FORWARD FUNDS, INC.
The Global Asset Allocation Fund
The U.S. Equity Fund
The Global Bond Fund
The International Equity Fund
The Real Estate Investment Fund
The Small Capitalization Equity Fund
Supplement to the Prospectus
dated May 3, 1999 (the "Prospectus")
The Prospectus provides that shareholders of the Small Capitalization Equity
Fund (the "Fund") have adopted a Distribution Plan for the Investor class of
shares pursuant to which up to 0.25% of the Fund's average daily net assets of
the Investor class may be used to pay shareholder servicing and distribution
fees. To date, the Fund's shareholders have not yet adopted such Plan. Until a
Distribution Plan is adopted by the Fund's shareholders, the Fund's Shareholder
Servicing Plan, pursuant to which up to 0.35% of the Fund's average daily net
assets can be used to pay shareholder servicing fees, will remain in effect. If
and when the Fund's shareholders adopt the Distribution Plan, the amount payable
by Investor class shareholders under the Shareholder Servicing Plan will be
reduced to 0.10% of the Fund's average daily net assets.
The Prospectus also provides that shareholders of the Fund have approved a
proposal which would permit Webster Investment Management Company, LLC, the
Fund's investment adviser, to hire and terminate sub-advisers to the Fund
without shareholder approval. As of the date hereof, shareholders of the Fund
have not yet approved such proposal. Unless and until such proposal has been
approved by Fund shareholders, the Fund would need to continue to seek
shareholder approval prior to entering into an investment advisory contract with
any new sub-adviser to the Fund.
