Morningstar Advisor - Spring 2007 - 59

Forward Funds offers investors strong results Forward Thinking Forward Funds in specialty asset classes and access to leading investment managers who are experts in their investment disciplines. Our family of fourteen mutual funds focuses on delivering alpha and complementing core portfolio holdings. Morningstar® Rankings™ as of February 28, 2007 Forward International Small Companies Fund Forward Hoover Mini-Cap Fund Forward International Equity Fund Forward Hoover Small Cap Equity Fund Sierra Club Stock Fund QUARTILE 7% 4% 8% 8% 10% 22% 20% 35% 34% 17% 33% 35% 1 2 MEDIAN 40% 58% 60% 3 4 3 5 1 3 5 1 3 5 10 1 3 1 3 5 1 Years Category Foreign Small/Mid Growth 25/82 10/64 Small Growth Foreign Large Growth 9/251 13/206 12/180 FFINX Small Growth 53/642 Large Growth 30/103 5/13 382/788 37/642 FFMIX 396/788 94/525 486/1675 397/1407 179/1122 SCFSX Ranking™ Ticker PTSCX FFSCX Rating™ Based on the Fund’s institutional class, risk- adjusted returns Based on the Fund’s investor class, risk- adjusted returns You should consider the investment objectives, risks, charges and expenses of the Forward Funds carefully before investing. A prospectus with this and other information about the Funds may be obtained by calling (800) 999-6809 or by downloading one at www.forwardfunds.com. It should be read carefully before investing. Small company stocks are generally riskier than large company stocks due to greater volatility and less liquidity. Foreign securities generally involve additional risks, social and political instability, reduced market liquidity and currency volatility. Alpha is a coefficient measuring risk-adjusted performance. Morningstar proprietary ratings reflect historical risk-adjusted performance as of 2/28/07. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five-, ten-year (if applicable) Morningstar Rating metrics. © 2007 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance, rankings and ratings are no guarantee of future results. Rankings and ratings change monthly. Investment return and principal value will fluctuate so that your shares, when redeemed may be worth more or less than their original purchase price. For each fund with at least a 3-year history, Morningstar calculates a Morningstar Rating based on Morningstar’s risk-adjusted return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in a category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages. The Morningstar Rating is for the specified share class; other classes may have different performance characteristics. International Small Companies Fund – Institutional received a 3 star rating among 82 funds, a 4 star rating among 64 funds and a 3 star rating among 13 funds for the 3-, 5- and 10-year period, respectively. International Equity Fund - Investor received a 4 star rating among 206 funds and a 4 star rating among 180 funds for the 3- and 5-year period, respectively. Hoover Mini Cap Fund- Institutional received a 5 star rating among 642 funds for the 3-year period. Hoover Small Cap Equity Fund – Investor received a 4 star rating among 642 funds and a 4 star rating among 525 funds for the 3- and 5-year period, respectively. Sierra Club Stock Fund – Investor received a 3 star rating among 1407 funds and a 4 star rating among 1122 funds for the 3- and 5-year period, respectively. The Percent Rank in Category is the funds' total-return percentile rank relative to all funds within the same Morningstar Category and is subject to change each month. Regarding number of funds, 1 = Best and 100 = Worst. The Category Absolute Rank is representative of a fund’s rank within its specific category and is based exclusively on fund performance. Forward Funds are distributed by ALPS Distributors, Inc. © 2007 Forward Funds Forward Funds are available in no-load and load classes. Call (888) 312-4100 or visit www.forwardfunds.com to learn more.

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Morningstar Advisor - Spring 2007

Table of Contents for the Digital Edition of Morningstar Advisor - Spring 2007