FORWARD FUNDS, INC.
The International Equity Fund
The Real Estate Investment Fund
The Small Capitalization Equity Fund
The U.S. Equity Fund
(the "Funds")
Supplement dated February 4, 2000
to the Prospectus dated May 3, 1999 (the "Prospectus")
This supplement supersedes and replaces any existing supplements to the Funds'
Prospectus. This supplement provides new and additional information beyond that
contained in the Prospectus and should be retained and read in conjunction with
the Funds' Prospectus.
Effective December 1, 1999, First Data Investor Services Group, Inc., the Funds'
Administrator and Transfer Agent, became a majority-owned subsidiary of PNC Bank
Corp. As a result of this transaction First Data Investor Services Group, Inc.
is now known as PFPC Inc. On the same date, Provident Distributors, Inc.
replaced First Data Distributors, Inc. as the Funds' distributor.
Effective on or about February 8, 2000, the Global Bond Fund is being liquidated
and shareholders will receive a liquidating distribution.
Effective on or about February 10, 2000, the Global Asset Allocation Fund is
being liquidated and shareholders will receive a liquidating distribution.
The name of the Real Estate Investment Fund has been changed to "Uniplan Real
Estate Investment Fund."
The name of the Small Capitalization Equity Fund has been changed to "Hoover
Small Cap Equity Fund."
The following information supplements information found in the footnotes to each
Fund's "Shareholder Fees and Expenses" table and under the "Purchasing Shares"
section beginning on page 47:
Shares of the Funds may be offered without a 0.25% transaction fee to:
(1) tax-exempt organizations enumerated in Section 501(c)(3) of the Internal
Revenue Code of 1986 (the "Code") and private, charitable foundations that in
each case make lump-sum purchases of $100,000 or more;
(2) qualified employee benefit plans established pursuant to Section 457 of the
Code that have established omnibus accounts with the Funds;
(3) qualified employee benefit plans having more than one hundred eligible
employees and a minimum of $1 million in plan assets invested in the Funds (plan
sponsors are encouraged to notify the Funds' distributor when they first satisfy
these requirements);
(4) any unit investment trusts registered under the Investment Company Act of
1940 which have shares of the Funds as a principal investment;
(5) employee participants of organizations adopting a 401(k) Plan;
(6) financial institutions purchasing shares of the Funds for clients
participating in a fee based asset allocation program or wrap fee program which
has been approved by the distributor; and
(7) registered investment advisers or financial planners who place trades for
their own accounts or the accounts of their clients and who charge a management,
consulting or other fee for their services; and clients of such investment
advisers or financial planners who place trades for their own accounts if the
accounts are linked to the master account of such investment adviser or
financial planner on the books and records of a broker or agent.
The following information supplements information found in the footnotes of each
Fund's "Shareholder Fees and Expenses" table: Webster Investment Management
Company, LLC (the "Adviser") has agreed to waive a portion of its fees until
January 2001 in amounts necessary to limit the following Funds' operating
expenses to the following annual rates (as a percentage of average daily net
assets and exclusive of 12b-1 and shareholder servicing fees):
Hoover Small Cap Fund 1.50%
International Equity Fund 1.65%
U.S. Equity Fund 1.45%
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
FF-P-0200-01
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FORWARD FUNDS, INC.
The International Equity Fund
The Real Estate Investment Fund
The Small Capitalization Equity Fund
The U.S. Equity Fund
Supplement dated February 4, 2000
to the Statement of Additional Information
dated May 3, 1999
This supplement supersedes and replaces any existing supplements to the
Statement of Additional Information. This supplement provides new and additional
information beyond that contained in the Statement of Additional Information and
should be retained and read in conjunction with the Statement of Additional
Information.
The name of the Real Estate Investment Fund has been changed to "Uniplan Real
Estate Investment Fund."
The name of the Small Capitalization Equity Fund has been changed to "Hoover
Small Cap Equity Fund."
The following information replaces and supplements similar information found
under the heading "Distributor" in the "Management of the Funds" section
beginning on page 2:
As of December 1, 1999, shares of Forward Funds, Inc. (the "Company") are
distributed by Provident Distributors, Inc. (the "Distributor"). Prior to such
date First Data Distributors, Inc. acted as the distributor of the Company's
shares.
The Distributor, Four Falls Corporate Center, 6th Floor, West Conshohocken,
Pennsylvania 19428-2961, and the Company are parties to a distribution agreement
(the "Distribution Agreement").
The following information replaces and supplements similar information found
under the heading "Administrator and Transfer Agent " in the "Management of the
Funds" section beginning on page 2:
Effective December 1, 1999, First Data Investor Services Group, Inc. ("Investor
Services Group"), administrator and transfer agent to the Company, became a
majority-owned subsidiary of PNC Bank Corp. As a result of the transaction,
Investor Services Group is now known as PFPC Inc. ("PFPC").
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
FF-SAI-0200-01
<PAGE>
