Performance

The performance quoted represents past performance, does not guarantee future results and current performance may be lower or higher than the data quoted. The investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. The returns assume reinvestment of dividends and distributions, if any. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Performance data current to the most recent month end may be obtained at www.forwardfunds.com.

¹ Prior to May 1, 2008, the Fund was named the Forward Global Emerging Markets Fund.

² Pictet Asset Management Limited has been the Fund’s sub-advisor since September 1, 2005. Prior to September 1, 2005, the Forward International Equity Fund was known as the Forward Hansberger International Growth Fund and the sub-advisor was Hansberger Global Investors, Inc. Prior to March 2000, the Fund was known as the International Equity Fund and its sub-advisor was Templeton Investment Counsel, Inc. Performance figures shown below for periods before September 1, 2005 represent performance of the prior sub-advisors to the Fund. Accordingly, performance figures for periods before September 1, 2005, do not reflect the current strategy or the current sub-advisor’s performance.

³ Unhedged USD.

⁴ Previously known as Lehman Brothers.

⁵ Prior to May 1, 2008, the Fund was named the Forward Hoover Mini-Cap Fund.

⁶ Prior to May 1, 2008, the Fund was named the Forward Hoover Small Cap Equity Fund.

^(a) The Fund’s investment advisor has contractually agreed to waive a portion of its fees and reimburse other expenses until April 30, 2009, in amounts necessary to limit the Fund’s operating expenses (exclusive of brokerage costs, interest, taxes, dividends and extraordinary expenses) for the Fund’s Investor Class shares to the annual rate (as a percentage of the Fund’s average daily net assets) listed.

Investing in foreign securities, especially emerging markets, will involve certain additional risks, including exchange rate fluctuation, social and political instability, less liquidity, greater volatility and less regulation. Small company stocks are generally riskier than large company stocks due to greater volatility and less liquidity. Real estate funds will be subject to a higher degree of market risk due to concentration in a specific industry or in geographic regions. Investments in real estate and REITS have various risks including vacancies and devaluation based upon adverse economic or regulatory changes. High-yield bonds involve a greater risk of default and price volatility than U.S. Government and other high quality bonds. High-yield/high-risk bonds can experience sudden and sharp price swings which will affect net asset value.

The Forward Long/Short Credit Analysis Fund will invest in lower-rated debt securities and may utilize derivatives for hedging purposes. The Fund's use of short selling involves additional risks and transaction costs, and creates leverage, which can increase the volatility of the Fund. The Fund may invest a larger percentage of its assets in the securities of a smaller number of issuers, since it is a “non-diversified” mutual fund.

The SEC Yield is based on current market (not portfolio cost) for the holdings during the 30-day period and does not represent what the Fund will actually pay.

The MSCI All Country Asia ex-Japan Index is a free float-adjusted market capitalization weighted index designed to measure the equity market performance of developed and emerging markets in Asia (ex-Japan).

The MSCI Emerging Markets Europe 10/40 Index is a free float-adjusted market capitalization index designed to measure equity performance in the emerging markets of Europe and adjusted for the limitations imposed by the UCITS III (Undertakings for Collective Investment in Transferable Securities) directive on funds incorporated in member states of the European Union. The UCITS III directive constrains the weight of any single group entity, as defined therein, at 10% of a fund’s total assets and the sum of the weights of all group entities representing more than 5% of the fund at 40% of the fund's total assets.

The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets.

The MSCI All Country World Index ex-USA is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets, excluding the United States.

The Citigroup World Broad Investment-Grade (BIG) Bond ex-U.S. Index is a market capitalization weighted index that tracks the performance of international fixed rate bonds that have remaining maturities of one year or longer and that are rated BBB-/Baa3, or better, by S&P or Moody’s, respectively. This index excludes the U.S. and is unhedged USD.

The Merrill Lynch European Currency High Yield Index tracks the performance of below investment grade sterling, euro and euro legacy currency denominated bonds of corporate issuers domiciled in countries having an investment grade foreign currency long-term debt rating based on a composite of Moody’s and S&P. This index is unhedged USD.

The JPMorgan Government Bond Index-Emerging Markets Global Diversified (GBI-EM Global Diversified) is a comprehensive global local emerging markets index that consists of regularly traded, liquid fixed-rate, domestic currency government bonds and includes only the countries that give access to their capital market to foreign investors (excludes China, India, and Thailand). The index is market capitalization weighted, with a cap of 10% to any one country. This index is unhedged USD.

The MSCI EAFE Small Cap Index is an unmanaged, market-weighted index of small companies in developed markets, excluding the U.S. and Canada.

The Barclays Capital U.S. Corporate High-Yield Index covers the USD-denominated, non-investment grade, fixed-rate, taxable corporate bond market. Securities are classified as high-yield if the middle rating of Moody’s, Fitch, and S&P is Ba1/BB+/BB+ or below. The Barclays Capital U.S. Municipal Index covers the USD-denominated long-term, tax-exempt bond market. The index has four main sectors: state and local general obligation bonds, revenue bonds, insured bonds and pre-refunded bonds.

The Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index. The Russell 3000 Index represents approximately 98% of the investable U.S. equity market.

The FTSE NAREIT Equity REITs Index is representative of the tax-qualified REITs listed on the New York Stock Exchange, the American Stock Exchange and the NASDAQ National Market.

The S&P 500 Index consists of 500 stocks chosen for market size, liquidity and industry group representation. It is a market value-weighted index and one of the most widely used benchmarks of U.S. stock performance.

All indexes mentioned are unmanaged indices and are adjusted to reflect the reinvestment of dividends. The index figures do not reflect any deduction for fees, expenses or taxes. It is not possible to invest directly in any index.

The Sierra Club Stock Fund is professionally managed under the supervision of Forward Management, the independent Investment Advisor. The fund may choose not to purchase or retain investments that may be profitable if the companies being considered are in conflict with the established environmental and social guidelines of the Sierra Club.

Sierra Club® is a registered trademark of the Sierra Club.

Not FDIC Insured | No Bank Guarantee | May Lose Value