1. Endurance Long/Short
Alternative Solutions as of June 30, 2012
Portfolio Management Objective
The fund is team managed and all The fund seeks to provide long-term growth of capital.
investment decisions are made jointly by
the team. Mr. Readerman has primary Overview
responsibility for the day-to-day
management of the fund. The members of The fund invests, both long and short, in equity securities of global issuers, and may invest in
the team are: derivative instruments to gain or manage exposure to the equity markets and individual issuers.
The fund’s investments will include holdings across different geographies, industries and
David Readerman, CFA sectors. The fund may invest in equity securities of issuers in all market capitalization ranges,
Portfolio Manager and may also invest in securities that are not publicly traded.
29 Years Experience
• Investment strategy is designed to identify trends that may have a disruptive impact on and
Jim O’Donnell, CFA result in significant changes to global business markets, including new technology
developments and the emergence of new industries.
CIO
25 Years Experience • Uses an equity-research-driven investment process along with competitive analysis to identify
undervalued and overvalued securities.
Fund Details • Will take long positions in investments where the manager expects future price appreciation
and short positions in investments where the manager expects a decrease in an issuer’s
Share Class Ticker CUSIP market share or adverse negative impacts to an issuer’s fundamental business operations.
Investor FENRX 34986P481 • Net exposure is actively managed between long and short positions based on current and
Institutional FENIX 34986P473 anticipated changing investment outlooks and the strategic investment view.
• Short positions may equal up to 100% of the fund’s net asset value, and hedging strategies
Advisor: Forward Management, LLC may be used to address short-term market volatility and business cycles.
Category: Long/Short Equity Performance (%)
Benchmark: MSCI All Country World
Index/HFRX Equity Index Since
2Q YTD 1 YR 3 YR 5 YR 10 YR
Inception
Dividend Frequency: Quarterly Investor -7.16 -0.96 — — — — -0.96
# of Holdings: 57 Institutional -7.12 -0.80 — — — — -0.80
Net Assets: $3.80M MSCI All Country World Index -5.36 6.01 — — — — —
HFRX Equity Hedge Index -2.65 1.18 — — — — —
Expense Ratio
Returns for periods greater than one year are annualized. than the data quoted. The investment return and
Share Class Inception Date Gross Net
The Fund’s investment advisor is contractually obligated principal value of an investment will fluctuate so
to waive a portion of its fees and reimburse other that shares, when redeemed, may be worth more
Investor 12/31/11 2.84 2.64 expenses until April 30, 2013 in amounts necessary to
limit the Fund’s operating expenses (exclusive of or less than their original cost. Performance data
Institutional 12/31/11 2.49 2.29 brokerage costs, interest, taxes, dividends, acquired fund current to the most recent month end may be
fees and expenses, and extraordinary expenses) for the obtained at www.forwardinvesting.com.
Fund’s Investor Class and Institutional Class shares to an Investment performance reflects fee waivers in
annual rate (as a percentage of the Fund’s average daily
net assets) of 2.34% and 1.99%, respectively. This effect. In the absence of fee waivers, total return
expense limitation arrangement may not be terminated would be lower. Total return is based on NAV,
by the Fund’s investment advisor prior to such date assuming reinvestment of all distributions.
under any circumstances.
Performance does not reflect the deduction of
The performance quoted represents past taxes that a shareholder would pay on fund
performance, does not guarantee future results distributions or the redemption of fund shares.
and current performance may be lower or higher
www.forwardinvesting.com

2. Endurance Long/Short
Top Ten Holdings (%) Sector Allocation
% of Sector % Long % Short Total Exposure Net Exposure
Net
Security Assets Information Technology 64.97 -9.01 73.98 55.96
Qualcomm, Inc. 20.50 Industrials 0.87 -4.25 5.12 -3.38
Apple, Inc. 18.43 Financials 1.51 0.00 1.51 1.51
AT&T, Inc. 17.25 Health Care 0.87 -0.29 1.16 0.58
Equinix, Inc. 6.47 Materials 3.49 0.00 3.49 3.49
Microsoft Corp. 5.47 Consumer Discretionary 0.70 -2.45 3.15 -1.75
EMC Corp. 3.71 Energy 1.43 -5.09 6.52 -3.66
Google, Inc., Class A 3.05 Net Cash and Cash Equivalents 33.65 0.00 33.65 33.65
Monsanto Co. 2.92 Consumer Staples 0.00 -4.12 4.12 -4.12
Sourcefire, Inc. 2.70 Telecommunication Services 17.25 0.00 17.25 17.25
Fusion-io, Inc. 1.48 Other 0.59 -0.12 0.71 0.47
These holdings may not reflect the current or
future positions in the portfolio.
Theme Allocation
Sector % Long % Short Total Exposure Net Exposure
TMT+ 82.16 -9.84 92.00 72.32
E3 5.11 -8.00 13.11 -2.89
Consumer & Emerging Mkts 3.14 -7.37 10.51 -4.23
Other 1.27 -0.12 1.39 1.15
Net Cash and Cash Equivalents 33.65 0.00 33.65 33.65
Theme Descriptions: E3 – Category focuses on Energy/Efficiency/Environment; Consumer & Emerging Markets -
Category focuses on the rise of the emerging markets consumer; TMT+ - Category focuses on Technology/Media/
Telecom.
For more information visit us at www.forwardinvesting.com
You should consider the investment objectives, or other property held by the ETFs. measure the equity market performance of developed and
risks, charges and expenses carefully before Foreign securities, especially emerging or frontier emerging markets. One cannot invest directly in an index.
investing. A prospectus with this and other markets, will involve additional risks including The HFRX Equity Hedge Index represents a universe of
exchange rate fluctuations, social and political investment opportunities for equity-oriented hedge funds
information about the fund may be obtained by instability, less liquidity, greater volatility and less with a broad investment mandate. The index contains
calling (800) 999-6809 or by downloading one at regulation. long and long/short hedge funds investing in equity and
www.forwardinvesting.com. It should be read Investing in a non-diversified fund involves the risk of equity derivative securities. One cannot invest directly in
carefully before investing. an index.
greater price fluctuation than a more diversified
RISKS portfolio. The Forward Endurance Long/Short Fund was launched on
December 31, 2011, and has a limited operating history.
There are risks involved with investing, including loss Short selling involves additional investment risks and
of principal. Past performance does not guarantee David Readerman and Jim O’Donnell have earned the right
transaction costs, and creates leverage, which can to use the Chartered Financial Analyst designation. CFA
future results, share prices will fluctuate and you may increase the risk and volatility of a fund. Institute marks are trademarks owned by the CFA
have a gain or loss when you redeem shares. Investing in smaller companies generally will present Institute.
Borrowing for investment purposes creates leverage, greater investment risks, including greater price Forward Management is the investment advisor to the
which can increase the risk and volatility of a fund. volatility, greater sensitivity to changing economic Forward Funds.
Derivative instruments involve risks different from conditions and less liquidity than investing in larger, Forward Funds are distributed by Forward
those associated with investing directly in securities more mature companies. Securities, LLC.
and may cause, among other things, increased Alternative strategies typically are subject to increased Not FDIC Insured | No Bank Guarantee | May Lose Value
volatility and transaction costs or a fund to lose more risk and loss of principal. Consequently, investments ©2012 Forward Funds. All rights reserved.
than the amount invested. such as mutual funds which focus on alternative
Investing in Exchange-Traded Funds (ETFs) will subject strategies are not suitable for all investors. 2Q2012 FWD004099 103112
a fund to substantially the same risks as those The MSCI All Country World Index is a free float-adjusted
associated with the direct ownership of the securities market capitalization weighted index that is designed to
Financial Advisors: (888) 312-4100 Institutional Investors: (800) 882-9612