Important Information for Forward Opportunities Shareholders

• Prior to liquidation and dissolution, shareholders of the Forward Opportunities Fund are entitled to exchange their shares for shares of the same class of another Forward Fund. If shareholders do not wish to exchange their shares, shareholders also may redeem shares as detailed in the Forward Fund’s Prospectus.
• On the liquidation date, September 2, 2008, each remaining shareholder of the Forward Opportunities Fund will receive a liquidating distribution equal to their proportionate interest in the net assets of the Fund. Prior to the Fund’s liquidation date, to avoid federal income and excise taxes, the Fund will distribute to the remaining shareholders all of the Fund’s investment company taxable income, if any, and all of the Fund’s realized net capital gain, if any, earned in its final taxable year.
• Shareholders may be subject to federal, state, local or foreign taxes on exchanges, redemptions or liquidations of shares. Shareholders should consult with their tax advisors for information regarding all tax consequences applicable to investments in the Forward Opportunities Fund.
• In connection with the liquidation of the Forward Opportunities Funds’ assets, the Fund will depart from its stated investment objectives and policies and will hold a significant portion of total assets in cash, U.S. government securities and other short-term debt instruments.
• If shares are currently held in a Forward Opportunities Fund tax-deferred account with Colorado State Bank as custodian (IRA, IRA Rollover, SEP-IRA and Coverdell accounts) shareholders can continue to maintain the account by exchanging their shares for shares of the same class of another Forward Fund. Shareholders also may establish retirement accounts with another institution and submit a transfer request accordingly. If no exchange, redemption or transfer action is taken, proceeds of liquidation will be invested in the Federated Prime Obligations Fund on September 2, 2008.

Small company stocks are generally riskier than large company stocks due to greater volatility and less liquidity. Funds that concentrate in a particular industry will involve a greater degree of risk than a fund with a more diversified portfolio.

An investment in money market funds is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although money market funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in these funds.