New Forward Fund Seeks Global Opportunities for Income and Value

Applies its $1.8 billion U.S. real estate strategy to a broader mix of assets


San Francisco, Aug. 6, 2013 (GLOBE NEWSWIRE) -- Forward (Forward Management, LLC) has launched Forward Select Income Opportunity Fund (FSOTX), a mutual fund that seeks total return through current income and long-term capital appreciation by investing across the capital structure of companies in the U.S. and globally. The fund pursues a value-oriented philosophy with a focus on senior securities.

"We believe that in today's climate, investors who want attractive yields and total returns need to look for unique, outcome-oriented strategies that transcend broad-market approaches," said Forward CEO Alan Reid. "We think it's the right time for a strategy that applies our expertise in senior securities to a broader and more flexible mix of bonds and equities."  

Forward Select Income Opportunity Fund will invest in equities, bonds and other senior securities, including preferred and hybrid securities, across a wide range of industry sectors including banks, insurance companies, real estate, industrials and telecoms. Forward's new fund expands on the strategy it has successfully applied to investing in U.S. real estate securities in the $1.8 billion1 Forward Select Income Fund.

"We are aiming for income within the context of total return," said Joel Beam, portfolio manager for Forward Select Income Opportunity Fund and Forward Select Income Fund.  "In today's environment of low interest rates and tight spreads, we want to build a portfolio that seeks to provide reasonable income along with the preservation and growth of capital over time." 

Beam said that in focusing on companies in the world's most developed nations, he is aiming for a risk/reward profile consistent with his philosophy of investing for long-term value. According to Beam, international banking reforms enacted since the financial crisis will result in "a substantial wave of new senior securities issuance" adding up to an estimated $100 billion over the next seven to 10 years. He estimates the total size of the senior securities universe as ranging from $250 billion to $300 billion. "The senior securities arena is one where an investor with the advantage of deep expertise can seek to be prudent and opportunistic at the same time," said Beam.

With more than 20 years of industry experience, Beam is a nationally recognized authority on preferred/senior securities and commercial real estate markets. He has been featured in Barron's, The Wall Street Journal, Bloomberg Markets, Forbes and the book, Cash Is King: Investing in REIT Preferreds to Generate Long-term Income.

With this latest fund launch Forward continues to expand its roster of income-generating strategies. In addition to Forward Select Income Fund, these include a family of dividend strategies, an emerging market corporate debt fund and a range of real estate and bond strategies. Last spring the firm introduced Forward Income Builder Fund, which invests in a diverse mix of income-producing asset classes.  

About Forward
The world has changed, leading investors to seek new strategies that better fit an evolving global climate. Forward's investment solutions are built around the outcomes we believe investors need to be pursuing - non-correlated return, investment income, global exposure and diversification. With a propensity for unbounded thinking, we focus especially on developing innovative alternative strategies that may help investors build all-weather portfolios. An independent, privately held firm founded in 1998, Forward (Forward Management, LLC) is the advisor to the Forward Funds. As of June 30, 2013, we manage more than $5.7 billion in a diverse product set offered to individual investors, financial advisors and institutions. More information on Forward can be found at www.forwardinvesting.com.

1 As of June 30, 2013

You should consider the investment objectives, risks, charges and expenses of the Forward Funds carefully before investing. A prospectus with this and other information may be obtained by calling (800) 999-6809 or by downloading one from www.forwardinvesting.com. It should be read carefully before investing.

Forward Income Builder Fund seeks high current income and some stability of principal.
Forward Select Income Fund seeks high current income and potential for modest long-term growth of capital.

S&P 500 Index is an unmanaged index of 500 common stocks chosen to reflect the industries in the U.S. economy. One cannot invest directly in an index.
Correlation is a statistical measure of how two securities move in relation to each other.
Preferred and hybrid securities are securities that have characteristics of both equity and debt securities.
Volatility is a statistical measure of the dispersion of returns for a given security or market index.

RISKS

There are risks involved with investing, including loss of principal. Past performance does not guarantee future results, share prices will fluctuate and you may have a gain or loss when you redeem shares.

Each allocation fund is a fund of funds, which invest in a mix of underlying Forward Funds. Shareholders of an allocation fund indirectly bear the expenses of the underlying funds. An allocation fund's allocations may be changed at any time. Asset allocation does not assure profit or protect against risk. (Forward Income Builder Fund)

Borrowing for investment purposes creates leverage, which can increase the risk and volatility of a fund. (Forward Income Builder Fund, Forward Select Income Fund, Forward Select Income Opportunity Fund)

Concentration in a particular industry will involve a greater degree of risk than a more diversified portfolio. (Forward Income Builder Fund, Forward Select Income Fund)

Derivative instruments involve risks different from those associated with investing directly in securities and may cause, among other things, increased volatility and transaction costs or a fund to lose more than the amount invested. (Forward Income Builder Fund, Forward Select Income Fund, Forward Select Income Opportunity Fund)

Investing in exchange-traded funds (ETFs) will subject a fund to substantially the same risks as those associated with the direct ownership of the securities or other property held by the ETFs. (Forward Income Builder Fund)

Foreign securities, especially emerging or frontier markets, will involve additional risks including exchange rate fluctuations, social and political instability, less liquidity, greater volatility and less regulation. (Forward Income Builder Fund, Forward Select Income Opportunity Fund)

Investing in lower-rated ("high yield") debt securities involves special risks in addition to those associated with investments in higher-rated debt securities, including a high degree of credit risk. (Forward Income Builder Fund)

Mortgage and asset-backed securities are debt instruments that are secured by interests in pools of mortgage loans or other financial instruments. Mortgage-backed securities are subject to, among other things, prepayment and extension risks. (Forward Income Builder Fund, Forward Select Income Opportunity Fund)

Investing in a non-diversified fu nd involves the risk of greater price fluctuation than a more diversified portfolio. (Forward Income Builder Fund, Forward Select Income Fund, Forward Select Income Opportunity Fund)

Investing in the real estate industry or in real estate-related securities involves the risks associated with direct ownership of real estate which include, among other things, changes in economic conditions (e.g., interest rates), the macro real estate development market, government intervention (e.g., property taxes) or environmental disasters.  These risks may also affect the value of equities that service the real estate sector. (Forward Income Builder Fund, Forward Select Income Fund, Forward Select Income Opportunity Fund)

Short selling involves additional investment risks and transaction costs, and creates leverage, which can increase the risk and volatility of a fund. (Forward Income Builder Fund)

Investing in smaller companies generally will present greater investment risks, including greater price volatility, greater sensitivity to changing economic conditions and less liquidity than investing in larger, more mature companies. (Forward Select Income Opportunity Fund)

Alternative strategies typically are subject to increased risk and loss of principal. Consequently, investments such as mutual funds which focus on alternative strategies are not suitable for all investors.

Diversification does not assure profit or protect against risk.

There is no guarantee the companies in our portfolio will continue to pay dividends.

Alan Reid is a registered representative of Forward Securities, LLC.

Forward Funds are distributed by Forward Securities, LLC.

Not FDIC Insured | No Bank Guarantee | May Lose Value

©2013 Forward Management, LLC. All rights reserved.


            

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