<PAGE>
FORUM FUNDS, INC.
- --------------------------------------------------------------------------------
INVESTORS BOND FUND SHAREHOLDER INQUIRIES [Logo]
TAXSAVER BOND FUND Forum Financial Corp.
MAINE MUNICIPAL BOND FUND P.O. Box 446
NEW HAMPSHIRE BOND FUND Portland, Maine 04112
DAILY ASSETS TREASURY FUND 207-879-0001
PAYSON BALANCED FUND
PAYSON VALUE FUND
September 30, 1995 SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
November 15, 1995
Dear Investor:
We are pleased to have the opportunity to present Forum Funds' Semi-Annual
Report for the six months ended September 30, 1995, and to comment on the
economic and financial highlights of the period.
As of September month end, the funds net assets totalled nearly $139
million, up some $8 million from six months ago. Total returns to our equity
funds from April 1 - September 30 were 12% or better, and over 5% to our state
municipal bond funds, equivalent to annualized pretax returns of about 25% and
10%, respectively. These returns, attributable to sound selection criteria as
well as the buoyancy of stock and bond markets, are especially rewarding in
light of the relatively moderate levels of risk associated with Forum's
value-oriented investment strategy.
In contrast to the difficult investment climate of 1994, this year has
witnessed a more sustainable rate of economic growth, low but slowly rising
price inflation, falling interest rates and a host of positive corporate
earnings surprises. The financial markets have been further encouraged by the
gathering evidence that Washington will actually do something about lowering the
capital gains tax and improving fiscal incentives to save and invest. The
American markets have done well compared with the rest of the world, as
uncertainty about monetary union in Europe, the ongoing crisis in the Balkans,
scandal in Southeast Asia, economic difficulties in Japan, and the Mexican
financial crisis frustrated expectations.
Looking ahead, we find it difficult to imagine that the boom in equities
can continue at this year's pace. The economic outlook for 1996 implies some
moderation of investment returns and a reasonably stable environment for
well-managed companies. Market volatility and down-side surprises cannot be
avoided, but we believe the investment strategies and selectivity of Forum Funds
are well adapted to absorb such shocks and to deliver solid performance in this
environment.
We thank you for choosing Forum Funds and look forward to providing you
with consistent, superior investment service in the years ahead. Should you have
any questions we invite you to contact your local investment institution, or to
call us directly at 207-879-0001.
Very truly yours,
/s/ JOHN Y. KEFFER
John Y. Keffer
President
<PAGE>
- --------------------------------------------------------------------------------
ECONOMIC OVERVIEW
- --------------------------------------------------------------------------------
ECONOMIC AND MARKET DEVELOPMENTS IN THE PAST SIX MONTHS
In the past two quarters real (inflation-adjusted) economic growth averaged
2.8%, somewhat below our projected trend rate for the year. Economic activity
suffered an unexpectedly sharp drop in the second quarter, followed by an
unexpectedly buoyant recovery in the third. In the April-June quarter average
annual growth of GDP was halved to 1.3%, owing in large measure to an unforeseen
liquidation of business inventories. Moreover, the prospects for a poor year
were reinforced by four successive monthly declines in the index of leading
indicators, which at least in theory meant outright recession in the months
ahead. During this period bond prices trended persistently higher, as the
interest rate on the 30 year bond fell from its year-end 1994 peak of about 8%
to 6 1/2% in mid-1995. On July 6, the Fed reversed its restrictive policy stance
and nudged the federal funds rate lower -- to 5.75% -- in response to the
downward pressure of market forces on interest rates and the threat of
overshooting the vaunted 'soft landing'of the economy. The U.S. dollar,
meanwhile, nosedived, hitting an all time low of 81 yen to the dollar in May,
and remained at historically low levels through July.
In the July-September quarter, the economy appears to have bounced back
sharply, with preliminary estimates of growth of more than 4%, bolstered by
strong final sales, improved exports, and the reduced levels of inventories.
Since July the greenback has also recovered to above 100 yen to the dollar,
while general price inflation is running at a moderate, and sustainable, rate of
about 2% per annum. More fundamentally, looking behind the inevitable ups and
downs in current economic data, the long-run health of the U.S. economy appears
robust; unit labor costs are relatively stable (only Sweden in the
industrialized world has done better at containing labor costs), and the growth
of U.S. total productivity is the highest among all industrial countries.
When the real economy cooled, the financial markets got red hot. The boom
in equities, which exceeded our expectations, has been driven by lower costs of
borrowing, the impact of corporate restructuring on profit margins and earnings,
the extraordinary revenue growth of high tech companies, and the brightening
prospects for tax relief to savers and investors. Through August of this year
mutual fund investors poured more than $76 billion into domestic equity funds,
although contrary to conventional wisdom they have not done so blindly; twice
that amount has flowed into money funds. With respect to the credit markets, the
trend to lower rates has been accompanied by a narrowing of time differentials,
as yields on the longer maturities have fallen faster than on shorter
maturities. At this writing an investor would gain a yield of only 3/4% by
switching from a one year Treasury to a 10 year Treasury bond.
FORUM FUNDS PERFORMANCE
In the foregoing economic and market environment the highest returns were
achieved by our two equities funds: Payson Value and Balanced Funds, which
produced six month total returns of 12.70% and 11.99%, respectively. This solid
performance was achieved despite the lessened risk associated with the
relatively limited exposure of these funds to the high tech sector. All three of
our tax exempt funds turned in better returns than their benchmarks.
2 FORUM FUNDS, INC.
<PAGE>
- --------------------------------------------------------------------------------
ECONOMIC OVERVIEW (CONTINUED)
- --------------------------------------------------------------------------------
SUMMARY PERFORMANCE INDICATORS
SIX MONTHS, MARCH 31-SEPTEMBER 30, 1995
<TABLE>
<CAPTION>
FORUM VS.
FUND FORUM BENCHMARK BENCHMARK
- ------------------------------------------------------------------------------- ----- --------- ---------
<S> <C> <C> <C>
Investors Bond Fund............................................................ 5.12% 7.63%(1) -2.51%
TaxSaver Bond Fund............................................................. 4.41% 4.29%(2) 0.12%
Maine Municipal Bond Fund...................................................... 5.05% 4.29%(2) 0.76%
New Hampshire Bond Fund........................................................ 5.24% 4.29%(2) 0.95%
Daily Assets Treasury Fund..................................................... 2.66% 2.63%(3) 0.03%
Payson Balanced Fund........................................................... 11.99% 12.95%(4) -0.96%
Payson Value Fund.............................................................. 12.70% 16.00%(5) -3.30%
</TABLE>
(1) Morningstar Corporate General Index
(2) Morningstar Municipal National Index
(3) Lipper U.S. Treasury Money Market Fund Index
(4) Morningstar Balanced Fund Index
(5) Morningstar Growth & Income Index
RESULTS REPRESENT PAST PERFORMANCE AND DO NOT GUARANTEE FUTURE RESULTS.
INVESTMENT RETURNS AND PRINCIPAL MAY FLUCTUATE AND SHARES WHEN REDEEMED MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST. INFORMATION IN THE ABOVE TABLE DOES NOT
INCLUDE THE EFFECT OF SALES CHARGES. DURING THE PERIOD, CERTAIN FEES AND
EXPENSES WERE WAIVED AND REIMBURSED BY THE MANAGER. WITHOUT THESE WAIVERS, TOTAL
RETURN AND RANKINGS WOULD HAVE BEEN LOWER.
ECONOMIC OUTLOOK
THE ECONOMIST poll of forecasters has become somewhat gloomier about world
economic growth in 1995, but continues to anticipate growth in the U.S.A. of
2.8-3.1%. In previous reports we have drawn attention to the fact that for the
past two years forecasters missed the boat entirely on their fourth quarter
projections. This year, however, opinion is divided into two camps. The
optimists argue that lower interest rates, strengthening exports, and declining
levels of inventories will lead to a strong fourth quarter. The growth
pessimists warn that stagnant employment and wage growth, high consumer
indebtedness, declining capital spending, and an end to the stock market rally
will slow the economy. We would tend to side with the optimists, since American
consumers remain in the driver's seat; there are new products aplenty to whet
their appetite; and barring a major economic catastrophe, they should behave
this holiday season much as they have in the past.
With respect to the longer term, the outlook for the economy is less
sanguine. Once the current euphoria over conservative tax and spending policies
has died down, there seem to be few upside surprises left to sustain an
accelerating stock market. The economic fundamentals are solid; however,
moderate economic growth, low but rising inflation, and a declining government
deficit appear more conducive to stability than to soaring corporate earnings
and stock and bond prices. True, 1996 is a presidential election year, and
politics here and elsewhere can provide troublesome distractions for the
markets. Yet the underlying trends suggest that the judicious blending of
value-oriented equities, money market and fixed income securities remains a
sound investment strategy for 1996.
3 FORUM FUNDS, INC.
<PAGE>
- --------------------------------------------------------------------------------
INVESTORS BOND FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- ----------- -------------------------------- -----------
<S> <C> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS (12.2%):
$ 1,631,611 Federal Home Loan Mortgage
Corporation, Series 90 135-A,
8.75%, due 5/15/00............ $ 1,725,298
383,083 Merrill Lynch Mortgage
Investors, Series 89 E, 9.40%,
due 9/15/09................... 416,445
1,157,471 Resolution Trust Corporation,
Series 92 C8 D, 8.835%, due
12/25/23...................... 1,146,764
-----------
Total Collateralized Mortgage Obligations
(cost $3,073,174) 3,288,507
-----------
CORPORATE BONDS & NOTES (63.1%):
750,000 Beverly Enterprises, Inc.,
14.25%, due 12/15/97 (a)...... 763,860
1,175,000 Beverly Enterprises, Inc.,
8.75%, due 12/31/03........... 1,128,000
1,000,000 Boise Cascade Corporation,
9.875%, due 2/15/01........... 1,094,270
500,000 Chase Manhattan Bank, N.A.,
9.75%, due 11/1/01............ 574,500
4,500,000 Citfed Bancorp, Inc., 8.25%, due
9/1/03........................ 4,382,847
750,000 Continental Bank, N.A. (a
BankAmerica subsidiary),
11.25%, due 7/1/01............ 835,312
1,000,000 Dean Witter Discover & Company,
5.76% variable rate, due
3/2/99........................ 999,048
1,000,000 Ford Motor Credit Company, 5.58%
variable rate, due 3/23/99.... 988,940
1,350,000 I.C.H. Corporation, 11.25%, due
12/1/03....................... 897,750
450,000 Lehman Brothers Holdings, 5.71%
variable rate, due 1/12/99.... 445,670
250,000 Leucadia National Corporation,
10.375%, due 6/15/02.......... 271,250
750,000 Merchants National Corporation
(a National City Corporation
subsidiary), 9.875%, due
10/1/99....................... 831,938
1,000,000 Nacolah Holding Corporation,
9.50%, due 12/1/03............ 965,000
500,000 Paine Webber, Inc., 9.25%, due
12/15/01...................... 551,250
1,000,000 Salomon Inc., 7.75%, due
9/22/05....................... 1,000,805
1,200,000 Valley National Corporation (a
Banc One subsidiary), 9.875%,
due 3/1/16.................... 1,271,275
-----------
Total Corporate Bonds & Notes
(cost $17,279,616) 17,001,715
-----------
GOVERNMENT AGENCY NOTES (3.7%):
$ 1,000,000 Student Loan Marketing
Association, 5.79% variable
rate, due 11/1/99............. $ 1,007,085
-----------
Total Government Agency Notes
(cost $998,750) 1,007,085
-----------
MORTGAGE BACKED SECURITIES (8.8%):
346,321 Federal Home Loan Mortgage
Corporation, Pool 502128,
9.00%, due 10/1/04............ 357,339
110,359 Government National Mortgage
Association, Pool 345993,
7.00%, due 11/15/23........... 109,163
166,594 Government National Mortgage
Association, Pool 346797,
7.00%, due 10/15/23........... 164,789
490,009 Government National Mortgage
Association, Pool 371734,
7.00%, due 4/15/24............ 484,275
855,716 Government National Mortgage
Association, Pool 395851,
7.00%, due 8/15/25............ 845,020
363,322 Government National Mortgage
Association, Pool 409198,
7.00%, due 8/15/25............ 358,781
53,924 Government National Mortgage
Association, Pool 417479,
7.00%, due 9/15/25............ 53,250
-----------
Total Mortgage Backed Securities
(cost $2,371,527) 2,372,617
-----------
OTHER HOLDINGS (12.2%):
89,453 1784 U.S. Treasury Money Market
Fund.......................... 89,453
697,826 Dreyfus Government Cash
Management Fund............... 697,826
1,500,000 Liberty Mutual Capital
Corporation, Discount
Commercial Paper, 6.10% yield,
due 10/13/95.................. 1,497,250
1,000,000 Philip Morris Companies, Inc.,
Discount Commercial Paper,
5.76% yield, due 10/2/95...... 1,000,000
-----------
Total Other Holdings
(cost $3,284,529) 3,284,529
-----------
Total Investments (100.0%)
(cost $27,007,596) $26,954,453
-----------
-----------
</TABLE>
(a) Securities that may be resold to "qualified institutional
buyers" pursuant to Rule 144A under, or securities offered
pursuant to Section 4(2) of, the Securities Act of 1933, as
amended. These securities have been determined to be
liquid under guidelines established by the Board of Directors.
See notes to financial statements. 4 FORUM FUNDS, INC.
<PAGE>
- --------------------------------------------------------------------------------
TAXSAVER BOND FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- ----------- -------------------------------- -----------
<S> <C> <C>
MUNICIPAL BONDS (97.5%):
COLORADO (7.4%):
$ 1,000,000 Douglas County, CO, School
District #RE 1, General
Obligation Bonds, Series A,
8.00%, due 12/15/09........... $ 1,275,210
-----------
FLORIDA (4.8%):
700,000 Port Everglades, FL, Authority
Refunding Revenue Bonds, Port,
Airport & Marina Improvements,
Escrowed to Maturity in U.S.
Governments, 7.125%, due
11/1/16....................... 828,184
-----------
ILLINOIS (5.3%):
400,000 Aurora, IL, Multi-Family Housing
Refunding Revenue Bonds, Fox
Valley Village Unit 18D
Project, Banque Paribas LOC,
7.75%, due 9/1/98............. 429,088
465,000 Illinois Development Finance
Authority Revenue Bonds,
Community Rehabilitation
Providers Facilities
Acquisition Program, Series
92, 8.25%, 8/1/12............. 482,972
-----------
912,060
-----------
LOUISIANA (7.7%):
1,000,000 Louisiana Public Facilities
Authority Revenue Bonds,
Health, Hospital & Nursing
Home Improvements, 11.00%, due
2/1/14........................ 1,323,530
-----------
MARYLAND (.6%):
100,000 Maryland State Community
Development Administration,
Multi-Family Housing Insured
Mortgage Loan Revenue Bonds,
Series 85 C, 9.00%, due
5/15/05....................... 101,557
-----------
MISSISSIPPI (4.6%):
750,000 Claiborne County, MS, Pollution
Control Revenue Systems Energy
Resources, Inc. Bonds, Middle
South Energy, Inc. Project E,
9.50%, due 4/1/16............. 794,303
-----------
NEW YORK (2.0%):
350,000 New York State Thruway
Authority, Service Contract
Revenue Bonds, Local Highway
and Bridge Project, 5.75%, due
4/1/06........................ 351,642
-----------
OHIO (18.4%):
500,000 Columbus, OH, General Obligation
Bonds, Series 91-1, 6.80%, due
9/15/04, Prerefunded (U.S.
Government) 9/15/01 at 101.... 557,595
OHIO, CONTINUED:
$ 500,000 Ohio State Air Quality
Development Authority,
Pollution Control Refunding
Revenue Bonds, Cleveland
Electric Co. Project, FGIC
insured, 8.00%, due 12/1/13... $ 587,115
500,000 Ohio State Public Facilities
Refunding Revenue Bonds,
Higher Educational Capital
Facilities, Series II-A,
5.20%, due 5/1/04............. 514,270
940,000 Shelby County, OH, Hospital
Facilities Revenue Bonds,
Wilson Memorial Hospital,
Escrowed to Maturity in U.S.
Governments, 6.40%, due
12/1/03....................... 998,806
500,000 Washington County, OH, Hospital
Refunding Revenue Bonds,
Shelby General Hospital,
Series 93, 6.875%, due
7/1/03........................ 524,855
-----------
3,182,641
-----------
PENNSYLVANIA (26.4%):
1,000,000 Allegheny County Hospital
Development Authority, Health
Center Revenue Bonds, Series
90, West Penn Hospital
Foundation, 8.00%, due
1/1/05........................ 1,071,870
875,000 Allegheny County Hospital
Development Authority, Health
Facilities Revenue Bonds,
Allegheny Valley School
Project, 7.25%, due 2/1/03.... 882,779
170,000 Butler County, PA, Hospital
Authority Refunding Revenue
Bonds, Butler Memorial
Hospital, 7.875%, due 7/1/02,
Prerefunded (U.S. Government)
7/1/96 at 102................. 178,835
800,000 Erie-Western Pennsylvania Port
Authority, Pennsylvania
Refunding Revenue Bonds,
8.25%, due 6/15/00............ 896,792
1,000,000 Lycoming County, PA, Authority
Hospital Lease Revenue Bonds,
Divine Providence Sisters
Issue, Series A, 7.75%, due
7/1/16........................ 1,085,130
200,000 Pennsylvania Higher Education
Facilities Authority Refunding
Revenue Bonds, Medical College
of Pennsylvania, Series 89 A,
8.00%, due 3/1/96............. 203,046
110,000 Pennsylvania Higher Education
Facilities Authority Revenue
Bonds, Medical College of
Pennsylvania, Series 91 B,
7.25%, due 3/1/05............. 120,010
</TABLE>
See notes to financial statements. 5 FORUM FUNDS, INC.
<PAGE>
- --------------------------------------------------------------------------------
TAXSAVER BOND FUND
SCHEDULE OF INVESTMENTS (continued)
SEPTEMBER 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- ----------- -------------------------------- -----------
<S> <C> <C>
PENNSYLVANIA, CONTINUED:
$ 125,000 Washington County, PA,
Industrial Development
Authority Refunding Revenue
Bonds, Presbyterian Medical
Center, FHA insured, 6.50%,
due 1/15/02................... $ 133,546
-----------
4,572,008
-----------
PUERTO RICO (6.6%):
100,000 Commonwealth of Puerto Rico
Infrastructure Financing
Authority, Special Tax
Refunding Revenue Bonds,
Series 88 A, 7.75%, due
7/1/08........................ 111,086
100,000 Puerto Rico Industrial, Medical
& Environmental Revenue Bonds,
Pollution Control Facilities
Financing Authority, Abbott
Chemicals, Inc. Project,
6.50%, due 7/1/09............. 100,226
165,000 Puerto Rico Public Buildings
Authority, Guaranteed Public
Education and Health
Facilities Refunding Revenue
Bonds, Series 93 M, 5.10%, due
7/1/01........................ 168,197
125,000 Puerto Rico Public Buildings
Authority, Guaranteed Public
Education and Health
Facilities Refunding Revenue
Bonds, Series 93 M, FSA
insured, 5.70%, due 7/1/09.... 130,200
565,000 University of Puerto Rico
Revenue Bonds, Series N, MBIA
insured, 6.25%, due 6/1/04.... 627,591
-----------
1,137,300
-----------
TEXAS (4.8%):
750,000 Red River Authority, TX,
Pollution Control Revenue
Bonds, Remarketed 8/1/90,
Hoechst Celanese Corporation
LOC, 7.50%, due 8/1/12........ 830,190
-----------
VIRGIN ISLANDS (5.9%):
$ 820,000 Virgin Islands Public Finance
Authority Revenue Bonds,
Government Development
Program, Series A, 7.00%, due
10/1/04....................... $ 883,796
110,000 Virgin Islands Public Finance
Authority Refunding Revenue
Bonds, Escrowed to Maturity in
U.S. Governments, Series 89 A,
7.30%, due 10/1/18............ 134,510
-----------
1,018,306
-----------
VIRGINIA (3.0%):
500,000 Fairfax County, VA, Economic
Development Authority Revenue
Bonds (C-SPAN Project), Series
91 B, 7.50%, due 6/1/01....... 518,785
-----------
Total Municipal Bonds
(cost $16,198,465) 16,845,716
-----------
SHORT-TERM HOLDINGS (2.5%):
301,236 1784 Tax Free Money Market
Fund.......................... 301,236
131,127 Fidelity Tax Exempt Money Market
Fund.......................... 131,127
-----------
Total Short-Term Holdings
(cost $432,363) 432,363
-----------
Total Investments (100.0%)
(cost $16,630,828) $17,278,079
-----------
-----------
</TABLE>
See notes to financial statements. 6 FORUM FUNDS, INC.
<PAGE>
- --------------------------------------------------------------------------------
MAINE MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- ----------- ---------------------------------- -----------
<S> <C> <C>
MUNICIPAL BONDS (99.2%):
GENERAL OBLIGATION -- BOND BANK (7.1%):
$ 100,000 Maine Municipal Bond Bank
Refunding Bonds, Series 92 C,
5.80%, due 11/1/99............ $ 105,278
80,000 Maine Municipal Bond Bank Sewer
& Water Bonds, SRF Program,
Series 91 A, 7.20%, due
11/1/13, Prerefunded (U.S.
Government) 11/1/01 at 102.... 92,099
50,000 Maine Municipal Bond Bank,
Series 88 A, 6.70%, due
11/1/98....................... 53,464
50,000 Maine Municipal Bond Bank,
Series 88 A, 7.50%, due
11/1/05, Prerefunded (U.S.
Government) 11/1/98 at 102.... 55,502
40,000 Maine Municipal Bond Bank,
Series 88 B, 7.65%, due
11/1/06, Prerefunded (U.S.
Government) 11/1/98 at 102.25 44,661
50,000 Maine Municipal Bond Bank,
Series 88 B, 7.85%, due
11/1/18, Prerefunded (U.S.
Government) 11/1/98 at 103.... 56,505
60,000 Maine Municipal Bond Bank,
Series 88 C, 7.10%, due
11/1/02, Prerefunded (U.S.
Government) 11/1/98 at 101.25 65,520
50,000 Maine Municipal Bond Bank,
Series 89 B, 7.40%, due
11/1/14, Prerefunded (U.S.
Government) 11/1/99 at 102.... 56,392
210,000 Maine Municipal Bond Bank,
Series 90 B, 7.20%, due
11/1/07, Prerefunded (U.S.
Government) 11/1/00 at 102.... 238,560
50,000 Maine Municipal Bond Bank,
Series 90 B, 7.20%, due
11/1/11, Prerefunded (U.S.
Government) 11/1/00 at 102.... 56,800
150,000 Maine Municipal Bond Bank,
Series 90 B, 7.20%, due
11/1/15, Prerefunded (U.S.
Government) 11/1/00 at 102.... 170,400
25,000 Maine Municipal Bond Bank,
Series 90 D, 7.375%, due
11/1/10, Prerefunded (U.S.
Government) 11/1/00 at 102.... 28,536
100,000 Maine Municipal Bond Bank,
Series 92 B, 6.65%, due
11/1/07....................... 110,581
150,000 Maine Municipal Bond Bank,
Series 92 E, 5.80%, due
11/1/04....................... 160,082
200,000 Maine Municipal Bond Bank,
Series 92 E, 5.875%, due
11/1/05....................... 213,096
205,000 Maine Municipal Bond Bank,
Series 93 C, 5.55%, due
11/1/08....................... 207,893
-----------
1,715,369
-----------
GENERAL OBLIGATION -- POLITICAL SUBDIVISIONS (14.8%):
$ 175,000 Bar Harbor, ME, Unlimited Tax
General Obligation Bonds,
6.20%, due 6/1/05............. $ 189,191
75,000 Bar Harbor, ME, Unlimited Tax
General Obligation Bonds,
6.45%, due 6/1/09............. 80,951
30,000 Bath, ME, Unlimited Tax General
Obligation Bonds, 7.45%, due
12/1/07....................... 35,998
20,000 Bath, ME, Unlimited Tax General
Obligation Bonds, 7.50%, due
12/1/08....................... 24,068
50,000 Brewer, ME, Unlimited Tax
General Obligation Bonds,
Series A, 6.10%, due 1/1/03... 53,685
50,000 Brewer, ME, Unlimited Tax
General Obligation Bonds,
Series A, 6.10%, due 1/1/04... 53,783
50,000 Brewer, ME, Unlimited Tax
General Obligation Bonds,
Series A, 6.10%, due 1/1/05... 53,762
50,000 Brewer, ME, Unlimited Tax
General Obligation Bonds,
Series A, 6.20%, due 1/1/06... 53,706
100,000 City of Bangor, ME, Unlimited
Tax General Obligation Bonds,
5.20%, due 11/1/00............ 103,654
250,000 Cumberland County, ME, Unlimited
Tax General Obligation Bonds,
5.25%, due 2/1/07............. 252,535
100,000 Cumberland County, ME, Unlimited
Tax General Obligation Bonds,
6.50%, due 2/1/03, Prerefunded
(U.S. Government) 2/1/01 at
102........................... 110,867
25,000 Ellsworth, ME, Unlimited Tax
General Obligation Bonds,
7.20%, due 7/1/08............. 28,782
25,000 Old Orchard Beach, ME, Unlimited
Tax General Obligation Bonds,
MBIA insured, 6.50%, due
10/1/96....................... 25,612
40,000 Old Orchard Beach, ME, Unlimited
Tax General Obligation Bonds,
MBIA insured, 6.40%, due
9/1/04........................ 44,669
215,000 Old Orchard Beach, ME, Unlimited
Tax General Obligation Bonds,
MIBA insured, 6.60%, due
9/1/06........................ 240,435
50,000 Old Orchard Beach, ME, Unlimited
Tax General Obligation Bonds,
MBIA insured, 6.65%, due
9/1/07........................ 55,653
50,000 Portland, ME, Unlimited Tax
General Obligation Bonds,
8.00%, due 10/1/95............ 50,000
500,000 Portland, ME, Unlimited Tax
General Obligation Bonds,
6.20%, due 4/1/05............. 552,925
</TABLE>
See notes to financial statements. 7 FORUM FUNDS, INC.
<PAGE>
- --------------------------------------------------------------------------------
MAINE MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS (continued)
SEPTEMBER 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- ----------- -------------------------------- -----------
<S> <C> <C>
GENERAL OBLIGATION -- POLITICAL SUBDIVISIONS, CONTINUED:
$ 50,000 Portland, ME, Unlimited Tax
General Obligation Bonds,
12.60%, due 11/1/05........... $ 80,489
790,000 Portland, ME, Unlimited Tax
General Obligation Bonds,
5.30%, due 6/1/13............. 760,983
150,000 South Portland, ME, Unlimited
Tax General Obligation Bonds,
5.80%, due 9/1/08............. 159,476
40,000 South Portland, ME, Unlimited
Tax General Obligation Bonds,
5.80%, due 9/1/11............. 41,605
250,000 Town of Freeport, ME, Unlimited
Tax General Obligation Bonds,
7.25%, due 9/1/04............. 290,468
20,000 Town of Freeport, ME, Unlimited
Tax General Obligation Bonds,
7.25%, due 9/1/10............. 23,130
25,000 Westbrook, ME, Unlimited Tax
General Obligation Bonds,
6.75%, due 11/15/04........... 28,232
75,000 Windham, ME, Unlimited Tax
General Obligation Bonds,
0.05%, due 6/15/08............ 37,368
20,000 Winslow, ME, Unlimited Tax
General Obligation Bonds,
AMBAC insured, 6.90%, due
10/1/08....................... 22,325
25,000 Winthrop, ME, Unlimited Tax
General Obligation Bonds,
5.10%, due 8/1/04............. 25,228
25,000 Winthrop, ME, Unlimited Tax
General Obligation Bonds,
5.20%, due 8/1/05............. 25,248
25,000 Winthrop, ME, Unlimited Tax
General Obligation Bonds,
5.30%, due 8/1/06............. 25,203
25,000 Winthrop, ME, Unlimited Tax
General Obligation Bonds,
5.40%, due 8/1/07............. 25,128
-----------
3,555,159
-----------
GENERAL OBLIGATION -- SCHOOL DISTRICTS (0.1%):
35,000 York, ME, School District,
Unlimited Tax General
Obligation Bonds, AMBAC
insured, 6.40%, due 3/1/03.... 38,308
-----------
38,308
-----------
GENERAL OBLIGATION -- STATES, TERRITORIES (14.3%):
275,000 Commonwealth of Puerto Rico,
Unlimited Tax General
Obligation Bonds, Series 92,
AMBAC insured, 5.85%, due
7/1/15........................ 276,843
100,000 Commonwealth of Puerto Rico,
Unlimited Tax General
Obligation Public Improvements
Bonds, Series 92, MBIA
insured, 6.50%, due 7/1/09,
Prerefunded (U.S. Government)
7/1/02 at 101.50.............. 112,516
GENERAL OBLIGATION -- STATES, TERRITORIES, CONTINUED:
$ 300,000 Commonwealth of Puerto Rico,
Unlimited Tax General
Obligation Refunding Revenue
Bonds, 6.80%, due 7/1/21,
Prerefunded (U.S. Government)
7/1/02 at 101.50.............. $ 342,549
1,150,000 Commonwealth of Puerto Rico,
Unlimited Tax General
Obligation Bonds, MBIA
insured, 6.50%, due 7/1/04.... 1,294,429
250,000 Puerto Rico Municipal Finance
Agency, Unlimited Tax General
Obligation Bonds, Series 92 A,
5.80%, due 7/1/04 260,063
250,000 Puerto Rico Municipal Finance
Agency, Unlimited Tax General
Obligation Bonds, Series 92 A,
5.875%, due 7/1/05............ 259,763
60,000 State of Maine, Unlimited Tax
General Obligation Bonds,
10.00%, due 5/15/96........... 62,231
25,000 State of Maine, Unlimited Tax
General Obligation Bonds,
10.00%, due 5/15/97........... 27,277
60,000 State of Maine, Unlimited Tax
General Obligation Bonds,
10.00%, due 5/15/98........... 68,455
100,000 State of Maine, Unlimited Tax
General Obligation Bonds,
6.75%, due 5/15/99............ 108,141
100,000 State of Maine, Unlimited Tax
General Obligation Bonds,
8.50%, due 3/1/00............. 116,177
100,000 State of Maine, Unlimited Tax
General Obligation Bonds,
7.50%, due 12/15/00........... 114,286
50,000 State of Maine, Unlimited Tax
General Obligation Bonds,
8.00%, due 5/1/01............. 58,641
100,000 State of Maine, Unlimited Tax
General Obligation Bonds,
8.00%, due 5/1/02............. 119,319
90,000 State of Maine, Unlimited Tax
General Obligation Bonds,
6.40%, due 7/1/02............. 99,362
100,000 State of Maine, Unlimited Tax
General Obligation Bonds,
6.50%, due 7/1/03............. 111,714
-----------
3,431,766
-----------
AIRPORT REVENUE (2.6%):
100,000 City of Bangor, ME, Limited
Obligation Revenue Bonds,
Bangor International Airport
Project, 5.75%, due 10/1/01... 104,217
150,000 City of Bangor, ME, Limited
Obligation Revenue Bonds,
Bangor International Airport
Project, 6.00%, due 10/1/03... 158,529
100,000 City of Bangor, ME, Limited
Obligation Revenue Bonds,
Bangor International Airport
Project, 6.10%, due 10/1/04... 106,332
</TABLE>
See notes to financial statements. 8 FORUM FUNDS, INC.
<PAGE>
- --------------------------------------------------------------------------------
MAINE MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS (continued)
SEPTEMBER 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- ----------- -------------------------------- -----------
<S> <C> <C>
AIRPORT REVENUE, CONTINUED:
$ 250,000 City of Bangor, ME, Limited
Obligation Revenue Bonds,
Bangor International Airport
Project, 6.35%, due 10/1/07... $ 262,205
-----------
631,283
-----------
EDUCATION FACILITIES REVENUE (12.1%):
40,000 Maine Educational Loan
Authority, Educational Loan
Revenue Bonds, Supplemental
Education Loan Program, Series
92 A-1, 6.80%, due 12/1/07.... 43,387
85,000 Maine Educational Loan
Authority, Educational Loan
Revenue Bonds, Supplemental
Education Loan Program, Series
92 A-1, 7.00%, due 12/1/16.... 92,034
50,000 Maine Educational Marketing
Corporation, Student Loan
Refunding Revenue Bonds,
6.90%, due 11/1/03............ 54,179
100,000 Maine Health & Higher
Educational Facilities
Authority Revenue Bonds, Colby
College Issue, FGIC insured,
6.20%, due 7/1/99............. 106,231
1,058,000 Puerto Rico Public Buildings
Authority, Guaranteed Public
Education and Health
Facilities Refunding Revenue
Bonds, Series 93 M, FSA
insured, 5.70%, due 7/1/09.... 1,102,013
60,000 University of Maine System
Revenue Bonds, 7.20%, due
9/1/09, Prerefunded (U.S.
Government) 9/1/99 at 102..... 67,093
105,000 University of Maine System
Revenue Bonds, 7.25%, due
9/1/19, Prerefunded (U.S.
Government) 9/1/99 at 102..... 117,599
200,000 University of Maine System
Revenue Bonds, Series 93 A,
FSA insured, 5.20%, due
3/1/08........................ 196,582
1,000,000 University of Puerto Rico
Revenue Bonds, Series N, MBIA
insured, 6.25%, due 6/1/04.... 1,110,780
-----------
2,889,898
-----------
HEALTH CARE REVENUE (14.6%):
10,000 Maine Health & Higher
Educational Facilities
Authority Refunding Revenue
Bonds, Kennebec Valley Medical
Center, FGIC insured, 7.00%,
due 7/1/05.................... 11,102
HEALTH CARE REVENUE, CONTINUED:
$ 145,000 Maine Health & Higher
Educational Facilities
Authority Refunding Revenue
Bonds, Maine Medical Center,
7.375%, due 10/1/13,
Prerefunded (U.S. Government)
10/1/96 at 102................ $ 152,696
185,000 Maine Health & Higher
Educational Facilities
Authority Refunding Revenue
Bonds, Maine Medical Center,
Escrowed to Maturity in U.S.
Governments, 6.00%, due
10/1/13....................... 194,185
250,000 Maine Health & Higher
Educational Facilities
Authority Revenue Bonds, Coves
Edge Nursing Home, 10.00%, due
8/1/20, Prerefunded (U.S.
Government) 8/1/00 at 103..... 315,463
100,000 Maine Health & Higher
Educational Facilities
Authority Revenue Bonds, FSA
insured, 6.10%, due 7/1/01.... 107,031
140,000 Maine Health & Higher
Educational Facilities
Authority Revenue Bonds, Cedar
Nursing Home, FHA insured,
7.90%, due 8/1/32, Prerefunded
(U.S. Government) 2/1/00 at
102........................... 159,674
50,000 Maine Health & Higher
Educational Facilities
Authority Revenue Bonds,
Central Maine Medical Center,
FGIC insured, 8.00%, due
7/1/18, Prerefunded (U.S.
Government) 7/1/98 at 102..... 55,796
55,000 Maine Health & Higher
Educational Facilities
Authority Revenue Bonds,
Kennebec Valley Medical
Center, FGIC insured, 7.00%,
due 7/1/15.................... 59,906
150,000 Maine Health & Higher
Educational Facilities
Authority Revenue Bonds,
Portland Alliance for Mentally
Ill, Maine Coast Regional
Health Center and Thomas
College, FSA insured, 6.10%,
due 7/1/03.................... 160,785
475,000 Maine Health & Higher
Educational Facilities
Authority Revenue Bonds, Saint
Mary's General Hospital,
8.50%, due 7/1/09, Prerefunded
(U.S. Government) 7/1/99 at
102........................... 537,538
100,000 Maine Health & Higher
Educational Facilities
Authority Revenue Bonds,
Series 92 B, FSA insured,
5.875%, due 7/1/06............ 104,833
</TABLE>
See notes to financial statements. 9 FORUM FUNDS, INC.
<PAGE>
- --------------------------------------------------------------------------------
MAINE MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS (continued)
SEPTEMBER 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- ----------- -------------------------------- -----------
<S> <C> <C>
HEALTH CARE REVENUE, CONTINUED:
$ 500,000 Maine Health & Higher
Educational Facilities
Authority Revenue Bonds,
Series 93 A, FSA insured,
5.60%, due 7/1/07............. $ 510,120
450,000 Maine Health & Higher
Educational Facilities
Authority Revenue Bonds,
Series 93 B, FSA insured,
5.55%, due 7/1/08............. 452,988
155,000 Maine Health & Higher
Educational Facilities
Authority Revenue Bonds,
Series 93 D, FSA insured,
5.20%, due 7/1/06............. 154,986
500,000 Maine Health & Higher
Educational Facilities
Authority Revenue Bonds,
Series 93 D, FSA insured,
5.30%, due 7/1/07............. 498,225
25,000 Maine Health & Higher
Educational Facilities
Authority Revenue Bonds,
Southern Maine Medical Center,
AMBAC insured, 7.20%, due
5/1/06........................ 27,846
-----------
3,503,174
-----------
HOUSING REVENUE (6.8%):
240,000 Maine Finance Authority Multi-
Family Revenue Bonds, Back Bay
Tower Project, Satora Bank
LOC, 4.50% due 9/1/18,
Optional Put 9/1/96 at 100.... 240,062
30,000 Maine State Housing Authority
Refunding Revenue Bonds,
Series 91 A, FSA insured,
7.40%, due 11/15/22........... 31,978
30,000 Maine State Housing Authority
Revenue Bonds, Mortgage
Purchase, Series 86 B, MGIC
Private Mortgage Pools, 7.50%,
due 11/15/16.................. 31,129
10,000 Maine State Housing Authority
Revenue Bonds, Mortgage
Purchase, Series 87 A-1,
FHA/VA/Private Mortgage Pools,
8.10%, due 11/15/07........... 10,570
25,000 Maine State Housing Authority
Revenue Bonds, Mortgage
Purchase, Series 87 A-2,
FHA/VA Mortgage Pools, 8.10%,
due 11/15/08.................. 26,794
25,000 Maine State Housing Authority
Revenue Bonds, Mortgage
Purchase, Series 87 B,
FHA/VA/Private Mortgage Pools,
7.60%, due 11/15/99........... 26,619
15,000 Maine State Housing Authority
Revenue Bonds, Mortgage
Purchase, Series 88 B,
FHA/VA/Private Mortgage Pools,
8.00%, due 11/15/15........... 16,136
HOUSING REVENUE, CONTINUED:
$ 100,000 Maine State Housing Authority
Revenue Bonds, Mortgage
Purchase, Series 88 C, 8.20%,
due 11/15/08.................. $ 107,071
40,000 Maine State Housing Authority
Revenue Bonds, Mortgage
Purchase, Series 88 D-5,
7.45%, due 11/15/11........... 42,652
200,000 Maine State Housing Authority
Revenue Bonds, Mortgage
Purchase, Series 88 D-6,
7.25%, due 11/15/19........... 210,750
20,000 Maine State Housing Authority
Revenue Bonds, Mortgage
Purchase, Series 89 A-1,
7.625%, due 11/15/24.......... 21,007
30,000 Maine State Housing Authority
Revenue Bonds, Mortgage
Purchase, Series 89 A-2,
7.30%, due 11/15/16........... 31,649
110,000 Maine State Housing Authority
Revenue Bonds, Mortgage
Purchase, Series 90 A-5,
Remarketed 5/13/93, 6.20%, due
11/15/16...................... 110,543
300,000 Maine State Housing Authority
Revenue Bonds, Mortgage
Purchase, Series 94 A-2,
5.20%, due 11/15/08........... 285,448
250,000 Maine State Housing Authority
Revenue Bonds, Mortgage
Purchase, Series 94 C-1,
6.20%, due 11/15/07........... 258,670
50,000 Maine State Housing Authority
Revenue Bonds, Single Family
Mortgage Refunding Revenue
Bonds, Series 91-1, 6.90%, due
11/1/07....................... 52,880
55,000 Maine State Housing Authority
Revenue Bonds, Single Family
Mortgage Refunding Revenue
Bonds, Series 91-1, 7.15%, due
11/1/21....................... 58,132
50,000 Virgin Islands Housing Finance
Authority, Single Family
Refunding Revenue Bonds, GNMA
Mortgage-Backed, 6.00%, due
3/1/07........................ 50,866
-----------
1,612,956
-----------
INDUSTRIAL DEVELOPMENT REVENUE (3.6%):
800,000 Puerto Rico Industrial, Medical
& Environmental Revenue Bonds,
Motorola, Inc. Project, Series
83 A, 6.75%, due 1/1/14....... 872,896
-----------
872,896
-----------
</TABLE>
See notes to financial statements. 10 FORUM FUNDS, INC.
<PAGE>
- --------------------------------------------------------------------------------
MAINE MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS (continued)
SEPTEMBER 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- ----------- -------------------------------- -----------
<S> <C> <C>
POLLUTION CONTROL REVENUE (4.2%):
$ 530,000 East Millinocket, ME, Pollution
Control Revenue Bonds, Great
Northern Nekoosa Corporation
Project, Escrowed to Maturity
in U.S. Governments, 6.70%,
due 6/1/04.................... $ 526,159
500,000 Jay, ME, Solid Waste Disposal
Revenue Bonds, International
Paper Company Project, Series
B, 6.00%, due 12/1/17......... 486,810
-----------
1,012,969
-----------
RESOURCE RECOVERY REVENUE (3.4%):
500,000 Regional Waste Systems, Inc.,
ME, Revenue Bonds, Series A-C,
7.30%, due 7/1/98............. 534,380
240,000 Regional Waste Systems, Inc.,
ME, Revenue Bonds, Series A-C,
7.95%, due 7/1/10............. 265,978
25,000 Regional Waste Systems, Inc.,
ME, Revenue Bonds, Series D-F,
7.60%, due 7/1/00............. 26,871
-----------
827,229
-----------
TRANSPORTATION REVENUE (2.4%):
65,000 Commonwealth of Puerto Rico
Highway & Transportation
Authority Refunding Revenue
Bonds, Series 92 U, 5.875%,
due 7/1/99.................... 68,188
500,000 Commonwealth of Puerto Rico
Highway & Transportation
Authority Refunding Revenue
Bonds, Series 93 X, 5.00%, due
7/1/02........................ 505,385
-----------
573,573
-----------
UTILITIES REVENUE (2.1%):
40,000 Kennebec, ME, Water District
Revenue Bonds, 7.00%, due
12/1/02, Prerefunded (U.S.
Government) 12/1/01 at 101.50 45,720
165,000 Kennebec, ME, Water District
Revenue Bonds, 7.00%, due
12/1/14, Prerefunded (U.S.
Government) 12/1/01 at 101.50 188,593
250,000 Puerto Rico Telephone Authority
Refunding Revenue Bonds,
Series 93 M, 5.40%, due
1/1/08........................ 251,605
25,000 Wells Sanitation District, ME,
Sewer Revenue Bonds, 6.75%,
due 3/1/00.................... 27,003
-----------
512,921
-----------
OTHER REVENUE (11.1%):
$ 500,000 Guam Government Limited
Obligation Revenue Bonds,
Series 89 A, Fuji Bank LOC,
7.00%, due 11/15/04........... $ 531,300
10,000 Maine Court Facilities Authority
Lease Rental Revenue Bonds,
7.15%, due 8/1/07, Prerefunded
(U.S. Government) 8/1/00 at
102........................... 11,320
100,000 Topsham, ME, Revenue Bonds,
Frank Goodwin Project, Series
89 A, CIC insured, 7.20%, due
9/1/05, Mandatory Put 9/1/96
at 100........................ 102,994
750,000 Virgin Islands Public Finance
Authority Revenue Bonds,
Matching Federal Loan Notes,
Series A, 6.90%, due 10/1/01.. 798,158
1,000,000 Virgin Islands Public Finance
Authority Refunding Revenue
Bonds, Escrowed to Maturity in
U.S. Governments, Series 89 A,
7.30%, due 10/1/18............ 1,222,820
-----------
2,666,592
-----------
Total Municipals
(cost $23,283,988) 23,844,093
-----------
BOND ANTICIPATION NOTES (0.0%):
10,000 Bangor, ME, Unlimited Tax
General Obligation Bonds,
10.00%, due 6/1/97............ 10,935
-----------
Total Bond Anticipation Notes
(cost $10,880) 10,935
-----------
SHORT-TERM HOLDINGS (0.8%):
104,848 1784 Tax Free Money Market
Fund.......................... 104,848
77,446 Fidelity Tax Exempt Money Market
Fund.......................... 77,446
-----------
Total Short-Term Holdings
(cost $182,294) 182,294
-----------
Total Investments (100.0%)
(cost $23,477,162) $24,037,322
-----------
-----------
</TABLE>
See notes to financial statements. 11 FORUM FUNDS, INC.
<PAGE>
- --------------------------------------------------------------------------------
NEW HAMPSHIRE BOND FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- --------- ---------------------------------- -----------
<S> <C> <C>
MUNICIPAL BONDS (96.3%):
GENERAL OBLIGATION -- BOND BANK (12.6%):
$ 25,000 New Hampshire Municipal Bond Bank,
Series 89 B, 6.70%, due 7/15/04,
Prerefunded (U.S. Government)
7/15/99 at 102................... $ 27,457
25,000 New Hampshire Municipal Bond Bank,
Series 90 A, 6.90%, due
1/15/05.......................... 27,370
20,000 New Hampshire Municipal Bond Bank,
Series 90 D, 6.90%, due
7/15/03.......................... 22,196
25,000 New Hampshire Municipal Bond Bank
Revenue Bonds, Series 91 E,
6.90%, due 8/15/06............... 27,523
50,000 New Hampshire Municipal Bond Bank
Refunding Bonds, Series 92 H,
6.35%, due 7/15/06............... 54,106
175,000 New Hampshire Municipal Bond Bank
Refunding Bonds, Series 92 H,
6.50%, due 7/15/08............... 187,830
100,000 New Hampshire Municipal Bond Bank
Refunding Bonds, Series 93 E,
5.20%, due 8/15/08............... 97,251
85,000 New Hampshire Municipal Bond Bank,
Series 94 C, State Guaranteed,
5.80%, due 8/15/08............... 88,188
150,000 New Hampshire Municipal Bond Bank,
Series 94 E, State Guaranteed
5.25%, due 8/15/01............... 155,903
----------
687,824
----------
GENERAL OBLIGATION -- POLITICAL SUBDIVISIONS (19.3%):
35,000 Bedford, NH, Unlimited Tax General
Obligation Bonds, 6.70%, due
8/1/12........................... 37,057
100,000 Concord, NH, General Obligation
Refunding Bonds, MBIA insured,
5.00%, due 1/15/09............... 95,866
25,000 Concord, NH, General Obligation
Bonds, Series 88, 7.00%, due
5/15/04 Prerefunded (U.S.
Government) 5/15/98 at 102....... 27,178
25,000 Exeter, NH, Unlimited Tax General
Obligation Bonds, 5.30%, due
6/15/08.......................... 25,228
50,000 Exeter, NH, Unlimited Tax General
Obligation Bonds, Series 88,
5.10%, due 6/15/05............... 51,111
50,000 Franklin, NH, General Obligation
Bonds, MBIA insured, 5.20%, due
10/1/07.......................... 50,271
45,000 Manchester, NH, Public Improvement
Bonds, 7.10%, due 9/1/00,
Prerefunded (U.S. Government)
9/1/97 at 102.................... 48,301
40,000 Manchester, NH, Public Improvement
Bonds, 7.50%, due 9/1/04,
Prerefunded (U.S. Government)
9/1/97 at 102.................... 43,227
GENERAL OBLIGATION -- POLITICAL SUBDIVISIONS, CONTINUED:
$ 250,000 Manchester, NH, Unlimited Tax
General Obligation Bonds, Series
93 A, 5.30%, due 7/1/07.......... $ 251,303
15,000 Nashua, NH, Unlimited Tax General
Obligation Bonds, 6.80%, due
7/1/09........................... 16,293
100,000 Nashua, NH, Unlimited Tax General
Obligation Bonds, AMBAC insured,
5.35%, due 7/15/06............... 102,047
250,000 New Hampshire State Capital
Improvement General Obligation
Bonds, Series 91 B, 6.50%, due
11/1/11, Prerefunded (U.S.
Government) 11/1/01 at 102....... 279,321
30,000 Salem, NH, Unlimited Tax General
Obligation Bonds, MBIA insured,
6.45%, due 3/1/04................ 32,688
----------
1,059,891
----------
GENERAL OBLIGATION -- SCHOOL DISTRICTS (7.3%):
90,000 Farmington, NH, School District,
General Obligation Bonds, AMBAC
insured, 5.55%, due 2/15/02...... 94,319
100,000 Goffstown, NH, General Obligation
Bonds, AMBAC insured, 5.25%, due
8/15/11.......................... 95,332
20,000 Hudson, NH, General Obligation
Bonds, School Lot B, 7.30%, due
12/15/08......................... 23,700
25,000 Hudson, NH, School District School
Improvement Bonds, Lot B, 7.30%,
due 12/15/06..................... 29,673
50,000 Oyster River, NH, Cooperative
School District State Guaranteed
General Obligation Bonds, Lot A,
5.75%, due 6/15/07............... 52,652
100,000 Oyster River, NH, Cooperative
School District State Guaranteed
General Obligation Bonds, Lot A,
5.85%, due 6/15/08............... 105,110
----------
400,786
----------
GENERAL OBLIGATION -- STATES, TERRITORIES (3.8%):
100,000 Nashua, NH, Unlimited Tax General
Obligation Public Improvement
Bonds, 6.80%, due 7/1/07......... 109,873
100,000 New Hampshire State Unlimited Tax
General Obligation Refunding
Bonds, 5.25%, due 7/15/11........ 96,353
----------
206,226
----------
EDUCATION FACILITIES REVENUE (11.4%):
15,000 Mascenic, NH, Regional School
District #1, Lot C, AMBAC
insured, 7.20%, due 12/15/07..... 17,835
255,000 New Hampshire Higher Education &
Health Facilities Authority
(Franklin Pierce College Revenue
Bonds), Series 94, 5.50%, due
10/1/04.......................... 244,004
</TABLE>
See notes to financial statements. 12 FORUM FUNDS, INC.
<PAGE>
- --------------------------------------------------------------------------------
NEW HAMPSHIRE BOND FUND
SCHEDULE OF INVESTMENTS (continued)
SEPTEMBER 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- --------- ---------------------------------- -----------
<S> <C> <C>
EDUCATION FACILITIES REVENUE, CONTINUED:
$ 125,000 New Hampshire Higher Education &
Health Facilities Authority
(Rivier College Revenue Bonds),
6.90%, due 1/1/13............... $ 128,158
30,000 New Hampshire Higher Education &
University System of New
Hampshire Revenue Bonds, MBIA
insured, Series 92, 6%, due
7/1/07.......................... 31,432
92,000 Puerto Rico Public Buildings
Authority, Guaranteed Public
Education and Health Facilities
Refunding Revenue Bonds, FSA
insured, Series 93 M, 5.70%, due
7/1/09.......................... 95,827
100,000 University of Puerto Rico Revenue
Bonds, Series L, 7.75%, due
6/1/07, Prerefunded (U.S.
Government) 6/1/96 at 102....... 104,517
-----------
621,773
-----------
HEALTH CARE REVENUE (.9%):
50,000 New Hampshire Higher Education &
Health Facilities Authority,
(Nashua Memorial Hospital
Revenue Bonds), 5.50%, due
10/1/02......................... 50,725
-----------
HOUSING REVENUE (6.2%):
100,000 New Hampshire State Housing
Finance Authority, Single Family
Residential Revenue Bonds,
Series 92 A, 5.25%, due
1/1/07.......................... 98,738
100,000 Puerto Rico Housing Bank & Finance
Agency Special Obligation
Revenue Bonds, Series 92 H, FSA
insured, 5.95%, due 10/1/01..... 107,122
130,000 Virgin Islands Housing Finance
Authority, Single Family Revenue
Refunding Bonds, GNMA
Mortgage-Backed, 6.00%, due
3/1/07.......................... 132,251
-----------
338,111
-----------
RESOURCE RECOVERY REVENUE (1.5%):
75,000 Guam Government Water System
Revenue Bonds, CGIC insured,
6.85%, due 7/1/99............... 81,020
-----------
TRANSPORTATION REVENUE (12.7%):
25,000 Guam Government Limited Obligation
Highway Revenue Bonds, Series 92
A, CGIC insured, 5.60%, due
5/1/00.......................... 26,138
TRANSPORTATION REVENUE, CONTINUED:
$ 550,000 New Hampshire State Turnpike
System Refunding Revenue Bonds,
Series 91 A, FGIC insured,
7.00%, due 11/1/06.............. $ 640,689
25,000 New Hampshire State Turnpike
System Refunding Revenue Bonds,
Series 91 A, FGIC insured,
6.75%, due 11/1/11.............. 27,642
-----------
694,469
-----------
OTHER REVENUE (20.6%):
85,000 Puerto Rico Public Buildings
Authority, Commonwealth
Guaranteed Public Education and
Health Facilities Refunding
Revenue Bonds, Series 93 M,
5.10%, due 7/1/01............... 86,647
520,000 Virgin Islands Public Finance
Authority Revenue Bonds,
Government Development Program,
Series A, 7.00%, due 10/1/04.... 560,456
250,000 Virgin Islands Public Finance
Authority Revenue Bonds, Series
A, 6.90%, due 10/1/01........... 266,053
160,000 Virgin Islands Public Finance
Authority Revenue Bonds, Series
89 A, 7.30%, due 10/1/18,
Prerefunded (U.S. Government)
10/1/00 at 101.................. 182,122
30,000 Virgin Islands Public Finance
Authority Revenue Bonds, Series
89 B, 7.25%, due 10/1/07,
Prerefunded (U.S. Government)
10/1/00 at 101.................. 34,205
-----------
1,129,483
-----------
Total Municipal Bonds
(cost $5,183,400) 5,270,308
-----------
SHORT-TERM HOLDINGS (3.7%):
200,000 New Hampshire Health & Higher
Education Facilities Authority
Revenue Municipal Demand Notes,
FGIC insured, 4.40% variable
rate, due 7/1/21................ 200,000
-----------
Total Short Term Holdings
(cost $200,000) 200,000
-----------
Total Investments (100.0%)
(cost $5,383,400) $5,470,308
-----------
-----------
</TABLE>
See notes to financial statements. 13 FORUM FUNDS, INC.
<PAGE>
- --------------------------------------------------------------------------------
DAILY ASSETS TREASURY FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- ------------ ------------------------------- -----------
<S> <C> <C>
U.S. TREASURY BILLS (61.5%):
$ 5,000,000 5.920% yield, due 10/19/95..... $ 4,986,022
4,500,000 6.000% yield, due 11/2/95...... 4,478,335
14,000,000 5.304% yield, due 11/9/95...... 13,922,988
-----------
Total U.S. Treasury Bills 23,387,345
-----------
GOVERNMENT AGENCY NOTES (30.3%):
1,000,000 Student Loan Marketing
Association, 5.44% variable
rate, due 11/9/95............ 1,000,000
6,000,000 Student Loan Marketing
Association, 5.51% variable
rate, due 12/14/95........... 6,000,000
1,000,000 Student Loan Marketing
Association, 5.49% variable
rate, due 1/11/96............ 1,000,000
1,000,000 Student Loan Marketing
Association, 5.46% variable
rate, due 2/8/96............. 1,000,000
GOVERNMENT AGENCY NOTES, CONTINUED:
$ 2,500,000 Student Loan Marketing
Association, 5.44% variable
rate, due 7/19/96............ $ 2,500,951
-----------
Total Government Agency Notes 11,500,951
-----------
OTHER (8.2%):
1,810,526 Dreyfus Treasury Prime Cash
Management Fund Class-A
Shares....................... 1,810,526
1,306,511 Merrill Lynch Institutional
Treasury Fund................ 1,306,511
-----------
Total Other 3,117,037
-----------
Total Investments (100.0%)................... $38,005,333
-----------
-----------
</TABLE>
See notes to financial statements. 14 FORUM FUNDS, INC.
<PAGE>
- --------------------------------------------------------------------------------
PAYSON BALANCED FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY
SHARES DESCRIPTION VALUE
- ----------- -------------------------------- -----------
<S> <C> <C>
COMMON STOCKS (60.5%)
CHEMICALS & ALLIED PRODUCTS (7.6%):
5,090 Bristol-Myers Squibb Company.... $ 370,933
10,000 Dexter Corporation.............. 255,000
10,700 Praxair, Inc.................... 286,225
5,750 Schering-Plough Corporation..... 296,125
-----------
1,208,283
-----------
COMMUNICATIONS (2.5%):
6,000 AT&T Corporation................ 394,500
-----------
DOMESTIC DEPOSITORY INSTITUTIONS (2.0%):
3,125 First Interstate Bancorp........ 314,843
-----------
ELECTRIC, GAS, & SANITARY SERVICES (3.1%):
8,200 CINergy Corporation............. 228,575
12,300 Energen Corporation............. 267,525
-----------
496,100
-----------
ELECTRONIC & ELECTRICAL EQUIPMENT EXCEPT COMPUTER EQUIPMENT
(4.6%):
3,500 General Electric Company........ 223,125
5,045 Harris Corporation.............. 276,844
1,940 ITT Corporation................. 240,560
-----------
740,529
-----------
ENERGY (1.6%):
7,600 Public Service Company of
Colorado...................... 260,300
-----------
FEDERAL AGENCIES & INSTRUMENTALITIES (1.9%):
2,985 Federal National Mortgage
Association................... 308,947
-----------
FOOD & KINDRED PRODUCTS (3.6%):
5,600 PepsiCo, Inc.................... 285,600
13,900 Whitman Corporation............. 286,687
-----------
572,287
-----------
HEALTH SERVICES (2.9%):
9,700 Caremark International, Inc..... 208,550
13,000 Humana, Inc.*................... 261,625
-----------
470,175
-----------
HOLDING & OTHER INVESTMENT OFFICES (3.6%):
12,500 New Plan Realty Trust........... 276,562
15,500 Security Capital Pacific
Trust......................... 294,500
-----------
571,062
-----------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT
(4.0%):
10,995 Briggs & Stratton Corporation... 442,548
4,500 York International
Corporation................... 189,562
-----------
632,110
-----------
MISCELLANEOUS RETAIL (1.5%):
9,000 Toys 'R' Us, Inc.*.............. 243,000
-----------
OFFICE EQUIPMENT (2.0%):
15,300 American Business Products,
Inc........................... 315,562
-----------
OIL & GAS EXTRACTION (1.9%):
9,500 Questar Corporation............. 305,187
-----------
PAPER & ALLIED PRODUCTS (2.0%):
4,700 Willamette Industries........... $ 313,725
-----------
PETROLEUM REFINING & RELATED INDUSTRIES (3.8%):
3,775 Exxon Corporation............... 272,744
5,100 Texaco, Inc..................... 329,589
-----------
602,333
-----------
TOBACCO (2.5%):
9,600 American Brands, Inc............ 405,600
-----------
TRANSPORTATION EQUIPMENT (8.1%):
7,100 Chrysler Corporation............ 376,300
5,900 Lockheed Martin Corporation..... 396,040
3,000 Northrop Grumman Corporation.... 182,625
4,960 Textron, Inc.................... 338,520
-----------
1,293,485
-----------
TRANSPORTATION SERVICES (1.3%):
7,830 Pittston Services Group......... 212,390
-----------
Total Common Stocks
(cost $7,988,947) 9,660,418
-----------
<CAPTION>
FACE AMOUNT
- -----------
<C> <S> <C>
CORPORATE BONDS & NOTES (8.8%):
$ 50,000 Allstate Corporation, 5.875%,
due 6/15/98................... 49,440
100,000 Avco Financial Services, 5.875%,
due 10/15/97.................. 99,377
45,000 Avco Financial Services, 5.50%,
due 5/1/98.................... 44,222
150,000 Bear Stearns Companies, Inc.,
6.625%, due 1/15/04........... 146,022
50,000 Comerica Bank, Detroit, 5.95%,
due 9/15/97................... 49,807
10,000 Florida Power & Light Company,
5.00%, due 12/1/95............ 9,986
50,000 Ford Motor Credit Corporation,
7.125%, due 12/1/97........... 50,900
100,000 GTE South, Inc., 6.25%, due
11/15/97...................... 99,753
100,000 Household Finance Corporation,
7.625%, due 6/15/99........... 103,988
65,000 PepsiCo, Inc., 6.25%, due
9/1/99........................ 64,910
200,000 Sears Roebuck Acceptance
Corporation, 6.75%, due
9/15/05....................... 198,844
100,000 Southwestern Bell Capital
Corporation, 6.05%, due
2/9/98........................ 99,775
25,000 Virginia Electric & Power
Company, 6.25%, due 8/1/98.... 24,951
100,000 Wachovia Corporation, 7.00%, due
12/15/99...................... 102,420
50,000 Wal-Mart Stores, Inc., 5.25%,
due 3/1/98.................... 49,273
50,000 Wisconsin Natural Gas Company,
6.625%, due 1/15/97........... 50,265
50,000 WMX Technologies, Inc., 4.875%,
due 6/15/96................... 49,620
</TABLE>
*Non-income producing security.
See notes to financial statements. 15 FORUM FUNDS, INC.
<PAGE>
- --------------------------------------------------------------------------------
PAYSON BALANCED FUND
SCHEDULE OF INVESTMENTS (continued)
SEPTEMBER 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- ----------- -------------------------------- -----------
<S> <C> <C>
CORPORATE BONDS & NOTES, CONTINUED:
$ 100,000 WMX Technologies, Inc., 8.25%,
due 11/15/99.................. $ 106,477
-----------
Total Corporate Bonds & Notes
(cost $1,403,643) 1,400,030
-----------
GOVERNMENT AGENCY NOTES (15.0%):
200,000 Federal Home Loan Bank, 8.93%,
due 1/18/02................... 201,871
300,000 Federal Home Loan Mortgage
Corporation, 6.41%, due
12/29/03...................... 291,561
400,000 Federal Home Loan Mortgage
Corporation, 6.89%, due
10/3/05....................... 396,024
100,000 Federal National Mortgage
Association, 7.70%, due
9/10/96....................... 101,607
100,000 Federal National Mortgage
Association, 9.55%, due
11/10/97...................... 107,237
200,000 Federal National Mortgage
Association, 6.81%, due
4/23/99....................... 201,994
600,000 Federal National Mortgage
Association, 6.54%, due
9/8/00........................ 603,937
100,000 Federal National Mortgage
Association, 6.375%, due
4/29/03....................... 95,488
400,000 Student Loan Marketing
Association, 7.41%, due
3/13/98....................... 403,547
-----------
Total Government Agency Notes
(cost $1,980,907).......................... 2,403,266
-----------
COLLATERALIZED MORTGAGE OBLIGATIONS (2.4%):
200,000 Federal Home Loan Mortgage
Corporation, Series 1678 C,
6.00%, due 8/15/08............ 189,178
COLLATERALIZED MORTGAGE OBLIGATIONS, CONTINUED:
$ 200,000 Federal Home Loan Mortgage
Corporation, Series 1626 F,
5.994%, due 12/15/08.......... $ 190,472
-----------
Total Collateralized Mortgage Obligations
(cost $788,899) 379,650
-----------
MORTGAGE BACKED SECURITIES (1.3%):
209,457 Federal Home Loan Mortgage
Corporation, Adjustable Rate
Mortgage Pool 390043, 6.375%
variable rate, due 5/1/18..... 208,278
-----------
Total Mortgage Backed Securities
(cost $214,693) 208,278
-----------
U.S. TREASURY NOTES (10.2%):
100,000 4.25%, due 5/15/96.............. 99,094
400,000 6.50%, due 4/30/97.............. 404,374
400,000 7.875%, due 1/15/98............. 417,000
125,000 9.125%, due 5/15/99............. 137,656
275,000 6.75%, due 6/30/99.............. 281,960
275,000 7.25%, due 5/15/04.............. 293,734
-----------
Total U.S. Treasury Notes
(cost $1,602,359) 1,633,818
-----------
U.S. TREASURY BILLS (0.6%):
100,000 5.887% yield, due 2/8/96........ 98,094
-----------
Total U.S. Treasury Bills
(cost $97,986) 98,094
-----------
SHORT TERM HOLDINGS (1.2%):
183,847 1784 U.S. Treasury Money Market
Fund.......................... 183,847
3,001 Dreyfus Government Cash
Management Fund............... 3,001
-----------
Total Short-Term Holdings
(cost $186,848)............................ 186,848
-----------
Total Investments (100.0%)
(cost $14,264,282) $15,970,402
-----------
-----------
</TABLE>
See notes to financial statements. 16 FORUM FUNDS, INC.
<PAGE>
- --------------------------------------------------------------------------------
PAYSON VALUE FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY
SHARES DESCRIPTION VALUE
- --------- ----------------------------------- ----------
<S> <C> <C>
COMMON STOCK (89.6%)
BUILDING CONSTRUCTION - GENERAL
CONTRACTORS (1.9%):
10,000 Southdown, Inc.*................... $ 176,250
----------
CHEMICALS & ALLIED PRODUCTS (9.1%):
3,000 Bristol-Myers Squibb Company....... 218,625
6,000 Dexter Corporation................. 153,000
7,500 Praxair, Inc....................... 200,625
5,000 Schering-Plough Corporation........ 257,500
----------
829,750
----------
COMMUNICATIONS (2.4%):
3,500 Telecom Corporation of New Zealand,
Ltd.............................. 216,125
----------
DOMESTIC DEPOSITORY INSTITUTIONS (4.6%):
2,000 First Interstate Bancorp........... 201,500
1,500 First Virginia Banks, Inc.......... 61,875
5,000 JSB Financial, Inc................. 156,875
----------
420,250
----------
ELECTRIC, GAS, & SANITARY SERVICES (7.7%):
5,000 Browning-Ferris Industries......... 151,875
10,000 CINergy Corporation................ 278,750
3,200 Questar Corporation................ 102,800
5,000 Public Service Company of
Colorado......................... 171,250
----------
704,675
----------
ELECTRONIC & ELECTRICAL EQUIPMENT, EXCEPT
COMPUTER EQUIPMENT (10.9%):
4,000 Avnet, Inc......................... 206,500
4,000 General Electric Company........... 255,000
4,500 Harris Corporation................. 246,937
1,400 ITT Corporation.................... 173,600
2,000 Whirlpool Corporation.............. 115,500
----------
997,537
----------
FEDERAL AGENCIES & INSTRUMENTALITIES (2.9%):
2,550 Federal National Mortgage
Association...................... 263,925
----------
FOOD & KINDRED PRODUCTS (9.0%):
2,800 CPC International, Inc............. 184,800
5,000 PepsiCo, Inc....................... 255,000
5,000 Universal Foods Corporation........ 174,375
10,000 Whitman Corporation................ 206,250
----------
820,425
----------
FOOD STORES (1.9%):
6,000 American Stores Company............ 170,250
----------
GENERAL MERCHANDISE (1.8%):
2,150 Dayton Hudson Corporation.......... $ 163,131
----------
HEALTH SERVICES (3.6%):
7,650 Caremark International, Inc........ 164,475
8,000 Humana, Inc.*...................... 161,000
----------
325,475
----------
HOLDING & OTHER INVESTMENT OFFICES (1.0%):
4,500 Resource Mortgage Capital, Inc..... 91,125
----------
INDUSTRIAL & COMMERCIAL MACHINERY &
COMPUTER EQUIPMENT (3.8%):
5,000 Briggs & Stratton Corporation...... 201,250
3,500 York International Corporation..... 147,438
----------
348,688
----------
INSURANCE CARRIERS (0.9%):
1,800 Unitrin, Inc....................... 84,600
----------
LUMBER & WOOD PRODUCTS, EXCEPT
FURNITURE (0.1%):
250 Rayonier, Inc...................... 9,781
----------
MISCELLANEOUS RETAIL (3.0%):
10,000 Toys 'R' Us, Inc.*................. 270,000
----------
PAPER & ALLIED PRODUCTS (4.1%):
3,500 Boise Cascade Corporation.......... 141,312
3,500 Willamette Industries.............. 233,625
----------
374,937
----------
PETROLEUM REFINING & RELATED
INDUSTRIES (4.9%):
2,500 Mobil Corporation.................. 249,063
3,000 Texaco, Inc........................ 193,875
----------
442,938
----------
PRINTING, PUBLISHING, & ALLIED
INDUSTRIES (0.4%):
1,600 American Business Products, Inc.... 33,000
----------
RUBBER & MISCELLANEOUS PLASTICS
PRODUCTS (2.8%):
5,000 Premark International, Inc......... 254,375
----------
TELECOMMUNICATIONS (2.5%):
3,500 AT&T Corporation................... 230,125
----------
TOBACCO PRODUCTS (1.9%):
4,000 American Brands, Inc............... 169,000
----------
TRANSPORTATION EQUIPMENT (6.5%):
4,250 Chrysler Corporation............... 225,250
3,000 Lockheed Martin Corporation........ 201,375
2,400 Textron, Inc....................... 163,800
----------
590,425
----------
</TABLE>
*Non-income producing security.
See notes to financial statements. 17 FORUM FUNDS, INC.
<PAGE>
- --------------------------------------------------------------------------------
PAYSON VALUE FUND
SCHEDULE OF INVESTMENTS (continued)
SEPTEMBER 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY
SHARES DESCRIPTION VALUE
- --------- ----------------------------------- ----------
<S> <C> <C>
TRANSPORTATION SERVICES (1.9%):
6,300 Pittston Services Group............ $ 170,888
----------
Total Common Stock
(cost $6,576,050) 8,157,675
----------
TREASURY BILLS (1.1%):
100,000 5.209% yield, due 10/12/95......... 99,858
----------
Total Treasury Bills
(cost $99,858) 99,858
----------
SHORT TERM HOLDINGS (9.3%):
$ 431,392 1784 U.S. Treasury Money Market
Fund............................. $ 431,392
420,050 Dreyfus Government Cash Management
Fund............................. 420,050
----------
Total Short Term Holdings
(cost $851,442) 851,442
----------
Total Investments (100%)
(cost $7,527,350) $9,108,975
----------
----------
</TABLE>
See notes to financial statements. 18 FORUM FUNDS, INC.
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MAINE NEW DAILY
INVESTORS TAXSAVER MUNICIPAL HAMPSHIRE ASSETS PAYSON PAYSON
BOND BOND BOND BOND TREASURY BALANCED VALUE
FUND FUND FUND FUND FUND FUND FUND
----------- ------------ ----------- ---------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value.............. $26,954,453 $ 17,278,079 $24,037,322 $5,470,308 $38,005,333 $15,970,402 $9,108,975
Interest, dividends and other
receivables...................... 387,556 332,750 481,657 205,922 185,677 111,170 22,419
Receivable for securities sold..... 153 15,844 1,407,182 140,000 -- 392,317 --
Receivable for shares issued....... -- -- 15,403 48,915 -- -- --
----------- ------------ ----------- ---------- ----------- ----------- ----------
Total assets.......................... 27,342,162 17,626,673 25,941,564 5,865,145 38,191,010 16,473,889 9,131,394
----------- ------------ ----------- ---------- ----------- ----------- ----------
LIABILITIES:
Dividends payable.................. 170,839 80,701 104,762 22,211 160,965 133,787 30,766
Accrued fees and other expenses.... 16,458 9,184 14,137 3,392 29,460 25,083 14,129
Payable for securities purchased... -- -- -- 97,153 -- 396,024 345,400
Payable for shares redeemed........ -- -- 41,638 -- -- -- --
----------- ------------ ----------- ---------- ----------- ----------- ----------
Total liabilities..................... 187,297 89,885 160,537 122,756 190,425 554,894 390,295
----------- ------------ ----------- ---------- ----------- ----------- ----------
NET ASSETS............................ $27,154,865 $ 17,536,788 $25,781,027 $5,742,389 $38,000,585 $15,918,995 $8,741,099
----------- ------------ ----------- ---------- ----------- ----------- ----------
----------- ------------ ----------- ---------- ----------- ----------- ----------
COMPONENTS OF NET ASSETS:
Capital paid in.................... $27,189,314 $ 16,927,435 $25,303,864 $5,690,348 $37,980,607 $13,873,479 $7,097,236
Undistributed net investment
income........................... 7,262 285 421 94 520 7,115 3,245
Unrealized appreciation
(depreciation)................... (53,143) 647,251 560,160 86,908 -- 1,706,120 1,581,625
Accumulated net realized gains
(losses)......................... 11,432 (38,183) (83,418) (34,961) 19,458 332,281 58,993
----------- ------------ ----------- ---------- ----------- ----------- ----------
NET ASSETS............................ $27,154,865 $ 17,536,788 $25,781,027 $5,742,389 $38,000,585 $15,918,995 $8,741,099
----------- ------------ ----------- ---------- ----------- ----------- ----------
----------- ------------ ----------- ---------- ----------- ----------- ----------
SHARES OUTSTANDING.................... 2,680,506 1,660,025 2,399,654 554,400 37,980,607 1,215,297 615,318
----------- ------------ ----------- ---------- ----------- ----------- ----------
----------- ------------ ----------- ---------- ----------- ----------- ----------
NET ASSET VALUE PER SHARE............. $ 10.13 $ 10.56 $ 10.74 $ 10.36 $ 1.00 $ 13.10 $ 14.21
----------- ------------ ----------- ---------- ----------- ----------- ----------
----------- ------------ ----------- ---------- ----------- ----------- ----------
a) Cost of Investments................ $27,007,596 $ 16,630,828 $23,477,162 $5,383,400 $38,005,333 $14,264,282 $7,527,350
</TABLE>
See notes to financial statements. 19 FORUM FUNDS, INC.
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE PERIOD ENDED SEPTEMBER 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MAINE NEW DAILY
INVESTORS TAXSAVER MUNICIPAL HAMPSHIRE ASSETS PAYSON PAYSON
BOND BOND BOND BOND TREASURY BALANCED VALUE
FUND FUND FUND FUND FUND FUND FUND
---------- -------- ---------- --------- ---------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income............................. $1,080,831 $507,915 $ 694,837 $146,959 $1,049,617 $ 210,919 $ 19,724
Dividend income............................. -- -- -- -- -- 136,696 103,970
---------- -------- ---------- --------- ---------- ---------- --------
Total investment income..................... 1,080,831 507,915 694,837 146,959 1,049,617 347,615 123,694
---------- -------- ---------- --------- ---------- ---------- --------
EXPENSES:
Investment advisory......................... 52,846 33,851 51,870 11,015 36,664 44,913 32,706
Management.................................. 39,635 25,388 38,903 8,261 54,996 14,971 8,177
Transfer agency............................. 39,737 27,595 42,139 13,673 52,163 28,153 18,196
Accounting.................................. 20,000 20,000 24,000 19,000 18,000 18,000 18,000
Custody..................................... 4,249 1,031 2,830 507 4,253 1,953 716
Professional services....................... 5,794 3,537 5,446 3,253 7,707 3,123 1,709
Valuation services.......................... 130 1,959 8,605 3,410 -- 496 340
Directors................................... 661 424 660 139 905 371 204
Other....................................... 7,025 4,856 5,090 2,962 10,947 7,930 5,047
---------- -------- ---------- --------- ---------- ---------- --------
170,077 118,641 179,543 62,220 185,635 119,910 85,095
Fees waived and expenses reimbursed............ (70,721) (67,729) (102,376) (45,830) (93,722) (33,622) (25,691)
---------- -------- ---------- --------- ---------- ---------- --------
Total expenses................................. 99,356 50,912 77,167 16,390 91,913 86,288 59,404
---------- -------- ---------- --------- ---------- ---------- --------
NET INVESTMENT INCOME.......................... 981,475 457,003 617,670 130,569 957,704 261,327 64,290
---------- -------- ---------- --------- ---------- ---------- --------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Realized gain on investments................... 6,320 48,112 56,177 22,962 4 162,928 111,856
Change in unrealized appreciation.............. 332,698 227,151 614,027 124,305 -- 1,272,727 800,954
---------- -------- ---------- --------- ---------- ---------- --------
Net gain on investments........................ 339,018 275,263 670,204 147,267 4 1,435,655 912,810
---------- -------- ---------- --------- ---------- ---------- --------
INCREASE IN NET ASSETS FROM OPERATIONS......... $1,320,493 $732,266 $1,287,874 $277,836 $ 957,708 $1,696,982 $977,100
---------- -------- ---------- --------- ---------- ---------- --------
---------- -------- ---------- --------- ---------- ---------- --------
</TABLE>
See notes to financial statements. 20 FORUM FUNDS, INC.
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED MARCH 31, 1995 AND THE PERIOD ENDED SEPTEMBER 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MAINE NEW
INVESTORS TAXSAVER MUNICIPAL HAMPSHIRE
BOND BOND BOND BOND
FUND FUND FUND FUND
----------------------- ----------------------- ----------------------- ---------------------
AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
----------- -------- ----------- -------- ----------- -------- ---------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET
ASSETS -- 3/31/94... $26,083,140 $16,517,889 $26,309,893 $3,554,585
----------- ----------- ----------- ----------
OPERATIONS:
Net investment
income........... 2,050,655 916,723 1,334,004 220,607
Realized gain
(loss) on
investments...... 45,903 (78,499) (139,597) (58,412)
Change in
unrealized
appreciation
(depreciation)... (985,430) 157,985 281,218 113,598
----------- ----------- ----------- ----------
1,111,128 996,209 1,475,625 275,793
----------- ----------- ----------- ----------
DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment
income........... (2,051,195) (917,012) (1,334,390) (220,579)
Realized capital
gain............. -- -- (19,362) --
----------- ----------- ----------- ----------
(2,051,195) (917,012) (1,353,752) (220,579)
----------- ----------- ----------- ----------
CAPITAL SHARE
TRANSACTIONS:
Sale of shares..... 5,936,878 595,834 2,426,440 237,508 4,136,139 401,955 2,273,862 227,167
Reinvested
dividends........ 154,160 16,652 148,901 14,562 790,219 83,767 127,918 15,282
----------- -------- ----------- -------- ----------- -------- ---------- -------
6,091,038 612,486 2,575,341 252,070 4,926,358 485,722 2,401,780 242,449
Shares
repurchased...... (5,343,727) (535,922) (3,154,527) (306,901) (5,833,480) (584,253) (735,803) (76,096)
----------- -------- ----------- -------- ----------- -------- ---------- -------
747,311 76,564 (579,186) (54,831) (907,122) (98,531) 1,665,977 166,353
----------- -------- ----------- -------- ----------- -------- ---------- -------
-------- -------- -------- -------
NET
ASSETS -- 3/31/95... $25,890,384 $16,017,900 $25,524,644 $5,275,776
----------- ----------- ----------- ----------
OPERATIONS:
Net investment
income........... 981,475 457,003 617,670 130,569
Realized gain
(loss) on
investments...... 6,320 48,112 56,177 22,962
Change in
unrealized
appreciation
(depreciation)... 332,698 227,151 614,027 124,305
----------- ----------- ----------- ----------
1,320,493 732,266 1,287,874 277,836
----------- ----------- ----------- ----------
DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment
income........... (981,989) (457,245) (617,948) (130,620)
Realized capital
gain............. -- -- -- --
----------- ----------- ----------- ----------
(981,989) (457,245) (617,948) (130,620)
----------- ----------- ----------- ----------
CAPITAL SHARE
TRANSACTIONS:
Sale of shares..... 2,237,546 220,606 1,723,538 164,400 1,396,877 362,628 479,810 46,802
Reinvested
dividends........ 167,709 16,578 73,516 7,015 344,109 42,431 83,903 9,794
----------- -------- ----------- -------- ----------- -------- ---------- -------
2,405,255 237,184 1,797,054 171,415 1,740,986 405,059 563,713 56,596
Shares
repurchased...... (1,479,278) (145,969) (553,187) (52,674) (2,154,529) (443,163) (244,316) (25,328)
----------- -------- ----------- -------- ----------- -------- ---------- -------
925,977 91,215 1,243,867 118,741 (413,543) (38,104) 319,397 31,268
----------- -------- ----------- -------- ----------- -------- ---------- -------
-------- -------- -------- -------
NET
ASSETS -- 9/30/95... $27,154,865 $17,536,788 $25,781,027 $5,742,389
----------- ----------- ----------- ----------
----------- ----------- ----------- ----------
</TABLE>
See notes to financial statements. 21 FORUM FUNDS, INC.
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED MARCH 31, 1995 AND THE PERIOD ENDED SEPTEMBER 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DAILY
ASSETS PAYSON PAYSON
TREASURY BALANCED VALUE
FUND* FUND FUND
------------ ----------------------- ----------------------
AMOUNT AMOUNT SHARES AMOUNT SHARES
------------ ----------- ------- ---------- -------
<S> <C> <C> <C> <C> <C>
NET
ASSETS -- 3/31/94... $ 26,505,169 $11,354,873 $5,059,939
------------ ----------- ----------
OPERATIONS:
Net investment
income........... 1,320,747 489,040 102,117
Realized gain
(loss) on
investments...... 21,288 169,116 96,089
Change in
unrealized
appreciation
(depreciation)... -- 124,550 265,744
------------ ----------- ----------
1,342,035 782,706 463,950
------------ ----------- ----------
DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment
income........... (1,320,515) (485,995) (99,451)
Realized capital
gain............. -- (52,191) --
------------ ----------- ----------
(1,320,515) (538,186) (99,451)
------------ ----------- ----------
CAPITAL SHARE
TRANSACTIONS:
Sale of shares..... 70,525,862 2,983,899 267,891 3,208,329 271,459
Reinvested
dividends........ 664,035 281,434 24,437 52,142 4,337
------------ ----------- ------- ---------- -------
71,189,897 3,265,333 292,328 3,260,471 275,796
Shares
repurchased...... (61,387,731) (992,685) (96,387) (725,255) (67,142)
------------ ----------- ------- ---------- -------
9,802,166 2,272,648 195,941 2,535,216 208,654
------------ ----------- ------- ---------- -------
------- -------
NET
ASSETS -- 3/31/95... $ 36,328,855 $13,872,041 $7,959,654
------------ ----------- ----------
OPERATIONS:
Net investment
income........... 957,704 261,327 64,290
Realized gain
(loss) on
investments...... 4 162,928 111,856
Change in
unrealized
appreciation
(depreciation)... -- 1,272,727 800,954
------------ ----------- ----------
957,708 1,696,982 977,100
------------ ----------- ----------
DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment
income........... (958,178) (264,693) (66,669)
Realized capital
gain............. -- -- --
------------ ----------- ----------
(958,178) (264,693) (66,669)
------------ ----------- ----------
CAPITAL SHARE
TRANSACTIONS:
Sale of shares..... 34,165,888 1,206,875 96,759 571,611 41,423
Reinvested
dividends........ 32,769 150,450 12,387 37,321 2,853
------------ ----------- ------- ---------- -------
34,198,657 1,357,325 109,146 608,932 44,276
Shares
repurchased...... (32,526,457) (742,660) (59,597) (737,918) (55,283)
------------ ----------- ------- ---------- -------
1,672,200 614,665 49,549 (128,986) (11,007)
------------ ----------- ------- ---------- -------
------- -------
NET
ASSETS -- 9/30/95... $ 38,000,585 $15,918,995 $8,741,099
------------ ----------- ----------
------------ ----------- ----------
</TABLE>
* Share transactions at net asset value of $1.00 per share.
See notes to financial statements.
22 FORUM FUNDS, INC.
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SELECTED PER SHARE DATA AND INVESTORS
RATIOS FOR A SHARE OUTSTANDING FUND
THROUGHOUT THE PERIOD. BOND
---------------------------------------------------------------
SIX MONTHS YEAR ENDED
ENDED MARCH 31,
SEPTEMBER 30, ----------------------------------------------
1995 1995 1994 1993 1992 1991
------------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Beginning net asset value per
share.............................. $10.00 $10.38 $10.71 $10.43 $10.09 $ 9.82
------ ------ ------ ------ ------ ------
Net investment income............... 0.38 0.82 0.81 0.82 0.83 0.84
Net realized and unrealized gain
(loss) on securities............... 0.13 (0.38) (0.30) 0.53 0.44 0.27
Dividends from net investment
income............................. (0.38) (0.82) (0.81) (0.82) (0.83) (0.84)
Distributions from net realized
gains.............................. -- -- (0.03) (0.25) (0.10) --
------ ------ ------ ------ ------ ------
Ending net asset value per share.... $10.13 $10.00 $10.38 $10.71 $10.43 $10.09
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
Ratios to average net assets:
Expenses(a)........................ 0.75%(c) 0.75% 0.75% 0.75% 0.70% 0.64%
Net investment income.............. 7.41%(c) 8.19% 7.49% 7.71% 7.93% 8.44%
Total return........................ 5.12% 4.55% 4.70% 13.53% 12.91% 11.76%
Portfolio turnover rate............. 27.35% 48.17% 41.41% 193.21% 221.39% 73.32%
Net assets at the end of year (000's
omitted)........................... $27,155 $25,890 $26,083 $26,832 $24,336 $19,132
</TABLE>
(a) During the period, various fees and expenses were waived and reimbursed,
respectively. Had such waivers and reimbursements not occurred, the ratio of
expenses to average net assets would have been:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
1.28%(c) 1.33% 1.31% 1.40% 1.51% 1.68%
</TABLE>
(b) See Note 1 for applicable date of inception.
(c) Annualized.
See notes to financial statements. 23 FORUM FUNDS, INC.
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SELECTED PER SHARE DATA AND TAXSAVER
RATIOS FOR A SHARE OUTSTANDING BOND
THROUGHOUT THE PERIOD. FUND
---------------------------------------------------------------
SIX MONTHS YEAR ENDED
ENDED MARCH 31,
SEPTEMBER 30, ----------------------------------------------
1995 1995 1994 1993 1992 1991
------------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Beginning net asset value per
share.............................. $10.39 $10.35 $10.63 $10.26 $10.10 $ 9.97
------ ------ ------ ------ ------ ------
Net investment income............... 0.28 0.57 0.57 0.63 0.68 0.67
Net realized and unrealized gain
(loss)on securities................ 0.17 0.04 (0.01) 0.49 0.20 0.13
Dividends from net investment
income............................. (0.28) (0.57) (0.57) (0.63) (0.68) (0.67)
Distributions from net realized
gains.............................. -- -- (0.27) (0.12) (0.04) --
------ ------ ------ ------ ------ ------
Ending net asset value per share.... $10.56 $10.39 $10.35 $10.63 $10.26 $10.10
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
Ratios to average net assets:
Expenses(a)........................ 0.60%(c) 0.60% 0.60% 0.60% 0.55% 0.49%
Net investment income.............. 5.39%(c) 5.62% 5.27% 5.98% 6.64% 6.69%
Total return........................ 4.41% 6.18% 5.24% 11.28% 8.95% 8.29%
Portfolio turnover rate............. 36.38% 63.85% 141.80% 240.36% 104.29% 54.62%
Net assets at the end of year (000's
omitted)........................... $17,537 $16,018 $16,518 $16,580 $11,207 $9,998
</TABLE>
(a) During the period, various fees and expenses were waived and reimbursed,
respectively. Had such waivers and reimbursements not occurred, the ratio of
expenses to average net assets would have been:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
1.40%(c) 1.45% 1.50% 1.56% 1.66% 1.86%
</TABLE>
(b) See Note 1 for applicable date of inception.
(c) Annualized.
See notes to financial statements. 24 FORUM FUNDS, INC.
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SELECTED PER SHARE DATA AND MAINE
RATIOS FOR A SHARE OUTSTANDING MUNICIPAL
THROUGHOUT THE PERIOD. BOND
FUND
----------------------------------------------------------
SIX MONTHS YEAR ENDED
ENDED MARCH 31,
SEPTEMBER 30, ----------------------------------------
1995 1995 1994 1993 1992(b)
------------- ------ ------ ------ -------
<S> <C> <C> <C> <C> <C>
Beginning net asset
value per share.... $ 10.47 $10.37 $10.55 $ 9.98 $10.00
------ ------ ------ ------ ------
Net investment
income............. 0.25 0.52 0.52 0.58 0.19
Net realized and
unrealized gain
(loss) on
securities......... 0.27 0.11 (0.16) 0.57 (0.02)
Dividends from net
investment
income............. (0.25) (0.52) (0.52) (0.58) (0.19)
Distributions from
net realized
gains.............. -- (0.01) (0.02) -- --
------ ------ ------ ------ ------
Ending net asset
value per share.... $10.74 $10.47 $10.37 $10.55 $ 9.98
------ ------ ------ ------ ------
------ ------ ------ ------ ------
Ratios to average
net assets:
Expenses(a)........ 0.60%(c) 0.50% 0.50% 0.40% 0.46%(c)
Net investment
income........... 4.75%(c) 5.08% 4.81% 5.25% 5.65%(c)
Total return........ 5.05% 6.31% 3.42% 11.80% 5.27%(c)
Portfolio turnover
rate............... 30.09% 31.55% 13.47% 7.82% 15.24%
Net assets at the
end of year (000's
omitted)........... $25,781 $25,525 $26,310 $16,518 $1,968
</TABLE>
(a) During the period, various fees and expenses were waived and reimbursed,
respectively. Had such waivers and reimbursements not occurred, the ratio of
expenses to average net assets would have been:
<TABLE>
<S> <C> <C> <C> <C> <C>
1.38%(c) 1.40% 1.44% 1.98% 6.83%(c)
</TABLE>
(b) See Note 1 for applicable date of inception.
(c) Annualized.
<TABLE>
<CAPTION>
SELECTED PER SHARE DATA AND NEW
RATIOS FOR A SHARE OUTSTANDING HAMPSHIRE
THROUGHOUT THE PERIOD. BOND
FUND
-------------------------------------------------
SIX MONTHS YEAR ENDED
ENDED MARCH 31,
SEPTEMBER 30, -----------------------------
1995 1995 1994 1993(b)
--------------- ------ ------ -------
<S> <C> <C> <C> <C>
Beginning net asset
value per share.... $10.08 $ 9.96 $10.01 $10.00
------ ------ ------ ------
Net investment
income............. 0.24 0.49 0.51 0.12
Net realized and
unrealized gain
(loss) on
securities......... 0.28 0.12 (0.03) 0.01
Dividends from net
investment
income............. (0.24) (0.49) (0.51) (0.12)
Distributions from
net realized
gains.............. -- -- (0.02) --
------ ------ ------ ------
Ending net asset
value per share.... $10.36 $10.08 $ 9.96 $10.01
------ ------ ------ ------
------ ------ ------ ------
Ratios to average
net assets:
Expenses(a)........ 0.60%(c) 0.46% 0.34% 0.50%(c)
Net investment
income........... 4.73%(c) 4.95% 4.68% 4.96%(c)
Total return........ 5.24% 6.32% 4.75% 5.55%(c)
Portfolio turnover
rate............... 15.36% 37.59% 9.60% --
Net assets at the
end of year (000's
omitted)........... $5,742 $5,276 $3,555 $442
</TABLE>
(a) During the period, various fees and expenses were waived and reimbursed,
respectively. Had such waivers and reimbursements not occurred, the ratio of
expenses to average net assets would have been:
<TABLE>
<S> <C> <C> <C> <C>
2.25%(c) 2.19% 4.33% 30.85%(c)
</TABLE>
(b) See Note 1 for applicable date of inception.
(c) Annualized.
See notes to financial statements. 25 FORUM FUNDS, INC.
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DAILY
SELECTED PER SHARE DATA AND ASSETS PAYSON
RATIOS FOR A SHARE OUTSTANDING TREASURY BALANCED
THROUGHOUT THE PERIODS. FUND FUND
--------------------------------------------- ----------------------------------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED MARCH 31, ENDED MARCH 31,
SEPTEMBER 30, --------------------------- SEPTEMBER 30, ----------------------------------------
1995 1995 1994 1993(b) 1995 1995 1994 1993 1992(b)
------------- ----- ----- ------- ------------- ------ ------ ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Beginning net asset
value per share.... $1.00 $1.00 $1.00 $1.00 $ 11.90 $11.71 $11.40 $10.21 $10.00
----- ----- ----- ------- ------ ------ ------ ------ ------
Net investment
income............. 0.03 0.04 0.03 0.02 0.22 0.44 0.34 0.31 0.10
Net realized and
unrealized gain
(loss) on
securities......... -- -- -- -- 1.20 0.24 0.46 1.20 0.21
Dividends from net
investment
income............. (0.03) (0.04) (0.03) (0.02) (0.22) (0.44) (0.35) (0.31) (0.10)
Distributions from
net realized
gains.............. -- -- -- -- -- (0.05) (0.14) (0.01) --
----- ----- ----- ------- ------ ------ ------ ------ ------
Ending net asset
value per share.... $1.00 $1.00 $1.00 $1.00 $ 13.10 $11.90 $11.71 $11.40 $10.21
----- ----- ----- ------- ------ ------ ------ ------ ------
----- ----- ----- ------- ------ ------ ------ ------ ------
Ratios to average
net assets:
Expenses(a)........ 0.50%(c) 0.37% 0.33% 0.22%(c) 1.15%(c) 1.15% 1.15% 1.15% 1.13%(c)
Net investment
income........... 5.21%(c) 4.45% 2.82% 2.92%(c) 3.48%(c) 3.91% 4.37% 3.27% 3.46%(c)
Total return........ 2.66% 4.45% 2.83% 3.13%(c) 11.99% 6.00% 6.99% 15.12% 9.15%(c)
Portfolio turnover
rate............... N/A N/A N/A N/A 20.85% 50.06% 80.13% 30.77% 1.53%
Net assets at the
end of year (000's
omitted)........... $38,001 $36,329 $26,505 $4,687 $15,919 $13,872 $11,355 $5,396 $2,667
</TABLE>
(a) During the period, various fees and expenses were waived and reimbursed,
respectively. Had such waivers and reimbursements not occurred, the ratio of
expenses to average net assets would have been:
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1.01%(c) 1.10% 1.17% 2.43%(c) 1.60%(c) 1.72% 1.95% 2.60% 4.88%(c)
</TABLE>
(b) See Note 1 for applicable date of inception.
(c) Annualized.
See notes to financial statements. 26 FORUM FUNDS, INC.
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SELECTED PER SHARE DATA AND PAYSON
RATIOS FOR A SHARE OUTSTANDING VALUE
THROUGHOUT THE PERIODS. FUND
--------------------------------------------
SIX MONTHS YEAR ENDED
ENDED MARCH 31,
SEPTEMBER 30, ---------------------------
1995 1995 1994 1993(b)
------------- ------ ------ -------
<S> <C> <C> <C> <C>
Beginning net asset
value per share.... $12.71 $12.11 $11.01 $10.00
------ ------ ------ ------
Net investment
income............. 0.11 0.18 0.13 0.08
Net realized and
unrealized gain
(loss) on
securities......... 1.50 0.60 1.12 1.02
Dividends from net
investment
income............. (0.11) (0.18) (0.15) (0.09)
Distributions from
net realized
gains.............. -- -- -- --
------ ------ ------ ------
Ending net asset
value per share.... $14.21 $12.71 $12.11 $11.01
------ ------ ------ ------
------ ------ ------ ------
Ratios to average
net assets:
Expenses(a)........ 1.45%(c) 1.46% 1.45% 1.44%(c)
Net investment
income........... 15.23%(c) 1.59% 1.38% 1.63%(c)
Total return........ 12.70% 6.52% 11.38% 17.05%(c)
Portfolio turnover
rate............... 16.92% 27.20% 32.15% 23.95%
Net assets at the
end of year (000's
omitted)........... $8,741 $7,960 $5,060 $2,145
</TABLE>
(a) During the period, various fees and expenses were waived and reimbursed,
respectively. Had such waivers and reimbursements not occurred, the ratio of
expenses to average net assets would have been:
<TABLE>
<S> <C> <C> <C> <C>
2.08%(c) 2.25% 3.04% 5.53%(c)
</TABLE>
(b) See Note 1 for applicable date of inception.
(c) Annualized.
See notes to financial statements. 27 FORUM FUNDS, INC.
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1995
- --------------------------------------------------------------------------------
NOTE 1. ORGANIZATION
Forum Funds, Inc. (the "Company") is an open-end management investment company.
The Company currently has seven active investment portfolios (each a "Fund" and
collectively the "Funds"). Commencement of operations for each Fund was as
follows:
<TABLE>
<S> <C>
Investors Bond Fund October 2, 1989
TaxSaver Bond Fund October 2, 1989
Maine Municipal Bond Fund December 5, 1991
New Hampshire Bond Fund December 31, 1992
Daily Assets Treasury Fund July 1, 1992
Payson Balanced Fund November 25, 1991
Payson Value Fund July 31, 1992
</TABLE>
Payson Balanced Fund, Payson Value Fund and Daily Assets Treasury Fund are
diversified portfolios. All other Funds are non-diversified. The Company's
financial statements are prepared in accordance with generally accepted
accounting principles.
The Company has authorized 20 billion shares of $0.001 par value stock. Shares
allocated to the Funds are: Investors Bond Fund and TaxSaver Bond Fund, 2
billion shares each, Maine Municipal Bond Fund, New Hampshire Bond Fund, Payson
Balanced Fund and Payson Value Fund, 500 million shares each and Daily Assets
Treasury Fund, 1 billion shares.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SECURITY VALUATION - All securities held by the Daily Assets Treasury Fund are
valued utilizing the amortized cost method, which approximates market value, in
accordance with Rule 2a-7 under the Investment Company Act of 1940 (the "1940
Act"). Securities, other than short-term, held by each of the other Funds (the
"Bond and Equity Funds") for which market quotations are readily available are
valued using the last reported sales price provided by independent pricing
services. If no sale is reported, the mean of the last bid and ask price is
used. If no mean price is available, the last bid price is used. In the absence
of readily available market quotations, securities are valued at fair value
determined by the Board of Directors. Short-term securities held by the Bond and
Equity Funds are valued at amortized cost.
REPURCHASE AGREEMENTS - Except for New Hampshire Bond Fund and Daily Assets
Treasury Fund, each Fund may purchase portfolio securities from financial
institutions deemed to be creditworthy by the investment adviser subject to the
seller's agreement to repurchase and the Fund's agreement to resell such
securities at par. Securities subject to repurchase agreements are held with the
Fund's custodian and must have, at all times, an aggregate market value greater
than or equal to the repurchase price plus accrued interest. If the value of the
underlying security falls below the value of the repurchase price plus accrued
interest, the Funds will require the seller to deposit additional collateral by
the next business day. In the event that the seller under the agreement defaults
on its repurchase obligation or fails to deposit sufficient collateral, the
Funds have the contractual right, subject to the requirements of applicable
bankruptcy and insolvency laws, to sell the underlying securities at market
value and may claim any resulting loss from the seller.
INTEREST AND DIVIDEND INCOME AND DISTRIBUTIONS TO SHAREHOLDERS - Interest income
is accrued as earned. Dividend income is recorded on the ex-dividend date.
Distributions of net investment income to shareholders are declared daily and
paid monthly by all Funds except Payson Balanced Fund and Payson Value Fund for
which dividends are declared and paid quarterly. Net capital gains, unless
offset by any available capital loss carryforwards, are distributed to
shareholders at least annually.
FEDERAL INCOME TAX - Each Fund has qualified (and intends to continue to
qualify) as a regulated investment company. Each Fund distributes all of its
income and, therefore, no Federal income tax provision is required.
28 FORUM FUNDS, INC.
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1995
- --------------------------------------------------------------------------------
OTHER - Investment security transactions are recorded on trade date. Realized
gains and losses on investments sold are recorded on the basis of identified
cost.
NOTE 3. INVESTMENT ADVISORY AND RELATED SERVICES
The investment adviser for Investors Bond Fund, TaxSaver Bond Fund, Maine
Municipal Bond Fund, New Hampshire Bond Fund and Daily Assets Treasury Fund is
Forum Advisors, Inc. ("Forum"). Forum receives an advisory fee from each of
these funds at an annual rate of 0.40%, 0.40%, 0.40%, 0.40% and 0.20%,
respectively, of the average daily net assets of each Fund. The investment
adviser for Payson Balanced Fund and Payson Value Fund is H.M. Payson & Co.
("Payson"). Payson receives an advisory fee of 0.60% and 0.80% of the average
daily net assets of Payson Balanced Fund and Payson Value Fund, respectively.
Forum Financial Corp. serves as the Company's transfer agent and dividend
disbursing agent and is compensated for those services by each Fund at an annual
rate of up to 0.25% of the average daily net assets of each Fund. Forum
Financial Corp. also serves as the Company's fund accountant and is compensated
for those services at an amount of $36,000 per year for each Fund, subject to
adjustments for the number and type of portfolio transactions.
The manager of the Company is Forum Financial Services, Inc. (the "Manager"), a
registered broker-dealer and a member of the National Association of Securities
Dealers, Inc. The Manager receives a management fee for its services to
Investors Bond Fund, TaxSaver Bond Fund, Maine Municipal Bond Fund, New
Hampshire Bond Fund and Daily Assets Treasury Fund at an annual rate of 0.30% of
the average daily net assets of each Fund. The Manager receives a management fee
for its services to Payson Balanced Fund and Payson Value Fund at an annual rate
of 0.20% of the average daily net assets of each Fund.
The Manager also received sales commissions during the period ended September
30, 1995 amounting to $13,757 after deducting $139,857 allowed to authorized
dealers and agents. The Manager, Forum and Forum Financial Corp. are affiliated
companies. In addition, certain legal expenses were charged to the Company by
the Manager. The amounts of legal expenses for Investors Bond Fund, TaxSaver
Bond Fund, Maine Municipal Bond Fund, New Hampshire Bond Fund and Daily Assets
Treasury Fund were $1,281, $818, $1,263, $266, and $1,777, respectively.
For the period ended September 30, 1995, expenses reimbursed by the Manager in
the TaxSaver Bond Fund, Maine Municipal Bond Fund, New Hampshire Bond Fund,
Payson Balanced Fund and Payson Value Fund were $22,804, $39,950, $35,644,
$1,392, and $8,080, respectively.
For the period, September 30, 1995, fees waived by the transfer agent and the
Manager were as follows:
<TABLE>
<CAPTION>
TRANSFER
AGENT MANAGER
-------- -------
<S> <C> <C>
Investors Bond Fund...................................................................... $ 31,162 $39,559
TaxSaver Bond Fund....................................................................... 19,537 25,388
Maine Municipal Bond Fund................................................................ 23,524 38,902
New Hampshire Bond Fund.................................................................. 1,925 8,261
Daily Assets Treasury Fund............................................................... 45,150 48,572
Payson Balanced Fund..................................................................... 17,259 14,971
Payson Value Fund........................................................................ 9,434 8,177
</TABLE>
29 FORUM FUNDS, INC.
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1995
- --------------------------------------------------------------------------------
NOTE 4. PURCHASES AND SALES OF SECURITIES
Cost of purchases and proceeds from sales of securities (excluding short-term
investments) during the period ended September 30, 1995 were as follows:
<TABLE>
<CAPTION>
COST OF PROCEEDS FROM
PURCHASES SALES
---------- -------------
<S> <C> <C>
Investors Bond Fund............................................................. $6,569,509 $ 5,753,493
TaxSaver Bond Fund.............................................................. 6,910,320 5,735,614
Maine Municipal Bond Fund....................................................... 7,320,134 7,515,809
New Hampshire Bond Fund......................................................... 1,061,157 827,221
Payson Balanced Fund............................................................ 4,211,552 3,051,505
Payson Value Fund............................................................... 1,816,764 1,266,980
</TABLE>
The cost of investments for Federal income tax purposes at September 30, 1995 is
the same as for financial reporting purposes. Unrealized appreciation and
depreciation as of September 30, 1995 were as follows:
<TABLE>
<CAPTION>
UNREALIZED UNREALIZED
APPRECIATION DEPRECIATION
------------ ------------
<S> <C> <C>
Investors Bond Fund.............................................................. $ 628,526 $681,669
TaxSaver Bond Fund............................................................... 655,419 8,168
Maine Municipal Bond Fund........................................................ 698,180 138,020
New Hampshire Bond Fund.......................................................... 113,246 26,338
Payson Balanced Fund............................................................. 1,813,817 107,697
Payson Value Fund................................................................ 1,653,749 72,124
</TABLE>
30 FORUM FUNDS, INC.
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
31
<PAGE>
Table of Contents
<TABLE>
<CAPTION>
Page
<S> <C>
Economic Overview............................ 2
Schedules of Investments:
Investors Bond Fund........................ 4
TaxSaver Bond Fund......................... 5
Maine Municipal Bond Fund.................. 7
New Hampshire Bond Fund.................... 12
Daily Assets Treasury Fund................. 14
Payson Balanced Fund....................... 15
Payson Value Fund.......................... 17
Statements of Assets and Liabilities......... 19
Statements of Operations..................... 20
Statements of Changes in Net Assets.......... 21
Financial Highlights......................... 23
Notes to Financial Statements................ 28
</TABLE>
Manager and Distributor
Forum Financial Services, Inc.
Transfer Agent
Forum Financial Corp.
[Logo]
FORUM FUNDS, INC.
P.O. BOX 446, PORTLAND, ME 04112
TEL (207) 879-0001 FAX (207) 879-6050
- ----------------------------------------------------------------------
FORUM FUNDS, INC.
SEMI-ANNUAL
REPORT
----------------------------------------------------------
September 30, 1995
[Logo]
