FORWARD FUNDS INC
NSAR-B, 1999-03-16
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<PAGE>      PAGE  1
000 B000000 12/31/98
000 C000000 0001047140
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 FORWARD FUNDS, INC.
001 B000000 811-8419
001 C000000 8009996809
002 A000000 433 CALIFORNIA STREET
002 B000000 SAN FRANCISCO
002 C000000 CA
002 D010000 94104
003  000000 N
004  000000 N
005  000000 N
006  000000 N
007 A000000 Y
007 B000000  5
007 C010100  1
007 C020100 SMALL CAPITALIZATION STOCK FUND
007 C030100 N
007 C010200  2
007 C020200 INTERNATIONAL EQUITY FUND
007 C030200 N
007 C010300  3
007 C020300 EQUITY FUND
007 C030300 N
007 C010400  4
007 C020400 GLOBAL BOND FUND
007 C030400 N
007 C010500  5
007 C020500 GLOBAL ASSET ALLOCATION FUND
007 C030500 N
007 C010600  6
007 C010700  7
007 C010800  8
007 C010900  9
007 C011000 10
008 A00AA01 BARCLAYS GLOBAL FUND ADVISERS
008 B00AA01 S
008 C00AA01 801-22609
008 D01AA01 SAN FRANCISCO
008 D02AA01 CA
008 D03AA01 94105
008 A00AA02 PACIFIC INVESTMENT MANAGEMENT CO.
008 B00AA02 S
008 C00AA02 801-48187
<PAGE>      PAGE  2
008 D01AA02 NEW PORT BEACH
008 D02AA02 CA
008 D03AA02 92660
008 A00AA03 TEMPLETON INVESTMENT COUNSEL, INC.
008 B00AA03 S
008 C00AA03 801-15125
008 D01AA03 FORT LAUDERDALE
008 D02AA03 FL
008 D03AA03 33394
008 A00AA04 WEBSTER INVESTMENT MGMT. CO. LLC
008 B00AA04 A
008 C00AA04 801-000000
008 D01AA04 SAN FRANCISCO
008 D02AA04 CA
008 D03AA04 94104
010 A00AA01 FIRST DATA INVESTOR SERVICES GROUP, INC.
010 B00AA01 84-1761
010 C01AA01 BOSTON
010 C02AA01 MA
010 C03AA01 02109
011 A00AA01 FIRST DATA DISTRIBUTORS, INC.
011 B00AA01 8-45467
011 C01AA01 WESTBORO
011 C02AA01 MA
011 C03AA01 01581
012 A00AA01 FIRST DATA INVESTOR SERVICES GROUP, INC
012 B00AA01 84-1761
012 C01AA01 BOSTON
012 C02AA01 MA
012 C03AA01 02109
013 A00AA01 ARTHUR ANDERSEN LLP
013 B01AA01 SAN FRANCISCO
013 B02AA01 CA
013 B03AA01 94105
013 B04AA01 9019
015 A00AA01 BROWN BROTHERS, HARRIMAN & CO.
015 B00AA01 C
015 C01AA01 BOSTON
015 C02AA01 MA
015 C03AA01 02109
015 C04AA01 3661
015 E01AA01 X
018  00AA00 Y
019 A00AA00 Y
019 B00AA00    5
019 C00AA00 FORWARDFUN
020 A000001 MONTGOMERY SECURITIES
020 B000001 94-1701676
020 C000001      8
020 A000002 BROADCORT -CIT
020 C000002      7
<PAGE>      PAGE  3
020 A000003 INVESTMENT TECHNOLOGY
020 C000003      7
020 A000004 MERRILL LYNCH
020 B000004 13-5674085
020 C000004      5
020 A000005 J. C. BRADFORD & CO.
020 C000005      3
020 A000006 HOWARD WEIL LABOUISSE
020 C000006      3
020 A000007 ROBERTSON STEPHENS
020 B000007 94-2524501
020 C000007      2
020 A000008 FIRST BOSTON CORP.
020 B000008 13-5659485
020 C000008      2
020 A000009 JEFFERIES & CO.
020 B000009 95-2622900
020 C000009      2
020 A000010 MACQUIRE EQUITIES INC.
020 C000010      1
021  000000       39
022 A000001 DEUTCHEBANK
022 B000001 13-6124068
022 C000001     32192
022 D000001     10712
022 A000002 BEAR STERNS & CO.
022 B000002 13-4946705
022 C000002     17979
022 D000002     16347
022 A000003 GOLDMAN SACHS
022 B000003 13-5108880
022 C000003     17870
022 D000003     11654
022 A000004 MERRILL LYNCH
022 B000004 13-5674085
022 C000004     10578
022 D000004      5925
022 A000005 FIRST BOSTON CORP
022 B000005 13-5659485
022 C000005      7002
022 D000005      6877
022 A000006 DEUTSCHE MORGAN GRENFELL
022 C000006      8542
022 D000006      1161
022 A000007 SALOMON BROTHERS INC.
022 B000007 13-5365580
022 C000007      4688
022 D000007      4540
022 A000008 CHASE MAHNHATTAN CORP
022 B000008 13-2633612
022 C000008      7284
<PAGE>      PAGE  4
022 D000008      1828
022 A000009 LEHMAN BROTHERS INC.
022 B000009 13-2518466
022 C000009      8784
022 D000009       199
022 A000010 BANKERS TRUST
022 B000010 13-4941247
022 C000010      3927
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<PAGE>      PAGE  6
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<PAGE>      PAGE  7
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<PAGE>      PAGE  8
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<PAGE>      PAGE  9
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<PAGE>      PAGE  10
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<PAGE>      PAGE  11
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<PAGE>      PAGE  12
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<PAGE>      PAGE  14
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<PAGE>      PAGE  15
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<PAGE>      PAGE  16
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<PAGE>      PAGE  18
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062 I000400   9.1
062 J000400   0.0
062 K000400   0.0
062 L000400   0.0
062 M000400  45.0
062 N000400  15.3
062 O000400   0.0
062 P000400  26.3
062 Q000400  54.8
062 R000400   0.0
063 A000400   0
063 B000400  0.0
064 A000400 N
064 B000400 N
066 A000400 N
067  000400 N
068 A000400 N
068 B000400 Y
069  000400 N
070 A010400 Y
070 A020400 N
070 B010400 Y
070 B020400 N
070 C010400 Y
070 C020400 N
070 D010400 Y
070 D020400 N
070 E010400 Y
070 E020400 N
070 F010400 Y
070 F020400 N
070 G010400 Y
070 G020400 N
070 H010400 Y
070 H020400 N
070 I010400 N
070 I020400 N
070 J010400 Y
070 J020400 Y
070 K010400 Y
070 K020400 N
070 L010400 Y
070 L020400 Y
070 M010400 Y
070 M020400 Y
070 N010400 Y
070 N020400 N
070 O010400 Y
<PAGE>      PAGE  20
070 O020400 N
070 P010400 N
070 P020400 N
070 Q010400 N
070 Q020400 N
070 R010400 N
070 R020400 N
071 A000400    127341
071 B000400     87205
071 C000400     41632
071 D000400  209
072 A000400  3
072 B000400      443
072 C000400        0
072 D000400        0
072 E000400        0
072 F000400       45
072 G000400       15
072 H000400        0
072 I000400        5
072 J000400       23
072 K000400        0
072 L000400        0
072 M000400        1
072 N000400       13
072 O000400        0
072 P000400        0
072 Q000400       15
072 R000400        6
072 S000400       16
072 T000400        0
072 U000400        0
072 V000400        0
072 W000400        4
072 X000400      143
072 Y000400       37
072 Z000400      338
072AA000400        0
072BB000400      667
072CC010400      162
072CC020400        0
072DD010400        0
072DD020400        0
072EE000400        0
073 A010400   0.0000
073 A020400   0.0000
073 B000400   0.0000
073 C000400   0.0000
074 A000400        0
074 B000400        0
074 C000400     3632
<PAGE>      PAGE  21
074 D000400    42084
074 E000400        0
074 F000400        0
074 G000400        0
074 H000400        0
074 I000400        0
074 J000400     3762
074 K000400       10
074 L000400      671
074 M000400       96
074 N000400    50255
074 O000400    19110
074 P000400        0
074 Q000400        0
074 R010400        0
074 R020400        0
074 R030400        0
074 R040400     1401
074 S000400        0
074 T000400    29744
074 U010400     2981
074 U020400        0
074 V010400     9.98
074 V020400     0.00
074 W000400   0.0000
074 X000400        6
074 Y000400        0
075 A000400        0
075 B000400    29905
076  000400     0.00
028 A010500    100102
028 A020500         0
028 A030500         0
028 A040500         0
028 B010500        28
028 B020500         0
028 B030500         0
028 B040500         0
028 C010500         0
028 C020500         0
028 C030500         0
028 C040500         0
028 D010500         0
028 D020500         0
028 D030500         0
028 D040500       196
028 E010500         0
028 E020500         0
028 E030500         0
028 E040500         2
028 F010500       127
<PAGE>      PAGE  22
028 F020500         0
028 F030500         0
028 F040500         0
028 G010500    100257
028 G020500         0
028 G030500         0
028 G040500       198
028 H000500         0
045  000500 Y
046  000500 Y
047  000500 Y
048  000500  0.050
048 A010500        0
048 A020500 0.000
048 B010500        0
048 B020500 0.000
048 C010500        0
048 C020500 0.000
048 D010500        0
048 D020500 0.000
048 E010500        0
048 E020500 0.000
048 F010500        0
048 F020500 0.000
048 G010500        0
048 G020500 0.000
048 H010500        0
048 H020500 0.000
048 I010500        0
048 I020500 0.000
048 J010500        0
048 J020500 0.000
048 K010500        0
048 K020500 0.000
062 A000500 N
062 B000500   0.0
062 C000500   0.0
062 D000500   0.0
062 E000500   0.0
062 F000500   0.0
062 G000500   0.0
062 H000500   0.0
062 I000500   0.0
062 J000500   0.0
062 K000500   0.0
062 L000500   0.0
062 M000500   0.0
062 N000500   0.0
062 O000500   0.0
062 P000500   0.0
062 Q000500   0.0
<PAGE>      PAGE  23
062 R000500   0.0
063 A000500   0
063 B000500  0.0
066 A000500 Y
066 B000500 N
066 C000500 N
066 D000500 N
066 E000500 N
066 F000500 N
066 G000500 Y
067  000500 N
068 A000500 N
068 B000500 N
069  000500 N
071 A000500    281708
071 B000500    144369
071 C000500     93861
071 D000500  154
072 A000500 12
072 B000500     1079
072 C000500      915
072 D000500        0
072 E000500        0
072 F000500      232
072 G000500      145
072 H000500        0
072 I000500       17
072 J000500      123
072 K000500        0
072 L000500        0
072 M000500       12
072 N000500       50
072 O000500        0
072 P000500        0
072 Q000500       47
072 R000500       57
072 S000500       23
072 T000500        0
072 U000500       13
072 V000500        0
072 W000500      178
072 X000500      897
072 Y000500      155
072 Z000500     1253
072AA000500        0
072BB000500      514
072CC010500        0
072CC020500     1734
072DD010500      693
072DD020500        0
072EE000500       83
<PAGE>      PAGE  24
073 A010500   0.0700
073 A020500   0.0000
073 B000500   0.0100
073 C000500   0.0000
074 A000500        0
074 B000500        0
074 C000500        0
074 D000500        0
074 E000500        0
074 F000500    99532
074 G000500        0
074 H000500        0
074 I000500        0
074 J000500        0
074 K000500        0
074 L000500      115
074 M000500       81
074 N000500    99728
074 O000500        0
074 P000500        0
074 Q000500        0
074 R010500        0
074 R020500        0
074 R030500        0
074 R040500     1340
074 S000500        0
074 T000500    98388
074 U010500    10013
074 U020500        0
074 V010500     9.83
074 V020500     0.00
074 W000500   0.0000
074 X000500        8
074 Y000500        0
075 A000500        0
075 B000500    96363
076  000500     0.00
SIGNATURE   JOHN MCGOWAN                                 
TITLE       ASST TREASURER      
 

WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

<TABLE> <S> <C>

<ARTICLE> 6
<SERIES>
   <NUMBER> 010
   <NAME> FOWARD SMALL CAPITALIZATION STOCK FUND
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-END>                               DEC-31-1998
<INVESTMENTS-AT-COST>                         24711910
<INVESTMENTS-AT-VALUE>                        27338657
<RECEIVABLES>                                  2510340
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                           6797449
<TOTAL-ASSETS>                                36646446
<PAYABLE-FOR-SECURITIES>                       4728377
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<OTHER-ITEMS-LIABILITIES>                        80563
<TOTAL-LIABILITIES>                            4808940
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                      29830975
<SHARES-COMMON-STOCK>                          2792359
<SHARES-COMMON-PRIOR>                                0
<ACCUMULATED-NII-CURRENT>                         2175
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                      (622391)
<ACCUM-APPREC-OR-DEPREC>                       2626747
<NET-ASSETS>                                  31837506
<DIVIDEND-INCOME>                                13317
<INTEREST-INCOME>                                45539
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                   51272
<NET-INVESTMENT-INCOME>                           7584
<REALIZED-GAINS-CURRENT>                      (622391)
<APPREC-INCREASE-CURRENT>                      2626747
<NET-CHANGE-FROM-OPS>                          2011940
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                      (22853)
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                        (64532)
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<GROSS-EXPENSE>                                 113027
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<PER-SHARE-NII>                                      0
<PER-SHARE-GAIN-APPREC>                           1.41
<PER-SHARE-DIVIDEND>                             (.01)
<PER-SHARE-DISTRIBUTIONS>                            0
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                              11.40
<EXPENSE-RATIO>                                   1.45
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

<TABLE> <S> <C>

<ARTICLE> 6
<SERIES>
   <NUMBER> 010
   <NAME> FOWARD SMALL CAPITALIZATION STOCK FUND
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
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<PERIOD-END>                               DEC-31-1998
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<PAID-IN-CAPITAL-COMMON>                      29830975
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<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                      (622391)
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<NET-ASSETS>                                  31837506
<DIVIDEND-INCOME>                                13317
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<APPREC-INCREASE-CURRENT>                      2626747
<NET-CHANGE-FROM-OPS>                          2011940
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<DISTRIBUTIONS-OF-INCOME>                      (22853)
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</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<SERIES>
   <NUMBER> 010
   <NAME> FOWARD SMALL CAPITALIZATION STOCK FUND
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-END>                               DEC-31-1998
<INVESTMENTS-AT-COST>                         24711910
<INVESTMENTS-AT-VALUE>                        27338657
<RECEIVABLES>                                  2510340
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                           6797449
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<SHARES-COMMON-PRIOR>                                0
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<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                      (622391)
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<NET-ASSETS>                                  31837506
<DIVIDEND-INCOME>                                13317
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<NET-INVESTMENT-INCOME>                           7584
<REALIZED-GAINS-CURRENT>                      (622391)
<APPREC-INCREASE-CURRENT>                      2626747
<NET-CHANGE-FROM-OPS>                          2011940
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                      (22853)
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<NUMBER-OF-SHARES-SOLD>                        (64532)
<NUMBER-OF-SHARES-REDEEMED>                          0
<SHARES-REINVESTED>                           31837506
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<ACCUMULATED-NII-PRIOR>                              0
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<GROSS-EXPENSE>                                 113027
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<PER-SHARE-NAV-BEGIN>                            10.00
<PER-SHARE-NII>                                      0
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<PER-SHARE-DIVIDEND>                             (.01)
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<PER-SHARE-NAV-END>                              11.40
<EXPENSE-RATIO>                                   1.45
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<SERIES>
   <NUMBER> 020
   <NAME> FORWARD INTERNATIONAL EQUITY FUND
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-END>                               DEC-31-1998
<INVESTMENTS-AT-COST>                         27987444
<INVESTMENTS-AT-VALUE>                        23538689
<RECEIVABLES>                                   214966
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                            187256
<TOTAL-ASSETS>                                23940911
<PAYABLE-FOR-SECURITIES>                        645308
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                       125985
<TOTAL-LIABILITIES>                             771293
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                      28236094
<SHARES-COMMON-STOCK>                          2052445
<SHARES-COMMON-PRIOR>                                0
<ACCUMULATED-NII-CURRENT>                         2176
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                      (619069)
<ACCUM-APPREC-OR-DEPREC>                     (4449583)
<NET-ASSETS>                                  23169618
<DIVIDEND-INCOME>                               127711
<INTEREST-INCOME>                                10383
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                   89537
<NET-INVESTMENT-INCOME>                          48557
<REALIZED-GAINS-CURRENT>                      (557012)
<APPREC-INCREASE-CURRENT>                    (4449583)
<NET-CHANGE-FROM-OPS>                        (4958038)
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                      (67525)
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                        2052453
<NUMBER-OF-SHARES-REDEEMED>                        (8)
<SHARES-REINVESTED>                                  0
<NET-CHANGE-IN-ASSETS>                        23169618
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                            53157
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                 137926
<AVERAGE-NET-ASSETS>                          22199340
<PER-SHARE-NAV-BEGIN>                            10.00
<PER-SHARE-NII>                                    .02
<PER-SHARE-GAIN-APPREC>                           1.30
<PER-SHARE-DIVIDEND>                             (.03)
<PER-SHARE-DISTRIBUTIONS>                            0
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                              11.29
<EXPENSE-RATIO>                                   1.60
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<SERIES>
   <NUMBER> 030
   <NAME> FORWARD EQUITY FUND
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-END>                               DEC-31-1998
<INVESTMENTS-AT-COST>                         33479447
<INVESTMENTS-AT-VALUE>                        36184427
<RECEIVABLES>                                   139037
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                            507237
<TOTAL-ASSETS>                                36830701
<PAYABLE-FOR-SECURITIES>                        312419
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                       111516
<TOTAL-LIABILITIES>                             423935
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                      34688095
<SHARES-COMMON-STOCK>                          3012835
<SHARES-COMMON-PRIOR>                                0
<ACCUMULATED-NII-CURRENT>                         2278
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                      (988587)
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                                  36406766
<DIVIDEND-INCOME>                               141301
<INTEREST-INCOME>                                 1646
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                  121801
<NET-INVESTMENT-INCOME>                          21146
<REALIZED-GAINS-CURRENT>                      (988587)
<APPREC-INCREASE-CURRENT>                      7526957
<NET-CHANGE-FROM-OPS>                          6559516
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                      (39468)
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                        3688300
<NUMBER-OF-SHARES-REDEEMED>                   (675465)
<SHARES-REINVESTED>                                  0
<NET-CHANGE-IN-ASSETS>                        36406766
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
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<GROSS-EXPENSE>                                 139221
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<PER-SHARE-DIVIDEND>                             (.01)
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<PER-SHARE-NAV-END>                              12.08
<EXPENSE-RATIO>                                   1.40
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>


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