San Francisco, Sept. 25, 2013 (GLOBE NEWSWIRE) -- Expanding its set of investment strategies that seek durable
income in the current environment of low yields and rising
bond market risks, Forward (Forward Management,
LLC) has launched Forward Dynamic Income Fund (FDYTX), the third
income-oriented mutual fund it has introduced within the last 10
months.
The Dynamic Income Fund seeks total return, with dividend and
interest income as major components, with less downside volatility
than the S&P 500 Index. Using an investment approach that
is rare in the marketplace, it blends two underlying strategies
with which Forward has extensive experience: a global
dividend capture strategy, which is currently used across several
global and international dividend funds, and a tactical allocation
strategy currently employed in Forward Tactical Enhanced Fund.
"Investors have been battered by what some call 'the return-free
risks' in today's shifting bond market," said Alan Reid, CEO of
Forward. "We felt there was a real need for a fund that could
pursue bond-like outcomes while aiming to minimize increasing bond
market risk factors. Fortunately, we already had the tools in
place to craft a strategy like that."
The global dividend capture strategy capitalizes on what some
studies have identified as the tendency for stock prices to drift
higher in advance of their dividend payments. The fund will
invest in equity, fixed income securities and hybrid securities,
including common and preferred stocks, convertible bonds, master
limited partnerships and real estate investment trusts of companies
across all market capitalization ranges, including those with
one-time dividends. The tactical allocation strategy seeks to hedge
against downside volatility by continuously adjusting long and
short equity market exposure based on analysis of market
conditions. The tactical strategy may also employ some degree
of leverage to help increase its return potential and will invest
in high dividend-paying ETFs and securities.
Portfolio managers for the new fund are Jim Welsh, who manages
Forward Tactical Enhanced Fund, and David McGanney. The
fund's portfolio will typically allocate up to 75% of assets to the
dividend capture strategy and 25% to the tactical allocation
strategy.
Forward is kicking off the launch of the strategy with a
multi-city road show featuring the portfolio managers from the
Forward Dynamic Income Fund as well as the recently launched
Forward Select Income Opportunity Fund, managed by portfolio
manager Joel Beam. At these events, designed for financial
advisors and other investment professionals, the managers will
review how their new strategies aim for durable yields while
minimizing risk. For more information on the road shows, which will
run from October 7 - 24, 2013, visit
www.forwardinvesting.com/durable-income.
Forward continues to expand its roster of income-generating
strategies, which include a family of dividend strategies, an
emerging market corporate debt fund and a range of real estate and
bond strategies. In late 2012, the firm introduced Forward Income
Builder Fund, which invests in a diverse mix of income-producing
asset classes, and in July launched the Forward Select Income
Opportunity Fund, which invests globally for total return and
income with a focus on senior securities.
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.
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.
Forward Select Income Opportunity Fund seeks total return through current income and long-term capital appreciation.
Forward Tactical Enhanced Fund's investment objective is to
produce above-average, risk-adjusted returns, in any market
environment, while exhibiting less downside volatility than the
S&P 500 Index.
Correlation is a statistical measure of how two securities move in relation to each other.
Leverage is the use of various financial
instruments or borrowed capital, such as margin, to increase the
potential return of an investment. Preferred
securities are securities that have characteristics of
both equity and debt securities. 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. 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
Dynamic Income Fund, Forward Income Builder Fund, Forward Select
Income Fund, Forward Select Income Opportunity Fund, Forward
Tactical Enhanced 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
Dynamic Income Fund, Forward Income Builder Fund, Forward Select
Income Fund, Forward Select Income Opportunity Fund, Forward
Tactical Enhanced 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 Dynamic Income Fund, Forward Income Builder Fund,
Forward Tactical Enhanced 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 Dynamic Income
Fund, Forward Income Builder Fund, Forward Select Income
Opportunity Fund, Forward Tactical Enhanced 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)
Investing in a non-diversified fund involves the risk of
greater price fluctuation than a more diversified portfolio.
(Forward Dynamic Income Fund, Forward Select Income Fund, Forward
Select Income Opportunity Fund)
Higher portfolio turnover rates will involve greater
transaction costs, and may increase the potential for taxable
distributions being paid to shareholders. (Forward Tactical
Enhanced 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
Dynamic Income Fund, 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 Dynamic Income Fund,
Forward Income Builder Fund, Forward Tactical Enhanced
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 Dynamic Income Fund, 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.
There is no guarantee the companies in our portfolio
will continue to pay dividends.
Alan Reid is a registered representative of Forward Securities, LLC.
Jim Welsh is a registered representative of ALPS Distributors, Inc.
Forward Funds are distributed by Forward Securities, LLC.
Not FDIC Insured | No Bank Guarantee | May Lose Value
©2013 Forward Management, LLC. All rights reserved.