Forward Emerging Markets Fund

Class A

Investment Strategy

Updated as of:
September 30, 2008

An investment portfolio of 70-120 emerging market equities

	use a bottom-up and value-oriented approach to identify and invest in emerging market companies that are undervalued compared to companies in the developed world
	quantitative and qualitative screens help identify 1,300 core companies based on financial liquidity and relative financial strength versus other companies in their sector
	a team of 14 emerging market specialists work to analyze investments and create the portfolio using a long-established, proprietary database
	the Fund is managed using an active and disciplined investment style

Investment Process

Identify companies in emerging markets that are undervalued and show strong fundamentals

	start with a universe of approximately 6,100 companies in emerging markets
	employ a series of screens to narrow the universe down to 1,300 core companies that meet the Fund's investment guidelines
	review these companies to determine those which have the best potential for growth and return
	use bottom-up, top-down and thematic analysis to ensure investment candidates meet the Fund's investment guidelines and employ risk control measures to address changing markets

Perform qualitative and quantitative screening to narrow the investment universe to the core company candidates

use data and research techniques to analyze the finances and potential performance of each core company

two primary quantitative tests review:

the strength of each company's balance sheet
the potential of the company to generate cash flow

companies are then ranked using proprietary valuation techniques

Deep fundamental analysis is conducted to determine ideal investment candidates

	review of macroeconomic risk
	company and management team visits to assess core companies

A portfolio is created with approximately 70-120 equities

	only Pictet's top-ranked companies are included in the portfolio
	active and disciplined investment style to continually review investments against changing market conditions and investment performance
	approximately 80% of stock holdings have liquidity of greater than $10M per day

		Class: A Change to: Investor Change to: Institutional

Overview

Category:	Emerging Markets
Ticker Symbol:	FEMAX
CUSIP:	349913517
Benchmark:	MSCI Emerging Markets Index
Inception:	May 1, 2008
Net Assets:	$2.1 Million
Load Fee:	5.75%
Dealer Concession:	5.00%¹
Trail:	0.25²
Gross Expense Ratio:	2.34%
Net Expense Ratio:	1.89%³

Minimum Investment

Initial:	$100,000

Statistics

Price/Book:*	3.67
Forward P/E:*	9.61
EPS Growth Rate:*	19.36%
Long-Term Debt-to-Equity:*	0.05%
Weighted Avg. Market Capitalization:*	$35.6 Billion
Avg. Capitalization:*	$25.2 Billion
Number of Holdings:	100
Annualized Turnover:	188.08%

¹Maximum concession allowed—see prospectus for more details.

²Additional maximum of 0.20% may be allowable under the Shareholder Services Plan.

³The Fund’s investment advisor has contractually agreed to waive a portion of its fees and reimburse other expenses until April 30, 2009, in amounts necessary to limit the Fund’s operating expenses (exclusive of brokerage costs, interest, taxes, dividends and extraordinary expenses) for Class A shares to an annual rate (as a percentage of the Fund’s average daily net assets) of 1.89%.

*Data refers to the Fund’s holdings and not to the Fund itself.

EPS Growth Rate represents current year consensus estimates weighted by distribution of the portfolio.

Price/Book Ratio and Price/Earnings represent equity securities within the Fund's portfolio, and are not intended to demonstrate Fund growth income earned by the Fund, or distributions made by the Fund.

Prospectus

Performance

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