FORUM FUNDS
INVESTORS BOND FUND
Supplement Dated August 1, 1997
to Prospectus Dated August 1, 1997
Insert the following text after the second full paragraph on page 7:
As of March 31, 1997, 20.66% of the Fund's assets were invested in
Beverly Enterprises, Inc. and Citfed Bancorp, Inc., two issuers of unrated
securities that, at the time of investment, the Adviser believed to be of
quality comparable to the rated securities in which the Fund may invest. These
securities subsequently received a B rating from each of S&P and Moody's. The
securities remain in the Fund's portfolio because the Adviser believes that the
investment is and will continue to be in the best interests of the Fund.
