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Press Release
Ellen Snook, Peppercom, Inc.
(415) 438-9821
FORWARD FUNDS TO ACQUIRE KENSINGTON FUNDS
San Francisco, February 23, 2009 – Forward Management, LLC investment advisor to the Forward Funds, will add the Kensington Funds from the Kensington Investment Group, Inc to the Forward Funds series. The addition, pending shareholder approval in April, would create a combined fund family offering investors 35 mutual funds in no-load and load-share classes with more than $3.7 billion in assets under management.
“Kensington’s investment team has built deep expertise in global real estate and infrastructure—the Global Infrastructure Fund invests in companies that may benefit from economic stimulus packages and the Select Income Fund offers investors the potential to generate significant income,” said J. Alan Reid, Jr., chief executive officer of Forward Management. “These portfolios complement Forward’s extensive roster of funds and offer investors further opportunities to diversify their portfolios with income-oriented products,” he added.
Following shareholder approval Kensington Funds will be branded as Forward Funds. The Kensington Select Income Fund (KIFAX), the Kensington Global Infrastructure Fund (KGIAX) and the Kensington Strategic Realty (KSRAX), will maintain their investment strategies and continue to be managed by current portfolio managers.
Kensington’s Global and International Real Estate Funds (KGFAX, KIRAX) will merge to create the Forward International Real Estate Fund. The portfolio will continue to be co-managed by Paul Gray and Michael McGowan. Additionally, Kensington Real Estate Securities (KREAX) Fund will merge into Forward Real Estate Fund1 (FFREX/FPREX). Forward Real Estate Fund was launched in 1999 and has a solid, long-term track record of investing in U.S. real estate management companies using a core-focused approach. The fund is managed by Richard Imperiale, a veteran of real estate investing. The management transition of these funds will bring additional expertise and resources that will allow Kensington’s real estate investment team to gain an increased focus on the international arena.
“Joining forces with Forward will provide our team with the resources and capacity to run our funds more effectively and efficiently, while allowing us to focus further on performance and clients,” remarked Kensington president, John Kramer.
“With low valuations in real estate – and the potential for substantial yield opportunities – these portfolios offer investors focused on retirement additional alternatives,” added J. Alan Reid, Jr., chief executive officer of Forward Management. “This strategic transaction will expand our organization, allowing us to better serve our shareholders, and supporting our strategy of investing in companies and products that enhance and diversify our offerings,” he concluded.
The acquisition of the Kensington Funds marks Forward Managements third acquisition in the last year. Forward acquired Accessor Capital Management LP (Accessor), investment advisor to the Accessor Funds in 2008, as well as the assets of Berkeley Capital Management, LLC (Berkeley) including the investment portfolios and team responsible for managing the Global Dividend, International Dividend, U.S. Dividend and SmallMid Core Portfolios.
This transaction also will significantly expand Forward’s income/dividend-oriented product offerings. The Kensington portfolio management team will join the teams from Berkeley and Accessor, further strengthening Forward’s internal asset management capabilities.
About Forward Management, LLC
Forward Management, LLC, based in San Francisco, is the investment advisor to the Forward Funds and the Accessor Funds. The firm also markets a range of separately managed accounts. Forward Management offers institutional money managers, financial advisors and individual investors access to industry leading investment managers, investment products and services. The firm specializes in identifying sub-advisors who have long track records of managing assets in specific investment disciplines and asset classes. More information on Forward Management and the Forward Funds can be found at www.forwardmgmt.com.
About Kensington Investment Group Kensington Investment Group, Inc. is a registered investment adviser specializing in global securities investment management focused in real estate, infrastructure and senior securities. Founded in 1993 by principals who have worked together managing portfolios since the mid-1980s, Kensington applies a fundamental, value-driven investment methodology to industries that generate stable, growing income streams and offer the opportunity for long term growth. More information on the Kensington Funds can be found at www.kig.com.
Investments in the Kensington Funds are subject to the risks related to direct investment in real estate, such as real estate risk, regulatory risks, concentration risk, and diversification risk. By itself, the funds do not constitute a complete investment plan and should be considered a long-term investment for investors who can afford to weather changes in the value of their investments. There is no guarantee that the investment objective will be achieved. Kensington’s international and global funds invest in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. Investors should be aware of the risks involved with investing in a non-diversified fund concentrating in real estate securities, such as declines in the value of real estate and increased susceptibility to adverse economic or regulatory developments. The funds may also invest in small or relatively new or unseasoned companies, which involve additional risks.
Forward Real Estate Fund, a REIT fund, will be subject to a higher degree of market risk because of concentration in a specific industry, sector or geographic sector. Risks also include declines in the value of real estate, general and economic conditions.
Because the Kensington Global Infrastructure Fund concentrates its investments in infrastructure-related entities, the fund has a greater exposure to the potential adverse economic, regulatory, political and other changes affecting such entities. The fund is a non-diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Therefore, the fund is more exposed to individual stock volatility than a diversified fund. The fund also invests in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods.
Certain of the Kensington Funds can short securities. Short sale risk includes the risk of loss due to increase in the market value of borrowed securities between the date of short sale and the date the fund replaces the security.
Certain of the Kensington Funds may invest in asset backed and mortgage backed securities, which include additional risks such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments.
Certain of the Kensington Funds may borrow subject to certain limits. Borrowing may exaggerate the effect of any increase or decrease in the value of portfolio securities or the NAV of the Fund, and money borrowed will be subject to interest costs. Under adverse market conditions, the Fund might have to sell portfolio securities at unfavorable securities prices to meet interest or principal payments, or to maintain leverage levels under certain limits.
The value of debt instruments will be affected by changes in the issuers’ credit ratings. An issuer whose credit rating has declined may also be unable to make payments of principal and/or interest.
Certain securities generally trade in lower volume and may be less liquid. Certain of the Kensington Funds could lose money if it cannot sell a security at the time and price that would be most beneficial to the Fund.
Mutual fund investing involves risk; principal loss is possible.
Kensington Investment Group, Inc. is the investment adviser to the Kensington Funds which are distributed by Quasar Distributors, LLC.
The Forward Funds are distributed by ALPS Distributors, Inc. J. Alan Reid, Jr. is a registered representative of ALPS Distributors, Inc. Quasar is not affiliated with Forward Management, Forward Funds or ALPS Distributors, Inc. (2/09)
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