Company Press Release

San Francisco, November 29, 2011 – Forward Management, LLC (Forward) has announced the introduction of a new investor share class for the $1.2 billion, Forward Select Income Fund (FFSLX) http://www.forwardfunds.com/FFOnline/FundPage.html?baseID=76. The Select Income strategy, which focuses on preferred securities of real estate investment trusts (REITs) and provides attractive yields, becomes the fifth fund in Forward’s real estate line-up to be made directly available to retail investors, following the launch of investor share classes for the Forward International Real Estate Fund (FFIRX), the Forward Real Estate Long/Short Fund (FFSRX), Forward Real Estate Fund and the Forward Global Infrastructure Fund (FGLRX) earlier this year.

The new investor share class for Select Income carries no sales load. It also offers a lower investment minimum than the fund’s existing no-load institutional share class, enabling individuals to start investing with as little as $500.

“We believe the launch of a no-load share class for Select Income is great news for investors who have been discouraged by the current low-yield income environment,” said Forward CEO J. Alan Reid, Jr. “Select Income offers an alternative way to target reliable, steady income, offering the potential for the kind of yields that are difficult to find in the current fixed-income landscape,” he continued. “REITs have historically had low-correlation to other asset classes providing investors with an additional highly sought after benefit1.”

Forward’s real estate investment team manages five mutual funds with more than $1.7 billion in total assets as of September 30, 2011.

The team, including Select Income’s lead portfolio manager Joel Beam, recently released an overview titled, REIT Preferred Stocks: an Income Solution Often Overlooked http://www.forwardfunds.com/pdfs/market_insights/2011-REIT-Preferred-Stocks.pdf. It notes that REIT preferred stocks offer “stable cash flow, compelling current dividends, low correlation to stocks and bonds, upside potential and priority claim on cash flow as senior securities,” which are attractive characteristics for those searching for stable, reliable sources of income.

With more than 20 years of shared history, Forward’s real estate team has honed its valuation and analytical disciplines based on lessons learned through four major real estate industry cycles. The team conducts rigorous on-the-ground global fundamental research with an emphasis on deep knowledge of properties and management teams. It is also distinguished by hands-on research by portfolio managers, access to an expansive industry network and proprietary modeling. Forward’s Real Estate funds are team-managed with each fund having a lead portfolio manager.

About Forward Management, LLC

Forward Management, LLC, is a privately-held asset management firm that uses a forward-thinking, problem-solving approach to help investors and advisors navigate a shifting, uncertain investment climate. Based in San Francisco, the firm is the investment advisor to the Forward Funds. It gives investors and their advisors access to a broad spectrum of investment and asset allocation solutions, including an evolving set of alternatives to traditional, long-only investing. As of September 30, 2011, Forward Management had a total of $5.1 billion in assets under management in a product set including mutual funds, separate account strategies, and limited partnerships. More information on Forward Management and the Forward Funds can be found at www.forwardmgmt.com.

Please consider the objectives, risks, charges and expenses carefully before investing in the fund. A prospectus with this and other information may be obtained by calling (888) 312-4100 or by visiting www.forwardfunds.com. Please read carefully before making a final investment decision.

A fund that concentrates its investments in opportunities in the real estate industry or otherwise invests in real estate-related securities is subject to the risks associated with direct ownership of real estate. Real estate values can fluctuate as a result of general and local economic conditions, over-building and increased competition, increases in property taxes and operating expenses, changes in zoning laws, casualty or condemnation losses, regulatory limitations on rents, changes in neighborhood values, increases in interest rates, and defaults by borrowers or tenants. The value of equities that service the real estate business sector may also be affected by such risks. (International Real Estate, Real Estate, Real Estate Long/Short) 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. (Global Infrastructure, International Real Estate, Real Estate Long/Short) A fund that concentrates in a particular industry will involve a greater degree of risk than a fund with a more diversified portfolio. A “non-diversified” fund has the ability to invest a larger percentage of its assets in the securities of a smaller number of issuers than a “diversified” fund. The net asset value per share of a non-diversified fund can be expected to fluctuate more than that of a comparable diversified fund. (Global Infrastructure, International Real Estate, Real Estate, Real Estate Long/Short)

Borrowing for investment purposes creates leverage, which can increase the risk and volatility of a fund. A fund’s use of short selling involves additional investment risks and transaction costs, and creates leverage, which can increase the risk and volatility of a fund. (Real Estate Long/Short)

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. Correlation refers to the statistical measure of how two securities move in relation to each other and is computed as the correlation coefficient, with ranges from -1 to +1.

Forward Select Income Fund seeks high current income and potential for modest long-term growth of capital.

Forward Global Infrastructure Fund seeks total return through capital appreciation and current income.

Forward International Real Estate Fund seeks total return from both capital appreciation and current income.

Forward Real Estate Fund seeks income with capital appreciation as a secondary goal.

Forward Real Estate Long/Short Fund seeks total return through a combination of high current income relative to equity investment alternatives, plus long-term growth of capital.

Alan Reid is a registered representative of ALPS Distributors, Inc. Forward Funds are distributed by ALPS Distributors, Inc. ALPS Distributors Inc., is not affiliated with Forward Management or Kanter & Company. Separately Managed Accounts and related investment advisory services are provided by Forward Management, a federally regulated Investment Advisor.

Not FDIC Insured | No Bank Guarantee | May Lose Value


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