filing is to submit the Fund’s August 20, 2018 497(e) filing in XBRL.

If you have any questions regarding this filing, please contact me at the Registrant’s service provider, ALPS Fund Services, Inc., via telephone at (720) 917-0566 or via email at vilma.valdez@alpsinc.com.

Sincerely,

/s/ Vilma V. DeVooght                 

Vilma V. DeVooght, Esq.

Enclosures

 

cc:

Jonathan W. DePriest, Esq., Salient Partners, L.P.

    

Paul Bachtold, Chief Compliance Officer, Forward Funds

    

Barbara H. Tolle, Treasurer, Forward Funds

    

George J. Zornada, Esq., K&L Gates LLP

    

Richard F. Kerr, Esq., K&L Gates LLP

EX-101.INS 2 ff-20180820.xml XBRL INSTANCE DOCUMENT 0000889188 2018-05-01 2018-05-01 0000889188 ff:LoadMember ff:S000025529Member 2018-05-01 2018-05-01 0000889188 ff:NoLoadMember ff:S000025529Member 2018-05-01 2018-05-01 2018-05-01 497 2017-12-31 Forward Funds 0000889188 false 2018-08-20 2018-08-20 <p style="margin-top:0px;margin-bottom:0px" align="center"><b>FORWARD FUNDS </b></p> <p style="line-height:4px;margin-top:0px;margin-bottom:2px;border-bottom:0.5pt solid #000000">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px" align="center"><b>Supplement dated August&nbsp;20, 2018 </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">Salient International Real Estate Fund Investor Class, Institutional Class&nbsp;and Class&nbsp;I2 Prospectus (&#147;No-Load Prospectus&#148;) and </p> <p style="margin-top:0px;margin-bottom:0px" align="center">Salient International Real Estate Fund Class&nbsp;A and Class&nbsp;C Prospectus (&#147;Load Prospectus&#148;) </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px" align="center"><b>each dated May&nbsp;1, 2018, as supplemented (collectively, the &#147;Prospectus&#148;) </b></p> <p style="margin-top:0px;margin-bottom:0px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px" align="center"><b>IMPORTANT NOTICE REGARDING CHANGES TO FUND NAME, FEES AND EXPENSES, PRINCIPAL INVESTMENT STRATEGIES, AND </b></p> <p style="margin-top:0px;margin-bottom:0px" align="center"><b>PERFORMANCE INFORMATION </b></p> <p style="margin-top:0px;margin-bottom:0px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px">At a meeting of the Board of Trustees of Forward Funds (the &#147;Trust&#148;) held on June&nbsp;8, 2018, the Trustees, including all of the Trustees who are not &#147;interested persons&#148; of the Trust (the &#147;Independent Trustees,&#148; as that term is defined in the Investment Company Act of 1940, as amended (the &#147;1940 Act&#148;)), approved, on behalf of the Salient International Real Estate Fund (the &#147;Fund&#148;): (i) a change to the Fund&#146;s name; (ii)&nbsp;the introduction of expense limits for the Fund; (iii)&nbsp;changes to the principal investment strategies of the Fund; and (iv)&nbsp;changes to the Fund&#146;s benchmark and performance information section. </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px">The Fund&#146;s Prospectus was supplemented reflecting these changes on June&nbsp;13, 2018 (the &#147;June 13 Supplement&#148;). This supplement replaces the June&nbsp;13 Supplement in its entirety. </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px">Accordingly, effective on or about August&nbsp;21, 2018, the following changes shall be reflected in the Fund&#146;s registration statement: </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px"><b>Change to Fund Name </b></p> <p style="margin-top:0px;margin-bottom:0px">Effective on or about August&nbsp;21, 2018, the name of the Fund is changed to correspond with the following table: </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <table cellspacing="0" cellpadding="0" width="70%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="61%"></td> <td valign="bottom"></td> <td width="38%"></td></tr> <tr style="page-break-inside:avoid"> <td valign="bottom"><b>Current Fund Name</b></td> <td valign="bottom"></td> <td valign="bottom" align="center"> <div style="border-bottom:1px solid #000000 ; display:table-cell;" align="center"><b>Fund&nbsp;Name&nbsp;Effective&nbsp;On&nbsp;Or&nbsp;About&nbsp;August&nbsp;21,&nbsp;2018</b></div></td></tr> <tr style=""> <td height="5"></td> <td height="5" colspan="2"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Salient International Real Estate Fund</div></td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;</td> <td valign="top" style="border-bottom:1px solid #000000">Salient&nbsp;Global&nbsp;Real&nbsp;Estate&nbsp;Fund</td></tr> </table> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px">All references to the Fund by its name in the Prospectus are hereby replaced with &#147;Salient Global Real Estate Fund.&#148; </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px"><b>Introduction of Expense Limits </b></p> <p style="margin-top:0px;margin-bottom:0px">Effective on or about August&nbsp;21, 2018, Forward Management d/b/a Salient (&#147;Salient Management&#148;) has agreed to enter into a management fee waiver and expense limitation agreement with the Fund which will reduce the management fee of the Fund to 0.75% on all assets and limit the net annual operating expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired fund fees and expenses, and extraordinary expenses) of the Fund&#146;s Class&nbsp;A (1.55%), Class&nbsp;C (2.10%), Investor Class (1.50%), Institutional Class (1.15%) and Class&nbsp;I2 (1.10%) shares, effective until April&nbsp;30, 2020. Accordingly, the following information shall be incorporated into the Fund&#146;s &#147;Fund Summary&#148; sections of the registration statement: </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <table style="border-collapse:collapse" border="0" cellpadding="0" cellspacing="0" width="100%"> <tr style = "page-break-inside:avoid"> <td width="4%" valign="top" align="left">1.</td> <td align="left" valign="top"> <div style="" align="left">The &#147;Annual Fund Operating Expenses&#148; table and the &#147;Examples&#148; table for the Fund in the No-Load Prospectus shall be replaced to read as follows: </div></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>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="73%"></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> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td></tr> <tr style="page-break-inside:avoid"> <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&nbsp;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&nbsp;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>Class&nbsp;I2</b></td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <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;&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;&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 style="page-break-inside:avoid"> <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;&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;</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">N/A</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:2.00em">Other 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">1.14%</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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">1.04%</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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">0.99%</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em"><b>Total Annual Fund Operating Expenses</b></div></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>2.39%</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;&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>2.04%</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;&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>1.99%</b></td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>&nbsp;</b></td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Fee Waiver and 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;0.89%</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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;0.89%</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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;0.89%</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em"><b>Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement</b></div></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>1.50%</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;&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>1.15%</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;&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>1.10%</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 style = "page-break-inside:avoid"> <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 for Class&nbsp;I2 shares 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 style = "page-break-inside:avoid"> <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">Other Expenses for Investor Class&nbsp;and Institutional Class&nbsp;shares include shareholder services fees that may be temporarily suspended by the Fund, in which case, the fees may not accrue to the full amounts payable. </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 style = "page-break-inside:avoid"> <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"> <div align="left">The Fund&#146;s investment advisor is contractually obligated to waive 0.25% of the Fund&#146;s management fee so that until April&nbsp;30, 2020 the Fund&#146;s management fee will be 0.75%. Additionally, the Fund&#146;s investment advisor is contractually obligated until April&nbsp;30, 2020 to limit the Fund&#146;s operating expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired fund fees and expenses, and extraordinary expenses) for Investor Class, Institutional Class&nbsp;and Class&nbsp;I2 shares to an annual rate (as a percentage of the Fund&#146;s average daily net assets) of 1.50%, 1.15% and 1.10%, respectively. Each of the management fee waiver and the expense limitation arrangement may not be terminated by the Fund&#146;s investment advisor prior to such date under any circumstances and may only be modified or terminated by a majority vote of the Independent Trustees. Under the expense limitation agreement, the Fund&#146;s investment advisor is permitted to recoup expenses attributable to the Fund or a Class&nbsp;thereof that the investment advisor has borne (whether through a further reduction of its management fee or otherwise) in later periods to the extent that the expenses for a Class&nbsp;of shares fall below the annual rate in effect at the time of the actual waiver/reimbursement. Under the expense limitation agreement, the Fund is not obligated to reimburse such expenses beyond three years from the end of the fiscal year in which the investment advisor waived a fee or reimbursed an expense. Any such recoupment by the investment advisor will not cause a class to exceed the annual limitation rate in effect at the time of the actual waiver/reimbursement or at the date of the recoupment.</div></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:0px; margin-left:4%;margin-right:4%">These Examples are intended to help you compare the costs of investing in Investor Class, Institutional Class&nbsp;or Class&nbsp;I2 shares of the Fund with the costs of investing in other mutual funds. The Examples assume that you invest $10,000 in the noted class of shares of the Fund for the time periods indicated. The Examples also assume that your investment has a 5% return each year, that the Fund&#146;s total annual operating expenses remain the same, and that the contractual fee waiver/reimbursement is in place for the first two years. </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%">Although actual costs may be higher or lower, based on these assumptions your costs whether or not you redeemed your shares would be: </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <table cellspacing="0" cellpadding="0" width="92%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="73%"></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td></tr> <tr style="page-break-inside:avoid"> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Investor&nbsp;Class</b></td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Institutional&nbsp;Class</b></td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Class&nbsp;I2</b></td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">1 Year</div></td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">153</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">117</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">112</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <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">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">570</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">462</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">447</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">5 Years</div></td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1,108</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">928</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">902</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">10 Years</div></td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">2,582</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">2,218</td> <td valign="bottom" style="border-bottom:1px solid #000000">&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">2,166</td> <td valign="bottom" style="border-bottom:1px solid #000000">&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 style = "page-break-inside:avoid"> <td width="4%" valign="top" align="left">2.</td> <td align="left" valign="top"> <div style="" align="left">The &#147;Annual Fund Operating Expenses&#148; table and the &#147;Examples&#148; tables for the Fund in the Load Prospectus shall be replaced to read as follows: </div></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>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="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td></tr> <tr style="page-break-inside:avoid"> <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></tr> <tr style="page-break-inside:avoid"> <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;&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 style="page-break-inside:avoid"> <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;&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></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:2.00em">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">1.19%</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em"><b>Total Annual Fund Operating Expenses</b></div></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>2.44%</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;&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>2.99%</b></td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>&nbsp;</b></td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Fee Waiver and Expense Reimbursement<sup>(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">&#150;0.89%</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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;0.89%</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em"><b>Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement</b></div></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>1.55%</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;&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>2.10%</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 style = "page-break-inside:avoid"> <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 for Class&nbsp;A shares include shareholder services fees that may be temporarily suspended by the Fund, in which case, the fees may not accrue to the full amounts payable. </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 style = "page-break-inside:avoid"> <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&#146;s investment advisor is contractually obligated to waive 0.25% of the Fund&#146;s management fee so that until April&nbsp;30, 2020 the Fund&#146;s management fee will be 0.75%. Additionally, the Fund&#146;s investment advisor is contractually obligated until April&nbsp;30, 2020 to limit the Fund&#146;s operating expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired fund fees and expenses, and extraordinary expenses) for Class&nbsp;A and Class&nbsp;C shares to an annual rate (as a percentage of the Fund&#146;s average daily net assets) of 1.55% and 2.10%, respectively. Each of the management fee waiver and the expense limitation arrangement may not be terminated by the Fund&#146;s investment advisor prior to such date under any circumstances and may only be modified or terminated by a majority vote of the Independent Trustees. Under the expense limitation agreement, the Fund&#146;s investment advisor is permitted to recoup expenses attributable to the Fund or a Class&nbsp;thereof that the investment advisor has borne (whether through a further reduction of its management fee or otherwise) in later periods to the extent that the expenses for a Class&nbsp;of shares fall below the annual rate in effect at the time of the actual waiver/reimbursement. Under the expense limitation agreement, the Fund is not obligated to reimburse such expenses beyond three years from the end of the fiscal year in which the investment advisor waived a fee or reimbursed an expense. Any such recoupment by the investment advisor will not cause a class to exceed the annual limitation rate in effect at the time of the actual waiver/reimbursement or at the date of the recoupment. </td> <td width="4%">&nbsp;</td></tr></table> <p style="margin-top:6px;margin-bottom:0px; margin-left:4%;margin-right:4%"><b>Examples </b></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 or Class&nbsp;C shares of the Fund with the costs of investing in other mutual funds. The Examples assume that you invest $10,000 in the noted class of shares of the Fund for the time periods indicated and then redeem all your shares at the end of those periods. The Examples also assume that your investment has a 5% return each year, that the Fund&#146;s total annual operating expenses remain the same, and that the contractual fee waiver/reimbursement is in place for the first two years. </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%">Although actual costs may be higher or lower, based on these assumptions your costs would be: </p> <p style="margin-top:0px;margin-bottom:0px">&nbsp;</p> <table cellspacing="0" cellpadding="0" width="92%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="88%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td></tr> <tr style="page-break-inside:avoid"> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Class&nbsp;A</b></td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Class&nbsp;C</b></td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">1 Year</div></td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">724</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">313</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">3 Years</div></td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1,126</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">752</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">5 Years</div></td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1,644</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1,410</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">10 Years</div></td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">3,056</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">3,173</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> </table> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%">You would pay the following expenses if you did not redeem your shares: </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <table cellspacing="0" cellpadding="0" width="92%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="88%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td></tr> <tr style="page-break-inside:avoid"> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Class&nbsp;A</b></td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Class&nbsp;C</b></td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">1 Year</div></td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">724</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">213</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">3 Years</div></td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1,126</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">752</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">5 Years</div></td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1,644</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1,410</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">10 Years</div></td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">3,056</td> <td valign="bottom" style="border-bottom:1px solid #000000">&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">3,173</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> </table> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px"><b>Changes to Principal Investment Strategies </b></p> <p style="margin-top:0px;margin-bottom:0px">Effective on or about August&nbsp;21, 2018, the Fund will operate as a diversified fund, and all references to the fund being non-diversified are hereby removed from the Prospectus. </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px">Additionally, the Fund&#146;s Principal Investment Strategies section is replaced in its entirety 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%">Under normal conditions, the Fund invests at least 80%, and usually substantially all, of its net assets plus borrowings for investment purposes, if any, in common stocks and other equity securities issued by U.S. and non-U.S. real estate companies, including real estate investment trusts (&#147;REITs&#148;) and similar REIT-like entities in at least three different countries. The Fund may invest in equity securities, debt securities, limited partnership interests, exchange-traded funds (&#147;ETFs&#148;), American Depositary Receipts and European Depositary Receipts, and its investments may include other securities, such as synthetic instruments. Synthetic instruments are investments that have economic characteristics similar to the Fund&#146;s direct investments, and may include rights, warrants, futures, and options. The Fund may invest in securities of companies having any capitalization and investment grade debt securities. The Fund may also leverage its portfolio by borrowing money to purchase securities. </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%">Under normal market conditions, the Fund will invest significantly (at least 40%) in real estate companies organized or located outside the U.S. or doing a substantial amount of business outside the U.S. The Fund allocates its assets among various regions and countries, including the United States (but in no less than three different countries). The Fund considers a company that derives at least 50% of its revenue from business outside the U.S. or has at least 50% of its assets outside the U.S. as doing a substantial amount of business outside the U.S. The non-U.S. companies in which the Fund invests may include those domiciled in emerging market countries. Typically, emerging markets are in countries that are in the process of industrialization, with lower gross national products per capita than more developed countries. The Fund is not limited in the extent to which it may invest in emerging market companies. </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%">Forward Management, LLC d/b/a Salient (&#147;Salient Management&#148; or the &#147;Advisor&#148;) allocates the Fund&#146;s assets among securities of countries and in currency denominations that are expected to provide the best opportunities for meeting the Fund&#146;s investment objective. In analyzing specific companies for possible investment, the Advisor utilizes fundamental real estate analysis and quantitative analysis to select investments for the Fund, including analyzing a company&#146;s management and strategic focus, evaluating the location, physical attributes and cash flow generating capacity of a company&#146;s properties and calculating relative return potential among other things. </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 write (sell) call options and purchase put options on individual stocks or broad-based stock indices, including ETFs that replicate such indices. The Fund may also enter into put option spreads, which consist of paired purchased and written options with different strike prices on the same stock or index. The Fund generally intends to use option strategies to seek to generate premium income, acquire a security at a specified price, or reduce the Fund&#146;s exposure to market risk and volatility.</p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px"><b>Change to Fund Benchmark and Performance Information Section </b></p> <p style="margin-top:0px;margin-bottom:0px">Effective on or about August&nbsp;21, 2018, the FTSE EPRA/NAREIT Developed Index will replace the FTSE EPRA/NAREIT Developed ex-US Index as the Fund&#146;s benchmark index because the new index more closely aligns to the Fund&#146;s investment strategies as updated by this supplement. Additionally, the Fund will add the broad-based market index the MSCI World Index to its Average Annual Total Returns table. Accordingly, the following information shall be incorporated into the &#147;Performance Information&#148; section of the Prospectus: </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px"><b>Average Annual Total Returns For the period ended December&nbsp;31, 2017 </b></p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style="border-collapse:collapse"> <tr> <td width="69%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td></tr> <tr style="page-break-inside:avoid"> <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>1&nbsp;Year</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>5&nbsp;Years</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>10&nbsp;Years</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>Since&nbsp;Inception</b></td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em"><b>Salient International Real Estate Fund &#150; Class</b><b></b><b>&nbsp;A</b> (Inception: 4/28/06)</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">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Return Before Taxes</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">14.35</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">1.48</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">0.98</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">2.33</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Return After Taxes on Distributions</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">11.43</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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;0.76</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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;1.56</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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;0.01</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Return After Taxes on Distributions and Sale of Fund Shares</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">8.33</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">0.17</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">-0.33</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">0.86</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em"><b>Salient International Real Estate Fund &#150; Class&nbsp;C</b> (Inception: 4/28/06)</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">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Return Before Taxes</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">19.73</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">2.13</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">0.93</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">2.18</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em"><b>FTSE EPRA/NAREIT Developed ex-US Index</b></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">20.82</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">5.48</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">2.12</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">3.82</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em"><b>FTSE EPRA/NAREIT Developed Index</b></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">10.36</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">6.32</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">3.28</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">4.11</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em"><b>MSCI World Index</b></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">23.07</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">12.26</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">5.63</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">6.47</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em"><b>Salient International Real Estate Fund &#150; Institutional Class</b> (Inception: 4/28/06)</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">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Return Before Taxes</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">21.88</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">3.11</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">1.92</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">3.18</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Return After Taxes on Distributions</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">18.60</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">0.65</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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;0.77</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">0.71</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Return After Taxes on Distributions and Sale of Fund Shares</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">12.60</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">1.31</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">0.31</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">1.46</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em"><b>FTSE EPRA/NAREIT Developed ex-US Index</b></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">20.82</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">5.48</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">2.12</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">3.82</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em"><b>FTSE EPRA/NAREIT Developed Index</b></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">10.36</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">6.32</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">3.28</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">4.11</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em"><b>MSCI World Index</b></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">23.07</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">12.26</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">5.63</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">6.47</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em"><b>Salient International Real Estate Fund &#150; Investor Class</b> (Inception: 5/2/11)</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">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Return Before Taxes</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">21.44</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">2.78</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">N/A</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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">4.87</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em"><b>FTSE EPRA/NAREIT Developed ex-US Index</b></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">20.82</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">5.48</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">N/A</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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">5.67</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em"><b>FTSE EPRA/NAREIT Developed Index</b></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">10.36</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">6.32</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">N/A</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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">6.24</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em"><b>MSCI World Index</b></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">23.07</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">12.26</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">N/A</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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">9.21</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> </table> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px">After-tax returns are calculated using the historical highest individual Federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor&#146;s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown only for the Class&nbsp;A and Institutional Class&nbsp;shares. After-tax returns for other classes will vary. </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px">Corresponding changes will also be made to the section of the Prospectus describing the indices used by the Forward Funds. </p> <p style="margin-top:0px;margin-bottom:0px" align="center"><b>FORWARD FUNDS </b></p> <p style="line-height:4px;margin-top:0px;margin-bottom:2px;border-bottom:0.5pt solid #000000">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px" align="center"><b>Supplement dated August&nbsp;20, 2018 </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">Salient International Real Estate Fund Investor Class, Institutional Class&nbsp;and Class&nbsp;I2 Prospectus (&#147;No-Load Prospectus&#148;) and </p> <p style="margin-top:0px;margin-bottom:0px" align="center">Salient International Real Estate Fund Class&nbsp;A and Class&nbsp;C Prospectus (&#147;Load Prospectus&#148;) </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px" align="center"><b>each dated May&nbsp;1, 2018, as supplemented (collectively, the &#147;Prospectus&#148;) </b></p> <p style="margin-top:0px;margin-bottom:0px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px" align="center"><b>IMPORTANT NOTICE REGARDING CHANGES TO FUND NAME, FEES AND EXPENSES, PRINCIPAL INVESTMENT STRATEGIES, AND </b></p> <p style="margin-top:0px;margin-bottom:0px" align="center"><b>PERFORMANCE INFORMATION </b></p> <p style="margin-top:0px;margin-bottom:0px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px">At a meeting of the Board of Trustees of Forward Funds (the &#147;Trust&#148;) held on June&nbsp;8, 2018, the Trustees, including all of the Trustees who are not &#147;interested persons&#148; of the Trust (the &#147;Independent Trustees,&#148; as that term is defined in the Investment Company Act of 1940, as amended (the &#147;1940 Act&#148;)), approved, on behalf of the Salient International Real Estate Fund (the &#147;Fund&#148;): (i) a change to the Fund&#146;s name; (ii)&nbsp;the introduction of expense limits for the Fund; (iii)&nbsp;changes to the principal investment strategies of the Fund; and (iv)&nbsp;changes to the Fund&#146;s benchmark and performance information section. </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px">The Fund&#146;s Prospectus was supplemented reflecting these changes on June&nbsp;13, 2018 (the &#147;June 13 Supplement&#148;). This supplement replaces the June&nbsp;13 Supplement in its entirety. </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px">Accordingly, effective on or about August&nbsp;21, 2018, the following changes shall be reflected in the Fund&#146;s registration statement: </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px"><b>Change to Fund Name </b></p> <p style="margin-top:0px;margin-bottom:0px">Effective on or about August&nbsp;21, 2018, the name of the Fund is changed to correspond with the following table: </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <table cellspacing="0" cellpadding="0" width="70%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="61%"></td> <td valign="bottom"></td> <td width="38%"></td></tr> <tr style="page-break-inside:avoid"> <td valign="bottom"><b>Current Fund Name</b></td> <td valign="bottom"></td> <td valign="bottom" align="center"> <div style="border-bottom:1px solid #000000 ; display:table-cell;" align="center"><b>Fund&nbsp;Name&nbsp;Effective&nbsp;On&nbsp;Or&nbsp;About&nbsp;August&nbsp;21,&nbsp;2018</b></div></td></tr> <tr style=""> <td height="5"></td> <td height="5" colspan="2"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Salient International Real Estate Fund</div></td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;</td> <td valign="top" style="border-bottom:1px solid #000000">Salient&nbsp;Global&nbsp;Real&nbsp;Estate&nbsp;Fund</td></tr> </table> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px">All references to the Fund by its name in the Prospectus are hereby replaced with &#147;Salient Global Real Estate Fund.&#148; </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px"><b>Introduction of Expense Limits </b></p> <p style="margin-top:0px;margin-bottom:0px">Effective on or about August&nbsp;21, 2018, Forward Management d/b/a Salient (&#147;Salient Management&#148;) has agreed to enter into a management fee waiver and expense limitation agreement with the Fund which will reduce the management fee of the Fund to 0.75% on all assets and limit the net annual operating expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired fund fees and expenses, and extraordinary expenses) of the Fund&#146;s Class&nbsp;A (1.55%), Class&nbsp;C (2.10%), Investor Class (1.50%), Institutional Class (1.15%) and Class&nbsp;I2 (1.10%) shares, effective until April&nbsp;30, 2020. Accordingly, the following information shall be incorporated into the Fund&#146;s &#147;Fund Summary&#148; sections of the registration statement: </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p><table style="border-collapse:collapse" border="0" cellpadding="0" cellspacing="0" width="100%"> <tr style = "page-break-inside:avoid"> <td width="4%" valign="top" align="left">2.</td> <td align="left" valign="top"> <div style="" align="left">The &#147;Annual Fund Operating Expenses&#148; table and the &#147;Examples&#148; tables for the Fund in the Load Prospectus shall be replaced to read as follows: </div></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>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="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td></tr> <tr style="page-break-inside:avoid"> <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></tr> <tr style="page-break-inside:avoid"> <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;&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 style="page-break-inside:avoid"> <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;&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></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:2.00em">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">1.19%</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em"><b>Total Annual Fund Operating Expenses</b></div></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>2.44%</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;&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>2.99%</b></td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>&nbsp;</b></td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Fee Waiver and Expense Reimbursement<sup>(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">&#150;0.89%</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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;0.89%</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em"><b>Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement</b></div></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>1.55%</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;&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>2.10%</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 style = "page-break-inside:avoid"> <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 for Class&nbsp;A shares include shareholder services fees that may be temporarily suspended by the Fund, in which case, the fees may not accrue to the full amounts payable. </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 style = "page-break-inside:avoid"> <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&#146;s investment advisor is contractually obligated to waive 0.25% of the Fund&#146;s management fee so that until April&nbsp;30, 2020 the Fund&#146;s management fee will be 0.75%. Additionally, the Fund&#146;s investment advisor is contractually obligated until April&nbsp;30, 2020 to limit the Fund&#146;s operating expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired fund fees and expenses, and extraordinary expenses) for Class&nbsp;A and Class&nbsp;C shares to an annual rate (as a percentage of the Fund&#146;s average daily net assets) of 1.55% and 2.10%, respectively. Each of the management fee waiver and the expense limitation arrangement may not be terminated by the Fund&#146;s investment advisor prior to such date under any circumstances and may only be modified or terminated by a majority vote of the Independent Trustees. Under the expense limitation agreement, the Fund&#146;s investment advisor is permitted to recoup expenses attributable to the Fund or a Class&nbsp;thereof that the investment advisor has borne (whether through a further reduction of its management fee or otherwise) in later periods to the extent that the expenses for a Class&nbsp;of shares fall below the annual rate in effect at the time of the actual waiver/reimbursement. Under the expense limitation agreement, the Fund is not obligated to reimburse such expenses beyond three years from the end of the fiscal year in which the investment advisor waived a fee or reimbursed an expense. Any such recoupment by the investment advisor will not cause a class to exceed the annual limitation rate in effect at the time of the actual waiver/reimbursement or at the date of the recoupment. </td> <td width="4%">&nbsp;</td></tr></table> <p style="margin-top:6px;margin-bottom:0px; margin-left:4%;margin-right:4%"><b>Examples </b></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 or Class&nbsp;C shares of the Fund with the costs of investing in other mutual funds. The Examples assume that you invest $10,000 in the noted class of shares of the Fund for the time periods indicated and then redeem all your shares at the end of those periods. The Examples also assume that your investment has a 5% return each year, that the Fund&#146;s total annual operating expenses remain the same, and that the contractual fee waiver/reimbursement is in place for the first two years. </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%">Although actual costs may be higher or lower, based on these assumptions your costs would be: </p> <p style="margin-top:0px;margin-bottom:0px">&nbsp;</p> <table cellspacing="0" cellpadding="0" width="92%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="88%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td></tr> <tr style="page-break-inside:avoid"> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Class&nbsp;A</b></td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Class&nbsp;C</b></td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">1 Year</div></td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">724</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">313</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">3 Years</div></td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1,126</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">752</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">5 Years</div></td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1,644</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1,410</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">10 Years</div></td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">3,056</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">3,173</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> </table> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%">You would pay the following expenses if you did not redeem your shares: </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <table cellspacing="0" cellpadding="0" width="92%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="88%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td></tr> <tr style="page-break-inside:avoid"> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Class&nbsp;A</b></td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Class&nbsp;C</b></td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">1 Year</div></td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">724</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">213</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">3 Years</div></td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1,126</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">752</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">5 Years</div></td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1,644</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1,410</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">10 Years</div></td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">3,056</td> <td valign="bottom" style="border-bottom:1px solid #000000">&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">3,173</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> </table><p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px"><b>Changes to Principal Investment Strategies </b></p> <p style="margin-top:0px;margin-bottom:0px">Effective on or about August&nbsp;21, 2018, the Fund will operate as a diversified fund, and all references to the fund being non-diversified are hereby removed from the Prospectus. </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px">Additionally, the Fund&#146;s Principal Investment Strategies section is replaced in its entirety 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%">Under normal conditions, the Fund invests at least 80%, and usually substantially all, of its net assets plus borrowings for investment purposes, if any, in common stocks and other equity securities issued by U.S. and non-U.S. real estate companies, including real estate investment trusts (&#147;REITs&#148;) and similar REIT-like entities in at least three different countries. The Fund may invest in equity securities, debt securities, limited partnership interests, exchange-traded funds (&#147;ETFs&#148;), American Depositary Receipts and European Depositary Receipts, and its investments may include other securities, such as synthetic instruments. Synthetic instruments are investments that have economic characteristics similar to the Fund&#146;s direct investments, and may include rights, warrants, futures, and options. The Fund may invest in securities of companies having any capitalization and investment grade debt securities. The Fund may also leverage its portfolio by borrowing money to purchase securities. </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%">Under normal market conditions, the Fund will invest significantly (at least 40%) in real estate companies organized or located outside the U.S. or doing a substantial amount of business outside the U.S. The Fund allocates its assets among various regions and countries, including the United States (but in no less than three different countries). The Fund considers a company that derives at least 50% of its revenue from business outside the U.S. or has at least 50% of its assets outside the U.S. as doing a substantial amount of business outside the U.S. The non-U.S. companies in which the Fund invests may include those domiciled in emerging market countries. Typically, emerging markets are in countries that are in the process of industrialization, with lower gross national products per capita than more developed countries. The Fund is not limited in the extent to which it may invest in emerging market companies. </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%">Forward Management, LLC d/b/a Salient (&#147;Salient Management&#148; or the &#147;Advisor&#148;) allocates the Fund&#146;s assets among securities of countries and in currency denominations that are expected to provide the best opportunities for meeting the Fund&#146;s investment objective. In analyzing specific companies for possible investment, the Advisor utilizes fundamental real estate analysis and quantitative analysis to select investments for the Fund, including analyzing a company&#146;s management and strategic focus, evaluating the location, physical attributes and cash flow generating capacity of a company&#146;s properties and calculating relative return potential among other things. </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 write (sell) call options and purchase put options on individual stocks or broad-based stock indices, including ETFs that replicate such indices. The Fund may also enter into put option spreads, which consist of paired purchased and written options with different strike prices on the same stock or index. The Fund generally intends to use option strategies to seek to generate premium income, acquire a security at a specified price, or reduce the Fund&#146;s exposure to market risk and volatility.</p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px"><b>Change to Fund Benchmark and Performance Information Section </b></p> <p style="margin-top:0px;margin-bottom:0px">Effective on or about August&nbsp;21, 2018, the FTSE EPRA/NAREIT Developed Index will replace the FTSE EPRA/NAREIT Developed ex-US Index as the Fund&#146;s benchmark index because the new index more closely aligns to the Fund&#146;s investment strategies as updated by this supplement. Additionally, the Fund will add the broad-based market index the MSCI World Index to its Average Annual Total Returns table. Accordingly, the following information shall be incorporated into the &#147;Performance Information&#148; section of the Prospectus: </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px"><b>Average Annual Total Returns For the period ended December&nbsp;31, 2017 </b></p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style="border-collapse:collapse"> <tr> <td width="69%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td></tr> <tr style="page-break-inside:avoid"> <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>1&nbsp;Year</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>5&nbsp;Years</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>10&nbsp;Years</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>Since&nbsp;Inception</b></td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em"><b>Salient International Real Estate Fund &#150; Class</b><b></b><b>&nbsp;A</b> (Inception: 4/28/06)</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">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Return Before Taxes</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">14.35</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">1.48</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">0.98</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">2.33</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Return After Taxes on Distributions</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">11.43</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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;0.76</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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;1.56</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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;0.01</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Return After Taxes on Distributions and Sale of Fund Shares</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">8.33</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">0.17</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">-0.33</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">0.86</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em"><b>Salient International Real Estate Fund &#150; Class&nbsp;C</b> (Inception: 4/28/06)</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">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Return Before Taxes</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">19.73</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">2.13</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">0.93</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">2.18</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em"><b>FTSE EPRA/NAREIT Developed ex-US Index</b></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">20.82</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">5.48</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">2.12</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">3.82</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em"><b>FTSE EPRA/NAREIT Developed Index</b></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">10.36</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">6.32</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">3.28</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">4.11</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em"><b>MSCI World Index</b></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">23.07</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">12.26</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">5.63</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">6.47</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> </table> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px">After-tax returns are calculated using the historical highest individual Federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor&#146;s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown only for the Class&nbsp;A and Institutional Class&nbsp;shares. After-tax returns for other classes will vary. </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px">Corresponding changes will also be made to the section of the Prospectus describing the indices used by the Forward Funds. </p> <p style="margin-top:0px;margin-bottom:0px" align="center"><b>FORWARD FUNDS </b></p> <p style="line-height:4px;margin-top:0px;margin-bottom:2px;border-bottom:0.5pt solid #000000">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px" align="center"><b>Supplement dated August&nbsp;20, 2018 </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">Salient International Real Estate Fund Investor Class, Institutional Class&nbsp;and Class&nbsp;I2 Prospectus (&#147;No-Load Prospectus&#148;) and </p> <p style="margin-top:0px;margin-bottom:0px" align="center">Salient International Real Estate Fund Class&nbsp;A and Class&nbsp;C Prospectus (&#147;Load Prospectus&#148;) </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px" align="center"><b>each dated May&nbsp;1, 2018, as supplemented (collectively, the &#147;Prospectus&#148;) </b></p> <p style="margin-top:0px;margin-bottom:0px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px" align="center"><b>IMPORTANT NOTICE REGARDING CHANGES TO FUND NAME, FEES AND EXPENSES, PRINCIPAL INVESTMENT STRATEGIES, AND </b></p> <p style="margin-top:0px;margin-bottom:0px" align="center"><b>PERFORMANCE INFORMATION </b></p> <p style="margin-top:0px;margin-bottom:0px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px">At a meeting of the Board of Trustees of Forward Funds (the &#147;Trust&#148;) held on June&nbsp;8, 2018, the Trustees, including all of the Trustees who are not &#147;interested persons&#148; of the Trust (the &#147;Independent Trustees,&#148; as that term is defined in the Investment Company Act of 1940, as amended (the &#147;1940 Act&#148;)), approved, on behalf of the Salient International Real Estate Fund (the &#147;Fund&#148;): (i) a change to the Fund&#146;s name; (ii)&nbsp;the introduction of expense limits for the Fund; (iii)&nbsp;changes to the principal investment strategies of the Fund; and (iv)&nbsp;changes to the Fund&#146;s benchmark and performance information section. </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px">The Fund&#146;s Prospectus was supplemented reflecting these changes on June&nbsp;13, 2018 (the &#147;June 13 Supplement&#148;). This supplement replaces the June&nbsp;13 Supplement in its entirety. </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px">Accordingly, effective on or about August&nbsp;21, 2018, the following changes shall be reflected in the Fund&#146;s registration statement: </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px"><b>Change to Fund Name </b></p> <p style="margin-top:0px;margin-bottom:0px">Effective on or about August&nbsp;21, 2018, the name of the Fund is changed to correspond with the following table: </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <table cellspacing="0" cellpadding="0" width="70%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="61%"></td> <td valign="bottom"></td> <td width="38%"></td></tr> <tr style="page-break-inside:avoid"> <td valign="bottom"><b>Current Fund Name</b></td> <td valign="bottom"></td> <td valign="bottom" align="center"> <div style="border-bottom:1px solid #000000 ; display:table-cell;" align="center"><b>Fund&nbsp;Name&nbsp;Effective&nbsp;On&nbsp;Or&nbsp;About&nbsp;August&nbsp;21,&nbsp;2018</b></div></td></tr> <tr style=""> <td height="5"></td> <td height="5" colspan="2"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Salient International Real Estate Fund</div></td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;</td> <td valign="top" style="border-bottom:1px solid #000000">Salient&nbsp;Global&nbsp;Real&nbsp;Estate&nbsp;Fund</td></tr> </table> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px">All references to the Fund by its name in the Prospectus are hereby replaced with &#147;Salient Global Real Estate Fund.&#148; </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px"><b>Introduction of Expense Limits </b></p> <p style="margin-top:0px;margin-bottom:0px">Effective on or about August&nbsp;21, 2018, Forward Management d/b/a Salient (&#147;Salient Management&#148;) has agreed to enter into a management fee waiver and expense limitation agreement with the Fund which will reduce the management fee of the Fund to 0.75% on all assets and limit the net annual operating expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired fund fees and expenses, and extraordinary expenses) of the Fund&#146;s Class&nbsp;A (1.55%), Class&nbsp;C (2.10%), Investor Class (1.50%), Institutional Class (1.15%) and Class&nbsp;I2 (1.10%) shares, effective until April&nbsp;30, 2020. Accordingly, the following information shall be incorporated into the Fund&#146;s &#147;Fund Summary&#148; sections of the registration statement: </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <table style="border-collapse:collapse" border="0" cellpadding="0" cellspacing="0" width="100%"> <tr style = "page-break-inside:avoid"> <td width="4%" valign="top" align="left">1.</td> <td align="left" valign="top"> <div style="" align="left">The &#147;Annual Fund Operating Expenses&#148; table and the &#147;Examples&#148; table for the Fund in the No-Load Prospectus shall be replaced to read as follows: </div></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>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="73%"></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> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td></tr> <tr style="page-break-inside:avoid"> <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&nbsp;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&nbsp;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>Class&nbsp;I2</b></td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <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;&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;&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 style="page-break-inside:avoid"> <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;&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;</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">N/A</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:2.00em">Other 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">1.14%</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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">1.04%</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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">0.99%</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em"><b>Total Annual Fund Operating Expenses</b></div></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>2.39%</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;&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>2.04%</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;&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>1.99%</b></td> <td valign="bottom" style="border-bottom:1px solid #000000"><b>&nbsp;</b></td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Fee Waiver and 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;0.89%</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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;0.89%</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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;0.89%</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em"><b>Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement</b></div></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>1.50%</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;&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>1.15%</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;&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>1.10%</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 style = "page-break-inside:avoid"> <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 for Class&nbsp;I2 shares 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 style = "page-break-inside:avoid"> <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">Other Expenses for Investor Class&nbsp;and Institutional Class&nbsp;shares include shareholder services fees that may be temporarily suspended by the Fund, in which case, the fees may not accrue to the full amounts payable. </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 style = "page-break-inside:avoid"> <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"> <div align="left">The Fund&#146;s investment advisor is contractually obligated to waive 0.25% of the Fund&#146;s management fee so that until April&nbsp;30, 2020 the Fund&#146;s management fee will be 0.75%. Additionally, the Fund&#146;s investment advisor is contractually obligated until April&nbsp;30, 2020 to limit the Fund&#146;s operating expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired fund fees and expenses, and extraordinary expenses) for Investor Class, Institutional Class&nbsp;and Class&nbsp;I2 shares to an annual rate (as a percentage of the Fund&#146;s average daily net assets) of 1.50%, 1.15% and 1.10%, respectively. Each of the management fee waiver and the expense limitation arrangement may not be terminated by the Fund&#146;s investment advisor prior to such date under any circumstances and may only be modified or terminated by a majority vote of the Independent Trustees. Under the expense limitation agreement, the Fund&#146;s investment advisor is permitted to recoup expenses attributable to the Fund or a Class&nbsp;thereof that the investment advisor has borne (whether through a further reduction of its management fee or otherwise) in later periods to the extent that the expenses for a Class&nbsp;of shares fall below the annual rate in effect at the time of the actual waiver/reimbursement. Under the expense limitation agreement, the Fund is not obligated to reimburse such expenses beyond three years from the end of the fiscal year in which the investment advisor waived a fee or reimbursed an expense. Any such recoupment by the investment advisor will not cause a class to exceed the annual limitation rate in effect at the time of the actual waiver/reimbursement or at the date of the recoupment.</div></td> <td width="4%">&nbsp;</td></tr></table> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:6px;margin-bottom:0px; margin-left:4%;margin-right:4%"><b>Examples </b></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, Institutional Class&nbsp;or Class&nbsp;I2 shares of the Fund with the costs of investing in other mutual funds. The Examples assume that you invest $10,000 in the noted class of shares of the Fund for the time periods indicated. The Examples also assume that your investment has a 5% return each year, that the Fund&#146;s total annual operating expenses remain the same, and that the contractual fee waiver/reimbursement is in place for the first two years. </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px; margin-left:4%;margin-right:4%">Although actual costs may be higher or lower, based on these assumptions your costs whether or not you redeemed your shares would be: </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <table cellspacing="0" cellpadding="0" width="92%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="73%"></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td></tr> <tr style="page-break-inside:avoid"> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Investor&nbsp;Class</b></td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Institutional&nbsp;Class</b></td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><b>Class&nbsp;I2</b></td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">1 Year</div></td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">153</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">117</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">112</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <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">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">570</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">462</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">447</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">5 Years</div></td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">1,108</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">928</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">902</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">10 Years</div></td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">2,582</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td> <td valign="bottom" style=" border-bottom:1px solid #000000">&nbsp;&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">$</td> <td valign="bottom" style="border-bottom:1px solid #000000" align="right">2,218</td> <td valign="bottom" style="border-bottom:1px solid #000000">&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">2,166</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> </table> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p><p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p><p style="margin-top:6px;margin-bottom:0px"><b>Changes to Principal Investment Strategies </b></p> <p style="margin-top:0px;margin-bottom:0px">Effective on or about August&nbsp;21, 2018, the Fund will operate as a diversified fund, and all references to the fund being non-diversified are hereby removed from the Prospectus. </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px">Additionally, the Fund&#146;s Principal Investment Strategies section is replaced in its entirety 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%">Under normal conditions, the Fund invests at least 80%, and usually substantially all, of its net assets plus borrowings for investment purposes, if any, in common stocks and other equity securities issued by U.S. and non-U.S. real estate companies, including real estate investment trusts (&#147;REITs&#148;) and similar REIT-like entities in at least three different countries. The Fund may invest in equity securities, debt securities, limited partnership interests, exchange-traded funds (&#147;ETFs&#148;), American Depositary Receipts and European Depositary Receipts, and its investments may include other securities, such as synthetic instruments. Synthetic instruments are investments that have economic characteristics similar to the Fund&#146;s direct investments, and may include rights, warrants, futures, and options. The Fund may invest in securities of companies having any capitalization and investment grade debt securities. The Fund may also leverage its portfolio by borrowing money to purchase securities. </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%">Under normal market conditions, the Fund will invest significantly (at least 40%) in real estate companies organized or located outside the U.S. or doing a substantial amount of business outside the U.S. The Fund allocates its assets among various regions and countries, including the United States (but in no less than three different countries). The Fund considers a company that derives at least 50% of its revenue from business outside the U.S. or has at least 50% of its assets outside the U.S. as doing a substantial amount of business outside the U.S. The non-U.S. companies in which the Fund invests may include those domiciled in emerging market countries. Typically, emerging markets are in countries that are in the process of industrialization, with lower gross national products per capita than more developed countries. The Fund is not limited in the extent to which it may invest in emerging market companies. </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%">Forward Management, LLC d/b/a Salient (&#147;Salient Management&#148; or the &#147;Advisor&#148;) allocates the Fund&#146;s assets among securities of countries and in currency denominations that are expected to provide the best opportunities for meeting the Fund&#146;s investment objective. In analyzing specific companies for possible investment, the Advisor utilizes fundamental real estate analysis and quantitative analysis to select investments for the Fund, including analyzing a company&#146;s management and strategic focus, evaluating the location, physical attributes and cash flow generating capacity of a company&#146;s properties and calculating relative return potential among other things. </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 write (sell) call options and purchase put options on individual stocks or broad-based stock indices, including ETFs that replicate such indices. The Fund may also enter into put option spreads, which consist of paired purchased and written options with different strike prices on the same stock or index. The Fund generally intends to use option strategies to seek to generate premium income, acquire a security at a specified price, or reduce the Fund&#146;s exposure to market risk and volatility.</p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px"><b>Change to Fund Benchmark and Performance Information Section </b></p> <p style="margin-top:0px;margin-bottom:0px">Effective on or about August&nbsp;21, 2018, the FTSE EPRA/NAREIT Developed Index will replace the FTSE EPRA/NAREIT Developed ex-US Index as the Fund&#146;s benchmark index because the new index more closely aligns to the Fund&#146;s investment strategies as updated by this supplement. Additionally, the Fund will add the broad-based market index the MSCI World Index to its Average Annual Total Returns table. Accordingly, the following information shall be incorporated into the &#147;Performance Information&#148; section of the Prospectus: </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px"><b>Average Annual Total Returns For the period ended December&nbsp;31, 2017 </b></p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style="border-collapse:collapse"> <tr> <td width="69%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td></tr> <tr style="page-break-inside:avoid"> <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>1&nbsp;Year</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>5&nbsp;Years</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>10&nbsp;Years</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>Since&nbsp;Inception</b></td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em"><b>Salient International Real Estate Fund &#150; Institutional Class</b> (Inception: 4/28/06)</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">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Return Before Taxes</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">21.88</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">3.11</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">1.92</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">3.18</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Return After Taxes on Distributions</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">18.60</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">0.65</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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;0.77</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">0.71</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Return After Taxes on Distributions and Sale of Fund Shares</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">12.60</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">1.31</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">0.31</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">1.46</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em"><b>FTSE EPRA/NAREIT Developed ex-US Index</b></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">20.82</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">5.48</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">2.12</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">3.82</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em"><b>FTSE EPRA/NAREIT Developed Index</b></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">10.36</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">6.32</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">3.28</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">4.11</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em"><b>MSCI World Index</b></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">23.07</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">12.26</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">5.63</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">6.47</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em"><b>Salient International Real Estate Fund &#150; Investor Class</b> (Inception: 5/2/11)</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">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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">&nbsp;</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em">Return Before Taxes</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">21.44</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">2.78</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">N/A</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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">4.87</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em"><b>FTSE EPRA/NAREIT Developed ex-US Index</b></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">20.82</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">5.48</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">N/A</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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">5.67</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em"><b>FTSE EPRA/NAREIT Developed Index</b></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">10.36</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">6.32</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">N/A</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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">6.24</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top" style="border-bottom:1px solid #000000"> <div style="margin-left:0.60em"><b>MSCI World Index</b></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">23.07</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">12.26</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</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">N/A</td> <td valign="bottom" style="border-bottom:1px solid #000000">&nbsp;</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">9.21</td> <td valign="bottom" style="border-bottom:1px solid #000000">%&nbsp;</td></tr> </table> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px">After-tax returns are calculated using the historical highest individual Federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor&#146;s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown only for the Class&nbsp;A and Institutional Class&nbsp;shares. After-tax returns for other classes will vary. </p> <p style="margin-top:0px;margin-bottom:-6px">&nbsp;</p> <p style="margin-top:0px;margin-bottom:0px">Corresponding changes will also be made to the section of the Prospectus describing the indices used by the Forward Funds. </p> EX-101.SCH 3 ff-20180820.xsd XBRL TAXONOMY EXTENSION SCHEMA 000000 - Document - Document and Entity Information {Elements} link:presentationLink link:calculationLink link:definitionLink 000011 - Document - Risk/Return Supplement {Unlabeled} - Salient International Real Estate Fund link:presentationLink link:calculationLink link:definitionLink 000019 - Disclosure - Risk/Return Detail Data {Elements} - Salient International Real Estate Fund link:presentationLink link:calculationLink link:definitionLink EX-101.DEF 4 ff-20180820_def.xml XBRL TAXONOMY EXTENSION DEFINITION LINKBASE EX-101.LAB 5 ff-20180820_lab.xml XBRL TAXONOMY EXTENSION LABEL LINKBASE EX-101.PRE 6 ff-20180820_pre.xml XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE XML 7 R1.htm IDEA: XBRL DOCUMENT v3.10.0.1
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May 01, 2018

FORWARD FUNDS

 

 

Supplement dated August 20, 2018

to the

 

Salient International Real Estate Fund Investor Class, Institutional Class and Class I2 Prospectus (“No-Load Prospectus”) and

Salient International Real Estate Fund Class A and Class C Prospectus (“Load Prospectus”)

 

each dated May 1, 2018, as supplemented (collectively, the “Prospectus”)

 

IMPORTANT NOTICE REGARDING CHANGES TO FUND NAME, FEES AND EXPENSES, PRINCIPAL INVESTMENT STRATEGIES, AND

PERFORMANCE INFORMATION

 

At a meeting of the Board of Trustees of Forward Funds (the “Trust”) held on June 8, 2018, the Trustees, including all of the Trustees who are not “interested persons” of the Trust (the “Independent Trustees,” as that term is defined in the Investment Company Act of 1940, as amended (the “1940 Act”)), approved, on behalf of the Salient International Real Estate Fund (the “Fund”): (i) a change to the Fund’s name; (ii) the introduction of expense limits for the Fund; (iii) changes to the principal investment strategies of the Fund; and (iv) changes to the Fund’s benchmark and performance information section.

 

The Fund’s Prospectus was supplemented reflecting these changes on June 13, 2018 (the “June 13 Supplement”). This supplement replaces the June 13 Supplement in its entirety.

 

Accordingly, effective on or about August 21, 2018, the following changes shall be reflected in the Fund’s registration statement:

 

Change to Fund Name

Effective on or about August 21, 2018, the name of the Fund is changed to correspond with the following table:

 

Current Fund Name
Fund Name Effective On Or About August 21, 2018
Salient International Real Estate Fund
  Salient Global Real Estate Fund

 

All references to the Fund by its name in the Prospectus are hereby replaced with “Salient Global Real Estate Fund.”

 

Introduction of Expense Limits

Effective on or about August 21, 2018, Forward Management d/b/a Salient (“Salient Management”) has agreed to enter into a management fee waiver and expense limitation agreement with the Fund which will reduce the management fee of the Fund to 0.75% on all assets and limit the net annual operating expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired fund fees and expenses, and extraordinary expenses) of the Fund’s Class A (1.55%), Class C (2.10%), Investor Class (1.50%), Institutional Class (1.15%) and Class I2 (1.10%) shares, effective until April 30, 2020. Accordingly, the following information shall be incorporated into the Fund’s “Fund Summary” sections of the registration statement:

 

1.
The “Annual Fund Operating Expenses” table and the “Examples” table for the Fund in the No-Load Prospectus shall be 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      Class I2  
Management Fee
     1.00%        1.00%        1.00%  
Distribution (12b-1) Fees
     0.25%        N/A        N/A  
Other Expenses(1)(2)
     1.14%        1.04%        0.99%  
Total Annual Fund Operating Expenses
     2.39%        2.04%        1.99%  
Fee Waiver and Expense Reimbursement(3)
     –0.89%        –0.89%        –0.89%  
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement
     1.50%        1.15%        1.10%  

 

  (1)   Other Expenses for Class I2 shares are based on estimated amounts for the current fiscal year.  

 

  (2)   Other Expenses for Investor Class and Institutional Class shares include shareholder services fees that may be temporarily suspended by the Fund, in which case, the fees may not accrue to the full amounts payable.  

 

  (3)  
The Fund’s investment advisor is contractually obligated to waive 0.25% of the Fund’s management fee so that until April 30, 2020 the Fund’s management fee will be 0.75%. Additionally, the Fund’s investment advisor is contractually obligated until April 30, 2020 to limit the Fund’s operating expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired fund fees and expenses, and extraordinary expenses) for Investor Class, Institutional Class and Class I2 shares to an annual rate (as a percentage of the Fund’s average daily net assets) of 1.50%, 1.15% and 1.10%, respectively. Each of the management fee waiver and the expense limitation arrangement may not be terminated by the Fund’s investment advisor prior to such date under any circumstances and may only be modified or terminated by a majority vote of the Independent Trustees. Under the expense limitation agreement, the Fund’s investment advisor is permitted to recoup expenses attributable to the Fund or a Class thereof that the investment advisor has borne (whether through a further reduction of its management fee or otherwise) in later periods to the extent that the expenses for a Class of shares fall below the annual rate in effect at the time of the actual waiver/reimbursement. Under the expense limitation agreement, the Fund is not obligated to reimburse such expenses beyond three years from the end of the fiscal year in which the investment advisor waived a fee or reimbursed an expense. Any such recoupment by the investment advisor will not cause a class to exceed the annual limitation rate in effect at the time of the actual waiver/reimbursement or at the date of the recoupment.
 

 

Examples

These Examples are intended to help you compare the costs of investing in Investor Class, Institutional Class or Class I2 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 of the Fund 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 two years.

 

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      Class I2  
1 Year
   $ 153      $ 117      $ 112  
3 Years
   $ 570      $ 462      $ 447  
5 Years
   $ 1,108      $ 928      $ 902  
10 Years
   $ 2,582      $ 2,218      $ 2,166  

 

2.
The “Annual Fund Operating Expenses” table and the “Examples” tables for the Fund in the Load Prospectus shall be 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  
Management Fee
     1.00%        1.00%  
Distribution (12b-1) Fees
     0.25%        0.75%  
Other Expenses(1)
     1.19%        1.24%  
Total Annual Fund Operating Expenses
     2.44%        2.99%  
Fee Waiver and Expense Reimbursement(2)
     –0.89%        –0.89%  
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement
     1.55%        2.10%  

 

  (1)   Other Expenses for Class A shares include shareholder services fees that may be temporarily suspended by the Fund, in which case, the fees may not accrue to the full amounts payable.  

 

  (2)   The Fund’s investment advisor is contractually obligated to waive 0.25% of the Fund’s management fee so that until April 30, 2020 the Fund’s management fee will be 0.75%. Additionally, the Fund’s investment advisor is contractually obligated until April 30, 2020 to limit the Fund’s operating expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired fund fees and expenses, and extraordinary expenses) for Class A and Class C shares to an annual rate (as a percentage of the Fund’s average daily net assets) of 1.55% and 2.10%, respectively. Each of the management fee waiver and the expense limitation arrangement may not be terminated by the Fund’s investment advisor prior to such date under any circumstances and may only be modified or terminated by a majority vote of the Independent Trustees. Under the expense limitation agreement, the Fund’s investment advisor is permitted to recoup expenses attributable to the Fund or a Class thereof that the investment advisor has borne (whether through a further reduction of its management fee or otherwise) in later periods to the extent that the expenses for a Class of shares fall below the annual rate in effect at the time of the actual waiver/reimbursement. Under the expense limitation agreement, the Fund is not obligated to reimburse such expenses beyond three years from the end of the fiscal year in which the investment advisor waived a fee or reimbursed an expense. Any such recoupment by the investment advisor will not cause a class to exceed the annual limitation rate in effect at the time of the actual waiver/reimbursement or at the date of the recoupment.  

Examples

These Examples are intended to help you compare the costs of investing in Class A or Class C 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 of the Fund 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 two years.

 

Although actual costs may be higher or lower, based on these assumptions your costs would be:

 

     Class A      Class C  
1 Year
   $ 724      $ 313  
3 Years
   $ 1,126      $ 752  
5 Years
   $ 1,644      $ 1,410  
10 Years
   $ 3,056      $ 3,173  

 

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

 

     Class A      Class C  
1 Year
   $ 724      $ 213  
3 Years
   $ 1,126      $ 752  
5 Years
   $ 1,644      $ 1,410  
10 Years
   $ 3,056      $ 3,173  

 

Changes to Principal Investment Strategies

Effective on or about August 21, 2018, the Fund will operate as a diversified fund, and all references to the fund being non-diversified are hereby removed from the Prospectus.

 

Additionally, the Fund’s Principal Investment Strategies section is replaced in its entirety as follows:

 

Under normal conditions, the Fund invests at least 80%, and usually substantially all, of its net assets plus borrowings for investment purposes, if any, in common stocks and other equity securities issued by U.S. and non-U.S. real estate companies, including real estate investment trusts (“REITs”) and similar REIT-like entities in at least three different countries. The Fund may invest in equity securities, debt securities, limited partnership interests, exchange-traded funds (“ETFs”), American Depositary Receipts and European Depositary Receipts, and its investments may include other securities, such as synthetic instruments. Synthetic instruments are investments that have economic characteristics similar to the Fund’s direct investments, and may include rights, warrants, futures, and options. The Fund may invest in securities of companies having any capitalization and investment grade debt securities. The Fund may also leverage its portfolio by borrowing money to purchase securities.

 

Under normal market conditions, the Fund will invest significantly (at least 40%) in real estate companies organized or located outside the U.S. or doing a substantial amount of business outside the U.S. The Fund allocates its assets among various regions and countries, including the United States (but in no less than three different countries). The Fund considers a company that derives at least 50% of its revenue from business outside the U.S. or has at least 50% of its assets outside the U.S. as doing a substantial amount of business outside the U.S. The non-U.S. companies in which the Fund invests may include those domiciled in emerging market countries. Typically, emerging markets are in countries that are in the process of industrialization, with lower gross national products per capita than more developed countries. The Fund is not limited in the extent to which it may invest in emerging market companies.

 

Forward Management, LLC d/b/a Salient (“Salient Management” or the “Advisor”) allocates the Fund’s assets among securities of countries and in currency denominations that are expected to provide the best opportunities for meeting the Fund’s investment objective. In analyzing specific companies for possible investment, the Advisor utilizes fundamental real estate analysis and quantitative analysis to select investments for the Fund, including analyzing a company’s management and strategic focus, evaluating the location, physical attributes and cash flow generating capacity of a company’s properties and calculating relative return potential among other things.

 

The Fund may write (sell) call options and purchase put options on individual stocks or broad-based stock indices, including ETFs that replicate such indices. The Fund may also enter into put option spreads, which consist of paired purchased and written options with different strike prices on the same stock or index. The Fund generally intends to use option strategies to seek to generate premium income, acquire a security at a specified price, or reduce the Fund’s exposure to market risk and volatility.

 

Change to Fund Benchmark and Performance Information Section

Effective on or about August 21, 2018, the FTSE EPRA/NAREIT Developed Index will replace the FTSE EPRA/NAREIT Developed ex-US Index as the Fund’s benchmark index because the new index more closely aligns to the Fund’s investment strategies as updated by this supplement. Additionally, the Fund will add the broad-based market index the MSCI World Index to its Average Annual Total Returns table. Accordingly, the following information shall be incorporated into the “Performance Information” section of the Prospectus:

 

Average Annual Total Returns For the period ended December 31, 2017

 

     1 Year      5 Years      10 Years      Since Inception  
Salient International Real Estate Fund – Class A (Inception: 4/28/06)
                                   
Return Before Taxes
     14.35      1.48      0.98      2.33
Return After Taxes on Distributions
     11.43      –0.76      –1.56      –0.01
Return After Taxes on Distributions and Sale of Fund Shares
     8.33      0.17      -0.33      0.86
Salient International Real Estate Fund – Class C (Inception: 4/28/06)
                                   
Return Before Taxes
     19.73      2.13      0.93      2.18
FTSE EPRA/NAREIT Developed ex-US Index
     20.82      5.48      2.12      3.82
FTSE EPRA/NAREIT Developed Index
     10.36      6.32      3.28      4.11
MSCI World Index
     23.07      12.26      5.63      6.47
Salient International Real Estate Fund – Institutional Class (Inception: 4/28/06)
                                   
Return Before Taxes
     21.88      3.11      1.92      3.18
Return After Taxes on Distributions
     18.60      0.65      –0.77      0.71
Return After Taxes on Distributions and Sale of Fund Shares
     12.60      1.31      0.31      1.46
FTSE EPRA/NAREIT Developed ex-US Index
     20.82      5.48      2.12      3.82
FTSE EPRA/NAREIT Developed Index
     10.36      6.32      3.28      4.11
MSCI World Index
     23.07      12.26      5.63      6.47
Salient International Real Estate Fund – Investor Class (Inception: 5/2/11)
                                   
Return Before Taxes
     21.44      2.78      N/A        4.87
FTSE EPRA/NAREIT Developed ex-US Index
     20.82      5.48      N/A        5.67
FTSE EPRA/NAREIT Developed Index
     10.36      6.32      N/A        6.24
MSCI World Index
     23.07      12.26      N/A        9.21

 

After-tax returns are calculated using the historical highest individual Federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown only for the Class A and Institutional Class shares. After-tax returns for other classes will vary.

 

Corresponding changes will also be made to the section of the Prospectus describing the indices used by the Forward Funds.

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Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName Forward Funds
Prospectus Date rr_ProspectusDate May 01, 2018
Supplement [Text Block] ff_SupplementTextBlock

FORWARD FUNDS

 

 

Supplement dated August 20, 2018

to the

 

Salient International Real Estate Fund Investor Class, Institutional Class and Class I2 Prospectus (“No-Load Prospectus”) and

Salient International Real Estate Fund Class A and Class C Prospectus (“Load Prospectus”)

 

each dated May 1, 2018, as supplemented (collectively, the “Prospectus”)

 

IMPORTANT NOTICE REGARDING CHANGES TO FUND NAME, FEES AND EXPENSES, PRINCIPAL INVESTMENT STRATEGIES, AND

PERFORMANCE INFORMATION

 

At a meeting of the Board of Trustees of Forward Funds (the “Trust”) held on June 8, 2018, the Trustees, including all of the Trustees who are not “interested persons” of the Trust (the “Independent Trustees,” as that term is defined in the Investment Company Act of 1940, as amended (the “1940 Act”)), approved, on behalf of the Salient International Real Estate Fund (the “Fund”): (i) a change to the Fund’s name; (ii) the introduction of expense limits for the Fund; (iii) changes to the principal investment strategies of the Fund; and (iv) changes to the Fund’s benchmark and performance information section.

 

The Fund’s Prospectus was supplemented reflecting these changes on June 13, 2018 (the “June 13 Supplement”). This supplement replaces the June 13 Supplement in its entirety.

 

Accordingly, effective on or about August 21, 2018, the following changes shall be reflected in the Fund’s registration statement:

 

Change to Fund Name

Effective on or about August 21, 2018, the name of the Fund is changed to correspond with the following table:

 

Current Fund Name
Fund Name Effective On Or About August 21, 2018
Salient International Real Estate Fund
  Salient Global Real Estate Fund

 

All references to the Fund by its name in the Prospectus are hereby replaced with “Salient Global Real Estate Fund.”

 

Introduction of Expense Limits

Effective on or about August 21, 2018, Forward Management d/b/a Salient (“Salient Management”) has agreed to enter into a management fee waiver and expense limitation agreement with the Fund which will reduce the management fee of the Fund to 0.75% on all assets and limit the net annual operating expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired fund fees and expenses, and extraordinary expenses) of the Fund’s Class A (1.55%), Class C (2.10%), Investor Class (1.50%), Institutional Class (1.15%) and Class I2 (1.10%) shares, effective until April 30, 2020. Accordingly, the following information shall be incorporated into the Fund’s “Fund Summary” sections of the registration statement:

 

1.
The “Annual Fund Operating Expenses” table and the “Examples” table for the Fund in the No-Load Prospectus shall be 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      Class I2  
Management Fee
     1.00%        1.00%        1.00%  
Distribution (12b-1) Fees
     0.25%        N/A        N/A  
Other Expenses(1)(2)
     1.14%        1.04%        0.99%  
Total Annual Fund Operating Expenses
     2.39%        2.04%        1.99%  
Fee Waiver and Expense Reimbursement(3)
     –0.89%        –0.89%        –0.89%  
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement
     1.50%        1.15%        1.10%  

 

  (1)   Other Expenses for Class I2 shares are based on estimated amounts for the current fiscal year.  

 

  (2)   Other Expenses for Investor Class and Institutional Class shares include shareholder services fees that may be temporarily suspended by the Fund, in which case, the fees may not accrue to the full amounts payable.  

 

  (3)  
The Fund’s investment advisor is contractually obligated to waive 0.25% of the Fund’s management fee so that until April 30, 2020 the Fund’s management fee will be 0.75%. Additionally, the Fund’s investment advisor is contractually obligated until April 30, 2020 to limit the Fund’s operating expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired fund fees and expenses, and extraordinary expenses) for Investor Class, Institutional Class and Class I2 shares to an annual rate (as a percentage of the Fund’s average daily net assets) of 1.50%, 1.15% and 1.10%, respectively. Each of the management fee waiver and the expense limitation arrangement may not be terminated by the Fund’s investment advisor prior to such date under any circumstances and may only be modified or terminated by a majority vote of the Independent Trustees. Under the expense limitation agreement, the Fund’s investment advisor is permitted to recoup expenses attributable to the Fund or a Class thereof that the investment advisor has borne (whether through a further reduction of its management fee or otherwise) in later periods to the extent that the expenses for a Class of shares fall below the annual rate in effect at the time of the actual waiver/reimbursement. Under the expense limitation agreement, the Fund is not obligated to reimburse such expenses beyond three years from the end of the fiscal year in which the investment advisor waived a fee or reimbursed an expense. Any such recoupment by the investment advisor will not cause a class to exceed the annual limitation rate in effect at the time of the actual waiver/reimbursement or at the date of the recoupment.
 

 

Examples

These Examples are intended to help you compare the costs of investing in Investor Class, Institutional Class or Class I2 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 of the Fund 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 two years.

 

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      Class I2  
1 Year
   $ 153      $ 117      $ 112  
3 Years
   $ 570      $ 462      $ 447  
5 Years
   $ 1,108      $ 928      $ 902  
10 Years
   $ 2,582      $ 2,218      $ 2,166  

 

2.
The “Annual Fund Operating Expenses” table and the “Examples” tables for the Fund in the Load Prospectus shall be 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  
Management Fee
     1.00%        1.00%  
Distribution (12b-1) Fees
     0.25%        0.75%  
Other Expenses(1)
     1.19%        1.24%  
Total Annual Fund Operating Expenses
     2.44%        2.99%  
Fee Waiver and Expense Reimbursement(2)
     –0.89%        –0.89%  
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement
     1.55%        2.10%  

 

  (1)   Other Expenses for Class A shares include shareholder services fees that may be temporarily suspended by the Fund, in which case, the fees may not accrue to the full amounts payable.  

 

  (2)   The Fund’s investment advisor is contractually obligated to waive 0.25% of the Fund’s management fee so that until April 30, 2020 the Fund’s management fee will be 0.75%. Additionally, the Fund’s investment advisor is contractually obligated until April 30, 2020 to limit the Fund’s operating expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired fund fees and expenses, and extraordinary expenses) for Class A and Class C shares to an annual rate (as a percentage of the Fund’s average daily net assets) of 1.55% and 2.10%, respectively. Each of the management fee waiver and the expense limitation arrangement may not be terminated by the Fund’s investment advisor prior to such date under any circumstances and may only be modified or terminated by a majority vote of the Independent Trustees. Under the expense limitation agreement, the Fund’s investment advisor is permitted to recoup expenses attributable to the Fund or a Class thereof that the investment advisor has borne (whether through a further reduction of its management fee or otherwise) in later periods to the extent that the expenses for a Class of shares fall below the annual rate in effect at the time of the actual waiver/reimbursement. Under the expense limitation agreement, the Fund is not obligated to reimburse such expenses beyond three years from the end of the fiscal year in which the investment advisor waived a fee or reimbursed an expense. Any such recoupment by the investment advisor will not cause a class to exceed the annual limitation rate in effect at the time of the actual waiver/reimbursement or at the date of the recoupment.  

Examples

These Examples are intended to help you compare the costs of investing in Class A or Class C 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 of the Fund 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 two years.

 

Although actual costs may be higher or lower, based on these assumptions your costs would be:

 

     Class A      Class C  
1 Year
   $ 724      $ 313  
3 Years
   $ 1,126      $ 752  
5 Years
   $ 1,644      $ 1,410  
10 Years
   $ 3,056      $ 3,173  

 

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

 

     Class A      Class C  
1 Year
   $ 724      $ 213  
3 Years
   $ 1,126      $ 752  
5 Years
   $ 1,644      $ 1,410  
10 Years
   $ 3,056      $ 3,173  

 

Changes to Principal Investment Strategies

Effective on or about August 21, 2018, the Fund will operate as a diversified fund, and all references to the fund being non-diversified are hereby removed from the Prospectus.

 

Additionally, the Fund’s Principal Investment Strategies section is replaced in its entirety as follows:

 

Under normal conditions, the Fund invests at least 80%, and usually substantially all, of its net assets plus borrowings for investment purposes, if any, in common stocks and other equity securities issued by U.S. and non-U.S. real estate companies, including real estate investment trusts (“REITs”) and similar REIT-like entities in at least three different countries. The Fund may invest in equity securities, debt securities, limited partnership interests, exchange-traded funds (“ETFs”), American Depositary Receipts and European Depositary Receipts, and its investments may include other securities, such as synthetic instruments. Synthetic instruments are investments that have economic characteristics similar to the Fund’s direct investments, and may include rights, warrants, futures, and options. The Fund may invest in securities of companies having any capitalization and investment grade debt securities. The Fund may also leverage its portfolio by borrowing money to purchase securities.

 

Under normal market conditions, the Fund will invest significantly (at least 40%) in real estate companies organized or located outside the U.S. or doing a substantial amount of business outside the U.S. The Fund allocates its assets among various regions and countries, including the United States (but in no less than three different countries). The Fund considers a company that derives at least 50% of its revenue from business outside the U.S. or has at least 50% of its assets outside the U.S. as doing a substantial amount of business outside the U.S. The non-U.S. companies in which the Fund invests may include those domiciled in emerging market countries. Typically, emerging markets are in countries that are in the process of industrialization, with lower gross national products per capita than more developed countries. The Fund is not limited in the extent to which it may invest in emerging market companies.

 

Forward Management, LLC d/b/a Salient (“Salient Management” or the “Advisor”) allocates the Fund’s assets among securities of countries and in currency denominations that are expected to provide the best opportunities for meeting the Fund’s investment objective. In analyzing specific companies for possible investment, the Advisor utilizes fundamental real estate analysis and quantitative analysis to select investments for the Fund, including analyzing a company’s management and strategic focus, evaluating the location, physical attributes and cash flow generating capacity of a company’s properties and calculating relative return potential among other things.

 

The Fund may write (sell) call options and purchase put options on individual stocks or broad-based stock indices, including ETFs that replicate such indices. The Fund may also enter into put option spreads, which consist of paired purchased and written options with different strike prices on the same stock or index. The Fund generally intends to use option strategies to seek to generate premium income, acquire a security at a specified price, or reduce the Fund’s exposure to market risk and volatility.

 

Change to Fund Benchmark and Performance Information Section

Effective on or about August 21, 2018, the FTSE EPRA/NAREIT Developed Index will replace the FTSE EPRA/NAREIT Developed ex-US Index as the Fund’s benchmark index because the new index more closely aligns to the Fund’s investment strategies as updated by this supplement. Additionally, the Fund will add the broad-based market index the MSCI World Index to its Average Annual Total Returns table. Accordingly, the following information shall be incorporated into the “Performance Information” section of the Prospectus:

 

Average Annual Total Returns For the period ended December 31, 2017

 

     1 Year      5 Years      10 Years      Since Inception  
Salient International Real Estate Fund – Class A (Inception: 4/28/06)
                                   
Return Before Taxes
     14.35      1.48      0.98      2.33
Return After Taxes on Distributions
     11.43      –0.76      –1.56      –0.01
Return After Taxes on Distributions and Sale of Fund Shares
     8.33      0.17      -0.33      0.86
Salient International Real Estate Fund – Class C (Inception: 4/28/06)
                                   
Return Before Taxes
     19.73      2.13      0.93      2.18
FTSE EPRA/NAREIT Developed ex-US Index
     20.82      5.48      2.12      3.82
FTSE EPRA/NAREIT Developed Index
     10.36      6.32      3.28      4.11
MSCI World Index
     23.07      12.26      5.63      6.47
Salient International Real Estate Fund – Institutional Class (Inception: 4/28/06)
                                   
Return Before Taxes
     21.88      3.11      1.92      3.18
Return After Taxes on Distributions
     18.60      0.65      –0.77      0.71
Return After Taxes on Distributions and Sale of Fund Shares
     12.60      1.31      0.31      1.46
FTSE EPRA/NAREIT Developed ex-US Index
     20.82      5.48      2.12      3.82
FTSE EPRA/NAREIT Developed Index
     10.36      6.32      3.28      4.11
MSCI World Index
     23.07      12.26      5.63      6.47
Salient International Real Estate Fund – Investor Class (Inception: 5/2/11)
                                   
Return Before Taxes
     21.44      2.78      N/A        4.87
FTSE EPRA/NAREIT Developed ex-US Index
     20.82      5.48      N/A        5.67
FTSE EPRA/NAREIT Developed Index
     10.36      6.32      N/A        6.24
MSCI World Index
     23.07      12.26      N/A        9.21

 

After-tax returns are calculated using the historical highest individual Federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown only for the Class A and Institutional Class shares. After-tax returns for other classes will vary.

 

Corresponding changes will also be made to the section of the Prospectus describing the indices used by the Forward Funds.

No Load | Salient International Real Estate Fund  
Risk/Return: rr_RiskReturnAbstract  
Supplement [Text Block] ff_SupplementTextBlock

FORWARD FUNDS

 

 

Supplement dated August 20, 2018

to the

 

Salient International Real Estate Fund Investor Class, Institutional Class and Class I2 Prospectus (“No-Load Prospectus”) and

Salient International Real Estate Fund Class A and Class C Prospectus (“Load Prospectus”)

 

each dated May 1, 2018, as supplemented (collectively, the “Prospectus”)

 

IMPORTANT NOTICE REGARDING CHANGES TO FUND NAME, FEES AND EXPENSES, PRINCIPAL INVESTMENT STRATEGIES, AND

PERFORMANCE INFORMATION

 

At a meeting of the Board of Trustees of Forward Funds (the “Trust”) held on June 8, 2018, the Trustees, including all of the Trustees who are not “interested persons” of the Trust (the “Independent Trustees,” as that term is defined in the Investment Company Act of 1940, as amended (the “1940 Act”)), approved, on behalf of the Salient International Real Estate Fund (the “Fund”): (i) a change to the Fund’s name; (ii) the introduction of expense limits for the Fund; (iii) changes to the principal investment strategies of the Fund; and (iv) changes to the Fund’s benchmark and performance information section.

 

The Fund’s Prospectus was supplemented reflecting these changes on June 13, 2018 (the “June 13 Supplement”). This supplement replaces the June 13 Supplement in its entirety.

 

Accordingly, effective on or about August 21, 2018, the following changes shall be reflected in the Fund’s registration statement:

 

Change to Fund Name

Effective on or about August 21, 2018, the name of the Fund is changed to correspond with the following table:

 

Current Fund Name
Fund Name Effective On Or About August 21, 2018
Salient International Real Estate Fund
  Salient Global Real Estate Fund

 

All references to the Fund by its name in the Prospectus are hereby replaced with “Salient Global Real Estate Fund.”

 

Introduction of Expense Limits

Effective on or about August 21, 2018, Forward Management d/b/a Salient (“Salient Management”) has agreed to enter into a management fee waiver and expense limitation agreement with the Fund which will reduce the management fee of the Fund to 0.75% on all assets and limit the net annual operating expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired fund fees and expenses, and extraordinary expenses) of the Fund’s Class A (1.55%), Class C (2.10%), Investor Class (1.50%), Institutional Class (1.15%) and Class I2 (1.10%) shares, effective until April 30, 2020. Accordingly, the following information shall be incorporated into the Fund’s “Fund Summary” sections of the registration statement:

 

1.
The “Annual Fund Operating Expenses” table and the “Examples” table for the Fund in the No-Load Prospectus shall be 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      Class I2  
Management Fee
     1.00%        1.00%        1.00%  
Distribution (12b-1) Fees
     0.25%        N/A        N/A  
Other Expenses(1)(2)
     1.14%        1.04%        0.99%  
Total Annual Fund Operating Expenses
     2.39%        2.04%        1.99%  
Fee Waiver and Expense Reimbursement(3)
     –0.89%        –0.89%        –0.89%  
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement
     1.50%        1.15%        1.10%  

 

  (1)   Other Expenses for Class I2 shares are based on estimated amounts for the current fiscal year.  

 

  (2)   Other Expenses for Investor Class and Institutional Class shares include shareholder services fees that may be temporarily suspended by the Fund, in which case, the fees may not accrue to the full amounts payable.  

 

  (3)  
The Fund’s investment advisor is contractually obligated to waive 0.25% of the Fund’s management fee so that until April 30, 2020 the Fund’s management fee will be 0.75%. Additionally, the Fund’s investment advisor is contractually obligated until April 30, 2020 to limit the Fund’s operating expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired fund fees and expenses, and extraordinary expenses) for Investor Class, Institutional Class and Class I2 shares to an annual rate (as a percentage of the Fund’s average daily net assets) of 1.50%, 1.15% and 1.10%, respectively. Each of the management fee waiver and the expense limitation arrangement may not be terminated by the Fund’s investment advisor prior to such date under any circumstances and may only be modified or terminated by a majority vote of the Independent Trustees. Under the expense limitation agreement, the Fund’s investment advisor is permitted to recoup expenses attributable to the Fund or a Class thereof that the investment advisor has borne (whether through a further reduction of its management fee or otherwise) in later periods to the extent that the expenses for a Class of shares fall below the annual rate in effect at the time of the actual waiver/reimbursement. Under the expense limitation agreement, the Fund is not obligated to reimburse such expenses beyond three years from the end of the fiscal year in which the investment advisor waived a fee or reimbursed an expense. Any such recoupment by the investment advisor will not cause a class to exceed the annual limitation rate in effect at the time of the actual waiver/reimbursement or at the date of the recoupment.
 

 

Examples

These Examples are intended to help you compare the costs of investing in Investor Class, Institutional Class or Class I2 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 of the Fund 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 two years.

 

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      Class I2  
1 Year
   $ 153      $ 117      $ 112  
3 Years
   $ 570      $ 462      $ 447  
5 Years
   $ 1,108      $ 928      $ 902  
10 Years
   $ 2,582      $ 2,218      $ 2,166  

 

 

Changes to Principal Investment Strategies

Effective on or about August 21, 2018, the Fund will operate as a diversified fund, and all references to the fund being non-diversified are hereby removed from the Prospectus.

 

Additionally, the Fund’s Principal Investment Strategies section is replaced in its entirety as follows:

 

Under normal conditions, the Fund invests at least 80%, and usually substantially all, of its net assets plus borrowings for investment purposes, if any, in common stocks and other equity securities issued by U.S. and non-U.S. real estate companies, including real estate investment trusts (“REITs”) and similar REIT-like entities in at least three different countries. The Fund may invest in equity securities, debt securities, limited partnership interests, exchange-traded funds (“ETFs”), American Depositary Receipts and European Depositary Receipts, and its investments may include other securities, such as synthetic instruments. Synthetic instruments are investments that have economic characteristics similar to the Fund’s direct investments, and may include rights, warrants, futures, and options. The Fund may invest in securities of companies having any capitalization and investment grade debt securities. The Fund may also leverage its portfolio by borrowing money to purchase securities.

 

Under normal market conditions, the Fund will invest significantly (at least 40%) in real estate companies organized or located outside the U.S. or doing a substantial amount of business outside the U.S. The Fund allocates its assets among various regions and countries, including the United States (but in no less than three different countries). The Fund considers a company that derives at least 50% of its revenue from business outside the U.S. or has at least 50% of its assets outside the U.S. as doing a substantial amount of business outside the U.S. The non-U.S. companies in which the Fund invests may include those domiciled in emerging market countries. Typically, emerging markets are in countries that are in the process of industrialization, with lower gross national products per capita than more developed countries. The Fund is not limited in the extent to which it may invest in emerging market companies.

 

Forward Management, LLC d/b/a Salient (“Salient Management” or the “Advisor”) allocates the Fund’s assets among securities of countries and in currency denominations that are expected to provide the best opportunities for meeting the Fund’s investment objective. In analyzing specific companies for possible investment, the Advisor utilizes fundamental real estate analysis and quantitative analysis to select investments for the Fund, including analyzing a company’s management and strategic focus, evaluating the location, physical attributes and cash flow generating capacity of a company’s properties and calculating relative return potential among other things.

 

The Fund may write (sell) call options and purchase put options on individual stocks or broad-based stock indices, including ETFs that replicate such indices. The Fund may also enter into put option spreads, which consist of paired purchased and written options with different strike prices on the same stock or index. The Fund generally intends to use option strategies to seek to generate premium income, acquire a security at a specified price, or reduce the Fund’s exposure to market risk and volatility.

 

Change to Fund Benchmark and Performance Information Section

Effective on or about August 21, 2018, the FTSE EPRA/NAREIT Developed Index will replace the FTSE EPRA/NAREIT Developed ex-US Index as the Fund’s benchmark index because the new index more closely aligns to the Fund’s investment strategies as updated by this supplement. Additionally, the Fund will add the broad-based market index the MSCI World Index to its Average Annual Total Returns table. Accordingly, the following information shall be incorporated into the “Performance Information” section of the Prospectus:

 

Average Annual Total Returns For the period ended December 31, 2017

 

     1 Year      5 Years      10 Years      Since Inception  
Salient International Real Estate Fund – Institutional Class (Inception: 4/28/06)
                                   
Return Before Taxes
     21.88      3.11      1.92      3.18
Return After Taxes on Distributions
     18.60      0.65      –0.77      0.71
Return After Taxes on Distributions and Sale of Fund Shares
     12.60      1.31      0.31      1.46
FTSE EPRA/NAREIT Developed ex-US Index
     20.82      5.48      2.12      3.82
FTSE EPRA/NAREIT Developed Index
     10.36      6.32      3.28      4.11
MSCI World Index
     23.07      12.26      5.63      6.47
Salient International Real Estate Fund – Investor Class (Inception: 5/2/11)
                                   
Return Before Taxes
     21.44      2.78      N/A        4.87
FTSE EPRA/NAREIT Developed ex-US Index
     20.82      5.48      N/A        5.67
FTSE EPRA/NAREIT Developed Index
     10.36      6.32      N/A        6.24
MSCI World Index
     23.07      12.26      N/A        9.21

 

After-tax returns are calculated using the historical highest individual Federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown only for the Class A and Institutional Class shares. After-tax returns for other classes will vary.

 

Corresponding changes will also be made to the section of the Prospectus describing the indices used by the Forward Funds.

Load | Salient International Real Estate Fund  
Risk/Return: rr_RiskReturnAbstract  
Supplement [Text Block] ff_SupplementTextBlock

FORWARD FUNDS

 

 

Supplement dated August 20, 2018

to the

 

Salient International Real Estate Fund Investor Class, Institutional Class and Class I2 Prospectus (“No-Load Prospectus”) and

Salient International Real Estate Fund Class A and Class C Prospectus (“Load Prospectus”)

 

each dated May 1, 2018, as supplemented (collectively, the “Prospectus”)

 

IMPORTANT NOTICE REGARDING CHANGES TO FUND NAME, FEES AND EXPENSES, PRINCIPAL INVESTMENT STRATEGIES, AND

PERFORMANCE INFORMATION

 

At a meeting of the Board of Trustees of Forward Funds (the “Trust”) held on June 8, 2018, the Trustees, including all of the Trustees who are not “interested persons” of the Trust (the “Independent Trustees,” as that term is defined in the Investment Company Act of 1940, as amended (the “1940 Act”)), approved, on behalf of the Salient International Real Estate Fund (the “Fund”): (i) a change to the Fund’s name; (ii) the introduction of expense limits for the Fund; (iii) changes to the principal investment strategies of the Fund; and (iv) changes to the Fund’s benchmark and performance information section.

 

The Fund’s Prospectus was supplemented reflecting these changes on June 13, 2018 (the “June 13 Supplement”). This supplement replaces the June 13 Supplement in its entirety.

 

Accordingly, effective on or about August 21, 2018, the following changes shall be reflected in the Fund’s registration statement:

 

Change to Fund Name

Effective on or about August 21, 2018, the name of the Fund is changed to correspond with the following table:

 

Current Fund Name
Fund Name Effective On Or About August 21, 2018
Salient International Real Estate Fund
  Salient Global Real Estate Fund

 

All references to the Fund by its name in the Prospectus are hereby replaced with “Salient Global Real Estate Fund.”

 

Introduction of Expense Limits

Effective on or about August 21, 2018, Forward Management d/b/a Salient (“Salient Management”) has agreed to enter into a management fee waiver and expense limitation agreement with the Fund which will reduce the management fee of the Fund to 0.75% on all assets and limit the net annual operating expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired fund fees and expenses, and extraordinary expenses) of the Fund’s Class A (1.55%), Class C (2.10%), Investor Class (1.50%), Institutional Class (1.15%) and Class I2 (1.10%) shares, effective until April 30, 2020. Accordingly, the following information shall be incorporated into the Fund’s “Fund Summary” sections of the registration statement:

 

2.
The “Annual Fund Operating Expenses” table and the “Examples” tables for the Fund in the Load Prospectus shall be 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  
Management Fee
     1.00%        1.00%  
Distribution (12b-1) Fees
     0.25%        0.75%  
Other Expenses(1)
     1.19%        1.24%  
Total Annual Fund Operating Expenses
     2.44%        2.99%  
Fee Waiver and Expense Reimbursement(2)
     –0.89%        –0.89%  
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement
     1.55%        2.10%  

 

  (1)   Other Expenses for Class A shares include shareholder services fees that may be temporarily suspended by the Fund, in which case, the fees may not accrue to the full amounts payable.  

 

  (2)   The Fund’s investment advisor is contractually obligated to waive 0.25% of the Fund’s management fee so that until April 30, 2020 the Fund’s management fee will be 0.75%. Additionally, the Fund’s investment advisor is contractually obligated until April 30, 2020 to limit the Fund’s operating expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired fund fees and expenses, and extraordinary expenses) for Class A and Class C shares to an annual rate (as a percentage of the Fund’s average daily net assets) of 1.55% and 2.10%, respectively. Each of the management fee waiver and the expense limitation arrangement may not be terminated by the Fund’s investment advisor prior to such date under any circumstances and may only be modified or terminated by a majority vote of the Independent Trustees. Under the expense limitation agreement, the Fund’s investment advisor is permitted to recoup expenses attributable to the Fund or a Class thereof that the investment advisor has borne (whether through a further reduction of its management fee or otherwise) in later periods to the extent that the expenses for a Class of shares fall below the annual rate in effect at the time of the actual waiver/reimbursement. Under the expense limitation agreement, the Fund is not obligated to reimburse such expenses beyond three years from the end of the fiscal year in which the investment advisor waived a fee or reimbursed an expense. Any such recoupment by the investment advisor will not cause a class to exceed the annual limitation rate in effect at the time of the actual waiver/reimbursement or at the date of the recoupment.  

Examples

These Examples are intended to help you compare the costs of investing in Class A or Class C 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 of the Fund 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 two years.

 

Although actual costs may be higher or lower, based on these assumptions your costs would be:

 

     Class A      Class C  
1 Year
   $ 724      $ 313  
3 Years
   $ 1,126      $ 752  
5 Years
   $ 1,644      $ 1,410  
10 Years
   $ 3,056      $ 3,173  

 

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

 

     Class A      Class C  
1 Year
   $ 724      $ 213  
3 Years
   $ 1,126      $ 752  
5 Years
   $ 1,644      $ 1,410  
10 Years
   $ 3,056      $ 3,173  

 

Changes to Principal Investment Strategies

Effective on or about August 21, 2018, the Fund will operate as a diversified fund, and all references to the fund being non-diversified are hereby removed from the Prospectus.

 

Additionally, the Fund’s Principal Investment Strategies section is replaced in its entirety as follows:

 

Under normal conditions, the Fund invests at least 80%, and usually substantially all, of its net assets plus borrowings for investment purposes, if any, in common stocks and other equity securities issued by U.S. and non-U.S. real estate companies, including real estate investment trusts (“REITs”) and similar REIT-like entities in at least three different countries. The Fund may invest in equity securities, debt securities, limited partnership interests, exchange-traded funds (“ETFs”), American Depositary Receipts and European Depositary Receipts, and its investments may include other securities, such as synthetic instruments. Synthetic instruments are investments that have economic characteristics similar to the Fund’s direct investments, and may include rights, warrants, futures, and options. The Fund may invest in securities of companies having any capitalization and investment grade debt securities. The Fund may also leverage its portfolio by borrowing money to purchase securities.

 

Under normal market conditions, the Fund will invest significantly (at least 40%) in real estate companies organized or located outside the U.S. or doing a substantial amount of business outside the U.S. The Fund allocates its assets among various regions and countries, including the United States (but in no less than three different countries). The Fund considers a company that derives at least 50% of its revenue from business outside the U.S. or has at least 50% of its assets outside the U.S. as doing a substantial amount of business outside the U.S. The non-U.S. companies in which the Fund invests may include those domiciled in emerging market countries. Typically, emerging markets are in countries that are in the process of industrialization, with lower gross national products per capita than more developed countries. The Fund is not limited in the extent to which it may invest in emerging market companies.

 

Forward Management, LLC d/b/a Salient (“Salient Management” or the “Advisor”) allocates the Fund’s assets among securities of countries and in currency denominations that are expected to provide the best opportunities for meeting the Fund’s investment objective. In analyzing specific companies for possible investment, the Advisor utilizes fundamental real estate analysis and quantitative analysis to select investments for the Fund, including analyzing a company’s management and strategic focus, evaluating the location, physical attributes and cash flow generating capacity of a company’s properties and calculating relative return potential among other things.

 

The Fund may write (sell) call options and purchase put options on individual stocks or broad-based stock indices, including ETFs that replicate such indices. The Fund may also enter into put option spreads, which consist of paired purchased and written options with different strike prices on the same stock or index. The Fund generally intends to use option strategies to seek to generate premium income, acquire a security at a specified price, or reduce the Fund’s exposure to market risk and volatility.

 

Change to Fund Benchmark and Performance Information Section

Effective on or about August 21, 2018, the FTSE EPRA/NAREIT Developed Index will replace the FTSE EPRA/NAREIT Developed ex-US Index as the Fund’s benchmark index because the new index more closely aligns to the Fund’s investment strategies as updated by this supplement. Additionally, the Fund will add the broad-based market index the MSCI World Index to its Average Annual Total Returns table. Accordingly, the following information shall be incorporated into the “Performance Information” section of the Prospectus:

 

Average Annual Total Returns For the period ended December 31, 2017

 

     1 Year      5 Years      10 Years      Since Inception  
Salient International Real Estate Fund – Class A (Inception: 4/28/06)
                                   
Return Before Taxes
     14.35      1.48      0.98      2.33
Return After Taxes on Distributions
     11.43      –0.76      –1.56      –0.01
Return After Taxes on Distributions and Sale of Fund Shares
     8.33      0.17      -0.33      0.86
Salient International Real Estate Fund – Class C (Inception: 4/28/06)
                                   
Return Before Taxes
     19.73      2.13      0.93      2.18
FTSE EPRA/NAREIT Developed ex-US Index
     20.82      5.48      2.12      3.82
FTSE EPRA/NAREIT Developed Index
     10.36      6.32      3.28      4.11
MSCI World Index
     23.07      12.26      5.63      6.47

 

After-tax returns are calculated using the historical highest individual Federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown only for the Class A and Institutional Class shares. After-tax returns for other classes will vary.

 

Corresponding changes will also be made to the section of the Prospectus describing the indices used by the Forward Funds.

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Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName Forward Funds
Prospectus Date rr_ProspectusDate May 01, 2018
Document Creation Date dei_DocumentCreationDate Aug. 20, 2018
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