<PAGE>
OAK HALL-REGISTERED TRADEMARK- SMALL CAP CONTRARIAN FUND
- ------------------------------------------
Two Portland Square, Portland, Maine 04101
Shareholder Inquiries
[LOGO]
Forum Financial Corp.
P.O. Box 446, Portland, Maine 04112
207-879-0001
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ANNUAL REPORT
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Dear Shareholder:
In our annual report of a year ago we bemoaned the lackluster performance of
small capitalization stocks and the extreme volatility affecting that asset
class, caused largely in our opinion by the slavish devotion to momentum
investing. At the same time we noted how favorable we believed the outlook was
for small cap stocks due to low inflation, low long term interest rates and
continued strong earnings potential.
We at Oak Hall are very happy to report that our optimism was justified, as your
Fund's total return for the 12 months ending 3/31/98 was 49.7% vs. 42.2% for the
Russell 2000.* In the last quarter of the fiscal year the Oak Hall Small Cap
Contrarian Fund was up 23.1% vs. the Russell 2000 at 10.0%, and therefore we
enter the new fiscal year with a positive wind behind our sails.
We continue to believe the environment is very positive for our brand of
value/contrarian investing with long term interest rates continuing at low
levels, inflation still subdued, and P/E multiples in various areas of the small
cap spectrum still well below the larger S&P 500. We have selectively increased
our exposure in energy to 15% of the portfolio, and we continue to like
specialty retailing. We have added to our manufactured housing holdings,
believing that low interest rates, high employment, and strong personal income
growth is the perfect recipe for continued growth in the housing sector.
As we move into the Spring of 1998, we continue to feel optimistic about small
cap value investing. We have very little exposure to Asia; so the fear of
recession and deflation in that part of the world is of a lesser concern. We
continue to see very good companies that because of minor glitches in their
earnings prospects subsequently have their share price crushed, resulting in
very favorable entry points. Given that we are the antithesis of momentum
investing, we almost perversely welcome the volatility caused by this short term
form of investing, because each day's new low list gives us some very
interesting stock ideas.
We believe Oak Hall is very well positioned for the future in terms of valuation
and upside potential, and we continue to be most optimistic.
Edward M. Cimilluca, Portfolio Manager
John W. Morosani, Portfolio Manager
Oak Hall Capital Advisors, L.P.
* INVESTMENT RETURN AND PRINCIPAL VALUE REPRESENT PAST PERFORMANCE AND WILL
VARY. SHARES MAY BE WORTH MORE OR LESS AT REDEMPTION THAN AT ORIGINAL
PURCHASE. SMALL CAPITALIZATION STOCKS ARE REPRESENTED BY THE RUSSELL 2000
INDEX-TM-, WHICH IS A MARKET WEIGHTED INDEX OF 2,000 COMPANIES WITH MARKET
CAPITALIZATION FROM $162 MILLION TO $1 BILLION. THE INDEX IS UNMANAGED AND
ITS PERFORMANCE REFLECTS THE REINVESTMENT OF DIVIDENDS. INDIVIDUALS CANNOT
INVEST DIRECTLY IN THE INDEX.
<PAGE>
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OAK HALL-REGISTERED TRADEMARK- SMALL CAP CONTRARIAN FUND
ANNUAL REPORT
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The following chart reflects a comparison in the change in value of a
$10,000 investment in the Oak Hall Small Cap Contrarian Fund, including
reinvested dividends and distributions, and the performance of the Russell 2000
Index since inception of the Fund. The Russell 2000 is a capitalization weighted
index of 2,000 small capitalization U.S. companies. The Index is unmanaged and
its performance reflects the reinvestment of dividends. It is important to keep
in mind the Russell 2000 Index excludes the effect of any fees. Investment
return and principal value of an investment in the Fund will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. Past performance cannot predict nor guarantee future results.
OAK HALL SMALL CAP CONTRARIAN FUND VS. RUSSELL 2000 INDEX
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AVERAGE ANNUAL RETURN VALUE ON
<S> <C> <C> <C> <C>
Since
One Year Inception* 3/31/98
Oak Hall Small Cap Contrarian: 49.71% 16.95% $24,385
Russell 2000 42.16% 18.53% $26,606
Oak Hall Small Cap Contrarian Russell 2000
June 1992 $10,000 $10,000
March 1993 $11,979 $12,140
March 1994 $14,735 $13,304
March 1995 $12,865 $13,841
March 1996 $15,816 $17,794
March 1997 $16,288 $18,716
March 1998 $24,834 $26,606
</TABLE>
* INCEPTION DATE FOR OAK HALL SMALL CAP CONTRARIAN FUND IS JULY 13, 1992.
FIGURES FOR THE RUSSELL 2000 INDEX
BASED ON AN INCEPTION DATE OF JUNE 30, 1992.
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FORUM FUNDS-REGISTERED TRADEMARK-
2
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OAK HALL-REGISTERED TRADEMARK- SMALL CAP CONTRARIAN FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 1998
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<TABLE>
<CAPTION>
SECURITY
SHARES DESCRIPTION VALUE
- -------------------------------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCK (92.7%)
APPAREL & ACCESSORY STORES (9.3%)
10,400 Claire's Stores, Inc........................................ $ 238,550
7,300 Footstar, Inc.(a)........................................... 262,800
7,800 Gadzooks, Inc.(a)........................................... 174,527
-----------
675,877
-----------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS &
OPERATIVE BUILDERS (4.7%)
4,900 Cavalier Homes, Inc......................................... 56,044
10,800 Champion Enterprises, Inc.(a)............................... 288,226
-----------
344,270
-----------
BUILDING MATERIALS, HARDWARE &
GARDEN SUPPLY DEALERS (2.5%)
10,500 Eagle Hardware & Garden, Inc.(a)............................ 185,063
-----------
BUSINESS SERVICES (6.9%)
8,300 ADVO, Inc.(a)............................................... 229,288
11,600 Harte-Hanks Communications, Inc............................. 275,500
-----------
504,788
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COMMUNICATIONS (4.0%)
16,100 Vanguard Cellular Systems, Inc.(a).......................... 292,820
-----------
CONSTRUCTION-SPECIAL TRADE CONTRACTORS (2.4%)
8,100 Comfort Systems USA, Inc.(a)................................ 175,165
-----------
EATING & DRINKING PLACES (7.5%)
7,900 Lone Star Steakhouse & Saloon, Inc.(a)...................... 179,232
5,400 Outback Steakhouse, Inc.(a)................................. 211,275
13,000 Rare Hospitality International, Inc.(a)..................... 154,376
-----------
544,883
-----------
FOOD & KINDRED PRODUCTS (0.5%)
2,600 Weider Nutrition International, Inc......................... 40,300
-----------
HEALTH SERVICES (8.1%)
11,700 American Oncology Resources, Inc.(a)........................ 178,425
5,400 IDEXX Laboratories, Inc.(a)................................. 97,200
22,700 Physician Reliance Network, Inc.(a)......................... 312,125
-----------
587,750
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HOME FURNITURE, FURNISHINGS &
EQUIPMENT STORES (3.2%)
25,600 Bombay Co., Inc.(a)......................................... 128,000
7,300 Heilig-Meyers Co............................................ 102,634
-----------
230,634
-----------
INDUSTRIAL & COMMERCIAL MACHINERY (2.0%)
3,200 Pentair, Inc................................................ 143,200
-----------
<CAPTION>
SECURITY
SHARES DESCRIPTION VALUE
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<C> <S> <C>
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS (5.2%)
8,500 Hologic, Inc.(a)............................................ $ 235,875
6,000 Input/Output, Inc.(a)....................................... 140,251
-----------
376,126
-----------
MOTION PICTURES (3.5%)
7,900 Carmike Cinemas, Inc.(a).................................... 253,790
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OIL & GAS EXTRACTION (13.2%)
56,400 Abacan Resource Corp.(a).................................... 79,314
14,400 American Oilfield Divers, Inc.(a)........................... 207,902
17,100 Meridian Resource Corp.(a).................................. 136,800
13,600 Snyder Oil Corp............................................. 277,102
22,800 Southern Pacific Petroleum NL(a)............................ 84,075
4,900 Triton Energy Ltd.(a)....................................... 180,075
-----------
965,268
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REAL ESTATE INVESTMENT (4.0%)
6,400 Capital Automotive REIT(a).................................. 120,801
9,900 Ocwen Asset Investment Corp................................. 168,919
-----------
289,720
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RETAIL SALES (3.9%)
3,100 Petco Animal Supplies, Inc.(a).............................. 60,450
7,800 Zale Corp.(a)............................................... 225,225
-----------
285,675
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SOFTWARE (3.0%)
12,300 Inso Corp.(a)............................................... 218,325
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TEXTILE MILL PRODUCTS (6.2%)
7,850 Mohawk Industries, Inc.(a).................................. 247,275
13,800 Shaw Industries, Inc........................................ 202,690
-----------
449,965
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WHOLESALE TRADE-DURABLE GOODS (2.6%)
7,100 Watsco, Inc................................................. 190,815
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TOTAL COMMON STOCK (COST $5,478,079)............................................ 6,754,434
-----------
SHORT-TERM HOLDINGS (7.3%)
347,660 Boston 1784 Institutional U.S. Treasury Money Market Fund... 347,660
182,912 Dreyfus Government Cash Management Fund..................... 182,912
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TOTAL SHORT-TERM HOLDINGS (COST $530,572)....................................... 530,572
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TOTAL INVESTMENTS (100.0%) (COST $6,008,651).................................... $ 7,285,006
-----------
-----------
</TABLE>
(a) Non-income producing security.
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SEE NOTES TO FINANCIAL STATEMENTS. FORUM FUNDS-REGISTERED TRADEMARK-
3
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OAK HALL-REGISTERED TRADEMARK- SMALL CAP CONTRARIAN FUND
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1998
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<TABLE>
<S> <C>
ASSETS:
Investments (Notes 1 and 2):
Investments at cost....................................................... $ 6,008,651
Net unrealized appreciation (depreciation)................................ 1,276,355
-------------
Total investments at value.............................................. 7,285,006
Interest, dividends and other receivables................................... 3,906
Receivable for securities sold.............................................. 17,452
Receivable from Adviser (Note 3)............................................ 18,540
Prepaid expenses............................................................ 19,043
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Total assets.................................................................... 7,343,947
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LIABILITIES:
Payable for securities purchased............................................ 98,251
Payable to Administrator (Note 3)........................................... 1,468
Accrued fees and other expenses............................................. 36,303
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Total liabilities............................................................... 136,022
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NET ASSETS...................................................................... $ 7,207,925
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COMPONENTS OF NET ASSETS:
Paid in capital............................................................. $ 5,932,162
Unrealized appreciation (depreciation) on investments....................... 1,276,355
Accumulated net realized gain (loss)........................................ (592)
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NET ASSETS...................................................................... $ 7,207,925
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SHARES OF BENEFICIAL INTEREST................................................... 348,816
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NET ASSET VALUE (OFFERING AND REDEMPTION PRICE PER SHARE)....................... $ 20.66
-------------
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</TABLE>
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SEE NOTES TO FINANCIAL STATEMENTS. FORUM FUNDS-REGISTERED TRADEMARK-
4
<PAGE>
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OAK HALL-REGISTERED TRADEMARK- SMALL CAP CONTRARIAN FUND
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 1998
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<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividend income.................................................................. $ 35,349
Interest income.................................................................. 6,738
---------------
Total investment income.............................................................. 42,087
---------------
EXPENSES:
Investment advisory (Note 3)..................................................... 49,135
Administration (Note 3).......................................................... 16,378
Transfer agent (Note 3).......................................................... 18,095
Custody.......................................................................... 9,257
Accounting (Note 3).............................................................. 41,000
Audit............................................................................ 20,150
Directors........................................................................ 1,374
Legal............................................................................ 3,107
Amortization of organization costs (Note 2)...................................... 2,789
Registration..................................................................... 15,890
Reporting........................................................................ 9,086
Miscellaneous.................................................................... 7,864
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Total expenses....................................................................... 194,125
Expenses reimbursed and fees waived (Note 3)..................................... (67,675)
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Net expenses......................................................................... 126,450
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NET INVESTMENT INCOME (LOSS)......................................................... (84,363)
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NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments sold..................................... 1,344,532
Net change in unrealized appreciation (depreciation) on investments.............. 1,304,798
---------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS............................... 2,649,330
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NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $ 2,564,967
---------------
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</TABLE>
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SEE NOTES TO FINANCIAL STATEMENTS. FORUM FUNDS-REGISTERED TRADEMARK-
5
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OAK HALL-REGISTERED TRADEMARK- SMALL CAP CONTRARIAN FUND
STATEMENTS OF CHANGES IN NET ASSETS
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<TABLE>
<CAPTION>
NINE MONTHS
YEAR ENDED ENDED YEAR ENDED
MARCH 31, 1998 MARCH 31, 1997 JUNE 30, 1996
-------------- -------------- --------------
<C> <S> <C> <C> <C>
NET ASSETS, Beginning of Period................... $ 7,310,193 $ 12,257,172 $ 16,399,153
-------------- -------------- --------------
OPERATIONS:
Net investment income (loss).................. (84,363) (81,451) (167,927)
Net realized gain (loss) on investments 1,344,532 1,549,981 1,994,837
sold........................................
Net change in unrealized appreciation
(depreciation) on investments............... 1,304,798 (1,235,295) 982,857
-------------- -------------- --------------
Net increase (decrease) in net assets
resulting from operations................. 2,564,967 233,235 2,809,767
-------------- -------------- --------------
CAPITAL SHARE TRANSACTIONS (a):
Sale of shares................................ 2,446,775 77,336 2,632,932
Redemption of shares.......................... (5,114,010) (5,257,550) (9,584,680)
-------------- -------------- --------------
Net increase (decrease) from capital (2,667,235) (5,180,214) (6,951,748)
transactions..............................
-------------- -------------- --------------
Net increase (decrease)..................... (102,268) (4,946,979) (4,141,981)
-------------- -------------- --------------
NET ASSETS - End of Period (b).................... $ 7,207,925 $ 7,310,193 $ 12,257,172
-------------- -------------- --------------
-------------- -------------- --------------
(a) Shares Issued (Redeemed)
Sale of shares............................. 138,550 5,429 204,931
Redemption of shares....................... (319,320) (376,722) (751,248)
-------------- -------------- --------------
Net increase (decrease) in shares........ $ (180,770) (371,293) (546,317)
-------------- -------------- --------------
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</TABLE>
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SEE NOTES TO FINANCIAL STATEMENTS. FORUM FUNDS-REGISTERED TRADEMARK-
6
<PAGE>
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OAK HALL-REGISTERED TRADEMARK- SMALL CAP CONTRARIAN FUND
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1998
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NOTE 1. ORGANIZATION
Forum Funds-Registered Trademark- (the "Trust") is an open-end management
investment company organized as a Delaware business trust. The Trust currently
has twenty-two active investment portfolios. The Trust Instrument of the Trust
authorizes each Fund to issue an unlimited number of shares of beneficial
interest without par value. Included in this report is Oak Hall-Registered
Trademark- Small Cap Contrarian Fund (the "Fund"), a diversified portfolio of
the Trust that commenced operations on July 13, 1992. On February 12, 1998, Oak
Hall-Registered Trademark- Equity Fund was renamed Oak Hall-Registered
Trademark-Small Cap Contrarian Fund.
Effective November 25, 1996, the Fund was reorganized as a series of the Trust.
As a result of this reorganization, the Fund's fiscal year end changed from June
30 to March 31.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
These financial statements are prepared in accordance with generally accepted
accounting principles which require management to make estimates and assumptions
that affect the reported amounts of assets and liabilities, disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of increase and decrease in net assets from operations
during the fiscal period. Actual results could differ from those estimates.
The following represent significant accounting policies of the Fund:
SECURITY VALUATION--Securities held by the Fund for which market quotations
are readily available are valued using the last reported sales price
provided by independent pricing services. If no sales are reported, the mean
of the last bid and asked price is used. In the absence of readily available
market quotations, securities are valued at fair value as determined by the
Board of Trustees. Securities with a maturity of 60 days or less are valued
at amortized cost.
INTEREST AND DIVIDEND INCOME--Interest income is accrued as earned.
Dividends on securities held by the Fund are recorded on the ex-dividend
date.
DISTRIBUTIONS TO SHAREHOLDERS--Distributions from net investment income and
capital gain, if any, are declared and paid at least annually. Distributions
are based on amounts calculated in accordance with applicable income tax
regulations, which may differ from generally accepted accounting principles.
These differences are due primarily to differing treatments of income and
gain on various investment securities held by the Fund, timing differences
and differing characterizations of distributions made by the Fund.
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FORUM FUNDS-REGISTERED TRADEMARK-
7
<PAGE>
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OAK HALL-REGISTERED TRADEMARK- SMALL CAP CONTRARIAN FUND
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1998
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ORGANIZATION COSTS--The costs incurred by the Fund in connection with its
organization and registration of shares have been capitalized and are being
amortized using the straight-line method over a five year period beginning
with the commencement of the Fund's operations.
FEDERAL TAXES--The Fund intends to qualify and continue to qualify each year
as a regulated investment company and distribute substantially all of its
taxable income. In addition, by distributing in each calendar year
substantially all of its net investment income, capital gain and certain
other amounts, if any, the Fund will not be subject to a federal excise tax.
Therefore, no federal income tax provision is required.
EXPENSE ALLOCATION--The Trust accounts separately for the assets and
liabilities and operations of each Fund. Expenses that are directly
attributable to more than one Fund are allocated among the respective Funds.
REALIZED GAIN AND LOSS--Security transactions are accounted for on a trade
date basis and realized gain and loss on investments sold are determined on
the basis of identified cost.
NOTE 3. ADVISORY, SERVICING FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The investment adviser to the Fund is Oak Hall-Registered Trademark- Capital
Advisors, L.P. (the "Adviser"). Pursuant to an Investment Advisory Agreement,
the Adviser receives an advisory fee from the Fund at an annual rate of 0.75% of
the average daily net assets of the Fund. On February 12, 1998, the Adviser has
voluntarily undertaken to waive a portion of its fees and assume certain
expenses of the Fund to the extent that total expenses exceed 1.50%. For the
period ended March 31, 1998, fees waived and expenses reimbursed were $49,135
and $18,540, respectively.
Effective June 19, 1997, the administrator of the Fund is Forum Administrative
Services, LLC ("FAS"). FAS receives an administrative fee for its services at an
annual rate of 0.25% of the average daily net assets of the Fund. In addition,
certain legal expenses of $76 were charged to the Fund by FAS. Forum Financial
Services, Inc.-Registered Trademark- ("FFSI"), a registered broker-dealer and a
member of the National Association of Securities Dealers, Inc., acts as the
distributor of the Fund's shares. Prior to June 19, 1997, FFSI served as the
administrator pursuant to the same terms and compensation as FAS.
Forum Financial Corp.-Registered Trademark- ("FFC"), an affiliate of FAS and
FFSI, serves as the Fund's transfer agent and dividend disbursing agent, and for
those services receives an annual fee of $12,000 plus certain shareholder
account fees. Pursuant to an agreement with the Trust, effective June 19, 1997,
Forum Accounting Services, LLC ("FAcS") acts as the fund accountant. For its
services FAcS receives $36,000 plus a fee based on the type and volume of
portfolio transactions. Prior to June 19, 1997, FFC served as the fund
accountant pursuant to the same terms and compensation as FAcS.
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FORUM FUNDS-REGISTERED TRADEMARK-
8
<PAGE>
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OAK HALL-REGISTERED TRADEMARK- SMALL CAP CONTRARIAN FUND
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1998
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The Fund had previously adopted a Distribution Plan (the "Plan") pursuant to
Rule 12b-1 under the Investment Company Act of 1940 with respect to the Fund.
This Plan was eliminated on December 5, 1997. Under the Plan, FFSI could be
reimbursed by the Fund for distribution expenses incurred by FFSI on behalf of
the Fund. For the fiscal year ended March 31, 1998, FFSI did not receive any
reimbursements from the Fund.
NOTE 4. SECURITY TRANSACTIONS
Purchases and sales of investment securities, other than short-term investments,
totaled $6,323,127 and $9,113,395 respectively, for the period ended March 31,
1998.
For federal income tax purposes, the tax basis of investment securities owned as
of March 31, 1998 was $6,036,315 and the net unrealized appreciation of
investment securities was $1,248,691. The aggregate gross unrealized
appreciation for all securities in which there was an excess of market value
over tax cost was $1,504,294 and the aggregate gross unrealized depreciation for
all securities in which there was an excess of tax cost over market value was
$255,603.
As of March 31, 1998, the Fund had capital loss carryovers available to offset
future capital gains as follows:
<TABLE>
<CAPTION>
CARRYOVER AMOUNT YEAR OF EXPIRATION
- ----------------- -------------------
<S> <C>
$798,565 2004
</TABLE>
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FORUM FUNDS-REGISTERED TRADEMARK-
9
<PAGE>
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OAK HALL-REGISTERED TRADEMARK- SMALL CAP CONTRARIAN FUND
FINANCIAL HIGHLIGHTS
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SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH
PERIOD.
<TABLE>
<CAPTION>
NINE MONTHS
YEAR ENDED ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MARCH 31, MARCH 31, JUNE 30, JUNE 30, JUNE 30,
1998 1997 1996 1995 1994
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.... $ 13.80 $ 13.61 $ 11.33 $ 12.55 $ 14.30
------------ ------------ ------------ ------------ ------------
Investment Operations
Net Investment Income (Loss).......... (0.24) (0.15) (0.32)(b) (0.03)(b) (0.09)
Net Realized and Unrealized Investment
Gain (Loss) on Investments.......... 7.10 0.34 2.60 (0.10) (0.52)
------------ ------------ ------------ ------------ ------------
Total from Investment Operations........ 6.86 0.19 2.28 (0.13) (0.61)
Distributions from
Net Realized Gain on Investments...... -- -- -- (1.09) (1.14)
------------ ------------ ------------ ------------ ------------
Net Asset Value, End of Period.......... $ 20.66 $ 13.80 $ 13.61 $ 11.33 $ 12.55
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
Total Return............................ 49.71% 1.40%(c) 20.12% (1.07)% (5.14)%
Ratio/Supplementary Data:
Net Assets at End of Period (000's
omitted)............................... $ 7,208 $ 7,310 $ 12,257 $ 16,399 $ 35,470
Ratios to Average Net Assets:
Expenses including
reimbursement/waiver................ 1.93% 2.00%(d) 2.00% 2.00% 2.01%
Expenses excluding
reimbursement/waiver................ 2.96% 2.93%(d) 2.44% -- 2.17%
Net investment income (loss) including
reimbursement/ waiver............... (1.29)% (1.13)%(d) (1.14)% (0.23)% (0.96)%
Average Commission Rate (e)............. $ 0.0629 $ 0.0673 $ 0.0601 N/A N/A
Portfolio Turnover Rate................. 100.61% 95.05% 157.01% 115.33% 168.61%
<CAPTION>
PERIOD ENDED
JUNE 30,
1993(a)
------------
<S> <C>
Net Asset Value, Beginning of Period.... $ 10.00
------------
Investment Operations
Net Investment Income (Loss).......... --
Net Realized and Unrealized Investment
Gain (Loss) on Investments.......... 4.31
------------
Total from Investment Operations........ 4.31
Distributions from
Net Realized Gain on Investments...... (0.01)
------------
Net Asset Value, End of Period.......... $ 14.30
------------
------------
Total Return............................ 45.12%(d)
Ratio/Supplementary Data:
Net Assets at End of Period (000's
omitted)............................... $ 12,581
Ratios to Average Net Assets:
Expenses including
reimbursement/waiver................ 1.23%(d)
Expenses excluding
reimbursement/waiver................ 5.91%(d)
Net investment income (loss) including
reimbursement/ waiver............... (0.07)%(d)
Average Commission Rate (e)............. N/A
Portfolio Turnover Rate................. 187.94%
</TABLE>
- ------------------------------
(a) For the period July 13, 1992 (commencement of operations) through June 30,
1993.
(b) Calculated using the weighted average shares outstanding.
(c) Not annualized.
(d) Annualized.
(e) For the fiscal years beginning on or after September 1, 1995, the Fund is
required to disclose average commission per share paid to brokers on the
purchase and sale of equity securities.
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FORUM FUNDS-REGISTERED TRADEMARK-
10
<PAGE>
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OAK HALL-REGISTERED TRADEMARK- SMALL CAP CONTRARIAN FUND
INDEPENDENT AUDITORS' REPORT
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The Board of Trustees and Shareholders,
Forum Funds:
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Oak Hall-Registered Trademark- Small Cap
Contrarian Fund (formally Oak Hall Equity Fund) (one of the Portfolios
constituting Forum Funds) as of March 31, 1998, the related statement of
operations for the year then ended, the statement of changes in net assets for
the year ended March 31, 1998, nine months ended March 31, 1997 and the year
ended June 30, 1996, and the financial highlights for the year ended March 31,
1998, nine months ended March 31, 1997 and each of the years in the four year
period ended June 30, 1996. These financial statements and financial highlights
are the responsibility of the Trust's management. Our responsibility is to
express an opinion on these financial statements and financial highlights based
on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of March
31, 1998 by correspondence with the custodian and brokers; where replies were
not received from brokers, we performed other auditing procedures. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of Oak
Hall-Registered Trademark- Small Cap Contrarian Fund, as of March 31, 1998, the
results of its operations, the changes in its net assets, and its financial
highlights for the respective stated periods, in conformity with generally
accepted accounting principles.
Deloitte & Touche LLP
Boston, Massachusetts
May 1, 1998
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FORUM FUNDS-REGISTERED TRADEMARK-
11
<PAGE>
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INVESTMENT ADVISER
Oak Hall-Registered Trademark- Capital Advisors, L.P.
122 East 42nd Street--24th Floor
New York, New York 10168
http://www.oakhallfund.com
CUSTODIAN
BankBoston, N.A.
P.O. Box 1959
Boston, Massachusetts 02105
TRUSTEES
John Y. Keffer
Costas Azariadis
James C. Cheng
J. Michael Parish
ADMINISTRATOR
Forum Administrative Services, LLC
Two Portland Square
Portland, Maine 04101
THIS REPORT IS AUTHORIZED FOR DISTRIBUTION ONLY TO
SHAREHOLDERS AND TO OTHERS WHO HAVE RECEIVED A
COPY OF THE OAK HALL-REGISTERED TRADEMARK- SMALL CAP CONTRARIAN FUND PROSPECTUS.
OAK HALL-REGISTERED TRADEMARK-
SMALL CAP CONTRARIAN FUND
ANNUAL REPORT
March 31, 1998
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