Distributions Schedule

¹Schedule subject to modification at the discretion of the Adviser, pursuant to authorization granted by the Board of Trustees. To the extent applicable and if available, the Funds will include in their December 2008 Capital Gains Distribution any undistributed net capital gains for the 12-month period ending October 31, 2008, as well as any net capital gain from any prior period. It is the Funds’ intention to distribute substantially all of its net investment income and net capital gains in order to avoid the imposition of Federal Tax and to ensure the Funds continue to qualify as a regulated investment company.

²As of December 31, 2007, the Forward Emerald Growth Fund, Forward Emerald Banking and Finance Fund, Forward Emerald Opportunities Fund, Forward Hoover Small Cap Equity Fund, Forward Hoover-Mini Cap Fund, Forward International Small Companies Fund, Forward Global Emerging Markets Fund, Forward International Equity Fund, Forward Progressive Real Estate Fund and Sierra Club Stock Fund are not classified for tax purposes as a Personal Holding Company (PHC).

³As of December 31, 2007, the Forward Legato Fund, Forward Large Cap Equity Fund, Forward Long/Short Credit Analysis Fund, Forward International Fixed Income Fund, Forward Asia Ex-Japan Equities Fund and Forward Eastern Europe Equities Fund are classified for tax purposes as a Personal Holding Company (PHC). In order to avoid the imposition of the Personal Holding Company tax, the Fund will distribute all of its net income and gains for the year ending December 31, 2008.

⁴Before October 30, 2006, the Fund was named the Forward Uniplan Real Estate Investment Fund. The Forward Progressive Real Estate Fund invests primarily in the securities of real estate investment trusts (REITs). The Fund pays monthly distributions consisting of dividend income, return of capital and capital gains, and the tax characteristics of these distributions cannot be determined until after the end of the calendar year since the REITs in which the Fund invests do not designate the composition (i.e. dividend income, return of capital and capital gains) of their payments until the new calendar year. These reclassifications do not affect the total amount of the distributions reported to shareholders and will be identified on the annual Form 1099-DIV shareholders receive for tax reporting.

Investing in foreign securities will involve certain additional risks, including exchange rate fluctuation, less liquidity, greater volatility and less regulation. Small company stocks are generally riskier than large company stocks due to greater volatility and less liquidity. REIT funds 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. 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.